VI-16 Successfully Integrating Acquired Firms into Deltek Vision - s3.amazonaws.com€¦ · VI-16 Successfully Integrating Acquired Firms into Deltek Vision Roza Kryzhanovska, Senior

VI-16

Successfully Integrating

Acquired Firms into Deltek Vision

Roza Kryzhanovska, Senior Consultant

Kent Bolson, VP of Financial Systems

About Hill International

With 4,500 professionals in 100 offices

worldwide, Hill provides program management,

project management, construction

management, construction claims and other

consulting services primarily to the buildings,

transportation, environmental, energy and

industrial markets.

Eighth largest construction management firm

in the United States (ENR)

About Hill International

155 Companies (Accounting Entities)

configured in Vision

55 Currencies supported

over 200 Power Users of the Vision

Accounting modules

All in a single, global financial system

– Deltek Vision

Hill’s Integration of Acquisitions

Since going public in 2007, we have integrated acquired companies into our

Vision Finance system from 14 countries (in some cases multiple companies per

country):

Australia (2)

Brazil (3)

Canada (1)

Germany (1)

Great Britain (6)

Hong Kong (2)

Malaysia (1)

Mexico (1)

Poland (1)

Singapore (1)

South Africa (3)

Spain (2)

Turkey (1)

United States (6)

We have also implemented processing

enhancements in about 10 other countries.

Our Objectives

5

The Starting Point

Project Kick-off

Process Design and Mapping

Validation and Segment Testing

Go-Live

Project Close-out

Acquisition ! ? ! ?

What would be your reaction if you heard that your company had been

acquired?

Acquisition ! ? ! ?

7

A hurricane is coming

Fear of the unknown

Fear of change

Panic

Stress

Fear of Job Loss

Devastation

Paralysis

Negative Competiveness

Adadante, F. “How to Integrate a Company You Acquire: 6 Steps" Inc., 26

Mar. 2012. Web. 15 Aug. 2016.http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html

http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html

Acquisition ! ? ! ?

8

We make it easier for people to cope with

change when we:

– Demonstrate knowledge of the system

– Have a solid plan

– Know how to identify issues

– Can provide solutions and workarounds

– Communicate clearly with staff and management

Make it easier for people to cope

with change

Efficient and successful Vision

integrationRead up on techniques

for coping with change

The Starting Point

Start Immediately

Initial Data Gathering

Project Charter and Project Plan

Integration Kick-off

©2016 Deltek, Inc. All Rights Reserved 10

Start Immediately

Rouse, T. and Frame, T. “The 10 steps to successful M&A integration"

Bain Brief, 4 Nov. 2009. Web. 15 Aug. 2016.http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx

http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx

Start Immediately

11

Three key documents:

– Initial Investigation

– Project Charter

– Project Plan

Templates

– “Easy” integration

– “Complex” integration

High-level Approach

12

Review and Data Gathering

Kick-off

Process Design, Mapping and Development

Integration Database Validation

Go-Live

Project closeout


Financial review

Integration interview

Document gathering


Vision Integration Questionnaire

Distribute immediately at the start of integration effort

Use as outline for Initial Interview

Gather Processes and Policies

Gather Data Collection Items Get high level information

from staff involved in the

acquisition process

Obtain and review information

collected during Due

Diligence


15

Initial Interview

– Identify the Vision modules that will

be used and any system

requirements unique to this

integration

– Review existing policies, procedures

and forms to ensure that any

changes to these identified early in

the integration process


16

Data Collection Items

– To streamline the process of integrating existing data with new systems

identify the type and amount of information required to be entered to

corporate systems:

• Lists and Reports

• General Document Samples

• Client Invoice Samples and Information


17

Prepare Initial Findings documentation, which will include:

– Summary of system comparison and

evaluation of various requests

– Initial evaluation, scope and issues

document

– Any requirements related to the

training and support language

Focus on anything that could

change significantly:

• Cash vs. Accrual

• Exchange Rates methodology

• Rules for Job Costing

• Statutory reporting

requirements

Project Charter and Plan

Project Charter

Project Plan

Project Charter

19

A formal Project Charter greatly increases your chances of success

Include a description of:

– Business Reason

– Expected approach

– Anticipated timeline

Choose the right executive sponsors

“What is a Project Charter?" CPD. Web. 22 Aug. 2016.http://continuingprofessionaldevelopment.org/what-is-a-project-charter/

http://continuingprofessionaldevelopment.org/what-is-a-project-charter/

Project Charter

20

What type of integration is this?

