High Performance Finance through Business Partnering...Regulatory Matters Tax Authorities Accounting Advice Decision Support Bus. Partnering Finance Strategy Tax Planning Treasury

High Performance Finance through Business Partnering Round Table

Brussels - November 21st, 2013

Copyright © 2013 Accenture. All rights reserved. Accenture Confidential Information. 8

Accenture has 280,000+ employees, some 2,000 of them specialize in Management Consul<ng for the Finance Func<on

Our organiza<on

Comms, Media &

Technology

Financial Services

Health & Public Service

Products Resources

Management Consul>ng

Outsourcing

Technology

1.  Strategy 2.  Opera<ons 3.   Finance & Enterprise Performance 4.  Talent & Organiza<on 5.  Customer Rela<onship Management 6.  Risk Management 7.  Analy<cs 8.  Sustainability Services

Key figures

  More than 2,000 consultants focused on Management Consul<ng in Finance worldwide   A presence in almost all countries   Nearly 400 Finance consultants in Western Europe, including Benelux   More than 2,700 projects conducted in 2012, with more than 750 clients around the world   A network of professionals which extends to « Technology » and « Business Process Outsourcing » communi<es   Broad Finance exper<se from strategy to opera<on, working cross industry, enriched by focused industry

experts   Strong on shore, near shore and off shore capabili<es


Trends & Evolu<ons determining the CFO Agenda

Globaliza<on and digitaliza<on are revolu<onizing how enterprises must operate. As business becomes more complex, processes must become simpler.

Cloud Value in how it is used

Data Speed of ac<on

Analy<cs Design for answers

Collabora<on Embed into the business process

Vola<lity

Compliance

Emerging Markets

Capability

Markets

Geographies Products Services

Func<ons

Industry & Opera<ng Model Complexi<es External Trends & Pressures


CFOs need to lay the founda<on for the digital revolu<on by simplifying processes and enabling analy<cs to drive economic outcomes

Strategy & Value Realiza<on

Enterprise Process Solu<ons

Transforma<on Enablers

Operate

Establish Agile Processes and Opera<ng Model

Deliver Enterprise Performance Through Analy<cs

Creates Value-‐Centered Culture

High Cost, Process Complexity, System Obsolescence and Talent Shortages

Poor Cash Flow and Capital Mgmt, Lack of Financial Insight & Analysis, Need for Growth

Effec<veness Efficiency

Key Issues:

Key Outcomes Scalable and Flexible Opera<ons to Improve Enterprise Service and Op<mize Opera<ng Cost

Business Partnering, Asset Deployment and Integrated Planning & Analy<cs to Enable Growth, and Improve Cash Flow and Capital Returns


Compe

<<ve Advantage

Sophis<ca<on of Intelligence

Op<miza<on

Predic<ve Modeling

Forecas<ng/extrapola<on

Sta<s<cal analysis

Alerts

Query/drill down

Ad hoc reports

Standard Reports

“What’s the best that can happen?”

“What will happen next?”

“What if these trends con<nue?”

“Why is this happening?”

“What ac<ons are needed?”

“What exactly is the problem?”

“How many, how oien, where?”

“What happened?”

Predic<ve Analy<cs

Companies need <mely, in-‐depth ac<onable insights if they are to remain compe<<ve —in effect a “whole business” approach to analy<cs

Analy<cs Defini<on Changing Client Ques<ons

Descrip<ve Analy<cs

Analy<cal Compe<tor

Now What?

So What?

What?


The transforma<on journey to a successful finance func<on starts by defining clear strategy, vision and values for Finance

Finance Strategy & Value Defini>on

Finance Opera>ng Model

Finance Transforma>on Roadmap

•  What are the strategic impera>ves for the organiza<on •  What are the key business and value drivers for the Finance strategy? •  Where is your Finance func<on on the mastery scale and in comparison to your

peers?

•  How does Finance best structure itself to serve the business effec<vely across Organiza>on, Process and Technology

•  What is the role of shared services and global talent sourcing in delivering the Finance strategy

•  Is there a clear finance workforce development and on-‐going management model

•  What are the right order of priori>es and the required investments required to move Finance to the desired posi<on

•  How can the benefits be measured and tracked through the program •  What current change ini>a>ves need to be re-‐priori<zed or stopped to deliver the

strategy •  What is the right governance model for the integrated services across business,

Finance and IT

Copyright © 2013 Accenture All rights reserved.

A journey from “gekng the basics right”… … to value adding business partnering and compe<<ve advantage…

Valu

e Pr

ovid

ed b

y Fi

nanc

e

Emphasis on Business Partnering Capability

Transaction & Control

Agile transactional finance providing quality and service •  Manage day-to-day operations with efficiency •  Highly standardized, centralized and make wide use of technology

automation •  Adapt quickly to changing requirements •  Provide higher end-to-end quality with less business interruption •  Provide better service to the business, employees, suppliers and customers

Value adding

Control, Reporting and Analysis

Advanced and enhanced reporting and analysis •  Provide basic analytical skills, reactive and historical with

dual focus (GAAP’s and business units) •  Provide more advanced analytical skills •  Translate financial goals into operating plans •  Move from historic to forward looking

Value adding

Business Decision Support

Impactful business decision support •  Predict and direct the business •  Participate in business strategy setting •  Proactive, forward looking decision-support •  Move from validation role to business

advisory role

Value adding

Basic

Basic


…building the plamorm for Finance Professionals to Become True Business Partners…

