program mercury design overview sessions day 2 january 2014

Program Mercury

Design Overview SessionsDay 2

January 2014

Overview Sessions - Agenda Day 2

Topic Discussion Points Lead Time

Welcome • Agenda Overview Jamila Thompson 9:00 - 9:15

Day In The Life and Key Design Elements

• Create Engagement Budget (Step 8)Intro : Global Fee Sharing

Ulf Ruschmeier / Karen Jackson

9:15 - 11:15• Review Metrics and Approve Budget (Step 9) Karen Jackson

• Create Engagement (Step 10)Intro : Engagement Structures

Kerri Brown / Goutham Goudgere

Break 11:15 - 11:30

• Schedule Resources (Step 11, 12)Abi Churcher (GSA) / Lee

Johnson (Canada)11:30 - 1:00

• Charge Time & Expense (Step 13)Paul Van Oort (GSA) / Irina

Craine (CAN)

Lunch 1:00 - 1:30

• Manage Engagement Economics (Step 14)Intro : GTH + TER & TNR + GFS + ETC + EAF + Internal Advice + Approval

Karen Jackson / Ulf Ruschmeier / Christina Fok

1:30 - 4:00

Day 2 Close Jamila Thompson 4:00 - 4:15

Global Fee Sharing

Opportunity Plan

• Opportunity is contracted – pricing plan end up with following parameters:• 12,000 NSR• 1,000 Expense• 10,000 contracted billing amount (Fee & Expense)

Opportunity Header Virtual Hierarchy TableOpportunity # Opportunity

FeeOpportunity

ExpOpportuntity

BillingSharing by Plan

Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER

Opportunity Currency

Pproject Plan EAF%

Opportunity Status

O000001 12.000 1.000 10.000 Plan 12.000 1.000 10.000 USD USD 75,00% Releasedvia MMT or manual input

Engagement Setup

• Start of the enagement setup in different countries US / AT / UK – No detail plan necessary at this time.

• All engagements will start for the plan with the same EAF% from the Opportunity.• Sharing group will be „opportunity #“ for actual sharing / „country“ for plan sharing.


FeeOpportunity

ExpOpportuntity


Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Pproject Plan EAF%

Opportunity Status

O000001 12.000 1.000 10.000 Plan 12.000 1.000 10.000 USD USD 75,00% Released

Sharing Level Virtual Hierarchy Table

Opportunity # Engagement # Engagement # Plan EAF%

Plan Production

Fee

Plan Production

Exp

Plan Production

Fees

Discretionary Fees

Plan Production

Fees after Descr.

Plan Production

Exp

Sharing Group

LocCurr LocCurr LocCurr USD USD USD USD

O000001 O000001.E0001 75,00% 0 0 USD 0 0 0 0 O000001.S0001

O000001 O000001.E0002 75,00% 0 0 USD 0 0 0 0 O000001.S0001

O000001 O000001.E0003 75,00% 0 0 EUR 0 0 0 0 O000001.S0002

O000001 O000001.E0004 75,00% 0 0 GBP 0 0 0 0 O000001.S0003

Total Opportunity 0 0 0 0

Engagement parameter Gross Plan Gross PlanEngagement Discretionary

Fee Sharing Attributes

Fee Sharing AttributesEngagement # Opportunity

#Area Region Country Service

CodeService Line Sub Service

LinePartner Legal Entity Engagement

#Sharing Line

Item #

O000001.E0001 US O000001.S0001

O000001.E0002 US O000001.S0001

O000001.E0003 AT O000001.S0002

O000001.E0004 UK O000001.S0003

Fee Sharing Plan without UK


FeeOpportunity

ExpOpportuntity


Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Pproject Plan EAF%

Opportunity Status




Plan Production

Fee

Plan Production

Exp

Plan Production

Fees

Discretionary Fees

Plan Production

Fees after Descr.

Plan Production

Exp

Sharing Group


O000001 O000001.E0001 75,00% 4.000 400 USD 4.000 0 4.000 400 O000001.S0001

O000001 O000001.E0002 75,00% 2.000 100 USD 2.000 0 2.000 100 O000001.S0001

O000001 O000001.E0003 75,00% 800 150 EUR 1.088 0 1.088 204 O000001.S0002

O000001 O000001.E0004 75,00% 0 0 GBP 0 0 0 0 O000001.S0003

Total Opportunity 7.088 0 7.088 704

Engagement parameter Gross Plan Gross Plan

via MMT or manual input

Engagement Discretionary

• Start of the detailed engagement plan in the US and Austria via MMT.• MMT NSR and Expenses per engagement will be used for sharing purposes in SAP.

Final Engagement Plan


FeeOpportunity

ExpOpportuntity


Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Pproject Plan EAF%

Opportunity Status




Plan Production

Fee

Plan Production

Exp

Plan Production

Fees

Discretionary Fees

Plan Production

Fees after Descr.

