VI-16 Successfully Integrating Acquired Firms into Deltek Vision - s3.amazonaws.com€¦ · VI-16...
Transcript of VI-16 Successfully Integrating Acquired Firms into Deltek Vision - s3.amazonaws.com€¦ · VI-16...
VI-16
Successfully Integrating
Acquired Firms into Deltek Vision
Roza Kryzhanovska, Senior Consultant
Kent Bolson, VP of Financial Systems
About Hill International
With 4,500 professionals in 100 offices
worldwide, Hill provides program management,
project management, construction
management, construction claims and other
consulting services primarily to the buildings,
transportation, environmental, energy and
industrial markets.
Eighth largest construction management firm
in the United States (ENR)
About Hill International
155 Companies (Accounting Entities)
configured in Vision
55 Currencies supported
over 200 Power Users of the Vision
Accounting modules
All in a single, global financial system
– Deltek Vision
Hill’s Integration of Acquisitions
Since going public in 2007, we have integrated acquired companies into our
Vision Finance system from 14 countries (in some cases multiple companies per
country):
Australia (2)
Brazil (3)
Canada (1)
Germany (1)
Great Britain (6)
Hong Kong (2)
Malaysia (1)
Mexico (1)
Poland (1)
Singapore (1)
South Africa (3)
Spain (2)
Turkey (1)
United States (6)
We have also implemented processing
enhancements in about 10 other countries.
Our Objectives
5
The Starting Point
Project Kick-off
Process Design and Mapping
Validation and Segment Testing
Go-Live
Project Close-out
Acquisition ! ? ! ?
What would be your reaction if you heard that your company had been
acquired?
Acquisition ! ? ! ?
7
A hurricane is coming
Fear of the unknown
Fear of change
Panic
Stress
Fear of Job Loss
Devastation
Paralysis
Negative Competiveness
Adadante, F. “How to Integrate a Company You Acquire: 6 Steps" Inc., 26
Mar. 2012. Web. 15 Aug. 2016.http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html
Acquisition ! ? ! ?
8
We make it easier for people to cope with
change when we:
– Demonstrate knowledge of the system
– Have a solid plan
– Know how to identify issues
– Can provide solutions and workarounds
– Communicate clearly with staff and management
Make it easier for people to cope
with change
Efficient and successful Vision
integrationRead up on techniques
for coping with change
The Starting Point
Start Immediately
Initial Data Gathering
Project Charter and Project Plan
Integration Kick-off
©2016 Deltek, Inc. All Rights Reserved 10
Start Immediately
Rouse, T. and Frame, T. “The 10 steps to successful M&A integration"
Bain Brief, 4 Nov. 2009. Web. 15 Aug. 2016.http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx
Start Immediately
11
Three key documents:
– Initial Investigation
– Project Charter
– Project Plan
Templates
– “Easy” integration
– “Complex” integration
High-level Approach
12
Review and Data Gathering
Kick-off
Process Design, Mapping and Development
Integration Database Validation
Go-Live
Project closeout
Review and Data Gathering
Financial review
Integration interview
Document gathering
Review and Data Gathering
Vision Integration Questionnaire
Distribute immediately at the start of integration effort
Use as outline for Initial Interview
Gather Processes and Policies
Gather Data Collection Items Get high level information
from staff involved in the
acquisition process
Obtain and review information
collected during Due
Diligence
Vision Integration Questionnaire
15
Initial Interview
– Identify the Vision modules that will
be used and any system
requirements unique to this
integration
– Review existing policies, procedures
and forms to ensure that any
changes to these identified early in
the integration process
Vision Integration Questionnaire
16
Data Collection Items
– To streamline the process of integrating existing data with new systems
identify the type and amount of information required to be entered to
corporate systems:
• Lists and Reports
• General Document Samples
• Client Invoice Samples and Information
Review and Data Gathering
17
Prepare Initial Findings documentation, which will include:
– Summary of system comparison and
evaluation of various requests
– Initial evaluation, scope and issues
document
– Any requirements related to the
training and support language
Focus on anything that could
change significantly:
• Cash vs. Accrual
• Exchange Rates methodology
• Rules for Job Costing
• Statutory reporting
requirements
Project Charter and Plan
Project Charter
Project Plan
Project Charter
19
A formal Project Charter greatly increases your chances of success
Include a description of:
– Business Reason
– Expected approach
– Anticipated timeline
Choose the right executive sponsors
“What is a Project Charter?" CPD. Web. 22 Aug. 2016.http://continuingprofessionaldevelopment.org/what-is-a-project-charter/
Project Charter
20
What type of integration is this?
