Coupa Inspire 2016 A Change is Gonna Come May 12, 2016
Introductions Kent Ly, Sourcing Manager TD Bank Group 2 Daniel Abichandani, Leader National S&P FI Consulting Practice, Deloitte Kent L y currently serves a s the S enior Manager o f S ource- to- Pay Technology a t TD Bank Group, responsible for the transformation of TD's Strategic S ourcing Group's e nd to e nd technology o ptimization helping TD to recognize a nd capitalize o n the real value o f procurement transformation. Daniel is a leader o f o ur Canadian Financials Services S ourcing a nd p rocurement P ractice. He focuses o n P rocure to P ay Transformation, Supplier Risk Management a nd strategic sourcing with many financial services clients including b ut n ot limited to the B ank o f Montreal, TD B ank, a nd CIBC. Prior to this role, K ent h eld transformation a nd implementation roles with o ther " Big 5 " Canadian financial institutions which included similar responsibilities such a s selecting, deploying, managing a nd improving Procurement p latforms. Daniel led large/complex Coupa implementations for 2 o f the top 5 Canadian Banks. Copyright 2016 Deloitte Development LLC. All rights reserved.
Overview Situation TD is undertaking a No PO No Pay Program that aims to revitalize internal processes and systems, to streamline and enable a greater volume of electronically-based transactions, ultimately making it easier for suppliers to do business with TD. Despite a successful implementation, there was an opportunity to further enhance Coupa uptake and usage throughout the enterprise Targeting 90% of total transaction volume and 76% of total spend to be processed through an approved procurement vehicle by the end September 2016. The No PO No Pay policy will be fully enforced. Exceptions aside, all invoices will be required to be backed up by a purchase order to be paid Objectives Standardizing the use of enhanced requisitioning and procurement processes, leveraging approved procurement vehicles with a focus on Coupa Improve efficiency, effectiveness and/or control through the use of procurement vehicles Enable suppliers to exchange procurement and payment information with TD in the most efficient and cost effective way 3 Copyright 2016 Deloitte Development LLC. All rights reserved.
Typical Technology Implementation Barriers to Change Of the top 10 barriers to successful implementation, five are addressed by developing, thoroughly planning, and implementing a structured Coupa Change Management and Stakeholder Engagement program: Top 10 Barriers To Successful Change Resistance to Change 82% Inadequate Sponsorship 72% Unrealistic Expectations 65% Poor Project Management 54% Case for Change not Compelling Project Team Lacking Skills Scope Expansion / Uncertainty No Change Management Program No Horizontal Process View 46% 44% 44% 43% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % of Firms Mentioning Source: Deloitte Survey 4 Copyright 2016 Deloitte Development LLC. All rights reserved.
Why Engage Coupa Stakeholders for NPNP? Coupa stakeholder engagement is critical in order to foster the commitment that is required to build a critical mass of people who can move the change associated with the new system throughout the organization and to ensure the change is sustained well into the future. What is a Coupa stakeholder? 4 A Coupa stakeholder is defined as a person or group of people leading, involved in, or impacted by the Coupa transformation/change. These individuals or groups: 4 May be held accountable for the success or failure associated with the change 4 Will either help or hinder the change process 4 May be impacted by changes to their roles and responsibilities, skills, knowledge or behavior 4 May have access to resources to help the implementation team achieve its objectives Why is engaging Coupa stakeholders important? 4 Effective strategic engagement is critical to building stakeholder commitment, which in turn, is critical to optimizing Coupa transformation project success. The level of stakeholder commitment is directly correlated to the following: 4 The level to which stakeholders understand the reason for the change and the impact the change will have on them 4 The level to which stakeholders understand how their individual and team roles may change and over what time period 4 The degree to which stakeholders are encouraged to add their input to the change process and become involved as a change agent in making the change successful What are the risks of not engaging Coupa stakeholders? 4 The risks of not effectively engaging stakeholders include: 4 Potential increases in resistance to change due to a limited understanding of the reason for the change 4 Potentially set the stage for a negative environment for change that can not be reversed as the project progresses Effective stakeholder engagement results 4 Assurance that the right people will receive the right information, at the right time, and in the right way 4 Assurance that the right people are engaged at the right time, and in the right way 4 Proactive management of the pace and amount of change that each stakeholder group must undergo to prevent change overload 4 Organizational buy-in, commitment, and capability for change 4 Mitigation of risks associated with implementation of the new tool 4 Maximization of the potential for a successful transition from the current to the future state 4 Changing stakeholders role from passive to active participation in relation to the change 4 Building shared commitment between the project team and key stakeholders 5 Copyright 2016 Deloitte Development LLC. All rights reserved.
