Bord Na Móna Financial Shared Services Programme 2013 … Conference 2017/Shared Services... ·...
Transcript of Bord Na Móna Financial Shared Services Programme 2013 … Conference 2017/Shared Services... ·...
Bord Na Móna
Implementing Shared Services and Business Intelligence at
Bord na Mona 2013-2017
David FoxFormer CIO Bord na Móna11th October 2017
Who is Bord na Móna? - Statistics
On an annual basis Bord na Móna:• Harvests and sells 4 million tonnes of peat;
• Blends, bags and distributes 1.6 million cubic metres of growing media;
• Manufactures and sells 210,000 tonnes of briquettes;
• Generates and sells 800,000 MW hours of electricity;
• Collects, treats and disposes of 625,000 tonnes of waste;
• Imports, blends, bags and sells 220,000 tonnes of coal;
• Purchases and co-fires 180,000 tonnes of biomass.
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Shared Service Project Objective 2013
• Create an effective Finance operating model to support BNM to achieve strategic objectives by:• Standardisation, Simplification & Automation of following processes:
• Inventory Management
• Procure to Pay
• Order to Cash
• Record to Report
• Purchasing
• Reporting
• Facilitate cost reduction
• Increase quality of service
• Improved financial controls and risk avoidance
• Increased efficiency of Finance operations
• Migrating to Oracle StandardisationCopyright David Fox and Bord na Mona. Not for copying or
distribution.
Shared Service Project Objective 2013
Achieved via 3 key streams:
1. Organisation Change – new Shared Service Centre & Finance Business Partner model
2. Business Process Engineering – standardised, simplified processes & reporting, maximising use of automation
3. Information Technology – Implement Oracle R12 EBS solution & BI tools
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Increased Efficiency• Optimised processes• Economies of scale• Greater span of control• Leverage IT investment• Standardisation• Process re-engineering• Integrated procurement• Acquisition synergies
Increased Effectiveness• Enhanced Customer Service from:
• Front office mind set• Service level agreements & service
costing• Make the most from specialist skills• Management more free to focus on
business issues• Improved decision support• Easier to do data warehousing• Improved control environment
Finance Shared Services – Business Case Benefits
Copyright David Fox and Bord na Mona. Not for copying or distribution.
FSS Functional Scope
Procure to Pay
• Submission (& approval) of Expenses
• Receive and Scan Mail (where received locally)
• Initiate Purchase Requisition
• Local Purchasing (P-Cards)
• Goods Receipting
Order to Cash
• Order Management (Point of Sales ‘POS’)
• Billing (including POS)
• Credit Management\ Cash Collection (POS)
• Accounts Receivable (POS)
Record to Report
• Request Chart of Accounts Changes
• Review Journal Entries
• Non-recurring/manual accruals
• Non rules based bad debt provisions, etc.
• Costing \ Project Accounting
• Budgeting, Forecasting (incl. cash flow and FX forecasting) & Business Planning
• Inventory (excl. sub-ledger recon. to GL)
• Review and analysis of Management Accounts
• Liaison with Business Unit Management
Local
Procure to Pay
• Processing & Audit of Expenses
• Receive and Scan Mail (where received in FSS)
• Supplier Master Data Management
• Centralised Purchasing
• Process AP Invoices (Including EDI)
Order to Cash
• AR Invoicing & Credit Management (excl. POS)
• Cash Receipts & Applications
• AR Collections
• Manage AR Period Close
Record to Report
• Manage AR Master Data & Open/Close Periods
• Create Standard Journal Entries
• Rules Based Provisions etc., & Sub Ledger Recs
• Fixed Assets (excl. Revals & Closing Projects)
• Bank and Petty Cash Recs
• Perform Allocations
• Inventory Accounting*
• Intercompany
• Perform Close & Consolidation
• Preparation of Management Accounts
• Tax Compliance
• Financial Reporting
• Audit & Compliance
Finance Shared Services
SHARED PROCESSES
Procure to Pay
• Resolve Supplier Queries
Order to Cash
• Customer Set Up & Maintenance
• Resolve Customer Queries
• Sales Order Admin (EDI, POS, Manual)
• Cash Collection (excl. POS)
Record to Report
• Budget preparation & processing
• Fixed Assets (revaluation & closing projects)
• Treasury (Group)
Copyright David Fox and Bord na Mona. Not for copying or distribution.
