WORLD-CLASS PERFORMANCE IMPROVEMENT …hope.ams.thehackettgroup.com/Downloads/Hackett Performance...
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Hackett Performance Exchange Overview| 1© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
WORLD-CLASS PERFORMANCE IMPROVEMENT
HACKETT PERFORMANCE EXCHANGECFO SOLUTIONS OVERVIEW
February 2014
Hackett Performance Exchange Overview| 2© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The Hackett Group Difference
Hackett Value Grid™
Intellectual capital and implementation expertise that accelerates the time to
sustainable benefit realization
Global leader in operations improvement
strategies, implementation know-how, and G&A
agility
We address both efficiency and effectiveness that
enable strategic business objectives
Our insights are fact based, from over 10,000
engagements
Our Best Practices Intelligence Center™ is a
significant differentiator and enabler
– 20,000+ performance metrics updated annually
– 1,500+ best practices across 95 business processes
– 1,000+ best practice-based process maps,
requirements and configuration guides
Hackett is the market leader and innovator in measurement solutions
Hackett Performance Exchange Overview| 3© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
1.16%
0.60%
Peer Group World Class
87.5
41.4
Peer Group World Class
51.0
34.0
Median 1st Quartile
World-class advantage – in cost, and cash – is significant
End-to-end Process Potential savings ($M)* Potential savings (%)
Customer-to-Cash $9.7 70%
Account-to-Report $9.3 50%
Purchase-to-Pay $8.7 38%
Total $27.7 50%
The world-class cost advantage – leading transactional processes
* For $10 billion in revenue organization
Finance FTEs
(per billion of revenue)Finance Cost
(% of revenue)
Days Sales
Outstanding
48% 53%
33%
$56M savings 461 fewer FTEs $466M cash flow
Hackett Performance Exchange Overview| 4© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Put teeth behind performance
goals – align incentives
Accountability and visibility
drive results
Start with a firm baseline leads
for better outcomes
What gets measured, gets improved
63% realize completing formal
business cases with cost and
benefits realize better results
3X productivity levels in
organizations which routinely
measure General Ledger
transactions per FTE
100% of top performers cite
global visibility of customer
information and business
volumes as very important to
realizing the strategy
64% of top performers link
incentive compensation with
achievement of key finance
improvement objectives
Global execution requires
global data
Hackett Performance Exchange Overview| 5© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Hackett Performance Exchange – establishes the total Finance opportunity baseline and operational “root cause” metrics
ERP
HackettConnector
Internet
browser
Simple connection to the ERP
consolidates data in a consistent fashion
and eliminates manual data collection
Quickly delivers initial Finance cost and
cash performance assessment
Provides operational metrics,
root cause analysis, and ongoing
benefits realization tracking
across the O2C, P2P and A2R
end to end processes
Limited time commitment and no manual data collection required
Hackett Performance Exchange Overview| 6© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
1. CFO Performance
Assessment
2. CFO Performance
Benchmark
3. CFO Performance
Dashboard
No effort to quantify cost and
cash improvement opportunity
Automatically extracts
information from SAP &
Oracle
Algorithm calculates total
Finance improvement
opportunity
Collect FTEs and Costs
leveraging Hackett’s
methodology
Augments baseline and
improvement opportunity
Unlocks productivity and cost
metrics
No effort to monitor monthly
performance
Root cause analysis across
O2C, P2P, A2R
Tracks performance relative to
targets and peer group
Tracks total finance
performance monthly
Hackett Performance ExchangeWorld-Class Performance Improvement Measurement Suite
Hackett Performance Exchange Overview| 7© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
CFO Performance AssessmentAutomatically quantifies finance cost and cash improvement opportunities
Automatically
calculated
baseline cost
based upon ERP
data
Improvement
range relative to
complexity based
peer group
Quantified
working capital
improvement
opportunity
High priority O2C,
P2P, and A2R
performance
metrics impacting
results
Total finance
function
improvement
potential
Hackett Performance Exchange Overview| 8© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
CFO Performance BenchmarkProcess Cost and FTEs compared to Peer Group
Process cost
utilizing Hackett
definitions to
ensure
consistency
Results compared to
Hackett database
Available detailed
baseline reports
Average fully
loaded labor cost
Ratio of staff to
managers
Refined cost
opportunity
Productivity
metrics
Transaction
cost metrics
Hackett Performance Exchange Overview| 9© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
CFO Performance DashboardIncludes hundreds of performance metrics across O2C, P2P, & A2R
Quantified
process cost
improvement
opportunity
Quantified
cash
optimization
potential
Compare results to
Hackett database
View Working
Capital Scorecard
Drill into all
metrics for intra
company
comparisons,
trending details,
and definitions
Listing of
metrics by
process
Listing of
metrics by
category
Hackett Performance Exchange Overview| 10© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
How are our clients utilizing the Hackett Performance Exchange?
Selected Clients Usage Examples
Leveraged empirical insights as
input for business case
Captured productivity baseline
prior to transitioning services into
GBS
Provided process view using
consistent measurements for
global summary and by business
unit
Validated working capital
improvement opportunities
Utilized performance trending to
track realization of key targets
Hackett Performance Exchange Overview| 11© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
CFO Performance Assessment implementation checklist
Next Steps Client Lead Time
Required
Review setup steps and any IT related
questions (e.g., security, performance, effort)
IT Business
Partner
1 hour
meeting
Review and sign user agreement Executive Sponsor
Confirm planning assumptions (ERP,
currency, fiscal calendar year, monthly
accounting cycle)
Client Project
Manager
30 minute
call
Complete installation of the
HackettConnector™ and test production
environments
Initiate data extraction from Production
environment
Client Project
Manager
4 hours
Review data and prepare analysis Hackett performs 3 days
Review CFO Performance Assessment results Executive Sponsor 1 ½ hours
You are less than 2 weeks away from
understanding your Finance cost and cash opportunity