Plan Production

Exp

Sharing Group


O000001 O000001.E0001 74,51% 4.000 400 USD 4.000 0 4.000 400 O000001.S0001

O000001 O000001.E0002 74,51% 2.000 100 USD 2.000 0 2.000 100 O000001.S0001

O000001 O000001.E0003 74,51% 800 150 EUR 1.088 0 1.088 204 O000001.S0002

O000001 O000001.E0004 74,51% 3.300 200 GBP 4.983 0 4.983 302 O000001.S0003

Total Opportunity 12.071 0 12.071 1.006

Sharing Line Item Max Fee TableSharing Line Item

#Opportunity # Plan

Production Fee Sharing

Project Plan EAF

Max Fee

Max Fee

Discr.

Max Fee after

Discr.

Max Exp

Max TER

Plan Billing

USD USD USD USD USD USD USDO000001.S0001 O000001 6.000 74,51% 4.471 0 4.471 500 4.971 -O000001.S0002 O000001 1.088 74,51% 811 0 811 204 1.015 -O000001.S0003 O000001 4.983 74,51% 3.713 0 3.713 302 4.015 -Total Sharing 12.071 74,51% 8.994 0 8.994 1.006 10.000 10.000

Engagement parameter Gross Plan Gross Plan

via MMT or manual input

Engagement Discretionary

Create Fee Sharing Plan 1

Update EAF based on Engagement Plans

2


2

Discretionary on Engagement Level Advised by Opportunity Partner


FeeOpportunity

ExpOpportuntity


Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Pproject Plan EAF%

Opportunity Status

O000001 12.000 1.000 10.000 Plan 12.071 1.006 10.000 USD USD 74,51%



Plan Production

Fee

Plan Production

Exp

Plan Production

Fees

Discretionary Fees

Plan Production

Fees after Descr.

Plan Production

Exp

Sharing Group


O000001 O000001.E0001 74,51% 4.000 400 USD 4.000 -100 3.900 400 O000001.S0001

O000001 O000001.E0002 74,51% 2.000 100 USD 2.000 0 2.000 100 O000001.S0001

O000001 O000001.E0003 74,51% 800 150 EUR 1.088 300 1.388 204 O000001.S0002

O000001 O000001.E0004 74,51% 3.300 200 GBP 4.983 -200 4.783 302 O000001.S0003



#Opportunity # Plan


Project Plan EAF

Max Fee

Max Fee

Discr.

Max Fee after

Discr.

Max Exp

Max TER

Plan Billing

USD USD USD USD USD USD USDO000001.S0001 O000001 5.900 74,51% 4.396 0 4.396 500 4.896 -O000001.S0002 O000001 1.388 74,51% 1.034 0 1.034 204 1.238 -O000001.S0003 O000001 4.783 74,51% 3.564 0 3.564 302 3.866 -Total Sharing 12.071 74,51% 8.994 0 8.994 1.006 10.000 10.000


Engagement discretionary

1

Plan Update Based on Actual Billing over Plan Billing


FeeOpportunity

ExpOpportuntity


Production Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Pproject Plan EAF%

Opportunity Status




Plan Production

Fee

Plan Production

Exp

Plan Production

Fees

Discretionary Fees

Plan Production

Fees after Descr.

Plan Production

Exp

Sharing Group


O000001 O000001.E0001 76,60% 4.000 400 USD 4.000 -100 3.900 400 O000001.S0001

O000001 O000001.E0002 76,60% 2.000 100 USD 2.000 0 2.000 100 O000001.S0001

O000001 O000001.E0003 76,60% 800 150 EUR 1.088 300 1.388 204 O000001.S0002

O000001 O000001.E0004 76,60% 3.300 200 GBP 4.983 -200 4.783 302 O000001.S0003



#Opportunity # Plan


Project Plan EAF

Max Fee

Max Fee

Discr.

Max Fee after

Discr.

Max Exp

Max TER

Plan Billing

USD USD USD USD USD USD USDO000001.S0001 O000001 5.900 76,60% 4.519 0 4.519 500 5.019 -O000001.S0002 O000001 1.388 76,60% 1.063 0 1.063 204 1.267 -O000001.S0003 O000001 4.783 76,60% 3.664 0 3.664 302 3.966 -Total Sharing 12.071 76,60% 9.246 0 9.246 1.006 10.252 10.252


Update EAF based on total billing amount

1


1

Redistribution of Sharing Plan to sharing lines

2

Review Metrics and Approve Budget

MetricsO

bje

cti

ve

► To provide designated users a personal dashboard which contains the quantitative performance KPIs as defined in Vision 2020

► To provide links and drill-downs to more detailed reporting components which contain underlying information

► Metrics will be used by all PPEDs with Account, Engagement, Opportunity and/or organizational responsibilities

Scope

► Present metrics aligned with Vision 2020:► TER► Margin► Sales & Pipeline

► Provide breakdown and details of metrics to allow a high level analysis

► Direct link to other reporting components for further drill-down analysis

► Provide PPEDs with multiple roles ability to examine relevant KPIs based on relevant role.