FSS Organisational Scope
Group
– Bord Na Móna Plc
– Bord Na Móna Property Ltd
– Bord Na Móna Treasury
Anua
– Bord Na Móna Environmental Ltd
– Bord Na Móna USA Inc.*
– Bord Na Móna Environment Products US Inc.*
– Bord Na Móna Environment UK Ltd*
Feedstock
– Bord Na Móna Allen Peat Ltd
– Bord Na Móna Energy Ltd
Retail
– Bord Na Móna Fuels Ltd
– Bord Na Móna UK Ltd*
– BNM Fuels Ltd
– Bord Na Móna Horticulture Ltd
Resource Recovery
– Bord Na Móna Resource Recovery
– Advanced Environmental Solutions (Ireland) Ltd
Powergen
– Edenderry Power Ltd
– Edenderry Operations Ltd
– Bord Na Móna Windfarm One Ltd
– Renewable Energy Ireland Limited (JV)
– Cushaling Power Ltd
– Oweninny Power Ltd (JV)
– Bruckana Wind Farm Ltd and Supply Company Ltd
– Mount Lucas Wind Farm Ltd and Supply Company Ltd
Companies Not in Scope
– Derryarkin Sand & Gravel
– Bord Na Móna ESOP Trustee Ltd
– Bord Na Móna Trustee Co. Ltd
– Suttons Oil
– Suttons Oil Ltd
– All non-trading or legal entities that are in liquidation
• In 2013 there were 28 active legal entities in BNM. Of these 23 were in scope for FSS includinginternational operations.
• FSS is viewed as an enabler for these and other acquisition and merger initiatives.
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Legend
Oracle 12 Excel
Other –Internal
Other - External
Sage Line 500 Avante
2013 Applications Map
Manual InterfaceAutomatic Interface
Reconcile ReturnsRCT/ PSWT/ MOTCC
ROS
BankFile
Bank Payments
General
F
RE - Fuels
RR
PTime/ Payroll
Payroll
Central Payroll
SSC HR
G HR Payroll
Oracle
Reporting
OraclePayroll Cost Journals
Payments to Cash Mngt.
Gen Ledger
Oracle
Cash Mngt.
Oracle
ADataload (for Anua
Projects) Payments Only
Datalaod
LIMS Invoices
Excel
Continuous Cheques
Pre Printed ChequesAP Invoice
Payments (Std. Times)
Payroll
Clockwise/ TMS
Supporting Systems Payroll Journal
Payments
PayrollPayment by Results(Bonus Payments)
P.B.R.
Bonus Data
Production & Receipts
OtherRaw
Materials Inventory
Material Purchases
A
Sage Journals –Subsidiaries UK/ USA
Excel
Sage Journals
Sage – UK & US
Full Trial Balance
Journal Entries(Ireland, UK&USA)
ADI Uploads
Accruals Stock Journals Consolidated
ReportingTBC
Item Standard Costing/ Sales
Budgeting/ Various
Operations Planning
Budget/ Operations
Planning
Sales Reports Inventory
RE
Financial & Sales
Reporting
Diver/ Crystal/ Excel/ Access/
Sage
Item Standard Costing/ Sales
Budgeting/ Various Operations Planning
Financial & Sales Reporting - Diver
TBC
Bank Statements
EFT
Retail - Hort
Item Std Costing/ Sales Budgeting/
Various Ops Planning
Ops Planning - TXT
Production&Receipts
OtherPOs &
Scheduled Receipts
Inventory From Blade
Inventory Reports
Manual Adj. to
Inventory
UK Scheduled Inv. Despatches &Receipts
PInvent.,Purch.
