shared services secret 7: don't be defeated by erp and erp complications
DESCRIPTION
This session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com.To find out more about forthcoming conferences check http://www.sharedserviceslink.comTRANSCRIPT
Secret No.7: BeTenacious
It Helps to Have the Skin of a Rhino – don’t Be Defeated by ERP and Re-Engineering Complications
Péter VillányiAvis Group Business Support Centre18th March 2009
Agenda
• Avis - Background
• Avis – Shared Service Centre History
• Financial Systems Transformation
• The Next Generation
2
Avis – BackgroundAvis Europe is a leading car rental
company in EMEA and Asia
Avis Europe• 8 million rentals annually• 14 corporate countries with 1,800 locations• Licensee network across 94 countries with
1,200 locations• Combined annual revenue €2.1bn• Around 18% market share in Europe
(includes Budget 3%)
Budget Europe• Coverage across 63 countries in 800
locations• Combined revenue of €450m
3
• Opened call centres in 2000 (Manchester, Barcelona)
• Opened Business Support Centre, in Budapest, for finance and administrative services in January 2004:
– Scope: Accounts Receivables and Payables, Financial Accounting, Customer Services, Databases, IT
– Markets: UK, Germany, France, Spain, Italy, Netherlands, Austria, Switzerland, Belgium, Portugal
– Headcount: currently 340
– ERP: none – access to country legacy systems and CODA
Avis : Shared Service Centre History
4
The Keys to Implementation Success – classic list
• Top Management Support – 93%
• Recruitment in the SSC – 70%
• Change management mentality during project - 66%
• Early & Effective communication to affected persons – 57%
• Gaining Quick Wins – 40%
Source – The Hackett Group, ‘Fourth Annual European Shared Services Organization Study 2005’
5
Solutions to Reality – Customer Focus
Organizational Buy-In
Scope
Managing customers of the centre
Corporate strategy, with C-level sponsorship, or if in doubt mandate it!
Absolute clarity from start, included in signed off strategy
Clear Customer Relationship Model, include pricing and issue escalation!
6
Solutions to Reality – Operations / Process FocusBusiness systems or
processes suitable to a SSC approach (ERP)
Planning – program linked, communicated & achievable across total business
Transition approach correct
Getting quality at the right mark
Process re-engineering required specifically to address document exchange – ERP nice, but not essential
Comes back to business strategy – this solves most things, but still requires right talent
Many ways to do this across different cost perspectives – in the SSC or in country, or mix. Need to be flexible! PMO & methodology vital
Simple / clever processes essential – success then in KT and People, supported by effective customer relationship model
7
Solutions to Reality – People IssuesSSC & location skills /
experience
Manage attrition
Change / Project Management resource
Recruitment
Reward & Motivation
Essential to have right start up experience for a SSC (not just a finance operation), same for location. Buy-in carefully!
Reflects success in other areas: scope, reward, management and vision
Enabler to establish the SSC, but also the change in business. Buy-in carefully!
Success driven by project methodology – timing, roles, mechanics
Survey + skills based, plus career management
8
Solutions to Reality – Financial Issue
Issue:– Business Case in place / achievable
(Hackett Survey: 15% of SSC survey respondents expect > 40% cost saving, 34% > 20%, 34% expect saving > 11%)
Solution:• Ensuring the business case is do-able – customers, business,
systems, volume driven • Managing hidden costs of implementation• Controlling the business case• Benefit realization program starts very early
9
Final Conclusions on SSC implementationSSC Opportunity assessment
Business case
Organization Buy-in
Planning, CRM, Transition, Key People, Communication
Recruitment, Reward, Quality
Quality Management, Attrition, Benefit Realization
10
New system solutions
• Flexibility vs. standardisation
• One system cannot deliver best practice on all processes
• Process by process approach– Financial and Supplier processes– Customer supporting processes
11
Financial Processes - Reality check
• Achieved efficiencies when first set up
• Finance system was outdated and unsupported
• Needed to move systems to achieve more efficiencies
• Requirement for up to date technology
12
Objectives of the project
Aim to drive further efficiencies through the organisation with new finance system:
• Reduced processing costs & errors• Meets local country requirements• Integration with local business systems• Standardisation• Easy to use• Improved efficiency, less cost
13
Evaluation
Key criteria for new finance system:
• Not ERP
• Single instance
• Capability to support local countries
• Latest technology but proven
14
Evaluation
Chose Financials from CODA
• Latest ‘Neon’ release• Proven international capabilities• e-Procurement• Process control
15
The Roll-out
• Live Oct 2007– Germany, Portugal
• Live Jan 2008– UK, Holland, Belgium, Luxembourg
• March/April 2008– Austria, Switzerland, France
• May 2008– Italy, Spain, European HQ (~40 entities)– Inter-company processes
• Strong functional support for a year
16
Roadmap for the Next Generation initiatives
BSC(current status)
BSC(current status)
BSC Next Generation
Program
BSC Next Generation
ProgramNext Generation
BSCNext Generation
BSC
• Is not just about the BSC• Improve process and
services E2E• Combined effort by BSC
and countries• Provide a basis for
expanding BSC services• Build competence for
continuous service improvement
• Increase Partner Satisfaction both in the countries and in the BSC
• Benefit from labour cost arbitrage
• Transfer additional service and volumes
• Centre of Competence for continuously improving service quality and increase service efficiency
• Efficient , harmonized and effectively managed E2E processes
17
Overview of the Next Generation projects• Improve Avis capability to collect outstanding debt more quickly
and reduce cash flow and interest on paymentsReceivable Project
• Increase efficiency by an automated workflow• Improve Customer Satisfaction by improving quality of data
DatabaseProject
• enhancements to the current CODA versionCODA Phase IIFAC Project
• enhancements to the current CODA versionCODA Phase IIP2P Project
• End to end view of back office processes. Using RACI charts at startegic, tactical and operational levels
Roles & Responsibility
• Define the job requirements of all key process roles, identify training needs and deliver training more effectively and efficiently
Training and Skilled Res.
• Standard framework for process mapping and procedure documentation
Process Management
Process Improvem
ent Projects
Enabling Initiatives
• Using Lean Six Sigma tools to define process quality goals• Set up quality KPIs
Quality System & KPIs
18