国际集团集中管理

UfsoftERPforum2002.08.08HangzhouGroupmanagementofglobaloperations-

Financemanagementinthe21stcenturyIntroduction.Generalaccounting.Tax.Accountsreceivable.Accountspayable.Payroll.EmployeeExpenses.Inventory.Fixedassets.Project/jobtrackingInternalcostdistribution.

Financialforecasting.Cashmanagement.Foreignexchange.Insurance/riskmanagement.Investment/borrowing.Achieving“excellence”willentailnewpracticesacrossallfinancefunctionalareas.FunctionalAreas“CommonPractice”“GoodPractice”“FinanceExcellence”Settingtargetsbasedonaccountingmeasures:EPS/ROE/ROIPerformingbasiccapital/portfolioanalysisPerforminginitialM&AappraisalsManagingriskagainstrigidrulesConductingtreasuryoperationsBuildingtaxplanDevelopingfundingplanCompilingbusinessplansIndependentlyapprovingordevelopingcapitalandoperationalbudgetsProcessingtransactionsCompletingbasicaccounting/generalledgerfunctionsMonitoringpastfinancialperformanceagainstbudgetsReportingfinancialinformationagainstascheduleIdentifyingfinancialimpactofbusinessstrategyUnderstandingdriversofvaluecreationAnalysingbackgroundandsourcedatafor:DriversandtrendsAccuracyCertaintyDevelopingalternativesforcapital/portfoliostructureDevelopingoptionsandrecommendationsaroundfunding,taxandtreasuryEvaluatingfinancialandbusinessrisksincontextofbusinessobjectivesStandardisingandstreamliningbudgetprocessUsingactivity-basedmetricstoidentifybudgetprioritiesAutomatingtransactionprocessingDevelopingbest-in-classoperationsagainst:CostSpeedQualityManagingimprovementsofoperationalprocessesEstablishingvaluebasedmeasuresIntegratingmeasurestoensurealignmentandconsistencyDevelopingstreamlinedreportingProducingreal-timedataAdaptingoutputtoneedsRespondingtoinvestorqueriesContributingtodevelopmentofbusinessvisionIdentifyingandmodellinglikelyscenariosPlanningandleadinglong-termvaluecreationProactivelyidentifyingexternalandinternalcapitalallocationoptionsEvaluatingstrategicalliancesandopportunitiesEmpoweringoperationalstafftocontrolrisksManagingriskagainstbusinessprinciplesPositivelymanagingrisksaspotentialopportunitiesDevelopingbudgetingprocessthat:IsrapidandreactstoopportunitiesIncludescontingencyplansFacilitatingbudgetastheprocesswhichmatchesplannedactivitiesagainstthestrategyOutsourcingofnon-coreactivitiesCombiningabalancedsetoffinancialandnon-financialmeasuresAligningmeasureswithbusinessstrategyandtacticalgoalsthroughoutorganisationCommunicatingstrategythroughchoiceofmeasuresIntroducingpredictiveperspectivetoreportsManaginginvestorrelationshipsandexpectationsPerformanceManagementCommunicationFinancialOperationsCostPlanningandBudgetingFunding,TaxandTreasuryInvestmentManagementFinancialStrategyFinanceasapowerfultooltorunacorporation.

FrequentcomparisonsofCorporatereportingactivitieswithstatutoryregulationsMinimalnumberofCorporateaccountswithcostjustificationofincreasesLimitednumberofreportingentitiesUnitaccountingoperateswithinCorporatepoliciesandproceduresbutmaintainaseparateledger(s)withaflexiblechartofaccountsCommonChartofAccountsAutomatedconsolidationuploadfromunitsOriginatorresponsibleforquality(zero-errortolerance)AutomaticinterfacebetweenGeneralLedgerandsubsystemsTransactionsarecodedwithsufficientinformationformultiplereportingrequirementsGeneralLedgercontainsonlysummarydataofsubsystemactivityAutomatedaccountreconciliationStandardgeneralledgerpackagesMulti-currencyandmulti-lingualaccountingpackagesFinancialdatabaseforanalysis&reportingAutomaticinter-companyposting,reconciliationsandeliminationsInter-companychargesconsolidatedandfundedatonetimeeachmonthReal-timeintegratedfinancialsystemwithcontinuousclose(Event-BasedAccounting)Automationofcontrols/clericalfunctionsIntegratedfinancial/operationaldatabaseSupportfor:ActivityBasedManagementResponsibilityReportingIndex.Financetransformationsincethe1990’s.

