10 November 2015 - MediaPlatformmp126803.cdn.mediaplatform.com/126803/wc/mp/4000/... · • Engagement management • Finance and Procurement management Helps us understand our

Coexistence webcast

10 November 2015

Page 2 Coexistence webcast

Today’s presenters

Lacey RuzankaAssociate Director – Americas Finance

Kerri BrownMercury SDA Leader

Goutham GoudgereManager – Advisory Services

Axel MeyerMercury Business Leader

Carol CalandraGroup CFO Markets

Alasdair McAlleyEMEIA Markets Operations Leader


Coexistence webcast agenda

Introduction to Mercury Axel Meyer

► Coexistence overview► Cutover► My Business

Carol Calandra

Top two scenarios and Q&A Kerri Brown, Goutham Goudgere, AlasdairMcAlley, Lacey Ruzanka

Where to get help and next steps► Local finance team/network► Mercury CHS

Carol Calandra

FacilitatorTopic


Introduction to Mercury


“Change is inescapable. Whether youview change as good or bad, it’show you respond to it that matters.In a changing world you need toadapt or be left behind. At EY, we’readapting and continuing tostrengthen and better integrate ourglobal organization.”

Mark A. WeinbergerGlobal Chairman and CEO


What is Mercury?

Mercury covers:• Opportunity management• Relationship management• Engagement management• Finance and Procurement management

Helps us understand ourbusiness better and improve

profitability

Helps make our people’slives easier

Helps us achieveVision 2020

Creates a competitiveadvantage and helps EYbecome the most globalBig Four organization

Mercury will fundamentally transform how our client servers manage day-to-day engagements –giving us a competitive advantage


Fully deployed, Mercury provides benefitsfor many

Exceptional clientservice

Collaborative teams

Efficient cross-border engagements

Accurate information

All in one place

Mobile access

Globally integrated

Transformational

Growth

Making EY morecompetitive


Mercury’s broad impact on EY technology

GFIS Inter-Action Retain MMT GT&E gBiller

Mercury

GTAC GHRS Share-Point Outlook EDW Enterprise

Portal

Mercury will replace the above global and Area applications plus a further 1400+ local applications


The opportunity and engagement lifecycle

Createopportunity1

Create pricingplan2 Perform

acceptance3 Updatepricing plan4

EA/SOWsignoff andcontract

5

Updateopportunitydetails

6

Charge T&E11Performengagementeconomics

12Initiate orperformbilling

13 Dunning andcollections14

Createengagement 7

Createengagementbudget

8Sendresourcerequest

9

Closeengagement15

Scheduleresources 10

WIN

Contactmanagement

Accountmanagement

Releaseengagement10a


Margin-based pricingWhat does the client server need to know?Overview

► We are moving away from Estimated Realization Percentage (ERP) and discount-basedpricing/budgeting towards a margin-based concept.

► This is a fundamental change to how we price engagements, with a new emphasis on increasingmargin.

► Instead of discounting down from Standard Engagement Revenue (SER) to Net EngagementRevenue (NER) via ERP, we will ensure that a minimum cost and expected margin is covered, towhich we will adjust for market realities.

Things to remember…

Client servers are required to have an understanding of the following key metrics to actively andeffectively engage in pricing:

1. Margin – the difference between the amount billed (ANSR) and standard direct cost2. Net Standard Revenue (NSR) – suggested minimum amount that must be recovered

► NSR is comprised of the standard direct hourly cost rate plus the average standard marginexpected for the staffed resources

► NSR is an average and not necessarily reflective of the services to be provided3. Adjusted Net Standard Revenue (ANSR) – actual amount that is billed to the client4. Engagement Adjustment Factor (EAF) – the differential between baseline NSR and ANSR


Margin-based pricingArriving at the right price to bill our clients

► The NSR is the suggested minimum amount that must be recovered.► Regions and service lines will need to provide guidance on pricing for premium service offerings and

targets for good margin.► Client-service partners should consult with leadership on pricing decisions.

NSR ANSR

Good margin guidance

Market experience andrealities

Premium service offeringprice expectation

Standarddirect hourly

cost rate

Averagehistorical

margin andstretch

Difference is EAF

Margin

ANSRStandard

directcosts


Coexistence overview


What is coexistence?

Mercury will be globally deployed in waves and will require existing systems (with some exceptions) tobe decommissioned. Countries that engage with non-deployed countries in cross-border work, may facethe challenge of using both non-Mercury and Mercury systems in the interim. This means that bothplatforms will need to be used (coexist) during the duration of a cross-border engagement and in servingthe account in general.

► Mercury systems will only be accessible andused by deployed countries.

