View
220
Download
1
Category
Tags:
Preview:
Citation preview
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 ?
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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.
August 26, 2004 Osler, Hoskin & Harcourt LLP
Different Types of BudgetsDifferent Types of Budgets
RevenueRevenue Number of HoursNumber of Hours Hourly RatesHourly Rates People (FTE)People (FTE)
August 26, 2004 Osler, Hoskin & Harcourt LLP
Different Types of BudgetsDifferent Types of Budgets
ExpensesExpenses FlexibilityFlexibility Various Allocation MethodsVarious Allocation Methods CommentsComments AttachmentsAttachments Data ProtectionData Protection
August 26, 2004 Osler, Hoskin & Harcourt LLP
Different Types of BudgetsDifferent Types of Budgets
AssetsAssets Computers, Software, Furniture, etc.Computers, Software, Furniture, etc. Various Categories for AssetsVarious Categories for Assets Calculation of DepreciationCalculation of Depreciation FlexibilityFlexibility
August 26, 2004 Osler, Hoskin & Harcourt LLP
Different Types of BudgetsDifferent Types of Budgets
Other ItemsOther Items Accounts Receivable BalancesAccounts Receivable Balances WIP BalancesWIP Balances Prepaid ExpensesPrepaid Expenses LiabilitiesLiabilities Bank LoansBank Loans
August 26, 2004 Osler, Hoskin & Harcourt LLP
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?
August 26, 2004 Osler, Hoskin & Harcourt LLP
Possible ConflictsPossible Conflicts
FinanceFinance ITIT
PeoplePeople PeoplePeople
August 26, 2004 Osler, Hoskin & Harcourt LLP
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)
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
Our DecisionOur Decision
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
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
August 26, 2004 Osler, Hoskin & Harcourt LLP
What’s MissingWhat’s Missing
Depreciation CalculationsDepreciation Calculations
Quarterly ForecastsQuarterly Forecasts
Use the Software as Reporting ToolUse the Software as Reporting Tool
WorkflowWorkflow
August 26, 2004 Osler, Hoskin & Harcourt LLP
So – Was It Worth It ?So – Was It Worth It ?
After 1After 1stst Year Year
August 26, 2004 Osler, Hoskin & Harcourt LLP
After 2After 2ndnd Year Year
MAYBEMAYBE After 3After 3rdrd Year Year
Contact InformationContact Information
Jarmila PencikovaJarmila PencikovaManager, AccountingManager, Accounting
jpencikova@osler.comjpencikova@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 ?
Recommended