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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:

Hilliary.Opseth@trintech.com (USA)+1 800 416 0075

Carol.orr@trintech.com (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