F1 – Continuous Improvement : Better metric reporting for driving efficiency

2. F1 – Continuous Improvement : Better metric reporting for driving efficiency

3. Disney is made up of five business segments

4. Shared Service Environment Disney’s Shared Services: North America (DWSS) – established 2002 Latin America (LATAM) – established 2002 Europe (EMEA) – established 2012 Asia Pacific (APAC) – established 2013

5. Objective of our Shared Service Centre Increase efficiency Optimize technology Increase transparency Standardization Cost Savings

6. The role of metrics Identify opportunities for improvement • E.g. Casual Buyer reduction, number of manual payments Monitor adoption rates of new tools and processes • E.g. New Non PO Invoice process, Buy on Behalf of Functionality Compliance to policy • E.g. after the fact PO’s, materiality limits, use of one time vendor, Intercompany recharge thresholds.

7. The role of Metrics Monitor Defects • E.g. invoices not paid on time, scanning accuracy, Amex late fees, number of policy violations. Efficiency • E.g. FTE per invoice, time spent on each process, number of vendor queries.

8. The role of Metrics Drivers of work • Number of Cost Centers, GL Accounts, Bank Accounts etc. • Number of manual transactions • Forecast Accuracy • Accuracy of specific accruals. Reporting Success • E.g. improvements in cycle times, decrease in complaints etc.

9. Scenario: Casual Buyers 772 Casual Buyers in APAC Low compliance to purchasing policy High error rates Many of the challenges reported by Accounting, Finance, Strategic Sourcing and Management stemmed from the Casual Buyers.

10. Scenario: Casual Buyers – Impact of Shared Service New invoicing process – more responsibility for Casual Buyers More onus on Casual Buyers to deal with defects e.g. Blocked Invoices Introduction of materiality limits – no small re-classes.

11. Scenario: Casual Buyers – Realization Our processes were not going to work with our existing Casual Buyer approach.

12. Scenario: Casual Buyers – What did we report Number of Casual Buyers Average number of PO’s per Casual Buyer Number of Casual Buyers raising less than 1 PO a week % of PO’s raised by the top 3,5 and 10 Casual Buyers Number of support calls Number of errors Time spent by Casual Buyers spent on purchasing activities. Similar metrics from EMEA.

13. How did metric reporting help? Shocked and gained people’s attention Made the problem a tangible one Provided a benchmark and highlighted areas for improvement Facilitated a structured conversation Provided insight into the root causes

14. Scenario: Casual Buyers – Reporting going forward Number of Casual Buyers • total, average PO’s per Casual Buyer etc. Defects • e.g. number of rejected invoices, emergency payments etc. Opportunities for improvement • Functionality not being utilized • Best practice • Specific Casual Buyers to monitor

15. Designing Metric Reports Be clear on the objective Consider your audience Prepare many, present a few Review regularly, as the business changes so will the metrics required Make them visually appealing

16. Designing Metric Reports Inputs Number of invoices Number of manual invoices Number of vendors with pay immediately terms Process Number of Invoice Defects Type of Invoice Defects Outputs Number of invoices paid on time Number of AP FTE’s

17. Accounts Payable – Metric Examples • Number of FTE’s • Number of PO invoices processed via Brainware • Brainware success rate • Number of Non PO invoices processed • Number of rejected Non Po Invoices • Number of Policy violations • Number of emergency payments • Number of One Time Vendor transactions • Number of invoices paid on time • Number of vendor queries. • Aged GRIR Balances • Blocked Invoices

18. Note: these do not reflect actual results

19. Note: these do not reflect actual results

20. Note: these do not reflect actual results

21. Note: these do not reflect actual results

22. Casual Buyer • Number of Casual Buyers • Number of Purchase Orders and Invoices • Number of Defects • Types of Defects • Open PO’s • Value of Open PO’s • Number of Support Calls

23. * Note that SEA is excluded from ‘Best’ and ‘Average’

25. Accounting • Number of Cost Centres, WBS Elements, GL Accounts • Reconciliations – number and timeliness • Number of manual transactions • Value of manual transactions • Requests below materiality limits. • Finance • Forecast Accuracy • Inventory e.g. Obsolete Stock, Returns Reserve • Accuracy of specific accruals.

26. Situations as of 16th May 2013 Note: these do not reflect actual results

27. Note: This KPI is reported on a one quarter time lag due to availability of information, so these results relate to Q1 FY2013 Note: these do not reflect actual results

28. Metric reporting for driving efficiency Be consistent Follow up on the actions Focus on small and incremental improvements Don’t report redundant metrics Focus on inputs and process not just outputs Use metrics as a tool to help you drive efficiency but don’t rely on them to be the solution.

29. Questions?