Resources Global ProfessionalsLEAN ADMINISTRATION & FAST CLOSINGHow Resources Global Professionals can help: Performance I...
Table of Contents About Resources Global Professionals                   2 Lean Administration & Fast Closing: the Conce...
About Resources Global ProfessionalsWe are a publicly-traded, global professional services firm with a Big Four heritage. ...
Lean Administration & Fast Closing: the Concept           A “Lean Admin/Fast Closing” Project is a Re-engineering of the F...
The Project Goal                 … From                                    To …                                           ...
The Project Benefits       1                              Improve Availability of Financial Data           Faster … more F...
The StrategyProcess                                                  ROUTINE                   FORECASTING                ...
Our Methodology: the Project Steps         PROJECT INITIATION                        “AS IS” ANALYSIS                  DES...
The Project Steps (1/4)         PROJECT INITIATION                         “AS IS” ANALYSIS                          DESIG...
The Project Steps (2/4)         PROJECT INITIATION                       “AS IS” ANALYSIS                   DESIGN THE ROA...
The Project Steps (3/4)          PROJECT INITIATION                    “AS IS” ANALYSIS                      DESIGN THE RO...
The Project Steps (4/4)        PROJECT INITIATION                        “AS IS” ANALYSIS                     DESIGN THE R...
Why Resources Global ProfessionalsWe understand that increasing efficiencies is a focus for companies today. Our clients a...
Why Resources Global ProfessionalsAs a professional services firm with expertise across key business disciplines, Resource...
Annex 1Six Sigma Approach                     14
Six Sigma Approach to a Fast Closing Project                     DEFINE                            MEASURE                ...
Six Sigma Approach – Example: Reporting Cycle                   DEFINE                             MEASURE                ...
Annex 2Project Examples                   17
Project Examples (1/4)Client:          Billion Dollar Global Private Engineering CompanyChallenge:       Reduce close cycl...
Project Examples (2/4)Client:          Multinational, document management and printers LeaderChallenge:       Reporting pa...
Project Examples (3/4)Client:          Financial Services CompanyChallenge:       Streamline financial statements and proc...
Project Examples (4/4)Client:          A $14.1 billion regional US health insurance companyChallenge 1:     Beginning in S...
Project Examples (4/4)Client:                A $14.1 billion regional US health insurance companyHow We Helped:         Th...
Our contacts  Resources Global Professionals (Italy) S.r.l.  Foro Buonaparte, 59  20121 Milano  Tel: +39 02 89097121  www....
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Lean Administration And Fast Closing

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Lean Administration And Fast Closing

  1. 1. Resources Global ProfessionalsLEAN ADMINISTRATION & FAST CLOSINGHow Resources Global Professionals can help: Performance ImprovementMarch, 2011
  2. 2. Table of Contents About Resources Global Professionals 2 Lean Administration & Fast Closing: the Concept 3 The Project Goal 4 The Project Benefits 5 The Strategy 6 Our Methodology: the Project Steps 7 The Project Steps 8 - 11 Why Resources Global Professionals 12 - 13 Annex  Annex 1 - Six Sigma Approach 14  Annex 2 - Project Examples 17 Our Contacts 23 1
  3. 3. About Resources Global ProfessionalsWe are a publicly-traded, global professional services firm with a Big Four heritage.  Founded in 1996 as part of Deloitte;  Management buy-out (1999) and initial public offering (2000). NASDAQ: RECN;  Selectively acquired Big Four service lines in Europe and Asia/Pacific.We partner with business leaders and their teams to plan and execute initiatives as well as support day-to-dayoperations.Working collaboratively with our clients, we provide: PROJECT CONSULTING Project scoping, approach, management and execution PROJECT SUPPORT Subject matter or functional expertise for specific projects OPERATIONAL SUPPORT Management level expertise for day-to-day operations FORBES.COM 100 MOST TRUSTWORTHY COMPANIES Resources was named one of the 100 Most Trustworthy Companies according to Forbes.com for 2009. The annual survey identifies the 100 businesses on American exchanges with the most transparent and conservative accounting practices and most prudent management. 2
  4. 4. Lean Administration & Fast Closing: the Concept A “Lean Admin/Fast Closing” Project is a Re-engineering of the Financial Processes aiming at: 1 Enhancing the Efficiency of Financial Processes and the Effectiveness of Control Systems 2 Reducing the cycle time to “Close the Books” and to complete the “Financial Reporting” 3 Improving the Quality of Reported Financial Statements 3
