Transformation Journey End-2-End Optimisation€¦ · operating model . Parallel Run . Template...
Transcript of Transformation Journey End-2-End Optimisation€¦ · operating model . Parallel Run . Template...
22nd North American SSON – Shared Services & Outsourcing Week 22nd March 2018 Daniel Willoughby – Director, Strategic Initiatives
Transformation Journey End-2-End Optimisation
Daniel Willoughby (ACMA, CGMA)
1. Efficiency or Effectiveness - What is the key driver in Process Transformation?
2. What are the Key Success Factors & Challenges in aligning with the business to help you achieve success?
3. Lessons Learnt in process transformation to help your journey be more efficient and effective
Who are we?
Coca-Cola European Partners
““Coca-Cola” and Lippincot Ribbon is a registered trademark of the Coca-Cola Company”
We work in partnership with The Coca-Cola Company
B2B Customer focus
13 countries
25,000 employees
Bottling and distribution, customer marketing, market execution and innovation
130,600 employees
200 countries worldwide
Consumer focus
Brand ownership, product development and innovation; brand marketing and advertising
2
7
Why Transform?
8
Our Process Transformation Journey
2011/12
2007/9
2003/6
2011
2012/14
Finance Optimization Global service delivery model
set up, by migrating
processes to Tampa and Capgemini
New Finance Vision Post
transaction, to position the longer
term objectives of
Finance
Finance Realignment
Functionalizing for the post transaction
and post Tampa
environment OCM Focus
2015/16
Finance Transition
Set-up of a new Finance SSC in Sofia, Bulgaria -
focusing in-country finance teams away from transactional
responsibility PPM – Business
Partnering & RGM Focus and implementation of
BPC Cash focus – Project
Mint
PPM Transformation
PPM Transformation
utilizing CoE and enhancing
insight and business
partnering
SSC 2.0 SSC2.0-
leverage SSC to further
improve effectiveness and efficiency
2014/15
Tampa SSC creation Migrated our then
North American
BUs to a SSC
2016
2020
CCEP Integration – Part 1
Post merger changes to finance structure:
transferring US based Corporate activities to Europe; optimising the
SSC in Sofia for Corporate and Master
Data activities; centralising Germany
Business Centre activities to the Sofia SSC
CCE
US
Tran
sact
ion
CCEP
Mer
ger
Technical Finance & Governance
activities
High level of business proximity required
Low level of business proximity required
Business Performance
Reporting and Analytical Activities
Transactional & Compliance
activities
Local Planning & Performance Management
activities
Central & consolidation
Planning & Performance Management
activities
Centre of Expertise
Shared Services Centre
BU & Supply Chain
Group PPM
Global Finance
Functions
CCEP Finance Delivery Model
Finance was assessed against ‘world class’ and ‘peer group’ for both ‘efficiency’ and ‘effectiveness’ Finance has improved both its efficiency and effectiveness. Finance is operating at ‘world class’ levels of effectiveness, but is short of ‘world class’ in efficiency Opportunities still exist to:
Improve the efficiency of FPA (gap to ‘world class’ and ‘peer group’)
Improve & standardize the effectiveness of processes transferred to SSC as a ‘lift and shift’
We Continually Improve as a Finance Function - Better Never Stops!
Highly Confidential – Not For Distribution
Customer To Cash (CTC)
End-To-End Transformation
Four years of successful Sofia growth that we are proud of
GEOGRAPHY SCOPE
Core transactional processing Tax Compliance Centre of Expertise Procurement Treasury
Iceland
GB
France
Spain Portugal
Germany
Bulgaria
NL
LUX
BE
With the formation of CCEP & Sofia’s 5th anniversary, we need to ask ourselves what’s next?
OUR PURPOSE To delight customers and
consumers with great beverages and service, creating shared and
sustainable value
Listening and
caring xxxxxxxxxxxxxxxx
xxxxx
Passion for growth
Empowered to win
together
Execute with
speed and agility
Focus on customers
and frontline
What does this mean for the SSC?
