ANAGEMENT CONTROLLERSHIP INNOVATION...8% < 50 Millions from 50 to 249 Millions from 250 to 999...
Transcript of ANAGEMENT CONTROLLERSHIP INNOVATION...8% < 50 Millions from 50 to 249 Millions from 250 to 999...
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MANAGEMENT CONTROLLERSHIP INNOVATION
Frédéric DOCHE Chairman of IAFEI Management Control Committee
CEO and founder of DECISION PERFORMANCE CONSEIL and DPC Asia
Cécile FALCHIER CFO EMEA Entreprise Market SAGE (France)
Stefano GRASSI CFO Luxottica group (Italy)
Jimmy YSMAEL President FINEX - CFO Ayala Land (Philippines)
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INTERNATIONAL OBSERVATORY OF MANAGEMENT CONTROL
Activities and Processes 2
Methodology 3
Management Information System 4
Introduction to the International Observatory of Management Control 1
Conclusion 5
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Cecile FALCHIER
CFO EMEA Entreprise Market SAGE (France)
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Stefano GRASSI
CFO Luxottica group (Italy)
Jimmy YSMAEL
President FINEX
CFO Ayala Land (Philippines)
IAFEI MANAGEMENT CONTROL COMMITTEE
Chairman: Frederic DOCHE
Members: Armand KAÁLI-NAGY – Austria (OPWZ)
Peter Llewellyn-DAVIES – Germany (GEFIU)
Gustavo TROISI – Italy (ANDAF)
Gustavo RODARTE – Mexico (IMEF)
Tsutomu MANNARI – Japan (JACFO)
Bernadette ASTUDILLO – Philippines (FINEX)
Nikolaus Von NATHUSIUS – Poland (FINEXA)
Yassine SOUSSI – Tunisia (COGEREF)
Pascal BALLAYER – Portugal (PAFE)
Roman SLOVINEC – Slovakia (CFO Club Slovakia)
Natalya RUKINA – Russia (Russian Club of Fin Dir)
Anastassios RODOPOULOS – Greece (IHM)
Nikolaas Van Wyk – South Africa (SAIBA)
Markus GISLER Switzerland (IFZ)
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OBJECTIVES OF THE OBSERVATORY
Compare : Activities
Processes
Methodologies
Tools (MIS)
of the management controller around the world
Get a better understanding and identify best practices
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SPONSOR : DECISION PERFORMANCE CONSEIL – DPC ASIA LTD
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Our Clients
DECISION PERFORMANCE CONSEIL GROUP
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United Kingdom Moldavia
Armenia
Cameroun Ouganda
USA
Indonesia
Singapour
South Korea
India
Japan
Taiwan
Germany
PARIS
HONG KONG
DPC Offices
Missions worlwide realized
Italie Spain
Luxembourg Switzerland
DECISION PERFORMANCE CONSEIL GROUP
19 International partners, 29 countries involved
PARTNERS OF THE IOMC SURVEY (5TH EDITION)
ANDAF
GEFIU
CFO Club Slovakia
ICV
FEI
IFZ
SAIBA IAFEI
FINEX
COGEREF
IMEF
OPWZ
FINEXA
Russian Club of
Financial Directors
DFCG
PAFE
IHM
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IMA
PANEL PROFILE : Companies background
Industry sectors
47%
27%
11%
7%
8%
< 50 Millions from 50 to 249 Millions
from 250 to 999 Millions from 1 to 5 Billion
> 5 Billion
Turnover
0% 10% 20% 30%
Other Services
Bank, Insurance &…
Industry
Consumer Products
Engineering &…
Media, Telecom and IT
Distribution & Trading
Energy & Utilities
Public administration
Transport and Logistics
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57% +6 % points vs 2014 Companies experienced a growth in sales last year More women work in
management control
PANEL PROFILE
Performance Manager (EU) VS
Management Controller (US)
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72% of the
controllers working in big firms consider Big Data is important
75% of the
companies use Benchmarking
51% of the
forecast produced in less than a week
Stabilization in the use of
Rolling Forecast after a period of
growth
31% of the
companies publish their reports within 5 days after closing
date (vs 12% in 2014)
KEY FIGURES
29% ZBB users in
public sector (new trend)
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INTERNATIONAL OBSERVATORY OF MANAGEMENT CONTROL
