Hackett mc graw hill_webcast october 3 2013_final

540 views
375 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
540
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Hackett mc graw hill_webcast october 3 2013_final

  1. 1. We Are Glad You’re Here! We Will Start The Webcast In A Few Moments Accessing the Audio Portion of the Webcast • To Access the audio portion of the webcast, please click Audio in the upper left tool bar and select “Join Audio Conference”. • When the Audio Conference window pops-up, enter the phone number that you would like to use for the webcast. (direct dial only). • The webcast will call you to join you to the event • If you are still having trouble joining the audio conference, please dial 1-877-668-4493 and enter Access code: 663 309 440
  2. 2. MCGRAW-HILL FINANCIAL: THE PERFECT STORM: TRANSFORMATION, OUTSOURCING AND AN ERP IMPLEMENTATION The Hackett Group October 3, 2013
  3. 3. All lines have been muted to ensure call quality Click Icon for Full Screen View To ask a questions, please raise your hand or enter your question in the chat box. Your line will be un-muted when your name is called to ask your question. © 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. GBS Executive Advisory Program | 2
  4. 4. The Hackett’s Group 2013 European Best Practices Conference Join a select group of senior executives for this exciting event that provides opportunities to: Reduce costs and improve effectiveness. Learn proven cost-saving strategies and business improvement examples that yield actionable next steps that can have an immediate return on your investment. Leverage the experience of your peers. Hear real-life case studies with ample opportunities to network with other senior executives and thought leaders representing the most successful companies and recognised brands in the world. Access The Hackett Group's full breadth of research and expertise, including the latest data, metrics and models aligned with your job function. Gain excellent value for the level of intensive education. Experience nearly 10 hours of keynote and practitioner sessions and more than 10 hours of networking. © 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. GBS Executive Advisory Program | 3
  5. 5. Speakers: Kelli Skaff, Global Director Process Transformation Office, Boston Scientific Dorota Maciaszek, Director Mondelez International Enterprise Shared Services, Mondelez 2013 Global Business Services Advisory Leadership Forum Achieving World-class GBS Globalization & Outsourcing Service Management Executive & BU Buy-in C-Level KPIs Governance, Migration November 19, 2013 Westin Diplomat | Hollywood, FL Michelle Ferguson, Senior Vice President, McGraw Hill Financial Honorio Padron, Principal & Global Practice Leader, Global Business Services, The Hackett Group Vin Kumar, Associate Principal & GBS Global Operations Leader, The Hackett Group Penny Weller, Global Business Services North American Practice Leader, The Hackett Group Patrick Connaughton, Senior Director GBS Advisory, The Hackett Group
  6. 6. 12th Annual Global Business Services (GBS) Performance Study Global Shared Services/Shared Services: Is your organization keeping pace or getting left behind? Participants in this study will:  How your organization compares with World-class performance  Learn how GBS/shared services can enhance the enterprise value it delivers  Receive a report with key research findings and an assessment of your GBS/shared services’ performance  Have a one-on-one session with Hackett’s GBS Advisors to review your performance Participate by using the link on the GBS portal or contacting advisor@thehackettgroup.com The Hackett Group's 2014 Annual GBS Performance Study is open from October 8 – December 6, 2013
