Is your CEO or CFO asking Treasury and FP&A to drive better business decisions? SynFinyadvisors shared this presentation at the SW Ohio AFP meeting in April 2015. The presentation focused on how Treasury and FP&A are impacted by technology, how they can share data and create insights, and a historical perspective using the Russian ruble crisis of 1998. Hope it helps!

1. TREASURY & FP&A
DRIVING BETTER DECISONS

2. AGENDA
I. Financial
Planning
&
Analysis
Defined
(FP&A)
II. Technology
impact
on
Finance
&
Accoun=ng
III. Sharing
Data,
Crea=ng
Insights
IV. Same
Ruble,
Different
Times
V. Recap
and
Q&A

4. FINANCIAL
PLANNING &
ANALYSIS (FP&A)
DEFINED

5. The SynFiny Advisors definiCon:
ü The
cri=cal
value
crea=on
processes,
which
requires
a
deep
understanding
of
business
fluency,
finance,
modeling,
data
systems
and
processes,
and
accoun=ng.
ü This
typically
combines
financial
and
non-­‐financial
data
as
required
to
create
strategic
and
opera=onal
financial
plans.
ü When
done
well,
these
processes
are
a
clear
compe==ve
advantage
and
thus
are
viewed
as
cri=cal
by
senior
leaders.”
WHAT IS FINANCIAL PLANNING AND ANALYSIS?

6. WHICH PROCESSES ARE TYPICALLY OWNED BY
FP&A?
ü Strategic Planning
ü BudgeCng
ü ForecasCng
ü Management ReporCng
ü Financial Analysis
ü Capital Planning
ü Business Modeling

7. FINANCIAL PLANNING & ANALYSIS
AS GROWTH ENGINE
Higher Growth
Higher Margin
Investments
CompeCCve
Cost Advantage
Improved Business
Decisions & Analysis
Investment in Real
Time Data &
VisualizaCon
Deliver
Financial Strategy
via Financial Planning &
Analysis
Lower Cost/Improved
Service of FP&A Driven
By Efficiency/ProducCvity
•
+6%
Produc=vity
•
+25%
lower
SG&A
cost
•
Real
=me
data
(2
to
5x
faster
cycle
=mes)
•
Master
data
enables
analysis
Higher Sales/Lower Cost
•
Sales
increase
of
app.
+~2%
per
year
•
Cost
decrease
of
app.
+~2%
per
year
•
Faster
decisions
and
ac=ons
than
compe==on
•
Make
beZer
investment
decisions

8. TECHNOLOGY
IMPACT ON
FINANCE &
ACCOUNTING

9. A TALE OF FINANCE & ACCOUNTING SYSTEMS

10. COMPARING FINANCE & ACCOUNTING SYSTEMS
AREA OF WORK
EARLY 90’S
TODAY
Closing
Books
Weeks
to
Months
Days
to
Weeks
Accoun=ng
Systems
Slow
&
poorly
designed.
Mostly
locally,
un-­‐integrated
systems
Fast
&
well
designed.
Fully
integrated
and
standard
ERP.
FP&A
Systems
Only
excel,
highly
non-­‐standard
FP&A
tools
available.
Integrated
w/
Bank
Dial
in
bank
sta=ons,
Cashiers,
and
mailing
documents.
Web-­‐solu=ons,
EFT’s,
and
secure
e-­‐communica=ons
with
bank.
Chart
of
Accounts
No
common
chart
of
accounts,
Accounts
created
for
each
use
Standard
chart
of
accounts.
Simplified
for
business
facing
use.
Ability
to
view
details
Only
high
level
analysis.
Unable
to
view
details
Low
level
analysis.
Drill
into
all
levels
of
transac=ons.

