Best Practices In Implementing Cash Management Operations

Transcription

Best Practices in ImplementingCash Management OperationsMs. Judy BouchardBanking DirectorConocoPhillipsMr. Kevin L. VogelManagerCash Management,Banking and CreditConocoPhillipsMr. Chris McFarlandExecutive DirectorJ.P. Morgan

Drilling into Cash Management Operations1

Today’s Agenda Learning from the ConocoPhillips story– Where we came from – Where we had to go – How we did it – What we accomplished – What’s next – What about you 2

Where we came from 3

ConocoPhillips Company1 1 1700 Bank Accounts4

Global Treasury StructureTreasury Centers– Houston (Corporate)– London Responsibilities– Bank AccountAdministration– Cash Positioning– Investments– Borrowings– FX– Letters of Credit5Shared Service Centers– Americas - Oklahoma– Europe – Norway Responsibilities– Payments– Receipts– ReconciliationsAsia Pacific (6 locations)– Treasury support providedby London– Transactional processingmanaged locally

Our Foundation: A Best Practice-BasedApproach6PolicyToolsGlobal BankingDelegation of AuthorityGlobal Bank AdministrationRole HandbookPay on Behalf StructureKnowledge SharingStandardsCash & Banking Network ofExcellenceProcess Survey ResultsPayment Tool-KitGlobal SAPHost-to-Host PaymentsElectronic Bank StatementsAccount Rationalization

Where we had to go 7

Companywide Transformation1 210-Month Timeframe

A Delicate Operation: Separating Treasury9

Treasury and Cash Management Two separate Treasury Services and CashManagement departments Perform business-as-usual activities to supportongoing business requirements Set the stage for revitalizing and maximizingefficiencies of Treasury operations Day One – all payments processed successfully andall receipts posted appropriately10

How we did it 11

A Roadmap to Success Company architecture and teams Project management and planning Critical functionality Transaction activities Bank account administration Personnel12

Company ArchitectureAn Integrated ApproachSteering CommitteeCEO and Executive ManagementEach team to have sub-teams13CommercialCompensation & BenefitsFinancial StructuringSystemsShared ServicesTransition teamsExecutive Transition LeadIRS and SEC FilingConocoPhillipsAdditional Resources: Process CommunicationsWorkforce PlanningOutside Legal & TaxAssistance

Global Project Team vices(SSC)14

Project Governance TeamTreasury Team /Business OwnerSteering CommitteeJ.P. Morgan representativeConocoPhillips representativeAccountManagerShared ServicesITIT15Treasury SalesManagerConocoPhillipsBank ProjectProject ManagerManagerClient Services& axDocumentation& Legal

Teamwork in Action16

Project Management and Planning Dedicated project managers Project charter and statement-of-work Timeline requirements Communication strategy– Weekly meetings with internal and external partners– Management reporting and oversight17

Best Practices - Project Charter andStatement of WorkProject Charter– Introduction and Purpose– Project Summary Description Background Stakeholders/Project Team Members Scope Project Management Document Control18

Best Practices - Project Charter and SOWStatement of Work (SOW)– Product details– Client Specifics– Testing plan– Production and Post Production19

Critical Functionality ReplicatedA Best Practice-Based ApproachCollectionsPayments Wholesale Lockbox Network Integrated Host-to-Host Single File Payment Consolidated Receivables Solution Web Platform– Wholesale Lockbox remittance details, Wire,ACH and images viewed in a single solution Data transmission inclusive of all paymenttypes for integration to back office AccountsReceivable Image transmission for attachment to journalvouchers and deposit masters in ERP systemsSolutions Wire Transfer US and Global ACH Controlled Disbursement Checks Commercial Card for Purchasing and T&Epayments Stored Value Cards for Disaster Recovery andBusiness ContinuityAccount Structure & LiquidityTechnology Global Investment Guidelines Host to host technology for every aspect of Pooling structure for USD in London ZBA and Pay on Behalf of Accountspayments and reporting requirements AS2-based connectivity EDI ANSI X12 and BAI2-based formatting SAP Treasury21

Transaction Activities Created payment files inventory Designed and established SAP configuration Segregated and analyzed transactions by line ofbusiness Tested and verified data and reconciliationmanagement Executed customer change management22

Bank Account Administration Bank Account Management Documentation Legal23

Personnel Talent Management Staffing Onboarding Training Immediate Utilization Stress Management Recognition24

What we accomplished 25

Treasury and Banking On May 1, 2012 all payments and receipts processedsuccessfully for both companies Treasury and Treasury Services staffs were separated Bank accounts were separated and operational forboth companies Each company set to achieve strategic goals26

Treasury and Banking Initiative instrumental in helping treasury gain moreaccurate forecasts, which allows more effectiveliquidity management BAU activities for both organizations withoutinterruption New staffers were hired, trained and instilled withcorporate culture throughout course of initiative27

And Then We Raised a Glass 28

What’s next 29

Opportunities for Continued Success 30Global account structureCheck to ACHRemote deposit and remittance captureRegional treasury center expansionISO 20022 XMLSWIFT for CorporateseBAMCheck print outsourcingVirtual card payment processing

What about you 31

Best Practices to Consider Establish strong foundation of best practices Project management discipline Tools Personnel32

We’d Like To Hear Your Thoughts33

Contact InformationJudy ps.com(281) 293-3206Kevin m(281) 293-3045Chris McFarlandJ.P. MorganChris.McFarland@jpmchase.com(713) 216-785034

Process Survey Results Payment Tool-Kit Standards Global SAP Host-to-Host Payments Electronic Bank Statements Account Rationalization . Where we had to go 7 . Companywide Transformation 1 2 10-Month Timeframe A Delicate Operation: Separating Treasury 9 . Treasury and Cash Management Two separate Treasury Services and Cash Management departments Perform business-as-usual