Financecontroloverglobaloperations.Casestudies.Index.Financetransformationsincethe1990’s.

Financecontroloverglobaloperations.Casestudies.Theagendaisshifting...

RecentagendaFinanceprocessredesignImprovethecontrolframeworkImproveoperationalefficiencyImplementERPapplicationsRedesigntheroleandorganizationoffinance

ImpactofeBusinessIncreasedpressureforproductivityand“value”addedFinanceSpeedandtransparencyAdvancesintechnologyChangesinthethewaybusinessisdoneDistributionofskillsacrosstheorganizationGlobalisation

ChangingexpectationsValueaddedfinanceAccessibleandvisiblebusinessintelligence&performancemeasuresGreaterspeed,flexibility,responsivenessandcostefficiencySelfservice/betterserviceCollaborationandconnectedcommunitiesMulti-skilledemployees1990’s21stCentury...fromtransactionprocessingtovalue-addeddecisionsupport.NumberCruncher21stCenturyFinancePartnerDecisionSupporterNumberManipulator1990’s21stCenturyTransactionsMinimizedProviderofSignificantStrategicvalueRealignedtooperatelikeabusinessSignificantEfficienciesObtainedImplementingAnalyticalSolutionsReducingCostofFinanceBuildingEffectivenessFoundationNonValueAddedFunctionLegendDecisionsupportControlReportingTransactionProcessingSharedservicesoroutsourcedfinancialtransactionprocessingCorefinancefunctionsFewcompaniesconsiderfinancetobeachievingitsmaximumefficiencyandeffectivenesspotential.

AccordingtoCGEY’sRapidFxBenchmarkStudy-Only18%ofcompaniesutilizeaGroup/Sector/Corporatedatawarehouse.Only46%ofcompanieshaveimplementedsharedservicesasakeypartofthecompany’sbusinessstrategy.Ofthosethatdoutilizesharedservices,only17%haveclearperformancemeasures.67%,however,viewthisasveryimportant.Only37%ofcompaniessaytechnologyhasbeenthekeyenablerfortheirsharedservices.However,79%saytechnologyshouldbethemostimportantkeyenablerforsharedservices.Fewcompanieshavebeensuccessfulinleveragingstatisticalanalysissoftwareforinternalandexternalreportingneeds.Fewcompaniesaresucceedingindrivingmaximumbusinessvaluefrom

theirtechnologyinvestmentsbyautomatingandroutingtransactionprocessing.Allfinancialprocessesarecoordinatedaroundacommongoalofimprovingshareholdervalue.ShareholderValueEnterprisevaluemaximizationTransactionalprocessingManagementinsightCoordinatedtransformationHowdoesfinanceoptimize,grow,downsize,andinvestinordertodriveshareholderperception?Howdoesfinancesynthesizeandanalyzedatatoprovidetruebusinessintelligencesupportingcriticaldecisions?Howdoesfinancesignificantlyimproveorevengetoutofthetraditionalfinancetransactionbusiness?Quantitativeandqualitativebenefitsofa21stcenturyfinanceorganization.Improvedshareholdervalueduetoanabilitytounderstandandinfluencethetruedriversthatimpactit.Reducedcostsduetoeliminationofshadowfinanceorganizationsinthebusinessunits.Reducedcostsduetooptimizationoftransactionprocessingspend.Reducedcostsduetotheeliminationofdisconnected,finance-relatedtechnologypurchases.QuantitativeQualitativeAccurateinformationtoreact/recovermorequicklywhentheeconomychanges.Understandingofhowtocombinecostcuttingeffortswitheffectivenessimprovementeffortstomovealongthetransformationpath.Evolutiontoabusinesspartneringmodelbetweenfinanceandrevenuegenerators.Financesavvyenterprise/culture.Financethereforebecomesaproactiveunitinthefirm..

