Date post: | 19-May-2015 |
Category: |
Business |
Upload: | mferguson876 |
View: | 296 times |
Download: | 0 times |
Accessing the Audio Portion of the Webcast
• To Access the audio portion of the webcast, please click Audio in the upper left tool bar and select “Join Audio Conference”.
• When the Audio Conference window pops-up, enter the phone number that you would like to use for the webcast. (direct dial only).
• The webcast will call you to join you to the event
• If you are still having trouble joining the audio conference, please dial 1-877-668-4493 and enter Access code: 663 309 440
We Are Glad You’re Here! We Will Start The Webcast
In A Few Moments
MCGRAW-HILL FINANCIAL: THE PERFECT STORM: TRANSFORMATION, OUTSOURCING AND AN ERP IMPLEMENTATION
The Hackett Group
October 3, 2013
GBS Executive Advisory Program | 3© 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
All lines have been muted to ensure call
quality
Click Icon for Full Screen View
To ask a questions, please raise your hand or enter your question in the
chat box. Your line will be un-muted when your name is called to
ask your question.
GBS Executive Advisory Program | 4© 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The Hackett’s Group 2013 European Best Practices Conference
Join a select group of senior executives for this exciting event that provides opportunities to:
Reduce costs and improve effectiveness. Learn proven cost-saving strategies and business improvement examples that yield actionable next steps that can have an immediate return on your investment.
Leverage the experience of your peers. Hear real-life case studies with ample opportunities to network with other senior executives and thought leaders representing the most successful companies and recognised brands in the world.
Access The Hackett Group's full breadth of research and expertise, including the latest data, metrics and models aligned with your job function.
Gain excellent value for the level of intensive education. Experience nearly 10 hours of keynote and practitioner sessions and more than 10 hours of networking.
Speakers:
Kelli Skaff, Global Director Process Transformation Office, Boston Scientific
Dorota Maciaszek, Director Mondelez International Enterprise Shared Services,
Mondelez
Michelle Ferguson, Senior Vice President, McGraw Hill Financial
Honorio Padron, Principal & Global Practice Leader, Global Business Services, The Hackett
Group
Vin Kumar, Associate Principal & GBS Global Operations Leader, The Hackett Group
Penny Weller, Global Business Services North American Practice Leader, The Hackett Group
Patrick Connaughton, Senior Director GBS Advisory, The Hackett Group
2013 Global Business Services Advisory Leadership Forum
Achieving World-class GBSGlobalization & Outsourcing
Service Management Executive & BU Buy-in
C-Level KPIsGovernance, Migration
November 19, 2013Westin Diplomat | Hollywood, FL
The Hackett Group's 2014 Annual GBS Performance Study is open fromOctober 8 – December 6, 2013
Global Shared Services/Shared Services: Is your organization keeping pace or getting left behind?
Participants in this study will: How your organization compares with
World-class performance Learn how GBS/shared services can
enhance the enterprise value it delivers Receive a report with key research findings
and an assessment of your GBS/shared services’ performance
Have a one-on-one session with Hackett’s GBS Advisors to review your performance
Participate by using the link on the GBS portal or contacting [email protected]
12th Annual Global Business Services (GBS) Performance Study
| 7© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
GBS Advisory - Save the dates (webcasts & in person events)
Jan ‘13 Feb ‘13 Mar ‘13 Apr ‘13 May ‘13 Jun ‘13
Jul ‘13 Aug ‘13 Sep ‘13 Oct ‘13 Nov ‘13 Dec ‘13
Hackett: GBS Performance Study - IT Highlights – July 9Hackett: GBS Performance Study - Finance Highlights – July 15
United Airlines: Using Lean & Six Sigma to Keep a Business Process in House– August 15
