IBM Journey To A Value Integrator

IBM Institute for Business Value

Value Integrator is a journey,
not a destination

February 2011

© 2011 IBM Corporation

Setting the context

The Global CFO Study 2010 is the largest known CFO-level study of
its kind with over 1,900 participants

CFO Study 2010 Firmographics
Geography Enterprise Size (US$) Sector
>$20B,
Others, 1%
Asia Pacific, Americas, 14% <=$500MM, Communications,
>$10B to Public, 13%
27% 31% $20B, 7% 25% 13%

>$5B to Industrial, Distribution,
$10B, 11% 25% 28%
$501MM to
$1B, 15%
EMEA, >$1B to Financial Services, 20%
42% $5B, 28%
Title Scope of Role
BU / Program
SVP / Others, 8% Area, 5%
Controller /
Treasurer, Country,
14% 27%
CFO / Deputy Enterprise /
CFO / Director, Global, 57%
78% Region,
11%
N = 1,910
Source: IBM Institute for Business Value, The Global CFO Study 2010
Geography = Country of Company Headquarters

2 © 2011 IBM Corporation

Setting the context

What’s important to CFOs? Everything, yet Finance effectiveness
lags

CFO Agenda: Importance vs. Effectiveness

1

2
3

# Importance Rank



Setting the context

The IBM 2010 CFO Study showed that Value Integrators excel at
two capabilities, leading to outperformance

Finance Efficiency and Business Insight

Corporate High
philosophy of 23%
information
standards

Standard
32%
Chart of
Accounts
Finance
Standard Efficiency
data
definitions

12%
Standard
processes
33%

Low
Low High
Business
Insight
Operational
Finance Common
planning and
talent planning
forecasting
development platform
capability



Setting the context

Value Integrators experience a compound benefit from better
execution across the board, for which they are rewarded

Benefits of being a Value Integrator

More Effective Against the CFO Agenda Financial Outperformance



Setting the context

Value Integrators continue to outperform through 2009 and appear
to be better positioned coming out of the recession

Updated Financial Outperformance

5 Years through 2009 1 Year: 2008 to 2009

105% 36% 15%
better better better 12 x
12.0% better

10.3% 32.2%

8.8% 9.0%

7.7%

20%
3.8% better

7.2%
6.0%
15 x
2.5% better

EBITDA Revenue ROIC -0.3%
5-year CAGR, 2005-2009 5-year CAGR, 2005-2009 5-year average, 2005-2009 -4.1%

EBITDA Revenue ROIC
1-year change, 2008-2009 1-year change, 2008-2009 2009

Value Integrators All other enterprises

Source: IBM Institute for Business Value, The Global CFO Study 2010 / Journey to a Value Integrator


Setting the context

Value Integrators have more success managing past change
efforts and feel more prepared to deal with future change

Ability to Manage Finance Change

Past Finance Change Success Future Finance Change Needed

33% less likely to
require major
change in the future
Value Value
Integrators 79% 45%
Integrators

All Other 54% All Other 60%
Enterprises Enterprises

46% better
success with
past change

Note: Past Finance Change Success defined as “Significant Success” where other choices were Moderate Success, No/Limited Success; Change Needed defined as “Significant
Change” where other choices were Moderate Change, No/Limited Change


Setting the context

Value Integrators leverage five transformation levers to achieve
higher performance

Finance Becoming a Value Integrator

Seek the proper balance of
Drive financial and non-
skills and capabilities for
financial data commonality People Finance transactional,
and integrate information
control/risk and decision
across the enterprise
support
Data & Analytics

Use alternative Finance
process delivery models to
accelerate standards and
Operating Model improve Finance decision
support
Process Technology

Drive Finance process Leverage common Finance
commonality and use applications to accelerate
process ownership to standards and use proper
accelerate standards analytics technology


Setting the context

Our hypothesis is that there are common themes about the journey
to a Value Integrator

Study Methodology

Questionnaire
Approach
• What was the catalyst and business
• Leveraged responses from the
2010 CFO Study responses case for change?
• Conducted approximately ½ day • What was the starting point and actual
deep dive session with 15
participants
progression?

