Top Banner
# Financial Focus & Cockpit 1 20110324 Financial Focus Management briefings September/October 2011
26
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: FF management briefings

# 1Financial Focus

Financial Focus & Cockpit

20110324

Management briefings

September/October 2011

Page 2: FF management briefings

# 2Financial Focus

FINANCIAL FOCUS IN A NUTSHELL

20110324

Page 3: FF management briefings

# 3Financial Focus

Financial Focus

Presentation for COWI Executive Assistants

June 2011

20110324

Financial Focus - getting the numbers right

Page 4: FF management briefings

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.

Page 5: FF management briefings

# 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%

Page 6: FF management briefings

#

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

Page 7: FF management briefings

# 7Financial Focus

FINANCIAL FOCUS KEY ELEMENTS

20110324

Page 8: FF management briefings

# 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

Page 9: FF management briefings

# 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)

Page 10: FF management briefings

# 10Financial Focus

Portfolio and project level optimisation

20110324

Portfoliolevel

Projectlevel

Resource overview

Project overview

Project and resource

management

FCR & EBIT

Page 11: FF management briefings

#

Cockpits for six roles

Project manager

Activity manager

Portfolio manager

Resource manager

P&L manager

Employee

1129 aug 2011 Financial Focus

Page 12: FF management briefings

#

A integrated project manager's cockpit

1229 aug 2011 Financial Focus

MANAGE ACTIVITIE

SOPTIMISE FINANCIA

LS

MANAGE RESOURC

ES

Page 13: FF management briefings

20110324

Page 14: FF management briefings

# 14Financial Focus20110324

Page 15: FF management briefings

# 15Financial Focus20110324

Page 16: FF management briefings

# 16Financial Focus20110324

Page 17: FF management briefings

# 17Financial Focus20110324

Page 18: FF management briefings

# 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

Page 19: FF management briefings

# 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

Page 20: FF management briefings

#

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.

Page 21: FF management briefings

# 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.

20110324

P/L centre account

ProjectsResource

s

Income vs. FCR FCR vs. actual

Page 22: FF management briefings

#

Summing up

2229 aug 2011 Financial Focus

Focus

• Cost management

• Risk management

• Resource optimisation

• Collaboration

• Pricing

Improve

• Earnings

• Cash flow

• Billability

Page 23: FF management briefings

# 23Financial Focus

FINANCIAL FOCUS IMPLEMENTATION

20110324

Page 24: FF management briefings

# 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

Page 25: FF management briefings

# 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.

Page 26: FF management briefings

# 26Financial Focus

Closure

More information from

Business change agents

www.cowiportal.dk/ff

Henrik R. Mortensen, [email protected]

Thank you

20110324