Project benefits

► Enable users to view on their opening screen their progression towards their goals for key measures

► Globally consistent definition and delivery of new key measures to all stakeholders

► Important next step to further drive standardization and improve account reporting

Au

die

nce

Metrics — Sample Dashboard for Business Unit Leader

Option 1: Metrics Details to analyze top 3 accounts for all listed Metrics.

Option 2: Global TER breakdown to analyze up to 40 accounts for one specific Metric.

Option 3: Global TER Analysis icon to reconcile Global TER to Business Unit TNR.

Conceptual wireframe - based on sample data, sums, ratios, etc. are not intended to be correct

Create Engagements and Engagement Structures

Design Features

► One GFIS engagement will convert to one Mercury engagement

► Automatic creation of one “general” activity code for each engagement

► Functionality to automate creation of pre-defined activity codes based on a combination of engagement attributes (e.g., SL – SSL - Service Code – Country)

► Ability to add user defined activities as needed

Continuity of Design

New Functionalit

y

► Creation of all external engagements will be initiated through CRM

► Multiple engagements can be created from a single opportunity and linked by the Opportunity ID

► Engagements will be Interoperable unless restricted based upon legal requirements

► Engagements will be linked to two service codes: external and internal

► External service code will be used for GTAC purposes and represent services sold to client

► Internal service code will represent work effort and drive revenue recognition

Design Features

Pre Population

► Data collected for the Opportunity will be pre-populated during creation of the engagement

► Ability to revise some pre-populated information based on engagement specifics

Engagement Statuses

► Engagement statuses will be revised and expanded:► Created – allows soft tagging of resources based on probability

of win► Released – allows T&E charges, GL charges, billings► Completed Pre-Closing – blocks all transactions (T&E, GL and

Billing)► Completed – no transactions allowed► Cancelled – only engagements in created status can be

cancelled► Ability to create Time only or Expense only codes

Design Features

► Each engagement must have its own budget

► Ability to aggregate individual budgets through use of Budgeting Eng ID

Budgeting

Billing

► Consolidated invoicing through use of Billing Eng ID

► Ability to bill across legal entities, countries, regions

► Eliminates double counting of revenue from inter-firm invoices

Reporting

► Custom project reporting through use of user defined fields

► Project teams can easily define and revise reporting rollups as required

► Working with Reporting team to incorporate requirements with future enhancements to the My Portfolio / My Engagements standard reports

User Defined Fields

► Flexibility to customize roll ups through use of attributes for ► Budgeting► Reporting► Billing

► Ability to revise rollups as needed throughout life of project

Integrated Process

• PI Finance Customer Transformation Opportunity in Germany

Opportunity

• Eng A - Germany• Eng B - Austria

Engagements

• Billing Roles, Terms and Bill to Customer

• Billing Group for Consolidated Invoicing

Billing

Engagement Data Pre-Population

Opportunity

Client Name Client ID **Opportunity ID **Opportunity Partner Legal Entity **(E)Country ** Region ** Engagement Type **External Service CodeInternal Service CodeGTAC Folder ID ** Fee Sharing Method: Plan or Actual Initial Production Fees Initial Production Expenses Sold At Price (Total Billing)Initial EAF **

From Engagement

Engagement NameEngagement ID **Primary Work Location Profit Center **Market Segment **SOW StatusFee Sharing Level **Eng Production Fees **Eng Production Expenses **Engagement EAF **Engagement Margin **Engagement RolesBudget GroupReporting GroupResource Demand **Engagement Status **(E)

Billing

Bill To Customer **(E)Billing ManagerBilling PlanCurrencyPayment Terms **(E)Bank Remit To **(E)Billing Group