• Followed a fully consistent and • What were the challenges and lessons
scripted questionnaire
learned?
• Conducted follow-up fact-checking
and confirmation reviews • Were the expected benefits achieved?
• Analyzed findings and developed
common themes & conclusions • What are the future plans?


Setting the context

The study participants vary by industry, geography and size

Journey to a Value Integrator Participants
Enterprise Headquarters Industry FY10 Revenues
Adani Group India Energy & Utilities Rs.25,923 Crores

Air New Zealand New Zealand Travel & Transportation NZ4,046 MN

Bank of New Zealand New Zealand Banking NZ1,642 MN

Celanese United States Chemicals & Petroleum US$5,918 MN

DC Water United States Public US$363.7 MN

Dublin Airport Authority Ireland Travel & Transportation €547 MN *

Hays plc United Kingdom Professional Services £2,691 MN

Highmark United States Healthcare US$13.7 BN

IBM United States High Tech US$99.87 BN

Isetan Mitsukoshi Holdings Japan Retail ¥1,291.6 (1 BN ¥) *

Kao Corporation Japan Consumer Products ¥1,184 (1 BN ¥) *

Kuehne + Nagel Switzerland Travel & Transportation CHF17,406 MN *

Rhodia Brazil Brazil Chemicals & Petroleum €4,031 MN *

Statoil Norway Energy & Utilities NOK576.7 BN

The Williams Companies United States Energy & Utilities US$8,255 MN *
* FY2009 Revenues


Setting the context

We have summarized the findings into three themes

• One of four catalysts drives Finance transformation
Different catalysts,
• The case for change balances strategic and operational benefits
common objectives
• Broader enterprise benefits trump traditional savings

A playbook for • The participants use all levers, but usually not by design
Finance • Technology simplification is the most common starting point
transformation • The prevalent path is transparency then insight

• The best resources top to bottom must be committed
Success =
• Success requires open-mindedness and a relentless execution focus
people and culture
• Executive sponsorship and rigorous planning are essential


Contents

Different catalysts, common objectives

A playbook for Finance transformation

Success = people and culture



While the specific catalysts varied for each, generally they fall into
four categories

Catalysts for Finance Transformation

Growth /
Entity
Margin
Restructure
Management

Globalization and Business model
rightsizing innovation through M&A,
administrative functions spin-offs, IPO,
restructuring

Crisis / New
Survival Leadership

Economic, industry, internal Changes in CFO leadership
disruption threatening ongoing
survival of the enterprise


Enterprises have embarked on transformation projects or pursued
excellence as a function of the catalyst that drives them

Catalysts for Finance Transformation by Enterprise
Catalyst Enterprise Description
Growth / Adani Group Managing growth through efficient, scalable operations and rapid, reliable information
Margin Isetan Mitsukoshi Growth of the business and need to reduce operational, administrative and other compliance costs
Management Kao Corporation Creation of an efficient and scalable operating environment to support globalization
Kuehne + Nagel Globalization strategy required integration of the operations and financial controls to manage costs and
maintain margins
Statoil Re-organization to provide an improved platform for future growth and margin management.

Crisis / Air New Zealand Failure of the Ansett Australia airline acquisition
Survival IBM Company survival was at risk. Analysts began to call for break-up. New leadership came into the C-Suite.
The company decided to run the business on facts and to tighten controls
Rhodia Brazil Industry raw materials crisis
The Williams Companies A severe capitalization decline after a drop in the telecommunications market

Entity Celanese Spin off as an independent, publicly traded German firm, then private and then again became a public
company—this time, based in the U.S
Restructure
DC Water Creation of an independent authority of the District of Columbia providing services to the region
Highmark Consolidation of two Pennsylvania licensees of the Blue Cross and Blue Shield Association

New Bank of New Zealand New CFO who brought a new perspective and created a vision for a world-class Finance team
Leadership Dublin Airport Authority New CFO was appointed and a new strategy developed including an IPO, expansion of the international
business and regulation of the domestic airports business
Hays plc New Group Finance Director was appointed and had significant Finance transformation experience

How do you build a winning business case for change?