GBS in Poland, Key Benefits & LearningsSeptember 5
Dow Chemical: Service ManagementJanuary 24
Boston Scientific: Human Capital Metrics Drive Data-Based Decisions Across a Global Organization February 14
Pitney Bowes: Hidden Benefits of the Cloud February 21
Hackett: GBS Talent Approach - March 19TRW: Single Instance ERP Not a Reality At The Moment? - March 21
ATOS: Leveraging Social Media Collaboration Tools - April 16Cytec: Implementing GBS by the Book!April 18
North American Best Practices Conference in Review - June 13Corning: Performance Excellence Approach (Six Sigma/DMAIC, Lean, and DESGN) June 20
2013
Unisys: Social Collaboration Tools – November 7Coca-Cola Enterprises : The Value Proposition – November 21
Hackett GBS Performance Study Results PresentationMarch 7
North American GBS Leadership Forum (Hollywood, Florida) - Speakers: Hackett, Boston Scientific, Mondelez Intl, McGraw Hill Financial & Panel Discussions - November 19
EU GBS Leadership Forum (London) June 19
EU Best Practice Conference (Berlin) – October 30-31
CINDE: Costa Rica Trends, Location DetailsApril 23
Hackett: Hackett GBS Payroll Study August 27
Unisys: Creating a COE for Knowledge Management & Reporting September 26
Hackett: European Best Practices Conference Highlights – December 5
Hackett: GBS Performance Study - Procurement Highlights - July 24Hackett: GBS Performance Study – HR Highlights – July 30
McGraw Hill Financial -The Perfect Storm: Transformation, Outsourcing and an ERP Implementation – October 3US Navy Makes Progress On Their Journey – October 10Hackett: Effective Sourcing Strategy Study Results – October 24
Hertz – End-to-End Process DesignDecember 19
North American Best Practices Conference (Miami) – May 20-22
Global Business Services Workshop (Miami) – May 20
Note: Past events are recorded and available on the GBS portal
| 8© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
GBS Advisory - Save the dates (webcasts & in person events)
Jan ‘14 Feb ‘14 Mar ‘14 Apr ‘14 May ‘14 Jun ‘14
Jul ‘14 Aug ‘14 Sep ‘14 Oct ‘14 Nov ‘14 Dec ‘14
Hackett: GBS Performance Study – HR Highlights July 17
Hackett: GBS Performance Study – IT HighlightsAugust 14
Hackett: GBS Performance Study – Finance Highlights September 18
Hackett: Continuous Improvement; Developing a Global Framework for SuccessOctober 16
Cisco: Building Collaborative BPO Relationships; Guiding Principles for Success - January 16
Boston Scientific: Service Infrastructure February 20
Available
Hackett: Global Business Services Performance Study March 13
Hackett: How to Make GBS Stick! – Honorio PadronApril 17
2014
Hackett: GBS Trends – Key Learnings & Global Location Update – November 13
National Grid: Using KPIs/Metrics Dashboard to Motivate and Drive Performance – March 20
North American GBS Leadership Forum (Location) November
EU GBS Leadership Forum (London) June
EU Best Practice Conference (Location) – October
JD Irving: Senior Leadership Required for Effective Change Management – April 10
British American Tobacco: Finance Shared Services, Global SAP roll-out, and Advanced A2R ServicesSeptember 4
Hackett: European Best Practices Conference Highlights – December
Available
December 18
North American Best Practices Conference (Location) – May
Kiewit: KPIs - C-Level, Key Stakeholders, & Operational - May 15
Mondelez International: Technology Rollout & Transitioning WorkJune 12Hackett: Best Practices Conference Highlights – Sean Kracklauer June 19
Hackett: GBS Advisory 2013 Top Inquiries – Vin Kumar - January 23
Hackett: GBS Performance Study – Procurement Highlights August 21
Available - November 20
Member Profile | 9© 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
GBS Member Profile – McGraw Hill FinancialsMcGraw Hill Financial Global Business Services
Industry: MediaRevenue: $4.4 Billion (2012)Employees: 17,000Countries: 200
Vision: To excel as a global shared services organization by delivering high quality, consistent services at the lowest, most flexible cost.
