国际集团集中管理（英）.ppt

1、Ufsoft ERP forum 2002.08.08 Hangzhou,Group management of global operations -Finance management in the 21st century,Introduction.,General accounting. Tax.Accounts receivable.Accounts payable.Payroll.Employee Expenses.Inventory.Fixed assets.Project / job trackingInternal cost distribution.,Financial f

2、orecasting.Cash management. Foreign exchange.Insurance / risk management.Investment / borrowing.,Achieving “excellence” will entail new practices across all finance functional areas.,Functional Areas,“Common Practice”,“Good Practice”,“Finance Excellence”,Setting targets based on accounting measures:

3、EPS/ROE/ROI,Performing basic capital/portfolio analysisPerforming initial M&A appraisals,Managing risk against rigid rulesConducting treasury operationsBuilding tax planDeveloping funding plan,Compiling business plansIndependently approving or developing capital and operational budgets,Processing tr

4、ansactionsCompleting basic accounting/general ledger functions,Monitoring past financial performance against budgets,Reporting financial information against a schedule,Identifying financial impact of business strategyUnderstanding drivers of value creation,Analysing background and source data for:Dr

5、ivers and trendsAccuracyCertaintyDeveloping alternatives for capital/portfolio structure,Developing options and recommendations around funding, tax and treasuryEvaluating financial and business risks in context of business objectives,Standardising and streamlining budget processUsing activity-based

6、metrics to identify budget priorities,Automating transaction processingDeveloping best-in-class operations against:CostSpeedQuality,Managing improvements of operational processesEstablishing value based measuresIntegrating measures to ensure alignment and consistency,Developing streamlined reporting

7、Producing real-time dataAdapting output to needsResponding to investor queries,Contributing to development of business visionIdentifying and modelling likely scenariosPlanning and leading long-term value creation,Proactively identifying external and internal capital allocation optionsEvaluating stra

8、tegic alliances and opportunities,Empowering operational staff to control risksManaging risk against business principlesPositively managing risks as potential opportunities,Developing budgeting process that:Is rapid and reacts to opportunitiesIncludes contingency plansFacilitating budget as the proc

9、ess which matches planned activities against the strategy,Outsourcing of non-core activities,Combining a balanced set of financial and non-financial measuresAligning measures with business strategy and tactical goals throughout organisationCommunicating strategy through choice of measures,Introducin

10、g predictive perspective to reportsManaging investor relationships and expectations,Performance Management,Communication,Financial Operations,Cost Planning and Budgeting,Funding, Tax and Treasury,Investment Management,Financial Strategy,Finance as a powerful tool to run a corporation.,Frequent compa

11、risons of Corporate reporting activities with statutory regulationsMinimal number of Corporate accounts with cost justification of increasesLimited number of reporting entitiesUnit accounting operates within Corporate policies and procedures but maintain a separate ledger(s) with a flexible chart of

12、 accountsCommon Chart of AccountsAutomated consolidation upload from unitsOriginator responsible for quality (zero-error tolerance) Automatic interface between General Ledger and subsystemsTransactions are coded with sufficient information for multiple reporting requirementsGeneral Ledger contains o

13、nly summary data of subsystem activity,Automated account reconciliationStandard general ledger packagesMulti-currency and multi-lingual accounting packagesFinancial database for analysis & reportingAutomatic inter-company posting, reconciliations and eliminationsInter-company charges consolidated an

14、d funded at one time each monthReal-time integrated financial system with continuous close (Event-Based Accounting) Automation of controls / clerical functionsIntegrated financial / operational databaseSupport for:Activity Based ManagementResponsibility Reporting,Index.,Finance transformation since

15、the 1990s. Finance control over global operations.Case studies.,Index.,Finance transformation since the 1990s. Finance control over global operations.Case studies.,The agenda is shifting. . .,Recent agendaFinance process redesignImprove the control frameworkImprove operational efficiencyImplement ER

16、P applications Redesign the role and organization of finance,Impact of eBusinessIncreased pressure for productivity and “value” added FinanceSpeed and transparencyAdvances in technologyChanges in the the way business is doneDistribution of skills across the organizationGlobalisation,Changing expecta