The case for change as expressed by participants includes a
balanced mix of strategic and operational goals

Case for Change
Strategic Goals Operational Goals
Catalyst Enterprise Provide Mitigate Support Improve Drive Greater
Greater Structural Scalability / Enhance Customer Build Skills / Reduce Efficiency / Improve
Transparency Complexity Globalization Controls / Risk Satisfaction Competency Costs Productivity Cash

Growth / Adani Group
Margin
Management Isetan Mitsukoshi

Kao Corporation

Kuehne + Nagel

Statoil

Crisis / Air New Zealand
Survival
IBM

Rhodia Brazil

The Williams Companies

Entity Celanese
Restructure
DC Water

Highmark

New Bank of New Zealand
Leadership
Dublin Airport Authority

Hays plc



The Finance transformation business case has broader enterprise
benefits, beyond those in a traditional Finance centric business case

Finance Transformation Business Case

Enterprise Benefits Case

Traditional
Finance Centric Reduced indirect
Business Case procurement sourcing
against spend

Reduced cost of Improved working capital
Finance as a %
Finance Finance against receivables &
of revenues payables balances
Benefits Benefits
Finance
standardization & Enhanced risk, controls,
compliance, & business
automation
agility

Better strategic investment
decisions (e.g., product
development lifecycle
decision process)


Contents






Technology simplification is the most common starting point, with
some enterprises coupling technology and process together

Leading Lever – Where did they start?
Enterprise Technology Process People Op Model Data Comments
Dublin Airport Authority Transformation involved a significant number of steps happening in
parallel including Process Consolidation, Common Policy Definition,
Integrated System, Data Cleanup / Consolidation, the IT Infrastructure
and Communication / Change Management

Bank of New Zealand World Class Finance Program focused on Leveraging Business
Intelligence, Planning, People, Continuous Improvement and Visual
Management

The Williams Companies Focus on shedding non-core businesses through outsourcing,
consolidation of systems and common processes

Isetan Mitsukoshi Need to align systems and centralize and reduce workload

Highmark Need for a common ledger to run the business and process
commonality due to the combination of two entities

Adani Group Implementation of SAP and related processes to support growth,
including industry specific solutions for trading, logistics, mining, etc.

Kao Corporation For the 21st century efforts, 2003 SAP, followed by SSC in 2005

Air New Zealand Single instance ERP to put information in one place, drive good data
and partner with the business; restructured Finance to solid line
reporting

Kuehne + Nagel Focus on globally integrating operations through a new global financial
system and globally consistent processes

Hays plc Upgrade of front-office systems and back-office systems to support
longer-term growth; built team who could drive change

Rhodia Brazil Need to drive operational excellence

Celanese The new entity had to build a new Finance team from scratch

DC Water The new independent authority required a new management team

Statoil Corporate initiative to re-organize administrative functions

IBM Need to assemble the facts - common data definitions came to be the
foundation of a comprehensive information management strategy



Technology is the fundamental enabler for process and data
commonality, and a scalable operating model

Technology as an Enabler for Other Transformation Levers
Technology Drives
Data & Analytics
Process Commonality Operating Model

Enterprise Process

Standard Foundation for
Chart of Accounts, Financial Business Insight Operating
Data Commonality Processes Processes Model
Adani Group
Air New Zealand
Bank of New Zealand
Celanese
DC Water
Dublin Airport Authority
Hays
Highmark
IBM
Isetan Mitsukoshi
Kao Corporation
Kuehne & Nagel
Rhodia Brazil
Statoil
Williams Co.


Regardless of the starting point, all participants ultimately ended up
wielding all the enablers to some degree, to achieve their objectives

Finance Transformation Paths and Timeline
1990 1995 2000 2005 2010

All levers
All levers
All levers
All levers except operating model (centralized Finance function)
All levers except operating model (centralized Finance function)
All levers
All levers
All levers
All levers
All levers
All levers
All levers
All levers
All levers
All levers



Technology and process transformation have been the first step,
with operating model and data & analytics following Technology
Process
Data & Analytics
Operating Model
Transformation Paths by Enterprise People

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

ERP development Custom ERP implementation Consolidation and planning Reporting tools Other BI tools
Common process and control standards Common planning/analytics processes Improve
DW, analytical tools Rolling forecast
Finance SSC
People programs, high potential program for leadership

Global ERP
Global process standardization
Data standardization, DW, Dashboard Corporate Dashboard
Corp services centralization Multi-function SSC
“Ambitions to Action”

