www.trintech.comwww.trintech.com
TransformingTransformingthethe LAST MILELAST MILE ofof
FINANCEFINANCE
Theresa Clark – VP, Finance TransformationFebruary 28, 2012Theresa Clark – VP, Finance TransformationFebruary 28, 2012
Analyze: Closing the Performance GAP within “The Last Mile”Part 1 of a 4 Part Series
Analyze: Closing the Performance GAP within “The Last Mile”Part 1 of a 4 Part Series
Today’s PresenterToday’s Presenter
Theresa Clark – VP Finance Transformation
Theresa Clark is a seasoned finance professional with over 20 years of finance experience guiding customers in transforming their financial processes to improve financial results and reporting. Theresa has been working with major companies specifically to address their current compliance, reconciliation and close issues with improvements to their processes and technologies. As a former partner of Andersen, LLP, and managing Director at BearingPoint, Theresa led projects in finance transformation, financial close improvement and post merger integration for major companies.
Theresa is a CPA and a member of the American Institute of Certified Public Accountants and the Forum for Women Entrepreneurs. She earned a B.B.A. in accounting from Gonzaga University.
Who is Trintech?Who is Trintech?
26 of Fortune 50
100+ of Fortune 500
Over 600 industry leaders benefitting from Last Mile of
Finance solutions
What Does Analyze Address?What Does Analyze Address?
I. The Last Mile – Quick Recap of the Issues
II. The Goals
III. Overview of the Transformation Stages
for the Last Mile of Finance
IV. Analyze – Identify the Performance
Gap Plan Scope & Schedule Perform Manage Report
V. Self AssessmentVI. Where to StartVII. Case Study
The Last Mile of Finance
Inform
C
Prepare&
Report
GroupClose
GL Close
& Consolidate
Local Close
Plan Scope Schedule Report Forecast
Plan
Procure to Pay
Order to Cash
ACCURACY CONTROLS TIMELINESS
THE BRIDGE TO REPORTING TRANSPARENCY
Budget
Comply
Perform Manage
The Last Mile of FinanceThe Last Mile of Finance
GL
Rec
ons
Ope
ratio
nal
Rec
ons
Clo
se +
R
epor
ting
ManagementReviewer/Supervisor
Performers
Com
plia
nce
40 + DaysQ start Q end
90 days
Import tasks & controls
Schedule tasks
Perform
Monitor Roll forward
Review File
Support inE-Record
Form10Q10K
Taxonomy Tagging XBRL Filing
XBR
L
Scope Auto Schedule tasks
Perform compliance tests
Remediate
Report & Certify
Redesign
E-Record
Design & Establishcontrols
Review & Monitor
Assign & Schedule
Audit/External
Reconcile & research
Monitor/Review/Approve
Remind, escalate
Report, Analyze, Support
Prepare
-10 days
Remind, escalate
Research & Resolve
Manage exceptions
Load Balances
Auto match
Adjust & Balance
Report, Analyze, Support
Load balancesVerify complete
Manage issues
Ledgers
Performers
What are the Goals of Finance Transformation?What are the Goals of Finance Transformation?
Confident
Business Goal: An Automated and Standardized Finance Process
Streamlined Agile
Accuracy of the Foundational Numbers• Monitor key controls• Enterprise collaboration• Better information = better
decisions• Isolate and escalate issues rapidly
Standardize and Consolidate Processes• Focus on value-added activities• Improve service levels• Train employees faster• Automation = more work by
fewer people including SSC’s
Supportive Environment for
Enterprise Growth• Rapid integration of acquisitions• Smoother transitions• Framework to support new
initiatives (XBRL, IFRS, TAX)
Lack visibility into processes
Desire for top down approach
Unacceptable level of risk
Uncertain
Cycle times too longOverlapping requirements
Stressed personnel
Inefficient
Lack flexibility to absorb changes
Turnover is disruptive
InflexibleThe Drivers of Change
Optimize
Energize
Analyze
Strategize
Last Mile of Finance Maturity ModelLast Mile of Finance Maturity Model
Manual Process Improvements
• (Manual) detective controls & procedures
• Manual process improvements
• Legacy apps• Heavy spreadsheet use
• Email, Word, shared drives
Semi‐Automated Process
• Semi‐automated controls
• Point solutions for collaboration (e.g. SharePoint), process management and compliance
• Lack of controls across data streams
• No single view into close and reporting process
Manual Processes
• Disjointed processes• Legacy apps• Heavy spreadsheet use
• Email, Word, shared drives
Fully‐Automated& Optimized
• Best practices• (Automated) preventive controls embedded into business process
• Consolidated view into close & reporting process
• Fully integrated with XBRL, close, exception mgt, reconciliations, and compliance
• Automated and collaborative global workflow
• Real‐time process optimization
Efficiency, Transpa
rency, Qua
lity
Cost of Finance, Risk
TODAY WE ARE HERE
Last Mile OF Finance Leading Practices AssessmentLast Mile OF Finance Leading Practices Assessment
Before beginning the “Last Mile of Finance Leading Practices” series, we invite you to evaluate and score your Close process.
