randstad's cloud-based tagetik 4.2 implementation for ... · the solution: tagetik in the...

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Randstad's Cloud-Based Tagetik 4.2 Implementation for Consolidation & Reporting And next steps

Mr. Paul Bakker (Randstad)

Controllers congress April 1, 2014


Agenda

Randstad Company Overview

The Challenge

The Objectives

The Solution

The Benefits

Next steps

Questions & Answers


Company Overview

1



Established in 1960

CEO Randstad Holding

Global footprint

We have top 3 positions in: Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece, India, Mexico, The Netherlands, Poland, Portugal, Spain, Switzerland and the UK, as well as major positions in Australia and the United States.

“why don’t we start an agency tomorrow?” Frits Goldschmeding

Our mission is to take the lead in shaping the world of work.

Jacques van den Broek

At Randstad 29,320 employees work at 4,496 branches and inhouse locations to employ almost 581,700 on a daily basis.

Number 2 worldwide, after the acquisition of Vedior in 2008, the Randstad Group is the second largest HR services provider in the world.


The Challenge

2


The Challenge

• 465 entities • 32 currencies • 450 users • Legal, Managerial, Geographical & Fiscal • Actual, Budget & Forecast • Tax accounting • Top-down intercompany matching • Deteriorating software performance • Difficulties with software ownership and

maintenance at own IT department

• Top-down consolidated cash flow in Excel • Organic growth calculations in Excel • Underlying (one-offs / pro-forma Excel • Weekly employees working in Excel • Source G/L interfaces through Excel • Many Excel Retrieve-reports


The Objectives

3


The Objectives

• Migrate the consolidation & reporting system into the cloud. • Implement ETL interfaces at all of the operating companies. • Allocate the intercompany matching to the operating companies. • Introduce a two-step monthly and three-step quarterly reporting

process, including sign-off / submission with relevant blocking controls per reporting step.

• Include weekly reporting of Employees Working in the application. • Integrate cash flow and organic growth calculations in the application

so they can be calculated bottom-up by the system. • Enable reporting of both Actuals and

Underlying from the same system • Introduce rolling forecasting, with a specific

focus on cash flow forecasting. • Automate equity consolidation and allow

for an automatic reconciliation of equity movements at Randstad Group level.


The Objectives

September 2012

November 2012

February 2013

March 2013

June 2013

Start of design phase

Start of build phase

End of build and data conversion

Training sessions

Go Live

April 2013 Start of parallel runs

9

m o

n t

h s


The Solution

4


The Solution: Tagetik in the cloud

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The Tagetik software is maintained and supported by Tagetik itself (“SaaS” – “Software as a Service”), with the big advantage that the vendor itself is responsible for keeping its software up and running. The servers are hosted by Amazon. The advantage of this approach is that the hardware is scalable and that additional processing power can be easily allocated if so required. The access through the internet is facilitated by a secure VPN-tunnel.


The Solution: ETL

The ETL-functionality was implemented using one standardized template. This pushed down some of the work to the operating companies but allowed to arrive to a manageable ETL solution across Randstad Group in a very short timeframe.


The Solution: process management

The (quarterly) reporting process is broken down into three steps: • Intercompany, with a

close two days prior to reporting deadline

• Financial Statements, including cash flow and disclosures

• Corporate Sustainability Reporting


Perform data processing

Submission / approval

Run consolidation


Initiate revenue

eliminations


Run equity pickup

Perform data processing


Initiate revenue

eliminations

Run equity pickup


Run consolidation


The Solution: workflows (‘FINAN’ step)

Contributor data processing on an entity

Contributor data processing on a node

Consolidator data processing on a node

Start End

Calculation logics

Submission

Start End

Consolidator data processing

Submission

Start End

Calculation logics

Submission Contributor data processing


The Solution: weekly reporting

In order to achieve weekly reporting within the application, the (maximum) 53 weeks are included as periods 25 through 77 in the data model. These periods are allocated to a dedicated ‘weekly’ scenario.


The Solution: cash flow reporting (1)


The Solution: cash flow reporting (2)

The data model contains a full integration of income statement, balance sheet and cash flow statement. Operating companies report the income statement, the balance sheet and the balance sheet variations, which results in a fully calculated cash flow. The consistency of the reported data is safeguarded through a set of over 300 blocking controls. Users can review any control errors from within the data entry screens, and they can click on a hyperlink to be taken to the data entry form involved.


The Solution: organic growth reporting

All inorganic effects, such as one offs, integration costs, and pro forma adjustments, are stored in the database. Combined with the legal events table, this allows to generate an on-the-fly organic growth report that has the user select the account as well as the starting date and ending date in the report’s parameters.


Run equity pickup

Run equity pickup

The Solution: equity pick-up

Initiate revenue

eliminations


Start End

Calculation logics

Submission Contributor data processing

Run


The Benefits

5


The Benefits

• A reduced downtime and more reliable software version management by outsourcing Tagetik as a SaaS-solution in the cloud.