Focus on customers and
frontline We do everything we can to help the front-line team serve our customers and grow
our business
• Support our commercial teams in the best way possible
• Satisfy our customers at every touch point
• Increased efficiency in our ways of working
To meet these needs and prepare for the next wave of growth, the SSC will transition from ‘process towers’ to ‘service lines’
Service line: A true end to end process that is organised in a way that reflects how we interact with our customers, vendors and employees.
What is Customer-to-Cash
Sales and Marketing
Finance
Customer Logistics
Sales Execution
Customer and Credit
Setup
Order Manage-
ment
Delivery to
Customer
AR and
Invoicing
Collections and
Disputes Reporting Customer
care Commercial
Strategy Market
Products CMA
The CTC service line will allow the SSC to further improve our already high level of performance
Enhance customer service
Better support our BU
commercial teams
Improve connections
with Business Units and
enable growth
CTC Director
Tamsin Hoborough
Service Management
CTC
Drives process harmonisation
and improvement across BUs
Collections
Disputes Pricing MDM
CMA
BPs
Capgemini
Route Settlement
Collections Disputes Pricing MDM
CMA
Capgemini
Customer MDM
Route Settlement
Collections Disputes Pricing MDM
Customer MDM
BPs
Capgemini
Route Settlement
CMA
Credit Management
Enterprise MD
Capgemini
Cross-BU-MD
Cash App. & Billing
Reporting
GB
Nordics
Germany
New Product Introduction Experts
France
Benelux
B2B2C
Cross-BU Services
Associate Director
GB Associate Director
France Associate Director
Germany Associate Director
Benelux Associate Director
Nordics Associate Director
New Product Introduction
Senior Manager
Collections
Disputes
Pricing MDM
CMA
BPs
Capgemini
Collections
R.S. & Disputes
Pricing MDM
CMA
BPs
Capgemini
OTC OTC OTC OTC OTC
Record-to- Report
Purchase-to-Pay
Customer Marketing
Agreements
Master Data Management Order-to-Cash
Finance Shared Service Centre
CRM & Program
BPs
What will CTC look like?
What does this mean in reality?
New organisational
structure Aligned
objectives with the BUs New ways of
working
WHAT WILL IT MEAN FOR THE BUSINESS UNITS?
WHAT WILL IT MEAN FOR THE SSC?
Dedicated BU teams in Sofia
One team to connect the dots
Feeling supported by the SSC
Joint objectives
Clear contact points
Improved ways of working and communication flow
Permission to upskill non Finance employees
Commercial training for CTC finance staff
Commitment to engagement sessions
One team attitude
CTC representation at BU leadership meetings
Joint objectives and commitment
HOW WILL THE SSC WORK TOGETHER?