MONDAY WEDNESDAY THURSDAY TUESDAY FRIDAY

MONDAY WEDNESDAY THURSDAY TUESDAY FRIDAY

Comparing delivered value and invested effort of

activities with the required activities to drive business

performance


… and determining the Business Partnering journey by 3 basic steps to drive future performance

Business Need

Understand what drives business performance •  Understand what is needed to

close the performance gap the business is facing

•  Work in the business and speak the business language

•  Translate data into information and ultimately into knowledge

•  Turn these insights into actions pro-actively

•  Operate with a value centric mind-set and spend significantly more time on value added activities than on analyses of the past and transactional activities

•  Be forward looking to anticipate different scenarios at an early stage

1 Capacity 2

Create the capacity to provide value • Identify current activities of Business Partners • Compare delivered value and invested effort of activities with required activities to drive business performance • Eliminate, simplify, automate and re-allocate activities to Business Services • Re-align governance model with end-to-end responsibilities • Drive continuous improvement • Demonstrate reliability of the back office functions with “noiseless” delivery

Capability 3

Foster the right behaviors & build talent and capabilities PEOPLE •  Define roles &

responsibilities •  Develop a business

partnering competency model which describes all the critical competencies and skills

•  Integrate in recruiting process

•  Develop separate career tracks and specific workforce development programs

•  Consistently diagnose and close skill gaps

•  Foster close collaboration with the business

OPERATING MODEL •  Provide the required

organization, set of tools and policies


A combina<on of concerted func<on specific and cross-‐func<onal ini<a<ves is required

Cross-functional Business or Function Specific

Enterprise or BU strategic performance targets Integrated Business Services Operating Model Resource allocation aligned with business priorities and value critical activities Individual performance management linked to Business performance Comprehensive business partnering learning curriculum and learning platform Common technology platforms, data and policies . Well defined governance and end-to-end process integration

Business performance targets by Function Function in the Business aligned with Business governance and org charts Resource allocation aligned with business priorities and value critical activities Individual performance management linked to Business performance Business specific and individually tailored coaching and learning Dynamic tools and analytics capabilities connected to common platforms

+

+

=

=

+

+


A holis<c approach of the Finance Func<on enables a good trade-‐off between business proximity, finance competencies and improved contribu<on at lower cost structure

Corporate Finance in the Business

Finance Business Services

Local Regional

-  Group HQ -  Regional HQ

-  English

-  Business locations

-  Finance org chart = Business org chart

-  English + local

-  Per country or cluster of countries


-  Nearshore


Global HUB

Focu

s Lo

catio

n La

ngua

ge

-  Offshore

-  English

Procure-to-Pay

Order-to-Cash

Record-to-Report

Master Data Finance Analytics

Regulatory Matters Tax Authorities

Accounting Advice

Decision Support

Bus. Partnering

Finance Strategy

Tax Planning Treasury / Hedging

Policy (e.g. IFRS) Investor Relations

Risk & Compliance

Planning Forecasting

Approvals

Performance Mgt

Risk & Compliance IT Alignment

Transactional Business Performance Corporate / Regulatory

GL, Fixed Assets, Interco, Cash Management & Banking, Reconciliations, Period Close, Tax Acc., Mgt. Reporting, Fin. Reporting, Tax Reporting, Regulatory Reporting


The emergence of Integrated Business Services is enabling a broader range of benefits through increased impact on business outcomes

Americas APAC EMEA

Americas APAC APAC EMEA

Americas APAC APAC EMEA

Enterprise Value

FIN

1. Discrete Shared Services

2. Multi-Function Shared Services (MFSS)

3. Global Business Services (GBS)

4. Integrated Business Services (IBS)

MFSS Lead

Common Service Management

MFSS Lead MFSS Lead

IT

FIN IT Proc.

HR

HR

FIN

HR

IT

FIN

HR

IT

FIN

HR

IT

Global Service Management

Global Delivery Network

Global Process Owners

GBS Lead

Source to Pay

Order to Cash

Hire to Retire

Integrated Delivery Network

Global Service Owners

Service Innovation

IBS Lead

Commercial Services

Supplier Services

Employee Services

Financial Services

Analytic Services

Integrated Service Management

Process Transformation

OpEx Reduction

Capital Efficiency

Risk Mitigation

Revenue Growth

Maturity


Talent will make the difference. Business Partnering therefore requires different behaviors and competencies than tradi<onal

•  Drive Enterprise Performance Management

•  Market focused •  Analytic •  Tolerant of ambiguity •  Collaborative •  Questioning •  Decisive

•  Functional expertise

•  Transaction processing

•  Consolidation •  Reconciliation •  Reporting •  Control •  Compliance

•  Business acumen •  Analysis •  Collaboration •  Impact capability •  External focus •  Risk awareness •  Agility

•  Support Enterprise Performance Management

•  Inward oriented •  Validation •  Reactive

Leadership, Management and Influencing Skills

Wide variety of Finance

Expertise and Skills

Wide variety of Business Acumen and Skills

Execution Skills

This requires separate career tracks and specific workforce development

programs

Beh

avio

rs

Com

pete

ncie

s

Basics Differentiators

Why are we here?

•  What is the story of our peers ?

•  What are the key changes in your department?

•  What will be your key challenges?

•  What are you struggling with right now?

•  What do we learn from past and current experiences ?

High Performance Finance through Business Partnering...Regulatory Matters Tax Authorities Accounting Advice Decision Support Bus. Partnering Finance Strategy Tax Planning Treasury

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