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  1. 1. DSG international plc How to Sustain PerformanceExcellence When You Near or Offshore Ian Duffield © Copyright DSG international plc 2006 DSGi plc Confidential
  2. 2. DSGi plcContents:1. DSGi structure and history2. SSC/Client structure & relationship3. SSC location selection criteria4. Why training and education?5. Training elements6. Education elements7. Considerations8. Questions? 18/03/09 © Copyright DSG international plc 2006
  3. 3. DSGi plcDSGi plc Dixons Store Group International trade through 1,450 stores and online stores 2006/07 turnover was £7.4 billion Spanning 28 countries and employing 40,000 people 3 18/03/09 © Copyright DSG international plc 2006
  4. 4. DSGi plcDSGi Shared Service Centre UK accounts payable operations moved into a UK Finance Transaction Centre in Hemel Hempstead in 2006. Shared Service Centre went live in Brno, Czech Republic in August 2007. UK & French AP operations relocated to Brno. Nordic AP operations relocated to Brno in 2008. Additional functions also now handled: - Customer Credit Agreements - Transactional Credit Control - Transactional Customer Service/Customer Operations - Cashiers for BACS/Cash in store payments - Some central and inter-company finance functions 4 18/03/09 © Copyright DSG international plc 2006
  5. 5. DSGi plcClient structure & relationship Tier - 1 Local Centre Responsibility: Tax, regulatory, legal, country specifics, decision support, business facing etc. Tier – 2 Regional Centre Responsibility: Language, Credit control, Tax, regulatory, SSC overflow & cover. Tier – 3 Group SSC Responsibility: Transaction processing, low level queries, report preparation, day- to-day operations. 18/03/09 © Copyright DSG international plc 2006
  6. 6. DSGi plcSelection criteria: Why Brno?“Location!, Location!, Location!” Central Europe with it’s own airport with direct links to the UK. Less than 3 hours from the UK. Less than 2 hours from 3 other cities with UK-linked airports: Vienna, Bratislava and Prague. 18/03/09 © Copyright DSG international plc 2006
  7. 7. DSGi plcSelection criteria: Why Brno? Demographics – young population, several universities. Good language skills. Accessibility, (you have got to get your trainers and support staff in and out). Existing Finance SSC presence, (experienced staff available). Presence of other big companies, (skills and culture already embedded). Good investment support, (Czechinvest prepared to financially support training and education). 18/03/09 © Copyright DSG international plc 2006
  8. 8. DSGi plcWhy Training and Education?Bok’s Law: “If you think training is expensive, try ignorance”.Objectives: To support a world class Shared Service Centre by providing high quality training to the staff. To produce excellent professionals through systems, process and procedures training; education and understanding; and business and operational knowledge. 18/03/09 © Copyright DSG international plc 2006
  9. 9. DSGi plcWhy Training and Education?In order to produce excellent staff who are able to give the standards of service required they must understand:1. What to do - Training2. How to do it - Training3. Why they are doing it – EducationNo 3. is just as important as 1. and 2.If you wish to automate you must have systems which are designed to deal with correct transactions. In addition to processing the correct transactions the staff need to know how to deal with the incorrect transactions.If they know WHY they do what they do, then they will know how to deal with those problems when they arise. 18/03/09 © Copyright DSG international plc 2006
  10. 10. DSGi plcAP Training ElementsPrimary Systems: Support Systems: - Ledger Microsoft Office - Invoice matching system applications? - BACS payments system Telephone systemSecondary Systems: Locally operated databases - Sales order entry system Warehouse systems, (e.g. - Alternative payments method, short shipment notifications) (cheques) Buying systems, (e.g. order cancellation records) Returns systems, (e.g. Return to manufacturer authorisations 18/03/09 © Copyright DSG international plc 2006
  11. 11. DSGi plcPrimary Systems Training ElementsLedger: Invoice handling: Supplier account creation & Invoice processing, (speedkey) maintenance Merchandise invoice matching General expense coding Day-to-day account management Exception handling Invoice & GRNI cleardown Payments processing Reporting Reporting 18/03/09 © Copyright DSG international plc 2006
  12. 12. DSGi plcPrimary Systems Training ElementsPayments system: User and account maintenance BACS Payments 18/03/09 © Copyright DSG international plc 2006
  13. 13. DSGi plcSecondary Systems Training ElementsSales Order Entry systems Alternative Payments: PO inquiry Automated, pre-printed Receipts inquiry cheque production Recognising directs/alternative CHAPS and wire delivery addresses transfers through Group Recognising cancellations Treasury 18/03/09 © Copyright DSG international plc 2006
  14. 14. DSGi plcEducation Modules Corporate and divisional structure Local/divisional business model variances Accounts Payable functions and principles Purchase to Pay process Customer Service VAT legislation UK Contract Law 18/03/09 © Copyright DSG international plc 2006
  15. 15. DSGi plcTraining Considerations Who is your training team? Do you need trainers from multiple divisions/businesses? Do you need to train other non-operational staff, e.g. Managers. Do you use local experts or do you use external trainers? - If experts can they also do their day job while training? If local experts do you need to train the trainers? - Just because they are experts doesn’t mean they can train. Do you bring in trainers from your systems providers? Do you bring the trainees to you or do you send the trainers to them? - Beware of exporting inappropriate culture. 18/03/09 © Copyright DSG international plc 2006
  16. 16. DSGi plcOther Considerations, Examples: Do common terms and conditions of purchase exist across all aspects, (i.e. group/division/subsidiary). If not do you seek to implement them, or at lest align them as much as possible? If not already, do you seek to apply common legal jurisdiction over legal disputes with suppliers? If not, do you need to become familiar with contract law in other countries if you want to roll out contract law training? Do you need to consider moving controls, e.g. do you need to devolve your controls down to cost centres instead of your AP team? Do you need to train your cost centre managers or other invoice approvers? - Purchase to Pay operations and principles. - Contract law and negotiation, (or just pain common sense). 18/03/09 © Copyright DSG international plc 2006
  17. 17. DSGi plcLocal ExpertsDo you keep local support experts in place? Be careful about “fire and forget”. Consider keeping a small team of experts who understand how the business runs and are able to understand when and how operational changes take place. Have your local experts engage in added value activities and let the Shared Service Centre deal with the transactional work. Be prepared to provide continuous support, training and education. 18/03/09 © Copyright DSG international plc 2006
  18. 18. DSGi plcAny Questions? ? 18/03/09 © Copyright DSG international plc 2006