Transcript
# 1Financial Focus
Financial Focus & Cockpit
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Management briefings
September/October 2011
# 2Financial Focus
FINANCIAL FOCUS IN A NUTSHELL
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# 3Financial Focus
Financial Focus
Presentation for COWI Executive Assistants
June 2011
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Financial Focus - getting the numbers right
Increase profitability and enable seamless co-operation
between COWI Group companies
by
establishing a shared financial solution, Cockpit in the COWI
group for project, business, and resource management.
# 508/04/2023 Financial Focus
A common finance language for projects
A common language between project and line management
A common language between company and business units
A common model for project economy and management
Turnover 100% - MH-costs - other costsProject Contribution 35%- rent- sales- training- ect.EBIT 5%
Turnover 100% - Labour costs (FCR) - other costsProject EBIT 7% - not allocated group costsEBIT 5%
#
Financial Focus
Development and implementation roadmap
6
STRATEGY
ProfitabilityTransparency
Shared solution
Jan 2012
Jan 2013
Jan 2014
DK & Qatarsystem change
SEsystem change
NOsystem change
Gulfsystem change
Mgmt.prep.
Mgmt.prep.
Mgmt.prep.
18 april 2011
# 7Financial Focus
FINANCIAL FOCUS KEY ELEMENTS
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# 8
Project profit
8 april 2011 Financial Focus
*EBIT: Earnings before interest
and tax
Labour costs:
Sum of Full Cost Rates
Other costs
Project profit (EBIT*)
Project contingency
Contract sum paid by customer
# 9
Full cost rate
Full Cost Rate (FCR)
Salary
Costs directly related to employee
Company costs
Regional/country costs
Corporate costs
BU costs
Dept. costs & internal hours
8 april 2011 Financial Focus
OverheadRate (OHR)
Basic SalaryRate (BSR)
# 10Financial Focus
Portfolio and project level optimisation
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Portfoliolevel
Projectlevel
Resource overview
Project overview
Project and resource
management
FCR & EBIT
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Cockpits for six roles
Project manager
Activity manager
Portfolio manager
Resource manager
P&L manager
Employee
1129 aug 2011 Financial Focus
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A integrated project manager's cockpit
1229 aug 2011 Financial Focus
MANAGE ACTIVITIE
SOPTIMISE FINANCIA
LS
MANAGE RESOURC
ES
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# 14Financial Focus20110324
# 15Financial Focus20110324
# 16Financial Focus20110324
# 17Financial Focus20110324
# 18FF - RM Workshop Group
Resource Management
23/2/2011
DialogueResourceManager
ATR – Planning
Data
Project Manager
Input
Output
IT S
olu
tion
Monitor planned allocations
Bu
sin
ess P
rocess
Digital ATR
RM ReportsPeople Planner
Employee
BrowseEmployees
# 19
Collaboration and profit/risk sharing
8 april 2011 Financial Focus
Profit
0
Profit proportional
to participation as labour cost
Profit/loss forown delivery
Fixed limitprofit share
Jointprofit share
Subprojectprofit share
FCR + fee
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Risk and contingencies
2029 aug 2011 Financial Focus
Project EBIT
Contingencies
Other cost
Labour cost based on FCR
Better control of risk and contingencies.
Risk Log mandatory from 2012 in Denmark.
Continuous focus on contingencies.
Transparency.
# 21Financial Focus
P/L (profit/loss) accounts
The new P/L account will support two performance dimensions: Resource utilization Project profitability
Income/turn-over is the volume generated by the employee in the department/business unit.
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P/L centre account
ProjectsResource
s
Income vs. FCR FCR vs. actual
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Summing up
2229 aug 2011 Financial Focus
Focus
• Cost management
• Risk management
• Resource optimisation
• Collaboration
• Pricing
Improve
• Earnings
• Cash flow
• Billability
# 23Financial Focus
FINANCIAL FOCUS IMPLEMENTATION
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# 24
Time schedule for key change activities
14 sep 2011
DECEMBERNOVEMBEROCTOBERSEPTEMBER
Management briefings
Training: essentials, project management, Cockpit application, workshops etc.
Conversion I Conversion II
Information from BCA and project including portal communication
Business change preparation and planning
GO LIVE
JANUARY
# 25Data conversion
Conversion and go-live tasks for project managers with supervision from managers and support from Finance.
14 sep 2011
SEPTEMBER
JANUARYDECEMBE
RNOVEMBE
ROCTOBER
Close all finalised projects. Ye
arend
Last time registrations and posting and all possible invoices before January 5.
Enter additional data for each project that stretches into 2012.
Week 44-45
Training & information before conversion process.
Update all projects with ETC, resource planning, and WBS structure.
# 26Financial Focus
Closure
More information from
Business change agents
www.cowiportal.dk/ff
Henrik R. Mortensen, hrmn@cowi.com
Thank you
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