Engagement pricing, budgeting & economics Ready for approval

1. Engagement pricing, budgeting & economics Ready for approval

2. Engagement pricing, budgeting & economics — business requirements

3. Engagement pricing, budgeting & economics — business requirements

4. Engagement pricing, budgeting & economics — business requirements

5. Engagement pricing, budgeting & economics–process overview Create pricing plan: “sold at” Create engagement budget: “planned at” Update estimate to complete: “delivering at” • 1 plan per opportunity line item • All opportunities must have a plan created using the Margin Modeling Tool unless they are below the SL threshold • Client server (CS) launches price plan from line item • CS selects time period & granularity • Work effort added: rank / grade or individuals • CS models alternatives and reviews metrics • Deal review approval noted (optional) • Resources soft tagged (optional) • When price agreed, opp partner approves • Systems based approvals workflow: approvals to be based on Account (G360) or market segment targets (Core) • Final price and key metrics locked and displayed in opportunity info • Price plan forms the starting point for the budget • Engagement budget required for every new engagement • CS can “clone” plan, copy in full or part to support the creation of multiple budgets from one price plan • CS can pull in plan / actual data from other engagements • CS enters work effort per resource per activity (optional) per week • CS models alternatives and reviews metrics • CS sends resource request to resource manager; budget updated with allocated resources (new version) • If GFS, system calculates EAF for all engagements linked to the opportunity • EP, OP, GCSP / Market segment lead approves • Once agreed, original budget is locked and stored in MMT and SAP • CS reviews budget to date v actual to date and latest forecast • CS send requests to team members asking for ETC • CS adds new resources and rolls off current resources • CS updates forecast by revising estimate to complete hours or by importing resource booking data • Additional fees added [in CRM] • Metrics can be reviewed and updated • CS reviews forecast and booked hours • Changes to resource hours can be sent through to resourcing • Consistent visibility of original plan as well as latest forecast and audit trail of forecast updates over life of engagement

6. Engagement pricing, budgeting & economics–process overview • Who we spoke to: Program Mercury teams: Opportunity Management Finance Revenue recognition Architecture Risk & Controls Change Management Reporting Co-existence SMRs: SDA SMR Network Localisation workshops Tax: Stephen Day, Peter Sand, Alison Eaves Assurance: Jon Pye, Estelle Billy, Cassandra Wolfe, Rod Grant, Ruchi Gupta, Robert Newton, Stephen Konenkamp (call to be held) Time Tracker: Seth Golub, Michele Gianonne

7. Engagement pricing, budgeting & economics –Current State vs. Future State

8. These changes require a significant extension of the current MMT scope

9. We conducted a detailed fit/gap analysis to review how much of the current tool can be reused User Interface Reuse 0% • The future platform will align with the Mercury and EY User Experience standards being developed and therefore will be redeveloped in Sharepoint Application Layer Reuse 10 – 20% • The current application is tightly bound to GFIS source data org and metrics for the calculations it performs. In consequence, a large proportion will need to be reworked to support the new Mercury global processes. Data Layer Reuse 10 – 20% • The data layer is highly GFIS centric, therefore most objects will have to be re-worked to support the SAP data model Systems Interface reuse 0% • The only existing interface is with GFIS, which will be decommissioned We propose that replacement MMT should be built to align with Program Mercury and EY UX strategy by building it on the EY Standard platforms: including Microsoft SharePoint and  .NET frameworks. This will support our approach to streamlined maintenance and operability, thereby keeping costs in line.

10. Interaction between MMT and Mercury EDW CRM Pricing info 6 Opportunity line item data 5 Exchange rates 3 MMT Resource assignment Predefined activities Actuals & ETC 9 Org structure NSR & cost rates Employee data Engagement budget; rate card(s) Resource demand 1 10 4 2 11 8 7 PPM ECC

11. Recommendations re automated data transfers

12. Proposed Delivery Model: Combined EY and IBM team that utilizes existing EY knowledge and aligns to Mercury Governance structure.

13. Engagement pricing, budgeting & economics–SMR and user experience overview

14. Engagement pricing, budgeting & economics —outstanding items • Detailed fee sharing design • Out of scope fees • Coexistence strategy • Agreement re removal of surcharges • Mechanism for booking resources at opportunity stage • Process for collating the G360 approval thresholds and for establishing and collating approval thresholds for core accounts • Establishment of “exemptions” from MMT usage: $ value per country / SSL or service offering per country?

15. Engagement pricing, budgeting & economics — Change impact People • Client servers will need training to use new tools and understand new revenue metrics eg NSR and EAF • For some countries, preparation of plans, budgets and ETC to shift from FMAs to client servers Process • New processes include: • creation of pricing plan as part of opportunity creation • use of pricing plan to create engagement budget • preparation of ETC • automated resource requests and feedback • Greater visibility of fee sharing arrangements and results Technology • New tools being introduced to support processes • Existing tools being decommissioned • Current MMT to change significantly Culture • Some local views of key metrics and margin calculations out of line with Mercury approach • Linkage between “sold at”, “planned at” and “delivered at” is new concept • No longer possible to avoid creation of plans by entering metrics directly into system (unless deals are below agreed thresholds) • Removal of surcharges will be a major change especially for the Assurance SL Policies • Mandatory use of pricing and budgeting tool unless deal value is below country / SL thresholds • All engagements connected to single opportunity will have same plan EAF • Approvals based on Account / market segment rather than country / SL

16. Engagement pricing, budgeting & economics — key benefits: Global • Globally consistent approach to modelling revenue and margin for pricing and budgeting • Globally consistent calculation of key metrics • Tools support set up and management of larger cross border engagements Streamlined • Integrated solution reduces manual rekeying and ensures consistency of data between solutions • Technical solution enables client server to move seamlessly between applications to support business process • Scaleable process: client handler is only required to add detail if necessary • Enables data to be used for multiple purposes eg update forecast metrics and resource bookings from one screen • Minimises effort required to update forecast metrics • Approvals and notifications minimised Strategic Focus • Supports focus on margin • Transparency and visibility of “sold at”, “planned at” and “delivered at” metrics encourages focus on management of engagement financials; early visibility of over runs supports corrective action