How to Transform a Poorly Perfoming Organizations.pptx

Here is my presentation on transforming an organization

1. How to Transform an Organization Paul Young CPA CGA Senior Consultant

2. Bio Paul Young CPA Employment History: December 2006 to March 2023 – IBM Canada (Customer Success Manager, Client Advocate, and Proven Practice adviser) June 2005 to November 2006 – Deloitte Canada (Senior Financial Solutions Consultant) August 2002 to June 2005 - Formerly Dynamex / Transforce (Senior Financial Analyst) January 1995 to November 2021 - Praxair / Linde (Senior Financial Analyst and Senior Accountant) June 1993 to December 1994 – Cobi Concreate (Office Manager and Accountant) August 1991 to June 1993 – Diamant Boart Truco / Husqvarna Group (Junior Accountant) Key Success: 300 data and AI deployment across geography and industry for the past 8 years. Business process improvements to drive reduction in days sales outstanding, increase of inventory turns, driving customer profitability, Active blogger on data and AI as part of driving better decisions based on data Lecturer of public finance, advance accounting, and advance information systems Subject Matter Expert – Environmental, Social and Governance (ESG), CCR (Close, Consolidated, and Cycle), Ethics and Corporate Governance, Integrated Business Planning Cognos Products (Planning Analytics, Cognos Analytics, OpenPages, Cognos Controller, Envizi , and WatsonX

3. Agenda What is Business Transformation? Key drivers behind Business Transformation Types of Business Transformation Why do Business Transformation fail? Top challenges facing organizations for 2025 and beyond

4. What is Business Transformation Business Transformation is the process of fundamentally changing the systems, processes, people and technology across a whole business or business unit, to achieve measurable improvements in efficiency, effectiveness and stakeholder satisfaction.

5. Quarterly Results Blog – Key Stocks - https://www.linkedin.com/posts/paul-young-055632b_tesla-workday-cava-roku-intuit-peloton-activity-7233443652511903745-4nug?utm_source=share&utm_medium=member_desktop and 10 Most Actionable Policies if Kamala Harris wins the next United States Presidency - https://www.linkedin.com/pulse/10-most-actionable-policies-kamala-harris-wins-next-united-paul-young-xtt2c

6. Drivers behind Business Transformation

7. Types of Business Transformation

8. Types of Business Transformation

9. Phases of Business Transformation

10. Phases of Business Transformation

11. Phases of Business Transformation

12. Phases of Business Transformation

13. Why do Business Transformation fail?

14. Why do Business Transformation fail?

15. Why do Business Transformation fail?

16. Why do Business Transformation fail?

17. Why do Business Transformation fail?

18. Why do Business Transformation fail?

19. Why do Business Transformation fail?

20. Why do Business Transformation fail?

21. Why do Business Transformation fail?

22. Why do Business Transformation fail?

23. Why do Business Transformation fail?

24. Why do Business Transformation fail?

25. Business Failures Target / Canada Walmart / Germanyb Wendys / Japan McDonalds / Jamaica and Caribbean eBay / China Mattel / China Starbucks / Australia Best Buy / United Kingdom Uber / China Google / China

26. Challenges for 2025 and Beyond

27. Failed to Adapt to Change Hummer Cost / Fuel efficiency Abercrombie and Fitch Imaging issues Concord Transportation trends Hostess Failed to keep up the consumer trends AOL Failed adapt to their competitor solutions Macys Too focus on brick and motar stores Kodiak Missed digital movement Segway Define their motorized scooter market Blockbuster Failed to adapt to streamlining services Telecommunication (Nokia and Blackberry) Blackberry moved to security and applications

28. Business Transformation (Sales, Capital, Workforce Planning, Operational Expense, Gross Profit/Margin, Operating Margins, Shareholder Value, and Free Flow Cash Flow

29. Revenue Management Customer Pricing model review (Price increase, profitability, churn, etc ) Sales mix (Review of SKUs, markets, customers, product, etc ) Demand Planning (Optimization of supply chain and inventories)