ProactiveAgendaHighfixedcostbusinessmodelFTEcostreductionsMatrixorganizationTransactionalprocessingconsolidationSemi-integratedtechnologyplatformsLargereportingpackagesRenewedshareholdervaluefocusFinancialtransparencyandintegrityDataqualityStreamlinedorganizationalaccountabilityVariablecostofinfrastructureandworkforceProductivityOrganizationaladaptabilityTechnologyasanenablerOperationalexcellence

ReactiveAgenda1990’s21stCentury..topossessthekeycharacteristicsofthe21stcentury.Value-addedcustomerservicedeliverymodel.Highlyskilledfinancedecisionsupportresources.Financialskillsets“embedded”inkeybusinessareas.Enhancedalignmentofstrategyandoperations.Integratedbudgeting,forecasting,measurement,analysis.Optimizedtransactionalefficienciesthroughoutsourcingandsharedservices.Integratedprocessesacrossthefinancialsupply-chainoftradingpartners.Advancedweb-enabledself-serviceandproductivityenablingtools.Integrated,corporateportalswithsecurelinkstoapplications.Integratedprojectionandanalysistoolsuites.PeopleProcessTechnologyIndex.Financetransformationsincethe1990’s.Financecontroloverglobaloperations.

Casestudies.Aglobalgroupcanonlystarttocontrolifithastherightfinancefunction.Oneofthefirststepsistorealisethattheboard’stopresponsibilityistotheshareholders.OnlythenarechangespossibleleadingtoboardreshufflesandthecreationofaglobalCFO.ManyAsianMNC’shaveonlyrecentlyhiredaCFO.Sonydidso3yearsago.FujitsuhireditsfirstglobalCFOinMarch2002.Whythischange?Itisglobalcompetitionandglobalrequirementtopublishtransparentaccountingthathaspushedcompaniestoimprovetheirfinancedepartment.Andaproperfinancedepartmentinturnthenassistsmanagementinbuildingtherightstructuretomanageabusinesssuchthatitbecomescompetitive.CFO’shelptopmanagementpushthroughchangesthatarenecessaryforacompany’sfinancialwell-being,andsometimessurvival.CFO’spushthroughworkforcereductions…likeatFujitsuinJapan.CFO’sarenolongeronlyfocusedonnumbers.Theyarebecomingmoreandmoreinvolvedinallaspectsofthebusiness.ItisnotuncommonthatlargeMNC’sasktheCFOtotakeovertheCEOjob.Source:Factiva2002,“ThenewCFOoftheFuture”KPMGFinancehelpslargegroupsdevelopstrategies.ThreecoreaspectstochangeinbusinessiscreatinganewroleforCFO’s.GlobalisationNewtechniquesandconceptsTechnologyMajorchallengeforCFO’istoformulateandcommunicatestrategy,bothinternallyandexternally.Oncestrategiesareformulated,thenthesehavetobetranslatedintoactionplansandfinanceplaysakeyroleinimplementinganddrivingthestrategy.Source:Factiva2002,“ThenewCFOoftheFuture”KPMGIndex.Financetransformationsincethe1990’s.Financecontroloverglobaloperations.

Casestudies.GeneralElectricisabletotrackallitsglobalbusinessesinreal-time.

FulldigitisationofGE’sbackoffice:GEiscurrentlyworkingtocompletelydigitizeitsbackofficesothatalmost100%ofemployeescanfocuson“frontoffice”activitiesReal-TimetrackingofallGEbusinessesinrealtime:GEiscurrentlyleveragingtechnologyinordertobeabletomonitorallGEbusinessesatanytimeSeamlessconnectionwithcustomers:GEiscreatingaseamlessdemandchainbyexploitingthefullpotentialofitse-exchangehubsandclearunderstandingofcustomersneedsSource:GE,CGE&YAnalysisNissan’sfinancialreportingwasadisaster.NissanMotorCo.Ltd.istheworld’s36thlargestcorporationwithoperationsin97countriesandinvestmentsin1,400companies.In1999,NissanenteredintoahistoricagreementwithRenaultS.A.ofFrancewhenRenaultpurchaseda36.8%controllinginterestintheJapaneseautomanufacturer.WhatdidRenaultdiscover?Nissandidnothaveonesinglesetoffinancialreports-makingitvirtuallyimpossibletomakeanydecisions.Oneregion’srevenuecouldnotbecomparedtoanother.Thesystemwasnotwell-organizedandrigorousenoughfora$50billioncompany.Nissansufferedfrommanagementproblems,difficultiesinfinancialreporting.Variousfinancialre-engineeringprojectswereconductedwith2goalsinmind-Achievedataconsistencyandtimelinessobjectives(globalGroupconsolidationwithin7-10workingdays)Provideflexible,butintegrated,managementdatabaseandreporting.Source:CGEYFinancialre-engineeringwasoneingredientinNissan’srecoveryafter10yearsoflosses.Nissanimplementedconsistentfinancialmeasuresandadatabaseforbusinessanalysis.ThesystemallowsNissantohave:Acommoncharteredaccount.Asinglereportingandconsultingsystem.AcommonconsolidationsystemwithRenault.Nowall315Nissancompanieswillreporttothesamecharteredaccountandadheretothenameaccountingrulesandprincipals.ThesystemwillreportontheJapaneseGAP,theUSGAPandEuropeaninternationalaccountingstandards.Withthisdatabase,itisnowpossibletoextractthereportsaccordingto:Company.Businessfunction.Market.Product.

