CR Finance Discussion

1. CR Finance Discussion Financial Standards / Guidelines Update FA Training FA Training • Finance Standards for LSS projects • Hard/Soft Benefits • Project implementation cost • Start/end benefits counting • Reporting • ID & Assignment of Financial Analysts to projects • Special projects: • Cap-X • Safety • Long benefits realization cycle • Business Acumen training

2. Charles River Business Acumen Training Initial Thoughts • General Intro to Finance(?): • Financial Cycles (Annual, Qtrly, Monthly) • Finance bodies/standards (FASB/GAAP) • Intro to Financial Statements: • Income Statement • Balance Sheet • Cash Flow • Financial Concepts: • Matching Principal • Cash/Accrual accounting • Revenue recognition • Depreciation/Amortization • Inventory (balance sheet, not P&L) • Workshop/Examples: • Model CR Business • Run a baseline scenario • Introduce complexities • Under utilized rooms • Process Bottlenecks • Major Capital investments(?) • Re-run simulation with impact of complexities • Report-out/learnings • Scientific vs Business (common sense) • E.g. replacing staff in an underperforming BU. • E.g. – bogged down in negotiation • ERP – shift in revenue recognition • Think strategically • - Individual coaching – • Use real example – scrub – like case study • E.g. – utilization calculation – inconsistent, inaccurate – lack of visibility to add’l capacity – requires adding capacity/expense • Lab sciences – invest to grow tox. – lack of performance, no action plan to correct • Site metrics – accountability • Connect Operational indicators & Financial results e.g. WIP/Utilization/revenue recognition • Small pilot (15-ish) • Learn, refine Use case study