“Easy” integration

– New Office within an existing Company

– Processing will be done by existing staff

“Complex” integration

– New local staff must be training

– Entering a new country

– Statutory reporting from Vision

Project Charter

21

What type of integration is this?

“Hybrid” integration

– Corporate reporting only, with external statutory books

– Staged go-live

Project Charter

22

When is the cut-over date?

– Ideally, try to have go-live line up with reporting requirements (fiscal year-

end)

– If not possible, report out of Vision and legacy system and combine results

What happens from acquisition to go-live?

– Is there a need to record financial data from Vision prior to full go-live?

– Continue full processing in legacy system

– Record monthly Trial Balance as a Journal Entry in Vision

• Must reverse GL balances for some accounts with sub-ledgers at go-live


Project Plan

Bryant, S. “6 Tips for a Seamless Merger Integration" Business Finance,

29 Sep 2011. Web. 15 Aug. 2016.http://businessfinancemag.com/tax-amp-accounting/6-tips-seamless-merger-integration

http://businessfinancemag.com/tax-amp-accounting/6-tips-seamless-merger-integration


Project Plan

Project Kick-off

The Project Team

The Kick-off Meeting


Kick-off


Integration Project Teams1) Interdepartmental Team

– Sponsor (COO/CEO)

– Decision Makers (VP)

– Managers involved in day-to-day operations

2) Finance Systems Integration Team

– Sponsor (CFO)

– Project Manager

– Vision system expert

– Corporate and regional operations and finance

– Local operations and finance

Communication

between departments

is critical. There are

dependencies on

tasks that other

departments (IT, HR,

Marketing) need to

complete.


Finance Integration Kick-off meeting

Present evaluation, scope and issues document and

project calendar.

Review initial project plan and make assignments

Provide introductory Vision training for Integration

Team:

– to understand Vision functionality in a nutshell,

but enough to make comparisons, evaluations

or decisions


Include IT in the initial kick-off meeting

– Configure access for the Vision integration team

be made ready ahead of all-staff readiness.

– Alert IT to be ready to create a Test database and

to perform database refreshes

The Vision go-live

often depends on

IT’s readiness!

Process Design, Mapping and Custom Development

Document processes before, after and changes required

Assign Job Responsibilities

Perform custom development


Kick-off


Document Processes

Current ProcessProcess after

Vision integration

Description of changes Detail of any

required Vision

configuration

Document Processes

31

Question every process that doesn’t match

Vision and your corporate process

Prioritize:

– Not all processes, systems and modules

have to be implemented at the same time

– Integrate the most critical modules first

(typically Finance)

– If integration is needed with other

modules, determine temporary

solutions/workarounds

Question everything:

• Is it a good process?

• Is it needed?

• Is it done because that’s

how it’s been done for

the last 20 years?

Document Processes

Timesheet Process

• Timesheet Frequency

• Holiday calendar

• Annual Leave days rules

• Timesheet entry/submission/review/approval

• Timesheet categories

Employee Maintenance

• Source of employee data

• Hire/Rehire/Termination Process

• Processes for changes

Benefit Accrual Process

• Benefit entitlements

• Benefit Accruals

• Benefits reporting

• Monthly accrual entry

• Benefit Adjustments

• Identify Benefit Accrual Codes

Document Processes

AP Processes

• Vendor Setup

• Voucher Entry/Modification

• Payment Processing

• Wire Transfers

• Stop Payment/Void

• EFT submissions to bank

• Voucher Modifications policies

• Define AP Liability Codes and Vendor Types

Employee Expenses

• Define Employee Expense Categories

• Employee entry/submission/review/approval

• Payment Processing

• Expense Advances

• Employee Repayments

Document Processes

Project Numbering

• Design Project numbering and mapping from current system

• Define project auto numbering

Project Maintenance

• Define processes for project setup (using CRM/Opportunity information)

