How to successfully separate and set-up HFM for a new company
Ray Chontos Kathleen Marschak
Finit Adient
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Leader in Oracle Hyperion SolutionsLeader in Oracle Hyperion SolutionsLeader in Oracle Hyperion SolutionsLeader in Oracle Hyperion Solutions
� Ray Chontos ([email protected])
● 19+ years of Hyperion Experience
● HFM, FDM, FCM, Financial Reporting, Smart View, DRM, Hyperion Enterprise
● Project Manager and HFM Design Architect
� Kathleen Marschak ([email protected])
● 14+ years of Hyperion Experience
● HFM Products, Hyperion Enterprise, COE Operations, Release Management & Compliance
● Adient HFM COE Manager
About the Presenters
� Review the process and methods to support the dismantling
of one of the largest HFM environments in the world
● Untangle Johnson Controls Environment / HFM Apps
● Creation of Adient HFM● Infrastructure
● Application Design/Build
● Data Reconciliation Approach/Challenges
● Integration
● Parallels /Go-Live
● Adaptation of business requirements to ‘Become Adient’
● Adient Today
� Questions
Agenda
� Johnson Controls (JCI), a Global multi-industrial company, had core business in the automotive, building and energy storage industries
● Founded in 1885
● 170,000 Employees
● 150+ Countries
● $37B in Sales
JCI / Adient History
Delivering technologies and
services that increase efficiency and
lower operational and energy costs
in buildings..
The world’s largest manufacturer of
automotive batteries, powering
nearly every type of vehicle.
A global leader in automotive
seating, overhead systems, floor
consoles, door panels and
instrument panels.
Automotive Experience Power SolutionsBuilding
Efficiency
� In July of 2015, JCI Executive Leadership announced that the Automotive BU was not a future core business, and the Business Unit was going to be spun-off to a stand alone company
Adient Birth
.
A global leader in automotive
seating, overhead systems, floor
consoles, door panels and
instrument panels.
Automotive Experience• 75,000 Employees• 33 Countries • $16B in Sales
� One of the largest HFM environments in the world
● Five Integrated & Two Stand-alone Applications
● 3,600 Users World-wide
● 60,000 + Unique entities
● 16 Entity structures
● 6,300 + Accounts
● 40 + Scenarios
● 200 + G/Ls loaded / FDM locations
● 150 changes per month in average releases
● 60 + Servers in the infrastructure
JCI’s Total HFM Footprint 2015
� One of the largest HFM applications in the world
● AEHFM – Automotive Experience HFM
● 1,600 Users from 33 countries
● 20,000 + Unique entities
● 4 Entity structures
● 2,500 + Accounts
● 10 + Scenarios
● 60 + G/Ls loaded / FDM locations
● 40 + changes per month in average releases
� FDM, FR, DRM, EPM Maestro
JCI’s Automotive HFM Application
� Project timeline
December 2015 – December 2016
� Separation project could not impact current JCI Operations and Tyco Merger
� Approach was to “Clone and Go” existing JCI Automotive app to support following key dates:
● Operational day 1 (July 1st, 2016) – Adient operating separately from JCI; Adient leadership and employees identified
● Legal day 1 (October 31st, 2016) – Company is legally separated and begins trading on NYSE
Separation Considerations & Timeline
Automotive Separation Impact � HFM System:
● A new ‘Adient HFM’ to be designed and built
● JCI’s AEHFM application to be retired
� HFM Users/Licenses:● Adient HFM users had to be identified and licenses distributed according to account for
the creation of central functions (Tax, Treasury, Consolidation etc.) which had never been part of the Automotive Business Unit before
� HFM COE Team:● JCI HFM CoE employees had to join the Adient team, resulting in a re-alignment of JCI
CoE
● Adient employees had to support JCI as needed through separation AND be invested in the separation project
� HFM Process & Procedures:● SOX policies and operational procedure had to be adapted:
● Interim Period (July – November): project was audited prior to separation
● Post Go-Live: Adient HFM was audited one month post go-live
Established Project Team Towers
Role
APPLICATION
-Adient App design/build/test
-Historical data conversion
-Performance /UAT testing
-Parallel planning and execution
-Legal Entity Separation HFM Changes
-AE App preparation for separation
-Account Reconciliation (ARM) separation
- JCI AE HFM/FDM application JCI RemainCo
- JCI AE HFM/FDM retirement
PLATFORM
-Infrastructure design & hardware procurement requirements
- Software installation