  5. 5. The Project Goal … From To … High Value Low Value Tasks Activities  Transactional Activities  Forecasting  Manual Adjustments  Financial Analysis  Correction of Errors  Risk Management  Non-Value added Reconciliations  Value added Analysis  Save time  Re-Focus  Improve Efficiency  Improve Quality Work Harder Work Smarter 4
  6. 6. The Project Benefits 1 Improve Availability of Financial Data Faster … more Frequent Data to facilitate better Business decisions Shift Focus … less time to generate data … more time to analyze data 2 Enhance Quality of Reporting Monitoring & Analysis prior to submission 3 Improve the Efficiency of the Back Room Activities Save time spent in non value added tasks Re Focus priorities to Value generating activities 4 Re-Energize the team Team Building … “Think out of the Box” Empowerment Organizational Assessment 5
  7. 7. The StrategyProcess ROUTINE FORECASTING CLOSING REPORTING PROCESSESActivity  L/T Planning  Key Business Cycles  Interfaces to GL  Reclass  Budgeting  Purchase to Pay  Accruals  Feed Reporting  Forecasting  Order to Cash  Manual Adjustments  Variance Analysis  Gen AccountingObjectives  Re-focus  Efficiency  “Buy time” … do earlier  Efficiency & Quality  Quality  Embed Controls  Process Focus  Review & Analysis  Automate  AutomateResult ROUTINE FORECASTING CLOSING REPORTING & ANALYSIS PROCESSES Risk & Opportunities Variance Analysis 6
  8. 8. Our Methodology: the Project Steps PROJECT INITIATION “AS IS” ANALYSIS DESIGN THE ROADMAP IMPLEMENTATIONGoals Goals Goals Goals  Define Project Scope & Timeline  Define Scope of each Cycle  Validate Improvement Opportunities  Implement Changes  Understand Key Business Drivers  Assess Cycle Drivers for each Cycle  Monitor Progress  Define Key Cycles  Map Cycles:  Define Priorities:  Develop Contingency Plan  Rules Setting:  Map as is Process  High/low Impact  Mitigate Disruptions/ Implement  Project Sponsors & Team  Surface Opportunities for  Easy/Difficult to Fix Corrective Actions  Milestones & Deliverables agreed Improvement  Identify Roadblocks  Identify L/T Opportunities  Plan Approved  Define Metrics  Detect Key Constrains  Communicate Progress & Results  Communication Plan  Assess Improvement Opportunities  Develop the Vision & How to get for ea Cycle there  Communicate Progress & Results  Get the Buy-in  Communicate Progress & Results KNOWLEDGE TRANSFER 7
  9. 9. The Project Steps (1/4) PROJECT INITIATION “AS IS” ANALYSIS DESIGN THE ROADMAP IMPLEMENTATIONGoals Major Tasks Tools & Techniques Deliverables  Define Project Scope & Timeline  Stakeholders Identification  Kick-off meetings  Detailed project plan & timeline  Understand Key Business  Build the Team … Resources, Roles & Responsibilities  Workshop facilitation  Planning & Schedule Drivers  Collect inputs from key Players  Team building and bonding  Data request list  Define Key Cycles  Define CTQ’s activities  Rules Setting:  Kickoff presentation  Establish The Tools  Excel, Share point  Project Sponsors & Team  Identify critical processes  Scope document  Milestones & Deliverables  Project Management  Establish performance metrics and goals agreed  Address Logistic issues  Informal Communication  Plan Approved  Communication Plan  Finalize Committees membership  Communicate … Communicate KNOWLEDGE TRANSFER 8
  10. 10. The Project Steps (2/4) PROJECT INITIATION “AS IS” ANALYSIS DESIGN THE ROADMAP IMPLEMENTATIONGoals Major Tasks Tools & Techniques Deliverables  Define Scope of ea Cycle  Team Building … Empowerment … Set Expectations  Process documentation library  Process Mapping  Assess Cycle Drivers (SharePoint)  Map “As Is” processes for ea Cycle  Set Communication Standards  Map Cycles:  Workshop Facilitation  Support ea Cycle Team  Establish Project Routines  Map as is Process  Process maps  Surface Opportunities for  Facilitate Discussions  Publish Metrics Improvement  Recurring Meetings  Project Progress  Deploy Analysis Tools … Measure “As Is”  Define Metrics  Cycle Status  Assess Weaknesses & Opportunities  Assess Improvement  Achievements & Improvements Opportunities for ea Cycle  Measure Progress Ops  Communicate Progress &  Communicate  Communication Results KNOWLEDGE TRANSFER 9
  11. 11. The Project Steps (3/4) PROJECT INITIATION “AS IS” ANALYSIS DESIGN THE ROADMAP IMPLEMENTATIONGoals Major Tasks Tools & Techniques Deliverables  Validate Improvement  Team Building … Keep Momentum … Coach  SharePoint  “To Be” Process Mapping Opportunities for ea Cycle  Design the “To Be”  Workshop  Project Tollgate Reviews  Define Priorities:  Detailed Implementation Plan … Steps, Actions, Ownership  Meeting Facilitation  Publish Metrics  High/low Impact & Timing  Project Progress  Easy/Difficult to Fix  Training and team-building  Develop Solutions & Remove Road Blocks workshops  Cycle Status  Identify Roadblocks  Achievements & Improvements  Detect Key Constrains  Define KPI’s & related Metrics Ops  Develop the Vision & How to  Measure Progress  Communication get there  Communicate  Get the Buy-in  Communicate Progress & Results KNOWLEDGE TRANSFER 10
