Hackett Performance Exchange Overview| 1© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

WORLD-CLASS PERFORMANCE IMPROVEMENT

HACKETT PERFORMANCE EXCHANGECFO SOLUTIONS OVERVIEW

February 2014

Hackett Performance Exchange Overview| 2© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

The Hackett Group Difference

Hackett Value Grid™

Intellectual capital and implementation expertise that accelerates the time to

sustainable benefit realization

Global leader in operations improvement

strategies, implementation know-how, and G&A

agility

We address both efficiency and effectiveness that

enable strategic business objectives

Our insights are fact based, from over 10,000

engagements

Our Best Practices Intelligence Center™ is a

significant differentiator and enabler

– 20,000+ performance metrics updated annually

– 1,500+ best practices across 95 business processes

– 1,000+ best practice-based process maps,

requirements and configuration guides

Hackett is the market leader and innovator in measurement solutions

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1.16%

0.60%

Peer Group World Class

87.5

41.4

Peer Group World Class

51.0

34.0

Median 1st Quartile

World-class advantage – in cost, and cash – is significant

End-to-end Process Potential savings ($M)* Potential savings (%)

Customer-to-Cash $9.7 70%

Account-to-Report $9.3 50%

Purchase-to-Pay $8.7 38%

Total $27.7 50%

The world-class cost advantage – leading transactional processes

* For $10 billion in revenue organization

Finance FTEs

(per billion of revenue)Finance Cost

(% of revenue)

Days Sales

Outstanding

48% 53%

33%

$56M savings 461 fewer FTEs $466M cash flow

Hackett Performance Exchange Overview| 4© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Put teeth behind performance

goals – align incentives

Accountability and visibility

drive results

Start with a firm baseline leads

for better outcomes

What gets measured, gets improved

63% realize completing formal

business cases with cost and

benefits realize better results

3X productivity levels in

organizations which routinely

measure General Ledger

transactions per FTE

100% of top performers cite

global visibility of customer

information and business

volumes as very important to

realizing the strategy

64% of top performers link

incentive compensation with

achievement of key finance

improvement objectives

Global execution requires

global data

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Hackett Performance Exchange – establishes the total Finance opportunity baseline and operational “root cause” metrics

ERP

HackettConnector

Internet

browser

Simple connection to the ERP

consolidates data in a consistent fashion

and eliminates manual data collection

Quickly delivers initial Finance cost and

cash performance assessment

Provides operational metrics,

root cause analysis, and ongoing

benefits realization tracking

across the O2C, P2P and A2R

end to end processes

Limited time commitment and no manual data collection required

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1. CFO Performance

Assessment

2. CFO Performance

Benchmark

3. CFO Performance

Dashboard

No effort to quantify cost and

cash improvement opportunity

Automatically extracts

information from SAP &

Oracle

Algorithm calculates total

Finance improvement

opportunity

Collect FTEs and Costs

leveraging Hackett’s

methodology

Augments baseline and

improvement opportunity

Unlocks productivity and cost

metrics

No effort to monitor monthly

performance

Root cause analysis across

O2C, P2P, A2R

Tracks performance relative to

targets and peer group

Tracks total finance

performance monthly

Hackett Performance ExchangeWorld-Class Performance Improvement Measurement Suite

Hackett Performance Exchange Overview| 7© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

CFO Performance AssessmentAutomatically quantifies finance cost and cash improvement opportunities

Automatically

calculated

baseline cost

based upon ERP

data

Improvement

range relative to

complexity based

peer group

Quantified

working capital

improvement

opportunity

High priority O2C,

P2P, and A2R

performance

metrics impacting

results

Total finance

function

improvement

potential

Hackett Performance Exchange Overview| 8© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

CFO Performance BenchmarkProcess Cost and FTEs compared to Peer Group

Process cost

utilizing Hackett

definitions to

ensure

consistency

Results compared to

Hackett database

Available detailed

baseline reports

Average fully

loaded labor cost

Ratio of staff to

managers

Refined cost

opportunity

Productivity

metrics

Transaction

cost metrics

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CFO Performance DashboardIncludes hundreds of performance metrics across O2C, P2P, & A2R

Quantified

process cost

improvement

opportunity

Quantified

cash

optimization

potential

Compare results to

Hackett database

View Working

Capital Scorecard

Drill into all

metrics for intra

company

comparisons,

trending details,

and definitions

Listing of

metrics by

process

Listing of

metrics by

category

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How are our clients utilizing the Hackett Performance Exchange?

Selected Clients Usage Examples

Leveraged empirical insights as

input for business case

Captured productivity baseline

prior to transitioning services into

GBS

Provided process view using

consistent measurements for

global summary and by business

unit

Validated working capital

improvement opportunities

Utilized performance trending to

track realization of key targets

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CFO Performance Assessment implementation checklist

Next Steps Client Lead Time

Required

Review setup steps and any IT related

questions (e.g., security, performance, effort)

IT Business

Partner

1 hour

meeting

Review and sign user agreement Executive Sponsor

Confirm planning assumptions (ERP,

currency, fiscal calendar year, monthly

accounting cycle)

Client Project

Manager

30 minute

call

Complete installation of the

HackettConnector™ and test production

environments

Initiate data extraction from Production

environment

Client Project

Manager

4 hours

Review data and prepare analysis Hackett performs 3 days

Review CFO Performance Assessment results Executive Sponsor 1 ½ hours

You are less than 2 weeks away from

understanding your Finance cost and cash opportunity