implementing budgeting software - is it worth the trouble ? jarmila pencikova lawnet 2004

Implementing Budgeting Implementing Budgeting Software - Is It Worth Software - Is It Worth

the Trouble ?the Trouble ?

Jarmila PencikovaJarmila Pencikova

LawNet 2004LawNet 2004

AgendaAgenda Software Selection ProcessSoftware Selection Process What to look forWhat to look for Know what you wantKnow what you want Be awareBe aware

My Firm’s ExperienceMy Firm’s Experience Selection ProcessSelection Process 3 years of fun3 years of fun

August 26, 2004 Osler, Hoskin & Harcourt LLP

What Do You Want ?What Do You Want ?


OR

Things to ConsiderThings to Consider

Structure of the SoftwareStructure of the Software SQL-based, Web, User Friendly, etc.SQL-based, Web, User Friendly, etc.

Structure within the SoftwareStructure within the Software Hierarchy of Units (Office, Department, Company)Hierarchy of Units (Office, Department, Company)

Reporting ToolsReporting Tools

Security Security

FlexibilityFlexibility

Import/Export of Data to/from Other SystemsImport/Export of Data to/from Other Systems


Different Types of BudgetsDifferent Types of Budgets

PeoplePeople FTE (Headcount)FTE (Headcount) FTE Dependent ExpensesFTE Dependent Expenses

Salary, Benefits, Professional Fees, E&O Salary, Benefits, Professional Fees, E&O Insurance, Conference/Education Expenses, Insurance, Conference/Education Expenses, Business Development, etc.Business Development, etc.

FTE Dependent EventsFTE Dependent EventsHire & Termination Date, LOA, Pay Increase, Hire & Termination Date, LOA, Pay Increase, Bonus, etc.Bonus, etc.



RevenueRevenue Number of HoursNumber of Hours Hourly RatesHourly Rates People (FTE)People (FTE)



ExpensesExpenses FlexibilityFlexibility Various Allocation MethodsVarious Allocation Methods CommentsComments AttachmentsAttachments Data ProtectionData Protection



AssetsAssets Computers, Software, Furniture, etc.Computers, Software, Furniture, etc. Various Categories for AssetsVarious Categories for Assets Calculation of DepreciationCalculation of Depreciation FlexibilityFlexibility



Other ItemsOther Items Accounts Receivable BalancesAccounts Receivable Balances WIP BalancesWIP Balances Prepaid ExpensesPrepaid Expenses LiabilitiesLiabilities Bank LoansBank Loans


Be AwareBe Aware

Who is helping you with the implementation?Who is helping you with the implementation? Staff from the Software CompanyStaff from the Software Company Third Party ConsultantsThird Party Consultants Own StaffOwn Staff

Do you have enough resources?Do you have enough resources?


Possible ConflictsPossible Conflicts

FinanceFinance ITIT

PeoplePeople PeoplePeople


Osler, Hoskin & Harcourt LLPOsler, Hoskin & Harcourt LLP

500+ Timekeepers plus 750+ Others500+ Timekeepers plus 750+ Others

5 Offices5 Offices

2 Companies2 Companies

CMS (Accounting)CMS (Accounting)

Cyborg (HR)Cyborg (HR)


Our Old ProcessOur Old Process

Spreadsheets, Spreadsheets, SpreadsheetsSpreadsheets, Spreadsheets, Spreadsheets

20 Legal Departments = 120 Documents20 Legal Departments = 120 Documents

32 Support Departments = 128 Documents32 Support Departments = 128 Documents

60-70 Projects = 120-140 Documents60-70 Projects = 120-140 Documents

15-20 Other Excel Documents15-20 Other Excel Documents

Total of 400+ DocumentsTotal of 400+ Documents Multiple Versions of Many


Various Types of DocumentsVarious Types of Documents

Excel DocumentsExcel Documents Actual Budget NumbersActual Budget Numbers

Word DocumentsWord Documents Business Plans, ExplanationsBusiness Plans, Explanations

FileMaker Pro DocumentsFileMaker Pro Documents FTE, SalariesFTE, Salaries


Budget TimingBudget Timing

September to mid-December (15 weeks)September to mid-December (15 weeks) 3-4 weeks for preparation3-4 weeks for preparation 2-3 weeks for input2-3 weeks for input 3 weeks for budget meetings3 weeks for budget meetings 3-4 weeks to finish3-4 weeks to finish 2 weeks for final approval meetings2 weeks for final approval meetings


Our Old ProcessOur Old Process

Not completely broken but should be fixed Not completely broken but should be fixed

Needs more flexibility and controlNeeds more flexibility and control

Needed to make decision about the futureNeeded to make decision about the future


What Did We Want ?What Did We Want ?

Budget Cycle that focuses Users on the Budget Cycle that focuses Users on the Business Issues rather than ‘Getting the Business Issues rather than ‘Getting the Numbers Out’ Numbers Out’

Tool for Budgeting, Analysis, Reporting & Tool for Budgeting, Analysis, Reporting & ModelingModeling

Flexibility – ‘ What if ’ ScenariosFlexibility – ‘ What if ’ Scenarios

Online Reporting ToolOnline Reporting Tool

Contribution Analysis IntegrationContribution Analysis Integration


Our ProcessOur Process

Establish Key RequirementsEstablish Key Requirements Match Firm StructureMatch Firm Structure Integration with HR & Accounting SystemIntegration with HR & Accounting System Comprehensive SecurityComprehensive Security Ability to Calculate Cost AllocationsAbility to Calculate Cost Allocations Must Have Flexible Financial Modeling ToolsMust Have Flexible Financial Modeling Tools Can Import/Export DataCan Import/Export Data Workflow & Version ControlWorkflow & Version Control


Our ProcessOur Process

Establish Vendor Selection & Implementation Establish Vendor Selection & Implementation TeamTeam Chief Financial OfficerChief Financial Officer Manager, Financial Systems (Project Manager)Manager, Financial Systems (Project Manager) Manager, AccountingManager, Accounting Manager, Application SupportManager, Application Support Manager, Project OfficeManager, Project Office Senior Financial AnalystSenior Financial Analyst


Our Dilemma and ChoiceOur Dilemma and Choice

Software tailored to the legal worldSoftware tailored to the legal world

OR

Software that can be used in any industrySoftware that can be used in any industry


Our DecisionOur Decision


Why ?Why ?

