Hilton Case Study Creating a Best in Class SSO Example to Roll Out Globally

Transcription

1 Hilton Case Study Creating a Best in Class SSO Example to Roll Out Globally Neil Patmore Senior Regional Director of Finance Australasia 17 th June, 2016

2 Six Pillars of Finance...to provide timely and accurate financial information to be used as a basis for performance assessment of the business......to ensure that Statutory, Taxation and Legal compliance is maintained thereby protecting the hotel assets and future profit streams of the business......to lead our partners through strategic planning and entrepreneurial activities that continuously develop the business... MEASURING CONTROLLING SAFEGUARDING MANAGING GROWING RESOURCING...to adhere to Company policies, procedures and internal controls in order to promote efficiency and protect the business......influencing stakeholders with financial guidance and commercial direction to actively drive the performance of the business......identifying, attracting, developing and retaining the right people in the right place at the right time to operate the business Hilton Worldwide Confidential and Proprietary 1

3 30.0% Time Spent by DOF s 25.0% 20.0% 15.0% 10.0% Only 34% of the DOF s day is spent in the areas of Managing, Growing and Resourcing the Business 5.0% 0.0% Measuring Controlling Safeguarding Managing Growing Resourcing 2016 Hilton Worldwide Confidential and Proprietary

4 Strategic Direction To provide a working Environment which improves our DOF s ability to Partner the Business by ensuring that they have the capacity to allow them to move further to the Right of the Six Pillars of Finance thereby providing greater Opportunity to Add Value to the Operation Hilton Worldwide Confidential and Proprietary 3

5 Goals Review Standardise the transactional processes within the Hotel s Back Office Function. Centralise and standardise the internal control requirements thereby removing the need of the Hotel DOF s to monitor or implement any control changes Implement Remove the transactional paper flow from the business and replicate this in a standard electronic work flow that can be accessed anywhere, anytime, thereby giving the additional benefit of plug and play for new Hotels Grow Build capability and knowledge within the larger available resource thereby creating greater flexibility, coverage and personal development within the Finance Community Hilton Worldwide Confidential and Proprietary

6 Key Milestones Review 1. Review the current transactional processes across a broad range of hotels for all tasks completed within the finance environment. 2. Document standard work flows for all tasks and subtasks of the four main transactional sub-functions being Income Audit, Accounts Receivable, Payroll and Accounts Payable. 3. Work in conjunction with Internal Audit to ensure that the standardised workflows meet the current control environment as well as ensuring the system flexibility Implement 1. Identify and source a suitable IT system that can accommodate the transactional needs of the business in an electronic format 2. Implement the agreed transactional work flows in an electronic format and ensure flexibility remains to continually review and improve the processes. 3. Identify a suitable storage solution Cloud vs Local Grow 1. Review current resource and propose future requirements based on the centralised requirements. 2. Identify suitable resource from existing Finance Team Members and recruit internally where possible. 3. Implement development plans for Centralised team members to ensure a broad knowledge base is encouraged and exists Hilton Worldwide Confidential and Proprietary

7 System Alignment standardised requirements Income Audit Accounts Receivable Payroll Accounts Payable Reporting / Analysis Document Management System - Doc Matrix OnQ Ops Audit OnQ AR Kronos / etivity Birch Street / Check Meridian / Preceeda Ricoh / Laserfiche HLBFS / Essbase SUN General Ledger 2014 Hilton Worldwide Confidential and Proprietary

8 Australian Finance Headcount 59 FTE (2013) SYD 12.5 FTE NT 10 FTE SEQ 12 FTE 0 FNQ 9 FTE WA 7 FTE VIC 8.5 FTE 2016 Hilton Worldwide Confidential and Proprietary 7