Applications reduction Global ERP
Common processes Common processes redesign
Data standardization, web enablement, decision support Planning, pricing, other
Shared services Globalization, regional centers, outsourcing
People shift workforce Competencies, career pathing

ERP
Common processes
Enterprise-wide common data definitions

Org structure, talent recruitment Rightsizing, new leadership and talent Improve

GL Other ERP modules, consolidations, budgeting Planning Improve
Common Financial processes Common analytics processes Improve
Budgeting Consolidations DW Forecast Improve Scenario

Talent investment Supervisory rotation program, accounting resource pooling

21 Timeframes are approximated, within ½ year © 2011 IBM Corporation


As technology and operating model methodologies have matured,
the transformation timeframes have shortened Technology
Process
Data & Analytics
Op Model

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

ERP Planning Improve
Common processes Improve
Planning CoAs, Data model Dashboard DW, Reporting, BI
Shared services Add responsibilities, benchmarking Improve
Functional
Talent development
model
ERP
Common processes
DW, analytics
Shared services
Attract and retain talent for growth Degree programs

ERP Enhance
Common processes Improve
• Enterprise-wide
CoA, common data definitions Forecasting Improve
data warehouse
Shared services Stabilize Improve
Restructure Competencies, succession

ERP in phases by geo
Common processes
Reporting, Analytics
Shared services Redesign Outsource
Culture of continuous improvement, people talent development

ERP
• GL Consolidation Common processes
• SSC for payroll,
property, general
Planning Plan/Forecast
z
Operational Analytics Other Analytics
accounting Outsourcing selection & transition
People



Even among smaller companies or those with different catalysts, the
starting point is technology and process Technology
Process
Data & Analytics
Op Model

2004 2005 2006 2007 2008 2009 2010

ERP & Hyperion Merger Migration to ERP
Common process integration Process migration
Planning Planning, analytics and scorecard models
SSC planning SSC implementation
Align behaviors with scorecard
Rotational program for finance staff

Global ERP
MIFA, Six Sigma, benchmarking, Mgmt by Process Improve
• Integrated ERP
• Shared Services Cockpit
Center Global
SSC
Verticalize Recognition, succession, Finance attributes Improve

Standardize systems, implement ERP Advanced
analytics
Process standards, control
Build the weaknesses, fast close, SOX “GL Excellence”
Finance
Align Organization Finance SSC Decision Support
Team
Common rptg. SAP B/W Common Analytics
MBA prgm. L.D. & Emp. Dev programs

ERP & Ops system

New Leadership
Finance & Ops
Staff
Planning Projects Multi-function SSC
& Backfill Common Dashboard &
Reporting
People

Hyperion

finance (WCF)
• ERP

World class
• Data warehouse Benchmarking Kaizen

vision
• Common processes COE
• Take back BI BI Planning,
technology SSC Platform visualization
People



All participants share a number of leading practices across the five
transformation levers which enable better performance

Common Practices of Value Integrators
Workflow-enabled single instance financial
Single version of the financial truth
Technology system (General Ledger, transactions)

Process ownership by super process World class practices
Process

Operating Model
Advanced alternative delivery models Higher focus on analytics and insight

Data warehouse coupled with automation
Data & Analytics
Enterprise performance dashboard
of data, business rules engine (ETL)

People

Talent and leadership development with
High performing organization
cross-pollination with the business



Technology enablers mitigate structural complexity, reduces costs,
enables process transformation and improved analytics

Technology: Workflow-enabled Single Instance Technology
Objectives Outcomes / Benefits
• Institutionalize and sustain transformation Strategic Operational
• Reduce application, integration and data complexity • Mitigate complexity • Lower technology
• Increase automation • Scalability / variabllize maintenance costs
• Common data and information definitions technology costs • Real time / near real time
– Single source financial data • Enable world class practices information updates
– Single source of operational data • Enable a scalable operating • Increased self service
• Process automation through workflow model • Automated processes
• Improved controls through automation • Single version of the truth
• Improved performance reporting with data warehouse
and modern BI tools