** Info Pre-populated **(E) Pre-populated and Editable

Engagement Structure

Current GFIS - Individual engagements linked only by Client ID

GFIS Client

Benefit Plan AuditCorporate

ComplianceFY14 Audit

ITRA

Quarterly Reviews

Special Project

Tax Provision

Mercury Client

Opportunity Line Item 1

Benefit Plan Audit

FY14 Audit

ITRA

Quarterly Review

Tax Provision

Special Project

Corporate Compliance

Opportunity A

Opportunity B

Opportunity C

Mercury - Individual engagements linked by Opportunity ID



Budget Roll Ups

ASU Budget RollupBudget Eng ID: E-

AA00002

Opportunity Line Item - Germany

Benefit Plan Audit E-AA00001

FY 14 Audit E-AA00002

ITRA E-AA00003

Quarterly Review E-AA00004

Tax Provision E-AA00005

CRM Opportunity ← Automatic Budget Roll Up Based on Opportunity ID

← Automatic Budget Roll Up Based on Opportunity Line Item

Consolidated Billing

Opportunity Line Item - Germany

Benefit Plan Audit E-AA00001

FY 14 Audit E-AA00002

ITRA E-AA00003

Quarterly Review E-AA00004

Tax Provision E-AA00005

CRM Opportunity

Consolidated InvoiceBilling Eng ID: E-

AA00002

► Engagements that should be billed together in a consolidated invoice are linked through the Billing Eng ID field

► Individuals with billing roles on the billing engagement will see inventory detail for all engagements sharing same Billing Eng ID

► Billing Eng ID provides ability to bill across legal entities, countries and regions for centralized billing

► Eliminates need for inter-firm invoices and eliminates double counted revenue

Customized Reporting Groups

UBS AG Audit - Reporting Roll Up

Corporate Centre Investment Banking

CH CH

ADV ASU TAX

US UK

ADV ASU TAXASU

Wealth Management

CH

ADV ASU ASU

UK

ASU

► Four user defined fields can be utilized to customize reporting attributes as needed to provide more flexibility for multi-level reporting

► Fields must be pre-defined per Opportunity► Objective of the reporting group feature is to identify engagement grouping

information not captured elsewhere (e.g., client’s business division, geographic clusters, sectors, etc.)

► During engagement creation user will select from drop down list of pre-defined reporting attributes and assign the appropriate attribute to the engagement

► Reporting attributes can be revised throughout the life of the global project

Schedule Resources

Spotlight on Resource Scheduling

► Multi-Resource Scheduling (MRS) integration and scope► Integration between the different processes in Mercury enables the flow of

relevant information to MRS to aide in identifying appropriate resources► Process of creating resource demands takes place outside MRS at a point

in the opportunity or engagement lifecycle as appropriate ► MRS is used to create resource assignments, once a demand has been

sent to the tool from PPM► MRS time allocations will be used to manage availability when resources

are carrying out activities like training or business development► Resource Schedulers will be able to create demands in PPM and create

time allocations in MRS

Resource Scheduling – Integration and Scope

Resourcing Scheduling — Design Principles Met

► One global process to the demand and supply of staffing across the firm for both client facing and CBS staff

► Single system and process globally for resource assignment

► Global view of resource availability► Single system to request and modify

resource assignment► Enables global resource management

► Direct management of resource during maintenance of engagement economics

► Direct access to resource schedule where appropriate

► Reduced administration associated with resource request process (Resource Scheduler)

► Integration between engagement set up, staffing and reporting process

► Integration with other global tools ► Enables consistency of resourcing data

► Reporting benefits from improved data quality

► Improves efficiency and eliminates duplicate entry of information

► Ability for resource planners to model using soft tagging

► Client servers requesting from opportunity stage

► Cross border resource searches

EnhancedGlobalized

HarmonizedStreamlined

Creating a Demand - Design Features

Creation of Demand

► Integration with MMT will allow Client Servers to enter their resourcing requirements when pricing or creating an engagement budget

► Requests when pricing will support resourcing of opportunities

► Resourcing information entered in MMT can be high level (e.g. resource rank) or low level (e.g. a specific named individual or a skill set)

► This information will automatically populate the relevant fields in PPM preventing re-keying, and creating the demand, which is passed to MRS

► There will be no approval workflow included in this process

*Creating a demand takes place outside MRS*

Creating an Assignment - Design Features

Suitable Resource Search

► Integration with GHRS, My Competencies and My Development Site

► Where data is present in these global tools it will be passed to MRS to support in finding a suitable resource

► Possible to view resources globally (where there are no statutory requirements preventing this)

► Cross border resources identified need to be confirmed / assigned with the local resource scheduler

Requesting Named

Resources

► Client Servers can specify a named individual to work on their engagement

► Named requests will be soft assigned on the MRS planning board

► Resources Schedulers will be able to decide if that resource is appropriate in the context of the other demands they are managing

► Training will need to educate that naming a resource does not mean they will definitely be assigned

Assignment Status

► Soft assignments – used to support modelling of resources on the planning board

► Hard assignment – used to confirm who will be working on the engagement

Maintaining an Assignment - Design Features

Integration with ETC

► Possible to use assigned hours in MRS to create as a starting point to create an ETC

► Possible to pass any changes that relate to resource onto MRS as part of the ETC process

► Modifications will be highlighted to Resource Schedulers in their demand work list

Viewing Schedule

► Email notifications can be configured locally to push link to platform to view your own or a colleagues schedule

