Changing role of the controller - Presentations

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Serge Vigoureux, Solutions Director, TriFinance

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Changing role of the controller - Presentations

  1. 1. Changing role of the controller22th May 2013
  2. 2. Upcoming eventsEvents DateAlum.Nights: the spring edition 23/05/2013"Dat heet dan gelukkig zijn" - Zingeving voor de huidige tijd:ongewone antwoorden voor ongewone uitdagingen03/06/201314th Vlerick Alumni Golf Challenge and Golf Initiation 15/06/2013Vlerick Alumni Sailing Cup 2013 20/09/2013Meet the industry: media Sept 2013Estafette event Sept 2013Microfinancing Oct 2013Chief economists Mar 2014
  3. 3. Keynote SpeakersSpeaker Company and FunctionFilip Roodhooft Prof. Vlerick Business SchoolSerge Vigoureux Solutions Director, TriFinanceAnn Desender VP corporate finance & controlling, BarcoGuy Van den Dorpe Vice-President Financial Control, UCB
  4. 4. AGENDA Introduction How did the world of the controller change over the past 10 years What constitutes a good professional controller at TriFinance? Controlling @ Barco and the changing role of the controller Implementation of Finance transformation at UCB Q&A Networking reception5
  5. 5. Filip RoodhooftProf. Vlerick Business School
  6. 6. Serge VigoureuxSolutions Director, TriFinance
  7. 7. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONAgenda8TriFinance• Who am I ?• What is TriFinance ?• Offering of MI&S• Framework for controllers
  8. 8. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleWho am I ?From Insightto Realization
  9. 9. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONWhat we do at TriFinance :a new combination of services10From Insightto RealizationStaffing ConsultancyAdvisory&ImplementationIntelligent capacityWe deliver new value added solutions bycombining the value of staffing & secondmentwith the value of pure consultancy into the newcombination of do-how and know-how.Price and Added ValueElevator pitch : “we solve the needs offinance departments on project -, orpermanent basis”
  10. 10. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONTriFinance lifecycle11From Insightto Realization2001 2003 2005 2007 2009Tri ICTMorgan Clark2011Economies ofMotivationCompetenceCentersHubManagementIncorporationTriFinanceBrussels OfficeAntwerp OfficeAmsterdam OfficeDüsseldorf OfficeGhent OfficeRotterdam OfficeLouvain-la-Neuve OfficeStart FinancialInstitutionsAcquisitionEagle staffing &advisoryStart Public SectorParkLane Group – people01002003004005006007002002 2003 2004 2005 2006 2007 2008 2009 2010 2011BaseCampSelf employedConsultantsTriLegalBUorganisation
  11. 11. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleCompetence centers – matrix organisationBU’s were account drivenand regionally organisedCompetence centers workfor all BU’s and P&L’s werecounted twiceFrom Insightto RealizationBU Bxl BU Antwerp BU FI Bu n TFrevenuesupport servicesprojects cc C&R sum()projects cc WCR&S
  12. 12. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONTriFinance Business Units0CorpAntwerp CorpBrusselsCorpGentLouvain-la-NeuveCentralGovLokalebesturenPublicVlaamsFI BEBankingFI BEInsur.FI NLAmster-damRotter-damTri ICT NLTri ICT BETriLegalMI & SRiskProcessChangeData toInsightServicesRegional BUsIndustry basedspecialtiesExpertise basedspecialtiesp. 13From Insightto Realization
  13. 13. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONWhat we do:a new combination of services14From Insightto RealizationStaffing ConsultancyMI&SFromdata toinsightCorpsBrussels PublicsectorfederalCorpsBrusselsFI
  14. 14. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONMI & S’s Information PyramidFrom Insightto Realization
  15. 15. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATION• Elevator pitch• We have organisations as client, but also ourconsultants and interim managers(freelancers) are seen as client• Strong believers of the networked economy• TriFinance offers a ‘platform’ for those willingto be engaged in interesting projects We have to invest in our people and offerthem an added value in their developmentWho are the clients of TriFinance ?16From Insightto Realization
  16. 16. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONWhat constitutes a good professional?17Controller skillsExperienceTF talent frameworkhard skill frameworkTF projects
  17. 17. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONController = hard and soft skills...18Controller skills
  18. 18. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONSoft skills – TriFinance Talent Framework19Controller skillsTalent forrelationingTalent for taskmanagementTalent forcommunicationTalent forcoachingleadershipTalent foranalysis andproblem solvingCore talents• Self-starting• Self-propelling• Organisational and teamcommitment• Add the one thing more• Perform under difficultconditions and veer backfrom hardship• Respect personal andprofessional values andact accordinglyenables or blocksother talents
  19. 19. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONWhich soft skills distinguish a normal from anexcellent controller?• Helicopter view• Impacting with confidence• Analytical and synthetic thinking• Drive to achieve goals• Communicating simplicityKey differentiators for excellence20Controller skills
