ANAGEMENT CONTROLLERSHIP INNOVATION€¦ · 1 MANAGEMENT CONTROLLERSHIP INNOVATION Frédéric DOCHE...

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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

14

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 frederic.doche@conseil-dpc.com

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