17、tionsValue added finance Accessible and visible business intelligence & performance measuresGreater speed, flexibility, responsiveness and cost efficiencySelf service / better serviceCollaboration and connected communitiesMulti-skilled employees,1990s,21st Century,. . . from transaction processing t

18、o value-added decision support.,Number Cruncher,21st Century Finance Partner,Decision Supporter,Number Manipulator,1990s,21st Century,Transactions MinimizedProvider of Significant Strategic valueRealigned to operate like a business,Significant Efficiencies ObtainedImplementing Analytical Solutions,R

19、educing Cost of Finance Building Effectiveness Foundation,Non Value Added Function,Legend,Decision supportControlReportingTransaction Processing,Shared services or outsourced financial transaction processing,Core finance functions,Few companies consider finance to be achieving its maximum efficiency

20、 and effectiveness potential.,According to CGEYs RapidFx Benchmark Study - Only 18% of companies utilize a Group/Sector/Corporate data warehouse.Only 46% of companies have implemented shared services as a key part of the companys business strategy.Of those that do utilize shared services, only 17% h

21、ave clear performance measures. 67%, however, view this as very important.Only 37% of companies say technology has been the key enabler for their shared services. However, 79% say technology should be the most important key enabler for shared services.Few companies have been successful in leveraging

22、 statistical analysis software for internal and external reporting needs.Few companies are succeeding in driving maximum business value from their technology investments by automating and routing transaction processing.,All financial processes are coordinated around a common goal of improving shareh

23、older value.,Shareholder Value,Enterprise value maximization,Transactional processing,Management insight,Coordinated transformation,How does finance optimize, grow, downsize, and invest in order to drive shareholder perception?,How does finance synthesize and analyze data to provide true business in

24、telligence supporting critical decisions?,How does finance significantly improve or even get out of the traditional finance transaction business?,Quantitative and qualitative benefits of a 21st century finance organization.,Improved shareholder value due to an ability to understand and influence the

25、 true drivers that impact it.Reduced costs due to elimination of shadow finance organizations in the business units. Reduced costs due to optimization of transaction processing spend.Reduced costs due to the elimination of disconnected, finance-related technology purchases.,Quantitative,Qualitative,

26、Accurate information to react/recover more quickly when the economy changes.Understanding of how to combine cost cutting efforts with effectiveness improvement efforts to move along the transformation path.Evolution to a business partnering model between finance and revenue generators. Finance savvy

27、 enterprise/culture.,Finance therefore becomes a proactive unit in the firm.,Proactive Agenda,High fixed cost business modelFTE cost reductionsMatrix organization Transactional processing consolidationSemi-integrated technology platformsLarge reporting packages,Renewed shareholder value focusFinanci

28、al transparency and integrityData qualityStreamlined organizational accountabilityVariable cost of infrastructure and workforceProductivityOrganizational adaptabilityTechnology as an enabler,Operational excellence,Reactive Agenda,1990s,21st Century,. .to possess the key characteristics of the 21st c

29、entury.,Value-added customer service delivery model.Highly skilled finance decision support resources.Financial skillsets “embedded” in key business areas.,Enhanced alignment of strategy and operations.Integrated budgeting, forecasting, measurement, analysis.Optimized transactional efficiencies thro

30、ugh outsourcing and shared services. Integrated processes across the financial supply-chain of trading partners.,Advanced web-enabled self-service and productivity enabling tools.Integrated, corporate portals with secure links to applications.Integrated projection and analysis tool suites.,People,Pr

31、ocess,Technology,Index.,Finance transformation since the 1990s. Finance control over global operations. Case studies.,A global group can only start to control if it has the right finance function.,One of the first steps is to realise that the boards top responsibility is to the shareholders. Only th

32、en are changes possible leading to board reshuffles and the creation of a global CFO.Many Asian MNCs have only recently hired a CFO. Sony did so 3 years ago. Fujitsu hired its first global CFO in March 2002. Why this change ?It is global competition and global requirement to publish transparent acco

33、unting that has pushed companies to improve their finance department. And a proper finance department in turn then assists management in building the right structure to manage a business such that it becomes competitive. CFOs help top management push through changes that are necessary for a companys

34、 financial well-being, and sometimes survival. CFOs push through workforce reductionslike at Fujitsu in Japan. CFOs are no longer only focused on numbers. They are becoming more and more involved in all aspects of the business. It is not uncommon that large MNCs ask the CFO to take over the CEO job.