Activities and Processes 2
Methodology 3
Management Information System 4
Introduction to the International Observatory of Management Control 1
Conclusion 5
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ACTIVITIES
Predominant activities : Reporting, Plan and Budget, variance analysis
Controller involved in strategic tasks
Time by activities Controller is also involved in
17% 16%
14% 13%
12% 11%
9% 8%
0%
20%
40%
60%
80%
Specific economicalstudy/business
case
Social andenvironmental
reporting
Human resourcesreporting
Transfer pricesevaluation
Cash forecast
Merger andacquisitions,partnerships
Managementcontrol projects
IT ManagementControl
2015
2014
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project
ACTIVITIES
TIME + ADDED VALUE +
TIME - ADDED VALUE + TIME - ADDED VALUE -
TIME + ADDED VALUE -
Added value
Tim
e s
pe
nt
Less time spent on the reporting production vs 2014
More added value on Plan & Budget and Forecast / Reforecast
MIS : low involvement of the Management Controller
Time and Added Value
Working with operational dpts
Variance analysis
Forecasts and Re-forecasts
Plan & budget
Reporting production
Business reviews
IT systems
Internal audit / Risk management
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2014
2014
2014
Flat trend in the use of Rolling Forecast
PROCESSES
51% of forecast produced in less than a week
2013 2014 2015
37% 45% 39%
50% 40% 43%
13% 15% 18%
Yes No No, but planned
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
1 = Less than 1week
2 = Beteween1 and 2 weeks
3 = More than2 weeks
2014
2015
Less than a week
Between 1 and 2 weeks
More than 2 weeks
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Stabilization of the range of indicators
PROCESSES
67%
14% 31%
3%
41% 5%
21%
10%
12%
9%
35% 52%
2013 2014 2015
Additional indicators Suppressed indicators
Indicators replacement Unchanged
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PROCESSES
Reporting are produced faster: submitted before D+5 (31% in 2015 vs. 12% vs. 2014)
0%
5%
10%
15%
20%
25%
30%
35%
40%
D à D+5 D+6 à D+10 4 = D+11 to D+15 5 = More than D+15
2014
2015
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INTERNATIONAL OBSERVATORY OF MANAGEMENT CONTROL
Activities and Processes 2
Methodology 3
Management Information System 4
Introduction to the International Observatory of Management Control 1
Conclusion 5
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Global stabilization of methodology adoption
METHODOLOGY
Benchmarking favored by growing companies.
ZBB used in more and more industry sector, including now by public sector
BSC is more used in Asia
Benchmarking BSC ABC / ABM BBZ
201320142015
0%10%20%30%40%50%60%70%
Benchmarking BSC ABC / ABM BBZ
Asie Europe Amérique Autres
By area
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ZBB
INTERNATIONAL OBSERVATORY OF MANAGEMENT CONTROL
Activities and Processes 2
Methodology 3
Management Information System 4
Introduction to the International Observatory of Management Control 1
Conclusion 5
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54% of the
companies are using Excel ONLY
Main tool : Excel
MANAGEMENT INFORMATION SYSTEM
Excel scope of use in medium and large companies
ERP 9%
Consolidation tool 7%
Budgeting tool 15%
Multi-dimensional
program 8%
Integrated dashboard tool
7%
0%
10%
20%
30%
40%
50%
60%
70%
Plan Budget Reporting
Anglo-Saxon without small business
Continental Europe without small business
English speaking countries Continental Europe
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MANAGEMENT INFORMATION SYSTEM
27% 45% 54% 54%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
< 100 employees 100 to 999 employees 1000 to 4999employees
5000 to 24999employees
> 25000 employees
Have you heard about "Big Data" topics in your company?
