connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Today’s Webcast Presentation
5 steps to achieving integrated financial
planning for your company Presented by Financial Executives International (FEI)
Sponsored by Prophix Software
will begin shortly …
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Learning Objectives After attending this webinar, you will be able to: • Understand how best-in-class companies connect disparate
planning processes
• Learn the 5 steps to transform your planning process, and how to drive value beyond the office of finance
• Discover specific examples of companies that leverage integrated financial planning to increase operational effectiveness and long-term growth
• Discover best practices and common pitfalls in financial, operational, and strategic planning
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Event Notes • Link to today’s presentation and the recording of this webinar will be
sent out to all attendees within 48 hours.
• Those who would like CPE credits (through NASBA) will need to answer all poll questions during the webinar, as well as indicating their interest in receiving CPE credits in the exit-survey. For any questions on CPE credits, please send an email to [email protected].
• Please ask questions on today’s topic via the “Questions” box in your GoToWebinar control panel at any time. We will do our best to get to your questions during the Q&A discussion at the end of the webinar.
• You will be asked to take a short survey when exiting today’s event. We would greatly appreciate your feedback as we strive to improve the ROI we offer to you and future attendees for yours and their valuable time.
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Welcome to
• Mission – The education of senior level financial executives
• To provide knowledge and insight that enable informed decision-making by senior-level financial executives and their organizations.
• The Research – Unique, timely, relevant, practical and objective
• For over 70 years, FERF research investigates the evolving role of senior-level financial executives, practices of financial management and techniques to improve its effectiveness
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
62%
57%
50%
49%
46%
46%
43%
35%
34%
34%
28%
27%
5%
1%
13%
10%
8%
10%
10%
7%
13%
3%
6%
2%
7%
6%
3%
1%
Facilitating analysis and decision making
Ongoing monitoring of business performance
Measuring product and customer profitability
Creating an effective environment for sharing relevant information
Quality of the data used for business decisions
Reducing enterprise operating costs
Creating/maintaining an enterprise-wide view of businessrelationships: customers, products, vendors
Developing business plans and budgets
Managing business risk/Controls to ensure accuracy in compliance
Ensuring consistency between transactional data and analyticals
Integrating the financial function with the overall enterprise
Understanding and managing the drivers of profitability or cost ofservice delivery
Other
None
Need improved technology support Needs the MOST improvement in technology support
Q03/4. Please select the top priorities in your organization that currently need improved technology support/ needs the
most improvement in technology support.
n=210
Top Business Priorities Needing Technology Support
Multiple responses allowed
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
6%
5%
5%
6%
6%
3%
6%
8%
14%
23%
5%
6%
5%
4%
7%
6%
7%
10%
12%
15%
3%
3%
6%
8%
4%
10%
6%
13%
7%
9%
Big Data / Data science
Cloud business
Product cost analytics
E-commerce
Business processmanagement
Enhanced business reporting
Governance , Risk andCompliance
IT Security
Business analytics
Enterprise businessapplications
Ranked 1st Ranked 2nd Ranked 3rd
13%
Q05. Which three technology enabled capabilities are the most important areas of investment to your organization today in
order of importance?
n=210 SUM
Most Important Technology Investment Now- Top 10
47%
33%
31%
19%
19%
18%
18%
16%
14%
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
5%
7%
17%
18%
21%
30%
40%
48%
50%
52%
None
Other
Big Data
Predictive modeling
Statistical analysis
Data warehouse
Customer and product profitability
Budgeting, planning & forecasting
Financial reporting and consolidation
Performance measurement/scorecard/dashboard
Q11. Which of the following business analytics technologies is your organization currently upgrading or enhancing?
n=199
Business Analytics That Need Updating
Multiple responses allowed
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
5 Steps to achieving Integrated Financial Planning for
your company
Nicole Diceman
Product Marketing Manager
Prophix Software Inc.