  7. 7. GBS Advisory - Save the dates (webcasts & in person events) Note: Past events are recorded and available on the GBS portal 2013 Dow Chemical: Service Management January 24 Boston Scientific: Human Capital Metrics Drive Data-Based Decisions Across a Global Organization February 14 Hackett: GBS Talent Approach - March 19 TRW: Single Instance ERP Not a Reality At The Moment? - March 21 Jan ‘13 Feb ‘13 Mar ‘13 Hackett: GBS Performance Study - IT Highlights – July 9 Pitney Bowes: Hidden Benefits of the Cloud February 21 Hackett GBS Performance Study Results Presentation March 7 Hackett: GBS Performance Study Finance Highlights – July 15 United Airlines: Using Lean & Six Sigma to Keep a Business Process in House – August 15 GBS in Poland, Key Benefits & Learnings September 5 Jul ‘13 Aug ‘13 Sep ‘13 Hackett: GBS Performance Study Procurement Highlights - July 24 Hackett: GBS Performance Study – HR Highlights – July 30 Hackett: Hackett GBS Payroll Study August 27 Unisys: Creating a COE for Knowledge Management & Reporting September 26 © 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. ATOS: Leveraging Social Media Collaboration Tools April 16 Cytec: Implementing GBS by the Book! April 18 Apr ‘13 CINDE: Costa Rica Trends, Location Details April 23 EU Best Practice Conference (Berlin) – October 30-31 Oct ‘13 McGraw Hill Financial The Perfect Storm: Transformation, Outsourcing and an ERP Implementation – October 3 US Navy Makes Progress On Their Journey – October 10 Hackett: Effective Sourcing Strategy Study Results – October 24 North American Best Practices Conference (Miami) – May 20-22 May ‘13 Global Business Services Workshop (Miami) – May 20 Unisys: Social Collaboration Tools – November 7 Coca-Cola Enterprises : The Value Proposition – November 21 North American Best Practices Conference in Review - June 13 Corning: Performance Excellence Approach (Six Sigma/DMAIC, Lean, and DESGN) June 20 Jun ‘13 EU GBS Leadership Forum (London) June 19 Hertz – End-to-End Process Design December 19 Nov ‘13 Dec ‘13 North American GBS Leadership Forum (Hollywood, Florida) Speakers: Hackett, Boston Scientific, Mondelez Intl, McGraw Hill Financial & Panel Discussions November 19 Hackett: European Best Practices Conference Highlights – December 5 |6
  8. 8. GBS Advisory - Save the dates (webcasts & in person events) 2014 Cisco: Building Collaborative BPO Relationships; Guiding Principles for Success January 16 Jan ‘14 Boston Scientific: Service Infrastructure February 20 Feb ‘14 Hackett: Global Business Services Performance Study March 13 Mar ‘14 Apr ‘14 JD Irving: Senior Leadership Required for Effective Change Management – April 10 Hackett: GBS Advisory 2013 Top Inquiries – Vin Kumar - January 23 Available National Grid: Using KPIs/Metrics Dashboard to Motivate and Drive Performance – March 20 Hackett: GBS Performance Study – HR Highlights July 17 Hackett: GBS Performance Study – IT Highlights August 14 Hackett: GBS Performance Study – Finance Highlights September 18 Aug ‘14 Sep ‘14 Jul ‘14 Available Hackett: GBS Performance Study – Procurement Highlights August 21 Hackett: How to Make GBS Stick! – Honorio Padron April 17 British American Tobacco: Finance Shared Services, Global SAP roll-out, and Advanced A2R Services September 4 © 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Hackett: Continuous Improvement; Developing a Global Framework for Success October 16 North American Best Practices Conference (Location) – May May ‘14 Kiewit: KPIs - C-Level, Key Stakeholders, & Operational - May 15 Hackett: GBS Trends – Key Learnings & Global Location Update – November 13 Mondelez International: Technology Rollout & Transitioning Work June 12 Hackett: Best Practices Conference Highlights – Sean Kracklauer June 19 Jun ‘14 EU GBS Leadership Forum (London) June December 18 Oct ‘14 Nov ‘14 Dec ‘14 EU Best Practice Conference (Location) – October Available - November 20 Hackett: European Best Practices Conference Highlights – December North American GBS Leadership Forum (Location) November |7
  9. 9. GBS Member Profile – McGraw Hill Financials McGraw Hill Financial Global Business Services Industry: Revenue: Employees: Countries: Media $4.4 Billion (2012) 17,000 200 Hightstown, NJ, USA London, UK Mexico City, MX Singapore Vision: To excel as a global shared services organization by delivering high quality, consistent services at the lowest, most flexible cost. Mission: Global Business Services supports McGraw Hill Financial by: • Providing superior and expanding services to our colleagues • Delivering financial value and innovation • Maximizing the effectiveness of our systems and processes • Partnering with world class service providers Shared Service Centers: GBS organization consists of four captive locations and multiple outsourcing arrangements:  Captive: Hightstown, New Jersey (170 fte) services USA  Captive: London, England (35 fte) services EMEA (UK, France, Germany, Spain, Italy)  Captive: Singapore (20 fte) services APAC (India, Singapore, China, Malaysia)  Captive: Mexico