► Mercury will still be an integrated solutionthat will better enable work.

► Non-Mercury systems may (in some cases)be used by both deployed and non-deployed countries.

► Coexistence activities will occur whencross-border accounts involve bothdeployed and non-deployed countries.

Cross-borderengagements

Non-Mercury systems

Mercury systems


What is cutover?

Cutover is the migration of business processes and data from the systems we currently use to the new Mercury system. Cutovertakes place prior to each regional or country deployment to Mercury and ,during this time, restricted access within some currentsystems will be automatically enforced.

For more information about cutover in Canada or GSA, visit your local Mercury SharePoint page

Function Legacysystem Impact for pilot users Cross border impacts

Time gT&E Display only access Canada/GSA time information gathered during blackout will not be availableExpense gT&E Display only access Canada/GSA time information gathered during blackout will not be available

Billing gBiller No create or edit access (manual invoices can becreated on an exception basis) No impact

Clientpayments/

cash receiptsGFIS

No reporting on cash collected. Received paymentsare held and deposited via lockbox and processedafter go-live

No impact

CRM InterAction No access to contacts, prospects or opportunitiesNo access to view information or pull reports

InterAction will remain as is, and will function for all non-deployed countries.Users should not enter GSA/Canada contacts into InterAction from 11December.

Riskmanagement GTAC Full access; not impacted by blackout No impact

Engagements GFIS No access to create or edit engagement codes No impactAccountspayable GFIS No access; manual process in place if payment is

requiredInteroperable transaction impact e.g. payment from GSA/Canada will notcome through during that time period.

Resourcemanagement

ARMS/Retain Full access; not impacted by blackout No impact

Create client GFIS

The last date for creating new clients in GFIS isThursday, 10 December (includes those that may berequired for new engagements to be createdbetween 11 December and 1 January.) If any newengagement is created against a new client createdafter 10 December, this engagement and relatedinventory will not be moved to Mercury. The user willhave to re-enter the engagement into Mercury.

No impact


Future of reporting: My Business portal

► Seamless data integration withMercury to provide end-userswith the same My Businessexperience.

► Minor enhancements toPortfolio, Metrics and Marketsadd Mercury concepts, but nochanges to display.

► Coexistence of a new Mercurydeployed My Engagementsand non-Mercury deployed MyEngagements.

► New analyzers, dynamicreports and executiveleadership reporting in theReport Library.

My Business portal(includes R&A COEReport Library)

Management reporting


Scenarios


43

21

Understanding coexistence: Overview ofscenarios

Coexistence opportunity and engagement management scenarios

Engagements led by deployedcountries

Engagements led by non-deployedcountries

Interoperable cross-borderengagement working with a non-deployed country. (Recommendedfor cross-border engagements withinteroperable revenues less than25k* in local currency).

Non-interoperable cross-borderopportunity where separateengagements are set up within eachparticipating country.

Interoperable cross-borderengagements with a Mercurydeployed country. (Recommendedfor cross-border engagements withinteroperable revenues less than25k* in local currency).

Cross-border opportunity whereseparate engagements will be setup within each country.

* General guideline.

This webcast will focus on scenarios 1 and 2. All four scenarios can be found on the MercuryCHS.


Understanding coexistence: Scenario 1

This scenario is based on an interoperable cross-border engagementled by a deployed country working with a non-deployed country. It isrecommended for all cross-border engagements with interoperablerevenues less than 25k* in local currency.

► In this example, John Doe, GlobalClient Service Partner (GCSP) inCanada, has an audit that requiresa cross-border inventory observationprovided by a US resource. Thereare no US partners, principals orexecutive directors involved in thisproject. Fee sharing will be basedon actuals.

* General guideline.


Scenario 1: Key process stepsC

anad

a(D

eplo

yed)

John createsopportunity inMercury.

John prices theservices to beperformedusing MercuryNSR.

Engagement iscreated inMercury.

Johncompletes thebudget andnotifies localresourceschedulers ofcross-borderresourceneeds.

Resourceschedulerassigns localresources inARMs orRetain basedon budget.Contacts USscheduler withstaffingrequest.

Canadaresourcescharge timeand expense inMercury.

John accessesBTA1 fromOneGate andperforms ETC2

for Canada andthe US.

John submitsthe invoice tothe client.Canada willconduct alldunning andcollectionsactivities inMercury.

US

(Non

-dep

loye

d)

No actionrequired by theUS sinceCanada willcreate oneopportunity forall.

No actionrequired by theUS as Canadawill price theentire project.

A mirrorengagement isautomaticallycreated inGFIS with thesameengagementID.