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Learning Objectives
Understand how best-in-class companies
connect disparate planning processes
Learn the 5 ways to transform your
planning process, and how to drive value
beyond the office of finance
Discover specific examples of companies
that leverage integrated financial planning
to increase operational effectiveness and
long-term growth - Interstates Companies
Discover best practices and common
pitfalls in financial, operational, and
strategic planning
Questions and Answers
What… Why… How…
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Integrated Financial Planning
Without taking a look
at the business from
all angles it would be
impossible to create
a fully informed plan,
budget or forecast….
(Aberdeen Research,
January 2015)
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Integrated Financial Planning
Without taking a look
at the business from
all angles it would be
impossible to create
a fully informed plan,
budget or forecast….
(Aberdeen Research,
January 2015)
Make
Informed
Decision:
strategic, financial
and operational
that continuously
drive the business
forward…
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Integrated Financial Planning What is it?
A complete model…
where the company
links strategic, operational and
financial planning
Combination of
technology and
processes
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Example of IFP - Plan Data Flow
Production
Model
Personnel
Model
Sales
Model
Financial
Model
Financial
Model
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Objectives – Integrated Financial Planning
Generating a holistic understanding of
performance drivers
Balancing sales and operations planning
for profitability
Providing an integrated planning platform
across operations, finance and the
executive team
Quantifying financial risk
Quantifying the financial impact and
interdependencies across planning
alternatives
Increasing business flexibility
Optimizing strategic planning and
resource allocation Answering “what-if” scenarios
1
2
3
4
5
6
7
8
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Better Decision Making – Integrated Financial Planning
IFP improves decision
making when
attempting to grow the
business, this is why
collaborative
organizations have
seen greater increase
in productivity and
revenue.
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
Why It Matters – Integrated Financial Planning
Better
Communication
Better
Decision Making
Meeting
Company
Objectives
Competitive
Advantage
Empowered
Employees
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Polling Question (1 OF 3)
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070 www.prophix.com
5 Easy Steps…
Process
Readiness
Do you have a documented
process set up?
Audit the
Process
Can you answer key questions
IT readiness
Re-examine
the technology tools you are
using User
Readiness
Collaboration
Do you have
a vision?
Is your team ready to become the
strategic office of
finance?
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Nicole Diceman
Product Marketing Manager
Prophix Software Inc.
5 Steps to achieving Integrated
Financial Planning for
your company
Financial Planning, Lean Operations, and Strategic Decision Making:
Bringing it all together
Stephanie Baccam, CPA
Accounting Supervisor, Interstates Companies
AGENDA
• Introduction to Interstates
• Challenges
– Symptoms – Challenges – What we were looking for – The deciding factor
• Solution
– Roll-out – First 100 days – Measurable results
• Key Learnings
– Symptoms to watch for – How to get ready for the solution – How to get the most of the solution
ABOUT THE INTERSTATES COMPANIES
• Interstates was founded in 1953 with HQ out of Sioux Center, Iowa
• With over 600 employees contributing to over $100M in Annual Revenue
• We are a single-source, design-build electrical engineering, automation and construction company
• Hundreds of happy customers across the nation, working in diverse markets including feed, seed & grain, renewable fuels, food & beverage, pet food, milling, and power industries
• Proud recipient of 3 prestigious construction awards from Associated Builders and Contractors of Iowa in 2014
• Our Philosophy is: Understanding Needs Delivering Results
• To learn more about us, visit http://www.interstates.com
ABOUT THE INTERSTATES COMPANIES
http://www.interstates.com/news/
MY ROLE AT INTERSTATES
As the Accounting Supervisor, 3 of my major priorities include:
• Managing the Budget & Financial Reporting Processes
• Includes the budget & forecasts for 7 companies and 50+ departments
• Annual budgeting
• Monthly reforecasting
• Cash Flow Projections
• 1,000 + receivables from 200+ customers
• 1,000 + vendor payments per month
• Providing data and analysis to be used to make strategic recommendations and decisions
SYMPTOMS
• Inefficient. Frustrated. Errors.
