Download - ELFA Presentation - Operational Landmines
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Operational Landmines: What’s Hot in Today’s Operating Environment & the Accounting Changes
September 9, 20134:00 – 5:15 pm
Jeff Darlington, SVP & CFO AIG Commercial Asset FinanceShawn Halladay, Managing Director, The Alta GroupDeborah Reuben, Product Manager, LinedataCapitalStreamScott Thacker, CEO Ivory Consulting
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Introductions
• Panelists– Jeff Darlington– Shawn Halladay– Deborah Reuben– Scott Thacker
• Today’s Format– Overview of Operational Landmines by the panelists– Audience breakout into four groups; each group moderated by one of
panelists– Select one of the two Operational Landmines moderated by the panelist– Brainstorm and discuss what it means to your organizations– Four group presentations
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Schedule
Start End
Introduction of Panelists 4:00 4:05
Overview of Session Format 4:05 4:10
Eight Operational Landmines & Accounting Changes(2+ min each)
4:10 4:30
Breakout Groups (choose one of two moderated topics) 4:30 4:55
Four Group Presentations(5 min each)
4:55 5:15
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Operational Landmines
• We selected eight categories1. Regulatory2. Credit3. HR4. Asset Management5. IT6. Legacy Mindset7. Pricing8. Accounting Rule Changes
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Regulatory
• State Taxation– Nexus issues– Defunct cities and states looking for revenue– New fees, taxes and assessments
• Many new and ever-more complex regulations– Difficult to understand all of them and how they inter-relate– Compliance awareness– Staffing
Jeff is moderator
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Credit
• Securing your position– Know your customer rules– Lien perfection
Jeff is moderator
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Human Resources
• Succession Planning– Retention– Cross-training– Retention & Recovery– EEOC re: layoff’s– Economy is bouncing around: hire/layoff cycle
Shawn is moderator
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Asset Management
• Residual/End of Term– Setting residual in rapidly moving technology market– Recovering the assets
• Asset movement by lessee– Risk of loss– Different tax issues in different jurisdictions
Shawn is moderator
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IT
• Excel Worksheets– Work-arounds– SOX compliance
• Report Overload– What is really needed– Paper vs. electronic
• Inventory Tracking– Know what you have– Re-lease or sale at End of Term
Deb is moderator
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Legacy Mindset
• Very quickly moving economy, technology, business practices, and customer expectations– Unwillingness to change– Inertia– Solving wrong problem entirely
• Innovation barriers– Lack of funding even with positive business case– Unable to measure benefits
• Growth– Top line vs. cost cutting
Deb is moderator
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Pricing
• Legacy mindset– Pricing to spread over COF rather than risk based pricing
• Application of elasticity concepts– What will the lessee market bear
• Excel spreadsheets are error prone– Formula changes– Putting in wrong numbers
• Education around more complex pricing concepts
Scott is moderator
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Accounting
• Many hidden costs– IT Modifications– Professional Fees– Temporary Help– Technical Accounting Education– Processes & Controls– Reporting– Staff Training– Financial Products
Scott is moderator
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Breakouts
• Audience divides into four groups• One panelist per group• Select one of the two topics moderated by that
panelist• Each group reports to the full audience
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Conclusion
• Final comments and feedback