The Leading Global HR Software and Services Provider

Stuart Ross, CFO, NGAHR

Vienna, 21 November 2017

We Make HR Work Better

NGA HR Introduction

3

NGA Makes HR Work Better

Transformation to

Digital HRFocus on HR and

Payroll

We solve critical business challenges of

cost, compliance & quality through HR software and

services founded on proprietary technology and

longstanding partnerships

In doing so, we make our clients better employers

and we make HR work better

4

4

NGA HR by Numbers

3m+employees served by NGA HR

100+

Working with

5,700employees globally

1,000+HR system implementations

£300m188

Providing HR &

Payroll services in

5HCM platforms

on which NGA

can deliver HR

services

25+1 out of 5of Fortune 500 companies

countries

languages

supported in

our HR service

centers

4business lines

HR Technology

Consulting

HR Application

Maintenance

Payroll

Outsourcing

HR Outsourcing

HR BPO &

BPaaS

clients

35Offices & centres in

countries

Annual revenues

Organise to Win

6

6

Background, objectives and approachBackground

• Some foundations in place to transform the Finance function

• Migration to SAP and the transition to the Shared Service Centre (SSC) delivery model partially executed

• Need to focus on transforming Finance to better serve our Customers

Objectives

• Implement a Global process centric approach to process management and controls

• Better exploit the SAP platform

• Simplify the way in which we manage global deals

• Improve the quality and timeliness of information

• Increase productivity

Approach

• Carried out 10 Customer and 10 Finance Leadership interviews

• Facilitated the review of the current accounting model supporting Global Deals, or Enterprise customers

• Carried out the activity and benchmark analysis across the Global Finance organisation

• Assessed the maturity of the Cochin and Granada SSC

• Reviewed the Finance operating model

7

Finance scope

7

X.x Manage quotations

2.2 Manage sales orders

3.2 Manage transactions &

project accounting

2.3 Manage invoices

2.4 Manage accounts

receivable (AR) & collections

Global Deal Management (Illustrative)

X.x Manage sales contracts

Le

ve

l 1

Le

ve

l 2

1.1 Maintain supplier master

data

1.2 Order goods & services

1.3 Manage accounts payable

(AP)

1.4 Manage expense

reimbursements

1. Purchase to Pay (PTP)

2.2 Manage sales orders

2.1 Maintain customer master

data

2.3 Manage invoices

2.4 Manage accounts

receivable (AR) and collections

2. Order to Cash (OTC)

6.3 Maintain fixed asset accounting

policies and data

6.1 Manage capital planning

6.4 Perform fixed asset accounting

6. Manage Fixed Asset Accounting

4.1 Develop tax policy and plan

4.2 Prepare tax returns

4.3 Handle tax payments

4.4 Manage tax controls and compliance

4. Manage Taxes

3.2 Manage transactions &

project accounting

3.3 Perform business unit

close and group consolidation

3.4 Perform financial reporting

3.1 Maintain policies and master data

3. Record to Report (RTR)

5.1 Manage capital markets &

funding

5.2 Manage cash & liquidity

5.3 Manage treasury

operations & settlement

5.4 Manage treasury & hedge

accounting

5. Manage Treasury

7.1 Manage financial budgets

7.2 Manage financial forecasts

7.3 Perform management reporting &

analysis

7. Planning & Management Accounting

7.4 Support decision making

8.1 Manage payroll

operations

8.2 Fulfil local obligations

8.3 Handle payroll enquiries

8. Manage Payroll

6.2 Perform capital project

accounting

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Executive summary: key findings# Topic Key Findings

1

Customer and

Finance

Leadership

interviews

Customers appreciate the talent and work ethic but are frustrated by the reporting complexity, lack of

financial transparency and limited commercial forward looking insight

Leadership believes the team has the right skills and business knowledge but is distracted from adding

value due to having to produce and validate large quantities of historical data

2

Global deals

accounting

model review

There is an opportunity to shift focus to overall contract profitability, optimise use of off-shore

resources and reduce internal conflicts between lines of business by taking more of a customer centric

view for global deals

A simplified trading model combined with a better approach to cost accounting and allocation should

improve transparency of contract profitability

3Activity and

cost review

A large number of people are working on transactional activities : we have productivity issues with 350

heads in Finance

Despite the resource, availability of information is poor

Not enough time is spent on value add activities due to having to collate, validate and consolidate the

numbers

4

Shared Service

Centre

capability

review

Good management and delivery capability exists with a focus on incrementally improving the processes