► Email content can be tailored in accordance to SL or Area requirements, if necessary

► Individuals with access to manage their own assignments will have a link to make direct changes (to be determine locally)

► Where amendments are necessary individuals will need to contact the Engagement Manager or Resource Scheduler

Create/Maintain Resource Assignment — Known Change Impacts

► Resource request will be generated by the engagement team as a part of their engagement set up

► Global resource information will be available to resource schedulers► New standardized booking status

► The proposed solution standardizes the request process globally► Amendments to resourcing requests can be incorporated as part of the Estimate

to Complete process, if appropriate

► This process designed to fit into any organizational structure either utilizing a local scheduling role, GSS or direct access for individuals

Process

People

Organization and structures

► Single source of data will results in elimination of existing databases ► Supports IT architectural strategy by integrating with global tools onlyTechnology

► Introduction of this process will change the method of requesting staff for client servers

► Current state there is a lot of variation in the way resources are managed – MRS will impact this from a tool perspective

Culture

► Currently no global policy for creating assignmentPolicies

Manage Engagement EconomicsGTH + TER & TNR + GFS + ETC + EAF + Internal Advice + Approval

Basedata

1 2 3 4 5 1 2 3 4 5Engagement #

P1 P2 P3 P4 P5 Total P1 P2 P3 P4 P5 Total

USD USD USD USD USD USD USD USD USD USDE0001 500 500 900 1.100 600 3.600 400 400 1.200 1.000 1.100 4.100E0002 300 300 300 300 300 1.500 250 600 200 800 300 2.150E0003 700 300 100 0 0 1.100 800 300 200 100 0 1.400E0004 0 0 2.000 2.000 700 4.700 0 0 1.800 1.600 1.200 4.600

Total Project 1.500 1.100 3.300 3.400 1.600 10.900 1.450 1.300 3.400 3.500 2.600 12.250

Staffing Plan Fees Actual Fee

Period 1

Opportunity Header Table Period 1

Opportunity #

Opportunity Fee

Opportunity Exp

Opportunity Billing

Sharing by Plan Production

Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Project Plan EAF%

Opportunity Status

O000001 12.000 1.000 10.000 Plan 12.071 1.006 10.000 10.000 USD 74,5% Released

Engagement Hierarchy TableEnagement Sharing Line

Status item #Engagement

#Production

FeesEAF % Production

ExpProduction

FeesEAF %

to Check +/-5%

NER Exp TER Production Fees

EAF% NER Exp TER

USD USD USD USD USD USD USD USD USD USDE0001 3.900 74,5% 400 3.500 88,8% 3.108 400 3.508 400 74,5% 298 400 698 Released S0001E0002 2.000 74,5% 100 1.450 88,8% 1.288 100 1.388 250 74,5% 186 100 286 Released S0001E0003 1.388 74,5% 204 1.200 86,2% 1.034 204 1.238 800 74,5% 596 204 800 Released S0002E0004 4.783 74,5% 302 4.700 75,8% 3.564 302 3.866 0 74,5% 0 302 302 Released S0003

Total Project 12.071 1.006 10.850 8.994 1.006 10.000 1.450 1.080 1.006 2.086

Sharing Max Fee TableSharing Line

Item #Max Fee

after Descr.

Max Exp

Max TER

Project Plan EAF%

USD USD USDS0001 4.396 500 4.896 74,5%S0002 1.034 204 1.238 74,5%S0003 3.564 302 3.866 74,5%

Total Project 8.994 1.006 10.000 74,5%

Plan Actual cumulated per Period 1Automated Forecast = Actual+Staffing EoP+Plan Expense

• Forecast EAF% column is reflecting color coding in MyEngagements• „Green“ if forecast EAF% > 5% of Planned EAF %

• „Yellow“ if forecast EAF% <=5% and >=-5% of Planned EAF%

• „Red“ if forecast EAF% < 5% of Planned EAF%

• Actual NER is calculated still on Project Plan EAF%

Period 3


Opportunity #

Opportunity Fee

Opportunity Exp

Opportunity Billing


Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Project Plan EAF%

Opportunity Status




#Production


ExpProduction

FeesEAF %

to Check +/-5%


EAF% NER Exp TER

USD USD USD USD USD USD USD USD USD USDE0001 3.900 74,5% 400 3.700 82,2% 3.040 400 3.440 2.000 74,5% 1.490 400 1.890 Released S0001E0002 2.000 74,5% 100 1.650 82,2% 1.356 100 1.456 1.050 74,5% 782 100 882 Released S0001E0003 1.388 74,5% 204 1.300 79,6% 1.034 204 1.238 1.300 74,5% 969 204 1.173 Released S0002E0004 4.783 74,5% 302 4.500 79,2% 3.564 302 3.866 1.800 74,5% 1.341 302 1.643 Released S0003

Total Project 12.071 1.006 11.150 8.994 1.006 10.000 6.150 4.582 1.006 5.588


Item #Max Fee

after Descr.