Mission: Global Business Services supports McGraw Hill Financial by:• Providing superior and expanding services to our colleagues• Delivering financial value and innovation• Maximizing the effectiveness of our systems and processes• Partnering with world class service providers
Shared Service Centers:
Outsourced Processes:
GBS organization consists of four captive locations and multiple outsourcing arrangements:Captive: Hightstown, New Jersey (170 fte) services USA Captive: London, England (35 fte) services EMEA (UK, France, Germany, Spain, Italy)Captive: Singapore (20 fte) services APAC (India, Singapore, China, Malaysia) Captive: Mexico City, Mexico (2 fte) services Latin America (Argentina, Mexico)Outsourced: Finance (AP, OTC, R2R) – Genpact - Hyderabad, India; Dalian, China; Bucharest, Romania;
Juarez, MexicoOutsourced: Global Payroll – NorthgateArinso – Manila, PhilippinesOutsourced: HR Services – AON Hewitt - Customer Service Support: Portal, Taleo, Success Factors, Workday
– Charlotte, North Carolina, Gurgaon, IndiaOutsourced: System Development – Tata – Oracle – Kolkata, IndiaOutsourced: Quality Control – Wipro – Oracle – Chennai, Bangalore, India
Services Provided: Finance & Accounting: AP, T&E, HR Financial ReportingHuman Resources: Payroll, Employee Care, Global MobilityInformation Technology: Oracle ERP SystemProcurement: Global Sourcing and ProcurementOther Services: Global Real Estate
Hightstown, NJ, USA
London, UK
SingaporeMexico City, MX
| 10© 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Presenter
Michelle Ferguson
Senior Vice President, Global Business Services
Michelle has developed a shared services strategy as part of the organizations Growth and Value Plan and now leads that organization. It includes Financial, Human Resources, Shared Services and Real Estate. Her responsibilities also include leading a multi-phase Oracle implementation.
She has held senior leadership roles in Real Estate, Human Resources, Corporate Finance and McGraw-Hill Education. Most recently as SVP of International Operations at MHE, Michelle led the Latin American business, managed financial reporting for international operations, and improved service workflows.
Michelle is founder and President of WINS (and the corporations first and largest ERG). She was co-founder of a mentoring program, which has expanded to included world-side employees. She continues to be a role model and advocate for women at McGraw-Hill Financial.
Michelle holds a BBA from the University of Notre Dame and an MBA from Columbia Business School.
McGraw Hill Financial | Global Business Services
Michelle R. FergusonSr. Vice President – Global Business Services
The Perfect Storm: Transformation, Outsourcing and an ERP Implementation
12McGraw Hill Financial | Global Business Services
Today I will Discuss
A New Company with 125 Year Heritage
Global Business Services
Transformation
Outsourcing
ERP Implementation
Challenges / Lessons Learned
5 Rules NOT to Follow
Q & A
13McGraw Hill Financial | Global Business Services
A New Company: McGraw Hill Financial
New name, new vision, new look, and a new ticker — MHFI
14McGraw Hill Financial | Global Business Services
• A new company, with a 125 year old heritage, focused on ‐ ‐providing essential intelligence
• Our vision is to be the foremost provider of ratings, benchmarks, and analytics in the global capital and commodity markets
• Strong balance sheet enables financial flexibility• Will continue to invest in businesses while returning cash to
shareholders• Solid track record of top and bottom line growth‐ ‐• 2013 guidance indicates solid growth:
High single digit, top line growth‐ ‐ Adjusted diluted EPS guidance of $3.15 $3.25‐
McGraw Hill Financial
15McGraw Hill Financial | Global Business Services
A Global Network
17,425 FTEs
16McGraw Hill Financial | Global Business Services
Harold McGraw III Douglas L. Peterson
• Transition – Ensure a seamless and smooth transition• Meet with leaders around the company to better understand:
– Strategy– Corporate governance & planning process– Regulation– Capital allocation
• Key balance of year priorities to prepare for 2014:– Refined corporate vision– Ensure alignment of individual business strategies– Realign leadership as necessary– Set 2014 performance targets and initiatives
McGraw Hill Financial — Leadership Change
17McGraw Hill Financial | Global Business Services
McGraw Hill Financial: Exceptional Growth Continues
($ in millions) 2Q 2013 2Q 2012 Change