  12. 12. The Project Steps (4/4) PROJECT INITIATION “AS IS” ANALYSIS DESIGN THE ROADMAP IMPLEMENTATIONGoals Major Tasks Tools & Techniques Deliverables  Implement Changes  Team Building … Transfer Knowledge  SharePoint  Project Tollgate Reviews  Monitor Progress  Implement Changes  Workshop  Publish Metrics  Develop Contingency Plan  Project Progress  Measure Improvements  Meeting Facilitation  Mitigate Disruptions/  Cycle: Implementation Status Implement Corrective Actions  Share Best Practices  Training and team-building  KPI’s workshops  Identify L/T Opportunities  Design communication materials for various audiences  Communication  Communicate Progress &  Roll out training Results  Measure KPI’s Progress  Define Corrective Actions KNOWLEDGE TRANSFER 11
  13. 13. Why Resources Global ProfessionalsWe understand that increasing efficiencies is a focus for companies today. Our clients around the world aretrying to do more with less and contain spend.The key is achieving these efforts as quickly as possible without interrupting critical business operations.Experience, functional knowledge, strong project management and business analysis skills are necessary, inaddition to the ability to effectively manage the change to ensure it is sustainable for the long term. Every day,we are helping our clients with this effort, including enterprise-wide to functional area specific initiatives.Averaging over 18 years of experience, our Consultants have helped companies in every life cycle stagesuccessfully contain costs.By leveraging our past experiences and current best practices, Resources can assist with various cost reductionand efficiency initiatives by focusing on project management, execution, and/or back-filling your team members.Resources provides a flexible resourcing model whereby projects can be staffed up or down according todeliverables and subject matter expertise requirements. 12
  14. 14. Why Resources Global ProfessionalsAs a professional services firm with expertise across key business disciplines, Resources is well positioned toprovide cross-functional consulting services built on global best practices. We provide access to the intellectualcapital needed to implement your strategic initiatives.Our value proposition of highly experienced, deeply capable personnel, engaged under the client’s direction andoffered at competitive rates, yields a total cost-of-ownership solution that is unique in the professional serviceslandscape.Because of our Consultants’ knowledge and experience, they can add value immediately, work more efficiently,and transfer knowledge appropriately to your internal teams. As an added benefit, our Client Service Teamstands ready to offer support to the initiative at no additional charge. 13
  15. 15. Annex 1Six Sigma Approach 14
  16. 16. Six Sigma Approach to a Fast Closing Project DEFINE MEASURE ANALYSE IMPROVE Define Quick Business Research and Fast Value Stream Mapping Change implementation Assessment Drivers and classification of criticalities KPI’s High level  Define client’s  Define OPI’s  Define added-value  Design of change plan mapping: business drivers  Measure volumes, activities  Define indicators of processes, roles  Define the KPI’s critical issues and causes  Evaluation of criticalities change and systems  Quantification of savings  Define control indicators Plans of and benefits  Implementation of improvement improvement plan projects already  Training and education ongoing  Communication Control Control Control 15
  17. 17. Six Sigma Approach – Example: Reporting Cycle DEFINE MEASURE ANALYSE IMPROVE Define Quick Business Research and Fast Value Change Assessment Drivers and classification of criticalities Stream Mapping implementation KPI’sVOC  Define client’s  Define OPI’s  Define added-value  Proposal of Compliance to business drivers  Reconciliation activities short/medium period accounting  Data quality  Adjustments activities  Master File continuous improvement plan requirements  Information  Measure manual journal update (VA)  Define indicators of Timeline completeness entries vs. total booking  Accounts reconciliation change Compliance to  Punctuality  Delay indicators (QVA)  Decrease of time for Group rules  Operational  Rework (NVA)  Measure volumes, Closing activities ..... efficiency and  ...... critical issues and causes  Timely data effectivenessProcess Map  Estimate errors  Evaluation of criticalities reconcilation Sub-Systems  Define the KPI’s  Low level of know-how  Manual adjustements  ..... CoGe  Entry accuracy  Lack of communication  Delays  Define control indicators Riclassification  Submission within  ..... Reporting System timelines  Quantification of savings ..... and benefitsOngoing projects  Decrease of time for HQ projects Closing activities .....  Cost containment  Improved data analysis capability 16