“Easy” integration
– New Office within an existing Company
– Processing will be done by existing staff
“Complex” integration
– New local staff must be training
– Entering a new country
– Statutory reporting from Vision
Project Charter
21
What type of integration is this?
“Hybrid” integration
– Corporate reporting only, with external statutory books
– Staged go-live
Project Charter
22
When is the cut-over date?
– Ideally, try to have go-live line up with reporting requirements (fiscal year-
end)
– If not possible, report out of Vision and legacy system and combine results
What happens from acquisition to go-live?
– Is there a need to record financial data from Vision prior to full go-live?
– Continue full processing in legacy system
– Record monthly Trial Balance as a Journal Entry in Vision
• Must reverse GL balances for some accounts with sub-ledgers at go-live
©2016 Deltek, Inc. All Rights Reserved 23
Project Plan
Bryant, S. “6 Tips for a Seamless Merger Integration" Business Finance,
29 Sep 2011. Web. 15 Aug. 2016.http://businessfinancemag.com/tax-amp-accounting/6-tips-seamless-merger-integration
©2016 Deltek, Inc. All Rights Reserved 24
Project Plan
Project Kick-off
The Project Team
The Kick-off Meeting
Review and Data Gathering
Kick-off
The Kick-off Meeting
Integration Project Teams1) Interdepartmental Team
– Sponsor (COO/CEO)
– Decision Makers (VP)
– Managers involved in day-to-day operations
2) Finance Systems Integration Team
– Sponsor (CFO)
– Project Manager
– Vision system expert
– Corporate and regional operations and finance
– Local operations and finance
Communication
between departments
is critical. There are
dependencies on
tasks that other
departments (IT, HR,
Marketing) need to
complete.
The Kick-off Meeting
Finance Integration Kick-off meeting
Present evaluation, scope and issues document and
project calendar.
Review initial project plan and make assignments
Provide introductory Vision training for Integration
Team:
– to understand Vision functionality in a nutshell,
but enough to make comparisons, evaluations
or decisions
The Kick-off Meeting
Include IT in the initial kick-off meeting
– Configure access for the Vision integration team
be made ready ahead of all-staff readiness.
– Alert IT to be ready to create a Test database and
to perform database refreshes
The Vision go-live
often depends on
IT’s readiness!
Process Design, Mapping and Custom Development
Document processes before, after and changes required
Assign Job Responsibilities
Perform custom development
Review and Data Gathering
Kick-off
Process Design, Mapping and Development
Document Processes
Current ProcessProcess after
Vision integration
Description of changes Detail of any
required Vision
configuration
Document Processes
31
Question every process that doesn’t match
Vision and your corporate process
Prioritize:
– Not all processes, systems and modules
have to be implemented at the same time
– Integrate the most critical modules first
(typically Finance)
– If integration is needed with other
modules, determine temporary
solutions/workarounds
Question everything:
• Is it a good process?
• Is it needed?
• Is it done because that’s
how it’s been done for
the last 20 years?
