Choosing an Appropriate Group Reporting Software Solution

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1 Choosing an Appropriate Group Reporting Software Solution

2 Choosing an Appropriate Group Reporting Software Solution Companies today are faced with ever increasing demands for information both in terms of the nature and detail of such information as well as the time frame for publication, both internally and externally. The challenges surrounding such demands are significant in any company but the situation is exacerbated where groups of companies are involved. The Nature of Information Required Once upon a time financial reporting was literally just that reporting the financial performance of the group for the historical period under review via a profit and loss account, balance sheet and a number of notes explaining the extraordinary and exceptional items included in the main reports. Today, with the need to provide stakeholders both actual and potential with a greater depth of understanding and insight into the business performance there is the requirement for more information to be garnered from the business data. The Director s Report and KPIs It is worth pointing out that many of the KPI s that are discussed are those that any savvy investor would quite easily be able to extrapolate from the accounting statements to be found later in the annual report operating profit percentage being an easy and obvious one. Segmental Analysis The requirement to provide segmental analysis places further burdens upon the financial systems and processes behind the publication of a group s annual report with the need for identifiable primary and secondary segments. In many businesses one will see these being business unit and geography. Within group structures these can often be different companies operating in very distinct business areas and geographical regions which makes life easier but it is equally possible that one legal entity within the group will be operating in many operational and geographical segments via, for example different brands. In such a case the operational and finance systems need to be able to provide the necessary level of analysis at a transactional level. As an example of the increased information being included in published accounts one need only look to a typical Director s report to find information about the key performance indicators of the group. Such increased visibility is obviously good for investors but it is an additional burden of responsibility on the reporting Director to establish which KPI s need to be or should be published. In the past such information was required for internal management reporting where the responsibility for total accuracy was perhaps less than in the higher visibility environment of the group annual report. Within the Director s report written in line with the latest standards and guidance one will find a paragraph discussing the KPI s relevant to the performance of the business, some companies will also include the actual values of these indicators within the Directors report. Software

3 Group Reporting - Future challenges Many of you will correctly point out that the above information is still intrinsically financial and that the future challenges to the financial reporting process will be centred on the requirement to provide information on non-financial KPI s. In the past nonfinancial information in group accounts was limited to a reference about the number of employees in the organisation, with a comparison to last year! Today however, the Companies Act requires that a fair review of a business includes non-financial KPI s where applicable and many groups are taking this on board and publishing certain nonfinancial metrics within their annual reports. Larger companies are adopting this approach to be seen to be applying a proactive attitude to this matter, placing themselves in the minds of annual report readers as forward thinking and trying to steal a march on their competitors in their market place. Many people would regard this as a cynical view but until such information is adopted in a widespread and consistent manner it is hard to see it in any other way. Keep Line Managers in the Loop Line managers are often the missing link when it comes to successfully identifying the global talent the business needs to drive its strategy forward. Organisations have a tendency to keep their talent management programmes close to their chest. The information is often owned by HR who protect it fiercely and only share it at the most senior levels. The reality, however, is that this information should be managed at the line by those immersed in the day to day activity of the business. It s simply not feasible in a sizeable organisation for the HR team to have a detailed knowledge of individual employees and what they may or may not be capable of. Line managers see their people in action on a daily basis. They know their strengths and weaknesses and often have an insight into their ambitions and aspirations too. HR people need to look carefully at where the business is headed and the implications this has for the kind of people and skills that will be needed going forward. There are some qualities that good global managers have in common the ability to deal with ambiguity and uncertainty and cultural awareness for example. The full list of global competencies will vary considerably however from business to business, depending on where the organisation is operating and what sector it is part of. Too many organisations take a short-term view on developing talent, focusing on the present without also thinking about future requirements. If the business has a clear idea of what a global leader really looks like, they will be much more likely not just to find the right people, but also to focus their development budget and activities in the right direction. Software

4 Keep the Talent Pool Fresh Talent pools need regular maintenance to ensure they don t become stagnant and remain fit for purpose as the needs of the business change. Are there people in the global talent pool, for example, who are at risk of becoming disenchanted and jumping ship because it has taken too long for an international assignment to emerge? Has the business entered a new country or region which calls for skills, competencies and linguistic abilities that are currently under-represented among the high flyers? Is the age and gender breakdown of the talent pool balanced and as it should be? How many people would be ready right now and willing to immediately relocate if an important global role came up unexpectedly? These are all questions the organisation needs to ask itself on a regular basis to make sure the talent pool remains relevant to the global needs of the business. Exploit Technology People are often concerned that using technology will make their talent and succession planning activities too rigid and inflexible. In fact quite the opposite is true. Today s sophisticated talent management software can help organisations get a handle on everything from performance and potential to functional/technical expertise and international mobility. It can tell the business not just who has been identified as future leaders, but who is ready now, who will be ready in six months time and who needs further development before they can take on an international role. It can also help organisations plan for different scenarios and plot the impact of likely moves further down the chain. Of course technology can t give you all the answers, however good the system. The key to success is to supplement what the system tells you with ongoing, open and honest dialogue between individuals, their managers and the HR team. Software

5 Talentia CPM Talentia s CPM product suite includes: Budget Reporting Gathering, processing and reporting of budget data, it ensures the organisation can construct a customised data repository, easily model its budget rules according to its business and quickly implement a collaborative work environment enabling all users to efficiently perform all tasks relating to budget management. Consolidation Reporting New standards of compliance, increased transparency and traceability of financial data are putting ever greater pressure on the time available in each reporting cycle. Consolidation reporting transforms data into consolidated financial information through automated processes to increase the speed and reliability of financial reporting. It enables, for example, the ability to compare and reconcile between management and statutory reporting; consolidate according to any accounting and reporting standards; and analyse information according to legal & internal management structures. Reporting Dashboard A unique collaborative solution that securely integrates the process of reporting financial and operational information for better business performance analysis. CPM dashboards increase efficiency by enabling the reporting process to be carried out reliably and on time through the creation of instant reports relating to measuring performance, monitoring Key Performance Indicators and analysing information e.g. what if scenarios. E-Pilot A data validation workflow tool that organises the process of gathering and validating the data needed for producing the consolidated financial statements, management reports and budget/ forecasts with fast and easy configuration. It can be customised for each reporting cycle, enable the user to see the status of the validation process, and contribute to moving it forward according to their specific authorisation level. Additionally, it streamlines users work by facilitating the completion of all tasks necessary to produce a periodic report. E-Collect In managing the quality of data, e-collect can facilitate and automate the collection, mapping, conversion, validation and loading of financial and non-financial data coming from other systems. It enhances the CPM software and is dedicated to supporting data upload via the web. Intercompany Reconciliation A powerful solution that manages large intragroup checking and reconciling in real-time. Talentia Intercompany significantly reduces the time to close, consolidation and reporting and enables the finance department to focus its efforts on analysing performance.

6 About TALENTIA SOFTWARE Talentia Software is an award-winning international supplier of HR and finance software solutions, with over 25 years experience striving to always deliver the best possible service to customers worldwide. The product range includes Human Capital Management solutions with Talentia HCM, and Corporate Performance Management solutions with Talentia CPM (consolidation, reporting and budgeting). The group supports more than 3600 customers in over 30 countries, ranging from SMEs to large international organisations. Located in the UK, France, Italy, Spain, Portugal and Greece, together with a network of partners across Europe, the USA, South America, Australia, Asia and Africa, Talentia delivers and supports customers globally.