The US willwork withCanada toverify budgetfor the USportion of theopportunity.

The USresourceschedulerbooks the USresource inRetain/ARMSagainst theGFISengagement.

The USresourcecharges timeand expense togT&E.

No actionrequired asCanada willreview the BTAand performETC on behalfof all.

No actionrequired asbilling isprepared byCanada.No actionrequired fordunning andcollections.

Creatingopportunities

Pricingopportunities Budgeting

Engagementset-up and

maintenance

Resourcescheduling

Time andexpense

1 BTA: budget to actual2 ETC: estimate to complete

Billing anddunning and

collections

Engagementeconomics


Understanding coexistence: Scenario 2

► In this example, Jane Smith, aGCSP located in Germany, isleading an audit opportunityinvolving resources from Canada,UK and US. The opportunity is soldat €625k and fee sharing will bebased on the Global Fee Sharingtool. Canada, UK and US will eachhave an audit engagement partnerleading their portion of the work.Billing will be handled locally byeach participating country.

This scenario is based on a non-interoperable cross-borderopportunity managed by a deployed country where separateengagements are set up within each participating country.


Ger

man

yand

Can

ada

(Dep

loye

d) Jane createsopportunity inMercury forGermany andCanadaportion.

Jane priceswork in MMT3.Fee Sharing isbased on GFS4

tool or otherpartneragreements.Net amountinput as TOV5

in Mercury.

Germany andCanada willeach create anengagement inMercury.

Germany andCanada preparethe budgets fortheirengagements.

German andCanadianresources arescheduled inARMS orRetain as perthe localprocess.

German andCanadianresourcescharge timeand expensesin Mercury.

Germany andCanada accessBTA fromOneGate andperform ETCon local portionin Mercury.

Germany andCanada billlocally andhandle dunningand collectionsfor their localportion.

US

and

UK

(Non

-dep

loye

d) Opportunitiesare created inInterAction forthe UK and USreflecting theirlocal portion ofthe opportunity.

The UK andUS will pricethe localportion of workusing MMT orlocal pricingtool (standardrates).

The UK andUS will eachcreate anengagement inGFIS

The UK andUS will performbudgeting forlocal portion.

The UK andUS resourcesare scheduledin Retain/ARMS or otherlocal tool.

The UK andUS resourcescharge timeand expensesin gT&E.

The UK andUS performETC using thelocal tool andprocess.

The UK andUS bill locallyand handledunning andcollection fortheir localportion.

Scenario 2: Key process steps

3 MMT: Margin Modeling Tool 4 GFS: Global Fee Sharing 5 TOV: total opportunity valueReporting for Mercury-deployed countries is accessed via the new My Engagements tool. Reporting for non-deployed countries is

accessed via the existing My Engagements tool

Creatingopportunities

Pricingopportunities Budgeting

Engagementset-up and

maintenance

Resourcescheduling

Time andexpense

Engagementeconomics

Billing anddunning and

collections


Wrap up


In summary, what do I need to know aboutcoexistence?

► Continue to use existing tools.► Work with Canada/GSA partner to determine whether to use Mercury

interoperability or set up a local code.► If Mercury interoperability is used. revenue recognition and fee sharing are

based on NSR.

I work with Canada/GSA on a cross border opportunity/engagement

► Global metrics remain the same, My Business: Portfolio will include Accountview.

► Standard rates in Canada/GSA will be based on NSR.► You will need to work with colleagues in Canada/GSA to view detailed

opportunity and pipeline information as it will be in Mercury CRM and notInteraction.

► Cutover activities will limit account information views for a period of time.

I am a GCSP or member of an account team with significant outbound revenue toCanada/GSA:


Help and support

Deployed countries Non-deployed countries

Support Contact to Cash (C2Cs) Advisors,Account Finance Advisors (AFAs)and Super Users

Canada and GSA partner that youwork with on cross-borderengagements

Finance Markets Advisors (FMAs ),if applicable, or Executive Assistants(EAs)

Local finance support

Business Development community(Account Coordinators)

Business Development community(Accounts Coordinator)

Commsandsupportcollateral

Local communications activity Local communications activity

Webcast for impacted teams Webcast for impacted teams

Local SharePoint Mercury CHS

Mercury CHS


Next steps

Refer to the Mercury CHS for the latest coexistence materials.

Contact partners on active engagements to work through thetransition and offer support and guidance to each other.

Forward any additional questions to your Regional FinanceLead.

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2

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Any questions?

Documents

10 November 2015 - MediaPlatformmp126803.cdn.mediaplatform.com/126803/wc/mp/4000/... · • Engagement management • Finance and Procurement management Helps us understand our