  20. 20. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONHard skills21Controller skillsTaxationAcquisitions,Divestments &AlliancesInvestorRelationsCreate anoptimal financefunctionFinancialaccountingCorporateGovernanceManaging Risk &Internal ControlTreasuryManagementDecision supportSteeringbusinessperformanceInformationmanagementFinancialtransactionprocessing
  21. 21. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATION• Not every role in Finance requires the same skills– e.g. accountant versus controller versus CFO– e.g. junior versus senior level• Skill profiles are an indication which skills canreasonably expected in a certain roleSkill profiles22Controller skills
  22. 22. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATION• Junior controller• Senior controller• Group controller• CFOTypes of controllers23Controller skills• Commercial Controller• Logistics controller• Plant controller• Business unit controller
  23. 23. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATION1. Basic Understanding– Have a general theoretical awareness of the field2. Operational– Able to perform standard operational tasks3. Proficient– Able to perform most operational tasks and capable of solvingsome problems4. Advanced– Able to perform almost all operational tasks and capable of solvingmoderately complex new problems5. Expert– Full mastery of the field, ability to solve the most challengingproblems, acting as a person of last resortSkill levels24Controller skills
  24. 24. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONHard skills - Junior Controller25Controller skillsJunior Business ControllerRequired Skill Level 1 2 3 4 5Decision Support 3 1 1 1Steering Business Performance 2 1 1Information Management 2 1 1Financial Transaction Processing 2 1 1Financial Accounting 2 1 1Corporate Governance 1 1Risk Management & Internal Control 1 1Treasury Management 1 1Taxation 1 1Acquisitions, Alliances & Divestments 0Investor Relations 0Create an optimal finance function 0
  25. 25. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONSenior Controller – expanding knowledge26Controller skillsSenior Business ControllerRequired Skill Level 1 2 3 4 5Decision Support 4 1 1 1 1Steering Business Performance 4 1 1 1 1Information Management 3 1 1 1Financial Transaction Processing 2 1 1Financial Accounting 2 1 1Corporate Governance 1 1Risk Management & Internal Control 1 1Treasury Management 1 1Taxation 1 1Acquisitions, Alliances & Divestments 1 1Investor Relations 1 1Create an optimal finance function 2 1 1
  26. 26. Click to edit Master title styleFROM INSIGHTTO REALIZATIONClick to edit Master title styleFROM INSIGHTTO REALIZATIONTraining philosophy27Controller skills
  27. 27. Ann DesenderVP corporate finance & controlling, Barco
  28. 28. Guy Van den DorpeVice-President Financial Control, UCB
  29. 29. Jérôme and Raffaele, living with epilepsyImplementation ofFinance transformationat UCBInspired by patients. Driven by science.May-2013
  30. 30. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeOur drivers for changeMacro-Economic• It’s the debt !• Population growth & age pyramidIncreasingly high health care cost bills for already overburdened payersIndustry - specific• Industry challenges on:• R&D productivity• Market access and Reimbursement• Accelerated generic entries• Industry still perceived as « a rich industry with high % of inefficient spendin marketing & selling »• Big pharma is still facing major patent cliffs• Trust barometer• Above market margins (30%+ Ebitda) will come under pressure• Value-based pricing, Pharma-economics become predominant themes forpayers=> Existing operating and business models will change
  31. 31. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeTransformation in finance: focus shifts from transactional tovalue adding business partnering activitiesFinance scope and activitiesTransactional &ComplianceactivitiesSpecialisedactivitiesBusiness PartneringactivitiesPrior situation Majority of resources is used fortransactional activities Focus on reporting and getting thenumbers right instead ofinterpretation and providing adviceAmbition Focus on high value adding businesspartnering activities Automate and outsourcetransactional activities Explore further elimination potentialespecially in reporting and planningSCHEMATICNote: More information on the transformation journeycan be found in earlier presentations32
  32. 32. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemade33UCB’s new global Patient Centric organization- announced Tuesday 5th Feb 2013 -PracticeNewMedicinesBiopharmaDevelopmentSolutionsBiopharmaBrands&SolutionsEstablishedBrands,Solutions&SupplyPracticePracticePracticePatientDiscoveryresearchandpipelineromosozumabepratuzumabbrivaracetam…Cimzia®Vimpat®Neupro®Keppra®Xyzal®Zyrtec®…33
  33. 33. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeGlobal Controlling - ALTERNATIVE34Investment &PortfolioControllingControlling4 Unit CFO’sGroup+SupportFunctioncontrollingActivity BasedBudgetingEnsure that UCB’s science and patient-centric investments deliverappropriate return for shareholders always keeping patients at theheart of everything we do.Asset CFO’sfocused on Asset Valueoptimization BusinessPartnershipGroup Controllers focused on Planning & Performance measurement Resource Allocation methodologies &best practicesGlobal Business ServicesTransactionalexcellence Reporting Outsourcedcontrolling activities …