Most Advanced Web FunctionalityMost Advanced Web Functionality

Most Flexibility for Future ChangesMost Flexibility for Future Changes

Not Restricted By Vendor Designed Law Not Restricted By Vendor Designed Law Firm ModelsFirm Models

High Satisfaction of Reference SitesHigh Satisfaction of Reference Sites

Fit Firm’s IT Strategy and Profile for Fit Firm’s IT Strategy and Profile for Hardware and SoftwareHardware and Software

Help of Third Party ConsultantsHelp of Third Party ConsultantsAugust 26, 2004 Osler, Hoskin & Harcourt LLP

11stst Budget Year Budget YearFantasy Meets RealityFantasy Meets Reality Web version very different from WAN versionWeb version very different from WAN version Consultants did not understand our issuesConsultants did not understand our issues Consultants team did not have much experienceConsultants team did not have much experience No experience with HR systemNo experience with HR system Access issuesAccess issues System not stable – loss of dataSystem not stable – loss of data Consolidation issuesConsolidation issues No time for regular project/progress meetingsNo time for regular project/progress meetings


ResultResult

Beginning of NovemberBeginning of NovemberABORTABORT

Cancel Budget MeetingsCancel Budget MeetingsConverted to the old processConverted to the old processGot the job doneGot the job doneFired the ConsultantsFired the ConsultantsStepped back and made changes Stepped back and made changes for the 2for the 2ndnd Budget Year Budget Year


22ndnd Budget Year Budget Year

New Release of the Web VersionNew Release of the Web Version

More Time Spent on DevelopmentMore Time Spent on Development

In the middle of the development processIn the middle of the development process Project Manager LeavesProject Manager Leaves DBA LeavesDBA Leaves Senior Financial Analyst LeavesSenior Financial Analyst Leaves

Hired More People Hired More People

Weekly Progress MeetingsWeekly Progress MeetingsAugust 26, 2004 Osler, Hoskin & Harcourt LLP

ResultResult

Some successSome success

Our own staff experts in developmentOur own staff experts in development

Still needs improvementsStill needs improvements FTE Dependent EventsFTE Dependent Events FTE Dependent ExpensesFTE Dependent Expenses


33rdrd Budget Year Budget Year

Changes DoneChanges Done FTE Dependent Events FTE Dependent Events FTE Dependent ExpensesFTE Dependent Expenses ReportsReports Simplified Input ScreensSimplified Input Screens


ResultResult

Major SuccessMajor Success Global Events Global Events Various ScenariosVarious Scenarios High Satisfaction of All UsersHigh Satisfaction of All Users Lawyers Entered Budget Data !!!Lawyers Entered Budget Data !!! No Consolidation IssuesNo Consolidation Issues Reduced Budget Cycle from 15 to 11 weeksReduced Budget Cycle from 15 to 11 weeks


TodayToday

FTE Dependent Events & ExpensesFTE Dependent Events & Expenses % Pay Increases applied globally% Pay Increases applied globally % Bonuses applied globally% Bonuses applied globally ‘‘What if’ scenariosWhat if’ scenarios $ for each Person applied globally$ for each Person applied globally

Conference/CLEConference/CLE

E&O InsuranceE&O Insurance

Business DevelopmentBusiness Development

Professional Fees/MembershipsProfessional Fees/Memberships


TodayToday

RevenueRevenue Targeted Hours per Person Targeted Hours per Person Hourly RatesHourly Rates FTE/HeadcountFTE/Headcount Automatic Revenue CalculationAutomatic Revenue Calculation ‘‘What if’ ScenariosWhat if’ Scenarios


TodayToday

ExpensesExpenses Details attached to numbersDetails attached to numbers Data / Cell ProtectionData / Cell Protection Accounts are colour-codedAccounts are colour-coded

Asset PurchasesAsset Purchases Each Project treated as Department Each Project treated as Department Various Expense and Asset CategoriesVarious Expense and Asset Categories


What’s MissingWhat’s Missing

Depreciation CalculationsDepreciation Calculations

Quarterly ForecastsQuarterly Forecasts

Use the Software as Reporting ToolUse the Software as Reporting Tool

WorkflowWorkflow


So – Was It Worth It ?So – Was It Worth It ?

After 1After 1stst Year Year


After 2After 2ndnd Year Year

MAYBEMAYBE After 3After 3rdrd Year Year

Contact InformationContact Information

Jarmila PencikovaJarmila PencikovaManager, AccountingManager, Accounting

[email protected]@osler.com

416.862.5891416.862.5891

Osler, Hoskin & Harcourt LLPOsler, Hoskin & Harcourt LLP

P.O. Box 50, First Canadian PlaceP.O. Box 50, First Canadian Place

Toronto, Ontario, M5X 1B8 CanadaToronto, Ontario, M5X 1B8 Canada

Questions ?Questions ?

implementing budgeting software - is it worth the trouble ? jarmila pencikova lawnet 2004

Documents

hoskin harcourt llp

people people people

software structure

software sql

software company staff

spreadsheets spreadsheets

budgeting software

conferenceeducation