Revenue $1,250 $1,072 +17%
Adj. Operating Profit $446 $347 +29%
Adj. Operating Margin 35.7% 32.3% +340 bps
Diluted Adjusted EPS $0.92 $0.70 +31%
18McGraw Hill Financial | Global Business Services
• Senior Vice President, Global Business Services• Finance• Human Resources• ERP System• Global Real Estate
• BBA – University of Notre Dame• Advisory Council for DeBartolo Performing Arts Council• Member of Alumni Board
• MBA – Columbia Business School
About Michelle
19McGraw Hill Financial | Global Business Services
Michelle R. Ferguson
Global Real Estate ERP Shared Services
Payroll
P2P
HR Employee Care
Contract Administration
GBS Organization Chart
20McGraw Hill Financial | Global Business Services
Global Business Services• Three process “towers” with cross functional support
– Global Payroll– Global Employee Care / Special Programs– Global Sourcing and Disbursements– Special project support (e.g., People Fluent, Physical Separation)– Cross tower support (financial planning/estimating, contract administration, service delivery and
governance)
• OBJECTIVE: Deliver predictable, scalable, lower cost HR/Finance service consistently across company. Outsource transactional activities
– Relationships with industry leading providers that have global capabilities – Strong governance – Measurements focused (e.g., service level agreements, process health)– Aligned to support our businesses – Process improvement mindset – Opportunities for direct access, self service
21McGraw Hill Financial | Global Business Services
Performance: Enhance enterprise impact
People: Become a high-performance employer of choice
Cost: Reshape to be fit for growth
Operating Model: Increase speed, agility and global connectivity, while building selective enterprise capability
Growth: Position great businesses for scalable growth
Transformation Requires a Focus on Growth and Required Capabilities
MHFI Transformation Goals & Enterprise Value Creation
Transformation Goals
Achieve higher and sustained global growth
Capture horizontal synergies across businesses
Drive scalability in cost structure
Treat talent and data as strategic corporate assets
22McGraw Hill Financial | Global Business Services
Enabled by Management Process and Cultural Change…
Theme “Evolving” “Sustained High Performance”
Organization Architecture Vertical and layered Flatter and compressed
P&Ls Competing metrics and opaque allocations Transparent, consistent, precise
Governance & Decision-Making Uneven criteria and pace Clear, selective shifts to align on emerging
enterprise decision rights
Capabilities & Talent Individual business-based Selective shared enterprise capabilities & talent
Collaboration & Alignment Shifting to greater flexibility and cross-business leverage
Leadership alignment, with mechanisms established and integration underway
Culture Publishing heritage, avoidance of risk Market orientation with risk management
Change Orientation Hesitant but building momentum Shared common purpose and vision
Geographic Leadership US-focused with shifting focus to global – Limited accountability for regional results
Regional measurement with cross-LoB management and accountability by geographic sub-region (i.e., ex-Americas)
Critical Metrics Revenue and profits Financial and strategic metrics, with clear accountability
Stand Up MHFIGrowth & Value Plan
23McGraw Hill Financial | Global Business Services
Transition Begins
Transition Ends
Provider Selection
Solution Development
RFP Responses & down-selection
Rapid Outsourcing Approach and Timeline
Outsourcing Approach: A swift yet structured process
Provider Selected Contract Awarded
Change and Risk Management
Providers Down Selected
Month 1 Month 2 Month 4 Month 5 Month 8
Provider Selection & Contract Development
Joint activities with Provider
MH specific activities
Specifications Package & MSA to Pre- Selected
Providers
Communication and Change Management
Governance Design & Transition Planning
Base Case
To be Vision
Outsourcing Objectives
RFP/SpecPackage
Site Visits & Inbound Due
Diligence/BAFO
Outbound Due Diligence
Negotiations and Contract Award
24
Outsourcing summary accomplishments
McGraw Hill Financial | Global Business Services
Function Position Scope (MHP)
% Annual Savings
(Compensation ONLY)
Approach Year 1 Highlights (achieved/targeted)
Finance & Accounting
295 41% • “Lift and Shift”• FTE model for staffing;
dedicated to McGraw-Hill• Timeline driven by stand
up of Education and rollout of Oracle
• Split of shared accounting functions with Education
