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BUSINESS FORECASTING AND INNOVATION FORUM 2015 September 17-18, 2015 – Boston, MA

September 17, 9:45 AM

Keynote: Becoming a Strategic Business Partner Building strategic partnerships with key stakeholders to become more effective leaders

Joe Mizerak, Director at Huron Consulting Group

Joseph Mizerak was most recently a Director at TIAA-CREF and led the Hyperion Strategic Finance initiative and the Integrated Planning Process. He has also managed the Hyperion Planning and Budgeting and Oracle Profitability applications and partnered with the SAS Activity-based Costing application.

Prior to joining TIAA-CREF in 2010, Joseph accumulated 16+ years of industry and consulting experience in financial and management consulting at a wide variety of large financial services clients. His extensive experience includes leadership roles at Bank of America, Computer Associates, Acorn Systems and PMG. Mr. Mizerak is also a 9 year navy veteran who served as a Radar Intercept Officer in the F-14A jet and instructed fellow officers in leadership training and development. Joseph graduated from Boston University with a Bachelors of Science degree in Business Administration. He also earned a Masters in Business Administration from the College of William and Mary.

View presentation online at: www.businessforecasting2015.com

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http://www.businessforecasting2015.com/

Becoming a Strategic Business Partner

September 2015

Joe Mizerak | Director

2

Agenda

1. Introduction

2. Critical Success Factors

3. Planning Process Assurances

4. Corporate Pressures

5. Planning Process Essentials

6. Planning Process – System and Reporting Considerations

7. Strategic Spend Process

8. Crunch Time

9. Key Stakeholders and Partnerships

10. Key Partnership – Strategy Team

11. Transitioning from Information Provider to Strategic Partner

© 2015 Huron Consulting Group. All rights reserved. Proprietary & Confidential.

Historical Planning Quotes

“If you don’t know where you are going, you will end up someplace else.”

-Yogi Berra

“Give me six hours to chop down a tree and I will spend the first

four hours sharpening the axe.”

-Abraham Lincoln

“Adventure is just bad planning.”

-Roald Amundsen

“By failing to prepare, you are preparing to fail.”

-Benjamin Franklin

4 © 2015 Huron Consulting Group. All rights reserved. Proprietary & Confidential.

Introduction

• Since leaving the Navy, 70% in

consulting and 30% in industry

• 21+ years working in financial services

• Necessity of establishing strategic

business partnerships throughout my

career

UNITED STATES NAVY

Squadron Schedules

OfficerBank of America/

ABN AMRO

LOB Controller

TIAA CREF

Planning Director

HURON CONSULTING GROUP

Insurance Vertical Lead Director

5

Enhanced ability to drive

innovation and lead

cultural change

Greater understanding of

the current trends in

finance

Development of long-term

vision and strategy

frameworks

Transitioning from

information provider to

strategic partner


Critical Success Factors


Planning Process Assurances

1. Always dynamic – many moving parts, and personalities

2. Established policies and guides help

3. Business partner assistance is welcomed

4. Often simple, but often complicated

5. Requires executive approval, endorsement and internal cooperation

6. Sometimes contentious and not equitable in the minds of the businesses

7. But a needed financial measure in almost every industry…


Planning Challenges

1. Net Interest Margins and Net Earned Rates are Historically Low

2. Right-sized Growth Mode to Achieve Strategic Goals

3. Increased Competition

4. Regulatory Considerations

5. Product Diversification

6. International Market Volatility (China, Greece, Russia)

7. Future Cessation of Low Interest Environment by the Fed

8. Stagnant Domestic Growth


Planning Essentials

1. Year Round Process

2. Planning Calendar is Critical

3. Establishment of an Integrated Planning Committee

4. Business Planners/Lateral Planning/Systems/Prioritization

5. Exit Rate Analysis – HC and BAU Pressures and Business Growth

6. Strategic Spend Submissions


Planning Process

• Three Year Planning expense view

• Multi-year Strategic Spend Targets were also approved and honored

• Revenues and Flows - 4 Year views – Went to this view in 2013

• All - 10 Year views in Long Range Modeling

• Expenses for 2016- 2018 will be loaded into the Long Range Planning

Model and projected through 2025


Planning Process: System & Reporting Considerations

1. Can Multi-year Views be Supported in the Planning System?

2. Should the Application be Hosted On-premises or Via the Cloud?

3. How Easy Can Plan/Forecast Data be Entered into the Planning System by the Financial Analysts?

4. How Many Financial Drivers (Revenue/Expense/Other) Need to be Created and Supported in the

Planning System?

5. How Many Expense Allocations are Required? How Much Testing is Required as New Allocation Driver

Data is Introduced and Updated (i.e. square footage updates)?

6. What are the Key Integration Points and Timing Dependencies between the Various Management

Reporting Applications and the Planning Application?

7. How Easily Can Rolling Forecast Time Periods be Changed in the Application?

8. How Much Maintenance (Plan/Forecast) is Required on the System in Preparation for the Desired Plan

and Forecast Cycles?

9. What is the Best Reporting Tool to Support Executive/Board Reporting as well a Monthly/Quarterly

Reporting?

10. What are the Ideal Validation Options?


Strategic Spend Process

1. Business Case Submission Process

2. BC template redesign

3. Training

4. Submissions

5. Evaluation Process: grading criteria

6. Initiative Funding Process

7. Strategic Spend Pools

8. Strategic Spend Tracking and Monitoring


Planning Process: Crunch Time

1. BAU review and adjustment of the three year targets with executive

approval to start the process

2. Issuing of three year guidance- mid-August

3. Issuing of three year targets- early October

4. Planning application- schedule and dependency considerations

5. Board review and approval- November/December timeframe

6. Further planning refinements and details entered


Key Stakeholders & Key Partnerships

1. Planning and Forecasting

2. Strategy

3. Business Finance Officers

4. Business Planners

5. Technology

6. Strategy

7. Corporate Finance

8. Tax

9. Actuarial

10. Risk

11. Marketing


Key Partnership: Strategy Team

Strategy Team Involvement

This is the group where the vision supporting the plan needs to originate. The Strategy Team

needs to work in conjunction with all of the businesses to help shape the outer year plans, as well

as monitoring how the plan develops throughout the planning season.

• When is the right time to start these meetings?

• What are the desired outcomes?

• Who is involved in these meetings?

• How do you support and help each other?

• How are the planning decisions communicated?

• How is the strategy team involved?


The Transition: FP&A

Transitioning from Information Provider to Strategic Partner

1. How do we help you? Increased analysis at all segments of the forecast and

budget process- revenue and expense and flows and headcount checks

2. What trends are tracking in the Long Range Planning model?

3. How do our planning models help support and shape our strategy?

4. Are we on course to achieve our strategic objectives?

5. In what areas/products/key financial metrics are we ahead of our goals?

6. Where are there pressures?

7. How do we effectively remain on a continued growth trajectory (with internal

investments and/or capital expenditures)?

8. Have we effectively partnered with all of the critical internal organizations?


Questions & Answers

550 W Van Buren Street | Chicago, IL 60607 | (800) 229-8700

www.huronconsultinggroup.com

Documents

Keynote: Becoming a Strategic Business Partnerjpkgroupsummits.com/wp-content/.../09/AB104_Day1_945AM_Keynote… · Profitability applications and partnered with the SAS ... jet and