City, Mexico (2 fte) services Latin America (Argentina, Mexico)  Outsourced: Finance (AP, OTC, R2R) – Genpact - Hyderabad, India; Dalian, China; Bucharest, Romania; Juarez, Mexico  Outsourced: Global Payroll – NorthgateArinso – Manila, Philippines  Outsourced: HR Services – AON Hewitt - Customer Service Support: Portal, Taleo, Success Factors, Workday – Charlotte, North Carolina, Gurgaon, India  Outsourced: System Development – Tata – Oracle – Kolkata, India  Outsourced: Quality Control – Wipro – Oracle – Chennai, Bangalore, India Outsourced Processes: Services Provided: Finance & Accounting: AP, T&E, HR Financial Reporting Human Resources: Payroll, Employee Care, Global Mobility Information Technology: Oracle ERP System Procurement: Global Sourcing and Procurement Other Services: Global Real Estate © 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Member Profile | 8
  10. 10. Presenter Michelle Ferguson Senior Vice President, Global Business Services Michelle has developed a shared services strategy as part of the organizations Growth and Value Plan and now leads that organization. It includes Financial, Human Resources, Shared Services and Real Estate. Her responsibilities also include leading a multi-phase Oracle implementation. She has held senior leadership roles in Real Estate, Human Resources, Corporate Finance and McGraw-Hill Education. Most recently as SVP of International Operations at MHE, Michelle led the Latin American business, managed financial reporting for international operations, and improved service workflows. Michelle is founder and President of WINS (and the corporations first and largest ERG). She was co-founder of a mentoring program, which has expanded to included world-side employees. She continues to be a role model and advocate for women at McGraw-Hill Financial. Michelle holds a BBA from the University of Notre Dame and an MBA from Columbia Business School. © 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. |9
  11. 11. The Perfect Storm: Transformation, Outsourcing and an ERP Implementation Michelle R. Ferguson Sr. Vice President – Global Business Services McGraw Hill Financial | Global Business Services
  12. 12. Today I will Discuss A New Company with 125 Year Heritage Global Business Services Transformation Outsourcing ERP Implementation Challenges / Lessons Learned 5 Rules NOT to Follow Q&A McGraw Hill Financial | Global Business Services 11
  13. 13. A New Company: McGraw Hill Financial New name, new vision, new look, and a new ticker — MHFI McGraw Hill Financial | Global Business Services 12
  14. 14. McGraw Hill Financial • A new company, with a 125‐year‐old heritage, focused on providing essential intelligence • Our vision is to be the foremost provider of ratings, benchmarks, and analytics in the global capital and commodity markets • Strong balance sheet enables financial flexibility • Will continue to invest in businesses while returning cash to shareholders • Solid track record of top‐ and bottom‐line growth • 2013 guidance indicates solid growth:  High single‐digit, top‐line growth  Adjusted diluted EPS guidance of $3.15 ‐ $3.25 McGraw Hill Financial | Global Business Services 13
  15. 15. A Global Network 17,425 FTEs McGraw Hill Financial | Global Business Services 14
  16. 16. McGraw Hill Financial — Leadership Change Harold McGraw III • • • Douglas L. Peterson Transition – Ensure a seamless and smooth transition Meet with leaders around the company to better understand: – Strategy – Corporate governance & planning process – Regulation – Capital allocation Key balance of year priorities to prepare for 2014: – Refined corporate vision – Ensure alignment of individual business strategies – Realign leadership as necessary – Set 2014 performance targets and initiatives McGraw Hill Financial | Global Business Services 15
  17. 17. McGraw Hill Financial: Exceptional Growth Continues ($ in millions) 2Q 2013 2Q 2012 Change $1,250 $1,072 +17% $446 $347 +29% Adj. Operating Margin 35.7% 32.3% +340 bps Diluted Adjusted EPS $0.92 $0.70 +31% Revenue Adj. Operating Profit McGraw Hill Financial | Global Business Services 16
  18. 18. About Michelle • • • Senior Vice President, Global Business Services • Finance • Human Resources • ERP System • Global Real Estate BBA – University of Notre Dame • Advisory Council for DeBartolo Performing Arts Council • Member of Alumni Board MBA – Columbia Business School McGraw Hill Financial | Global Business Services 17
