Kristian Vanderwaeren - Arteveldehogeschool

The role of controlling in
business management
performance cycle of
Business Unit T&A within
WKB
Kristian Vanderwaeren
BU M&S director
March 20, 2014
Agenda

Presentation of Wolters Kluwer

Presentation of Wolters Kluwer Belgium – BU & Finance

Management performance at Wolter Kluwer Belgium

The importance of Finance for the Business Unit in this

Conclusions
2
Wolters Kluwer Worldwide
WK: information & software company – 3.4 billion € revenues – 19.900 employees – AEX – Euronext 100
Wolters Kluwer Tax &
Accounting Belgium
3
Kluwer Belgium NV
When you have to be right !
By providing you information, tools and solutions which enables you to take
better decisions and highly increase your productivity.
BU Legal & Public
BU Tax &
Accounting
Kluwer Formations
BU Companies
Kluwer Advertising
Kluwer Publishing
Kluwer Software
Publishing: 60 000 clients, 3 000 experts, more than 1 500 titels a year
Software: 20 000 companies, 58 % of all annual accounts deposits, nearly all accountants use our software, + presence in banking
Opleidingen: 18 000 participants, 800 lecturers
4
Our customers
Legal professionals
• Lawyers
• Notaries
Public authorities
• National and local
administrations
• Healthcare
• Education
• Nonprofit
• Unions
Financial professionals
• Tax advisors
• Accountants
• Financial institutions
• Insurance companies
Companies
• General management
• Finance
• HR
• S&E
• Sales and marketing
• Company lawyers
5
Solutions based on needs and value chain of our clients!
Customer needs and value chain
Solutions
Events, community interaction
Inspiration
Deepen
knowledge
Stay updated
Have daily info at hand
Run my job / my business
Get and stay qualified
Books, seminars, training …
Magazines, newsletters, …
Online databases, information
services…
Software, workflow, marketing…
Training, certification, …
6
Example : the accountant; we cover the end-to-end needs of
the accountant, his client and his partners: win-win
Accounting
Collaboration Tools
Cloud/web solutions
Collaboration portals
Graphical reporting
SME Clients
ERP
CRM
HRM
Tax
• Fiscalc, Superfisc
Audit
• Audit Automation
Practice Mgmt.
Tax Advisors
Accounting
Tax
Payroll
Audit
Practice Mgmt.
Research
Research
Partners
Authorities
Experts
Suppliers
• Kluwer Account (Expert M Plus,
topACCOUNT, Vero ), EVA
• ACCON Plus
• Kluwer Office, Winpris
• Invoice scanning
• monKEY.be
ERP
• Kluwer Admin (Briljant,
Enterprise, VERO-admin)
• Sector offerings
CRM
• Kluwer Office
HRM
Collab. Tools
• Kluwer EasyWeb
• Kluwer office
7
Agenda

Presentation of Wolters Kluwer

Presentation of Wolters Kluwer Belgium – BU & LSS Finance

Management performance at Wolter Kluwer Belgium

The importance of Finance for the Business Unit in this

Conclusions
8
Wolters Kluwer: positioning of divisions & units
Next slide
Per country: Local Shared Services
Next slide
9
Wolters Kluwer Local Shared Services
Finance & Accounting Services 2013
Henri Van Engelen
RMD Tax &
Accounting Europe
Hans Suijkerbuijk
CEO Wolters
Kluwer Belgium
Willy Horseele
Chief Financial
officer
Bianca Mattheus
T&A Controller
Tineke Heylen
Controller
Iris Struelens
Katleen Bogaerts
Management
Assistant
HRBP
Mireille Punt
Finance Manager
Guy Muylaert
Accounting &
Reporting Mgr
Martine Mathys
Reporting Manager
Tine Monbaliu
Royalties Administr.
Manager
Denise Heylen
Order Intake &
Fulfillment Mgr
Michel Van Emmerick
Accounting
Manager/Purchasing
An Verschooten
Lieve De Taeye
Leentje Wouters
Legal Advice &
Support
Alain Mousset
Internal Auditor
Magda Carpentier
Johan Diedens
Claudine Dedonder
Subscription Mgt
& Account Adm.
Manager
Administrateurs
Claudio Graziano
Account Receivables Mgr
10
Wolters Kluwer Tax & Accounting
BU Tax & Accounting 2013
Henri Van Engelen
RMD
Tax & Accounting
Europe
Hans Suijkerbuijk
CEO Wolters Kluwer
Belgium
Christine Moons
BU Dir Tax &
Accounting
Kristian Vanderwaeren
BU Director
Sales & Marketing
Anne Tosseyn
Heidi Thijs
Management
Assistant
Lars Van
Sweevelt Etnia
Program
Manager
Mark Caelen
Software
Solutions Manager
Paul Simons
(ex.)
Software
Development
Manager
Anne Tosseyn
Heidi Thijs
Management
Assistant
Miguel Lahousse
Services
Manager
Rik Dreesen
Back Office
Manager
Veronique Alias
Publishing Manager
Hilde Troosters
Publisher
Tax & Accounting
Folio
Nicole
Vandevijvere
Publisher
Tax & Accounting
Online
Vannessa
Giannoccari
Publisher
Insurance
& Banking
Michiel Van den
Keybus
Sales Manager
Publishing
Koen Everaet
Sales Manager
Software
Veronique Alias
Marketing
Manager
11
What is should not be…. It are "The Others"!
12
What it should be…
 It’s all about the team…
 …and finance plays in the BU team…
 …and therefore should be a team player…
 …but why?
http://www.youtube.com/watch?feature=player_detailpage&v=17rAxDB4Jw4
13
Agenda