No Yes
Interest for Big Data related to the size of the company.
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But real time data analysis is the next issue
Have you got a Big Data project?
MANAGEMENT INFORMATION SYSTEM
0% 10% 20% 30% 40% 50% 60%
No
Within 6 months
6 months to 2 years
Over 2 years
Redesign Change
0
10
20
30
40
50
60
France USA Other countries
Change within 6 month by country
Redesign within 6 month by country
More Redesigns project in France Vs more changes project in the US
More than half of the respondents plan a redesign or change project
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INTERNATIONAL OBSERVATORY OF MANAGEMENT CONTROL
Activities and Processes 2
Methodology 3
Management Information System 4
Introduction to the International Observatory of Management Control 1
Conclusion 5
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CONCLUSIONS
Controller involved in strategic tasks
Reporting produced faster
Generalization in the use of benchmarking
Excel remains the predominant tool
Redesign or change project for more than 50%
Growing importance of Big Data
Real time access to data is the next issue
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Management controller has a key role to play for innovation of processes and tools
for transformation of the finance function
QUESTIONS AND ANSWERS
Frederic Doche CEO and founder
+33 (0)6 12 78 85 92 [email protected]
Complete results to be published in December
Email me if you want to receive this presentation or the Observatory
detailed results
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DRIVE FOR INNOVATION IN FINANCE @
AYALA LAND
Jaime E. Ysmael
President FINEX and CFO Ayala Land Inc. (Philippines)
• Significant time and effort spent on gathering data and generating insights from financial and non-financial data
• Less time to engage in value-adding activities in support of the new roles of CFOs as “strategist” and “catalyst”
• Significant opportunity to tap technology-based innovations to enhance the finance function
CHALLENGES TO THE FINANCE FUNCTION
FORCES DRIVING INNOVATION IN FINANCE
Companies need to rethink and innovate their Finance function if they are to deliver what the business needs in the digital age.
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Many forces have the potential to transform Finance
TALENT
CLOUD
COMPUTING
FINANCE
ANALYTICS/
BIG DATA
SHARED
SERVICE
MOBILITY
BUSINESS
PROCESS MGT
JOURNEY OF AYALA LAND IN FINANCE INNOVATION
Source : Finance 2020 by Deloitte
The rapid growth of Ayala Land has driven it to continually innovate and use these forces in the organization to “enable” finance and help enhance its value creating role
At Ayala Land, we transformed the finance function to address increasing expectations by employing disruptive techniques/technologies
INNOVATION ENABLES THE CFO FUNCTION
As a result of these new innovations,
the CFO is better able to discharge his
evolving roles and functions.
ROLE OF CFOS
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• CFO as strategist. Manage risks and opportunities by developing a flexible corporate strategy
• CFO as operator. Adept at making sure that strategy is executed properly, cascading it to operational units in a manner that not only manages resources but also optimizes them
• CFO as catalyst. Spur change by seeing opportunities in competition, such as learning from new paradigms.
• CFO as steward. Traditional role. Acting as the conscience within the organization. Goes beyond compliance to serve as chief moral compass of the company.
Source: Deloitte CFO Framework
ENABLERS OF FINANCE AT AYALA LAND
• Information and Systems – ERP and DBM systems that generate accurate and timely information for decision making
– Buyers Reservation System which allows buyers to transact online using cloud infrastructure
– Sales Reservation System which allows property specialists to access data on their mobile devices
• Process and Policy – Workflow-enabled sales admin and accounting functions through shared service centers and
mobile platforms
– Analytics through management dashboards and project monitoring systems
– Data analysis software to enable continuous auditing, monitoring and identification of business improvement opportunities (through spend analytics)
• Organization and People – Online balanced scorecard as tool for performance management
– Decentralization and empowerment backed by strong Corporate Center (centers of excellence)
– Training and development, cross posting and hiring from within, aligned with corporate goals
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Q & A