Document Processes
Timesheet Process
• Timesheet Frequency
• Holiday calendar
• Annual Leave days rules
• Timesheet entry/submission/review/approval
• Timesheet categories
Employee Maintenance
• Source of employee data
• Hire/Rehire/Termination Process
• Processes for changes
Benefit Accrual Process
• Benefit entitlements
• Benefit Accruals
• Benefits reporting
• Monthly accrual entry
• Benefit Adjustments
• Identify Benefit Accrual Codes
Document Processes
AP Processes
• Vendor Setup
• Voucher Entry/Modification
• Payment Processing
• Wire Transfers
• Stop Payment/Void
• EFT submissions to bank
• Voucher Modifications policies
• Define AP Liability Codes and Vendor Types
Employee Expenses
• Define Employee Expense Categories
• Employee entry/submission/review/approval
• Payment Processing
• Expense Advances
• Employee Repayments
Document Processes
Project Numbering
• Design Project numbering and mapping from current system
• Define project auto numbering
Project Maintenance
• Define processes for project setup (using CRM/Opportunity information)
• Project Closeout
Overhead Projects
• Identify Overhead, Promotional and Benefit projects
Document Processes
Overhead Allocation
• Determine overhead rate and methodologies for internal allocation
Project Reporting
• Review reports used by management
• Identify favorite reports and saved searches
• Determine cost/billing values presentation on reports
Project Budgeting
• Project Budget Process
• Project Planning
Document Processes
AR Process
• Determine AR Mapping requirements
• Receivables monitoring and Collections
Invoicing Process
• Billing Terms setup
• Design Invoicing procedures
• Gather rates for default Labor Rate table and Default Billing Terms
• Identify any custom development required for Invoice Template reports
Cash Applications Process
• Define Numbering of Cash Receipts
Document Processes
Accounting/Closing
• Revenue Generation
• Intercompany Billing
• General Ledger Budgeting
• Labor Cross-charge
• Overhead Allocation
• Bank Reconciliation
• Gains/Losses and Revaluations
• Sub-ledger reconciliations
• Financial reporting
Tax
• Required tax codes and configuration
• Regulatory and Tax filings
• Tax Analysis and Sales List reports
• Determine tax GL accounts and presentation on financial reports
Document Processes
Treasury Process
• Identify Bank Accounts / Bank Codes:
• Bank Accounts
• Petty Cash
• Credit/revolving accounts
• Recording of Interest Income/Expense
• Corporate Credit Cards
Payroll Process
• Interaction with outside payroll services
• Define Payroll Frequency
• Salary update process
• Adjust Salaried Job Costing
• Entry of payroll
• Reporting to outside payroll service
• Bonus accounting
Core Configuration
• Identify required currencies
• Define companies and/or organizations
• Develop chart of accounts and any required Account Group table(s)
• Create processing checklist documenting current monthly processes
Processing Checklist
Identify staffing to perform Vision functions and prepare processing checklist
Job Responsibilities might be different than prior to acquisition
Training
Needs
Vision
Security
Roles
Integration Database Validation
Configure test system and develop known solutions
Perform all data transfers and segment testing
Review and Data Gathering
Kick-off
Process Design, Mapping and Development
Integration Database Validation
Configure Test System
43
Deploy a copy of your current Vision system
Implement all configuration that you have identified
during process design
Import all or a sample of data to be brought into
Vision
Setup enough Projects and Billing Terms
to perform training and testing
Prepare reports and Invoice Templates
Import Templates
Import Template
Definitions tab
Data tab
Info Center Data Import
Data to be imported into Vision Info Centers:
• Clients, Client Contacts
• Employees
• Projects and Billing Terms
• Vendors and Vendor Contacts
Extractdata from existing systems
Prepare Import
files using Data
Import Templates
Validate imports of
data
End-User review and acceptance
Finalize templates
with validated
data
• Import only Active records
and records with
outstanding balances (AR,
AP, Expenses)
• Use the Data Import utility
AR Data Import
Project Invoice and Receipt history (Aged AR)
– Project Invoices
– Project Receipts
Reconciliations:
– Vision Aged AR report total to GL balance in legacy system and Vision and
to Subledger in legacy system
– Vision AR Ledger report for JTD billed/received to legacy system
Training for Segment Testing
Perform training for Integration Team participating in Segment Testing
Training is ongoing throughout the integration
– Initial integration team training
– Segment testing training
– Go-live training
– Refresher training
Segment Testing
Standard processes and reports
Custom developed applications and
interfaces
Solutions for identified issues
Segment testing is the process of testing each major application area of Vision Accounting by entering, processing and reporting on discreet populations of data.
Document Final Configuration
49
Companies and Organizations
System configuration:
– User Defined Components
– Code Tables (such as States/Provinces)
– Auto-Numbering
– Currencies
– Revenue Methods
Overhead Projects
Process Design and
Mapping findings
End User feedback from
Segment Testing
Document all configuration setup to be carried over
to Production
Communications
Prepare communications to employees
Establish a training plan
– Time & Expense
– Project Managers
Prepare any documentation for IT, HR and
Support
Communication will
drive first
impressions
Acceptance documentation
Required for publicly traded companies, but useful for everyone!