11. SHARING DATA,
CREATING INSIGHTS
TREASURY AND FP&A

12. TREASURY & FP&A WORKING TOGETHER
Treasury Owns
FP&A Owns
By working together
Explain
impact
of
Fx,
commodity,
and
infla=on
by
country
Financial
Strategy
include
impact
of
Fx,
commodi=es,
and
infla=on
Financial
Strategy
can
be
adjusted
as
new
impacts
available
Determining
which
country
creates
Fx
exposures
Incorporate
Fx
exposures
or
impacts
into
sales/cost/profit
Fx
driven
gaps
in
Forecast
or
Budget
iden=fied
and
closed
quickly
Explain
current/future
interest
expense
or
income
Incorporate
interest
expense
or
revenue
into
forecast
Reduce
overall
interest
expense,
Increase
interest
income
Insurance
required
for
catastrophic
policies
Current
and
future
forecast
of
by
country
or
region
profits
Reducing
overall
cost
of
insurance
Nego=a=ng
bank
fees
or
other
treasury
driven
transac=onal
fees
Reflec=ng
bank
fees
into
the
budgets
Reduce
overall
cost
of
bank
or
other
fees

13. RUSSIA
1998 vs. 2014
SAME RUBLE,
SIMILAR TIMES?

14. DIFFERENT LEADERS, SIMILAR TIMES?

15. RUBLE IS FALLING FROM A STEEP CLIFF
Read more: http://www.businessinsider.com/ruble-collapse-1998-2014-12#ixzz3VgXoKTmf#

16. RUSSIAN INTERNATIONAL RESERVES/GDP
Sources: IMF, Russian Ministry of Finance, CFA Institute.

17. RUSSIAN DEBT/% OF GDP
Sources: IMF

18. WHAT DOES A GLOBAL COMPANY DO?
Source:
CIA
World
Factbook
0
500
1000
1500
2000
2500
3000
1999
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$Billion
GDP
Year
by
year
Russian GDP/PPP
Russia has
grown
from the
17th largest
economy in
1998 to the
6th largest
in 2014.

19.
DOES HISTORY REPEAT ITSELF?
FInance Work
Pre-­‐2000’s
Today
Data
easier
to
access
Limited
integrated
systems,
Highly
Manual/Inaccurate
excel
models
Integrated
systems
for
accoun=ng
(SAP,
Oracle,
Work
day,
etc.)
or
forecast
(KCI,
IBM,
Microsop,
etc.)
Organiza=ons
beZer
prepared
Highly
decentralized,
Sharing
knowledge
difficult
More
Centralized,
Ease
of
sharing
knowledge
Data
translated
to
insight
faster
Data
consolida=on
took
months.
Actuals,
Forecast,
Balance
Sheets.
Data
consolidated
in
days,
weeks,
and
some=mes
hours
Analysis
more
thorough
Analysis
was
based
on
“old”
data
for
decision
making.
Analysis
is
based
on
“close
to
real
=me”
data
for
decision
making
Big
Data
&
Visualiza=on
Data
highly
fragmented,
Difficult
to
see
the
forest
through
trees.
Data
consolidated,
Easier
to
visualize
cause/effect,
Different
data
can
be
combined
Faster
reac=on
=mes
Postal
delivery,
Phone,
Fax
Internet,
Videoconferences,
Scanning,
Mobile,
Social
Media
NO. Russia is too big. OrganizaCons are prepared. Tools are befer.

20.
RECAP
AND
Q&A

21. How can Treasury and FP&A work together?
ü Expect
more
from
Finance
&
Accoun=ng
systems
ü Big
data
to
create
insights
and
drive
decisions
ü ERP
for
lower
level,
real
=me
analy=cal
data
ü Fx/Commodi=es
modeling
for
P/L
impacts
ü Work
with
IT
on
joint
projects
to
improve
data
ü AZend
SWOAFP
and
AFP
Na=onal
Mee=ngs!!
TO RECAP

22. QuesCons or Comments?
Contact me directly to con/nue the discussion:
Email:
jswuest@synfiny.com
Website:
synfiny.com
Mobile:
(513)
884-­‐6134