35、,Source: Factiva 2002, “The new CFO of the Future” KPMG,Finance helps large groups develop strategies.,Three core aspects to change in business is creating a new role for CFOs.GlobalisationNew techniques and conceptsTechnologyMajor challenge for CFO is to formulate and communicate strategy, both int

36、ernally and externally. Once strategies are formulated, then these have to be translated into action plans and finance plays a key role in implementing and driving the strategy.,Source: Factiva 2002, “The new CFO of the Future” KPMG,Index.,Finance transformation since the 1990s. Finance control over

37、 global operations. Case studies.,General Electric is able to track all its global businesses in real-time.,Full digitisation of GEs back office: GE is currently working to completely digitize its back office so that almost 100% of employees can focus on “front office” activities,Real-Time tracking

38、of all GE businesses in real time: GE is currently leveraging technology in order to be able to monitor all GE businesses at any time,Seamless connection with customers: GE is creating a seamless demand chain by exploiting the full potential of its e-exchange hubs and clear understanding of customer

39、s needs,Source: GE, CGE&Y Analysis,Nissans financial reporting was a disaster.,Nissan Motor Co. Ltd. is the worlds 36th largest corporation with operations in 97 countries and investments in 1,400 companies. In 1999, Nissan entered into a historic agreement with Renault S.A. of France when Renault p

40、urchased a 36.8% controlling interest in the Japanese auto manufacturer. What did Renault discover ?Nissan did not have one single set of financial reports - making it virtually impossible to make any decisions.One regions revenue could not be compared to another. The system was not well-organized a

41、nd rigorous enough for a $50 billion company.Nissan suffered from management problems, difficulties in financial reporting. Various financial re-engineering projects were conducted with 2 goals in mind -Achieve data consistency and timeliness objectives (global Group consolidation within 7-10 workin

42、g days) Provide flexible, but integrated, management database and reporting.,Source: CGEY,Financial re-engineering was one ingredient in Nissans recovery after 10 years of losses.,Nissan implemented consistent financial measures and a database for business analysis. The system allows Nissan to have:

43、A common chartered account.A single reporting and consulting system.A common consolidation system with Renault.Now all 315 Nissan companies will report to the same chartered account and adhere to the name accounting rules and principals. The system will report on the Japanese GAP, the US GAP and Eur

44、opean international accounting standards. With this database, it is now possible to extract the reports according to:Company.Business function.Market.Product.,Source: CGEY,Daiwa Securities Group Inc.,Daiwa is Japans 2nd largest securities firm with revenues of US$37.6 billion. Three years ago, it sc

45、rapped its board in favour of a smaller executive style board with outside directors.In 2001, they created for the first time a head of global finance. The head of global finance has carried out major tasks:Clean up Daiwas balance sheet by writing off US$1.1 billionCentralised groups cash management

46、Upgraded ITInstalled a rigorous risk management system which tracks risks on a daily basis.Daiwa is very conscious of shareholder value.Fund managers have noticed this “financial turnaround” and increased their stake in Daiwa from 17% to 32% today.,Source: Factiva,IBM has streamlined its organisatio

47、n through Total Quality Management in its finance department.,IBM,Objectives,Maximize shareholder value,TQM-based process re-engineering (concerning all functions throughout the company),Focus on Total Quality Finance aiming to maximise customer satisfactionLinkage of strategic planning and financia

48、l operations,Role and Functions,Exclusive responsibility for main finance decisionsFinance managers positioned as inspector and auditor,Partnership with operational units to boost efficiency in product development, customer relations and basic financial transaction processingFinance managers positioned as facilitator and coach,Organisation,Decentralised:Each country ran its own treasury centre,Core processes have been centralised (eg treasury)Small teams made up of experts specialising in specific processes across the company (e.g. purchasing and accounts payable),Tools,