Halliburton Tax Department Process Improvement Efforts June 29, 2011.
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Transcript of Halliburton Tax Department Process Improvement Efforts June 29, 2011.
Halliburton Tax Department
Process Improvement Efforts
June 29, 2011
2FOR INTERNAL USE ONLY
Team Report-outs
TaxSystems
DataMgt.
Tax Acctg. ...
OpportunityCategory
LikelySolution
List OfOpportunities
• Initial view of opportunities• Opportunities not quantified• Will require input from Team leads
• Highly Subjective
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LikelySolution Audit Compliance DMG FTC OneSOurce Planning Tax Acctg Grand Total %OneSOurce 12 6 10 12 40 35%Process 6 2 3 8 5 24 21%Talisman 1 9 1 1 12 10%Tool 3 4 4 11 10%Source Data - FA 5 1 4 10 9%Role 1 1 2 4 3%Training 1 3 4 3%CorpTax 2 2 2%Sharepoint 2 2 2%Communication 1 1 2 2%Documetation 2 2 2%Access 1 1 1%SAP 1 1 1%Grand Total 13 27 18 5 11 13 28 115 100%
Opportunity CategoryAudit Compliance DMG FTC OneSOurce Planning Tax Acctg Grand Total %Auto 1 11 8 1 3 9 33 29%Info 2 3 7 3 2 6 23 20%PI 4 6 1 1 1 6 2 21 18%Data 2 5 1 2 2 2 5 19 17%P&T 4 1 1 1 3 5 15 13%F&A 2 1 1 4 3%Grand Total 13 27 18 5 11 13 28 115 100%
A Quick Look At The Opportunities …
Of the approximately 115 opportunities identified in the team presentations, the vast majority (80+%) fall into 4 categories: Automation, Information, Process Improvement and Data.
… of those opportunities, the solutions tend to cluster around a few areas.
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Looking at the intersection between the type of opportunity (e.g. automation) and the expected solution (e.g. OneSource) we see pockets of commonality:
… while this information is not conclusive, it provides a “heat-map” view of where we think opportunities exist, and where we may want to focus our efforts. Equally important – where we may NOT want to focus our efforts.
A Quick Look At The Opportunities …
Opportunity CategoryAccessCommuni
cationDocumet
ation Process RoleSource
Data - FA Tool Training OneSOurce Talisman Sharepnt SAP CorpTax Grand Total
Auto 1 3 24 4 1 33
Info 1 5 3 7 6 1 23
PI 12 1 2 3 1 1 1 21
Data 1 1 1 2 5 3 5 1 19
P&T 1 5 3 4 1 1 15
F&A 4 4
Grand Total 1 2 2 24 4 10 11 4 40 12 2 1 2 115
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Process Improvement Program vs Effort
Strategic initiative Multi-year effort Focused on culture change &
results Extensive training:
– Black Belts
– Green Belts
– Master Black Belts
Short-term, tactical effort Focused on specific opportunities Upgrade organization’s skills Minimal training:
– Project Sponsors
– Project Leads
ProgramProgram EffortEffort
As Tax embarks on its Process Improvement Efforts over the next several months it can learn form Process Improvement Programs and consider Best Practices.
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Goals / Expectations – Typical PI Program
Culture Change•Fact-based decisions•Customer-focused organization•Effective, consistent approach to problem solving
Results:•Productivity (typically 20-30% improvement)•Cost savings•Quality improvement (fewer defects, risk mitigation)
Effective Team working:•Identifying the right team members•Effectively engaging team members to solve the problem
Upgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific Problems
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Process Improvement Roles
Project Sponsor(Champion)
Project Leader(Belt)
Team MembersIndividuals with specific skills/knowledge required to successfully complete the project.
Leads day-to-day project activities.Responsible for the success of the projectEstablishes a team and manages the team’s activities.
Identifies and qualifies the project opportunity.Assigns the project to a project lead.Monitors progress, breaks down barriers.
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Yellow-Belt Training
Session 1: Process thinking Lean Principals Project Chartering (Identification,
Scoping, Chartering)
Session 2: SIPOC
– Cause & Effect Matrix (C&E) 8 Wastes
– Rolled-Throughput Yield (RTY)
- Should Consider For Tax- Should Consider For Tax - Should Consider For Tax- Should Consider For Tax
Session 3: Value Stream Mapping (VSM)
- Failure Mode Effect Analysis (FMEA)
- Project Management
Session 4: Process Controls
- Transition to Process Owner
- Leveragability
- Update living documents (FMEA, SOPs, Control Docs, etc.)