Enterprise Examples
Air New Zealand Hays Kuehne + Nagel
• Better systems management, governance • Reduced technology complexity • Reduced technology complexity with a
and meeting business requirements • Single front-office platform (BOND) common operational and financial platform
• Single back-office platform (PeopleSoft) (Custom)
Celanese
• Mitigate technology complexity IBM Statoil
• Reduced costs • 70% reduction in finance applications • ERP (SAP), data warehouse and enterprise
(145 to 44) dashboard aligns strategy, metrics and
Highmark • 91% reduction in finance data centers behaviors
• Reduced system maintenance costs (67 to 6)
• Faster delivery of financials



Process transformation drives common, global, standard practices,
establishes accountability, improves controls and drives efficiency

Process: Process Ownership & Excellence
• Standardization Strategic Operational
• Scalability • Increased speed, efficiency, • Up to 80% faster period close
• Efficiency accountability and • Cost of Finance < 1% of
• Accuracy transparency revenue
• Accountability • Improved controls and risk • Process efficiencies up to
• Transparency management 50%
• World class practices • Scalability / variabilize • Headcount reductions up to
• Cost savings operating costs 50%
• Operational improvements
• People / culture change towards continuous improvement
philosophy

Enterprise Examples
Air New Zealand Dublin Airport Authority Rhodia Brazil
• Cost of Finance <1% • Reduced headcount by 46% • 30% reduction in Finance FTE
• 80% improvement in DSO
Bank of New Zealand IBM • World class processes
• Cost of Finance <1% • Reduced finance costs by 43%
• Reduced finance FTE by 46% Isetan Mitsukoshi
Celanese • Reduced close time 62% from 18 to 7 days • Faster close cycle
• 80% reduction in time required to close the • 50% reduction in staff
books • Improved cash management
• 48% reduction in audit fees • Improved vendor leverage



The operating model institutionalizes and sustains the
transformation, creates service scalability and variabilizes costs

Operating Model: Alternative Delivery Models
• Scalable Strategic Operational
• Globally consistent • Scale economies • Up to 50% reduction in
• Optimized • Variabilized cost structures / headcount
• Right-shored / right-sized Scale (up and down) • Up to 60% reduction in
• Cross-functional / cross silos • Sustained, high levels of transaction processing costs
• Service oriented customer satisfaction • Shift resources to COEs
– Service level agreements • Shift resources to lower cost
– Governance model shores
• Improved measurement and monitoring of processes
• Implement continuous improvement methods

Enterprise Examples
Adani Group Celanese IBM
• Scaled Finance operations and analytics to • 20% reduction in total finance costs • Migrated 42% of resources to regional
support and enable sustained growth • 98% reduction in the number of late closing centers, centers of excellence
entries and errors • Planning Centers of Excellence
Bank of New Zealand • Low-level business planning and analysis
• Business Intelligence center of excellence activities to SSC Statoil
for the bank • Enterprise-wide standard processes and
Hays service delivery through multi-function SSC
Dublin Airport Authority • Multi-function SSC
• Multi-tower SSC (Finance, HR, • 50% reduction in headcount Williams
Procurement, Business Services) • Labor arbitrage via India location • Outsource to 3rd party with strong
governance model and reduced G&A costs



Analytics depends on a foundation of standard processes and
common data definitions, enabling a single version of the truth

Data & Analytics: Data Warehouse + Automation of Rules Engine
• Actionable analytics • Reduce manual Strategic Operational
• Enterprise performance involvement in data • Greater focus on action • Greater speed in production
dashboard sourcing, cleansing, versus analysis of information
• Operational dashboard correction and • Aligned view of Strategy and • Analytical truth
• CFO dashboard reconciliation Performance • Performance headlights
• Single version of the – Automated business • Outcome based analytics • Improved operational
analytical truth rules gateway focus analytics – DSO, cash
• Data governance • Align activities, management, controls fraud
• Common data definitions performance, behaviors • Improved performance
• Integration of operational, and strategy analytics – growth strategies,
financial and risk metrics capital investments, M&A

