OUR EXPERIENCES IN

BUSINESS PROCESS MANAGEMENT

P B BALAJIChief Financial Officer, Hindustan Unilever Limited

KEY MESSAGES

• Business changes are forcing finance to change its role

• To excel in our role we need to change the way we operate as Team Finance

• Mindset, Process, Structure, People and more

• There are a few obvious and a few not-so-obvious learnings from such transformations

14 Nov '14 Hindustan Unilever Ltd 2

BUSINESS IS CHANGING FAST

The VUCA World Global, the new backyard

Informed consumer

Disruptive Technology

New regulations& compliance

needs

Challenging times are here to stay

An interconnected world

Active conversations

Mobile, Social, Cloud, and…?

Governance is the bedrock

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…& HENCE THE ROLE OF FINANCE IS ALSO CHANGING

Steward

Scorekeeper

Business Partner

Business Catalyst

Conscience Keeper

Focused on governance

Custodian of assets

Value protection

Diligent book-keeping

Accuracy Variance Analysis Management results Commentaries

Value Analysis

Understand value drivers

Decision support

Value Management

Information – Insights Analysis to Dynamic resource allocation

Strategic Influencing

Business Advisor

Value Creation

Now we need to perform ALL 4 roles with excellence

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TO EXCEL, TEAM FINANCE NEEDS TO CHANGE THE WAYS OF OPERATION

Value Driver Mindset

Be the catalyst bringing insightful

analytics to the table

Flexible Organization

Drive agility and dynamic decision making in

business by reducing touch points

Standardized Processes

Drive growth and cost efficiencies by

simplifying and standardizing

Leverage Technology

Embrace technology and drive speed. Radically up

skill teams

Inclusive leadership

Harness synergy; Celebrate and drive

diversity

MINDSET STRUCTURE PROCESS SYSTEMS PEOPLE

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SHARING A FEW OF OUR EXPERIENCES

Customer Schemes

Business Information

Supply chain servicesRecord to Report

& Payroll

Banking

Unilever India

Management Assurance

Order Management

Master Data Management

Customer Billing

Accounts Receivable

Stock accounting

EXTENSIVE OUTSOURCING FOOTPRINT

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APPROACH TO FINANCE TRANSFORMATION

Finance Transformation

Program

Drive rigour in business cases

Standardiseprocess

3- Tier modelRisk Management

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•Decentralised scanning•Paper Invoicing•Multiple Vendor Query

•Customer Delight

From To

•One Aligned Process and system • Global excellence

Diverse Process

Diverse Dataset

Diverse Systems

Dispersed Excellence

Diverse People

From To

CHANGING THE TRANSACTION PROCESSES

•PAYMENT ON TIME > 95%

•PURCHASE ORDER

COMPLIANCE >85%

Delivering

•AUTOMATED REPORTING

• WD3 REPORTING

•ZERO SURPRISES IN AUDITS

Delivering

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1

ZERO BASED CONTROLS : FUTURE PROOFING BUSINESS

One Set of Controls

One Streamlined set of Financial Controls

globally

50% Automated controls

Maximise prevent controls, reducing the

cost of control

Centralized Monitoring &

Reporting

Exceptions Monitoring through Automated

Cockpit

Disciplined Gap Mitigation

Constructive approach towards Control

Health improvement

Standardize Centralize Automate Realign Process Reduce CostImproved Service

Level

Driving Value at lower costs

Audit Costs ↓ 25%; Improved hygiene;

Faster organisation

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2

Faster, better decisions by exploiting information

Delivered by best in class…

Data Access Capabilities

Data MasterData

Information Gateway

Information Services

Standard Reports &

DashboardsOperations

HubAnalytics

Change Management & Governance

A high-performance,

globally consistent data

ecosystem

Easy access to standard reports,

executive dashboards and

information tools

Reliable, valuable, cost effective

information services and advanced

analytics

INFORMATION MANAGEMENT

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3

• The Operations Centre in Bangalore is a key Building block of the I&A Strategy

• Information specialists capable of building, acquiring, and centralising tasks and

workloads and running them efficiently

• Continuously moving up the maturity curve “commodity” services to value added services

Deliver 1500

standard reports to

the business

Provides an

Information Gateway

for easy access

Supports business with

analytics offerings and

external insights

...while driving

Information

Simplification

INFORMATION OPERATIONS CENTREFUEL FOR GROWTH....

INFORMATION OPERATIONS CENTRE

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3

A Sales tool which uses the Store specific data available from the DMS system to assist

distributor salesman to make every call , a sales call to help land 4P Perfect Stores

UNIFY DMS –Stores sales history of assortment ever sold in every outlet

Outlet Specific assortment and

quantity recommendation pushed into HHT

every day

Salesman executes assortment and quantity logic -

Delivering PERFECT STORES in every call

Back- end analytics to work out which SKU should be sold

in which outlet –TODAY !

LEVERAGING REAL TIME ANALYTICS

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3

PEOPLE CHALLENGE

Talent attraction

Skill development

Career progression

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BENEFITS

TRANSFORMATION BENEFITS

Nimble & Agile Structure

Process Excellence – Cost, Transparency, Productivity & Time

Speed to business

Autonomous & Automated Process : Indifferent to Increase in Transaction Volumes

Release of time & energy to effective business partnering

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HOW HAS THIS BENEFITTED US

FTE Count

Transaction Processing

Costs

55

39

3129 28

2009-10 2010-11 2011-12 2012-13 2013-14

Annual Closing timelines

2011 2012 2013 2014

Payment on Time %

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TRANSFORMATION LEARNINGS – OBVIOUS

Consolidation of processing locations – key to extract savings

Standardization of Process - key to efficiency gains

Marrying Organization need to Service Provider Capability important, Cost not the only driver

Retained Finance – Critical to retain tacit Knowledge

Roles & Responsibility documentation crucial

14 Nov '14 Hindustan Unilever Ltd 18

TRANSFORMATION LEARNINGS – NOT SO OBVIOUS

Never outsource a problem

Use careers in BPO to build talent

Getting business cases delivered is critical for quality as much as productivity

Put your best people on transformation projects

Be an idealist while dreaming but implement pragmatically

14 Nov '14 Hindustan Unilever Ltd 19

THANK YOU