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Transcript of © 2010 Sutherland Global Services Inc., All rights reserved. Privileged and confidential...
© 2010 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com © 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
DisclaimerThis document is the proprietary and exclusive property of Sutherland Global Services except as otherwise indicated. No part of this document, in whole or in part, may be reproduced, stored, transmitted, or used for design purposes without the prior written permission of Sutherland Global Services. The information contained in this document is subject to change without notice. The information in this document is for information purposes only. Sutherland Global Services® disclaims all warranties, express or limited, including, but not limited, to the implied warranties of merchantability and fitness for a particular purpose, except as provided for in a separate software license agreement. All confidential or proprietary information contained in Sutherland’s response shall at all times be and remain the sole and exclusive property of Sutherland Global Services, Inc.
Avoid the M&A Uh Oh! Moment—Have a Plan!27 June 2012
Steven Braud, VP, Finance & Accounting OutsourcingStan Mejia, AVP, Finance & Accounting outsourcingDavid Kaminski, SVP, Finance & Accounting Outsourcing
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 2
Today’s Moderator
David is the Senior Vice President of Client Engagement for Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, David has worked as a Partner with Capgemini, and has served as General Manager of Worldwide Financial Services for Microsoft Corporation. During David’s 9 year tenure at Microsoft, his responsibilities were split between running two global businesses as Chief Credit Officer of Microsoft Corporation and President of Microsoft Capital Corporation. David and his team of 400 professionals managed a global asset of $8 billion in more than 180 countries.
David Kaminski, SVPSutherland Global Services
F&A Services
Avoid the M&A Uh Oh! Moment—Have a Plan!
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 3
Today’s Speakers
Steven is a Solution Architect with Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, Steven has worked for Fortune 50 companies in Strategy Formulation, Business Performance Management, Accounting, Transformation, General Accounting and Close & Consolidation. He is an industry expert in Order to Cash for outsourcing and has consulted with several Fortune 50 Companies for Cost Reduction, Performance Management, Shared Services, Finance Transformation and ERP Implementations.
Stan is a Transition expert with Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, Stan has worked for some of the leading Accounting, Consulting and Outsourcing companies in the world, and was an Accounting Center Controller for one of the nation’s largest retailers. He has a strong background in Consolidation, Transition and Transformation within an accounting organization, and his experience includes serving as the Lead Client Service Representative for several accounting outsourcing programs, including those that require both domestic and offshore services.
Steven Braud, VPSutherland Global Services
F&A Services
Stan Mejia, AVPSutherland Global Services
F&A Services
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 4
Today’s AgendaAvoid the M&A Uh Oh! Moment—Have a Plan!
How to Create a Plan for Your M&A Events
Why It Is Important to Have a Sponsor
What Are the Critical Questions to Consider?
Status Quo, Shared Services Center or Outsourcing• Which One Is Right for You?
Standardization—A Solution That Delivers Benefits
Do You Have an Opportunity to Standardize?• Working Example—A Focus on Accounts Payable
How an Outsourcing Partner Can Help You
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 5
Level-Setting Today’s Discussion
M&A can be a great way to grow your business It can also bring huge challenges
• According to a KPMG study "83% of all mergers and acquisitions (M&As) failed to produce any benefit for the shareholders and over half actually destroyed value"
Top challenges associated with M&A• Poor strategic fit• Culture clash• Poor communication• Due diligence mistakes• Betting the whole company• Not allocating enough resources• Insufficient Change Management
All of these could relate to not having a comprehensive implementation plan
Our focus today is on having a plan in place to standardize processes and technology in your Finance Department to help drive M&A success
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 6
How to Create a Plan for Your M&A Events
Ensure the plan encompasses all project management and process
functions from the point of acquisition to integration
IntegrationDesign
IntegrationDesign
PlanExecution
PlanExecution
Integrationof
Organizations
Integrationof
Organizations
Staffing
Training
QA Implementation
IT Deployment
Facility Readiness
BCP / DRP
HR Planning
Training Planning
QA Planning
IT Planning
Risk Planning
Facility PlanningInitiation/Discovery
Process Mapping
M&ADiscovery
BaselineReview
FormalIntegration
Review
Go Live
OPS Review
Track/Sustain
Shadowing
Govern Engagement
Buildingthe Plan
A plan to integrate two companies is similarto implementing an outsourcing plan.
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 7
Why It Is Important to Have a Sponsor
After M&A, the CFO is busier than ever,and likely doesn’t have the bandwidth tolead the charge
A strong sponsor is key to success• A strong sponsor has the authority and
buy-in from key teams and stakeholders to drive the overall project from acquisition to integration, and will:– Expect the unexpected
– Attack bumps in the road right away
– Manage the ongoing nature of the integration process
– Communicate, communicate, communicate
– Report progress to the Senior Leadership Team
– Work through problems to reach resolutions that are best for the organization
– Help lead Change Management and drive values
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 8
What Are the Critical Questions to Consider?
What are your expectations?