Acceptance of Training
System Acceptance
Data Transfers
Go-Live Date
Security Roles
Go-Live
Review and Data Gathering
Kick-off
Process Design, Mapping and Development
Integration Database Validation
Go-Live
Configure Production System
Perform all configuration done in test database in Production database
Process Design and
Mapping findings
End User feedback from
Segment Testing
Document all configuration setup to be carried over
to Production
Configure Production
System
Configure Production System
Execute Go-Live Task List
– Configuration
– Communication
– Create Security Roles, add Users, assign
Users to Security Roles
– Import Info Center data as validated during Segment Testing
Include dependencies on action of other departments
Distribute Reference Lists
For super users, Principals and Project Managers,
and for all staff
Chart of Accounts
Client, Project
Vendor
Employees
Projects by Organization
Projects by Principal and Project Manager
Begin Time and Expense Collection
After configuration and imports, the system is ready
for:
– Entry of Timesheets and Expense Reports
– Manual maintenance of Info Center records
– Financial processing for new transactions
Establish Sub-Ledgers
Project Billed and Received History Loading (AR
sub-ledger)
Unpaid AP and Employee Expense Reports
Project WIP
Employee Benefit Accruals
Project History
Establish General Ledger
Enter opening Trial Balance as a Journal Entry
Enter Cash Receipt transactions to record bank opening balances
Reverse duplicate GL Balances
Reconcile all Sub-Ledgers to the General Ledger
Note: Sub-ledger Data Imports and History Loading do not create GL entries, only Sub-Ledgers
Support
59
Initial support, during the first 2 weeks
– Time & Expense
– Data Entry
During the first month close
– Finance processing and closing
After the first close
– Employee and Project Labor reports
Within two months
– Project Managers
• Be on site when possible
• Admin person for
Time & Expense
• A controller or finance
manager for the first
close
Project Closeout
Book-end to Project Charter
Review and Data Gathering
Kick-off
Process Design, Mapping and Development
Integration Database Validation
Go-Live
Project closeout
©2016 Deltek, Inc. All Rights Reserved 61
Lessons Learned
Rouse, T. and Frame, T. “The 10 steps to successful M&A integration"
Bain Brief, 4 Nov. 2009. Web. 15 Aug. 2016.http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx
Project Close-out
62
Prepare Project Closeout Document
– Accomplishments (as compared to Charter)
– Cost Analysis
– Lessons Learned
Final Thoughts
©2016 Deltek, Inc. All Rights Reserved 63
Final Thoughts
64
Communicate EARLY and communicate FREQUENTLY
Have a plan
Retain temporary help as needed
Set initial realistic timelines
Be ready to “sell” Vision to every level employee
Assure that adequate training is provided
Make sure IT is ready
Final Thoughts
65
Do not bring over all historical transaction and Info Center data
Perform segment testing not parallel processing
Reconcile any legacy system before data extraction
Use a test system
Minimize custom development
If you have a feeling that one of your staff might quit soon, do not make them a
key integration team member
Final Thoughts
66
You are working with people who are going through a lot of changes and
challenges.
Do not come off like…
Perseverance
67
Adadante, F. “How to Integrate a Company You Acquire: 6 Steps" Inc., 26
Mar. 2012. Web. 15 Aug. 2016.http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html
©2016 Deltek, Inc. All Rights Reserved 68
Need Help?
Deltek Global Consulting provides a broad range of services to clients.
– Vision Core Optimization Workshop
– Vision CRM Optimization Workshop
– Ad Hoc Data Consulting Support
– Ad Hoc Core Consulting Support for New Features and Functionality
Visit at the Deltek Global Consulting Booth in the Expo Hall– Aspen Autrey Perantoni, Solution Sales Executive, 813.394.7861
[email protected] or Contact your Account Manager
Please submit a survey for this session via the
mobile app.
70
Learn More
Get plugged in
• Join a user group (regional, virtual)
• Interact in Kona – Client Advisory Council
(CAC) and more! ([email protected])
• Join the MVP program
Visit the Vision kiosks in the Expo Hall
Follow the Vision Blog @ http://bit.ly/Vision_Blog
Attend a live VPM, CRM, Resource Planning,
demo or sign up for an upcoming webinar at
Deltek.com