Presentation of Wolters Kluwer

Presentation of Wolters Kluwer Belgium & LSS Finance

Business management cycle at Wolter Kluwer Belgium

The importance of Finance for the Business Unit

Conclusions
14
The Performance Management Model
What we want to be
Vision
Our game plan
Strategy
Strategic Focus Area
-Measures
(KPI’s)
-Targets
-M
-M
-T
-T
-Responsibilities -R
-R
-M
-M
-T
-R
-T
What we need
to do
-R
Strategic initiatives
Quaterly &
Monthly business
reviews
Operational plans, budgets and resources allocation
Team and individual performance measures and targets
15
The Management Control Process
Strategy Review
Programming
Evaluation & rewarding
managers
Budget Preparation
& approval
Reporting
Execution & Measurement
16
Strategy & management cycle
3 years time horizon
BDP
Financial
implications
Current state
Our markets
Challenges
&
opportunities
Vision
&
Strategy
Our
performance
Topline
Costs
Investments
Bottom line
Vision = what we want to become
Strategy = how to get there
Results
Topline
Costs
Investments
BudgetBottom line
Forecasting
reporting
Reviews (BRM, LE)
Actions
1st year
=
Budget
17
The timeline
Jan
the BDP
the Budget
the LE's
the BRM's
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
BDP Process
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
BDP Process
Budget Process
Budget Process
LE0
LE-1
LE-2
LE-3
brm01 brm02 brm03 brm04 brm05 brm06 brm07 brm08 brm09 brm10 brm11 brm12
• Yearly -> BDP: provides clarity on a 3-years strategic direction
• BDP = 3 years plan based on LE1 assumptions
• Yearly -> Budget: set clear objectives for the next year
• Budget = 1 year plan based on LE3 assumptions
• Quarterly -> Latest Estimate to headquarters
• Monthly -> business reviews in the country
• Monthly -> Mid-Month forecast to headquarters
18
Some advantages of model
19
Business Development Plan:
provides clarity on the mid term (3 years) strategic direction
and a financial basis for next year’s budget
3 years time horizon
Financial
implications
Current state
Our markets
Our
performance
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
20
Mental framework of BDP:
which are the business objectives and how to achieve them?
Segment dynamics
Segments
Products
Costs
growth
COS
Which product-market
combinations generate
maximum revenue and
growth ?
Non-COS
profit
Which cost structure
generates maximum
profitability ?
21
Mental frameworkfor the BDP
Which are the business objectives and how to
achieve them ?
Sources of growth:
•Reach (more customers/users)
•Value (more revenu per customer)
Segment attractiveness
•Size & Growth (# / €)
•(un)fulfilled needs
•Competitive dynamics
•Competitive advantages
Segment dynamics
Segments
Products
Actions for growth:
•Product development ((NPD, improvements)
•GTM (channels, sales, marketing)
•Loyalty, churn prevention,
preventio
•Pricing and business models (for reach / value)
Costs
growth
COS
Non-COS
Actions for profitability:
•Headcount and peco management
•COS management
•Operational excellence / productivity programs
profit
22
Components of the BDP
The current state of the business – Market view
Current state
Our markets
Our
performance
Financial implications
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
„
Where are we winning, where are we losing and why?
„
What is the growth of the different (micro)segments in your market?
„
Which exhibit attractive dynamics? Which ones are under pressure?
„
What are the most important customer trends and how do these
trends impact us?
„
Which are the competitive dynamics ?
„
What is our market position vis-à-vis competitors within these
segments? How is that changing?
„
How are cyclical businesses impacted by economic situation ?
„
How are technology developments affecting our market? What new
players are participating in our space?
23
Components of the BDP
The current state of the business – Our performance
Current state
Our markets
Our
performance
Financial implications
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
„
What has been the current performance of your business both in terms
of revenue and profit margin?
„
How have you executed against your top 3 to 5 prior-year priorities?
What has changed?
„
What are the key market dynamics affecting your business? How are
these dynamics changing with respect to the previous BDP?
„
How has the economic context affected your different businesses?
What businesses seem to be more insulated and which ones more
affected by the downturn in the economy?
„
What would be required to win against our most important
competitors?
24
Components of the BDP
Challenges and opportunities
Current state
Our markets
Our
performance
Financial implications
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
„What
are the key risks to our current and
future business?
„What
are the challenges that keep you/or will keep you awake at night?
„What
market segments appear to offer more attractive opportunities?
With which type of offering ?
„Where
are there opportunities to enhance your cost structure?
25
Components of the BDP
Vision and strategy
Current state
Our markets
Our
performance
Financial implications
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
„
What will your business look like in three years and beyond? What is the
path that you are charting for your business?
„
What are your top 3 to 5 priorities for your business?
„
What granular segments should we enter and which ones should we
consider to exit?
„
How will you leverage our global presence?
„
How are your products going to change to increase the value you deliver at
the point of use?
„
What organizational adjustments need to be made?
„
What are the key changes you will make stemming from the new strategy
and organization?
„
What are some of the portfolio adjustments you will make to support your
vision? (Investment in growth segments, Harvesting of parts of the portfolio, Acquisitions, Divestments)
26
Components of the BDP
Financial implications
Current state
Our markets
Our
performance
Financial implications
Challenges
&
opportunities
Vision
&
Strategy
Topline
Costs
Investments
Bottom line
„
What will be the evolution of the revenues ?
„
What will be the evolution of the ebita ?
„
Which are the changes compared to previous BDP ? Why do they occur ?
„
Which are the key assumptions behind the BDP related to churn, sales
intake, price increases and peco costs ?
„
What will be the evolution in the portfolio / media mix ?
„
Which are the main investments ?
„
What is the impact of cost saving programs ?
„
How do FTE’s, and peco evolve ? Which are the skills we need to
develop and which HR initiatives will take care of that ?
27
How is this presented in the boardroom ?
Examples from
BDP presentation
28
The
Budget
proces at
Wolters
Kluwer
From BDP to Budget
 BDP
provides clarity on a 3-years strategic direction