Are you communicating with your people?
What processes/systems in each organization are best in class?
Are you prepared for system integration and reporting standardization?
Have you identified high-value and non-value activities in each organization?
How will you achieve your business case?
Do you have the right F&A staff (size, number of positions, etc.)?
Are you sufficiently managing risk?
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 9
Status Quo, Shared Services Center or Outsourcing—Which One Is Right for You?
Operation Models Post-M&AOperate Businesses
AutonomouslyCreate a Shared Services
CenterPartner with an
Outsourcing ProviderBenefits• Status-quo retained• Change kept to a minimum• Time to evaluate optionsRisks• Status-quo retained• Process and cost efficiency
not realized• System constraints from
disparate systems
Benefits • Labor arbitrage• Process optimization• Economies of scale• Controlled internally Risks • Tactical focus• Realizing transition and
transformation costs• Key staff lost, not retained• Internal change
management
The foundation for long-term success is standardization.
Benefits• All of the benefits of a Shared
Services model PLUS• Process standardization &
best practices• New technology & toolsets• Strategic focus
Risks• Transition timeframe• Knowledge transfer• Challenges of change
management
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 10
Standardization—A Solution That Delivers Benefits
Standardization helps integrate M&As in a targeted way and helps management:
• Improve the value F&A delivers to support business strategies
• Make better, smarter, faster decisions that are invaluable in a global competitive market
• Streamline business processes, document retention, real-time access, disaster recovery and security
• Reduce redundant staff layers, processes and costs
• Mitigate delivery risk through simplified points of contact
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 11
Do You Have an Opportunity to Standardize?
Are your processes manual and paper-intensive?
Do you have policies and procedures in place?
Do you have redundant positions?
Do you have multiple processes?
Are your G&A costs too high?
Do you have the right technology?
Do you have the right teamin place to drive standardization?
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 12
How an Outsourcing Partner Can Help You
Provide best in class solutions to maximize your M&A events
• Develop and implement policies and procedures
• Automate manual processes
• Implement tools and technology to standardize systems
• Optimize non-value activities
• Focus management on strategy and growth
• Provide the right F&A talent
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 13
Thank You
Steven Braud—Presenter Vice President, Solution ArchitectFinance & Accounting OutsourcingSutherland Global [email protected]
Stan Mejia—Presenter Assistant Vice President, TransitionsFinance & Accounting OutsourcingSutherland Global [email protected]
David Kaminski—Moderator Senior Vice President, Client EngagementFinance & Accounting OutsourcingSutherland Global [email protected]
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 14
What Sutherland FAO Can Do For Your Finance Organization
Financial Reporting
Transaction Processing
Fina
nce
Focu
s
Business Decision Support
From• Finance as a function
• Transaction processing requiring effort & attention
• Focus on ad-hoc operational solutions
Administrative
Strategic
Time SpentTransactional Decision Making
To
• Finance as a business partner
• Focus on performance management for core processes
• Finance operations very low cost & effective
In addition to reducing the cost of the Finance function, outsourcing provides CFOs with the opportunity to focus their retained organization on what is important to the Business.
Cost Reduction
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 15
Sutherland FAO – Practice Overview
Structure• Globally distributed delivery capacity and domain capability• The Deloitte-established Tulsa FAO Centre of Excellence has been servicing clients since 1995 • Strategic global locations designed to satisfy SAS 70 standards and Sarbanes-Oxley requirements
Capability• Full suite of FAO services – transaction processing to financial and management reporting• Integrated Analytics to support Collections, Financial Planning and Analysis functions• Onshore, offshore and hybrid solutions tailored to meet client-specific needs
Expertise• Dedicated team experienced in business transformation, process optimization & transition services• Expertise in utilizing existing client applications and/or SGS-hosted ERP systems• Robust set of add-on technologies supported by in-house application management team
Flexibility• Custom-crafted Pricing and Commercial Structure aligned to client needs and objectives• Output/Outcome Based Pricing and No Termination penalties
Sutherland’s Finance and Accounting BPO Practice is ~2000 people strong, processing 150 million transactions annually, delivering services from four geographies
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 16
Working Example—A Focus on Accounts Payable
Is Your Finance Department Drowning in Paper?
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 17
Working Example—A Focus on Accounts Payable
Indicator Operational ImpactPe
ople
Proc
ess
Tech
nolo
gy
Bloated staff structuresHigh turnoverStagnant turnover inflating salariesDecentralized model
High G&A labor costsLack of staff continuityInconsistent customer service
Lack of clear policies & proceduresManual, paper-based processesLong cycle timesHigh volume of exceptionsMinimal service levelsMinimal reportingPaying vendors too frequentlyPoor visibilityLimited controls & compliance
Customer service issues Impact on Working CapitalPoor supplier relationshipsUnable to identify root cause of issues
Disparate systemsLack of system integrationMinimal e-toolsLimited or no automated workflow
Manual, paper-based processesUnable to optimize available functionalityHigh support and maintenance costs