Embed Size (px)
DESCRIPTION
Donn Hanbidge, Ontario Power Generation Inc. - Speaker at the marcus evans Energy CFO Summit 2012 held in San Antonio, TX delivered his presentation on Transforming OPG’s Finance Function
Citation preview
O N T A R I O P O W E R G E N E R A T I O N
O N T A R I O P O W E R G E N E R A T I O N
Transforming OPG’s Finance FunctionTransforming OPG s Finance Function
Donn Hanbidge, CFOg ,
Energy CFO Summit
February 7-8, 2012y ,
O N T A R I O P O W E R G E N E R A T I O N
Transforming OPG’s Finance functiong
Improving Efficiency & EffectivenessImproving Efficiency & Effectiveness
C ti I tContinuous Improvement
The Road Ahead
2Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
OPG’s Corporate Profilep
100% owned by the Province of Ontarioof Ontario
19,791 MW generating capacitycapacity
65 hydroelectric, 3 nuclear and 5 thermal stations
Produce ~60% of Ontario’s electricity
~11,000 employees
Investment Grade credit ratingsInvestment Grade credit ratings
3Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
IMPROVING EFFICIENCY AND
EFFECTIVENESSEFFECTIVENESS
O N T A R I O P O W E R G E N E R A T I O N
Improving Efficiency & Effectivenessp g y
Decentralized & Centralized Services & Full-Service
Multiple locations
Decentralized Controllership
Leading edge technology & hi h iDifferent application
platforms
high process automation
Ease of access to information
Manual processes Valued business partner
5Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
Improvement Initiativesp
Invest in technology
• Consolidate applications to one common platform
• Increase process automationIncrease process automation
• Exploit leading edge technology
C t li t ti iCentralize transaction processing
Standardize and simplify processes
Optimize resource allocation
Improve access to informationImprove access to information
6Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
1st Quartile Efficiency & Effectivenessy
7Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
World-Class Performance
8Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
CONTINUOUS IMPROVEMENT
O N T A R I O P O W E R G E N E R A T I O N
Focus on Continuous Improvementp
10Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
THE ROAD AHEAD
O N T A R I O P O W E R G E N E R A T I O N
External Challengesg
Low growth in electricity demand
Low market prices
Decreasing capacity and electricityDecreasing capacity and electricitygeneration
Higher expectations to achieve an appropriateHigher expectations to achieve an appropriate return on equity, while limiting impacts on customer rates
Urgent need to align cost structure with declining capacity and productioncapacity and production
Energy CFO Summit 12
O N T A R I O P O W E R G E N E R A T I O N
Organizational Designg g
Energy CFO Summit 13
O N T A R I O P O W E R G E N E R A T I O N
Our Transformation Process
Start with a clean slate
Focus on transformational changes
Establish clear accountabilitiesEstablish clear accountabilities
Eliminate any duplication
B ifi b t k th t ill tBe specific about work that will stop
Focus cost reduction efforts on non-core work areaswork areas
Choose lowest cost, most efficient approach
Energy CFO Summit 14
Maintain focus on safe, reliable electricity generation
O N T A R I O P O W E R G E N E R A T I O N
Finance Accountabilities
Energy CFO Summit 15
O N T A R I O P O W E R G E N E R A T I O N
Finance Service Delivery Modely
16Energy CFO Summit
O N T A R I O P O W E R G E N E R A T I O N
Structural Improvementsp
Realign organization and roles to centre-led organi ational modelorganizational model
Leverage Centres of Excellence
• Investment Planning, Management and Performance Reporting, and Corporate Business Planningg
Expand Shared Financial Services Centre that will deliver centralized accounting & transactional services
Focused business partner support by leveraging the use of Centres of Excellence, centralized services, and greater use of self-service
Energy CFO Summit 17
O N T A R I O P O W E R G E N E R A T I O N
Process Improvementsp
Simplify governance and policies• Business Case Summary process• Organizational Authority Register
Streamline business planning process• Improve integration with strategic planning
d it l ll tiand capital allocation process• Reduce detail and condense timing
St d di t tiStandardize management reporting• Standard suite of reports & eliminate ad-hoc reporting• Automate delivery methods
Energy CFO Summit 18
O N T A R I O P O W E R G E N E R A T I O N
Process Improvementsp
Centralize performance & scorecard reporting • Reduce effort to create multiple
performance and scorecard reports
• Improve alignment of measuresand targets
Transaction processingTransaction processing• Automate matching and posting of invoices
I ff ti f I t l A ditIncrease effectiveness of Internal Audit• Extend audit cycle for low risk business processes
I f t l lf t• Increase use of control self-assessment
Energy CFO Summit 19
O N T A R I O P O W E R G E N E R A T I O N
People & Rewardsp
Leadershipp
Culture and leadershipCu tu e a d eade s pbehaviours
Talent
Align objectives and accomplishments with rewardsp
Energy CFO Summit 20
O N T A R I O P O W E R G E N E R A T I O N
Future State Finance Function
A trusted business partner driving valueA trusted business partner driving value
Efficient service delivery model
• Leverage expertise in COEs and Shared services
• Streamline governance & processes
A World-Class Finance organization
Energy CFO Summit 21
O N T A R I O P O W E R G E N E R A T I O N
World-Class Performance – A Roadmapp
Benchmark & undertakegap analysisgap analysis
Utili bl k h tUtilize blank sheet approach
Map out journey to World-Class
Frequent communication with stakeholders
Energy CFO Summit 22