Max Exp

Max TER

Project Plan EAF%

USD USD USDS0001 4.396 500 4.896 74,5%S0002 1.034 204 1.238 74,5%S0003 3.564 302 3.866 74,5%

Total Project 8.994 1.006 10.000 74,5%


• Actual Fees are still calculated on Project Plan EAF% because Forecast EAF% is „green“

Period 4


Opportunity #

Opportunity Fee

Opportunity Exp

Opportunity Billing


Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Project Plan EAF%

Opportunity Status




#Production


ExpProduction

FeesEAF %

to Check +/-5%


EAF% NER Exp TER

USD USD USD USD USD USD USD USD USD USDE0001 3.900 74,5% 400 3.600 76,5% 2.752 400 3.152 3.000 74,5% 2.235 400 2.635 Released S0001E0002 2.000 74,5% 100 2.150 76,5% 1.644 100 1.744 1.850 74,5% 1.378 100 1.478 Released S0001E0003 1.388 74,5% 204 1.400 73,9% 1.034 204 1.238 1.400 74,5% 1.043 204 1.247 Precosed S0002E0004 4.783 74,5% 302 4.100 86,9% 3.564 302 3.866 3.400 74,5% 2.533 302 2.835 Released S0003

Total Project 12.071 1.006 11.250 8.994 1.006 10.000 9.650 7.190 1.006 8.196


Item #Max Fee

after Descr.

Max Exp

Max TER

Project Plan EAF%

USD USD USDS0001 4.396 500 4.896 74,5%S0002 1.034 204 1.238 74,5%S0003 3.564 302 3.866 74,5%

Total Project 8.994 1.006 10.000 74,5%


• Actual Fees are still calculated still on Project Plan EAF% because Forecast EAF% still „green“ or „yellow“

Period 5


Opportunity #

Opportunity Fee

Opportunity Exp

Opportunity Billing


Fee

Plan Production

Exp

Plan Billing

Opportunity TER


Project Plan EAF%

Opportunity Status




#Production


ExpProduction

FeesEAF %

to Check +/-5%


EAF% NER Exp TER

USD USD USD USD USD USD USD USD USD USDE0001 3.900 74,5% 400 4.100 70,7% 2.897 380 3.277 4.100 70,7% 2.897 380 3.277 Precosed S0001E0002 2.000 74,5% 100 2.150 70,7% 1.519 100 1.619 2.150 70,7% 1.519 100 1.619 Precosed S0001E0003 1.388 74,5% 204 1.400 73,9% 1.034 204 1.238 1.400 74,5% 1.043 204 1.247 Precosed S0002E0004 4.783 74,5% 302 4.600 77,5% 3.564 302 3.866 4.600 74,5% 3.427 302 3.729 Precosed S0003

Total Project 12.071 1.006 12.250 9.014 986 10.000 12.250 8.887 986 9.873


Item #Max Fee

after Descr.

Max Exp

Max TER

Project Plan EAF%

USD USD USDS0001 4.396 500 4.896 74,5%S0002 1.034 204 1.238 74,5%S0003 3.564 302 3.866 74,5%

Total Project 8.994 1.006 10.000 74,5%


• E0001 and E0002 will be changed automatically from system to Forecast EAF% because forecast indicates „high financial risk“

• E0003 and E0004 will still use Project Plan EAF%• All Engagements are move to „Preclose“ status by engagement

responsible

Closing Engagement


Opportunity #

Opportunity Fee

Opportunity Exp

Opportunity Billing


Fee

Plan Production

Exp

Actual Billing

Opportunity TER


Project Plan EAF%

Opportunity Status

O000001 12.000 1.000 10.000 Plan 12.071 1.006 10.000 10.000 USD 74,5% in Closing



#Production


ExpProduction

FeesEAF %

to Check +/-5%


EAF% NER Exp TER

USD USD USD USD USD USD USD USD USD USDE0001 3.900 74,5% 400 4.100 70,7% 2.897 380 3.277 4.100 70,7% 2.897 380 3.277 in Closing S0001E0002 2.000 74,5% 100 2.150 70,7% 1.519 100 1.619 2.150 70,7% 1.519 100 1.619 in Closing S0001E0003 1.388 74,5% 204 1.400 73,9% 1.034 204 1.238 1.400 73,9% 1.034 204 1.238 in Closing S0002E0004 4.783 74,5% 302 4.600 77,5% 3.564 302 3.866 4.600 77,5% 3.564 302 3.866 in Closing S0003

Total Project 12.071 1.006 12.250 9.014 986 10.000 12.250 9.014 986 10.000


Item #Max Fee

after Descr.