9 Current Status of Centralisation & Future Progress Jan 2014 Jan 2015 Jan 2016 Mar 2016 Jan 2017 Income Audit 12 Hotels Centralised by Nov 2014 Accounts Receivable 12 Hotels Centralised by Nov 2014 Payroll 8 Hotels Centralised by Nov 2015 NT June 2016 Accounts Payable WA, NT planned for completion by June Hotels Centralised by Jan 2016 Reporting / General Ledger 1 Hotel Pilot from Nov 2015 CNS, BNE, VIC, WA, NT from Jun to Dec 2016 Hilton Worldwide Confidential and Proprietary 8

10 Future Australian Finance Headcount 48 FTE ( 11 FTE) SYD 3 FTE NT 2 FTE Accts Payable SEQ 3 FTE Accts Receivable 34 Income Audit FNQ 2 FTE Payroll WA 2 FTE General Ledger VIC 2 FTE 2016 Hilton Worldwide Confidential and Proprietary 9

11 What have we achieved? To provide a working Environment which improves our DOF s ability to Partner the Business by ensuring that they have the capacity to allow them to move further to the Right of the Six Pillars of Finance thereby providing greater Opportunity to Add Value to the Operation Hilton Worldwide Confidential and Proprietary 10

12 Where are we now within Asia Pacific? Currently, each region has been looking at centralisation strategies separately by country. Australia centralised 12 hotels IA, AR, 8 payroll, 7 AP, GL (trial ongoing) New Zealand currently clustered AR (semi), AP (semi), Payroll (full) Japan looking to roll out AR, Payroll (std HRIS EOY) and IA China looking to roll out IA and AR to 3 hotels within Shanghai Various systems are in place across the estate i.e. OnQ PM or Opera, BirchStreet, Check, HRIS/T&A, SUN There existed a requirement for a more focussed review and implementation process Country centric shared service model covering all functions (Australia model) Regional hub with specific or specialised tasks (Memphis, FAAST model) Area hub with specific or specialised tasks (RMCC model) Mixed model i.e. onshore + offshore with specific or specialised tasks 2016 Hilton Worldwide Confidential and Proprietary

13 Phase 1 Site visits Review of Income Audit processes covering OA process, daily tasks, reconciliations, reporting, document approvals 1 day Review of AR processes covering direct bills, collections, allocations, reconciliations, daily tasks 1 day Review of AP processes covering invoice processing, method/frequency of disbursements, supplier reconciliations, invoice approvals, PO system integration 1 day Review of Payroll processes covering payroll processing and disbursements, reconciliations, deductions, statutory requirements 0.75 day Review of GL processes covering daily tasks, reporting, reconciliations, analysis, tax compliance 0.75 day Understand Hotel Finance manning structure, task distribution and labour cost for IA, AR, AP, Payroll and GL Review of IT systems, network speed and versions Interaction of each of the functions with operations 2016 Hilton Worldwide Confidential and Proprietary

14 Phase 1 Process Flows Income Audit Accounts Receivable Payroll Accounts Payable General Ledger 1.Credit Approval 11.Unidentified Deposits 2.Direct Bill City Ledger and TA 12.Refund of guest deposit/credits 3.Direct Bill F&B Coupons/Vouchers 13.Cheque Payments 4.Direct Bill Concessionaires, Commissions 14.Credit Card Reconciliation 5.C&E Invoices 15.Bill queries and CC queries 6.Weddings 16.Team Member City Ledger 7.Rebates 17.Credit Meeting 8.Under/Over Charge 18.Bad Debt Provision 9.High Balance Report 19.Payment Allocation 10.Advance Deposits 20.Pro-Forma Invoice 2016 Hilton Worldwide Confidential and Proprietary

15 Phase 1 Process Flows Differences Same Task Same Country Same City Similar Hotel Different Process No of FTE in Hotel Transactional Team 11 vs Hilton Worldwide Confidential and Proprietary

16 Take Aways Don t assume all your operations are following the same processes. Don t under-estimate the change management required to ALL areas of the operation. Do understand what the financial resource requirement in the operationa should look like post implementation Hilton Worldwide Confidential and Proprietary

17 Hilton Case Study Creating a Best in Class SSO Example to Roll Out Globally Neil Patmore Senior Regional Director of Finance Australasia 17 th June, 2016