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Global fpa conference presentation final
 

Global fpa conference presentation final

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  • Ask all the people to stand (summarise and ask them to sit)- All children like companies go through growing pains how we manage in these periods determines how successful we will be in life the. the same is true for companies. The presentation will look at : The role of Planning plays in rapidly changing company like Actavis during its life The role planning played at various stages in its life to help it remain successful
  • I have over 20 years experience in Planning Having worked in number of Blue Chip companiesWitnessed both good and bad practices – which has given me unique insight Some of those learning I would like share with you today.I am not going to stun you with strange management principals but use it help guide a practical perspective of the role of planning with a company going through change.
  • Planning manages across the organization and supports management in many ways We look at the organization across 5 criteria'sTo understand how planning to respond we need to consider
  • Rapid Growth- Task driven - chasing every opportunity risk taking common growing and learning – like kid learning to walk - Much like the Hunter guided by instinctTransition and Consolidation - Farmer where you reaping the reward of past events Process start to get more formalised Still in growth mode – so looking at winning more business. Objectives and targets become formal means managing complexity Adapt or DieManagement by Bureaucracy – by committee , decision taking slow but safeOrganisation are risk averse – focus play not loose More focused on cost saving and maintain market positions At this satge you see companies launching new products or innovating
  • Given this background – let see how it helps to understand the role planning played in a rapidly changing company like ActavisWhy is Actavis Recently Harvard Business School – looked at Actavis as case study in change Management as it was one the fast growth companies in industry I believe it offer many lesson in the planning environment too.
  • No framework to review progress – large adhocTimely decision not madeRisk losing sales opportunity
  • Fundamental step:Language changed – Bus vs FX LE vs Mgt Reporting – need for standard costingImportance of this allowed commercial business to now what their cost base was when making deals Force the manufacturing commercial side of the business to manage costs as any variance to standard were report in their P&Ls.Definitions New product Launches etc
  • No strategic planning in placeUnable prioritise choice acquisitions were made but no clear integration . No understand resource to service. Planning played critical role here.
  • Building a robust knowledgeable team Standardised templates – pack were heavy but it forced people /disciplined meaningful feedbackEducated the team
  • Integrated ERP – actuals integrated in planning models up to this point process was rather manualComparatives – included.
  • Integrated Budget with 3YPPlanning fertigue
  • Leverage buyout chanaged focus Private company – but banker breathing down Debt syndication – support this process
  • The phase of planning shift now supporting the businessUpto this point we were building chasing data to keep up with pace of change but now able focus on business value
  • In uncertain time – Recession and over leveraged meant that the business focused more short term deliverables
  • Adapting -Looking new product or exploting new markets Heavy focus on costs, discounts and efficiency in process – planning and analaysis was critical providing this support
  • Over leverage – preparing business case for justifying debt restructuring – Planning key
  • Contingency planning – investment critcal

Global fpa conference presentation final Global fpa conference presentation final Presentation Transcript

  • Case Study:Nadeem Aziz
  • Nadeem Aziz -Formerly Head of Group Planning for 5 Years at • Over 24 years experience in FP&A roles • Worked across many industries Director Director Global European FP&A Business Analysis Head Group Currently Director Internal Audit Financial Planning MBA, DipM, DMS, ACMA, FCMI, CGMA 2
  • Agenda 1 Introduction 2 Business Planning challenges 3 Understanding Organisational life cycle 4 Who are Actavis – How can it’s experience help planning 5 Impact of Planning on the Life Cycle of Actavis 1) Growth Stage 2) Transition & Consolidation Stage 3) Adapt or Die Stage 6 Lessons for Planning3 March, 2013
  • Business Planning Challenges Objective Does the business know where they are going? Systems Are the systems and tools appropriate to do job? Process How can management deliver on its objectives? Output How is business progress tracked and adjusted? Control Do we trust the management will deliver outcomes? 4
  • Organisational Life cyclesales Growth Time 5