BDP is the financial basis of the budget

Updated LE3 assumptions are the base for the budget
LE1 assumptions
6 months later
LE3 assumptions
BDP : 3 years plan
Budget : 1 year plan
BDP = Mid Long Term approach
Budget = Short Term approach
Mission & Vision
Objectives - KPI’s - Targets
29
The
Budget
proces at
Wolters
Kluwer
Business Unit Budget Proces
Plan
GTM Plan
TOP 100
customers
Budget Targets
Top Line
BU
Strategy
NPD Plan
Production Plan
Resources
FTE’s
Costs Cost of
Sales Project
Budget
Bottom Line
30
The
Budget
proces at
Wolters
Kluwer
The Budget proces at Wolters Kluwer
WK
Corporate
L& R
Global
Operating
Divisions
T &A
WK Belgium
Businesss
Units
31
Budget
Components
P & L components
P&L Business unit
Mio €
Year
Revenue
40,3
Royalties
External costs
Timewriting
1,2
3,9
11,4
Cost Of Sales
16,5
Margin
23,9
Margin %
59,2%
M&S
1. Marketing and promotion costs
1,4
1,3
2. Sales costs / commissions
Primary
4. Professional third party services
5. Office expenses
6. Computer services
7. Services provided
8. Personnel costs
9. Indirect external personnel cost
10. Depreciation fixed assets
12. Miscellaneous expenditures
0,1
26,6
1,1
2,9
0,9
-0,2
19,1
1,7
0,8
0,2
13. Capitalized costs
14. Internal Direct Labor costs
-0,2
-11,0
EBITA
7,1
EBITA %
17,6%
TOP-Line
Revenue Budget
on product level
Cost Budget
Cost Center
FTE’s
Cost of sales
BOTTOM-Line
32
Budget
Components
Example : Revenue Drivers for Publishing
Wolters Kluwer Belgium: Revenue Key Figure Drivers
Revenue
Revenue Type
Invoice Type
Product Type
Subscriptions
Price
Pages
Subscription Product
# Subscriptions
Subscription Price
Module
# Licences
Licence Price
Subscription Product
# Subscriptions
Publication schedule
Time-based
Subscription
REVENUE
Page Price
Delivery Based
Pages to be invoiced
Unit Price
Module
Non-subscription
Product Issue
# Licences
# loose order items
Licence Price
Page Price
publication date
Pages to be invoiced
Unit Price
Advertising
Product Issue
 Portfolio
drivers:
churn
 sales intake
 migrations
 pruning

start portfolio
 price
 TMC renewals

33
Budget
Components
Budget: Data used
Level of detail used: Publishing BDP
PC Legal
BDP MF
JuranNew
JuranNew
JuranNew
JuranNew
JuranNew
JuranNew
JuranNew
JuranNew
JuranNew
Online
OldFormats
OldFormats
OldFormats
OldFormats
OldFormats
Classics
Classics
Classics
PC Legal
BDP MF
MF
Online
Online
CD-Rom
Info Pack
Loose Leafs
MF
Maintain
Maintain
Maintain
Maintain
Maintain
Online
OldFormats
OldFormats
OldFormats
OldFormats
Online
Online
CD-Rom
Info Pack
Loose Leafs
JuranOld
JuranOld
JuranOld
JuranOld
Maintain
Maintain
Maintain
Maintain
OldFormats
Classics
Classics
Classics
journ-Newsl
Books
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld

BDP MF
Migratie
Migratie
Migratie
Migratie
Migratie
Migratie
Migratie
Migratie
Migratie
Online
OldFormats
OldFormats
OldFormats
OldFormats
OldFormats
Classics
Classics
Classics
6.016
price
Volu other
CV+
271
RR
CrossS
GTM
egm
30
137
CV-
553
386
-331
105
137
137
-137
105
137
137
-137
690
523
MF
Online
Online
CD-Rom
Info Pack
Loose Leafs
journ-Newsl
Books
6.121
271
LE-2010
BRM03
price
Churn%
137
-467
-5,50%
#DIV/0!
#DIV/0!
-100,00%
#DIV/0!
-129,68%
#DIV/0!
#DIV/0!
#DIV/0!
-7,64%
CrossS
GTM
egm
CV-
Churn%
journ-Newsl
Books
JuranOld
JuranOld
JuranOld
JuranOld
JuranOld
PC Legal
LE-2010
BRM03
30
M+/282
M+/-
348
282
348
RR
695
1.882
31
85
52
78
52
73
2.577
1.677
930
2.607
5.183
116
75
42
117
233
131
52
49
101
232
4,5%
125
52
49
101
226
LE-2010
BRM03
price
5
5
5
-24
-124
#DIV/0!
#DIV/0!
#DIV/0!
-3,42%
-6,60%
-148
-46
-74
-120
-268
-5,75%
-2,73%
-7,99%
-4,61%
-5,17%
-23
-24
-23
-24
-23
RR
2
319
CrossS
GTM
egm
CV-
-6
4.781
5.103
231
231
82
82
82
82
-669
-675
61
61
5.164
3
3
233
2
2
83
2
2
83
-8
-8
-683
Churn%
#DIV/0!
-249,77%
0,00%
#DIV/0!
-14,00%
-13,23%
#DIV/0!
-13,39%
-13,39%
-13,24%
M+/-
564
CrossS
CV-
Churn%
M+/-
BDP12
-380
289
7.987
-517
-5,30%
#DIV/0!
#DIV/0!
-100,00%
#DIV/0!
-111,11%
#DIV/0!
#DIV/0!
#DIV/0!
-7,08%
CV-
Churn%
M+/-
BDP12
-29
-124
#DIV/0!
#DIV/0!
#DIV/0!
-3,87%
-6,60%
-3
-21
784
1.880
-152
-48
-75
-123
-275
-5,83%
-2,73%
-7,99%
-4,57%
-5,19%
-24
2.664
1.841
966
2.808
5.471
CV-
Churn%
M+/-
BDP12
85
85
-649
-649
-141
-141
3.929
3.929
2
2
87
-8
-8
-656
#DIV/0!
0,00%
0,00%
#DIV/0!
-14,50%
-14,50%
#DIV/0!
-13,39%
-13,39%
-14,49%
-141
54
54
3.983
RR
372
egm
28
GTM
164
123
137
137
-137
123
137
137
-137
701
509
7.298
1.177
323
28
164
137
137
289
price
RR
33
84
33
63
33
57
2.607
1.756
941
2.697
5.304
117
79
42
121
239
95
55
67
121
217
90
55
67
121
211
CrossS
egm
GTM
5
5
5
-24
price
BDP11
Volu other
CV+
RR
CrossS
egm
GTM
-319
-144
-144
250
-69
4.474
4.473
216
216
-144
-69
58
58
4.531
3
3
219
8.124
825
Volu other
CV+
737
1.870
Volu other
CV+
323
BDP11
-3
-21
Volu other
CV+
2
2
2
Based on LE1 and business drivers






—
7.175
Volu other
CV+
BDP is made on media format level:
—
price
BDP11
Sales intake
Churn
Migrations
Price
Volume
NPD
Per publishing unit / per cluster / per type (OL –classics –old formats)
34
Budget: Data used
Budget
Components
Level of detail used: Publishing
Budget 2010

