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Enterprise Planning in Action: TheCrate & Barrel ApproachChristina MaytumScott Costello
“If you don’t knowwhere you’re goingyou’ll wind upsomewhere else” –Yogi Berra
Blue Stone InternationalServices Include:Key Performance Indicators/Chartof Accounts AnalysisDriver AnalysisProcess ImprovementInitiative AssessmentsProject & Process RoadmapInfrastructure& AdvisoryStrategyManagementServices Include:Long Range PlanningM&AStochastic AnalysisProfitability AnalysisTreasury/Capital ModelingTax ModelingImpairment TestingMaster DataManagementServices Include:ConsolidationsFinancial CloseExternal (XBRL) ReportingAccount ReconciliationsEnterprise MigrationsFinancialConsolidation& ReportingMDM&G Services Include:Financial & Analytical Master Data ManagementData Governance and Managed Change ProcessesPlanning& AnalyticsServices Include:Operational BudgetingRolling ForecastsWorkforce PlanningCapital PlanningProject PlanningProfitability & AnalyticsCash Flow ForecastingBI Services Include:Dynamic Reporting and AnalysisDash Boarding and KPI Presentation
What is Enterprise Planning?
BudgetOfficeManagers1 yr2 yrs3 yrsTime4 yrs5 yrs
Integrated ApproachAcquisition ofCompanyABCCOMMON ASSUMPTIONS AND DRIVERSWhat is Expected(Detailed Roadmap)What is Possible(Directional Guidance)Strategic Plan / Initiatives and Event-Driven Activities 500MUnsecuredS&PDowngradeNew ProductLaunchDividendPayoutsLong-Range Plan (Strategic Planning, Target Setting, Project Planning, Capital Structure, Tops-Down)Target SettingReforecast ofLong-Range PlanBudget (Annual Operating Plan,CAPEX Planning, Labor Planning)Budget SettingYTDActualsForecast (Assumptions,Performance Reviews)Rolling Forecast (Driver-Based Planning, Key PerformanceIndicators i.e. Quarterly EPS)Months / Quarters1 Year3 – 5 Years
Crate & Barrel Founded in 1965 in Chicago,Illinois Crate and Barrel is a large retailchain consisting of over 170 storesand more than 7,000 associatesnationwide – and it is stillexpanding Based in Northbrook,Illinois, specializingin housewares, furniture (indoorand out), and home accessories X amount of products Corporate name is EuromarketDesigns, Inc. The company iswholly owned by Otto GmbH
Business Problem General Ledger was a customized AS400 model (green screen) Operational budgets were collected in spreadsheets by store andplaced into multiple purpose built cubes for data storage with nosystematic way to do financial reporting Strategic plans required a great deal of manual intervention todetermine comp vs non-comp No connection between Actual data, Operational Plans andLong-Term Strategic Plans Spreadsheets were also sent to thefunctional groups (Transportation, Facilities, Warehousing, etc.)separately and consolidate by FP&A All forecasting, allocations, calculations and reporting was donein Excel resulting in un-auditable, unsecured
Business Problem
Solution Implemented Hyperion Planning and Strategic Finance toalign the Enterprise Planning process Centralized the data into one place for simpler reportingand forecasting Develop a new Long Range Plan within Hyperion StrategicFinance to run what-if analysis on store openings/closings,franchising strategies, sales growth, and margin Distribute weekly budgets down to the stores level for salesand labor details within Hyperion Planning Created ability for brand analysis across unique stores Built Management and IFRS structures in one place forsimplified reporting Implemented PeopleSoft General Ledger to replaceoutdated GL. Directly integrated PeopleSoft General Ledger withHyperion Planning for management reporting
Integrated Design ApproachPlanning system must be designed factoring in all areas ofplanning, budgeting, and forecasting Planning, Budgeting & Forecasting processes have blended togetherbecoming more event driven and less siloed Systems must be optimized to run both top down and bottom up Streamline data flows and common reporting across the EPM platform Corporate Development, Treasury, and Tax included in Planningprocess
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Implemented Hyperion Planning and Strategic Finance to align the Enterprise Planning process Centralized the data into one place for simpler reporting and forecasting Develop a new Long Range Plan within Hyperion Strategic Finance to run what-if analysis on store openings/closings, franchising strategies, sales growth, and margin