• Project Closeout

Overhead Projects

• Identify Overhead, Promotional and Benefit projects

Document Processes

Overhead Allocation

• Determine overhead rate and methodologies for internal allocation

Project Reporting

• Review reports used by management

• Identify favorite reports and saved searches

• Determine cost/billing values presentation on reports

Project Budgeting

• Project Budget Process

• Project Planning

Document Processes

AR Process

• Determine AR Mapping requirements

• Receivables monitoring and Collections

Invoicing Process

• Billing Terms setup

• Design Invoicing procedures

• Gather rates for default Labor Rate table and Default Billing Terms

• Identify any custom development required for Invoice Template reports

Cash Applications Process

• Define Numbering of Cash Receipts

Document Processes

Accounting/Closing

• Revenue Generation

• Intercompany Billing

• General Ledger Budgeting

• Labor Cross-charge

• Overhead Allocation

• Bank Reconciliation

• Gains/Losses and Revaluations

• Sub-ledger reconciliations

• Financial reporting

Tax

• Required tax codes and configuration

• Regulatory and Tax filings

• Tax Analysis and Sales List reports

• Determine tax GL accounts and presentation on financial reports

Document Processes

Treasury Process

• Identify Bank Accounts / Bank Codes:

• Bank Accounts

• Petty Cash

• Credit/revolving accounts

• Recording of Interest Income/Expense

• Corporate Credit Cards

Payroll Process

• Interaction with outside payroll services

• Define Payroll Frequency

• Salary update process

• Adjust Salaried Job Costing

• Entry of payroll

• Reporting to outside payroll service

• Bonus accounting

Core Configuration

• Identify required currencies

• Define companies and/or organizations

• Develop chart of accounts and any required Account Group table(s)

• Create processing checklist documenting current monthly processes

Processing Checklist

Identify staffing to perform Vision functions and prepare processing checklist

Job Responsibilities might be different than prior to acquisition

Training

Needs

Vision

Security

Roles


Configure test system and develop known solutions

Perform all data transfers and segment testing


Kick-off



Configure Test System

43

Deploy a copy of your current Vision system

Implement all configuration that you have identified

during process design

Import all or a sample of data to be brought into

Vision

Setup enough Projects and Billing Terms

to perform training and testing

Prepare reports and Invoice Templates

Import Templates

Import Template

Definitions tab

Data tab

Info Center Data Import

Data to be imported into Vision Info Centers:

• Clients, Client Contacts

• Employees

• Projects and Billing Terms

• Vendors and Vendor Contacts

Extractdata from existing systems

Prepare Import

files using Data

Import Templates

Validate imports of

data

End-User review and acceptance

Finalize templates

with validated

data

• Import only Active records

and records with

outstanding balances (AR,

AP, Expenses)

• Use the Data Import utility

AR Data Import

Project Invoice and Receipt history (Aged AR)

– Project Invoices

– Project Receipts

Reconciliations:

– Vision Aged AR report total to GL balance in legacy system and Vision and

to Subledger in legacy system

– Vision AR Ledger report for JTD billed/received to legacy system

Training for Segment Testing

Perform training for Integration Team participating in Segment Testing

Training is ongoing throughout the integration

– Initial integration team training

– Segment testing training

– Go-live training

– Refresher training

Segment Testing

Standard processes and reports

Custom developed applications and

interfaces

Solutions for identified issues

Segment testing is the process of testing each major application area of Vision Accounting by entering, processing and reporting on discreet populations of data.

Document Final Configuration

49

Companies and Organizations

System configuration:

– User Defined Components

– Code Tables (such as States/Provinces)

– Auto-Numbering

– Currencies

– Revenue Methods

Overhead Projects

Process Design and

Mapping findings

End User feedback from

Segment Testing

Document all configuration setup to be carried over

to Production

Communications

Prepare communications to employees

Establish a training plan

– Time & Expense

– Project Managers

Prepare any documentation for IT, HR and

Support

Communication will

drive first

impressions

Acceptance documentation

Required for publicly traded companies, but useful for everyone!