PowerMaintAP Invoices, Inventory Balances&GL
Suppliers
Various reporting
Fuel Management
Analysis
Laboratory From IPSAS
AP InvoicesInventory
Balances&GL
Suppliers
Ae.g. Water/Soil Sampling
LIMS
Inventory Mgmt.Manufacturing
Sage – Anua UK
GL Journals
Production & Receipts
Other
FG/ RM/ Stores Inventory Mgmt
Avante Inventory Movements
GL Balances
Shipping
Fuels
F
InventoryProcurement
(Biomass)
IPSASReporting
Oracle
Quality
PabLab
Inventory ProcurementAP Invoicing
Maximo
Biomass/ Haulage
AP Invoices
Inventory & PO Journals
Production Sheets
Other
Supplier
Inventory
AP Invoices
GL Journals
Invoice Data - AR Sampling Data
TBC
TBC
Retail - Fuels
PTMPTP/HCM
RTR
Cheque/ EMT Export
OTC
Remittances
MS Word
CRM Application
MS Access
F RE - FuelsRRPGA
TBC
Order Mgt. -TBC
Excel
AR Invoice Related
BiddingPerformance Data
InvoicingReporting
Market Operations
Mkt. IntelligenceFuel Trends
Weather
Management
AP Invoices
GL Balances
Direct DebitsIVR
Realex/ Payzone/
Bilpay
Interfaces
EiTrax(Document
Mgt.)
Supporting Systems
Direct DebitsEFT
RealexCash/ Cheques
Payment Methods
Accounts Receivable Domestic
Routeman
GL Balances
Commercial Customers
IWS*
AR Balances
Commercial Customers -
Drehid
Genesys*
AR Balances
Cash/ Cheques
Other
IWS/ Genesys PowerMaint
Application Under Review Routeman
Customer
Cash/ Credit Notes
Shipping Execution
Sage
EDI Invoice
Order Mgt.
Sage
TBC
TBC
EDI Orders
Biomass Haulage
Data
Single Energy Market Systems
External Web Interface
SEMO
Transmission & Translation
Gentran EDI
Finished Goods Inventory
Order Mgmt.Shipping ExecutionInvoicing (UK/Int.)
Fourth Shift
GKN Pallet Tracking
Other
P&O Logistics –Planning&Execution
Blade (P&O)
Customer –UK/ Int.
EDI Invoice
EDI Orders
EDI Ack
EDI Remit
CashInvoices
(IRE)
Pallet Shipments Interface File
Note 1
Note 2
Manual Orders/ Printed Invoice
Customer –Domestic
Sales Reports
Orders (IRE)
Invoices UK/Int
- AR
Inventory
Cash – AR
AR Payments
TBC
RE - Hort
AR Invoicing
IPSAS
Electric Ireland (Customer)
External
Power Purchase Ag.
Hort
RE
New Commercial System – AR Commercial
*Elemos
Application Under Review
*New software combining Genesys & IWS` by Q4 2013
Out of Scope
BNM UK
Navision
3rd Party Logistical
Production
From/To Customer
UK/Int.
Orders
Invoice
Sutton OIl
Codas
From/To Customer
Orders
Invoice
Retail - FuelsTo Financial & Sales Reporting
Retail - Hort
Fourth Shift Blade
From Forthshift
Sage L 500
Ord
er
Mgm
t.
Ge
ne
ral L
ed
ger
Accounts Payable
Acco
un
ts R
ece
ivables
Purchasing
Inventory Mgmt.
Invoicing
Sage L 500
AvanteEpicor
Ge
ne
ral L
ed
ger
Accounts Payable
Acco
un
ts R
eceivables
Invoicing
Ban
k R
ec
Cas
h M
ngt
.