Type of Revenue
Publishing Revenue Budget:
—
Revenue calculation by




—
Based on following drivers






—
—
Publishing Center - Product
Business Unit
Month
per Type of revenue
subscription starting position
sales intake
churn
migration plans
BU average price & price increase
production planning / volume of pages
Fully Bottom-Up Budget
The quality of the budget will drive the quality of the forecasting
35
Budget: Data used
Budget
Components
Budget Product templates
BP/SWB-LL
Productgegevens
Volgnummer
Editie/pg
Editie
Totaal pg
SI/S
D
IR/ID
D
O
TI
(=av)
Verkoopprijs
abo
Abo-gegevens
Prijsverhoging
WKB ex TMC
Verkoopprijs
CV Beginstand 2009
lor
Abo+
Abo+ migratie
AboAbo- migratie
Abo Transfer Evo
Eindstand 2009
Losse verkoop (aantallen)
Omzetberekening
WKB
Gemiddelde
korting
Abo-omzet
Losse
omzet
TMC
omzet
Advertentie-omzet
Totale omzet excl
Totale
adv omzet incl
adv
Totalen CV ex TMC
Beginstand
2009
CV+
CV
migratie+
CV Churn
CV migratieCV Transfer
Evo
Eindstand
2009
Evo
ex
TMC
1
2
#
#
#
SI9111
3
4
5
SI9108
906
718
906
718
7
#
130
2.616
2.734
569
1
1
-3
-4
567
545
12,38
%
0,74
0,78
755,66
782,11
0,74
755,66
782,11
0,74
755,66
0,74
755,66
2.616
2.616
2.616
2.616
2.595
582
1
-1
-5
566
540
12,38
%
-14
-7
546
12,38
%
1.447.723
1.483.407
1.412.063
5.232
13.670
-
- 1.510.185
2.616
1.480.791
1.412.063
2.616
76.577
2.616
2.616
36.627
-
-
1
12,38
%
Tota
al
Initial
s
md
l
3.880
13
0
0,74
755,66
755,66
2.616
755,66
2.616
0,74
755,66
3,50
0,78
782,11
2.616
2.734
2.616
1
1
-2
553
12,38
%
662
662
CV Actual
vglvrofmvr
CV Actual
(ter (ter
vgl of
modular)
2.734
5
18
-1
551
3
-47
-3
551
12,38
517.377%
12,38
%
5.232
1.428.466
1.449.396
18.314
20.930
662
1.457.794
662
1.457.794
2.61
6
5.232
2.616
1.446.780
-
5
12,38
%339.127
2.616
1.441.547
-
5.232
15
12,38
%
662
2.61
6
2.616
2.616
20.930
1
12,38
%
1.986
662
18.314
34.011
12
#
548
2.616
1.446.780
11
SI9110
subs evolution
554
546
4
1
2.616
0,74
-2
-5
329.527
519.364
2.616
2.616
47.799
1.488.640
7.849
10
#
Productinfo
8
553
12,38
%
326.878
264.340
2.648
10.071
329.527
519.364
9
#
952
952
0,74
0,74
0,78
755,66
8
IR9001/SI9109
1434
1304
4.010
Revenue
Calculation
CV
2.616
6
#
12,38
%
3.426
339.127
339.127
3.426
3.426
2.61
6
2.616
13.081
-
685
685
2.61
7
2.61
6
8.202
10.936
1.441.547
-
685
264.340
264.340
2.61
5
13.670
2.59
5
2.734
13.670
1.428.466
1.433.934
13.081
5.468
124.37
6
8,35%
1.425.732
-
8.202
-
Portfolio Evolution
36
Budget: Data used
Budget
Components
Result = KPI Budget Reports
 Revenue
REVENUE
One Off
ESV Serv
orders
Tenders new
Tenders 07
Jurisoft
DB TB
Advertising
Import
Copyrights
Totaal
 Sales
Sales Intake
One Off
ESV
Tenders
Jurisoft
CV+
CV M+
Advertising
Import
TMC Renewal
Totaal
1
296
160
70
2
287
160
12
3
337
160
75
5
429
6
441
14
50
2.964
3.849
291
49
4
391
320
12
30
23
48
3.819
3.894
320
91
71
100
14
45
2.051
3.933
361
65
12
200
23
68
4.250
3.945
574
54
15
98
194
3.783
174
49
24
47
1.185
3.821
247
53
4.839
5.835
7.788
8.948
7.069
9.567
7
180
8
261
9
561
10
555
11
469
12
627
74
1.283
3.952
38
76
70
1.933
3.960
148
65
78
150
23
82
2.396
4.001
316
61
12
150
24
85
2.216
4.053
401
84
71
200
23
85
3.020
4.111
368
56
5.602
6.438
7.667
7.579
8.402
29
300
20
107
4.874
4.136
313
107
300
10.812
B 2008
4.835
800
442
1.130
202
860
30.184
47.436
3.550
810
300
90.549
Intake: direct- indirect per type of intake
1
233
2
238
3
288
4
342
5
381
6
372
160
30
3
667
138