Joint objectives
Improved ways of working and communication flow
One team to connect the dots
A seat at the table with BUs
More integral part of CCEP
Career opportunities
Pride in our services
21
Centre of Expertise (CoE)
End-2-End Transformation
Commercial Reporting & Analysis Centre of Expertise - Objectives
Reports&
Analysis
FPA TOM
Focus Activities I. Standardise and simplify reporting content and production methods II. Develop a framework of core and local KPIs, as well as the associated reporting
governance to support the reduction of MI reporting III. Implement new governance structures and changes to reporting
I. Develop design principles for the new service model along with activity splits between CoE and Business Finance
II. Develop end state options including location, organisation structure, process hand offs
III. Develop roadmap and high level implementation plan with detailed business case
Tech &
Data
I. Assess the current system and technology landscape, with comparison made against leading practices
II. Develop recommendations for optimising existing systems and indicate tools that can support the CoE service delivery
III. Develop a data governance framework and roadmap for aligning data and technology to the new operating model
““Coca-Cola” and Lippincot Ribbon is a registered trademark of the Coca-Cola Company”
Report Standardisation Journey
Define RAPID Template
Customer Interviews
BU visits
Validation Workshops
Development
Testing (including process and
performance testing
Socialisation
Training
Go live in new operating model
Parallel Run
Template Design
Socialisation
Prioritise and capture user stories
Capture in report catalogue
Create data dictionary
Design Implement
Elimination of reports
Reporting Design Principles
Visualisations
Standardisation
Tech and data
Content
Focus on value drivers and controllable elements of performance explaining progress in delivering KPIs Reporting is forward looking: purpose of reports is to determine timely interventions to get performance back on track Reporting will aid analysis, enabled further through drill down capability to understand variances
Reporting is rich in graphs, trends and visualisations and is exceptions or issues based: Focus on the issues requiring action or intervention through impactful presentation
Visualisation allows end-users to answer own questions through data discovery tools
Maximise standardisation of reporting (content, look and feel) across CCE whilst observing needs for local BU/Country view (80:20 rule)
Increase consistency across BUs Reduce the level of ad-hoc queries
Minimise the use of Excel and Access databases Maximise automation: Minimise effort spent collating and manipulating data and producing reports through automation as far as possible
Provide a dynamic and flexible report to enable drill down to required views, granularity, periods etc. Use of data discovery tools to allow end-users to answer their own questions to some extent
Business partnering / Analysis
Reporting allows for follow up: reports are a key part of the operational reviews in the business and actions are assigned and progress reviewed at each meeting. Enables business partnering: Finance can better support operations and lead conversations around options
Reports are viewed as ‘single version of the truth’ Insightful commentary complements use of graphs and explains what is needed to get back on track, not just past performance
Governance Need for robust governance structure underpinning standard reports which will assess needs based on frequent ad-hoc
requests and review of change requests New report requests will be assessed against design principles and a cost-benefit analysis
Approach For Socialisation
Key System and Data Challenges
■ Multiple reporting systems held in different places, with different user interfaces, uses, and performance characteristics
■ Inability to easily join data which is held across multiple database platforms (e.g. Plan / Forecast versus Actuals)
■ Excel is often the tool of choice for report building despite the availability of enterprise standard tools
Data Maint. and ease of
use
■ Lack of consistency in data hierarchies, definitions and business rules across Enterprise and Business Units
■ Over reliance on Excel and Access solutions for addressing business demand for information
■ High risk of data quality and integrity issues arising out of uncontrolled data manipulation in Excel
Data Consistency
& Quality
■ Excessive cost incurred through over-licensing of expensive data access applications (mobile and BI platforms)
■ Huge volumes of data being regularly extracted for local manipulation causes performance issues elsewhere
■ No governance over the generation of new reports and use of definitions
Efficiency and
Governance
■ Proliferation of Excel for most reporting ■ Duplication of effort through locally stored data, e.g. the use of Access ■ The need to link into KAIP and other related projects to ensure alignment
Manual reporting
Advanced analytics portal – landing page
Weekly actuals – Standard Report – Current Week Volume, PTD, QTD & YTD
Daily Sales: Enhanced Report, Year to Date
Four Steps to Arrive at the TOM
STEP 1: We defined the design principles that underpin the target operating model
■ Business Unit Finance, including supply chain and manufacturing
■ CoE (scope & structure) ■ Group Finance ■ SSC
Centre of Expertise Shared Service Centre BU Finance Group Finance
■ Reiterate the mission and purpose of business finance (locally and at centre)
■ Agree criteria to apply for sizing and activities split