- System Testing
- Load Testing
- DR/Back-up Plan/Test- Load
INTEGRATION
-Integration Inventory, approach & disposition (Adient vs JCI RemainCo)
-Inbound (SAP Genesis, Non Genesis)
- FDM App design /build/test (HFM/ARM)
-Outbound (BPC, BBP, Tax)
-Integration Testing
SME
Alignment
&Support
Adient and Finit Carve Out Leads
Adient and Finit Application Leads
Adient and Finit Platform Leads
Adient and Finit Integration Leads
Team
Members
PROCESS/TOOLS
Adient and Finit Process Leads
Adient Steering Committee
JCI HFM CoE
Director
Matched Pairs
Throughout
JCI AE Carve Out Adient STAND-UP
Adient and Finit Program Director
- Internal Controls/Audit
- End User Support (Remedy/Portal)
-User Provisioning(ITARIS)
- Change Mgmt/ Governance (Sharepoint)
-Communication/ Portal
FINIT Partner
JCI/Adient Key Resources / Subject Matter Experts
Refocused Project Team Towers
Adient and Finit Tower Leads
JCI/Adient Key Resources / Subject Matter Experts
SIT/UAT
- UAT Scope- Application
Readiness- UAT Task
Plan- SIT- Connectivity
Testing- Tracking/Issu
e Resolution
Parallel
- Parallel Scope and Approach
- Parallel Communication Support
- Parallel Support- Status, Issue
and Resolution Tracking
- Execute CoEParallel
- Parallel Cutover Activities
Cutover/
Hyper-care
- Cutover checklist- Cutover
communications- Full user review
and sign-off for Adient
- Turn off integrations to JCI
- ARM Historical Data Solution
- Adient go-live support
- Adient CoE tools and process transition
COE Standup/
Ops
- Organization establishment
- Define Adient CoE Processes
- Set-up CoETools
- CoE Introduction and Communications with Adient
- CoE Go-Live- EPM Maestro
Joint Venture
- Copy Falcon to Adient environment
- Application Testing
- SIT / Integration- Connectivity
Testing- Cutover and Go-
Live Activities
� After HFM Applications were built and Platform fully tested
the team re-aligned on critical path activities
High-Level Approach & Timing
� New Data Center● Milwaukee, WI to Suwanee, GA
● 2 dedicated VMs for Admin tasks (Release activity)
� Equipment Order/Build● 40 Servers : PROD (21), QA (13), DEV (6) and 10 Servers for DR
● ~ 600 GB of Applications (400 GB for the historical application)
● Physical Servers for PROD, private network setup, all in 2 enclosures
● Environment Readiness Order : PROD > QA > DEV
� Testing● 2 rounds of testing, small/medium/large dataset, user concurrency of 100-400
● Components : SmartView, Data Grids, FR, FDM Loads, HFM Consolidations
� Network separation● 4 rounds of separation tests (firewall rules implemented for TSA applications)
Infrastructure Considerations
Infrastructure – Adient Current
� Server Stat collection
� CPUs, Disc Space, RAM, Memory
� Stress Testing – add users
� WebLogic Service Monitoring
� Deeper than the Services Control Panel
� Log File Consolidation
� Central location for details on network and overall performance monitoring
� Email Alerts
� CPU, Memory Disc Space
� Financial Reports Tracking
� Consolidation Performance Monitoring
� How has it changed?
Performance Monitoring
Finit Performance Monitoring Tool
� Real Time (and Historical) system-wide performance monitoring
� Proactive notification; stress testing
Tests/Response Time – Tests run with 750 users
Tests/Response Time – Tests with 1500 users
LOAD TEST ON PROD FROM MILWAUKEEFor the round 2 full-scale load test we looked to simulate the estimated number of concurrent users in the system. The user count we used is based on the concurrent users that might be logged in for that activity. With this test we are looking to ensure that the performance is consistent and the servers show no signs of stress. At the peak of the test we had 750 and 1500 users in the system performing their work. The activity for this test was users logging in, open app, open a small grid, generating a small SV, and running small consol. The two charts highlight the fact that the response times did degrade as the number of users in the system increased, but the response time showed was a linear degradation:
CPU usage for the 2 HFM app servers
Performance Testing Results
� Major mile stone achieved with the amount of performance testing with notable results
Finit Performance Rules Profiling
● Program that analyzes an HFM Rules file and inserts timers.
● Results show rule execution timings by Sub Routine, Entity, Value, Period, and Scenario
● Profiler reveals the processing cost of each sub routine in your rules file, and pinpoints where to spend time on rules cleanup.
