Our Experiences in Business Process Management By PB Balaji Chief Financial Officer Hindustan Unilever Limited

1. OUR EXPERIENCES IN
BUSINESS PROCESS MANAGEMENT
P B BALAJI
Chief Financial Officer,
Hindustan Unilever Limited

2. KEY MESSAGES
• Business changes are forcing finance to change its role
• To excel in our role we need to change the way we
operate as Team Finance
• Mindset, Process, Structure, People and more
• There are a few obvious and a few not-so-obvious
learnings from such transformations
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3. BUSINESS IS CHANGING FAST
The VUCA World Global,
the new backyard
Informed
consumer
Disruptive
Technology
New regulations
& compliance
needs
Challenging times
are here to stay
An interconnected
world
Active
conversations
Mobile, Social,
Cloud, and…?
Governance is the
bedrock
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4. …& HENCE THE ROLE OF FINANCE IS ALSO CHANGING
Steward
Scorekeeper
Business
Partner
Business Catalyst
 Conscience Keeper
 Focused on governance
 Custodian of assets
Value protection
 Diligent book-keeping
 Accuracy
 Variance Analysis
 Management results
 Commentaries
Value Analysis
 Understand value drivers
 Decision support
Value Management
 Information – Insights
 Analysis to Dynamic
resource allocation
 Strategic Influencing
 Business Advisor
Value Creation
Now we need to perform ALL 4 roles with excellence
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5. TO EXCEL, TEAM FINANCE NEEDS TO CHANGE THE
WAYS OF OPERATION
Value Driver
Mindset
Be the catalyst
bringing insightful
analytics to the table
Flexible
Organization
Drive agility and dynamic
decision making in
business by reducing
touch points
Standardized
Processes
Drive growth and cost
efficiencies by
simplifying and
standardizing
Leverage
Technology
Embrace technology and
drive speed. Radically up
skill teams
Inclusive
leadership
Harness synergy;
Celebrate and drive
diversity
MINDSET STRUCTURE PROCESS SYSTEMS PEOPLE
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6. SHARING A FEW OF OUR
EXPERIENCES

7. Customer Schemes
Business Information
Supply chain services
Record to Report
& Payroll
Banking
Unilever
India
Management Assurance
Order Management
Master Data Management
Customer Billing
Accounts Receivable
Stock accounting
EXTENSIVE OUTSOURCING FOOTPRINT
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8. APPROACH TO FINANCE TRANSFORMATION
Finance
Transformation
Program
Drive rigour in
business cases
Standardise
process
3- Tier modelRisk Management
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9. •Decentralised scanning
•Paper Invoicing
•Multiple Vendor Query
•Customer Delight
From To
•One Aligned Process and system
• Global excellence
Diverse
Process
Diverse
Dataset
Diverse Systems
Dispersed Excellence
Diverse
People
From To
CHANGING THE TRANSACTION PROCESSES
•PAYMENT ON
TIME > 95%
•PURCHASE
ORDER
COMPLIANCE
>85%
Delivering
•AUTOMATED
REPORTING
• WD3
REPORTING
•ZERO SURPRISES
IN AUDITS
Delivering
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1

10. ZERO BASED CONTROLS : FUTURE PROOFING BUSINESS
One Set of
Controls
One Streamlined set
of Financial Controls
globally
50% Automated
controls
Maximise prevent
controls, reducing the
cost of control
Centralized
Monitoring &
Reporting
Exceptions Monitoring
through Automated
Cockpit
Disciplined Gap
Mitigation
Constructive approach
towards Control
Health improvement
Standardize Centralize Automate Realign Process Reduce Cost
Improved Service
Level
Driving Value at
lower costs
Audit Costs ↓ 25%;
Improved hygiene;
Faster organisation
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2

11. Faster, better decisions by exploiting information
Delivered by best in class…
Data Access Capabilities
Data Master
Data
Information
Gateway
Information
Services
Standard
Reports &
Dashboards
Operations
Hub
Analytics
Change Management & Governance
A high-performance,
globally consistent data
ecosystem
Easy access to standard reports,
executive dashboards and
information tools
Reliable, valuable, cost effective
information services and advanced
analytics
INFORMATION MANAGEMENT
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3

12. • The Operations Centre in Bangalore is a key Building block of the I&A Strategy
• Information specialists capable of building, acquiring, and centralising tasks and
workloads and running them efficiently
• Continuously moving up the maturity curve “commodity” services to value added services
Deliver 1500
standard reports to
the business
Provides an
Information Gateway
for easy access
Supports business with
analytics offerings and
external insights
...while driving
Information
Simplification
INFORMATION OPERATIONS CENTRE
FUEL FOR GROWTH....
INFORMATION OPERATIONS CENTRE
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3

13. A Sales tool which uses the Store specific data available from the DMS system to assist
distributor salesman to make every call , a sales call to help land 4P Perfect Stores
UNIFY DMS –
Stores sales history
of assortment ever
sold in every outlet
Outlet Specific
assortment and
quantity
recommendation
pushed into HHT
every day
Salesman executes
assortment and
quantity logic -
Delivering PERFECT
STORES in every call
Back- end analytics
to work out which
SKU should be sold
in which outlet –
TODAY !
LEVERAGING REAL TIME ANALYTICS
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3

14. PEOPLE CHALLENGE
Talent
attraction
Skill
development
Career
progression
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15. BENEFITS

16. TRANSFORMATION BENEFITS
Nimble & Agile Structure
Process Excellence – Cost, Transparency, Productivity &
Time
Speed to business
Autonomous & Automated Process : Indifferent to
Increase in Transaction Volumes
Release of time & energy to effective business
partnering
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17. HOW HAS THIS BENEFITTED US
FTE
Count
Transaction
Processing
Costs
55
39
31
29 28
2009-10 2010-11 2011-12 2012-13 2013-14
Annual Closing timelines
2011 2012 2013 2014
Payment on Time %
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18. TRANSFORMATION LEARNINGS – OBVIOUS
Consolidation of processing locations – key to extract
savings
Standardization of Process - key to efficiency gains
Marrying Organization need to Service Provider
Capability important, Cost not the only driver
Retained Finance – Critical to retain tacit Knowledge
Roles & Responsibility documentation crucial
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19. TRANSFORMATION LEARNINGS – NOT SO OBVIOUS
Never outsource a problem
Use careers in BPO to build talent
Getting business cases delivered is critical for quality as
much as productivity
Put your best people on transformation projects
Be an idealist while dreaming but implement
pragmatically
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20. THANK YOU