Fixe
d A
sse
ts
Ge
ne
ral L
ed
ger
Ch
art
of
Act
s
Re
po
rtin
g -
Frx
Inte
rco
mp
any
Accounts Payable
Purchasing
Vendors
Acco
un
ts R
eceivable
s
Inventory TBC
Fixe
d A
sse
ts
Ge
ne
ral L
ed
ger
Re
po
rtin
g -
Frx
Ban
k R
ec
Accounts Payable
Purchasing Acco
un
ts R
ece
ivables
Sage Line 200
Oracle
Ch
art
of
Act
s
Re
po
rtin
g
Cas
h B
oo
k
Accounts Payable
Vendors
Acco
un
ts R
ece
ivable
s
Excel
OracleOmincron Accounts
PayableAcco
un
ts R
ece
ivable
s(P
rop
erty)
Excel
Ge
ne
ral
Led
ger
Ge
ne
ral
Led
ger
CM Journals G
en
era
l Le
dge
r
Accounts Payable
Re
po
rtin
g
Bu
dge
ts
Jou
rnal
s
Man
ual
A
ccru
als
He
adco
un
t R
ep
ort
s –
IrlG
L
Tria
l Bal
ance
s(I
rl/U
K/U
SA G
L)
Ge
ne
ral
Led
ger
Acco
un
ts R
ece
ivable
s
Ban
k
Re
c
Cas
h
Mgm
t.
FSG
Re
po
rtin
gvi
a A
DI
Powergen Group Anua
RR Feedstock Re – Fuels Re – Hort
Legend
A Anua PTP Procure to Pay
F Feedstock HCMHuman Capital Management
p Powergen OTC Order to Cash
G Group PTM Purchase to Make
RRResourceRecovery
RE – FRetail Fuels
RE – H RetailHorticulture
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Legend LegendOracle Excel
Other -Internal
Other - External
2017 Applications Map
Manual InterfaceAutomatic Interface
Oracle
Ge
ne
ral L
ed
ger
Cas
h M
gmt.
Fixe
d A
sse
ts
Pro
ject
Co
stin
g
Inventory Mgmt.
Acco
un
ts R
ece
ivab
les
Ad
vanced
C
ollectio
ns
Accounts Payable
Purchasing
iProcurement
iExpense
Reconcile ReturnsRCT/ PSWT/ MOTCC
ROS
BankFile
Bank Payments
General
F
RR
BNM Wide
HR Payroll
Oracle
Reporting
Oracle
Payroll Cost Journals
Payments to Cash Mngt.
Gen Ledger
Oracle
Cash Mngt.
Oracle
Payroll Interface
Payments (Std. Times)
Payroll
Clockwise/ TMS
Supporting Systems Payroll Journal
Payments
PayrollPayment by Results(Bonus Payments)
P.B.R.
Bonus Data
TBD
Business Intelligence
Bank Statements
EFT
PVarious reporting
Fuel Management
Analysis
Laboratory From IPSAS
AP InvoicesInventory
Balances&GL
Suppliers
Ae.g. Water/Soil Sampling
LIMS
Manufacturing
Oracle
GL Journals
F
InventoryProcurement
(Biomass)
IPSASReporting
Oracle
Quality
PabLab
Inventory ProcurementAP Invoicing
Maximo
Biomass/ Haulage
AP Invoices
Inventory & PO Journals
Production Sheets
Other
Supplier
Inventory
AP Invoices
GL Journals
Invoice Data - AR Sampling Data
TBC
TBC
PTMPTP
RTR
Cheque/ EMT Export
OTC
TBD
CRM Application
RRPA
BiddingPerformance Data
InvoicingReporting
Market Operations
Mkt. IntelligenceFuel Trends
Weather
Management
AP Invoices
GL Balances
Direct DebitsIVR
Realex/ Payzone/
Bilpay
Interfaces
EiTrax(Document
Mgt.)