Max Exp

Max TER

Project Plan EAF%

USD USD USDS0001 4.396 500 4.896 74,5%S0002 1.034 204 1.238 74,5%S0003 3.564 302 3.866 74,5%

Total Project 8.994 1.006 10.000 74,5%


• Project will be moved automatically "in Closing“ status because all Engagements (see slide before) were in „Preclose“.

• EAF% will updated based on Actual Fees/Exps and Actual Billing• Further action see „Project Closing“ presentation.

Current GTH/GSS Accounting Models

► GTH operates today with at least with 6 different accounting models:

► Charged Hour model: Hourly blended GTH cost rate per (sub-) service line and country / (sub-)service line specific multipliers to establish billing rate

► Committed Hours model: Fixed price arrangement between GTH and internal customer

► Expert model: Hourly cost rate, but calculated on GTH employee specialization (e.g. SAP basis expert, SAP functional expert asf.)

► Charged FTE model: annually FTE related cost rate table

► Legacy model: Time charges on legacy individual hourly cost rates for GTH usage, if EY member firm is in same country as GTH

► Mixed charges model: Combination of charged and committed hour price model

Future State

One accounting model for GTH and GSS operations across all services and for all geographies

Generates comparability of all GTH and GSS operation in respect to cost and hours in service lines and geographies

Allows fully automated back-office by using standard in-house cash function, interoperability and interfirm billing

Focus on GTH/GSS usage possibilities instead of GTH/GSS administration

Minimizes GTH and GSS operation cost.

Standardization of accounting model:

General Model GTH/GSS Description

► Calculate one blended cost rate over all GTH locations per sub-service line and employee

► GTH employee books time directly on local engagement

► GTH employee become “virtual” local employee of engagement country to derive bill rate and generate TER/TNR resp. to avoid blocking rules

► Engagement (margin) and local Profit Center (gross margin) will reflect GTH cost rate

► Billing from GTH to local profit center will be automatically triggered based on consumed hours (usage of global billing center is ensured)

► Legacy employees working for GTH will generate bill automatic invoice between local entity and GTH based on delivered hours

► GSS will adopt the same model

GTH Revenue Recognition ModelExternal Projects

GTH Revenue Recognition Model External Project

Virtual CC

(USD)

GTH CC

(USD)

External WBS

(USD)

India CC

(INR)

India to invoice GTH for staff of Indian Practice Hrs x India Empl. Cost rate (1Hr x INR3,200 =US$52)

Cr. GTH Labor US$100Cr. India Labor US$100

Dr. WBS US$100Dr. WBS US$100

1

Cr. Sold Time GTH Empl. Cost Rate US$48

Dr. Billing Center US$48

Cr. Sold time-GTH = INR3,200

Dr. Purchased from India = INR3,200

4

4

GTH and India staff charging hours to an External WBS element

1. GTH Hrs x NSR rate of the Country owning the WBS (1Hr x US$100)

2. India Hrs x NSR rate of the Country owning the WBS (1Hr x US$100)

Cr. Sold Time India Empl. Cost Rate US$52

Dr. Billing Center US$52

GTH CC to invoice Billing Center1. Hrs x GTH Empl. Cost Rate (1Hr x USD48 )2. Hrs x India Empl. Cost Rate (1Hr x USD52)

2

1

Billing

Center

(USD)

Cr. GTH Labor US$50Cr. India Labor US$50

Dr. Virtual CC US$50Dr. Virtual CC US$50 2

3

3

Billing Center invoice Virtual CC 1. Both GTH and India hours at GTH Blended Rate2. Virtual CC is a designated CC within a country to centralize

GTH transactions

Future Solution

► Segregation of driver elements for GTER, Margin, TNR and Gross Margin

► GTER and Margin should be driven by engagement coding► Service Codes for Service Line reporting► Regional code for Markets reporting► Role code for Performance reporting► Industry code of engagement client for Industry reporting

► TNR and Gross Margin should be driven by people organization coding► Cost Center for Flash reporting► Profit Center for P&L reporting

Global TER / TNR Reconciliation Regional/Area/Global Unit Leader TER Analysis

Global TER / TNR ReconciliationMarket Segment Leader TER Analysis

Analytical and Reporting DimensionsMarkets/Services/Industries

Main Engagement / Client Structure and Reporting Elements

Dimension Coverage Driver KPI

Markets Global► Area

► Region► Market Segment

► 360/HQ Account ► Client

WBS Region Code ► Global TER► Imported TER ► Margin

Services Service Line► Sub-Service Line

► Competency► Service Code

WBS Service Code (“Material Master”)

► Global TER► Imported TER► Margin

Industries Industry► Industry Segment

Client Industry Segment

► TER► Margin

Analytical and Reporting Dimensions People Organization

Main Organization Structure and Reporting Elements

Dimension Coverage Driver KPI

Geography Global► Area

► Region► Economic Location

► Economic Sub.Loc.