Enterprise Examples
Adani Group Hays Statoil
• Improved data integration and accuracy • Dashboard drives vastly improved front- • Enterprise dashboard rolls up 1,100
office operations "ambition to action" performance goals
Air New Zealand into Enterprise Strategy
• Confidence in information IBM
• Single source of the truth • Self service of Finance data (CFO Portal) Williams
• Increased Speed in decision making • Decision support 70% of Finance activity • Highly accurate and predictive cash
management and forecasting
Celanese Isetan Mitsukoshi • Streamlined budgeting, planning and
• Improved data transparency for investors • World class retail store and customer forecasting
and for internal business decision-making analytics



People are essential however their effectiveness and behaviors are
dependent upon the controls, processes, data and analytics

People: Talent and Leadership Development
• Develop higher order skill sets Strategic Operational
• Build analytical and business knowledge • High performing workforce • Lower attrition rates /
• Develop leadership • Reduced risk retention
• Attract and retain talent • Behavioral alignment to • More time spent on analytics
• Develop succession plans strategic goals • Less time spent on
transaction processing

Enterprise Examples
Bank of New Zealand Celanese Rhodia
• Scorecard for all employees (financial • MBA leadership recruiting program, with • Finance resources are oriented by
performance, customer satisfaction, two 1 year rotations (finance & business) process with emphasis on servicing the
continuous improvement, employee with 3rd year MBA recruit’s choice business
satisfaction (managers)) • Employee Career Development (Top 100 • Formal program of recognition
• Top talent is a recent action – Top 9 include CEO review) goals and career • PPDS (People Plan and Development for
• Quarterly succession planning is done development (10% formal, 90% O.T.J. Succession) conducted annually
down to a layer below leadership team • Leadership Development Program • 20 attributes worldwide for Finance (what
• Focus on improving people management includes annual review process, individual services does Finance provide) and asked
skills (e.g., forums sponsored by HR) development planning, leading to career the business to evaluate Finance on these
• Just rolled out capability cards which progression, leadership and succession attributes to identify gaps
provides success profiles for key roles planning



Each of our participants have driven success across these prevalent
levers

Summary of Enterprises by Lever
Alternative Delivery Models
Data &
Enterprise Technology Process Transaction Decision Support Analytics People
Adani Group SAP Mostly achieved Enterprise-wide SSC -- Enterprise-wide Learning center / Institute with a degree
program

Air New Zealand PeopleSoft Enterprise-wide Enterprise-wide SSC -- Enterprise-wide Competencies in SSC

Bank of NZ SAP Partially achieved Enterprise-wide SSC BI COE Enterprise-wide Top 9 talent; capability cards

Celanese SAP Mostly achieved Regional SSCs Some planning & Enterprise-wide Cross-pollinate with business; clear career
analysis to SSCs paths

DC Water Lawson Enterprise-wide Enterprise-wide SSC -- None Focus on top tier managers

DAA Oracle Enterprise-wide Enterprise-wide, multi- Some budgeting to Enterprise-wide Job rotations across Business Units; unique
tower SSC SSC skills in Finance used by business

Hays plc PeopleSoft Mostly achieved Regional SSC Some front-office Enterprise-wide Top 50 talent and resulting compensation

Highmark PeopleSoft Mostly achieved Enterprise-wide SSC -- Enterprise-wide Resource pooling; supervisory rotational
program

IBM SAP (in Enterprise-wide Regional SSCs Planning COEs Enterprise-wide Career focus to develop finance staff as
process) trusted advisors

Isetan Mitsukoshi Oracle Enterprise-wide Enterprise-wide SSC -- Enterprise-wide New hire rotations across business

Kao Corporation SAP per geo (4) Enterprise-wide Enterprise-wide SSC + -- Enterprise-wide Cross pollination of Finance and Business unit
Outsourcing staff as a result of BPO

Kuehne + Nagel ACON (custom) Mostly achieved Regional SSCs -- Enterprise-wide Formal high potential program

Rhodia Brazil SAP Partially achieved Regional SSC -- Enterprise-wide Business evaluates 20 Finance attributes

Statoil SAP Enterprise-wide Enterprise-wide, mult- Control & risk, decision Enterprise-wide Enterprise dashboard with 1,100 “ambitions to
tower SSC support in SSC action” aligned to individual performance
objectives

The Williams Companies Oracle Enterprise-wide Outsourcing -- Enterprise-wide New succession planning



The most prevalent transformation path is to move up (build
commonality) and then right (invest in analytics & consultative skills)