  19. 19. GBS Organization Chart Michelle R. Ferguson Global Real Estate ERP Shared Services Payroll P2P HR Employee Care Contract Administration McGraw Hill Financial | Global Business Services 18
  20. 20. Global Business Services • Three process “towers” with cross functional support – – – – – • Global Payroll Global Employee Care / Special Programs Global Sourcing and Disbursements Special project support (e.g., People Fluent, Physical Separation) Cross tower support (financial planning/estimating, contract administration, service delivery and governance) OBJECTIVE: Deliver predictable, scalable, lower cost HR/Finance service consistently across company. Outsource transactional activities – – – – – – Relationships with industry leading providers that have global capabilities Strong governance Measurements focused (e.g., service level agreements, process health) Aligned to support our businesses Process improvement mindset Opportunities for direct access, self service McGraw Hill Financial | Global Business Services 19
  21. 21. Transformation Requires a Focus on Growth and Required Capabilities MHFI Transformation Goals & Enterprise Value Creation Transformation Goals Growth: Position great businesses for scalable growth  Achieve higher and sustained global growth Performance: Enhance enterprise impact  Capture horizontal synergies across businesses People: Become a high-performance employer of choice  Drive scalability in cost structure  Treat talent and data as strategic corporate assets Cost: Reshape to be fit for growth Operating Model: Increase speed, agility and global connectivity, while building selective enterprise capability McGraw Hill Financial | Global Business Services 20
  22. 22. Enabled by Management Process and Cultural Change… Growth & Value Plan Theme Stand Up MHFI “Evolving” “Sustained High Performance”  Vertical and layered  Flatter and compressed  Competing metrics and opaque allocations  Transparent, consistent, precise Governance & Decision-Making  Uneven criteria and pace  Clear, selective shifts to align on emerging enterprise decision rights Capabilities & Talent  Individual business-based  Selective shared enterprise capabilities & talent  Shifting to greater flexibility and cross-business leverage  Leadership alignment, with mechanisms established and integration underway  Publishing heritage, avoidance of risk  Market orientation with risk management  Hesitant but building momentum  Shared common purpose and vision  US-focused with shifting focus to global – Limited accountability for regional results  Regional measurement with cross-LoB management and accountability by geographic subregion (i.e., ex-Americas)  Revenue and profits  Financial and strategic metrics, with clear accountability Organization Architecture P&Ls Collaboration & Alignment Culture Change Orientation Geographic Leadership Critical Metrics McGraw Hill Financial | Global Business Services 21
  23. 23. Outsourcing Approach: A swift yet structured process Rapid Outsourcing Approach and Timeline Month 1 Month 2 Month 4 Month 5 Month 8 Provider Selection & Contract Development RFP Responses & down-selection Base Case Solution Development To be Vision Provider Selection Negotiations and Contract Award Outbound Due Diligence Transition Begins Site Visits & Inbound Due Diligence/BAFO Outsourcing Objectives Transition Ends RFP/Spec Package MH specific activities Joint activities with Provider Governance Design & Transition Planning Change and Risk Management Communication and Change Management Specifications Package & MSA to Pre- Selected Providers McGraw Hill Financial | Global Business Services Providers Down Selected Provider Selected Contract Awarded 22
  24. 24. Outsourcing summary accomplishments Function Position Scope (MHP) % Annual Savings (Compensation ONLY) Approach Finance & Accounting 295 41% • “Lift and Shift” • FTE model for staffing; dedicated to McGraw-Hill • Timeline driven by stand up of Education and rollout of Oracle • Split of shared accounting functions with Education • Super storm Sandy coverage • Provisioned access to ~100 applications across all service towers • Strong executive level governance • SLA improvements in areas of OTC • Six Sigma projects initiated HR / Payroll 50 17% • Fix, eliminate and ship • Shared resource model • Timeline driven by rollout of Workday • Global HR portal • New customer service tools • Coverage for other markets outside of the US and UK • Reporting and analytics on employee care McGraw Hill Financial | Global Business Services Year 1 Highlights (achieved/targeted) 23