► People Cost Center ► FTE (All)► Chargeable Hours (All)► Utilization (All)

► TNR (Region+)► Gross Margin (Region+)► Contr. Contribution

(Region+)► Total Income (Area+)

Services Service Line► Sub-Service Line

► Competency

► People Cost Center ► FTE (All)► Chargeable Hours (All)► Utilization (All)► TNR (Sub-Service Line)► Gross Margin (Sub-Service

Line+)► Contr. Contribution (Sub-

Service Line+)► Total Income (Service Line)

► FTE, Chargeable Hours, Utilization will be used for “Flash Reporting”, other KPIs will be used in P&L and B/S)

Advantages of Proposal

► Coding elements are standardized for each reporting dimension and enable easier communication on management layers:► Engagements attributes driving Market/Service/Industry dimension► People attribute driving capacity and financial dimension

► Standardized coding elements generate correct and comparable KPI results, independent from reporting objective or other structural divers (e.g. partner measurement)

► Dividing engagement driven reporting from people driven reporting allow automation of inter-company transaction, without loosing any reporting or analytical capabilities

► Reconciliation between (G)TER and TNR possible

Internal Projects – Cost Rates

CS employee

Different transactions charged to internal projects

Cost Rate+

Standard Cost Model

Cost Rate+ GTH Rate Employee Rate+

CBS employee

GTH employee

Actual Cost Rate

of employee

Net Standard Revenue

(NSR)(Internal Advice)

Absorption Cost Model

Tight control on usage of

absorption cost model

► Cost center data will be use as the base to calculate rates

► Segregation of NSR and Cost Rate+ by► sub-service line, ► economic location and ► activity rate type

► Cost Rate+ will be calculate by following components

► GTH rate will be calculated as blended rate over all GTH centers for each activity rate type

► Employee Rate+ will calculated similar to Direct Rate+ but uses instead of using the standardized direct cost (1), the individual payroll is applied for this component. This rate is used only in exception case, eg. if cost absorption is required.

Internal Projects - Cost Rate Calculation

Uplift of cost rates (calculation & application)

SL CBS EYGS

(1) Direct cost rate by economic location and SSL

Y Y Y

(2) Indirect cost (including EYGS direct costs) by economic location / SSL in % of (1)

Y Y Y

(3) Global cost (exclude EYGS direct costs) by Area / SL in % of (1)

Y N N

• Applicable RatesProject Types

• Zero rateAbsence

• 2 separate projects required• Zero rate for non-GTH resources• Blended Bill rates for GTH resources

Business Development or other IP @ Zero

Rate

• Cost Plus rates for all resourcesOthers

• Cost Plus rateFixed Assets

• NSR rateInternal Advice

Internal Projects – Cost Rate Usage

Internal Advice Projects

► Internal advice internal project to be set up for any work performed by the SL for EYG or EY internally

► Depending on threshold of project this will drive the approval process

► Same behavior as external engagements (revenue, utilization, NSR and sales credit)

► Proposal as exception to internal project to initiate project creation through CRM to drive sales credit metrics for opportunity and sales partner

► For presentation purposes on financial statements revenue will be identified as “internal revenue”

Internal Advice Projects - Accounting

► Separate revenue account in order to segregate this type of revenue from our external client revenue

► No WIP management associated with project ► Revenue recognition will be performed on internal advice

projects to provide the TER metrics to the partner on the internal advice project.

► Resource cost center will get TNR through the purchase/sold time entries in financial accounting

► Strict governance in place to control use internal advice

work

Day 2 Closing

Overview Sessions - Agenda Day 3

Topic Discussion Points Lead Time

Welcome• Agenda Overview Jamila Thompson 9:00 - 9:15

Day In The Life and Key Design Elements

• Initiate and Perform Billing (Step 15)Ulf Ruschmeier (GSA) /

Kathleen O’Donnell (CAN)9:15 - 11:15

Break 11:15 - 11:30

• Manage Accounts Receivables (Step 16)Marek Lisek (GSA) / Dion Ombler (CAN)

11:30 - 1:30(Working Lunch)

• Manage Collections and Resolve Disputes (Step 16)Marek Lisek (GSA) / Dion Ombler (CAN)

Break 1:30 - 1:45

• Close Engagement Kerri Brown / Ulf Ruschmeier 1:45 - 2:30

• Localization Workshop Execution Review Jamila Thompson 2:30 - 3:45

Day 3 CloseJamila Thompson

3:45 - 4:00

program mercury design overview sessions day 2 january 2014

Documents

detailed engagement

final engagement plan

engagement plans

engagement level

plan update

engagement budget step

engagement setupstart

engagement economics