People Impact of Coupa Implementing Coupacan entail: New business processes New relationships with supplier New reporting structure New SLAs/performance expectations New roles and responsibilities Coupa More standardization Transfer of activities from incumbent suppliers (enablement) Changes in governance and how decisions are made The level of change could be significant and may affect employee productivity. Addressing the What s in it for me? questions is key to maintaining employee productivity during the implementation of the new production print management services Stakeholders will subconsciously ask themselves: Will I choose to behave in a way that will help make the P2P strategy successful? Does this change make business sense to me? 4What are the strengths, weaknesses, opportunities, and threats relative to the proposed change? Will I be successful? X (Am I able to do what Will I get something I has been asked of X value out of this? X me?) 4Do I believe this will work? 4Do I have the skills? How will I acquire the skills? What is my level of confidence? 4Is this about cutting costs or improving the way I currently do production printing? 4Can I make a difference? Is it worth the effort? 4Is the extra time I invest worth the reward/ outcome? 6 Copyright 2016 Deloitte Development LLC. All rights reserved.
NPNP and approved procurement vehicles streamline procure-to-pay processes, increases control and visibility into spend Benefits to End-User Single tool: Manages most of purchasing activities and access supplier Catalogues Efficiency: Streamlines approval process and reduces manual intervention Increases control: easy monitoring of Purchase Orders and spend tracking Risk control: Reduces risk of invoice and payment errors Risk control: Reduces procurement risk by approving spend before commitment Visibility: Increases visibility on who is managing and approving expenditure Compliance: Increases contract compliance Efficiency: Reduces time spent on audit activity by tracking spend and approval history Invoice documents repository Benefits to TD 7 Copyright 2016 Deloitte Development LLC. All rights reserved.
Wave-1 implementation was wrapped-up end of January 2016, directly followed by wave-2 roll-out 3 2 NPNP Wave 3 (May 2016 July 2016) Roll-out defined Coupa Procurement Paths to remaining suppliers Train identified Coupa users primarily within TD and INS LOB s 1 NPNP Wave-2 (February 2016 April 2016) Roll-out defined Coupa Procurement Paths and enablement types to next suppliers Train new identified Coupa users primarily within Corp and CC LOB s NPNP Wave-1 (August 2015 Jan 2016) Development of Coupa Procurement Paths based on input collected from 300+ TD stakeholders Coupa system gap assessment and configuration completed to meet new transaction types Successful test-proof procurement paths and system configuration on wave-1 vendors Training provided to Coupa users primarily within target LOBs 8 Copyright 2016 Deloitte Development LLC. All rights reserved.
Concurrent Internal Process Optimization (PO) and Supplier Enablement (SE) Approach and Timeline Weeks 1 Weeks 2-4 Weeks 4-5 Weeks 6-7 Weeks 8-9 Weeks 10 TD Stakeholder Identification Wave X Internal Current State Info Session Interviews 0h30* 1h00 1h30* 1a Supplier contact 1b Identification Wave X Supplier info session 2a 2b Supplier Enablement Surveys Process / PO Structure Mapping 1h00 * 3 Supplier Enablement Mapping Future State Coupa Internal Production Data Workshops User Training Set-up 1h00 1h30* 3h00 * 0h30 * 4a 4b Communicate Enablement Method 5a 5b CSN Supplier Training 6 Production Data Set-up PO in Coupa Production Key Activities PO and SE Kick-off NPNP Wave 2 Present program objectives Share roll-out approach / process Highlight key data requirements to support roll-out PO: Review current demand generation, invoice processing and payment process Present future state processes Finalize data collection SE: Submit enablement survey to suppliers (by VM) PO: Map suppliers spend to Coupa Path Create sample PO s in test environment SE: Map suppliers to enablement type Set-up supplier in Coupa PO: Share process recommendations and review PO in test environment (demo) Identify key internal users to train SE: Share enablement recommendation with suppliers and plan development if required PO: Conduct internal Coupa user training SE: Invite Suppliers to be linked on CSN Conduct external supplier CSN training PO and SE: Set-up data in Coupa Production Support internal user and suppliers creating PO s and processing receipt in Coupa Legend: NPNP Team + Stakeholder NPNP Team + Suppliers NPNP Team Stakeholders + Vendors Internal PO Process External SE Process * Estimated time commitment from internal stakeholders to support NPNP Team Socialization with leadership to obtain buy-in done by individual stakeholders 9 Copyright 2016 Deloitte Development LLC. All rights reserved.
Q&A 10 Copyright 2016 Deloitte Development LLC. All rights reserved.