Finit Performance Rules Profiling
Shows how long each rules takes to process
Application Design & Build
New ADHFM App =
AEHFM Shell
New Corp Entities
Corp Accounts
Segment changes
Legal Entity Updates
New CTHFM App =
JCHFM Shell
Segment changes
BU COA
JCI, BE, PS Entities
JCI, BE, PS Accounts
JCI, BE, PS Segments
Data
Design Requirements:
• Central reporting entities had to be split from JCI corporate application• AE Legal entities had to be classified as ‘Share’ or ‘Asset’ sales and set-up in Adient • Corporate accounts and Adient Segments identified to support external reporting
Challenges:
• Creation and tie-out FY 2017 beginning balances with no consolidated source system to tie-back to
• Provide platform for FY16 year-over-year comparison including JCI entities that no longer exist in Adient per LES
FY2016
Historica
l
ADHIST
Recon
Recon
Through Review of Key Design Items
ID Key Decision Alternatives Considerations / Implications Recommendation and Decision
KD-001 Legacy JCI Entities 1. Delete “TOT” entities
2. Keep “TOT” entities
•Keeping TOT entities will allow for easier
reporting between Adient HFM and Historical
copy of AEHFM for FY17.
•Keeping TOT entities may have slight impact
to Adient HFM performance/consolidations.
Team Recommendation & Rationale:
Analysis performed showed minimal impact to
consolidations. The benefit of easier reporting
between the two HFM applications outweighs
the minimal performance impact.
Decision Taken:Keep TOT Entities
KD-002 Delete GCOA from
Adient HFM
1. Delete BUAccount
hierarchy and only
keep GCOA
2. Keep both GCOA and
BUAccount
hierarchies in Adient
HFM
•Each account hierarchy was designed for
different reporting reasons.
•BUAccount
•Has detail to support manufacturing
reporting in COS and SGA.
•Has distinct rollups to separate Admin
vs Engineering expenses.
•GCOA
•Designed to support external
reporting with distinct rollup of
accounts.
•BUAccount and GCOA tie at higher levels
(Seginc, Sales, COS, SGA for example).
•Having both account rollups has no impact to
HFM consolidation performance.
Team Recommendation & Rationale:
Both account hierarchies are needed to support
management and external reporting the way
they are currently designed.
Decision Taken:Keep Both GCOA and BUAccount CoA
Hierarchies in Adient HFM.
Corporatizing Adient HFM
Functional Area Description of Change
Security• Add security to separate access from Adient
Operations, Adient Corporate and Adient Total
Corporate Entities• Add entity hierarchy to support Corporate functions
•Examples: Tax, Treasury, HR, IT, Finance, Legal
Corporate Accounts
• Add additional Accounts to support Corporate/External reporting
•Examples•Goodwill Impairment, Medical Clearing, Savings Investment Plan, Common Stock External, Tax Receivables, Deferred Compensation
Corporate Allocations
• Allocate Corporate functions to External Segments
ICP Changes• Non-Adient IC partners will be removed from Adient
HFM (JCI RemainCo, PS, BE, Corp)
Beginning Balance & Data Recon
Beginning Balance Requirements:• FY16 Sep YTD to naturally populate FY2017 Adient opening balance sheet
� Parallel data must be fully validated; required finance sign-off� Adjustment entries done using outside consulting system (KART) had to be
reflected in Adient HFM � Finance moved Retained Earning to Additional Paid in Capital (APIC) as
required• October 2017 had to be accurate in ADHFM to support Quarterly filingsData Reconciliation Approach:• Process was to tie back to source systems for legal entities/profit centers
• Many to one profit centers had to be accounted • Asset sale entities had to be accounted for where not all the balances moved
Data Recon Challenges
� Spin-off was based on Asset and Share Sales of Legal Entities� Adient didn’t receive everything it once had
� There was no “Total” to tie back to
� Data recon highlighted additional transactions between Adient and JCI
� Approximately 50 Entities were added back to Adient as result of data recon
� Entries needed to complete the sale/purchase
� 48 ERPs, 95 FDM Locations
� 198 Auto-loading entities (flat files bypassing FDM mapping)
� Network changes
� Source ERP database moves and domain changes
� Processes to support 2 environments
● Had to send data to both JCI and Adient until legal split final
Integration Overview
Integration Flow &Timeline
July – Oct:
Parallel Month-
Ends
Close Books in Both Adient & JCI
Integration Testing Round 1
- IT Personnel- Only ERPs w/ Auto-
Transfer or Auto-Load- Technical and Connectivity
Tests
Integration Testing Round 2
- BU/Local Finance Teams
- All ERPs / Sources (including manual loaders)
- Full End-to-End: Extract, Load & Validate Data Mappings
“Final” Updates: Adient & JCI HFM & FDM
Co-
Existence
model to
support
data
integration
between