More time should be invested in building relationships with SSC customers to improve the quality of support

they receive and to increase confidence in the numbers

5

Current

operating

model

assessment

summary

Move to end-to-end process towers, clarify accountability and improve spans of control

Offshore delivery model is not fully exploited or consistently leveraged as most activity is duplicated in

each region / country

It costs too much to service the information needs of our customers who often request the same information

re-cut in different ways

Investing in technology to automate cost accounting, billing and contract analytics/reporting will simplify the

administration and reduce Finance costs

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9

Process activity analysis: key insights

We have a productivity challenge as too many

people work on transactional activities …

… and we have not fully exploited the offshore

delivery model as we still perform transactional

activities across the globe

As a consequence we do not spend enough

time on value add activities …

… and it costs too much to service the reporting

and information needs of our customers

We do not have the right mix of

people

x3 P2P FTEs

x3 O2C¹ FTEs

x4 R2R FTEs

259

7223

8824

Note: 1) Does not include

‘Manage Sales Orders’

UK SSC EU NA APJ

P2P

OTC

RTR

Taxes

Treasur

y

FAA

FP&ALegend

< 2 FTEs

2 < FTEs < 5

> 5 FTEs

1

2

3

4

5

Our percentage of FP&A labour

cost over revenue …X.X%

0.3%… compared to a benchmark

(bottom performers) of …

Local Support

Transactional

Business Partner

12%

68%

21%

5%

55%

40%

We have too many people

focusing on local support

… and on transactional activities

But not enough on Business

Partnering

NGA

NGA

NGA

Legend

Northgate

Best practice

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10

Benchmarking analysis: key insights

More vendor invoices should

be processed by the Northgate

FTE when compared to

benchmark data

x4

P2P

% customer invoices

generated automatically

compared to a

benchmark of 87%

O2C

Number of natural, active

general ledger accounts

compared to a benchmark of 1k6k

R2R

Number of Northgate banks

compared to a benchmark of 6 32

Treasury

Number of business

days of the budgeting

process cycle compared

to a benchmark of 98

FP&A

Average number of forecast

iterations per final forecast

published compared a

benchmark of 4

5

FP&A

156

7%

Benchmark data refer to the bottom

performers

11

Dimension Limited Leading

11

Shared Service Centre maturity assessment

Strategy

Service Delivery

Organisation

Operations and

Technology

Potential Opportunities

• Mission/vision: articulate these and use to drive culture and behaviour across the organisation

• Scope of services: standardise scope & geography and move up value chain

• Location of services: reduce the use Granada for activity that requires non-English voice or close

• Business planning: define a three year strategy and updated annually

• Value: Clearly articulate SSC value and develop the SSC business case into a “living document” and

integrate into planning process

• Performance management: agree SLAs with customers and enhance KPI reporting so it is relevant

• Governance and issue mgmt.: manage issues proactively and hold the business to account

• Customer/Vendor relationship mgmt.: better align SSC to customers, improve communication with

them and invest in developing closer working relationships – seen as critical to future success

• Sourcing: review the strategy regularly and identify opportunities where outsourcing adds value

• Continuous improvement: formalise an approach, appoint a team leader and embed CI into culture

• Structure: move to end-to-end process towers, clarify accountability and improve spans of control

• People mgmt.: focus on offering higher value roles to enable retention of employees

• People development: improve ongoing training opportunities and define clear career paths

• Culture: improve etiquette and develop idea of being equal partner with business, embed culture in

managers / team leads

• Recruiting: focus to evolve to cover higher value roles

• Process: there is still significant standardisation and re-design required

• Technology: integration and/or consolidation of satellite systems into SAP is needed

• Controls: Risk management could be more formalised. There is an opportunity to expand BCP

• Programme management.: This could be expanded and the tools defined

• Recruiting: focus to evolve to cover higher value roles

• Facilities and infrastructure: explore leveraging delivery centre infrastructure

12

Finance vision and strategy

12

Provide financial leadership in working with our customers to determine strategic business

direction

• People empowered to do the right thing• Collaborative working environment• Open and honest culture

