Halliburton Tax Department

Process Improvement Discussion

June 29, 2011

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Discussion Topics

A quick look at the Opportunity “demographics” from June 14th meeting

Process Improvement objectives for Tax

Next Steps

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LikelySolution Audit Compliance DMG FTC OneSOurce Planning Tax Acctg Grand Total %OneSOurce 12 6 10 12 40 35%Process 6 2 3 8 5 24 21%Talisman 1 9 1 1 12 10%Tool 3 4 4 11 10%F&A 5 1 4 10 9%Role 1 1 2 4 3%Training 1 3 4 3%CorpTax 2 2 2%Sharepoint 2 2 2%Communication 1 1 2 2%Documetation 2 2 2%Access 1 1 1%SAP 1 1 1%Grand Total 13 27 18 5 11 13 28 115 100%

Opportunity CategoryAudit Compliance DMG FTC OneSOurce Planning Tax Acctg Grand Total %Auto 1 11 8 1 3 9 33 29%Info 2 3 7 3 2 6 23 20%PI 4 6 1 1 1 6 2 21 18%Data 2 5 1 2 2 2 5 19 17%P&T 4 1 1 1 3 5 15 13%F&A Data 2 1 1 4 3%Grand Total 13 27 18 5 11 13 28 115 100%

A Quick Look At The Opportunities …

Of the approximately 115 opportunities identified in the team presentations, the vast majority (80+%) fall into 4 categories: Automation, Information, Process Improvement and Data.

… of those opportunities, the solutions tend to cluster around a few areas.

Opportunities by “type”…

Opportunities by “Likely Solution”…

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Looking at the intersection between the type of opportunity (e.g. automation) and the expected solution (e.g. OneSource) we see pockets of commonality:

… while this information is not conclusive, it provides a “heat-map” view of where we think opportunities exist, and where we may want to focus our efforts.

A Quick Look At The Opportunities …

Equally important – where we may NOT want to focus our efforts.

Opportunity CategoryAccessCommun

icationDocumet

ation Process Role F&A Tool TrainingOneSOur

ce TalismanSharepoi

nt SAP CorpTax Grand Total

Auto 1 3 24 4 1 33

Info 1 5 3 7 6 1 23

PI 12 1 2 3 1 1 1 21

Data 1 1 1 2 5 3 5 1 19

P&T 1 5 3 4 1 1 15

F&A Data 4 4

Grand Total 1 2 2 24 4 10 11 4 40 12 2 1 2 115

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Goals / Expectations – Typical PI Program

Culture Change•Fact-based decisions•Customer-focused organization•Effective, consistent approach to problem solving

Results:•Productivity (typically 20-30% improvement)•Cost savings•Quality improvement (fewer defects, risk mitigation)

Effective Team working:•Identifying the right team members•Effectively engaging team members to solve the problem

Upgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific ProblemsUpgrade Organizational Capabilities & Solve Specific Problems

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Process Improvement Roles

Project Sponsor(Champion)

Project Leader(Belt)

Team Members• Individuals with specific skills/knowledge required to

successfully complete the project.

• Leads day-to-day project activities.• Responsible for the success of the project• Establishes a team and manages the team’s

activities.

• Identifies and qualifies project opportunity.• Assigns the project to a project lead.• Monitors progress, breaks down barriers.

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Suggested Next Steps

• Identify your top 3-4 projects

• Indicate who you think should lead each project

• For next Staff Meeting (July 13th)

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APPENDIX – Examples of Categories of Opportunities Auto Examples:

– Automate Transfer of Data Between Compliance Software and Excel– Manual Tax Adjustment (data)– Manual Tax Adjustment (process) Automation– Forms Automation

Info Examples:– Begin to mitigate Fin 48 issues arising from lack of documentation– Incorporate use of provision reporting checklists to ensure appropriate inter- and intra-period classification of balances

PI Examples:– Partner with internal audit to ensure planning strategies are implemented, executed, and maintained in accordance with the

plan– Develop Process to Release 3rd Party WHT from A/R

Data Examples:– Develop database of historic intercompany issues and their resolution – reduce duplication of effort– Topside Entries– Integration of Hyperion Planning data directly into provision processes on a real-time basis

P&T Examples:– Implement a rotation/training process to develop expertise– Completion and rollout of iLearn courses followed by continuous update – Assignment of support responsibility to Tracy Howell to assist F&A field personnel and RTM’s

F&A Examples:– Create Separate “Capital Accounts” for Partnership Rptg. – Flexible data feeds & adjustment automation enable working with F&A to improve upstream data feeds – Alignment of tax with the finance organization (data not aligned)