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OUR EXPERIENCES IN
BUSINESS PROCESS MANAGEMENT
P B BALAJIChief Financial Officer, Hindustan Unilever Limited
KEY MESSAGES
• Business changes are forcing finance to change its role
• To excel in our role we need to change the way we operate as Team Finance
• Mindset, Process, Structure, People and more
• There are a few obvious and a few not-so-obvious learnings from such transformations
14 Nov '14 Hindustan Unilever Ltd 2
BUSINESS IS CHANGING FAST
The VUCA World Global, the new backyard
Informed consumer
Disruptive Technology
New regulations& compliance
needs
Challenging times are here to stay
An interconnected world
Active conversations
Mobile, Social, Cloud, and…?
Governance is the bedrock
14 Nov '14 Hindustan Unilever Ltd 3
…& HENCE THE ROLE OF FINANCE IS ALSO CHANGING
Steward
Scorekeeper
Business Partner
Business Catalyst
Conscience Keeper
Focused on governance
Custodian of assets
Value protection
Diligent book-keeping
Accuracy Variance Analysis Management results Commentaries
Value Analysis
Understand value drivers
Decision support
Value Management
Information – Insights Analysis to Dynamic resource allocation
Strategic Influencing
Business Advisor
Value Creation
Now we need to perform ALL 4 roles with excellence
14 Nov '14 Hindustan Unilever Ltd 4
TO EXCEL, TEAM FINANCE NEEDS TO CHANGE THE WAYS OF OPERATION
Value Driver Mindset
Be the catalyst bringing insightful
analytics to the table
Flexible Organization
Drive agility and dynamic decision making in
business by reducing touch points
Standardized Processes
Drive growth and cost efficiencies by
simplifying and standardizing
Leverage Technology
Embrace technology and drive speed. Radically up
skill teams
Inclusive leadership
Harness synergy; Celebrate and drive
diversity
MINDSET STRUCTURE PROCESS SYSTEMS PEOPLE
14 Nov '14 Hindustan Unilever Ltd 5
SHARING A FEW OF OUR EXPERIENCES
Customer Schemes
Business Information
Supply chain servicesRecord to Report
& Payroll
Banking
Unilever India
Management Assurance
Order Management
Master Data Management
Customer Billing
Accounts Receivable
Stock accounting
EXTENSIVE OUTSOURCING FOOTPRINT
14 Nov '14 Hindustan Unilever Ltd 7
APPROACH TO FINANCE TRANSFORMATION
Finance Transformation
Program
Drive rigour in business cases
Standardiseprocess
3- Tier modelRisk Management
14 Nov '14 Hindustan Unilever Ltd 8
•Decentralised scanning•Paper Invoicing•Multiple Vendor Query
•Customer Delight
From To
•One Aligned Process and system • Global excellence
Diverse Process
Diverse Dataset
Diverse Systems
Dispersed Excellence
Diverse People
From To
CHANGING THE TRANSACTION PROCESSES
•PAYMENT ON TIME > 95%
•PURCHASE ORDER
COMPLIANCE >85%
Delivering
•AUTOMATED REPORTING
• WD3 REPORTING
•ZERO SURPRISES IN AUDITS
Delivering
14 Nov '14 Hindustan Unilever Ltd 9
1
ZERO BASED CONTROLS : FUTURE PROOFING BUSINESS
One Set of Controls
One Streamlined set of Financial Controls
globally
50% Automated controls
Maximise prevent controls, reducing the
cost of control
Centralized Monitoring &
Reporting
Exceptions Monitoring through Automated
Cockpit
Disciplined Gap Mitigation
Constructive approach towards Control
Health improvement
Standardize Centralize Automate Realign Process Reduce CostImproved Service
Level
Driving Value at lower costs
Audit Costs ↓ 25%; Improved hygiene;
Faster organisation
14 Nov '14 Hindustan Unilever Ltd 10
2
Faster, better decisions by exploiting information
Delivered by best in class…
Data Access Capabilities
Data MasterData
Information Gateway
Information Services
Standard Reports &
DashboardsOperations
HubAnalytics
Change Management & Governance
A high-performance,
globally consistent data
ecosystem
Easy access to standard reports,
executive dashboards and
information tools
Reliable, valuable, cost effective
information services and advanced
analytics
INFORMATION MANAGEMENT
14 Nov '14 Hindustan Unilever Ltd 11
3
• The Operations Centre in Bangalore is a key Building block of the I&A Strategy
• Information specialists capable of building, acquiring, and centralising tasks and
workloads and running them efficiently
• Continuously moving up the maturity curve “commodity” services to value added services
Deliver 1500
standard reports to
the business
Provides an
Information Gateway
for easy access
Supports business with
analytics offerings and
external insights
...while driving
Information
Simplification
INFORMATION OPERATIONS CENTREFUEL FOR GROWTH....
INFORMATION OPERATIONS CENTRE
14 Nov '14 Hindustan Unilever Ltd 12
3
A Sales tool which uses the Store specific data available from the DMS system to assist
distributor salesman to make every call , a sales call to help land 4P Perfect Stores
UNIFY DMS –Stores sales history of assortment ever sold in every outlet
Outlet Specific assortment and
quantity recommendation pushed into HHT
every day
Salesman executes assortment and quantity logic -
Delivering PERFECT STORES in every call
Back- end analytics to work out which SKU should be sold
in which outlet –TODAY !
LEVERAGING REAL TIME ANALYTICS
14 Nov '14 Hindustan Unilever Ltd 13
3
PEOPLE CHALLENGE
Talent attraction
Skill development
Career progression
14 Nov '14 Hindustan Unilever Ltd 14
BENEFITS
TRANSFORMATION BENEFITS
Nimble & Agile Structure
Process Excellence – Cost, Transparency, Productivity & Time
Speed to business
Autonomous & Automated Process : Indifferent to Increase in Transaction Volumes
Release of time & energy to effective business partnering
14 Nov '14 Hindustan Unilever Ltd 16
HOW HAS THIS BENEFITTED US
FTE Count
Transaction Processing
Costs
55
39
3129 28
2009-10 2010-11 2011-12 2012-13 2013-14
Annual Closing timelines
2011 2012 2013 2014
Payment on Time %
14 Nov '14 Hindustan Unilever Ltd 17
TRANSFORMATION LEARNINGS – OBVIOUS
Consolidation of processing locations – key to extract savings
Standardization of Process - key to efficiency gains
Marrying Organization need to Service Provider Capability important, Cost not the only driver
Retained Finance – Critical to retain tacit Knowledge
Roles & Responsibility documentation crucial
14 Nov '14 Hindustan Unilever Ltd 18
TRANSFORMATION LEARNINGS – NOT SO OBVIOUS
Never outsource a problem
Use careers in BPO to build talent
Getting business cases delivered is critical for quality as much as productivity
Put your best people on transformation projects
Be an idealist while dreaming but implement pragmatically
14 Nov '14 Hindustan Unilever Ltd 19
THANK YOU
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