Global Process Ownership
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Global Process OwnershipAstraZeneca
James Kulda
Shared Services & Outsourcing WeekMarch 9th, 2012
Everyone cares about healthYoung or old. Rich or poor. Around the world. It’s one thingthat we all have in common
AstraZeneca is here to makea difference to people’s health
2
70 years of innovative medicines Touching the lives of many people
Doctors and patients
People who pay for healthcare
Our shareholders
Our employees
The wider community
3
Our focus is on six areas of medicine
Cancer
Cardiovascular disease
Infection
Gastrointestinal disease
Neurological disorders
Respiratory & inflammatory conditions
4
We employ over 61,000 people47% in Europe, 30% in the Americas, 23% in Asia, Africa and Australasia
We invest over $4 billion in R&D each yearand have over 15,500 people in our R&D organisation
In 2011, our worldwide sales totalled $33.6 billion
2011
$33.6B
Top 8%
Alongside our commitment to competitiveness and performance, we continue to be led by our core values to achieve sustainable success. We are positioned in the top 8% in the sector in the Dow Jones World and STOXX (European) Sustainability Indexes.
Process Improvement Road Map
Global Finance Services Pre-Consolidation
GFS Locations – Post Consolidation
Process VisionOptimize our processes: adding value for reinvestment and leading
Pharma by simplifying, harmonizing and innovating
Delivered through:• Standardization and
globalization of processes• Application functionality
targeting “Lights-off”automation
• Shared Service Centers• Common Service Levels• Common reporting• Common controls
• Optimized cash-flow / working capital• Adherence to compliance standards• Performance transparency• Measurable continuous improvement
• Flexible processes• Competitive processing costs• Top quartile service levels
Resulting in:
Process VisionOptimize our processes: adding value for reinvestment and leading
Pharma by simplifying, harmonizing and innovating
Delivered through:• Standardization and
globalization of processes• Application functionality
targeting “Lights-off”automation
• Shared Service Centers• Common Service Levels• Common reporting• Common controls
• Optimised cash-flow / working capital• Adherence to compliance standards• Performance transparency• Measurable continuous improvement
• Flexible processes• Competitive processing costs• Top quartile service levels
Resulting in:
Further reduce the
cost to serve
Process VisionOptimize our processes: adding value for reinvestment and leading
Pharma by simplifying, harmonizing and innovating
Delivered through:• Standardization and
globalization of processes• Application functionality
targeting “Lights-Off”automation
• Shared Service Centers• Common Service Levels• Common reporting• Common controls
• Optimised cash-flow / working capital• Adherence to compliance standards• Performance transparency• Measurable continuous improvement
• Flexible processes• Competitive processing costs• Top quartile service levels
Resulting in:
Top Quartile Service
Process VisionOptimize our processes: adding value for reinvestment and leading
Pharma by simplifying, harmonizing and innovating
Delivered through:• Standardization and
globalization of processes• Application functionality
targeting “Lights-Off”automation
• Shared Service Centers• Common Service Levels• Common reporting• Common controls
• Optimised cash-flow / working capital• Adherence to compliance standards• Performance transparency• Measurable continuous improvement
• Flexible processes• Competitive processing costs• Top quartile service levels
Resulting in:
Improve Cash-to-
Cash
Process VisionOptimize our processes: adding value for reinvestment and leading
Pharma by simplifying, harmonizing and innovating
Delivered through:• Standardization and
globalization of processes• Application functionality
targeting “Lights-Off”automation
• Shared Service Centers• Common Service Levels• Common reporting• Common controls
• Optimised cash-flow / working capital• Adherence to compliance standards• Performance transparency• Measurable continuous improvement
• Flexible processes• Competitive processing costs• Top quartile service levels
Resulting in:
Compliance
GFS Roadmap – What is it?The GFS Roadmap is a 3 year strategic program of initiatives to address current process challenges and deliver “Best in Pharma”processes
Focus is to deliver value in 4 key areas:
Objective Setting
Capture & PrioritizeInitiatives
Analyze & DocumentInitiatives
Socialize & Business Case
Mobilize Delivery
Benefit realization
Close
Stakeholder Management
Continue to drive down cost to
serve
Step-up to the AZ compliance challenge
Release working capital from the cash conversion
cycleSignificantly improve
customer service
15
Target Role of the GPO
Optimize AZ Transactional Finance Processes end-to-end:
- Process Vision → Benchmarking → Roadmaps
- Design Authority for change
- Accountable for process architecture
- Drives continuous improvement
Process Ownership by Organic Growth
• Change is rarely a linear process• Multiple change programs with overlapping and
conflicting priorities
• Mandates are difficult to obtain and enforce in global matrix organizations
• Our strategy is to “Show, not tell - Build it and they will come”
• Optimize processes in parallel with ongoing change projects
• Recruit a team of expert GPOs globally• Give them design authority within existing scope• Offer GPO expertise to major change programs
outside existing GFS• Demand will grow and mandate will expand as GPO
value is recognized across the business
GPO’s should effect change without a mandate
• Deep process and application knowledge and experience
• Strong relationship and Strategic Influencing skills
• Skilled large scale change management across functions and geographies
• Restless in pursuit of improvement
• No ivory tower – “Architects with muddy boots”
• Resilient
Process Practice Community
NAM LATAM
GFS UK/SE
GPOLeader
Process Community
Other SME’s
CEEMEA
Other Stakeholders
APAC
External Netw
orks
For:1. Sharing best practices2. Standardizing processeswithin / across regions
Virtual Communities
Through:1. Benchmarking2. Coaching3. Leveraging local /global / external practices
Continuous Improvement
Why End-to-End Matters: Paid-on-Time
Business users complete any necessary goods receipts, service confirmations or financial approvals via workflow
System converts approved invoice into payment run proposal
P2P Accounts Payable “complete”any postings not made automatically
Supplier prints invoice (note 1) and posts to AZ nominated PO box
A B C D E F
1-2 days 0-3 days 0-5 days1 day Minimum 1 day
3rd party scan & OCR invoice (note 2)
Blue = A-C
Yellow = C-D
Green = D-F
GFS-UK
GFS-SE Shows percentage of all invoices that are not touched by P2P team (STP – straight
thru processing)For these invoices C-D = 0
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