174
13
496
1.914
160
100
3
684
450
247
11
171
2.064
160
200
3
758
267
291
10
181
2.159
320
50
26
649
298
320
8
223
2.236
150
34
625
351
361
9
218
2.129
200
45
622
292
574
11
276
2.391
7
180
53
265
118
38
6
236
896
8
261
9
561
10
555
47
228
142
148
5
80
911
150
58
715
338
316
16
595
2.749
250
57
713
356
401
18
361
2.712
11
469
57
824
301
368
17
102
2.137
12
627
Year
4.508
59
626
203
313
10
209
2.046
800
1.130
445
7.377
3.255
3.550
135
3.148
24.347
DIRECT
One Off
ESV
Tenders
Jurisoft
CV+
CV M+
Advertising
Import
TMC Renewal
Totaal
1
64
2
78
3
92
4
126
5
160
6
139
30
3
367
104
174
100
3
402
174
247
200
3
437
152
291
50
26
386
179
320
150
34
363
203
361
200
45
347
172
574
496
1.238
171
1.176
181
1.357
223
1.310
218
1.490
276
1.753
7
52
8
82
9
152
10
170
53
150
70
38
47
123
73
148
150
58
419
204
316
250
57
421
219
401
236
600
80
553
595
1.895
361
1.878
11
129
12
168
Year
1.411
57
507
185
368
59
379
117
313
1.130
445
4.301
1.854
3.550
102
1.347
209
1.243
3.148
15.838
DIRECT
One Off
ESV
Tenders
Jurisoft
CV+
CV M+
Advertising
Import
TMC Renewal
Totaal
1
169
2
160
3
197
4
216
160
160
160
320
300
34
282
276
321
115
263
119
5
220
6
233
7
128
8
180
9
408
10
386
11
340
12
459
Year
3.097
262
149
275
120
115
48
104
69
296
134
293
137
316
116
247
87
3.076
1.401
800
13
11
10
8
9
11
6
5
16
18
17
10
135
677
889
803
926
640
638
297
358
855
833
790
803
8.509
 Portfolio Evolution
Start Year
CV Status
CV Evolution
CV+
CVCV M+
CV M-
77.683
1
2
3
4
5
6
7
8
9
10
11
12
77.410 77.363 77.308 77.386 77.456 77.186 76.862 76.601 76.647 76.788 77.005 76.814
-273
-47
-55
77
70
-270
-324
-261
47
140
217
-191
667
684
758
649
625
622
265
228
715
713
824
626
-973
-776
-892
-594
-623
-928
-596
-494
-689
-604
-626
-835
138
450
267
298
351
292
118
142
338
356
301
203
-106
-405
-188
-276
-283
-255
-112
-137
-317
-326
-281
-185
B 2008
76.814
-869
7.377
-8.629
3.255
-2.872
-11,1%
37
Budget: Data used
Components
Portfolio drivers
CHURN
-11,5%
-12,0%
y ear
-12,5%
2009
-12,6%
-13,0%
LE3-2010
-13,5%
Budget 2011
-13,5%
-14,0%
-14,0%
-14,5%
Runrate
LE3 vs 2009
-2% -16% 45% 32% 11%
B2011 vs LE2010
31% 46% 44% 22% 33%
Q1
Q2
Q3
Q4 year
Portfolio Intake
Intake Runrates
60%
46%
40%
45%
44%
33%
32%
31%
22%
20%
11%
0%
-20%
-2% Q1
-16%
Q
2
Q3
Q4
year
38
Components
Cost Budget drivers
P&L Business unit
Mio €
Year
Revenue
40,3
Royalties
External costs
Timewriting
Cost Of Sales
1,2
3,9
11,4
Margin
23,9
Margin %
59,2%
M&S
1. Marketing and promotion costs
1,4
1,3
2. Sales costs / commissions
Primary
4. Professional third party services
5. Office expenses
6. Computer services
7. Services provided
8. Personnel costs
9. Indirect external personnel cost
10. Depreciation fixed assets
12. Miscellaneous expenditures
13. Capitalized costs
14. Internal Direct Labor costs
0,1
26,6
1,1
2,9
0,9
-0,2
19,1
1,7
0,8
0,2
-0,2
-11,0
EBITA
7,1
EBITA %
17,6%
Total Cost
33,2
3,6%
11,8%
34,2%
N° 1 cost driver = FTE’s
16,5
N° 2 cost driver = COS Ext + Roy
4,3%
N° 3 cost driver = Office expenses
3,3%
8,7%
2,6%
-0,7%
57,6%
5,2%
2,6%
0,6%
-0,7%
-33,1%
N° 4 cost driver = Promo costs
39
After the
Budget
A Typical Planning & Control process :
40
Process
After the
Budget
WK Belgium Forecasting
 The
Forecasting Process
—
Monthly Business Review Meetings per Business Unit (BRM)
Monthly MDM presentations per Divisions to Division management
—
Quarterly Latest Estimates to Headquarters
—