Supporting Systems
Direct DebitsEFT
RealexCash/ Cheques
Payment Methods
Accounts Receivable Domestic
Routeman
GL BalancesGL Balances
Cash/ Cheques
Other
Application Under Review
Routeman
Customer
Shipping Execution
Oracle
Inventory
Orders
Single Energy Market Systems
External Web Interface
SEMO
GKN Pallet Tracking
Other
P&O Logistics –Planning&Execution
Blade (P&O)
Pallet Shipments Interface File
AR Payments
TBC
RE F
Biomass Haulage
Data
AR Invoicing
IPSAS
Electric Ireland (Customer)
External
Power Purchase Ag.
Magma/ EDI/ File Transfer Process
New Commercial System – AR Commercial
*Elemos
Out of Scope
BNM UK
Navision
3rd Party Logistical
Production
From/To Customer
UK/Int.
Orders
Invoice
Sutton OIl
Codas
From/To Customer
Orders
Invoice
Retail - FuelsTo Financial & Sales Reporting
Retail - Hort
Blade
Ente
rpri
se
Re
po
rto
ng
Magma/ EDI/ File Transfer Process
TBD
Feeder Systems
BNM Wide
HCM
EDI Orders
Manual Orders
CustStmnt/
Dunning
AR Payments
AR Manual Invoice
Cash
EDI Remit
AR EDI
Invoice EDI Ack Order Mgt.
OracleNavision
Codas
A Anua PTP Procure to Pay
F Feedstock HCMHuman Capital Management
p Powergen OTC Order to Cash
G Group PTM Purchase to Make
RRResourceRecovery
RE – F Retail Fuels
RE – H RetailHorticulture
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Applications Footprint 2013
The table to the left depicts the various IT applications currently in use across the organisation, outlining the different business units in which they are used.
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Applications Footprint May 2017PROCESS Fuels Horticulture Biomass Feedstock AES / Resource Recovery
PowerGen Group Other
(UK) (WM)Inventory & ManufacturingFG/RM/Stores Inventory Management O O NAVIS SAGE O MAX PowerM OBIEE/BIOperations Planning TXTMRP TXTManufacturing O O NAVIS IPSAS IPSAS DISC
Purchase To PayPurchase Ordering O O NAVIS SAGE O O O O O OBIEE/BIReceiving / Raw Material Inventory O O NAVIS SAGE O O O O O OBIEE/BIInvoice Verification O O NAVIS SAGE O O O O O OBIEE/BIPayment Processing O O NAVIS SAGE O O O O O OBIEE/BIAccounts Payable O O NAVIS SAGE O O O O O OBIEE/BISupplier Master Data Management O O NAVIS SAGE O O O O O OBIEE/BIEmployee Expenses O O NAVIS SAGE O O O O O OBIEE/BI
Order To CashEDI Transmission & Translation O/Gentran O/Gentran EDI MAX O/GentranOrder Processing O O NAVIS SAGE OOrder Shipping - Logistics O O O WEB O
Invoice Generation O O NAVIS SAGE O O O ELEM ROUTE O O LIMS OBIEE/BI
Accounts Receivable O O NAVIS SAGE O O O ROUTE O O LIMS OBIEE/BI
Cash Management O O NAVIS SAGE O O O ROUTE O O OBIEE/BIOrder Tracking O O O WEB
Pallet Tracking PALLET
Customer Master data management O O O O O O ELEM ROUTE O OBIEE/BIPOD Storage & Retrieval O
Payroll O O Bur SAGE O O O TMS O O TMS OBIEE/BIHR O O O O O O O OBIEE/BI
Record to ReportFixed Assets O O O SAGE O O O O O OBIEE/BIGeneral Ledger O O O SAGE O O O O O OBIEE/BI
Asset Management MAXAsset
Minder PowerM
Operational Reports Automsoft
ProcurementContract and Catalogue management O O SAGE O O O O O OBIEE/BI
ReportingSales & Financial Reporting O O NAVIS SAGE O O O ELEM O O OBIEEOther - DB Forms etc O O SAGE
CRMContact/Management
O O
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Finance Model
• Focus on developing Finance function with functional expertise
•Positions Finance at the heart of business with flexibility to meet evolving needs
•Business Partners valued as trusted advisors to the business for their knowledge and ability to provided targeted analysis
• Specialist technical teams recognised for their deep skills
•Transaction Processing providing efficient processes standardised with strong controls
FinancialLeadership Team
Balancing the roles of steward, strategist, operator and catalyst
Finance Shared Services
Consolidated
centres of
excellence
pooling skills in
areas such as:
Treasury
Procurement
Tax
Group Finance (and CoEs)
Responsible for:
• Setting accounting policy
• Setting planning and forecasting framework
• Supporting finance strategy setting and execution
• Setting and embedding controls framework
• Analysis of consolidated results.