• All reporting processes (weekly / monthly / quarterly) embedded within one application.

• More transparency and better data audit trails through ETL. • More consistent and reliable information through the introduction of

more stringent process management / blocking controls. • No more intercompany matching effort at Holding level; local ownership. • No more manual equity consolidation entries. • Less / no reliance on customized Excel

sheets for the calculation of cash flow and organic growth.

• Cash flow can be drilled down from Group level, giving it a similar reporting & analysis approach such as the income statement.


Next steps

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24

• Currently Forecast only until the end of the calendar year

• As per April 2014, companies are required to start reporting rolling forecast.

1. Introduce rolling forecast

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• Group is focused on more attention to forecasting results and cash flow development

• Contrary to the actual process, where the balance sheet is reported and the cash flow is the calculated outcome, the cash flow is (partially) reported directly within the budget and forecast. The number of cash flow line items to be reported is limited; mainly capital expenditure and income tax payments.

• Budgeting and forecasting have been aligned as much as possible; the data set for forecast and budget in principle are the same

• Tagetik allows to forecast and budget periodically, instead of the cumulative input of Hyperion.

• The forecast involves a 12 month rolling concept to smoothen the transition to the budget.

• Previous versions of the forecast (12 per year) are archived within Tagetik.


February / March 2013 Tagetik training workshops

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Forecasting and budgeting requirements

Reporting requirement Month end

Quarter end

Once a year

High level income statement

Operating working capital

Percentage VAT

Breakdowns by revenue category and revenue type

Hours invoiced & number of placements

Net fees and HRS fees

Corporate staff

Employees working, branches, inhouse locations, units

Provisions

Cash flow data entry (e.g. capex and income tax payments)

Line item details for advertising & marketing and IT costs

Taxable result calculation (permanent differences!!)/ Tax rates

Breakdown personnel expenses HO

Public / bank holidays (budget data copied to forecast) copied copied

Forecast Budget


27

Rolling Forecast report:

Reference fx-rate applied on-the-fly to

comparatives


28

Introduce a (mobile and desktop) BI-tool such as Roambi / or Tagetik analytics / or CXO cockpit

• Provides Key users CFO’s / EB with easy data access and analytical power wherever you are

• Allows having all relevant information available at your fingertips (i.e. EB Book data)

• Enables relevant analyses “on the road”, e.g. when visiting OpCos

2. Introduce BI-tool

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Introduce custom dimension(s) for disclosure: Concepts

• Disclosure by concepts: Revenue, Gross profit, EBITA, employees working, personnel expenses Fld. , Hours invoiced, corporate personnel FTE

• Concepts Randstad:

• Staffing

• Specialties

• Finance

• IT

• Etc.

• Non-specialties

• Professionals

• Specialties

• Finance

• Engineering

• Etc.

• Non-specialties

• Inhouse services

• Specialties

• Non specialties

• HR solutions

3. Introduce custom dimension(s)

30

…Introduce custom dimension(s) for disclosure: Concepts

• Currently flat account structure: many accounts, limited possibility to analyze

• Concepts to be moved to a dedicated custom dimension within Tagetik

• Creates more efficiency for data entry forms, output reports and ad hoc reports

• Will enable more analysis in BI-tool

3. Introduce custom dimension(s)

31

Introduce a monthly reporting of Balance sheet and Variations as 2015

Allows us:

• to have a monthly consolidation of full financial statements (IS / BS / VAR / CF)

• to move from two separate processes (Q and M) to one single process.

• The new process will have 4 steps for Operating companies:

• IC: IC – matching

• FINAN: Financial statements + disclosures

• TAS: Tax accounting (quarterly disclosure)

• CSR: Sustainability reporting

• to move to periodic average exchange rates for the income statement (instead of currently used YTD average fx-rates).

4. Introduce monthly BS / Cash flow reporting

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• Allows to store Bridging Statements and Exception Reports centrally in Tagetik database

• Reduces the need for a file-based / local collection of reports

6. Investigate use of Tagetik Budgetting & planning module

• One major operation is in the process of replacing Hyperion planning with Tagetik budgeting and planning

• Allows to execute “what if” scenarios on the data could be used for Budgeting and Forecasting

5. Archive / integrate Bridging statements

33

• One major operation is in the process of replacing Hyperion planning with Tagetik budgeting and planning

• Budggeting & Planning allows for driver based budgetting / forecasting

• Allows to execute “what if” scenarios on the data could be used for Budgeting and Forecasting

6. Investigate Tagetik Budgetting & planning


Questions & Answers

7


Mr. Paul Bakker Manager Reporting & Systems

Randstad Holding NV

[email protected]

Mr. Casper van Leeuwen Partner

Satriun BV

[email protected]

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