leveraging primavera to fulfill financial management strategies
TRANSCRIPT
Leveraging Primavera P6 to Fulfill Financial Management Strategies
Matthew Friedman, Director of Integration Services, EcoSys Management
Jeffrey Finkiel, Senior Financial Analyst, Guardian Life Insurance
• Primavera Service Provider and Technology Partner• Supported over 150 enterprise project and financial
management Implementation & Integration Projects• Original designers of TeamPlay/P6 enterprise software• EcoSys Financial Manager software: bridges project
management with financial management• Headquarters in New York; branch offices in London,
Atlanta, San Francisco
EcoSys Management
• Headquarters in New York City • $41 Billion including subsidiaries• 5000 employees, 700 in IT, including consultants• Provider of life, health, disability insurance to
individuals and businesses • Has rigorously reduced IT spending through strong
financial control• Fifth largest mutual life insurance company in US• 85 agencies around the country
Guardian Life Insurance
Agenda
• Current vs. Projected Financial Management Strategy at Guardian
• Review Guardian’s set of Financial Tools
• Guardian’s Financial Management Requirements
Guardian – Current Financial Strategy
• Overview of current overall processes and the issues involved
Guardian - Projected Financial Strategy
• Expanded utilization of Financial Manager• Next Steps towards more efficient processes
Guardian’s Financial Toolset
• Primavera Enterprise• EcoSys Financial Manager • PeopleSoft• Clarity / Essbase• Excel Spreadsheets• Notepad• Napkins (coasters)
Guardian’s Financial Requirements
• Top-Down Budgeting• Software Capitalization• IT Chargebacks• Past-Period Cost Adjustments• Financial Reporting & Charting
Top-Down Budgeting
• In Financial Manager Guardian takes advantage of all the work PMs & users perform in P6
• Import Primavera Planned Values into Financial Manager as a Budget Starting point
• Import Primavera Actuals into Financial Manager and utilize for Budget Forecasting/Comparison
• Provide access in Financial Manager to Primavera PMs to make requests and get approvals for budget for their projects
• Financial Manager Funding Sources or Profit Centers originally come from Primavera
Top-Down Budgeting
Software Capitalization
• Guardian’s current approach towards Software Capitalization
• Next steps for Software Capitalization utilizing Financial Manager
· 3 types of Chargeback costs: Emp./Cons./Other Exp.
· Chargebacks based on the direct cost to be recovered through project work
· Business units split project funding by percentage
· Results fed monthly through General Ledger
· Consolidated bill provided to business units by each IT division
· Budgeting process incorporates commitments and targets on spending types (e.g., New development vs. Production support)
IT Chargebacks
Integration between Primavera, Financial Manager and PeopleSoft
EcoSys Financial Database
• Chargebacks • Monthly Closeouts & Controls• Report of Credits/Debits in
PeopleSoft Format • Financial accounts and categories• Top-down annual budgeting
Primavera Project Database
• Projects • Resources• Labor Costs• Other Expense Costs
Financial UsersProject Users
PeopleSoft• General Ledger• Other Financials
Labor/Expense Costs
Credit/Debit Report
Guardian IT Chargeback Process
Past Period Cost Adjustments
• PM – data always changing; FM – need to lock data down to become financial system of record
• Financial Manager provides for adjustments for past periods but difficult to identify - scenario...
• EcoSys created a custom solution for Guardian for Financial Manager which addresses this
• Provides detailed report about differences in costs and units between minor periods
• Input results into adjustment screen – $1MM per quarter have been correctly charged back
Past Period Cost Adjustments
Financial Reporting & Charting
• Detailed and Flexible Reporting tool built into Financial Manager
• Companion Charting Tool provides key visual depictions of data
Financial Reporting & Charting
Financial Reporting & Charting
Financial Reporting & Charting
• Matthew Friedman – Ecosys Management• www.ecosysmgmt.com• Phone: 914.304.5022• Email: [email protected]
• Jeffrey Finkiel – Guardian Life Insurance• www.guardianlife.com• Phone: 212.598.7109• Email: [email protected]
Contact Information
Questions?