Business Unit Finance Partners
BU Finance Partners providing
decision support and financial
analysis to BUs.
BU
Fin
ance
Par
tner
s
Risk
Finance Transaction Processing & Reporting/Business Intelligence
Future Finance Operating Model
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Finance Model
• Focus on developing Finance function with functional expertise
•Positions Finance at the heart of business with flexibility to meet evolving needs
•Business Partners valued as trusted advisors to the business for their knowledge and ability to provided targeted analysis
• Specialist technical teams recognised for their deep skills
•Transaction Processing providing efficient processes standardised with strong controls
FinancialLeadership Team
Balancing the roles of steward, strategist, operator and catalyst
Finance Shared Services
Consolidated
centres of
excellence
pooling skills in
areas such as:
Treasury
Procurement
Tax
Group Finance (and CoEs)
Responsible for:
• Setting accounting policy
• Setting planning and forecasting framework
• Supporting finance strategy setting and execution
• Setting and embedding controls framework
• Analysis of consolidated results.
Business Unit Finance Partners
BU Finance Partners providing
decision support and financial
analysis to BUs.
BU
Fin
ance
Par
tner
s
Risk
Finance Transaction Processing & Reporting/Business Intelligence
Future Finance Operating Model
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Application/ Design Principles
Generic – All Process Areas
• Oracle ‘Out of the Box’ is the basis for Process Design
• Oracle eBS is primary system for all Finance related Process areas and will integrate with a small number of operational support systems in downstream BUs
• Designed Processes and Policies to be Standardised, Simplified and Automated across BnM
• Controls and Security to be built within Process and System Design
• Duplication of Finance Activity within/ across Process and Business Units to be eliminated with data entry occurring only once
• Single Chart of Accounts
• Workflow Approval/ Resolution Process maximised
• Maximise use of electronic communication methods
• Standard reporting for all process areasCopyright David Fox and Bord na Mona. Not for copying or distribution.
Application/ Design Principles
Record to Report
• Single Chart of Accounts aligned with Reporting requirements
• Integrated Single Month End Timetable across the business
• Day 5 Month End Close, including Consolidation & Reporting
• Standard Management Report Pack
• Automated sub ledger, Bank & GL reconciliations
• Maximise system automated journal entries (auto reversing, recurring)
• Automate management allocations
• Automate intercompany end to end processes
• One integrated Fixed Asset process across the companyCopyright David Fox and Bord na Mona. Not for copying or distribution.
Application/ Design Principles
Reporting
• One Business Intelligence (BI) tool to be used – enables consistent performance measurement and metrics usage across the Group
• Common Data Architecture & Governance within/ across systems to facilitate reporting accuracy
• Right information, at right level of detail, at right time
• KPI’s, Dashboards & Reports to be clean and simple to ensure underlying message conveyed
• Dynamic reporting to meet end use analytical needs
• Eliminate reliance on Excel for critical reportsCopyright David Fox and Bord na Mona. Not for copying or
distribution.
Reporting ‘Architecture’ 2013
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Conceptual Target Reporting Architecture
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Business Intelligence Competency Centre
• To avoid duplication of effort and to reinforce the concept of ‘one version of the truth’ a centralised BICC was established.