Provide our customers with the right information at the right time to make the right

decisions

Our vision (Where we want to be) Our mission (Why we exist) Our values (What is important to us)

i. Centralise / consolidate

and source activities efficiently and effectively across the finance organisation

ii. Apply a standard organisation structure across LOBs, segments and regions where practicable

iii.Ensure sufficient flexibility and scalability to support growth and changes in future business

requirements

i. Implement a robust and

consistent controls environment across all processes, automating wherever possible

ii. Apply an organisation wide governance framework to ensure a transparent approach to compliance

with company policy

i. Improve / optimise and,

where appropriate, standardise Finance processes

ii. Enable global best

practices and internal excellence across processes

iii.Establish clear end to end

accountability for Finance processes and performance improvement

i. Enable Finance to be an

effective business partner supporting decision-makers in delivering our business objectives, including:

• Improving EBITDA and cash flow

• Supporting profitable growth

i. Create group wide career

pathways and development opportunities that enable us to attract, invest in and retain top talent

ii. Work as one team to facilitate a culture of continuous improvement and innovation, with a

focus on increased collaboration

iii.Invest in and promote our future leaders from within

the organisation

• FTE per $bn of revenue

• Successful internal &

external audits• Regulatory compliance

Process compliance

• Transaction processing

KPIs

• Internal customer

satisfaction scores• Transparency of

performance

• Staff attrition

• Employee job satisfaction

1. Clear efficient structure with the right skills and ownership in

the right place

2. Robust compliance and controls

3. Re-engineer processes to deliver

value

4. Effective business partnering to support

our customers

5. Clear strategy to attract, retain and

develop the best people

i. Deliver world class

information and analysis to our stakeholders, available where and when needed to support improved data-driven

decision making

ii. Eliminate the need for manual intervention

through systems enablement and minimising local non-standard tools and technology

iii.Work with IT to deliver value for money IT solutions that seek to re-

use our existing capabilities

• Timeliness of

information• Level of automation

6. Systems that enable our people to be as

effective as possible

Critical components (What we need to do)

Strategic objectives (How we want to get there)

KPIs (How we measure success)

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13

• Standardise & automate core processes to improve productivity whilst maintaining a consistent overall approach

• Avoid duplication of processes and effort

• Single centrally managed budget with all Finance resources aligned to a global Finance Organisation

• "One Finance Function" with combination of specialists, shared services and regional representatives where appropriate

STANDARDISATION &

CENTRALISATION

FUNCTION & ROLE

CLARITY AND

ACCOUNTABILITY

END-USER SERVICE

& QUALITY

ABILITY TO DRIVE

INSIGHT

COST & SIMPLICITY

• Align Business Partner resources to support regions and product portfolios

• Highly transactional, administrative process moved into shared services

• Develop clear roles, responsibilities & objectives

• New model to enable us to focus on supporting cost efficiently

• Engage with global Finance stakeholders and customer groups during the design and sign-off of future model

• Local resource to pull on specialist advice

• Governance – regular check-in with the business via defined mechanisms

• Deliver self service solutions where available to drive efficiencies and enhance service delivery

• Reduce cost on transactional services through shared services, automation and process standardisation

• Relocate Finance activities to lower cost locations where possible

• Increase proportion of spend on higher value add services

• Enhance use of technology and process automation to reduce reporting effort

• Regular process reviews to standardise processes & reduce reporting time

• Structured approach to data management to drive increased data quality and one version of the truth

• Enhance reporting and management information to drive decision making

THEME PRINCIPLES

Finance transformation – design principles

14

Design approach: high level project timeline

14

Step 2:

Assessment and Initial Design

Step 4:

Roadmap Design

Step 3:

Detailed Solution Design

Step 1:

Planning and Scoping

July 2015 August 2015 September 2015 October 2015

• Final project scope and interview schedule determined

• Advice and recommendations formulated for management regarding key focus areas for the Finance target operating model

• Preliminary assessment of the current state of Finance and key challenges completed

• Results of stakeholder interviews documented

• Design principles refined• High level target operating

model options identified• Gap analysis completed and

high level hypotheses drafted

• Process taxonomy documented• End-state service delivery model

documented• Finance organisation chart

documented• Target Finance systems architecture

documented• Draft initiative inventory

documented with preliminary prioritisation

• Business case impact summary documented

• Implementation roadmap documented

• Risk/prioritisation assessment documented

• Project charters for key initiatives documented

• Programme governance structure documented

• Programme change management and communications plan documented

15

Plan on a page

15

Area Activity Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17

RtR ICBU Journal Template Change

RtR Cash Flow

RtR CoA, PC, CC, BL & Vert's (incl PLM)- Data

RtR Revenue Order Book

RtR Non-SAP TB upload

RtR Enhance Group Recociliation

RtR Payroll Integration (not OTW)