BRM 3° week of month

Participants:
—
—

BU MT controlling included
CEO Division, CEO Country, CFO, Manager Budget & Control
Objectives:
—
—
—
review last month performance vs forecast: explained by drivers
discuss & challenge update assumptions:

sales pipeline, marketing planning

migration plans, volume & planning, NPD status
stimulate initiatives
41
Process
After the
Budget
WKB Revenue Forecasting Process
Budget
BRM 01
LE 0
BRM 02
BRM 03
LE I
BRM 04
BRM 05
BRM = Business Review Meeting
BRM 04:
= based on actuals month 03
-> forecast month 04 -> 12
BRM 06
LE II
...
42
Forecasting: Data used
After the
Budget
Monthly forecasts in BRM
Updated forecast vs previous forecast
Klop
Budget
Open
IC
E-learn
WKB Totaal
BRM 5
Open
IC
E-learn
WKB Totaal
1
103
284
2
410
245
3
Q1
1.067 1.579
339
868
4
614
194
5
729
301
6
500
464
Q2
1.843
959
7
73
64
8
94
37
9
419
519
Q3
586
620
-18
368
-23
633
-23
-64
1.383 2.384
-7
802
-28
1.002
-14
950
-49
2.753
-8
129
131
-33
905
1
68
281
2
307
273
3
Q1
1.064 1.439
421
975
4
611
229
5
647
313
6
472
430
Q2
1.730
972
7
73
40
8
94
63
9
419
450
Q4
2.961
1.463
75
Year
6.970
3.910
75
-41
-35
-62
-48
-145
1.164 1.847 1.286 1.221 4.354
-300
10.655
-2
346
-7
573
-14
-23
1.472 2.391
-11
828
-16
944
-21
881
-48
2.653
-8
105
157
-33
836
1
68
281
2
307
273
3
Q1
1.064 1.439
421
975
4
611
229
5
638
316
6
485
446
Q2
1.733
992
7
82
40
8
77
50
9
420
450
-2
346
-7
573
-14
-23
1.472 2.391
-11
828
-11
943
-19
912
-41
2.684
-8
114
127
-33
837
1
2
4
5
-9
3
6
13
16
Q2
4
19
7
9
8
-17
-13
9
1
Q3
-7
-13
5
-1
2
31
7
30
9
-30
1
-20
Q3
586
553
10
1.399
483
10
1.399
504
11
839
509
11
839
510
12
723
471
75
12
723
472
40
Q4
2.961
1.486
40
Year
6.716
3.986
40
-41
-35
-62
-48
-145
1.098 1.868 1.287 1.187 4.342
-258
10.484
2009
BRM 6
Open
IC
E-learn
WKB Totaal
vs BRM 5
Open
IC
E-learn
WKB Totaal
3
Q1
2009
delta
Q4
2.961
1.486
30
Year
6.712
3.992
30
Q1
Q2
1.679 1.798
889
982
Q4
2.628
1.045
50
Year
6.693
3.452
50
Q1
-14%
10%
Q2
-4%
1%
Q3
-1%
1%
Q4
13%
42%
-40%
Year
0%
16%
-40%
Year
20
540
-20
-41
-35
-62
-48
-145
1.078 1.868 1.287 1.177 4.332
-251
10.484
-64
-49
-20
-78
2.504 2.732 1.102 3.646
-211
9.984
-65%
-5%
-16%
-2%
108%
-2%
87%
19%
19%
5%
-40
500
Q3
579
540
10
1.399
504
10
11
839
510
11
12
723
472
30
12
Q4
-10
-10
-10
-10
Q3
586
536
Year
-4
6
-10
7
Example: Challenged by forecasting model -> Training
OPEN
Month:
1
2
3
4
5
6
67.622
306.983
1.064.212
610.687
637.520
485.396
7
8
9
10
11
12
271.483
189.321
29%
29%
17%
21%
32.040
-128.378
105.076
95.921
Totaal 6+ m
Totaal 12 m
COMMITTED
REVENUE % TO BE REALIS ED NOW
Best case
Worst case
FORECASTED GAP
0
Best case
0
Worst case
FORECASTED REV
67.622
Best case
67.622
Worst case
Budget
102.510
BRM 6
67.622
Not yet committed
0
82.210
100%
106%
47.816
56%
71%
164.597
37%
37%
22.813
21.675
511.130
36%
40%
3.172.419
4.438.975
367.164
190.673
396
396
535.652
166.479
3.172.419
3.172.419
3.422.751
3.172.023
-396
7.247.886
6.878.713
6.970.000
6.712.234
2.273.259
0
0
0
0
0
0
0
0
396
396
-195
-4.479
8.357
-9.329
306.983
306.983
1.064.212
1.064.212
610.687
610.687
637.520
637.520
485.396
485.396
81.805
77.521
85.357
67.671
442.812 1.430.962
441.674 1.270.543
944.429
935.274
1.090.103
913.612
409.829
306.983
0
0%
1.066.975
1.064.212
0
0%
614.366
610.687
0
0%
729.302
637.520
0
0%
499.769
485.000
-396
0%
72.879
82.000
-210
0%
93.730
77.000
29.184
38%
419.427 1.398.921
419.999 1.398.921
255.402
887.792
61%
63%
839.353
839.353
567.870
68%
722.939
722.939
533.618
74%
43
Forecasting: Data used
Cfr Churn forecast
Churn forecast based on FLM last year and received churn this
year CHURN 1 2 3 Q1 4 5 6 Q2 7 8 9 Q3 10 11 12 Q4 Yea
-1.47
2
1.47
2
1.47
2
-r
-3.92
7
3.83
7
3.81
27
0
Actuals DD 10 - - - - - - - - - - - 05 2010
29 22 39 90 19 13 19 52 17 38 64 11 51 23 122 196
7 1 0
9 6 4 3 3
9
1.74
6
Budg
et
BRM
04
BRM
05
Delt
a
-32
6
29
7
29
7
Status rapport
-32
0
22
1
22
1
-34
4
39
0
39
0
10/05/2010
-99
0
90
8
90
8
-27
9
23
6
19
40
6
Status data
-21
5
21
5
22
813
-39
4
42
9
42
9
