Business Case Deloitte
Deloitte selects Runbook for its Fast Close
"If you use Runbook software you work in a more efficient and effective way. The work becomes more transparent; you can clearly see what you're doing", says Remko Vochteloo, Director of Finance Deloitte Netherlands. Two years ago the consultancy and accounting organization implemented Runbook in the Netherlands for its period-end closing and internal control. According to Vochteloo, the process management and optimization have greatly improved since then. "Transparency has a self-cleaning effect."
Deloitte's prime reason for switching to Runbook software was that it wanted to straighten out its administrative organization, says Vochteloo. "This is not to say that it wasn't in order, but it lacked the necessary recording and description of processes and tools. We wanted to record the processes in order to exclude risks. Our question was: How do you make these processes efficient? Of course you can describe what you are doing, record everything on paper and then store it in a big cabinet. Then the processes are recorded, but they're difficult to access. With Runbook you can enter all of the necessary documentation into the system in a simple way and retrieve it just as easily."
Each Deloitte chain (Contact tot Cash, Recruit to Retire and Procure to Pay) holds a quarterly "in control meeting". "We review everything step by step, check whether the processes contain weaknesses or errors at any point and if and how these were solved. With Runbook it's easy to see what has happened."
Maximum allocation of means
When new processes are introduced not everyone always embraces them right away. At Deloitte, however, things went pretty fast. "Within two years time it has found a spot within the organization. From my own experience I know that a change in procedures is viewed upon as a necessary evil, something that is imposed because the auditor demands it, for instance. Now the organization considers itself the responsible party and sees the advantages: it's a method to allocate means in a maximized way.
The Deloitte employees were helped on their way via workshops that were given by Runbook at its headquarters in the city of Ede. "The first day was attended by financial people who were involved in the period-end closing. To them, the process was completely logical. On the second day it was the process people's turn. Here, new processes met with some opposition. By now that opposition has vanished and they are the champions of the project. When it comes to these kinds of processes you have to prove what the advantages are. The advantage of Runbook software is that you can work step by step. Of course you can limit yourself to selling the conceptual side of things, which is important, but when it concerns the implementation the concrete steps are also relevant: What do I have to do? Do I have to do more? What it comes down to in our case is that people do the same work but in a different manner. Instead of a peak in reporting occurring once a year, we now report every month. That's easier."
Process-oriented thinking
The big advantage of Runbook is, according to Vochteloo, that is has had a clearly positive effect on the organization. "We have become less dependent on whether or not people communicate with each other". It has enabled us to make a shift within the organization from departmental thinking to process-oriented thinking. People no longer think in departments, whereby a problem is passed on across the cubicle to another department, but in terms of processes. They see the process and understand the value of communication and collaboration. This will automatically result in improvement projects. Runbook creates transparency and that has a self-cleaning effect for an organization."
An additional advantage is that the year-end closing can be completed considerably faster. "In the past two years we were able to close three weeks earlier on average. The figures are now available to us after a week. It still takes about three weeks to finalize the closing and then the results have to pass the audit committee and the shareholders' meeting in September. Apart from the closing, our insight into the fact that key controls are working is such that I'm truly sure that I'm 'in control'. In many cases people work on the basis of a negative assurance; now you have the positive assurance that you have been in control. You're in control much more consciously, you can prove it. That's a great feeling!"
When it comes to internal control, Deloitte was one of the first Runbook users. "Based on that first version we have developed a number of new functions in collaboration with Runbook. Eighty percent of the core was there, but if you define things really clearly for yourself you start thinking: if I record all those data anyway, I can also use that information in a different way. Now it is possible, for instance, to put all balance sheet data on a CD-ROM that you can give to the auditor. Runbook has incorporated the lessons that we have learned in this area."
Horizontal monitoring
The recorded data and procedures can also be used to meet the legal fiscal obligations within the framework of Horizontal monitoring. "We're in talks with the Dutch Tax Administration on the topic of Horizontal monitoring. The Tax Administration wants to audit less often and depend more on the internal risk systems of organizations and businesses. If companies can prove that they possess a good Tax Control Framework that incorporates all important tax key controls and wherein the proper processes are being carried out, time consuming random checks will no longer take place. The advantage of having your own Tax Control Framework is that you can do the random checks yourself and see what the risk areas are. In that case the organization itself is in control."
Vochteloo can't come up on the spot with any negative experiences with Runbook. "After having talked to Runbook's Herman Heller and Rob Leesberg I felt right away: this is going to work. The contact and process were very transparent. We had an open relationship with the owners and consultants."
The most difficult part of the whole process is the change management, says Vochteloo. "You have to find a balance between the things that people must do and the things that motivate people. Sometimes the 'must' part becomes too dominant, whereas more motivation might work better in that case. It is important to communicate properly, gather people together once in a while and involve them in the process. Embedding the system into the organization is more difficult than implementing the software package."
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