  • Organisational Life cyclesales Transition & Growth Consolidation Time 6
  • Organisational Life cyclesales Transition & Adapt Growth Consolidation or Die Time 7
  • Organisational Life cyclesales Transition & Adapt Growth Consolidation or Die Mgt by Mgt By Activity Mgt by Objective Bureaucracy Time Guided by Norms & Controlled by Guided by Instinct Past Events Systems & process Emphasis on Emphasis on Emphasis on Learning Building Maintenance Entrepreneurial Play to Win Play not to Loose 8
  • Who are Actavis?Role of Planning through theActavis organizational life cycle
  • Actavis roots –Manufactures, distributes, markets & sells generic drugs Actavis 1956 - 1999 Bangalore, India • 146 employees API Development • Present in 1 country • EUR 57 million in sales 10
  • Actavis strong growthDriven through Acquisition 11
  • ActavisCurrent Position Today Actavis in 2011 Bangalore, India • A top-5 generic player API Development • EUR 1.840 billion estimated sales in 2011 • Present in over 40 countries • 1100 molecules on the market • 315 projects in the pipeline • 719 launches planned for 2011 • 20 billion tablets/capsules manufactured 2011 • Over 10,000 employees 12
  • ActavisCritical Life Cycle Phases1 Growth – Managing through Rapid growth •2 Transition – Managing through a Leverage Buyout •3 Adapt - Managing in Uncertain times •3 March, 2013 13
  • Actavis – Background in 2006Objective System Process Output Control 14
  • Actavis – Background in 2006 Objective System Process Output Control• No Strategic Plan in place• Short term focus• Little Group Coordination• Just get the job done 15
  • Actavis – Background in 2006 Objective System Process Output Control• No Strategic Plan • Low systems in place capabilities• Short term focus • Knowledge base of the team low• Little Group Coordination • Different system across the business• Just get the job done 16
  • Actavis – Background in 2006 Objective System Process Output Control• No Strategic Plan • Low systems • Fragmented in place capabilities • Little integration• Short term focus • Knowledge base of between the team low businesses• Little Group Coordination • Different system • All hands to the across the business pumps• Just get the job done 17
  • Actavis – Background in 2006 Objective System Process Output Control• No Strategic Plan • Low systems • Fragmented • Non Standardised in place capabilities Reporting • Little integration• Short term focus • Knowledge base of between • Backward looking the team low businesses focus• Little Group Coordination • Different system • All hands to the • Policies across the business pumps Inconsistent• Just get the job across the Group done 18
  • Actavis – Background in 2006 Objective System Process Output Control• No Strategic Plan • Low systems • Fragmented • Non Standardised • Data Quality in place capabilities Reporting unreliable • Little integration• Short term focus • Knowledge base of between • Backward looking • No confidence on the team low businesses focus trend analysis• Little Group Coordination • Different system • All hands to the • Policies • Do it and figure across the business pumps Inconsistent it out later• Just get the job across the Group done 19
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements 20
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements• By establishing comprehensive reporting calendar enabling key processes2 to be coordinated with management across the company 21
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements• By establishing comprehensive reporting calendar enabling key processes2 to be coordinated with management across the company• Establish a common language and developed policies and definitions so3 that comparatives would be more meaningful 22
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements• By establishing comprehensive reporting calendar enabling key processes2 to be coordinated with management across the company• Establish a common language and developed policies and definitions so3 that comparatives would be more meaningful1) Quality and reliability of reporting enhanced establish monthly4 management reporting and quarterly forecasting 23
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements• By establishing comprehensive reporting calendar enabling key processes2 to be coordinated with management across the company• Establish a common language and developed policies and definitions so3 that comparatives would be more meaningful1) Quality and reliability of reporting enhanced establish monthly4 management reporting and quarterly forecasting1) Strategic planning disciplines introduced to5 support investment prioritisation decisions. 24
