Maturing Shared Services Through Use Of Metrics And Benchmarks Maturing Shared Services Through Use Of Metrics And Benchmarks Lisa Miller VP, Controller PepsiCo Financial Shared Services Guido Sterk Director Shared Services Advisory, PwC Lisa Miller VP, Controller PepsiCo Financial Shared Services
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Maturing Shared Services Through Use Of Metrics And Benchmarks
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Maturing Shared Services Through Use Of Metrics And Benchmarks
Maturing Shared Services Through Use Of Metrics And Benchmarks
Lisa Miller VP, Controller PepsiCo Financial Shared Services
Guido SterkDirector
Shared Services Advisory, PwC
Lisa Miller VP, Controller PepsiCo Financial Shared Services
AgendaAgenda
Shared Services Trends Who is PepsiCo?PepsiCo’s Shared Services LandscapePepsiCo Financial Shared Services Journey
Formation and EvolutionBenchmarking Key MetricsFast Facts and Focus
Global Data BaseliningWhat’s Ahead
Shared Services Trends Who is PepsiCo?PepsiCo’s Shared Services LandscapePepsiCo Financial Shared Services Journey
Formation and EvolutionBenchmarking Key MetricsFast Facts and Focus
Leading global shared service organizations display similar design characteristics
Customer focused operations, dedicated
relationship management capabilty
Individual accountability for process outcomes,
‘buck stops here‘mentality
Consistent customer contact points,
contact centre, logging & routing service
requests
Knowledge of process improvement
methodologies, development of in-
house teams,Benchmarking
A commercial model -featuring activity based costing (or similar) and
usage-based billing
Service levels & process KPIs ongoing
measurement & monitoring
Tactical sourcing decisions often made
by global shared services organisation
to meet customer demand
Fewer management layers, larger
operational teams
Common attributes of
leading shared services
organisations
OptimalSpans
of ControlFinancial
Management
Centralised Sourcing
End-to-End Process
Ownership
Single Point of Contact
Performance Management
Business Partnering
Continuous Improvement
Culture
PepsiCo – Who Are We?PepsiCo – Who Are We?
• Merger of PepsiCo, Pepsi Bottling Group (PBG), and Pepsi Americas (PAS) completed onMarch 1, 2010
• PepsiCo is now the #1 Food and Beverage Company in North America, and the world’s #2 Food and Beverage Company spanning 200 countries
• We have 285,000 employees around the globe, with more than 115,000 people in the United States alone
• Our revenues are nearly $60 Billion – with division operating profit of $8 Billion
• We have more than 200 great brands including 19 exceeding $1B+
• We have a company wide focus on Performance With Purpose – a commitment to deliveringsustainable growth by investing in a healthier future for people and our planet
• Merger of PepsiCo, Pepsi Bottling Group (PBG), and Pepsi Americas (PAS) completed onMarch 1, 2010
• PepsiCo is now the #1 Food and Beverage Company in North America, and the world’s #2 Food and Beverage Company spanning 200 countries
• We have 285,000 employees around the globe, with more than 115,000 people in the United States alone
• Our revenues are nearly $60 Billion – with division operating profit of $8 Billion
• We have more than 200 great brands including 19 exceeding $1B+
• We have a company wide focus on Performance With Purpose – a commitment to deliveringsustainable growth by investing in a healthier future for people and our planet
PepsiCo – Who Are We?PepsiCo – Who Are We?
PepsiCo Shared Services Landscape
Plano, TXShared Services: AP, AR, GA, FR, Payroll, Other
Cork, IrelandShared Services: AP, AR, GA, FR, Other
Key Work DriversKey Work Drivers Focus AreasFocus Areas
Global Data BaseliningGlobal Data Baselining
A key step in our journey in 2010 was engaging PwC to perform a global data baselining assessment
Objectives: Gather financial and headcount information Understand the cost structure for financial processesUltimately further improving productivity, providing ongoing flexibility, and better leveraging PepsiCo’s investments in SAP
Process:Information gathering via 163 unique global data submissions Across 17 unique finance process areas
Outcomes:“As is” baseline of Control function FTE effort and costs acrossAmericas, Europe and AMEA Identification of areas for further investigation and means tofurther leverage shared services at PepsiCo
A key step in our journey in 2010 was engaging PwC to perform a global data baselining assessment
Objectives: Gather financial and headcount information Understand the cost structure for financial processesUltimately further improving productivity, providing ongoing flexibility, and better leveraging PepsiCo’s investments in SAP
Process:Information gathering via 163 unique global data submissions Across 17 unique finance process areas
Outcomes:“As is” baseline of Control function FTE effort and costs acrossAmericas, Europe and AMEA Identification of areas for further investigation and means tofurther leverage shared services at PepsiCo
What’s In Flight and AheadWhat’s In Flight and Ahead
Fully integrate data baselining input and global strategy direction Execute roadmapRefine continuous improvement cultureService delivery optimization with bottler integrationAdditional centralizationStandardization and simplification of sub processes
Fully use benchmarks and metrics for performancemanagement
Formalize centers of excellence
End to end process ownership
Fully integrate data baselining input and global strategy direction Execute roadmapRefine continuous improvement cultureService delivery optimization with bottler integrationAdditional centralizationStandardization and simplification of sub processes
Fully use benchmarks and metrics for performancemanagement