FF management briefings


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FF management briefings

  1. 1. Financial Focus & Cockpit<br />1<br />20110324<br />Financial Focus<br />Management briefings<br />September/October 2011<br />
  2. 2. Financial focus in a nutshell<br />2<br />20110324<br />Financial Focus<br />
  3. 3. Financial Focus<br />Presentation for COWI Executive Assistants<br />June 2011<br />3<br />20110324<br />Financial Focus<br />Financial Focus - getting the numbers right<br />
  4. 4. Increase profitability and enable seamless co-operation between COWI Group companies<br />by<br />establishing a shared financial solution, Cockpit in the COWI group for project, business, and resource management.<br />
  5. 5. A common finance language for projects<br />5<br />10/2/2011<br />Financial Focus<br />A common language between project and line management<br />A common language between company and business units<br />A common model for project economy and management<br />
  6. 6. Development and implementation roadmap<br />Financial Focus<br />Strategy<br />Profitability<br />Transparency<br />Shared solution<br />Mgmt.prep.<br />Mgmt.prep.<br />Mgmt.prep.<br />DK & Qatar<br />system<br />change<br />SE<br />system<br />change<br />NO<br />system<br />change<br />Gulf<br />system<br />change<br />Jan 2012<br />Jan 2013<br />Jan 2014<br />6<br />18 april 2011<br />
  7. 7. Financial focus key elements<br />7<br />20110324<br />Financial Focus<br />
  8. 8. 8<br />Project profit<br />Project profit (EBIT*)<br />Contract sum paid by customer<br />*EBIT: Earnings before interest and tax<br />Project contingency <br />Other costs<br />Labour costs:<br />Sum of Full Cost Rates<br />8 april 2011<br />Financial Focus<br />
  9. 9. 9<br />Fullcost rate<br />Corporate costs<br />Regional/country costs<br />Company costs<br />OverheadRate (OHR)<br />BU costs<br />Dept. costs & internal hours<br />Full Cost Rate (FCR)<br />Costsdirectly related to employee<br />Salary<br />Basic SalaryRate (BSR)<br />8 april 2011<br />Financial Focus<br />
  10. 10. Portfolio and project level optimisation<br />10<br />20110324<br />Financial Focus<br />Resource overview<br />Project overview<br />Portfoliolevel<br />FCR & EBIT<br />Project and resource management<br />Projectlevel<br />
  11. 11. Cockpits for sixroles<br />Project manager<br />Activity manager<br />Portfolio manager<br />Resource manager<br />P&L manager<br />Employee<br />11<br />29 aug2011<br />Financial Focus<br />
  12. 12. A integrated project manager's cockpit<br />12<br />29 aug 2011<br />Financial Focus<br />manage activities<br />optimise financials<br />manage resources<br />
  13. 13. 13<br />20110324<br />Financial Focus<br />
  14. 14. 14<br />20110324<br />Financial Focus<br />
  15. 15. 15<br />20110324<br />Financial Focus<br />
  16. 16. 16<br />20110324<br />Financial Focus<br />
  17. 17. 17<br />20110324<br />Financial Focus<br />
  18. 18. Resource Management<br />18<br />23/2/2011<br />FF - RM Workshop Group <br />Dialogue<br />Business Process<br />ResourceManager<br />Project Manager<br />Employee<br />Input<br />Output<br />BrowseEmployees<br />People Planner<br />IT Solution<br />Data<br />RM Reports<br />Digital ATR<br />Monitor planned allocations<br />ATR – Planning<br />
  19. 19. 19<br />Collaboration and profit/risk sharing<br />Profit<br />Profit proportional to participation as labour cost<br />Profit/loss forown delivery<br />FCR + fee<br />0<br />Fixed limitprofit share<br />Subprojectprofit share<br />Jointprofit share<br />8 april 2011<br />Financial Focus<br />
  20. 20. Risk and contingencies<br />20<br />29 aug 2011<br />Financial Focus<br />Project EBIT<br />Contingencies<br />Other cost<br />Labour cost based on FCR<br />Better control of risk and contingencies.<br />Risk Log mandatory from 2012 in Denmark.<br />Continuous focus on contingencies.<br />Transparency.<br />
  21. 21. P/L (profit/loss) accounts<br />The new P/L account will support two performance dimensions:<br />Resource utilization<br />Project profitability <br />Income/turn-over is the volume generated by the employee in the department/business unit.<br />21<br />20110324<br />Financial Focus<br />Income vs. FCR<br />FCR vs. actual<br />
  22. 22. Summing up<br />22<br />29 aug 2011<br />Financial Focus<br />Focus<br /><ul><li>Cost management
  23. 23. Risk management
  24. 24. Resourceoptimisation
  25. 25. Collaboration
  26. 26. Pricing</li></ul>Improve<br /><ul><li>Earnings
  27. 27. Cash flow
  28. 28. Billability</li></li></ul><li>Financial focus implementation<br />23<br />20110324<br />Financial Focus<br />
  29. 29. Time schedule for key change activities<br />24<br />14 sep 2011<br />december<br />november<br />october<br />september<br />january<br />Management briefings<br />Information from BCA and project including portal communication<br />Training: essentials, project management, Cockpit application, workshops etc.<br />Conversion I<br />Conversion II<br />Business change preparation and planning<br />go live<br />
  30. 30. Conversion and go-live tasks for project managers with supervision from managers and support from Finance.<br />25<br />14 sep 2011<br />Data conversion<br />September<br />January<br />December<br />November<br />October<br />Close all finalised projects.<br />Yearend<br />Last time registrations and posting and all possible invoices before January 5.<br />Enter additional data for each project that stretches into 2012.<br />Week 44-45<br />Training & information before conversion process.<br />Update all projects with ETC, resource planning, and WBS structure. <br />
  31. 31. Closure<br />More information from<br />Business change agents<br />www.cowiportal.dk/ff<br />Henrik R. Mortensen, hrmn@cowi.com<br />Thank you<br />26<br />20110324<br />Financial Focus<br />