Financial focus in a nutshell 2 20110324 Financial Focus
Financial Focus Presentation for COWI Executive Assistants June 2011 3 20110324 Financial Focus Financial Focus - getting the numbers right
Increase profitability and enable seamless co-operation between COWI Group companies by establishing a shared financial solution, Cockpit in the COWI group for project, business, and resource management.
A common finance language for projects 5 10/2/2011 Financial Focus A common language between project and line management A common language between company and business units A common model for project economy and management
Development and implementation roadmap Financial Focus Strategy Profitability Transparency Shared solution Mgmt.prep. Mgmt.prep. Mgmt.prep. DK & Qatar system change SE system change NO system change Gulf system change Jan 2012 Jan 2013 Jan 2014 6 18 april 2011
Financial focus key elements 7 20110324 Financial Focus
8 Project profit Project profit (EBIT*) Contract sum paid by customer *EBIT: Earnings before interest and tax Project contingency Other costs Labour costs: Sum of Full Cost Rates 8 april 2011 Financial Focus
9 Fullcost rate Corporate costs Regional/country costs Company costs OverheadRate (OHR) BU costs Dept. costs & internal hours Full Cost Rate (FCR) Costsdirectly related to employee Salary Basic SalaryRate (BSR) 8 april 2011 Financial Focus
Resource Management 18 23/2/2011 FF - RM Workshop Group Dialogue Business Process ResourceManager Project Manager Employee Input Output BrowseEmployees People Planner IT Solution Data RM Reports Digital ATR Monitor planned allocations ATR – Planning
19 Collaboration and profit/risk sharing Profit Profit proportional to participation as labour cost Profit/loss forown delivery FCR + fee 0 Fixed limitprofit share Subprojectprofit share Jointprofit share 8 april 2011 Financial Focus
Risk and contingencies 20 29 aug 2011 Financial Focus Project EBIT Contingencies Other cost Labour cost based on FCR Better control of risk and contingencies. Risk Log mandatory from 2012 in Denmark. Continuous focus on contingencies. Transparency.
P/L (profit/loss) accounts The new P/L account will support two performance dimensions: Resource utilization Project profitability Income/turn-over is the volume generated by the employee in the department/business unit. 21 20110324 Financial Focus Income vs. FCR FCR vs. actual
Summing up 22 29 aug 2011 Financial Focus Focus
Time schedule for key change activities 24 14 sep 2011 december november october september january Management briefings Information from BCA and project including portal communication Training: essentials, project management, Cockpit application, workshops etc. Conversion I Conversion II Business change preparation and planning go live
Conversion and go-live tasks for project managers with supervision from managers and support from Finance. 25 14 sep 2011 Data conversion September January December November October Close all finalised projects. Yearend Last time registrations and posting and all possible invoices before January 5. Enter additional data for each project that stretches into 2012. Week 44-45 Training & information before conversion process. Update all projects with ETC, resource planning, and WBS structure.
Closure More information from Business change agents www.cowiportal.dk/ff Henrik R. Mortensen, firstname.lastname@example.org Thank you 26 20110324 Financial Focus