• Super storm Sandy coverage• Provisioned access to ~100 applications
across all service towers• Strong executive level governance• SLA improvements in areas of OTC• Six Sigma projects initiated
HR / Payroll 50 17% • Fix, eliminate and ship• Shared resource model • Timeline driven by rollout
of Workday
• Global HR portal• New customer service tools• Coverage for other markets outside of the US
and UK• Reporting and analytics on employee care
25
Meetings Framework – Governance (FAO example)
McGraw Hill Financial | Global Business Services
Category Name Frequency Tower Timeline
Executive Reviews
Steering Committee Bi-annual All Q2 and Q4
Management Committee Quarterly All Q1 and Q3
Operational Reviews
Service Delivery Committee Monthly(Global)
AP and T&E 2nd Monday
OTC 20th of the month
R2R 4th Tuesday
Contract Administration Weekly All Every Friday
Progress Meeting Weekly(Regional)
R2R US Every Wednesday
R2R EMEA Every Wednesday
R2R & AP – APAC Every Friday
AP (Global) Every Tuesday
OTC Daily
26McGraw Hill Financial | Global Business Services
Outsourcing Partners
Business Focus Area
What they do for us
Locations
Finance AP, OTC, R2R Hyderabad, IndiaDalian, ChinaBucharest, RomaniaJuarez, Mexico
Payroll Global Payroll Manila, Philippines
HR services Customer ServiceSupport: Portal, Taleo, Success Factors, Workday
Charlotte, NCWoodland Hills, TXGurgaon, India
System development Oracle Kolkata, India
Quality control Oracle Chennai, IndiaBangalore, India
27McGraw Hill Financial | Global Business Services
ERP Implementation• Atlas ERP Implementation
– Project One launched June 2010; Go-live July 2012– Replacement of Lawson Financials
with Oracle 12 e-Business Suite– Chart of Accounts
• Atlas Hard Separation– Project launch March 2012; go-live
January 2013– Financial and operational segregation– Separate and distinct bank accounts and
ledgers• Atlas Physical Separation
– Project launch January 2013; go-live February 2014
– Two independent Oracle environments
28McGraw Hill Financial | Global Business Services
Challenges & Lessons Learned• Challenges were many…
- Outsourcing Finance and going live with a new ERP system the same day- Outsourcing Payroll, a new Human Capital Management System for MHE at the
same time- Understanding key controls early in the project lifecycle
• Lessons Learned were many…- Communicate, communicate, communicate- Coordination - Project management
- Know a Project Manager when you see one- Need different skill set in the leadership team- Don’t panic, overreact to anecdotal and isolated issues- One group does contract administration
- Pricing, SOW, MSA, IT Requirements
29McGraw Hill Financial | Global Business Services
When you become your own worst enemy5 RULES NOT TO FOLLOW
1. Rebuilding legacy systems2. Allowing consultants / experts to drive your projects3. Aiming for perfection4. Hobbling the project5. Asking internal resources to provide their time to a project and maintain
their daily responsibilities
Don’t hesitate to break virtually every rule held sacred by conventional wisdom
30McGraw Hill Financial | Global Business Services
Q & A
GBS Executive Advisory Program | 32© 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Office Locations and ContactsMiami - Corporate Headquarters
1001 Brickell Bay Drive30th Floor
Miami, Florida 33131TEL: +1 305 375 8005
AmsterdamCamerastraat 25
1322 BB Almere AmsterdamTEL: + 31 36 535 00 82
Atlanta1000 Abernathy Road NW
Suite 1400Atlanta, GA 30328
TEL: +1 770 225 3600
Chicago525 W. Monroe Street, Suite 1550
Chicago, IL 60661TEL: +1 312 325 2900
FrankfurtTorhaus WesthafenSpeicherstrasse 59
60327 Frankfurt am MainTEL: +49 69 900 217 0
Hyderabad8-2-120/112/88&89
1st Floor, Aparna CrestRoad #2, Banjara Hills
Hyderabad 500034TEL: +91 40 66544000
LondonMartin House, 5 Martin Lane
London EC4R 0DPTEL: +44 20 7398 9100
MelbourneSuite 122B & 122C, Level 1
530 Little Collins StreetMelbourne Vic 3000
TEL: +61 3 99097657
New York110 Wall Street, 17th Floor
New York, NY 10005TEL: +1 646 354 4400
Paris8, rue de Port Mahon
75002 ParisTEL: +33 1 53 43 0400
Philadelphia225 Washington Street
Conshohocken, PA 19428TEL: +1 610 234 5500
San Francisco100 Montgomery Street, Suite 2225
San Francisco, CA 94104TEL: +1 415 249 3500
Sydney35 Lime Street, Suite 403
Sydney, NSW2000, AustraliaTEL: +61 2 9299 8830
Penny WellerNA GBS Advisory Practice Leader
Phone: 269 345 [email protected]
Lindsay MurphyGBS Account Manager
Phone: 904 374 1478 [email protected]