Transforming Finance Globally to Fuel Pearson's Innovation, Growth and Success

PEARSON TRANSFORMATION

RAMANA AKULA

2 F1 Transforming Finance

““We must become the change we want We must become the change we want to seeto see””

Mahatma Gandhi


AGENDA

Company backgroundThe transformation projectLearning'sQ&A



We believe in learning-

all kinds of learning

for all kinds of people,

delivered in a personal style.

Because wherever learning

flourishes, so do people


Have we met before?


The shape of Pearson

Penguin

19%

FT Group

16%

Profes

siona

l 5%

International

Education 18%

North AmericanEducation

42%

Year ended 31 Dec 2009 (excludes Data Management, includes Harcourt and eCollege)

2009 revenues: £5.6bn

THE TRANSFORMATION PROJECT


F1Transforming finance globally to fuel Pearson’s innovation, growth and success


“Change is the only constant”

– Heraclitus, Greek philosopher


Create a world class global finance function to support Pearson’s future global growth and changing business needs.

We will adopt a “One Pearson” approach for finance, taking advantage of our global scale to drive efficiencies through streamlined processing, financial analysis and reporting, whilst maintaining control and improving financial support to our stakeholders.

Program Vision


Sustain

Workstreams:

Process

People & Organization

Systems & Tools

Project Management – Change Management – Quality & Risk Management – Benefits Management

OperateOperate

Optimize Optimize

ExtendExtend

DeliverDesignDiagnoseIdentify

BuildBuildDevelop detailed design

Develop detailed design

Define leading practice

Define leading practiceOperateOperate

Identify prioritizedimprovement opportunities

Identify prioritizedimprovement opportunities

Developbusiness

case

Developbusiness

case

Createimplementation

plan

Createimplementation

planImplementImplementDefine vision

and strategyDefine vision and strategy

F1 Methodology


CORE COMPOPNENTS

Technologyo Workflow systemso Self service portals

Process standardisationo Global/ Regional processeso Process Ownership

Outsourcing

Process Excellenceo Continuous improvement


Kotter’s 8-Step Change Model

Step One: Create UrgencyStep Two: Form a Powerful CoalitionStep Three: Create a Vision for ChangeStep Four: Communicate the VisionStep Five: Remove ObstaclesStep Six: Create Short-term WinsStep Seven: Build on the ChangeStep Eight: Anchor the Changes in Corporate Culture


Learning

Be aware of passive resistanceCommunicate, communicate, communicate…..

o Cultural diversity plays a big part in communication o Visuals play an important role

Actively manage the stakeholderso Seek and engage your change agentso Form a powerful coalition in governance

No project is ever the sameo History does not always repeat itself

Every one claims to be “different and unique”Are you with it?


Outsourcing - KEY DIFFERENTIATORS

Knowledge Managemento Knowledge transfero Documentation and maintenance of procedures

Process Ownershipo In or Out

PULL or PUSH modelo Demand management

Incorporate basic decision support activities

Pricing model o FTE vs ABC

Business Continuity Planning/Execution


Thank youThank you