JCI and
Adient
Critical Path
Key Business Readiness Gates
Project Team Readiness Gates
� Critical Path
● Parallel data is “real” –will be used at go-live
● Go/No-Go not an option, the legal separation was happening
● Application changes to support growing requirements
Parallel Success Criteria
� HFM Team had to support 4 parallel closes between July 1 (Operational Day 1) and October 31 (Legal Day 1)
Parallels
• AE BU had to close “as-is” with current processes/HFM systems through October FY17
• Adient began parallel closes on Day 8-12 for July – October month ends
Communication Strategy
Purpose ContentStakeholder
(Audience)
Delivery
Method
Schedule/Timin
gDeveloper Owner
Steering Committee
Make decisions
Escalate issues/risks
Share program status
Status scorecard
Key decisions
Change Impacts
Issue escalations
SME requirements
Adient Finance
Leadership
HFM program team
Meeting Once a month Kathleen
HFM program team
& select Finance
team members
Cyclone IT
HFM Program Status
Review IT status for program pillars
Escalate issues/risks
Information sharing
Pillar scorecards
Topical material
IT HFM Program
TeamMeeting Twice a week Pillar leads Sudhir Nambiar
AE Ops Parallel Kickoff
Meeting
Provide guidance and timing on
upcoming UAT / Parallel
Parallel Overview to AE
finance leaders Finance Leaders Meeting May 23rd Todd Todd
Adient HFM
Program Overview
General awareness
Expectation Setting
Drive engagement
Expectations and Timing
of Parallel Close activities
All Adient HFM
usersEmail June 30th Todd/Greg Mark Skonieczny
SIT #2 Testing OverviewInform & engage data loaders for
Integration Round #2 testing
Expectations and Timing
of SIT#2 testing Data Loaders E-Mail July 1st Chris Todd / Manuel
Parallel Testing AE Ops /
BBP
Provide timing, expectations and
success criteria of Parallel
Detail Task list and timing
of completion.
All HFM Users -
General HFM
Month end User -
Task List
BBP Users
E-mail July 22ndChris/Ray&
ToddTodd
Parallel Testing Corp HQ /
Consolidations/Tax
Provide timing, expectations and
success criteria of Parallel
Detail Task list and timing
of completion.
All Corp Adient
Users/Consolidatio
n team and Tax
E-mail July 22ndChris/Ray &
ManuelManuel/Greg
Parallel Report Out
Report of issues, process changes
and lessons learned to support the
next parallel.
Parallel Report Card
All Corp Adient
Users/Consolidatio
n team and Tax
E-mail After each
parallel
Robert/Tod
dTodd/Greg
Go-live
Cutover/Transition
Notify users of system downtime
and activities that are leading up to
final cut-over and ADHFM system
availability. Select key areas to test
prior to system availability for all
users.
Adient HFM COE portal
presence introduction. All HFM Users
E-mail / Steering
CommitteeNovember 11th
Kathleen /
AmitKathleen
Process Model to Support Adient
� Adient’s Executive leadership required the following changes prior to go-live:
● CoA updates and new management hierarchy ● Separate QA application developed and built in parallel
● New reporting changes were released prior to last parallel Month-End Close
● Standard Smart View reporting package based on new CoA and Management reporting structure
‘Becoming Adient’ Reporting Requirements
Adient Today
� Dashboard Reporting
● Adient has implemented CXO Cockpit to meet Executive business requirement of creating a standardized reporting deck and mobile dashboards
● Project was executed in January with positive feedback; initial user pilot was higher-level leadership
● CXO Tool has been extended to additional 200 users based on successful pilot
Adient Today
� Local GAAP Repository / German Consolidation
● Adient HFM currently stores only US GAAP data
● Project allowed the load local statutory balances into HFM for all Legal Entities
● Benefits● Improves efficiency; allows a consolidated tax return for
Germany (30+ legal entities)
● Centralizes data into HFM instead of multiple ERP’s
● Allows easy comparison to US GAAP data
● Application went live in September support FY2016 and FY2017 reporting
Adient Today
� Futuris acquisition
● Completed in September 2017
● Integrated 15 operational facilities into Adient HFM reporting
● Data loaded from Futuris HFM application
● Long term vision is to add to Adient’s G/L system and load directly to Adient HFM and decommission FuturisHFM
Lessons Learned / Success Factors
� Business Partnership● Strategic alignment with key IT and senior Finance Leadership
● Standard cadence of meetings and status reporting
● Effective Steering Committee participation which provided key support and fostered quick decision making
� Exceptional change management
� Finit consulting partners had previous exposure to JCI HFM footprint and agile attitude
� Excellent JCI/Adient Team
Questions and Answers
Ray Chontos
Kathleen Marschak
www.finit.com