• Reliance on Excel spreadsheets to manually conduct financial processes (on tight deadlines)
• Requirement to track inputs, reconfigure broken formulas, and accommodate changes
• Consolidate financials & budgets from 7 companies, each having separate divisions
• No time for reforecasts or cash projections
UNDERLYING CHALLENGES
• With our companies projected growth we simply didn’t have a tool to perform the basic tasks required
• Nor did we have a tool that would help us bring our company to the next level
POLL QUESTION (2 of 3)
WHAT WE WERE LOOKING FOR
• Secure & locked system – To help eliminate errors and access to confidential information
• System to streamline our budgeting and financial process – From entry to consolidation
• Easily configurable to meet our unique requirements – Our companies each have unique needs – A canned product wasn’t going to work for us
• Affordable – We aren’t a huge company so we needed something that we
could afford
• Simple to use – We wanted to be able to manage the system within accounting
without a lot of IT support
THE DECIDING FACTOR
• Rich functionality that goes beyond just automation of the budget, forecasts, and reports – Ability to create unlimited number of multi-dimensional
business models – Detailed planning and what-if scenarios – Drill across data allowing us to pinpoint allocation of job costs
to answer a wide range of questions
• Fast and robust system – No complex skills or coding to learn
• Easily customizable to meet our unique requirements – Flexible and at competitive pricing (even more so than
“canned” solutions), – No locked-contracts or subscription fees
ROLL-OUT
• Started with the basics
– Budgets
– Financials
• During Implementation we were excited to learn that the solution we picked was going to be able to do so much more than what we had first thought
FIRST 100 DAYS
• From Day 1 we were already seeing improvements …
• Time
• Money
• Reliability
• Flexibility
EXAMPLE: BUDGETING
• Completed 7 budget cycles already using CPM
• 6 employees x 3 weeks 1 employee x 2 hours – That’s an extra 718 hours of time-savings per budget cycle!
• Significantly more time for analysis and scenarios:
– What if: we add more employees, utilization rates change, billable rates are altered, costs erode, etc.
“We have the same headcount in accounting that we did before we used any type of CPM solution, despite a steady increase in annual revenue from $40 to $100 million.”
EXAMPLE: PLANNING & FORECASTING
• Down to the details! Personnel and CapEx: – Name, salary/wage, bonus, division, depart., health insurance – Equipment, tools, computers, office furniture, renovations
• Cash flow forecasting
– Forward looking for better decision making
• Utilization of employees across multiple companies – Time planning, employee benchmarks, and revenue projections
“I typically focus on time savings, which relate to our corporate strategy of always wanting to operate leaner. The cost savings based on adoption are also exceptional.”
MEASURABLE RESULTS
• Automation of annual budgeting process – Dramatic reduction in time requirements from accounting staff
• Accurate planning (personnel, CapEx, revenue, cash flow) – Ability to deliver unique insights to business leaders
• Pinpoint true cost of jobs and projects to maximize returns and minimize resource allocations
• Winning new business, creating accurate sales projections and ensuring Interstates’ profitability
• Reporting automation for short and long-term analysis and strategic 5- and 10-year plans
KEY LEARNINGS
From one finance professional to another
SYMPTOMS TO WATCH FOR
• Ask yourselves these things:
– Do your processes feel too manual?
– Are you seeing reoccurring errors?
– Are you missing deadlines?
– Do you have multiple systems to extract data from?
– Do you lack an audit trail?
– How is your security?
HOW TO GET READY FOR THE SOLUTION
• So what do you do next?
– Set expectations with users and leaders
– Prepare to document processes
– Prepare for change
HOW TO GET THE MOST OUT OF IT
• Lessons learned:
– Document the process for end users
– Involve others in the initial set-up
– Keep the solution simple
– Broaden solution across the organization
– Let the software automate your processes, so you can focus on analysis and other important things (like your weekends!)
“Find a tool that allows you to not
focus on the tool.”
Thank You.
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Poll Question (3 of 3)
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
Q&A Nicole Diceman, MBA Product Marketing Manager, Prophix Software
Stephanie Baccam, CPA Accounting Supervisor, Interstates Companies
connecting senior-level financial executives since 1931
www.financialexecutives.org | 877.359.1070
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