30. Driving Revenue Growth

31. Operational Expense Review Expense review (transportation, facilities, marketing, and other general administratration Procurement review ( vendor rationalization)

32. Operational Expense Review

33. Improving your Gross Margin Review compensation plans as part of overall sales growth and sales mix Rationalization of suppliers including discounting Managing price increases / updates

34. Improving Gross Margin

35. Net Earnings Track efficiency gains Sales planning and management (growth and profitability) Reducing customer churn and the sales closing cycle Evaluate revenue streams Reduce costs (hiring freezes, travel freeze, and other expense areas) Invest in product development Eliminate low performing goods Inspire staff Improving inventory management

36. Net Earnings Unrealized gains and losses reporting (New Accounting Rule) https://www.fasb.org/page/PageContent?pageId=/reference-library/superseded-standards/summary-of-statement-no-159.html&bcpath=tff Manipulation through one-time charges like payments due to licensing and other contract considerations. External factors (income tax changes, regulations, tariffs, inflation, and other factors)

37. Importance of GAP Analysis https://www.linkedin.com/posts/paul-young-055632b_atri-report-cost-of-operating-a-truck-up-activity-7214647545396936706-sCD1?utm_source=share&utm_medium=member_desktop The total marginal cost of operating a truck in 2023 rose to a record $2.270 per mile despite fuel costs that fell by 8.8 cents per mile, according to a new report by the American Transportation Research Institute. “While this marked a new record high cost, it increased by only 0.8% over 2022’s total,” said the report, an in-depth ATRI analysis of 2023 operational costs of trucking. “Marginal costs on a per-hour basis were $91.27, up just 0.5% from $90.78 in 2022.” Fuel costs per mile fell to 0.553 cents last year from 0.641 cents in 2022, ATRI said. What is GAP Analysis and its Importance - https://www.linkedin.com/pulse/importance-gap-analysis-paul-young-larnc/     Blog – Vale - https://www.linkedin.com/posts/paul-young-055632b_vale-picks-mining-veteran-usmar-to-lead-base-activity-7214633953725403136-0PaK?utm_source=share&utm_medium=member_desktop

38. Importance of EBITDA   What is EBITDA and Why is EDBITA Important to Organizations Medium - https://medium.com/@paulyoung_81567/what-is-ebitda-and-why-is-edbita-important-to-organizations-daeda18ad017 Linked in – https://www.linkedin.com/posts/paul-young-055632b_what-is-ebitda-and-why-is-edbita-important-activity-7182946656424747009-Vh7k?utm_source=share&utm_medium=member_desktop Organizations around the world are struggling with high inflation, lower consumer demands, threats to supply chain, cybersecurity attacks, ESG reporting, and geopolitical events. Enhancing EBITA continues to a focal point for many CFO, Controllers, Senior Financial Leaders, Senior Business Leaders, and the overall Board of Directors.

39. Free Flow Cash Flow Blog – Why is Free Cash Flow Reporting a key part of the Financial Analysis Planning, and Reporting cycle - https://www.linkedin.com/pulse/importance-free-cash-flow-statements-paul-young-nhu8c/ What is Free Cash Flow Statements? Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as changes in working capital from the balance sheet . Interest payments are excluded from the generally accepted definition of free cash flow. How free cash flow is calculated Technically, a business’s free cash flow can’t be found on any of its financial statements. Plus, there are no regulatory standards mandating how to calculate it. In general, the formula involves calculating what’s left after a company pays both its operating expenses and capital expenditures. More specifically, there are two main approaches to doing the calculation.

40. Improving Shareholders Value

41. Improving Shareholders Value

42. Improving Shareholders Value

43. Improving Shareholders Value

44. Improving Shareholders Value

45. Improving Shareholders Value

46. Improving Shareholders Value

47. Improving Shareholders Value Never lose money Never forget rule #1 Pick businesses, not stocks A Wonderful Company at a Fair Price vs. a Fair Company at a Wonderful Price Our Favorite Holding Period Is Forever Be Willing to Be Different Avoid Credit Card Debt Invest in What You Understand

48. ESG role as part of Overall Value Adopting Environmental, Social, and Governance (ESG) principles significantly enhances shareholder value by aligning business practices with sustainable and ethical standards. Companies that integrate ESG into their strategies often experience improved financial performance due to several factors.