Path to Higher Value

Advanced Data warehouse Advanced
alternative coupled with alternative Talent and
delivery models automation delivery models leadership
for transactional of data, business for decision development
activities rules engine support

High

Process
ownership by
super process
Finance
Efficiency

Workflow-enabled
single instance
technology Low

Low High
Business Insight



In the future, each of the Value Integrators will continue to drive
improvements across the five transformation levers

What’s Next
Higher

Finalize ERP implementation Update technology Simplify / standardize technology
Technology

Further simplify / standardize processes Drive continuous process improvements
Process
Maturity

Operating Model
Add functions into SSC Optimize delivery models Continue to deploy / evolve

Data & Analytics
Improve business intelligence Enhance planning Leverage performance dashboards

People

Attract / retain talent Develop leadership / career paths Conduct analytics training

Lower

Contents






Many found that planning needs to be transparent, holistic and
contextual and implementation requires ownership and speed

Transformation – Lessons Learned

Planning Implementation

Transparency Speed and resolve
Paint a clear end-state picture so that everyone Secure effective facilitation and strong
can internalize it and link changes to future governance
benefits Set aggressive deadlines and prioritize forward
progress
Clear communication
Communicate, communicate, communicate
Ownership and understanding
Holistic Secure executive level leadership and
Approach change management holistically sponsorship
Think ahead to information management and Increase executive understanding of what they
reporting are gaining versus losing (e.g., the size of the
Incorporate into initial planning and scope opportunity)
Drive early wins to garner respect and overcome
Contextual, workable and timely
initial skepticism
Account for pre-existing business conditions
since there is more than one finance
transformation path These are typical success factors. Are there
any that stood out for the Value Integrators?


The distinguishing success factors are the soft side of people and
culture

Distinguishing Success Factors

Strong resources at an executive and project level

Full time core implementation team containing some of
the top talent

Execution focus

Culture of continuous improvement



These Value Integrators exemplify strong executive sponsorship and
key project leaders

Distinguishing Success Factors: Strong Resources

Built the leadership team in Finance (8-12 resources) to drive
transformation and put these people in place to run the future organization

Brought in first top management and key first level managers to drive the
transformation

Brought in key hires (e.g., head of SSC)

Appointed new Group Finance Director with significant experience, new
head of SSC, new CIO and identified 25 top staff who could drive change

Leveraged the knowledge and experience of a third party advisor



These Value Integrators dedicated full-time resources to
transformation

Distinguishing Success Factors: Full-time Team

Had little traction with transformation with part-time resources; brought in
full-time resources to drive the workstreams and a full-time program
manager

Put the best people on the most important projects vs. who is available

Recruited in on contract to back-fill existing roles
Found some new stars amongst younger staff and from amongst more
experienced staff found people who thrived in a focused project

Dedicated 25 full-time resources to drive change and back-filled their prior
roles

Dedicated full-time resources to transformation to maximize benefits



These Value Integrators have an intense focus on execution

Distinguishing Success Factors: Execution Focus

Embraced change

Set stretch but achievable goals to provide a sense of urgency with clear
metrics and progress tracking. Dealt with resources that could not
execute immediately

Built team that could drive change, held ruthless Steering Committee
meetings, and dealt with resources that did not deliver

Accepted change with open-minded viewpoint

Demonstrated a willingness to explore new functionality, technology, and
process improvements with third-party provider to enable better
performance



These Value Integrators have put in a culture of continuous
improvement

Distinguishing Success Factors: Continuous Improvement

Six Sigma

Kaizen

Leading method for evaluating and implementing continuous improvement
opportunities

Continuous improvement culture

Six Sigma – large percent of staff are green/yellow belts


Transformation Considerations

Base the business case on broader enterprise benefits

Follow the “playbook” suggested by the 15 case studies

Leverage your best people and dedicate them full-time to transformation

Drive greater transparency through commonality before improving insight

Implement sustainable technologies

Relentlessly execute

Promote an improvement culture across the enterprise


IBM Journey To A Value Integrator

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (17)

Similar a IBM Journey To A Value Integrator

Similar a IBM Journey To A Value Integrator (20)

IBM Journey To A Value Integrator