Source:CGEYDaiwaSecuritiesGroupInc.DaiwaisJapan’s2ndlargestsecuritiesfirmwithrevenuesofUS$37.6billion.Threeyearsago,itscrappeditsboardinfavourofasmallerexecutivestyleboardwithoutsidedirectors.In2001,theycreatedforthefirsttimeaheadofglobalfinance.Theheadofglobalfinancehascarriedoutmajortasks:CleanupDaiwa’sbalancesheetbywritingoffUS$1.1billionCentralisedgroup’scashmanagementUpgradedITInstalledarigorousriskmanagementsystemwhichtracksrisksonadailybasis.Daiwaisveryconsciousofshareholdervalue.Fundmanagershavenoticedthis“financialturnaround”andincreasedtheirstakeinDaiwafrom17%to32%today.Source:FactivaIBMhasstreamlineditsorganisationthrough‘TotalQualityManagement’initsfinancedepartment.IBMObjectivesMaximizeshareholdervalueTQM-basedprocessre-engineering(concerningallfunctionsthroughoutthecompany)FocusonTotalQualityFinanceaimingtomaximisecustomersatisfactionLinkageofstrategicplanningandfinancialoperationsRoleandFunctionsExclusiveresponsibilityformainfinancedecisionsFinancemanagerspositionedasinspectorandauditorPartnershipwithoperationalunitstoboostefficiencyinproductdevelopment,customerrelationsandbasicfinancialtransactionprocessingFinancemanagerspositionedasfacilitatorandcoachOrganisationDecentralised:EachcountryranitsowntreasurycentreCoreprocesseshavebeencentralised(egtreasury)Smallteamsmadeupofexpertsspecialisinginspecificprocessesacrossthecompany(e.g.purchasingandaccountspayable)ToolsManualprocessing(ofadministrativeactivities)Quantitative,traditionalvaluationtools(e.g.:EPS)HomogenousdatastandardacrossthecompanyStandardisedoutputformatAutomatedprocessingoftimeandexpensereportingAstreamlinedprocesseliminatingpaperandmanualprocessingAcentralunithandlesbasicaccountingtasksfortheentirecorporationBrainstorming,taskforces,customersatisfactioncouncilsSkillsFinancestaffateasewithprocessbasedthinkingFinancestaffpositionedas“changeagents”.Theybecomepartsofcross-functionalteamsPerformanceMeasuresLengtheningofthemeasurementhorizonCustomersatisfactionmetricsBenchmarkingwithintheindustry“Aswas”“Asbecame”HOW?FinancialawarenessLimitedtofinancedepartmentConstantinteractionbetweenfinancedepartmentandbusinessunitsCentraltothecompanyon-goingimprovementprocessEDShasmanagedtoimprovethefinancegroup’scoststructureby50%.EDSObjectivesMaximisecostreductionRe-engineertobecomemoreefficientandeffectiveinfinanceStandardisedcyclesandcalendarsRebalancework-forceintobusinessanalysisandsupportFocusonmaximisingcustomerandemployerprocessingCustomer-orientedfunctionsRoleandFunctions1400accountmanagersresponsibleforpaymentcollectionsCentralresponsibilityforentireprocessApprovalbydecentralisedmanagersCompliancewithfinancialoperations,dataprocessing,andadministrativecontrolsOrganisationHighlydecentralisedoperationalorganisationSharedservicecentresCentrallyowned,controlledandmaintainedprocessesToolsManualprocessingoftransactionsStandardcostandvariancesBenchmarkingConsolidate,centraliseandautomateprocessingReducenumberofsystemsFocusonactualcost,ABC/ABM,andtargetcostwitha