May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

Metrics for Success Using Metrics to Drive Change

Judy Bicking, May 2017

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

About Your Presenter

Judy Bicking is a 27 year veteran of Johnson & Johnson. Her career has been focused on Procure -2-Pay, Order-2-Cash, and developing Shared Service Centers in the U.S. and Europe; earning high recognition for process improvement and major cost savings. She led the first department to earn IOFM AP Departmental Certification designation. Today she is a Public Speaker, does consulting in O2C and P2P and participated as co-founder and played a major role in writing and conducting certification training in these fields. She also owns and operates a retail department store along with her passion in doing mission work at home and abroad.

Process Improvement

• Have you felt that you are the only one driving change?

• Have you been able to get momentum around BP you’ve implemented?

• Is it… can’t or won’t?

NO WAY

Have you tried to improve the process? • GL# assigned by purchaser

• Credit Cards

– Pcard Holder

– Supplier Accounts Receivable

• Evaluated Receipt Settlement: ERS / POR

– Buyers

– Suppliers

Noise: “YOU” people NEVER pay the invoice on time !*%#!

“If an invoice is due in 30 days, we pay it in 60 days. If it’s due in 60 days, we pay it in 90 days. If it’s

Due in 90 days, then they probably don’t Need the money anyway.”

Can’t Fight City Hall

Noise vs. Metrics

• Complaints & Perception • Customer • Staff mbr.

• ASK: “How many times does this happen?”

Choose Metrics: To Focus • What are you trying to

accomplish?

• What are other companies doing?

• How did they go about it?

• What roadblocks did they encounter?

• How did they fix, eliminate them?

• What did they achieve?

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

Where to start?

• Can you get system reports?

• Can you create specialized reports?

• Have you done sampling when reports are not available?

PO NonPO

Total Invoices Inventory NonInv MRO Less $1,000

Where to start?

• Do you know what your biggest Pain Point?

– How?

– Noise or reports?

• What keeps you up nights?

• What frustrates your staff?

– Work arounds.

– C-suite that overrides policies

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

PO NonPO

Total Invoices Total Dollars Avg Cycle Time % Paid-on-Time Cost Per Invoice % No Touch

PO: Inventory

PO:MRO

Non PO: MRO

< $1,000 .

Paper

EDI

Pcard

ERS

Manual

Auto Match

Mismatches

Receipt

Price

Quantity

Total Payments Nbr of Invoices Cost / Payment

Paper checks

EFT

Wire

Pcards

Letters of Credit

Benchmark Data: Metrics and Process

• What are others doing to solve “that” issue

• What type of benchmark company? – Internal

– Competitive

– System

– Generic

– Fast Track

• Conferences (Great Opportunity)

• Websites (IOFM)

• Survey’s (IOFM)

Your Metrics

• Real Facts

• Don’t make pretty

• Get funding

• Approval

• Support

Develop a Solid ROI • Take a Project Management Class

• Develop a strong presentation – Current condition

– Future State

• Immediate: AP Process

• Future:

–P2P

–Global

• ROI with support

• Achievable Timeline

Sell the C-Suite • What’s in it for them

– Reduce Cost / Efficiency

– Compliance

– Cash Control

• Budget Compliance

• Visibility

– Accurate Timely Financial Statements

– Bottom Line Savings

• Discount Management

• Spend Management

• What’s in it for you

– Job satisfaction

– Recognition

– Perception changed

– Seen as a business partner

• What you want

– Financing

– Support: NO BACK DOORS

Choose to Succeed

• Selection:

– AP can control

– Pick a Winner

• Based on Benchmark

• EXAMPLE:

–Negative Receipt Notice

How to Ensure Success

• Monthly Reports • Qrtly Reports to CFO • Rack-em~n~Stack-em • Charge back

• Holiday Inn vs The Ritz

Status Quo • Own it • Become a business partner

• Change your mission from “Best Invoice processor” to:

Leading the organization to World Class by building a cohesive relationship with purchasing to develop

a purchasing and payment strategy for all goods and services that will deliver

bottom line savings. • If you don’t change your perception of your

image… How will you change the organizations?

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

Thank You

Questions