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Webinar series focused on:
The Changing Role
of the Finance Team
Today we cover:
‘How to collaborate and devolve’
With a focus on the Budget, Planning &
Forecasting process
Introducing your hosts
• Trained and qualified with KPMG
• Worked in industry for 10 years
• Moved into consultancy in 1999
• Help companies improve their financial processes and information delivery
• Qualified Chartered Accountant
• Experience in audit and industry
• Experience of financial systems implementation and the use of technology
Mark Cracknell
ACA
Howard Lancashire
ACCA
Learning outcomes & agenda for today1. What is this webinar series about?
2. Webinar 1 summary
3. The cultural barrier
4. Reacting to change with a driver-based process
5. Self-service reporting and analysis
6. How technology supports you
7. Adding insight and value
8. Summary and key learning points
WHY? To help you understand the
changing role of finance and how you can
transform you and your team into strategists
Transform your team into strategists
Four key steps:
1. How you can create time to breathe? Webinar 1 focus – view on our website
2. How you prepare to be adaptable and agile? Webinar 1 focus – view on our website
3. Why collaboration and devolving is a good thing?This webinar focus!
4. How you can use your new time to add value and insight to your business? This webinar focus!
Visit our website hayne.co/hayne-white-papers/
Webinar 1 summary – How to create time, adapt and become agile
Key takeaways
• Automating some of the BP&F tasks will help create time for the finance team (and
increase control)
• Allows finance to be adaptable and agile – dealing with the fast changing environment
which we now find ourselves
• Provides a platform for the finance team to be more strategic
Utilising the right technology will help
transform your team from accountants to strategists.
Core financial processes
Close and consolidate
Budget, plan and forecast (BP&F)
Report, analyse and
disclose
HIGH impact on the
finance team and
the organisation as
a whole
Lets look at the BP&F process…
S&OPConnected
plansT/O =
Price X QtyP&L
+CF
P&L
FR
EQ
UE
NC
Y
C O M P L E X I T Y // D E P T H
Rolling
Continuous
Annual + W
Annual
Annual + Q
Annual + M
Financial Driver based Operational planning
Spreadsheets
Budgeting software
Enterprise Planning software
SS Threshold
BP&F Maturity graphhigh
highlow
Spreadsheet based
Technology based
Predictive Analytics
& Decision Optimisation
software
Cultural Hurdle
Why the Cultural Hurdle?
£ £
Sales 5,000
Cost of Sales 3,200
Gross Profit 1,800
Overheads
Wages and salaries 600
Rent/rates 200
Marketing 100
IT costs 60
960
PBT 840
Tax 160
PAT 680
P&L Account
Finance
Sales team
Ops team
HR team
Capex
Marketing team
5,200
Held accountable against 5,200
Disconnected
No accountability or ownership
Difficult to performance measure
Lack of trust in the process
andfinance
Overcome the cultural hurdle
If it exists, overcome the “cultural barrier” to increase the
trust in the finance team and process buy-in:
How?
Develop the process to encourage organisation wide accountability
and ownership
This can only be achieved through
Collaboration
Reacting to change using collaboration
“You need to be able to adapt to change quickly and
support new strategies such as new markets, new
products, acquisitions etc.
Your organisation will be looking to you and your
finance team to provide relevant data, insight and to
advise on strategy.”