  18. 18. Annex 2Project Examples 17
  19. 19. Project Examples (1/4)Client: Billion Dollar Global Private Engineering CompanyChallenge: Reduce close cycle to meet IPO requirementsHow We Helped: A Resources Consultant acted as the project management office and went through each project to identify scope, sponsor and project lead at the beginning of the project. The Consultant held weekly status meetings to monitor timelines, issues and resource constraints. The client’s close cycle was reduced from 20 work days to 10 work days. All of the close tasks were tracked and then mapped by work day. Critical path was identified as well as the related processes which then became projects. The projects identified were:  Simplify the allocation process  Improve Intercompany Accounting  Improve the Consolidation Process (Resources Consultant as Project Manager)  Selectively Simplify and Improve the COA  Matrix Reporting Implementation  Simplify and Standardize JV Accounting  Improve the Close Calendar and Measure Compliance  Bring Discipline and Increase Frequency of Account Reconciliations  Address Materiality Thresholds  Improve Revenue Recognition(Resources Consultant as Project Manager)  SOX Compliance  F&A Website Development Significant changes to revenue recognition were accomplished by establishing a global policy followed by a revenue recognition handbook consisting of more than 70 pages, along with new technology (Optimal) and tools (workbenches and workbooks). For the consolidation process, annual top‐side entries were researched and loaded into the ERP system. A streamlined consolidation process was established with validation and analytical tools. The process was implemented first for the Americas and then was rolled out to the 2 other global service centers. The company continues to pursue and evaluate the critical path with the goal of increasing reporting and analytics within a 10 day close cycle. 18
  20. 20. Project Examples (2/4)Client: Multinational, document management and printers LeaderChallenge: Reporting package optimization process , aimed to be aligned to new timelines due to an acquisition.How We Helped: Resources led a project of full re-design of financial processes, aimed to make the month end close reporting activities to HQ more effective, this need being due to an acquisition that also involved a downsizing. The project included a wide range of functions: procurement, sales, payroll, accounts payable and receivable, intercompany accouting. Resources partnered with the client’s staff in mapping the processes as-is, in order to identify and implement improving solutions, delivering coaching and training courses to employees. We also led the optimization process required to outsourcing IT provider.Client: A Major Manufacturing Subsidiary for an International Multi-Billion Dollar Company, with Three Manufacturing FacilitiesChallenge: The month-end financial close was consistently delayed and the financials habitually reflected inadequate analysis and recurring surprises. The Finance Department suffered from low credibility with corporate management.How We Helped: Our Consultants implemented a revised closing schedule and balance sheet reconciliation process, developed a critical path analysis by reviewing the current closing steps, discussed and reached agreement on changing or eliminating processes which were delayed or not providing value add to the closing report. We created key control practices, including closing check lists, recurring and standard journal entries, management review and sign offs, etc. In addition, we proposed and received agreement from local management to begin an earlier closing process that included a transaction cut-off two days before month-end, and worked with the IT Department to modify the ERP system to the new closing dates. Our Consultants established a complete balance sheet review process as an integral part of the closing process, requiring that all balance sheet accounts were reconciled at least five days after month-end. Certain critical accounts, such as inventory and intercompany accounts were reconciled before the financials were reported to corporate. Finally, we implemented a reconciliation process between the financial information from the subsidiary’s general ledger systems to the financials uploaded and reported to corporate through Hyperion to ensure accuracy of reported information. 19