  25. 25. Meetings Framework – Governance (FAO example) Category Name Frequency Tower Timeline Steering Committee Bi-annual All Q2 and Q4 Management Committee Quarterly All Q1 and Q3 AP and T&E 2nd Monday Executive Reviews Monthly (Global) Contract Administration Weekly Operational Reviews OTC 20th of the month R2R Service Delivery Committee 4th Tuesday All Every Friday R2R US R2R EMEA Progress Meeting Weekly (Regional) Every Wednesday Every Wednesday R2R & AP – APAC AP (Global) OTC McGraw Hill Financial | Global Business Services Every Friday Every Tuesday Daily 24
  26. 26. Outsourcing Partners Business Focus Area What they do for us Locations Finance AP, OTC, R2R Hyderabad, India Dalian, China Bucharest, Romania Juarez, Mexico Payroll Global Payroll Manila, Philippines HR services Customer Service Support: Portal, Taleo, Success Factors, Workday Charlotte, NC Woodland Hills, TX Gurgaon, India System development Oracle Kolkata, India Quality control Oracle Chennai, India Bangalore, India McGraw Hill Financial | Global Business Services 25
  27. 27. ERP Implementation • • • Atlas ERP Implementation – Project One launched June 2010; Go-live July 2012 – Replacement of Lawson Financials with Oracle 12 e-Business Suite – Chart of Accounts Atlas Hard Separation – Project launch March 2012; go-live January 2013 – Financial and operational segregation – Separate and distinct bank accounts and ledgers Atlas Physical Separation – Project launch January 2013; go-live February 2014 – Two independent Oracle environments McGraw Hill Financial | Global Business Services 26
  28. 28. Challenges & Lessons Learned • Challenges were many… Outsourcing Finance and going live with a new ERP system the same day Outsourcing Payroll, a new Human Capital Management System for MHE at the same time Understanding key controls early in the project lifecycle • Lessons Learned were many… Communicate, communicate, communicate Coordination Project management Know a Project Manager when you see one Need different skill set in the leadership team Don’t panic, overreact to anecdotal and isolated issues One group does contract administration Pricing, SOW, MSA, IT Requirements McGraw Hill Financial | Global Business Services 27
  29. 29. When you become your own worst enemy 5 RULES NOT TO FOLLOW 1. 2. 3. 4. 5. Rebuilding legacy systems Allowing consultants / experts to drive your projects Aiming for perfection Hobbling the project Asking internal resources to provide their time to a project and maintain their daily responsibilities Don’t hesitate to break virtually every rule held sacred by conventional wisdom McGraw Hill Financial | Global Business Services 28
  30. 30. Q&A McGraw Hill Financial | Global Business Services 29
  31. 31. Office Locations and Contacts Miami - Corporate Headquarters 1001 Brickell Bay Drive 30th Floor Miami, Florida 33131 TEL: +1 305 375 8005 Amsterdam Camerastraat 25 1322 BB Almere Amsterdam TEL: + 31 36 535 00 82 Atlanta 1000 Abernathy Road NW Suite 1400 Atlanta, GA 30328 TEL: +1 770 225 3600 Chicago 525 W. Monroe Street, Suite 1550 Chicago, IL 60661 TEL: +1 312 325 2900 Frankfurt Torhaus Westhafen Speicherstrasse 59 60327 Frankfurt am Main TEL: +49 69 900 217 0 Hyderabad 8-2-120/112/88&89 1st Floor, Aparna Crest Road #2, Banjara Hills Hyderabad 500034 TEL: +91 40 66544000 London Martin House, 5 Martin Lane London EC4R 0DP TEL: +44 20 7398 9100 Melbourne Suite 122B & 122C, Level 1 530 Little Collins Street Melbourne Vic 3000 TEL: +61 3 99097657 New York 110 Wall Street, 17th Floor New York, NY 10005 TEL: +1 646 354 4400 Paris 8, rue de Port Mahon 75002 Paris TEL: +33 1 53 43 0400 Penny Weller NA GBS Advisory Practice Leader Phone: 269 345 7240 pweller@thehackettgroup.com Lindsay Murphy GBS Account Manager Phone: 904 374 1478 lmurphy@thehackettgroup.com Philadelphia 225 Washington Street Conshohocken, PA 19428 TEL: +1 610 234 5500 San Francisco 100 Montgomery Street, Suite 2225 San Francisco, CA 94104 TEL: +1 415 249 3500 Sydney 35 Lime Street, Suite 403 Sydney, NSW2000, Australia TEL: +61 2 9299 8830 © 2013 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. GBS Executive Advisory Program | 31

×