Acceptance of Training

System Acceptance

Data Transfers

Go-Live Date

Security Roles

Go-Live


Kick-off



Go-Live

Configure Production System

Perform all configuration done in test database in Production database

Process Design and

Mapping findings

End User feedback from

Segment Testing

Document all configuration setup to be carried over

to Production

Configure Production

System

Configure Production System

Execute Go-Live Task List

– Configuration

– Communication

– Create Security Roles, add Users, assign

Users to Security Roles

– Import Info Center data as validated during Segment Testing

Include dependencies on action of other departments

Distribute Reference Lists

For super users, Principals and Project Managers,

and for all staff

Chart of Accounts

Client, Project

Vendor

Employees

Projects by Organization

Projects by Principal and Project Manager

Begin Time and Expense Collection

After configuration and imports, the system is ready

for:

– Entry of Timesheets and Expense Reports

– Manual maintenance of Info Center records

– Financial processing for new transactions

Establish Sub-Ledgers

Project Billed and Received History Loading (AR

sub-ledger)

Unpaid AP and Employee Expense Reports

Project WIP

Employee Benefit Accruals

Project History

Establish General Ledger

Enter opening Trial Balance as a Journal Entry

Enter Cash Receipt transactions to record bank opening balances

Reverse duplicate GL Balances

Reconcile all Sub-Ledgers to the General Ledger

Note: Sub-ledger Data Imports and History Loading do not create GL entries, only Sub-Ledgers

Support

59

Initial support, during the first 2 weeks

– Time & Expense

– Data Entry

During the first month close

– Finance processing and closing

After the first close

– Employee and Project Labor reports

Within two months

– Project Managers

• Be on site when possible

• Admin person for

Time & Expense

• A controller or finance

manager for the first

close

Project Closeout

Book-end to Project Charter


Kick-off



Go-Live

Project closeout


Lessons Learned

Rouse, T. and Frame, T. “The 10 steps to successful M&A integration"

Bain Brief, 4 Nov. 2009. Web. 15 Aug. 2016.http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx

http://www.bain.com/publications/articles/10-steps-to-successful-ma-integration.aspx

Project Close-out

62

Prepare Project Closeout Document

– Accomplishments (as compared to Charter)

– Cost Analysis

– Lessons Learned

Final Thoughts


Final Thoughts

64

Communicate EARLY and communicate FREQUENTLY

Have a plan

Retain temporary help as needed

Set initial realistic timelines

Be ready to “sell” Vision to every level employee

Assure that adequate training is provided

Make sure IT is ready

Final Thoughts

65

Do not bring over all historical transaction and Info Center data

Perform segment testing not parallel processing

Reconcile any legacy system before data extraction

Use a test system

Minimize custom development

If you have a feeling that one of your staff might quit soon, do not make them a

key integration team member

Final Thoughts

66

You are working with people who are going through a lot of changes and

challenges.

Do not come off like…

Perseverance

67

Adadante, F. “How to Integrate a Company You Acquire: 6 Steps" Inc., 26

Mar. 2012. Web. 15 Aug. 2016.http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html

http://www.inc.com/frank-addante/how-to-integrate-a-company-you-acquire.html


Need Help?

Deltek Global Consulting provides a broad range of services to clients.

– Vision Core Optimization Workshop

– Vision CRM Optimization Workshop

– Ad Hoc Data Consulting Support

– Ad Hoc Core Consulting Support for New Features and Functionality

Visit at the Deltek Global Consulting Booth in the Expo Hall– Aspen Autrey Perantoni, Solution Sales Executive, 813.394.7861

[email protected] or Contact your Account Manager

Please submit a survey for this session via the

mobile app.

70

Learn More

Get plugged in

• Join a user group (regional, virtual)

• Interact in Kona – Client Advisory Council

(CAC) and more! ([email protected])

• Join the MVP program

Visit the Vision kiosks in the Expo Hall

Follow the Vision Blog @ http://bit.ly/Vision_Blog

Attend a live VPM, CRM, Resource Planning,

demo or sign up for an upcoming webinar at

Deltek.com

mailto:[email protected]

http://bit.ly/Vision_Blog

Documents

VI-16 Successfully Integrating Acquired Firms into Deltek Vision - s3.amazonaws.com€¦ · VI-16 Successfully Integrating Acquired Firms into Deltek Vision Roza Kryzhanovska, Senior