  34. 34. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemade Deep understanding of business issues Acting as a true partner – Solution driven, complementary experts insteering decision making for business Specialized financial expertise, driving business on most relevant criteria,providing required rigor in analysis and co-steering implementation Critical path activities analysis – robustly challenging towards optimalallocation of resources Keeping group objectives and values in mindControllers=> BusinessPartneringControlling: What’s new, why goodFully aligned to support the Units as Business PartnersEach Unit CFO to focus on the value creation for assets in the Unit portfolioAsset CFO thinking applied – always keeping patients at the heart of everything we doGroup controlling to support the Units by steering towards optimal resource allocationTransactional activities transferred to the GBS – allowing controllers to spend more timeon genuine Business Partnering activities
  35. 35. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeWhere do we want to be?People & Organization• Decision support > 50%, Planning < 25% and Processes <25%• Business insight & Decision support improvement (measured by tangible outcomes)• Total cost of ownership reduced (but not on Decision Support !)Controlling toolbox & Systems Decision relevant (geography, product, ownership, projects & activities, cost element, ….) Enabling resource allocation (enabling prioritization, based on relevant quantitative & qualitative criteria) Integrated from process and architecture perspective (activity planning - resource planning – costing –aggregation and consolidation)Reporting & Performance measurement Standardized & automated for KPI’s and dashboards - providing decision relevant info on timely basis Standard reports are complemented with flexible and user-friendly tool for ad-hoc analysisResource allocation• Prioritization based on relevant quantitative & qualitative criteria (where applicable) has become part ofour DNA• Resource allocation is taking place across the company (ie intra-functional and inter-functional)Planning cycle• Increased efficiency … whilst keeping effectiveness• Less time spent on planning / Less iterations• Reinforcement of accountability
  36. 36. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemade37Resource Allocation and Activity Based Budgeting<in practice>Primary responsibility of Units is allocation of resources on selectedMissions & ActivitiesPrimary responsibilityof ABB Triangle isfinding Smarter Waysand Best Practices onresources required todeliver desiredoutput.10012020%10012020%10012020%Input 100Output 120Return &Productivity20%Mission x–Activity A9012030%
  37. 37. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemade38ABB Cost Category TriangleFinance: monitor target deliveryPro-actively indentify & quantifysmarter way and best practice ideasMediate conflicts between CostCategory and FunctionsActively challenge volumedimension of spend whereappropriateOwnersFinanceCo-OwnerPurchasingPurchasing: reduce unit costsManage vendors (bundling, unitcosts, negotiation, contract dvpt)Assist in collecting best practicesCost Category Owners: deliver targets per CCSet aspiration, policy and guidanceGenerally member of Executive CommitteeCost Category Co-Owners: coordinateSubject Matter Expert (SME) for the topicRun the cost category teamDrive for smarter ways and best practicesChallenge volume of spend/activities acrossfunctionsPropose corrective actions for deviations torules and behaviorsChallenge budgets and LE across functions
  38. 38. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemade39ABB serves to create Closed Loop cost MgtClosed Loop CostManagement asan enabler forsustainableefficienciesImplementingActivity BasedBudgeting as afirst step of theClosed Loop…30/05/201339Closed LoopCost Mgt
  39. 39. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeAim: Better decision process, supported by Structured Quant + Qual Analysis,propelled by Transparency and promoting AccountabilityTransparencyAccountabilityAccurateAssumptionsRobustValuation Gut Feel“Pushing &Pulling”Harmonized+StructuredAnalysisQuant+QualAnalysisPortfolio & Investment controlling effort to further strengthen investmentdecisions
  40. 40. Draft,fordiscussiononly,pleasedonotshareoutsideFinanceasdecisionsarestilltobemadeResult: accurate project ranking on the intra-functionaland eventually also on the cross-functional levelMoving to portfolio optimization across an entire organization requires an evaluationframework that compares and trades-offs financial and strategic benefits both within andacross functionsCopyright: 2012Deloitte BelgiumWearehere“Food Fight” – noclear criteria to aallocate fundsSilloed yet optimalintra-functionalrankingCross-functionalranking, based onbroad portfolioviewStep1Step2
  41. 41. Q&AFinance Alumni, Your Financial Network
  42. 42. Thank youFinance Alumni, Your Financial Network
  43. 43. Networking DrinkFinance Alumni, Your Financial Network

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