• This was also necessary as (it was realised that) ongoing deep understanding of the data and data structures and the BI tools would be required
• Key Activities:• Develop and maintain BnM reports catalogue available to all BUs
• Support Finance Business Partners in developing adhoc reports
• Support BUs to achieve self service reporting
• Develop BI system, reporting dashboards and align with BnM strategy
• Support BUs with annual and 5 year plans
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Shared Service Lessons Learned
Title Lesson Learned Associated Actions on the FSS project
Stakeholder Engagement Proactive engagement between the FSS and the shared service customers is required at all employee levels throughout the project lifecycle. Don’t let this be something that is “done to you.” Working with the change management function is key to this.
• Communications Approach and Plan - provide key details on how we will engage with the business units throughout the project.
• Business Coordinators - Business Coordinators identified to liaise with the Change Manager/ Deployment Lead to exchange key information relating to the project.
Change Impact Assessment Important that a formal change impact assessment is carried out so that all levels of the business can understand and plan for (a) input required during project design and testing (b) the immediate impact of the shared service go-live on business operations and (c) the impact of the bedding in period that will be required before being able to revert to
“business as usual”
• High level change impact assessments completed• Detailed impact assessments carried out to enable a change action plan to be
developed
Feedback Loop to Project Need to ensure that the business are providing feedback to the project on their readiness for go-live as well as risks / issues from their perspective. There also needs to be a reporting loop during the stabilisation phase.
• Business Readiness plan and approach developed• Deployment Lead role established for each BUto enable feedback to be collated and
actioned by the project team
Standardised Processes Willingness to move to standardised processes is key to long term success for both business user and the shared service. Short-term pain here is worth the effort.
• Standardised process design was a fundamental feature of the process design work and also in the functional designs
• The end user training plan is designed to ensure these standardised processes are embedded and communicated to the BU’s
Data Quality Business users have responsibility for the quality of the data that is migrated from the old systems to the new consolidated system. Important that this is understood and that necessary actions are taken to test and cleanse the data.
• The role of the Data Migration lead was key working with the business units as a key liaison, ensuring all data to be transitioned is of the required quality.
• Major issues emerged in the quality of supplier data and a detailed plan to remedy this was executed
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Title Lesson Learned Associated Actions on the FSS project
Co-location: Within Bord na Móna the business and the project team were initially not co-located. Therefore all of the above items require more conscious effort and formalised documentation. Otherwise there is the ever-present risk that one side “loses sight” of the other.
This risk is mitigated through the delivery of:• Communication plan and Deployment Lead role activities will ensure increased
visibility of project in each BU• Knowledge Transfer - Knowledge transfer will ensure that no “Tacit” knowledge is
lost from the transition of finance activities to the FSS.
Leadership Business unit sponsors needed to be seen as promoting and championing the initiative and highlighting the benefits it will bring to their unit.
Engaging leadership is an important feature in the Communications Approach and Plan outlined. Ask back to the business was :-• Take a proactive approach in communicating with their teams• Promoting the FSS as frequently as possible • Encouraging teams to engage with the project• Feedback to project team on issues raised/ ways to improve interactions between
the teams • Reinforce standardisation and benefits constantly
Common Expectations Important that both the shared service and the business units have a common understanding of what will be operationally delivered by the shared service and, in turn, what the shared service requires of the business units.
Service Partnership Agreements(SPA) played a critical role, highlighting the requirements both the FSS and the business units have on each other.
Shared Service Lessons Learned
Copyright David Fox and Bord na Mona. Not for copying or distribution.
The Good News
• Apart from a three-month slippage of one phase, the overall programme was delivered on time and on budget
• Design principles were largely delivered
• After initial push-back, resistance proved futile and BU management and staff rowed in behind the programme
• Business case benefits slow to be realised but are happening with a significant time lag
• Better transparency of operations and financial performance had informed many tactical and strategic business decisions, especially in 2017.