BREXIT
Collaboration - a driver-based process
activities that take place in one
part of an organisation drive
actions in another
Need to react to change in business conditions in a co-ordinated
fashion
For example, the sale of a product
that drives fulfilment activities - either
direct (manufacturing) or indirect
(related HR costs)
Reflect operational
as well as financial
changes
Driver-based process
Sales
By customer
By product
Volume Sold
Price
By product
Volume Made
Factory A
Volume Made
Factory B
Manu Costs
Factory A
Manu Costs
Factory B
Cost of
Sales
HR
£ £
Sales 5,000
Cost of Sales 3,200
Gross Profit 1,800
Overheads
Wages and salaries 600
Rent/rates 200
Marketing 100
IT costs 60
960
PBT 840
Tax 160
PAT 680
P&L Account
Mrkt
Indirect
Direct
Impact on financials
Sales
Cost of
Sales
£ £
Fixed Assets 5,000
Stock 1,000
Trade debtors 2,200
3,200
Trade creditors 900
Other creditors 300
(1,200)
Net Assets 7,000
Share Capital 500
P&L Reserves 6,500
6,500
Balance Sheet
£ £
EBITDA 1,000
Movements in WC
Stock 26
Debtors 540
566
Capital expenditure 250
Cash Flow
Capex
£ £
Sales 5,000
Cost of Sales 3,200
Gross Profit 1,800
Overheads
Wages and salaries 600
Rent/rates 200
Marketing 100
IT costs 60
960
PBT 840
Tax 160
PAT 680
P&L Account
Results of a driver-based process
Quickly see the impact on the company’s revenues, expenses and cash flow
of changes e.g. sales volume or price
The organisation can work interactively, exploring
different operating plans to adapt faster to changes
Collaboration is essential to achieving
this
What is the role of technology?
Connected models
Organisation-wide view of the whole model
Multi-user collaboration
Driver-based modelling
Self-service reporting and analysis
Technology is the enabler to this
Technology in actionIBM Planning Analytics
• Speed: Automate plans, analyses and reports to drive efficiency
• Agility: Adapt plans and analyses to changing business conditions. Align financial plans with corporate objectives
• Foresight: Make analytics available to everyone, so they can explore and visualise data
TM1
DEMO – driver based HR planning
What about Devolvement?
encourages organisation wide accountability and ownership
Involvement of the whole organisation
in the budgeting process
Two aspects:
Self-service reporting and analysis of performance
DEMO – self-service reporting
Benefits of technology
• Multi-users
• Security
• Driver-based
• Organisation-wide view
• Immediate update
• Scenario / what-if
collaboration devolvement
• Self-service reporting and analysis
Adding insight and value
Using the time available
Predictive analytics
Decision Optimisation
Analysis – turning data
into information
adaptable and agileCreated time
Collaborated and devolved
Predictive Analytics
Uses many techniques from data mining, statistics, modelling, machine learning, and artificial intelligence to analyse current data to make predictions about future
Replaces ‘gut feel’ with science
Smart budgetingDriven by Technology
Decision Optimisation
Finding the best solution from all feasible solutions
Pricing optimisation e.g. airlines
Stock replenishment e.g. which stock
moves to which store
Staff rostering e.g. hospitals and care
homes
Driven by Technology
Zara Case Study
Key takeaways…
• Collaboration is essential to developing a driver-based process that allows you react to
change in business conditions in a co-ordinated fashion
• Allows finance to be move to the heart of the organisation
• Provides a platform for the finance team to devolve activity and responsibility to the
business users – taking the pressure off finance
Utilising the right technology will help transform your team from accountants to strategists.
What next?
Now you have
1. Created time
2. Become more agile and adaptable
3. Understood the benefits and how to Collaborate
and Devolve
Create a strategy…HAYNE can deliver a complimentary workshop which will aid your strategy creation.
The HAYNE 3D Vision workshop – Discover, Develop, Design.
We can help you take manageable steps up the BP&F maturity graph
Thank you for listening
Questions
2. Request a DEMO of PA
Want to see how it works yourself? We can arrange
an in-depth demo of IBM Planning Analytics
1. FREE 3D Workshop
We will take you through the 3 Ds – Discover, Develop,
Design – helping you to take the right next step.
hayne.co/hayne-vision/
3. Discuss your challenges with me…
Mark Cracknell ACA, Director at HAYNE
Mobile: 07771534586
Four next steps for you…
4. Visit our website and connect
with us on our social channels for
more helpful resources
Hayne.co