■ Distinguish between and compare/contrast single market BU’s and multi-market BU’s
■ Agree desired spans of control and sizing
… ensure clear focus of accountabilities and responsibility
... align to strategy
… commercially aligned for improved business support
… facilitate talent development
… with activity in the optimal location
… increase standardisation and enhance controls
STEP 2: We defined service delivery model STEP 3: Agree objective criteria to sizing and activities splits
STEP 4: Create organisation structure, apply sizing criteria, then grade roles*
Finance Activity Splits
Business Unit & Group Finance*
COE*
• General accounting • Fixed assets • Credit/ Collections • Customer billing • Cash management • Accounts receivable • Accounts payable • Travel expense
FP&A • Standard Reporting: A v B v F • Historical / trend analytics • Investor relations • First pass analysis on E&Y q pack • Data consolidation • MMF consolidation and reporting • All FTE reporting & ABP presentations • OCM/ OPEX/ Telephony reports • First pass report analysis /commentary • Standard Field Sales reporting
FP&A • Business partnering with GM’s
including OCM/ OPEX • LRP / ABP creation • Preparation of LRP / ABP / MMF
and application of governance • Profitability analysis after first
pass analysis by CoE • Identify corrective actions • Gap closure • Month-end closing • Manage field sales costs / OPEX • Sensitivity analysis and scenario
planning
SSC*
Channels & Functions • Budget management, investment
monitoring and decision support • Value management of commercials that
drive CAPEX • Translating business events into forecasts • What-if analysis / scenario planning • Strategic initiatives support, ABP inputs • Gather forecast assumptions • Propose actions to close gaps • Support customer negotiation / plans • Support audit claims • KAIP & S&OP support • Support TME
Supply Chain: • LRP for site • SOX Compliance
(Champion) • Weekly forecast / MMF /
MBR / QBR (prepare / sign off)
• Investment appraisal • Responsible for local P&L
Scalable through consolidation and
remote/central processing
Supply chain reporting: • Cost OPEX/close reports • Maintenance and production
reporting • Yield Analytics • Labour analytics Marketing: • Forecast vs. budget
reporting • Reoccurring KO reporting • Brand profitability (80%) • Profitability by other
dimensions • Marketing credits • Reporting and analysis of
trade marketing
RGM: • Generation of assumptions • Commentary and actions • Strategic initiatives (customer
terms), Route to market / ENERGISE
• Price increase and mix decisions (brand pack price occasion (BPPO))
• Value chains • LRP & ABP creation Marketing: • Franchisor business partnering • Interacting with EUG business
partner • New product profitability analysis • New product development (NPD) • Decision making on investment in
marketing • Brand profitability • Commentary and action driven gap
analysis • Input into forecasting • KO system economics and insights Value management/Strategic projects: • Manage the consistency and rigour
of transformation projects in the BU • Finance Cross CCE projects,
interfacing with the BTO • BU specific projects, interfacing with
local PMO • Business case validation + KBI
reporting of actuals
Channels: • Actuals, volume reporting (daily
sales) • Performance reporting • Mix analysis and first pass
analysis • Channel / customer profitability • Historical data gathering, Trend
analytics RGM: • Pack / channel reporting,
profitability • Evaluation reports • RGM dashboard / mix
calculations
Analysis, challenge and insight to drive robust, practical commercial decision making close to the market
Standardised, timely, accurate management reporting and finance process governance in a cost efficient location
Transaction processing excellence in a cost efficient location
Source of competitive advantage:
Performance Evaluation Score Keeping Service Orientation
Business Partner / Team member
Demand Management & Governance
1
Customers of Finance, PPM teams, CFOs
Governance manager
FP&A Sales & Margin Supply Chain
PPM Steering Committee
- Quarterly
‘Client-facing agents’ OR report owner
2a 2b
Demand raised BU user identifies need for new information. Local PPM engage in dialogue with the relevant report owner (CoE analyst) OR client facing agent (CoE manager for the BU)
Request Client facing agent reviews and for: a. Minor requests: executed immediately after
review with governance & EIM managers (CoE leadership notified at management meeting)
b. Major requests referred to relevant governance forum after the CoE has fully assessed and discussed at CoE management meeting
Assess Major Requests a. Governance forum assess major requests
and CoE prioritises requests for execution. b. PPM SteerCo informed of any significant
changes to prioritisation / make decisions on contentious matters
CoE driven demand Leading practices for reporting shared across BUs by the CoE
Regular Dialogue
Minor Request
Major Request
Governance Forum - Monthly
CoE Management
Meeting - Weekly
EIM manager
5
3a
Assess Major Requests & Prioritise
BU Forum Leads & CoE Leadership
CoE Roadshows
- Quarterly
4
3b
Approve Prioritisation
Receive Demand & Log in Workflow
Head of PPM, BU CFOs, VP Strategic Initiatives, IT Leadership,
Head of CoE
Response
Reject – BU create report locally
Accept – Execution commences
Pending – SteerCo/Governance decision
1
2
3
4
5
6 Reporting Factory CoE Sofia
Reporting meetings - Bi-weekly
CCEP Reporting Requirement CCEP Reporting covered by the 3 CoEs with new requirements developed by CoE
6
CoE Germany
From Data to Insight Where does the Centre of Expertise sit?