- Project Closeout
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The Goal: Breakthrough
Time
De
fect
s a
nd U
nn
ece
ssar
y S
tep
s ProcessBreakthrough
Current State
Future State
Improvement Period
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APPENDIX
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Process Improvement Training
Role Training PurposeTypical
Application
Awareness 4 Hours Basic Understanding Everyone
White Belt 1 Day Support Projects as Team Member Varies
Yellow Belt 2 Days Leads Small Projects Varies
Green Belt 10 Days Leads Medium Sized Projects – supports BB Projects
10% - All Salaried Employees
Black Belt 20 Days Large and/or complex ProjectsMentors GBs & YBs 1%-3% of Staff
Master Black Belt 30 Days Very large/Complex projectsTrains GBs, BBs, etc. Very few
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June 14th Meeting
Good energy & involvement Lot of activity Some bright spots
Poor execution Little progress Inconsistent approach Lots of platitudes … few actual
commitments
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Examples of Categories of Opportunities Auto Examples:
– Automate Transfer of Data Between Compliance Software and Excel– Manual Tax Adjustment (data)– Manual Tax Adjustment (process) Automation– Forms Automation
Info Examples:– Begin to mitigate Fin 48 issues arising from lack of documentation– Incorporate use of provision reporting checklists to ensure appropriate inter- and intra-period classification of balances
PI Examples:– Partner with internal audit to ensure planning strategies are implemented, executed, and maintained in accordance with the
plan– Develop Process to Release 3rd Party WHT from A/R
Data Examples:– Develop database of historic intercompany issues and their resolution – reduce duplication of effort– Topside Entries– Integration of Hyperion Planning data directly into provision processes on a real-time basis
P&T Examples:– Implement a rotation/training process to develop expertise– Completion and rollout of iLearn courses followed by continuous update – Assignment of support responsibility to Tracy Howell to assist F&A field personnel and RTM’s
F&A Examples:– Create Separate “Capital Accounts” for Partnership Rptg. – Flexible data feeds & adjustment automation enable working with F&A to improve upstream data feeds – Alignment of tax with the finance organization (data not aligned)
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Tax Process Improvement – Initial Steps
Rough analysis of presentations Initial discussion on the approach
– Identify & fix problems
– Improve staff skills? Next Steps
– Dir. Reports ID top 3-4 opportunities
– Rough quantification & ID lead
Report-out from dir. Reports – top opportunities
JA discuss what good project definition looks like
– Problem Statement– Quantification– Entitlement– Metrics– Customers– Defect definition
Next Steps– Dir. Rpts. Refine & bring back to
next staff meeting
June 29th Staff Meeting July 13th Staff Meeting
Get on the same page:•See the data from June 14th meeting•Think about the objective
Know thy limitations:•Learn a little about what a good project definition looks like - &
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Examples of Opportunities from June 14th
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What Good Project Definition Looks Like
During 200_ HAL processed ___ Inter/Intra period balances. For Tax to properly process that may balances requires allocation of __ man-hours of effort.
Problem Statement:Problem Statement:
Identify & implement a solution that will reduce the amount of effort required by Tax from __ man-hours of effort to approximately__ man-hours of effort – without compromising the quality of the results produced by Tax. This goal should be achieved by mm/dd/yy.
Project Objective:Project Objective:
Hours of effort to process an Inter/Intra period balance.
Primary Metric:Primary Metric:
1) Any Inter/Intra period balance that requires more than ___ hours to properly categorize,
2) Any inter/intra period balance that was categorized incorrectly.
Defect Definition:Defect Definition:
1) Get clear on the problem• Do we have errors (defects) in how we
categorize Inter/Intra period balances, OR• Are we trying to save time & get more
efficient?
2) What is the Objective of the project”• How will the Project leader know when
they are done? Successful?• Are expectations reasonable
(entitlement)?
3) How do you measure this process?
4) What is considered a defect for this process?
Example: “Incorporate use of provision reporting checklists to ensure appropriate inter- and intra-period classification of balances “
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Approach
Look at opportunities from June14th
PI Objective:– Act on opportunities– Staff skills?
DRs discuss top opportunities
Who will lead? Cross functional? Overlaps? Assign top few to staff
July 27th
DRs report out on refined projects– Problem– Objective– Metrics– VOC Discuss SIPOC / C&E
Agenda: Agenda: Agenda:
Purpose: Purpose: Purpose: All get on the same page: See data from June 14th Think about objective:
– Fix problems– Staff skills?
ID top opportunities Know thy limitations:
– Projects not well defined– Why staff needs help
Staff Meeting Staff Meeting Staff Meeting
Finalize opportunities Agree on training / next
steps
June 29th
July 13th
DR
s ID
top
opp
ortu
nitie
s
JA C
oach
es P
roje
ct L
eads