PtP Travel & Expenses - Concur

PtP Purchasing - Ariba

PtP Vendor Invoice Approval

PtP Digitising the Receipt of Vendor Invoices

Contract Mgt Contract Mgt

OtC Finance Portal

OtC Managing Billing Policy & Process

OtC Managing Collection Policy & Process

OtC Bad Debt provision (report + program to post)

CATS/MRS/CPM Time, Resource and Project Management

BPC Consolidation

BPC Budgeting & Forecasting

BW BW / BOBJ Reporting

R1 R2 R3 R4 R5

Structured into five releases to deliver the technology enablers that support the transition to the

new operating model and the underlying business case.

16

12 month headcount plan: region view

16

Future

State

Current

State

Total FTE 326 188

26

36

36

25

Finance Transformation

20

UK

Europe

North

America

APJ

Granada

Kochi 183

5

15

15

135

7

11

Salary costs 10.3m 5.7m

26

36

36

25

19

183

May

26

36

36

25

19

190

Jun

26

36

36

25

19

196

Jul

22

20

26

16

14

191

Aug

22

20

26

16

14

178

Sept

22

20

26

16

13

175

Oct Nov

16

6

18

7

11

168

Apr

26

36

36

25

20

183

26

36

36

25

20

183

Mar Jan

16

6

18

7

11

138

16

6

18

7

11

141

Dec

16

6

18

7

11

135

Feb Apr

15

5

15

7

11

135

May

15

5

15

7

11

135

325 333 338 290 276 272 225326326 195199 193 188 188

10.3m 10.2m 10.2m 8.9m 7.8m 7.7m 6.3m10.3m10.3m 6.0m6.0m 6.0m 5.7m 5.7m

16

6

18

7

11

135

Mar

193

6.0m

• Wave 1 – all OTC, PTP and RTR transactions and activities

• Wave 2 – BAU accounting activities

• Wave 3 - Complex Accounting and FP&A activities

• Waves are driven by level of complexity in processes and technology implementation plan

17

12 month headcount plan: process view

17

Future

State

Current

State

Total FTE 326 188

90

89

30

13

Finance Transformation

9

PTP

OTC

RTR

Treasury

Taxes

FAA

FP&A

Other

3

52

33

48

11

27

3

10

9

46

28

ELT+1 7 7

Salary costs 10.3m 5.7m

88

86

30

13

53

9

4

35

May

7

86

86

30

13

50

9

4

44

Jun

7

83

86

30

16

52

9

4

51

Jul

7

59

73

22

16

54

10

4

48

Aug

7

55

68

17

12

54

10

4

48

Sept

7

52

67

17

12

54

10

4

48

Oct

7

Nov

38

63

17

10

51

9

4

28

7

Apr

90

89

30

13

52

9

3

33

7

90

89

30

13

52

9

3

33

7

Mar Jan

30

48

11

10

51

9

3

28

7

33

48

11

10

51

9

3

28

7

Dec

27

48

11

10

51

9

3

28

7

Feb Apr

27

48

11

10

46

9

3

28

7

May

27

48

11

10

46

9

3

28

7

325 333 338 290 276 272 225326326 195199 193 188 188

10.3m 10.3m 10.2m 8.9m 7.8m 7.7m 6.3m10.3m10.3m 6.0m6.0m 6.0m 5.7m 5.7m

27

48

11

10

51

9

3

28

7

Mar

193

6.0m

• Centralisation and consolidation savings for transactional activities are realised as part of transitioning activity to GBS

• Standardisation and automation savings as realised according to the initiative implementation plan

18

18

Conclusions – so how did we do?

• Implement a Global process centric approach to process management and controls

• Better exploit the SAP platform

• Simplify the way in which we manage global deals

• Improve the quality and timeliness of information

• Increase productivity

• GBS established with Process towers for transaction processing, CoE for analytics, and governance

• SAP enhanced with integration of new systems, but full scope not yet realised

• On hold pending TP review -underway

• BOBJ and BCP implemented

• Onshore savings realised. Productivity improvements in GBS to be fully realised

Objectives Current state

Thank you

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