  21. 21. Project Examples (3/4)Client: Financial Services CompanyChallenge: Streamline financial statements and processes.How We Helped: Resources streamlined financial statements, researched accounting disclosures and discussed the accounting impact of specific fund structures. Further, our professionals re‐engineered the fund administrator equity calculation processes, ensuring consistent application and reducing quarterly cycle time from 100 to 75 days, while materially improving the quality of the analysis and producing real‐time estimated net asset values.Client: A Global Financial service companyChallenge: The client has experienced significant challenges with their financial reporting requirements (US GAAP, Regulatory and Management) since their 2001 integration with a leading bank. The company recognized that a new business architecture (processes and systems) is required and decided to implement a new Enterprise Performance Management solution and launch a Process Improvement initiative within finance.How We Helped: Resources provided with subject matter experts on business process improvement and process reengineering, methodologies and tools to lead this critical initiative. Resources is currently leading the finance process improvement initiative, allowing internal staff to focus on other bank priorities. 20
  22. 22. Project Examples (4/4)Client: A $14.1 billion regional US health insurance companyChallenge 1: Beginning in September of 2005, the client sought to update and streamline business processes related to membership, case management, back office services (finance and accounting, human resources, and information technology) and regulatory changes related to the Medicare Modernization Act (“MMA”).Challenge 2: The client sought to effectively build a process improvement mentality into the corporate culture through the effective implementation of key process improvement initiatives, in support of their aggressive growth targets.How We Helped: Resources deployed a team of Process Analysts (who were also Six Sigma Black Belt Certified Consultants) to work with the client. We have had anywhere from 5 to 15 consultants assisting this client across various improvement initiatives over the course of the past three years, working in sites across the client’s four state region. Our scope has been focused on executing particular initiatives and supporting the managers and directors of the Center for Process Excellence whereby we provide the tactical skill sets to support the internal group. The Challenge 1 MMA project began in Sept of 2005 (4 Consultants) and we still have 2 consultants working on various aspects of it. Overall we have had a continuous presence supporting the Center for Process Excellence from 9/05 through today. Our team seamlessly integrated with the internal team to develop current/future state process maps, develop business cases, identify metrics and measurements, and analyze future state improvements. We created a customized program and business process reengineering (“BPR”) methodology, tailored to meet the client’s need for a cross-functional, end-to-end view of each business function. Working with the client’s management, using documented findings, issues, and recommendations, and performing appropriate qualitative and quantitative analysis, we developed processes that partially or completely reengineered processes in month-end financial statement preparation, enterprise system life cycle, performance management, managed health care delivery, strategic sourcing and contracting, training delivery, and IT procurement. Resources worked with the client toward satisfying over-arching legal, financial, and regulatory requirements, while building toward organizational strategic goals. To be continued on the following page 21
  23. 23. Project Examples (4/4)Client: A $14.1 billion regional US health insurance companyHow We Helped: The Challenge 2 process improvement project had our team of Consultants working with the client’s teams on business case development, current state/future state process mapping, metric identification and measurement, and future state improvement analysis.We worked on initiatives that spanned many different functional areas, including finance and accounting, where we mapped the month-end close process and a 1099 Tax process. Additionally, we mapped claims underwriting processes. In both projects, the process documentation workflow varied depending on the project, and included multi-person facilitated process sessions whereby our Consultants lead groups of 10 process “owners” through process modelling and improvement idea workshops, to more one-on-one modelling efforts. More frequently, the task involved meeting with designated client process owners to model the current state in Visio (some were completed in IBM WBI (Workflow Modeller)). Once the models were constructed, they were sent back to process owners for validation.Relevance of Example Process mapping, process improvement, and BPR methodologies. Use of Six Sigma qualified Consultants. 22
  24. 24. Our contacts Resources Global Professionals (Italy) S.r.l. Foro Buonaparte, 59 20121 Milano Tel: +39 02 89097121 www.resourcesglobal.com Gabriele Giacoma Managing Director gabriele.giacoma@resourcesglobal-it.com Ottorino Capparelli Client Service Manager ottorino.capparelli@resourcesglobal-it.com 23

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