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How to successfully separate and set-up HFM for a new company Ray Chontos Kathleen Marschak Finit Adient

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  • How to successfully separate and set-up HFM for a new company

    Ray Chontos Kathleen Marschak

    Finit Adient

  • Finit CultureFinit CultureFinit CultureFinit Culture

    NoNoNoNo debt or external debt or external debt or external debt or external

    ownership means ownership means ownership means ownership means

    completecompletecompletecomplete alignment & alignment & alignment & alignment &

    focus on our client’s focus on our client’s focus on our client’s focus on our client’s

    needs and visionneeds and visionneeds and visionneeds and vision

    We bring a quality of We bring a quality of We bring a quality of We bring a quality of

    craftsmanship to our craftsmanship to our craftsmanship to our craftsmanship to our

    designs and execution designs and execution designs and execution designs and execution

    that lead to solutionsthat lead to solutionsthat lead to solutionsthat lead to solutions

    that are functional, that are functional, that are functional, that are functional,

    usable and efficientusable and efficientusable and efficientusable and efficient

    We actively seek We actively seek We actively seek We actively seek

    feedback and invest in feedback and invest in feedback and invest in feedback and invest in

    training and training and training and training and

    professional growth in professional growth in professional growth in professional growth in

    our consultantsour consultantsour consultantsour consultants

    We use We use We use We use

    employees, not employees, not employees, not employees, not

    contractors. contractors. contractors. contractors.


    based on CLIENT based on CLIENT based on CLIENT based on CLIENT










  • 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


  • � 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


  • � 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


    ● 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



    -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


    -Infrastructure design & hardware procurement requirements

    - Software installation

    - System Testing

    - Load Testing

    - DR/Back-up Plan/Test- Load


    -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




    Adient and Finit Carve Out Leads

    Adient and Finit Application Leads

    Adient and Finit Platform Leads

    Adient and Finit Integration Leads




    Adient and Finit Process Leads

    Adient Steering Committee



    Matched Pairs


    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


    - UAT Scope- Application

    Readiness- UAT Task

    Plan- SIT- Connectivity

    Testing- Tracking/Issu

    e Resolution


    - Parallel Scope and Approach

    - Parallel Communication Support

    - Parallel Support- Status, Issue

    and Resolution Tracking

    - Execute CoEParallel

    - Parallel Cutover Activities



    - 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/


    - 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


    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


    • 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







  • 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


    hierarchies in Adient


    •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


    •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-


    Close Books in Both Adient & JCI

    Integration Testing Round 1

    - IT Personnel- Only ERPs w/ Auto-

    Transfer or Auto-Load- Technical and Connectivity


    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



    model to





    JCI and


  • 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)


    • 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





    gDeveloper Owner

    Steering Committee

    Make decisions

    Escalate issues/risks

    Share program status

    Status scorecard

    Key decisions

    Change Impacts

    Issue escalations

    SME requirements

    Adient Finance


    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


    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 /


    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&


    Parallel Testing Corp HQ /


    Provide timing, expectations and

    success criteria of Parallel

    Detail Task list and timing

    of completion.

    All Corp Adient


    n team and Tax

    E-mail July 22ndChris/Ray &


    Parallel Report Out

    Report of issues, process changes

    and lessons learned to support the

    next parallel.

    Parallel Report Card

    All Corp Adient


    n team and Tax

    E-mail After each






    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


    Adient HFM COE portal

    presence introduction. All HFM Users

    E-mail / Steering

    CommitteeNovember 11th

    Kathleen /


  • 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

    [email protected]

    Kathleen Marschak

    [email protected]