Today’s Webcast Presentation 5 steps to achieving ...resource.prophix.com › ... › prophix-fei-webcast-integrated-financial-planning.pdfplanning processes • Learn the 5 steps

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 …





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





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.

mailto:[email protected]





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





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





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%





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



5 Steps to achieving Integrated Financial Planning for

your company

Nicole Diceman

Product Marketing Manager

Prophix Software Inc.


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…



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)



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…



Integrated Financial Planning What is it?

A complete model…

where the company

links strategic, operational and

financial planning

Combination of

technology and

processes



Example of IFP - Plan Data Flow

Production

Model

Personnel

Model

Sales

Model

Financial

Model

Financial

Model



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



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.



Why It Matters – Integrated Financial Planning

Better

Communication

Better

Decision Making

Meeting

Company

Objectives

Competitive

Advantage

Empowered

Employees



Polling Question (1 OF 3)



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?



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

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=qVUmG28EJ1bGHM&tbnid=lsbpbycTH29G1M:&ved=0CAUQjRw&url=http://www.zec.ca/&ei=BhaSU7KsGZeryAT8o4KICw&bvm=bv.68445247,d.aWw&psig=AFQjCNEvpd4ey_1ISPybhInTZSCFrrVkeA&ust=1402169214304180

• 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/

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=p03X_axP_GAhnM&tbnid=xpB3dfuYewAwfM:&ved=0CAUQjRw&url=http://www.alpinepainting.com/news/steve_scaturro_elected_to_board_of_directors_for_associated_builders_contra&ei=fReSU7mQIdakyAShrYKwAw&bvm=bv.68445247,d.aWw&psig=AFQjCNHYfwirrZV1M4ywrMiSS3XNTFSdjA&ust=1402169584757244

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

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.knowmyteam.com/blog/use-your-first-100-days-as-a-manager-wisely/&ei=wqLwVMaqDKawsAS9xoLQCA&bvm=bv.87269000,d.cWc&psig=AFQjCNH4cU9e2VvkL-3fH3yTr_E0YgURdQ&ust=1425142731991695

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

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://evarykr.com/2011/05/research-on-knowledge-management-strategy/&ei=YJHwVOfGAdHjsATpwoDIBw&bvm=bv.87269000,d.cWc&psig=AFQjCNFrrg-JUySUwigxpn821NUcHbYP3A&ust=1425138387203075

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.





Poll Question (3 of 3)





Q&A Nicole Diceman, MBA Product Marketing Manager, Prophix Software

Stephanie Baccam, CPA Accounting Supervisor, Interstates Companies

http://www.prophix.com/



Looking for financial insights through unbiased research?

FERF can help!

Celebrating its 70th anniversary last year, Financial Executives Research

Foundation (FERF) is the research affiliate of FEI. As part of its mission, FERF

provides knowledge and insight to members and

the broader financial community.

All publications are free to members and

are available in a downloadable PDF format.



Published quarterly, Financial Executive, the

award-winning flagship magazine of FEI, provides both the U.S. and global points of view and highlights best practices, developments and individuals from the international business scene.

FEI Daily delivers financial, business, and management news, and trends and strategies

to help you work better, faster, and smarter. Our team of expert contributors offer analysis, tips, and insights into best practices and the changing regulatory landscape.

IOU – Insights, Observations and Updates is a quarterly e-newsletter

offering members’ insight, observations and updates from K Street to Wall Street.

PUBLICATIONS & E-COMMUNICATIONS





Thank you for your participation

Sponsored by:

Documents

Today’s Webcast Presentation 5 steps to achieving ...resource.prophix.com › ... › prophix-fei-webcast-integrated-financial-planning.pdfplanning processes • Learn the 5 steps