49. Close, Consolidate, and Reporting Cycle Many organizations must complete their month-end closing cycle. Reducing the time to close, consolidate, and report is still a challenge for many organizations - https://www.cfo.com/news/5-ways-to-speed-up-the-year-end-close-metric-of-the-month/654688/ In the old days much of the accounting data need to close, consolidate, and reporting was in various systems like ERP or Asset Management or 3rd Party Payroll Systems or 3rd Party Vendor (Leasing, Facilities Management, Vehicle Management, and others) What are some key problems with close, consolidate, and reporting: Handling of complex ownership rules including investments (Equity, Joint Venture, Minority Interest, etc.) Currency translations (Currency Rates, Currency Methods, etc.) Intercompany eliminations (AR/AP, due to/from, interest income/expense, dividends, intercompany profit, etc.) Allocations Transfer pricing rules other areas of consolidation   Blog – Close, Consolidate, and Reporting – Wolters Kloewer – Financial Reconciliation - https://www.linkedin.com/posts/paul-young-055632b_wolterskluwer-cchtagetik-financialreconciliation-activity-7135230602902999040-zKFv?utm_source=share&utm_medium=member_desktop This ties nicely into my work on the close, consolidate, and reporting cycle - Blog – How to streamline the Close Consolidate and Reporting Cycle - https://www.linkedin.com/posts/paul-young-055632b_how-to-streamline-the-close-consolidate-and-activity-7103030891395907584-Ne_W?utm_source=share&utm_medium=member_desktop

50. Additional Sources and Links Here are a few articles that I have author on financial modeling: Blog – How best to drive Inventory Turns and Overall Supply Chain Optimization - https://www.linkedin.com/pulse/how-best-manage-inventory-including-turns-profit-paul-young-cdjie/ EBITDA - Blog – CFO will be challenged by shrinking EBITDA – Gartner - https://www.linkedin.com/pulse/cfos-challenged-shrinking-ebitda-margins-according-new-paul-young-krdbc/ Sales Forecasting - https://www.linkedin.com/pulse/how-make-better-sales-forecasting-model-paul-young/ Generative AI - https://www.linkedin.com/pulse/llm-planning-forecasting-reporting-cycle-paul-young-dgk3c/ Integrating the ESG policies with sales, capital, HR, operational, supply chain, decision optimization, etc Blog – Why is it difficult to report Scope 3 emissions - https://www.linkedin.com/pulse/scope-3-whos-responsible-how-do-report-paul-young-euzgc/?published=t   Cash Flow - https://www.linkedin.com/pulse/importance-free-cash-flow-statements-paul-young-nhu8c/

51. Contact Information:   Paul Young CPA CGA Paul is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industry and geographies for the past 8 years. Paul is a Financial Planning, Analysis, and Reporting SME working with data including integration of macro and micro indicators as part of the integrated business planning and reporting cycle. [email protected]   Seeking employment - https://www.linkedin.com/posts/paul-young-055632b_hi-all-linked-in-followers-and-contacts-activity-7199365291288506369-qGVf?utm_source=share&utm_medium=member_desktop   Blog — How to select the best ESG solution for your /Organization —  https://www.linkedin.com/pulse/how-select-right-environmental-social-governance-solution-paul-young-83mzc/ Stock Market Report – Australia – June 7 2024 - https://www.linkedin.com/pulse/weekly-stock-market-report-australia-paul-young-fokcc/ Blog – Stock Market WE June 7 2027 - https://www.linkedin.com/pulse/stock-market-week-ending-june-7-2024-paul-young-pbzec/?published=t   Blog - AI, Caramba - Productivity and Job Impacts - https://www.linkedin.com/pulse/ai-caramba-productivity-job-impacts-paul-young-jblec/ Blog – Monthly Report – Ontario – May 2024 - https://www.linkedin.com/pulse/monthly-report-ontario-may-2024-paul-young-lrobc/