Evolution of the EPM Solution at BT Group

Interview with Warren Clements – BT - Head of Central Consolidation

Warren Clements is responsible for the Financial Planning process for BT Group which involves the collection, consolidation, analysis and reporting of financial and non-financial management results data to the BT Board.

In this interview Warren tells us about how the initiative to improve corporate performance reporting, cut costs and increase individual effectiveness evolved into a full blown Enterprise Performance Management Programme...

What were the Performance Management challenges that you and BT Group faced before the EPM initiative?

In 2 words – the ‘spreadsheet nightmare’. When you’re dealing with spreadsheets originating from around 580 legal entities in over 170 different countries, it takes a staggering amount of  time and resource to ensure process control and effective extraction of meaningful management and statutory results. We really needed to reel it in.

"Elimination of Effort. We needed to relieve the burden of data preparation"

What was the chain of events that led to the procurement of a full end-to-end EPM Programme at BT?

I joined BT with the intention to leverage my previous Hyperion Essbase experience with a view to improve Performance Management at BT. When Himanshu Raj joined as the FD of BT Retail, we instigated a project to implement Hyperion Essbase and Planning – effectively eliminating the ‘spreadsheet nightmare’ in BT Retail. The project was a resounding success so we set up the BT Finance System Centre of Excellence where we formulated our vision of an EPM Solution spanning the entire BT Group. The BT EPM Programme was born! 

What was/is that vision and how far have you come?

There wasn't a clear vision to start with so our vision evolved over time.

“The Goal of the EPM Programme is to deliver guaranteed data integrity originating from a single, reliable source and a streamlined, cost effective process from transaction to executive decision level.”

So far we’re reaping the benefits of better processes and data integrity; allowing more confident, informed decision making. We’re also starting to see the effects of cost reduction. However, I should mention that beyond the EPM Programme, the ultimate prize is the ‘Global ERP’. 

Tell us about this ‘Global ERP’.

A single ERP system with one standardised chart of accounts implemented across the whole BT Group. We have achieved Performance Management reporting and process improvements, however, the implementation of a Global ERP solution is a long term project which has started to deliver and will continue to deliver over the next few years.

Sounds like a massive task. How did you approach the planning and delivery of the EPM Programme?

When we started in 2001 our approach was largely incremental - one line of business at a time, one application at a time - through focussed individual projects.

So far there have been around 17 integrated projects - each delivered against a stringent methodology complete with steering groups and governance boards and a project team consisting of a project manager, business analysts and technical analysts and change management. This is where ReportSource has been instrumental.

“It must be understood that we are delivering these projects in the midst of a much larger organisational change programme”

How did you prioritise the delivery of these Management Reporting projects?

It was an evolving approach. We felt it was important to prioritise Planning, Consolidation and Management Reporting processes of each Line of Business separately. This helped realise the short term benefits of proving value in small chunks before progressing to consolidated Group initiatives. Statutory Reporting was then the next step after that. 

A full EPM System Implementation does not only include Planning, Consolidation and Management reporting solutions. What other projects are included in the Programme?

Foundation module projects focused on delivering robust systems architecture, integration and performance which  uderpinned the success of the later projects. Now that the basics have been done, we’re looking at Business Intelligence products to leverage financial and non-financial information to enhance decision making through Interactive Reporting and Dashboards.

How did you manage the profound business change that the EPM Solution made to BT Finance Employees?

Most of the time people were just pleased to be finally given the tools to make sense of the chaos and work more efficiently. It is absolutely key to implement a Change Management approach including communication, training, executive endorsement and support to ensure user adoption of the new processes, systems and skills. Not only is part of the objective the improvement of work-life balance but also the acquisition and exploitation of new skills. It is this ‘people benefit’ that is very difficult to measure.

One of the key features of the EPM is the concept of one truth – or rather one single point of reference of all consolidated financial data to ensure the integrity of the data. Do you believe that this has been achieved?

Yes – for financial data. It becomes more difficult for non-financial data because the accrual concept is not logically applied.

For financial data, we now have automation of granular data from local ledgers directly to the central consolidation system. Coupled with robust system controls, we have eliminated countless hours of ‘death by spreadsheet’ and the related inaccuracies.

One of the key wins of the EPM is the automatic load of data directly from the individual ledgers. This means there’s no messing about with spreadsheets and it lends integrity to the numbers.

What value has this integrity brought to executive level decision making?

It has had a profound impact on senior management within BT Group. There can now be meaningful analysis and decision making rather than conflict about the accuracy of the numbers. We can now more effectively manage PERFORMANCE and make informed business decisions.

What other main benefits does the EPM Programme deliver?

• Cost Savings through reduced headcount and more efficient working practices.
• Faster and more accurate reporting cycles.
• Organisational change allowing working practices to shift to a standardised Centre of Excellence.
• The opportunity to cull unnecessary and costly processes through detailed reviews of our practices and systems.
• Systematic and Auditable preparation of data.

How has the EPM Programme affected your role?

It IS my role. So far we’re achieving what we set out to do but the opportunities for improvement never cease – especially in an ever-changing organisation like BT.

What are your tips for any large organisations taking on a similar approach to a full end-to-end EPM Solution?

Take your stakeholders on a journey. It’s not only about cost reduction and improved performance but also about organisational change.

Don’t fret if you haven’t got it all planned out. Take a project-by-project evolutionary approach to delivering stepped improvements via prioritised projects and you will see your vision taking shape.

ReportSource is proud to present Warren to you at the VNU Softworld BPPM Show on the 17th October where he will present a masterclass detailing the approach to EPM Programme delivery at BT.