  • Actavis – Impact of PlanningDuring the Growth Stage – Time of Rapid Change• Planning defined the IT functionality needed to service growth and1 managed the requirements needed to service future enhancements• By establishing comprehensive reporting calendar enabling key processes2 to be coordinated with management across the company• Establish a common language and developed policies and definitions so3 that comparatives would be more meaningful1) Quality and reliability of reporting enhanced establish monthly4 management reporting and quarterly forecasting1) Strategic planning disciplines introduced to5 support investment prioritisation decisions.1) Built capability of the Financial planning team6 establish feedback loop to enhance future processes 25
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality 26
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality• Supporting quarterly business reviews with dynamic reporting2 through standard system generated reports in Cognos 27
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality• Supporting quarterly business reviews with dynamic reporting2 through standard system generated reports in Cognos• More forward looking trend base analysis developed, more3 robust forecasting 3YP and Budget process integrated 28
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality• Supporting quarterly business reviews with dynamic reporting2 through standard system generated reports in Cognos• More forward looking trend base analysis developed, more3 robust forecasting 3YP and Budget process integrated1) Driver based consolidation of business commentaries4 giving greater visibility to business variances 29
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality• Supporting quarterly business reviews with dynamic reporting2 through standard system generated reports in Cognos• More forward looking trend base analysis developed, more3 robust forecasting 3YP and Budget process integrated1) Drive based consolidation of business commentaries4 giving greater visibility business variances1) Greater focus on risk and opportunity planning and5 reporting to external investors 30
  • Actavis – Impact of PlanningTransition Stage: Following Leverage Buyout• Developed integration financial systems across the group1 leveraging Local ERPs and Data Warehouse functionality• Supporting quarterly business reviews with dynamic reporting2 through standard system generated reports in Cognos• More forward looking Trend base analysis developed, more3 robust forecasting 3YP and Budget process integrated1) Drive based consolidation of business commentaries4 giving greater visibility business variances1) Greater focus on risk and opportunity planning and5 reporting to external investors1) Building business partner relationship by engaging6 strategic projects and business modelling. 31
  • Actavis – Impact of PlanningAdaptive Stage: Managing in Uncertain Times • Greater focus on Cashflow forecasting and1 alignment with Treasury 32
  • Actavis – Impact of PlanningAdaptive Stage: Managing in Uncertain Times • Greater focus on Cashflow forecasting and1 alignment with Treasury1) Drive focus on critical business success factors2 developing greater business alignment - Price Erosion, Material & expense savings and driving new products. 33
  • Actavis – Impact of PlanningAdaptive Stage: Managing in Uncertain Times • Greater focus on Cashflow forecasting and1 alignment with Treasury1) Drive focus on critical business success factors2 developing greater business alignment - Price Erosion, Material & expense savings and driving new products.3• Actively manage external investor relationships and Debt Restructuring 34
  • Actavis – Impact of PlanningAdaptive Stage: Managing in Uncertain Times • Greater focus on Cashflow forecasting and1 alignment with Treasury1) Drive focus on critical business success factors2 developing greater business alignment - Price Erosion, Material & expense savings and driving new products.3• Actively manage external investor relationships and Debt Restructuring• Contingency Planning greater4 focus on Investment tracking 35
  • Lessons for Planning Strategic Analyse Alignment Performance Deliver Commercial Value 36
  • Lessons for Planning Develop a deeper understanding of performance Strategic Analyse Alignment Performance Deliver Commercial Value 37
  • Lessons for Planning Develop a deeper understanding of performance Strategic Analyse Alignment Performance Robust Forecasting, Budgeting & Reporting to ensure effective decision support Deliver Commercial Value 38
  • Lessons for Planning Develop a deeper understanding of performance Strategic Analyse Alignment Performance Robust Forecasting, Budgeting & Reporting to ensure effective decision support Deliver Commercial Leverage tools & resources to drive greater Value & more efficient analytical insight 39
  • Lessons for Planning Develop a deeper understanding of performance Strategic Analyse Alignment Performance Robust Forecasting, Budgeting & Reporting to ensure effective decision support Deliver Commercial Leverage tools & resources to drive greater Value & more efficient analytical insight Work on critical commercial initiatives to ensure delivery of target performance 40
  • Rebirth & Grow…..Actavis 2013 Here we go again ……!!!!! 41
  • Thank you!