Post on 02-Dec-2014
description
Driving Payroll Excellence –
Microsoft & ADP Partnership
Srini Krishna
Director, Finance Operations – Commercial & Global Supplier Management
srikrish@microsoft.com
April 17, 2012
Agenda
Context The Early
Steps
Vision
Governance
BPO Footprint
Service
Management
The Future Sustainable
Controls
Context
Microsoft’s Finance Transformation Programme
Transform the way Finance drove Shareholder Value
The Finance Vision
“Best in class Finance functions, enabled
by process standardization, solid internal
controls, and effective performance
management. Achieved by hiring and
developing the best people and using
integrated applications that showcase
Microsoft technology”
Business Insight
Business Excellenc
e
Personal Leadershi
p
oProcess execution
oPerformance
management
oSustainable Controls
oPersonal value-add
oPersonal
Performance/
Influence
oTeam performance
oStrategic thinking
oStrategic planning
oKey decision
support
Finance Operations chartered to drive… Process standardization, reduced complexity and move
non-strategic activities out of subsidiaries
Efficient compliance processes that create sustainable controls environment
Powerful business insight and performance management and provide single view of truth
Drive down overall cost of delivery of Finance Operations
Transform Finance processes to best in class levels
…leading to the outsourcing of F&A and Payroll processes
Payroll Outsourcing
Footprint
International Payroll Contract
International Payroll Contract with ADP Signed in 2006
Five year term
Scope covered 20 countries - GlobalView
Contract renewed in 2011
Two more countries added
Scope
Geography – 22 countries (EMEA – 14, Asia Pacific – 8); approximately 20% of Microsoft presence
Employee coverage – 24,000 (EMEA – 13,000, Asia Pacific – 11,000); approximately 26% of Microsoft headcount
14 languages
Payroll Outsourcing relationship with
ADP
The Early steps – Voyage of Discovery
… journey to Ithaca
Inadequate knowledge of the challenges of International payroll
Little idea of what to expect from or how to manage an outsourcing contract
Subsidiaries/Countries not prepared for outsourcing
ADP too had its own challenges
Its “one-to-many” model while efficient could not flexible to manage a global delivery model that was focussed on enhancements and transformation
Customer satisfaction fell to abysmal levels
Payroll Outsourcing relationship with
ADP
The Vision
Vision for International payroll
Create a vested outsourcing relationship
Vested
relationship
Clearly
defined
OUTCOMES
The WHAT
not the
HOW
INSIGHTFUL
Governance
Mutually
BENEFICIAL
Economics
Clear articulation of the desired outcomes
Focus on the WHAT not the HOW?
Governance model emphasising more insight than oversight
Commercial model that fosters flexibility, partnership and collaboration
The Partnership
Global Payroll Contract
Focus on Outcomes
Clear articulation of what we wanted from the outsourcing relationship over the long-term Programme/business
Customer
Partner
Agree on clearly defined and measureable outcomes
Getting Governance right, a sine qua non
Alignment and mirroring of the governance structure between the two organisations
Encourage collaborative behaviour
Peer-to-peer communication down to the lowest levels
Collaboration tools to provide transparency
Encourage insight to complement oversight
Built Around Four Competencies
Service delivery &
management
Efficient and effective
delivery of service
Responsive customer
engagement
Ensuring statutory,
regulatory & internal
policy compliance
Process
Championship &
Transformation
Process stewardship &
thought leadership
Leading service
excellence and
transformation to
world class levels
Alignment of process
design to evolving
business & regulatory
needs
Controls &
Compliance
Drive a work class
controls environment
Ensuring statutory,
regulatory and internal
policy compliance
Ensuring Controls
environment is aligned
to evolving business
needs
Commercial &
relationship
management
Managing the
commercial and
contractual aspects of
the outsourcing
arrangement
Managing the global
relationship with the
service providers
Driving service
excellence &
transformation through
appropriate commercial
arrangements
Finance Operations International Payroll Mgmt.
Aligning Governance and delivery models
Service delivery &
management
Process
Championship &
Transformation
Controls &
Compliance
C
Commercial &
relationship
management
Finance Operations International Payroll Mgmt.
Microsoft & ADP Points of Contacts
ADP back-end service delivery centres
Leveraging ADPs “one-to-many” model with ability to deliver “one-to-one” customer focus
Service management & Controls - driving accountability
PFCs &
FSDMs 1:1
Serv
del.
Leads
Global
Ops
review
• MS Head Payroll
Mgmt + ADP Pgm
Dir 1:1
Trans
Leads1:1
Jt Ops
Grp
•MS Head Payroll Mgmt
+ ADP Pgm Dir1:1
Commercia
l teams 1:1
Contracts
teams 1:1
Jt Ops
Grp
•MS Head Payroll
Mgmt + ADP Pgm
Director 1:1
Reg SD
leads, PFCs
FSDMs &
CAs 1:1
C&C
Team 1:1
Jt Ops
Grp
•MS Head Payroll
Mgmt + ADP Pgm
Director 1:1
Service Delivery
Process Stewardship &
Transformation
Commercial, Contracts & Vendor Mgmt Controls & Compliance
Commercial model – design principles
Global commercial model
Built-in flexibility grounded in a set of agreed principles
Balancing risk and reward appropriately
Fair economic return to both sides
Avoidance of the need to price the “unknown”
Drive collaborative behaviour to achieve transformation and excellence
Drive Microsoft internal behaviour, foster discipline
What have we achieved
Avg. SLA performance 99.6%
S-Ox & Internal Audit certification Green
Customer Satisfaction (Microsoft Finance & HR community)
Year 3 of relationship(Out of 5) 2.0
Year 6 of relationship (Out of 5) 4.3
External recognition – awards from Industry associations 1
BPO relationship at its 6th Anniversary
The Partnership
The Future
Grow the Partnership
Consolidate the current governance model
Expand the current footprint into new geographies and business areas (e.g., LatAm)
Drive collaborative transformation through alternate commercial structures