The white paper has a more detailed set of questions that can follow today’s review.
Evaluate and Score your Close Process Evaluate and Score your Close Process
What are the Last Mile Leading Practices?What are the Last Mile Leading Practices?
Where does your organization rank in terms of Last Mile practices?
Analyze: Close Planning Analyze: Close Planning
The process of planning and
administering the close process
• Relative to all initiatives, how important is the
accuracy, timeliness and cost of the Close process?
• Is the global Finance Organization aligned around a
clear set of close goals, risk and deliverables?
• Do changes in the management, planning and
administrative processes for close cause disruption?
PLAN
Analyze: Close Scoping and Scheduling Analyze: Close Scoping and Scheduling
The process of determining the nature,
timing and extent of close work to be
performed
• How closely aligned is the establishment of close tasks
and timing with the risks assessment and management
issues?
• Are the close scheduling and scoping automatically
integrated with the close task list and calendaring?
• Are the close schedules and scoping automated so that
they are easily changed with new requirements or
personnel changes?
SCOPING & SCHEDULING
Analyze: Close Performance Analyze: Close Performance
The process of performing the tasks
required to validate, adjust and
approve final results• Does the close process result in fewer than 5
adjustments?
• Are the financial statements ready for management review in 3 to 5 business days with minimal overtime?
• Is the absence of one or a few key personnel during the close process highly disruptive and stress inducing?
• Is close a non-event?
CLOSE PERFORMANCE
Analyze: Close Management Analyze: Close Management
The process of overseeing the
execution of finalizing financial
results
• Are the financial results issued with confidence that
they are non-restateable?
• Is the close process a driver of people leaving
finance?
• Is the cost of the close process at a level that is
viewed as acceptable?
CLOSE MANAGEMENT
Analyze: Close Reporting Analyze: Close Reporting
The process of disclosing the
financial results to management and
third parties
• Are the financial reports easily produced?
• Are financial results delivered in a self-service
format?
• Are changes to reports or new additions easy to
absorb?
• Are the reports readily accessed with all requisite
support when needed?
CLOSE REPORTING
Self - Assessment
• Optimal – highly automated, very
efficient
• Effective – making strides but have
not integrated processes fully
• Ineffective – are in the very early
stages and are very manual and
disparate today
Self-Assessment Results Self-Assessment Results
What step of Transformation makes sense?
Transformation Step
→ Review Optimize steps to validate
and enhance
→ Start with Energize steps and create
momentum with automation
→ Start with strategize and create a
plan for change
Case Study – CME Group Case Study – CME Group
CME Goal: Reduce Pain and Cost in CloseCME Group, the world’s leading derivatives
marketplace with market cap of $19b,
implemented a leading practices approach for
standardizing their Last Mile process.
CME’s Finance Group established a single
automated system of all Last Mile tasks,
associated dialogues and review notes. They
used work flow and management consoles to
determine if Close tasks were stalling due to
nonperformance. As a result, they achieved
substantial annual savings.
“Before using this Last Mile approach, overtime was the norm.” says John Verburgt, Director of Compliance & Controls at CME, “with 45 accountants working at least four hours of overtime per month each to close our financials. Now we no longer incur any overtime costs associated with the period end, allowing us to capture greater annual savings.”
Case Study - GoogleCase Study - Google
Goal – Improved Communications & Issues TrackingGoogle struggled with team communications and
tracking Financial Close issues across global
operations.
By standardizing the Close process and linking
Close task dependencies Google:
Gained significant transparency across their
global processes
Reduced days to Close from six to four – a
33% increase in efficiency.
The Last Mile Optimized = New InsightsThe Last Mile Optimized = New Insights
Reporting ReadinessDashboard insight into detail of controlsand task by account
Close Design EfficiencyDetail of tests and task by line item ondisclosure index Over/under evaluatingresults?
BU / Geography ReadinessGlobal Status via collaboration
Issues Reaction TimeConfigurable report for tracking of turnaround time on key issues
Work Load ManagementAbility to shift work load as required
Global Clock UtilizationAbility to use full 24 hours to executetask across the globe using workflowand task management
Questions?Questions?
Thank you for participating.
For further information please contact:
[email protected] (USA)+1 800 416 0075
[email protected] (EMEA)+44 (0) 207 628 5235
Continue the Conversation – Please register for the second in our new webinar series
Part II: STRATEGIZE: Planning Last Mile AutomationWhen: Wednesday, March 21, 2012
Time: 10:30 am Central Standard Time (Chicago, GMT-06:00)
4:30 pm GMT Time (London, GMT)
http://www2.trintech.com/l/3242/2012-02-01/b3nb8
www.trintech.comwww.trintech.com
TransformingTransformingthethe LAST MILELAST MILE ofof
FINANCEFINANCE
Thank YouThank You
Theresa Clark – VP, Finance Transformation