• Business and IT teams have time to breathe after a hectic 3.5 years !
Copyright David Fox and Bord na Mona. Not for copying or distribution.
The not-so-good news• Business Unit support was taken for granted.
• Ongoing support costs, especially manpower, was significantly underestimated. The Cost of Ownership was, and is likely to remain, much higher than anticipated
• Very difficult to recruit/retain key technical staff on public sector salaries
• Not enough effort went into communications. You cannot over-communicate a programme of this scale.
• Negligible support from product vendor
• In general quality of data was worse, in some cases a lot worse, than expected• There were significant inconsistencies in data held in different systems• Gaps in data had habitually been compensated by local knowledge and/or spreadsheet
workarounds created to compensate
• Some out-of-the-box processes of the ERP solution complex and cumbersome
• BI proved to be very unforgiving of data quality gaps
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Concluding Remarks• Put major effort into upfront planning. Leave nothing to chance or open to
interpretation. Fail to plan, plan to fail applies.• Design principles, programme governance, roles and responsibilities defined at the outset and
stick to them. • Governance at all levels is painful and essential. Committed programme sponsor, professional
programme management, programme deliverables built in to management objectives • Huge effort into RACI and RICEFW definitions upfront and built into contracts. This was a
living, breathing essential support to the programme team because …….• The Systems Integrator is not your friend
• ‘Out of the Box’ was the key mantra espoused by all from CEO down• One set of target processes for all BUs. No special cases.
• Any deviations from this had to be approved by Steering and alterations funded outside the project budget only a handful became necessary surprisingly !
• Communicate, communicate , communicate !!!• Data can kill you• BI is the killer app in ERP. It can be done. It’s not easy. It’s complex and painful.Copyright David Fox and Bord na Mona. Not for copying or
distribution.
Bord na MonaCentral Support Service
Phase 1
IT HR
Facilities FSSC
Copyright David Fox and Bord na Mona. Not for copying or distribution.
• I need help
• Can’t log into Oracle
• Light bulb is not working
• I didn’t get my expense
• I need to Know
• How Do I
• Am I entitled to
• What’s the procedure for
Central Support Service
Schedule a task – Review
Daily, Weekly, Monthly
Daily checks
Schedule Maintenance
Co-ordinate & link multiple activities
IT Support
HR
FSS
Facilities
Copyright David Fox and Bord na Mona. Not for copying or distribution.
Central Support Service ModelExternal Sources
One Phone Number
Service Desk
Application
Knowledgbase/FAQ Log a Call
2nd
Level Support
1st Level Support
3rd
Level Support
Customer can Query
FAQ/Knowledgebase
Interaction between
Customer and Support
Cu
sto
mer
Qu
ery
O
wn
Calls
Interaction between
Custom
er and Service Desk
Analyst
Or log a call
Resolved
Submit to Service Desk ApplicationSubmit to the Service Desk Application
Assign to Queue
Third Party (Version 1)
Vendor (Oracle)
Central Support System
Copyright David Fox and Bord na Mona. Not for copying or distribution.
FSS Business Case Benefits
Focus on Core Business – Business unit management freed up to focus on market and customer activities
Scalability – Organic growth and acquisitions or disinvestments will be more easily incorporated
Greater leverage of finance resources
Flexibility/quickness to respond to market changes
Improvement in levels of investment in working capital
Ease of implementing new systems and processes
Ability to make ‘value add’ IT investments
Basis for on-going process optimisation and further evolution of the operating model
OperationalImproved data quality, transparency and
speed of dissemination of information
Standardised finance processes & systems
Improved control environment & embedded controls in Oracle leading to a systematic approach to internal controls
Enhanced reputation with suppliers /customers
Better working environment for staff
Up-skilling and development of employees
Ease of succession planning and increased opportunities within finance organisation
Improved communications, teamwork and strengthens cross-functional co-operation
Service Quality
People
Copyright David Fox and Bord na Mona. Not for copying or distribution.