-88
8
88
0
85
27
3
-16
5
16
5
16
5
-15
8
15
8
15
8
9/05/2010
-25
4
25
4
25
4
-57
7
57
7
57
7
Status data
-16
6
16
6
16
6
-24
0
24
0
24
0
-1.06
5
1.06
5
1.06
5
Q1
Q2 Q3 Q4
- 1.03 1.02 70 1.80
0
2
8 1
200
9Yea
-r
4.56
1
Q
1
12
2
delt
Q aQ
2 13
3
16
9 1
Q
4
32
9
200
9Yea
r751
10/04/2009
Portfolio Churn 2010
PC HR
PC S&E
PC Fox
PC FXI Comp
Sum:
1
-118.447
-138.686
-39.927
-8.221
-305.282
2
-60.231
-139.231
-22.007
-7.533
-229.003
3
-155.091
-180.069
-54.901
-5.422
-395.483
4
-72.776
-94.270
-21.542
-2.416
-191.005
5
-41.112
-83.868
-9.039
-1.935
-135.955
6
-135.982
-45.936
-11.002
-1.515
-194.435
7
-8.846
-1.183
-7.096
-272
-17.398
8
-11.688
-20.127
-5.958
-2.329
-40.102
9
-21.384
-30.652
-11.642
-1.208
-64.886
10
-23.086
-21.242
-6.742
-1.383
-52.452
11
-7.635
-5.150
-10.206
-493
-23.484
12
-51.207
-27.212
-43.256
-8.455
-130.129
Sum:
-707.485
-787.625
-243.319
-41.184
-1.779.614
1
-95.311
-147.365
-57.029
-12.818
-312.523
2
-88.109
-152.004
-34.530
-5.266
-279.909
3
-195.324
-214.117
-35.716
-4.192
-449.349
4
-117.292
-154.308
-43.627
-3.320
-318.547
5
-44.191
-95.089
-11.608
-2.027
-152.916
6
-110.537
-52.874
-37.393
-3.142
-203.946
7
-11.253
-40.589
-5.794
-289
-57.926
8
-6.548
-34.460
-6.593
-500
-48.102
9
-20.715
-22.565
-8.599
-1.942
-53.822
10
-18.123
-16.818
-5.052
-731
-40.723
11
-14.768
-11.684
-3.816
-624
-30.892
12
-71.646
-45.792
-69.388
-16.439
-203.265
Sum:
-793.818
-987.666
-319.145
-51.291
-2.151.919
6
-25.445
6.938
26.391
1.626
9.511
95,3%
7
2.407
39.406
-1.302
17
40.528
30,0%
8
-5.140
14.334
635
-1.829
8.000
83,4%
9
-669
-8.087
-3.043
735
-11.064
120,6%
10
-4.963
-4.424
-1.690
-653
-11.729
128,8%
Portfolio Churn 2009
PC HR
PC S&E
PC Fox
PC FXI Comp
total
delta tov 2009
Freezed
1
PC HR
PC S&E
PC Fox
PC FXI Comp
total
% 2009-2010
94,5%
Freezed
2
78,8%
Status data 2009
Freezed
Freezed
3
4
82,7%
75,1%
10/04/2009
5
3.080
11.221
2.569
92
16.962
88,9%
11
7.133
6.534
-6.391
131
7.408
76,0%
12
20.438
18.581
26.132
7.984
73.136
64,0%
Sum:
-3.158
84.503
43.302
8.103
132.750
82,7%
%09-10
89,1%
79,7%
76,2%
80,3%
This year committed churn vs same period last year = FLM
44
Centralised Business Reporting & Forecasting
Monthly BU & WKB dashboards
Sales Intake Reports
Revenue
Sales Intake
Portfolio
FTE’s
Costs
Information Flow
BRM
Monthly meetings
Review + Forecasting
of all BU KPI’s
(revenue, sales intake,
churn, FTE’s, cocts, ...)
Weekly portfolio reports & graphs
Churn
Sales Intake
Migrations
Evolution
Monthly follow-up DB products
Sales Intake Forecasts
LE Revenue forecasting Sheets
Forecasts Improvement
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Process
Continuous feedback to Business

Monthly feedback at WKB MT
—
on consolidated BRM figures and WKB outlook and issues
—
on results vs forecast (revenue + drivers)
Business reviews
Actuals
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Agenda

Presentation of Wolters Kluwer

Presentation of Wolters Kluwer Belgium - Finance

Management performance at Wolter Kluwer Belgium

Finance being crucial for the Business Unit…

Conclusions
47
Finance being crucial…
Data > Information > decision: “top controlling”
Data > information
Analysis > data >
information
Results >
management decisions
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Finance being crucial…
 It’s all about the team… and the matrix
 Controlling WITHIN the business unit
 Reporting to CFO
 Result: co-info decision & info model:
—
—
—
—
Sales rebates approval
Business cases
M&A
Forecasting “angel”
 http://www.dailymotion.com/video/xex9rz_gordon-gekko-greed-isgood-full-spe_shortfilms
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Conclusion: only an integration of Finance in BU
management makes us successfull…
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THANKS…
QUESTIONS?
Contactgegevens
 Kristian Vanderwaeren
BU Directeur M & S Tax & Accounting
Tel: 015 36 11 56
Gsm: 0476 50 06 67
[email protected]
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