Business issues
Outcome
Data Reporting Analytics Insights
Decision
Negative customer
engagement
Collection, storage and
integration of data related to market & CCE performance
Routine reporting of
market & CCE performance
via fixed set of business
critical metrics
Use of quant. techniques & technology to
solve pre-defined
commercial questions
Deep understanding of market / CCE
trends to generate
actionable growth reco’s
Market share loss
Pricing pressure
Commercial levers “pulled”
in order to impact CCE performance
Positive customer
engagement
Market share growth
Pricing realisation
Home Channel value,
volume sales (Nielsen)
Weekly sales and share
report
IRI promo ROI
Loss of promo ROI
during summer months
Restructure summer promo
mechanics
CCEP Business Intelligence
CoE SSC/IT BU Finance Business
35
Lessons Learned
Lessons learned
• Report automation is/can be hindered by manual processes to change source system data.
• To be successful, the team needs the ability to check data consistency & anomalies – understanding the data flows and underlying processes to generate the data (ie invoicing process).
• Data model needs to be planned upfront based on performance expectations and how the data will be used to generate the most efficient Tableau report.
• Correct business processes need to be in place to support the report output – Assumptions of having a new process going live at the same time as the report can be risky.
• Handover to the COE needs to be planned to get the COE team more involved prior to the soft launch of the reports. Soft launch should include checks against any as-is reports and also a real life test of the underlying business processes.
• Enhanced Tableau reporting capability can add value and insights which we don’t currently have. Reports should be designed with the tool in mind and should leverage the capabilities and considerations of the system.
• Socialised and agreed standard reports might not cover all needs of the existing reports (for example still requiring data extracts & analysis in a tabular format).
• In order to be able to develop and deliver fast Tableau reports, a lot of time and effort must go into having the right backend data structures and an efficiently built Tableau data source.
• There is a constant need for changes even as reports are being developed (e.g. Freestyle, Monster) so maintaining a mixture of agility/flexibility and also being able to deliver against agreed timelines is important.
Collaborative approach to
operating model design
Multi-functional working
Advisors – honest, trusted and part of
the team
Structured approach &
design principles
Deployment
methodology focusing on governance and well documented approach with strong Knowledge
capture
Key financial metrics delivered
Strong support from key stakeholders
within each business unit
Recruitment and seeding in BUs
What worked well
What we could improve
Improve co-ordination with
other CCE projects and challenges of
multiple parallel projects
Improve resource management for people involved in multiple projects
Link between reporting and
process
Importance of having current
documentation for all transactional roles within our
business
Focus on early recruitment for key resources
Challenge of developing numerous
complex, labour saving reports
What is the burning platform
Efficiency or Effectiveness
What’s In It for Me
Focus on the Customer
Break Down The Silos
End-2-End Engagement
Thank you!
““Coca-Cola” is a registered trademark of the Coca-Cola Company”
Daniel Willoughby, Director Strategic Initiatives [email protected] http://uk.linkedin.com/pub/daniel-willoughby-acma/3/605/85