Heinz Rotzoll - Assurance of "Fast Close" by process optimisation

Project title	Ensuring of “fast close“ as Director Finance through process optimization and reorganization of workflows
Company	International Logistics Group (Private Equity)
Industry	Contract Logistics, Freight Management, Private Equity Shareholders, eight companies and 60 sites in Central European Sub-Region (Germany, Austria, Switzerland)
Revenues	about EUR 380m
Number of employees	about 2.900
Own area of responsibility
Revenues/budget	No revenues; budget of finance area about EUR 1.5m
Number of employees	Management of about 30 employees, thereof 5 direct reports
Background for the assignment	Improvement in processes for faster preparation, audit and disclosure of monthly, quarterly and annual financial statements (IFRS/German GAAP) – “Fast Close” Poor quality of financial statements and thereby increased risk of bad decision-making on the part of the enterprise Non-adherence to mandatory group reporting deadlines Non-compliance with relevant Working Time Act
Situation within the company	Reporting date fifth working day for previous month Decentralized structure, 8 legal entities in 3 countries, 60 sites; heterogeneous, complex IT system landscape Management Reporting (“Primary GAAP”) based on IFRS (International Financial Reporting Standards)
Customer	Private Equity Shareholders
Autonomous role	Director Finance (authorized representative) Central Europe
Assignment	Reorganise month end closing procedures with “Fast Close“ Cooperation: Provision of information too late/in poor quality Interfaces: Too many/programmed not perfectly Complexity: High degree of complexity, intensive measures for control and correction Responsibilities: Partly not clear, deputy regulations the same Documents: Time-consuming search and provision of files and records Balance sheet policy: Not feasible before balance sheet date (reporting during the year does not provide required reliable information)
Measures	Shifting of activities prior to balance sheet date, e.g. management report, inventory, pension provisions Optimization of accounts preparation process, e.g. setting of Group-wide standards (accounting manual, chart of accounts), automation, training of employees, optimization of information procurement Reduction of complexity, e.g. implementation of integrated systems, reduction of interfaces, harmonization of internal/external reporting, assurance of parallel accounting (e.g. IFRS/German GAAP); accounting of current and deferred taxes, simplification of valuation, /avoidance of GAAP differences, implementation of clear rules regarding intercompany-reconciliation
Achieved results and outcomes	Strict adherence to Group deadlines as well as to statutory time limits for preparation, auditing and disclosure of financial statements Holistic consideration of processes, systems, roles and responsibilities Design of month end closure process as “Non Event“ Strengthening of trust and confidence at different stakeholders Cost reduction and quality increase regarding important business decisions
Special feature of the project	Situation within the company Complexity of the institutional framework

Special features with regards to the style of leadership:

I ensured better cooperation within the company

I explained to employees that the preparation of financial statements in due course was not a sole task of the finance department, but rather a “common problem” to be solved by all individuals and departments involved in the month end closing process
Hence, task can only be solved jointly

I took care for clarity via “Job Design and Assignment Control“

Review of the organizational structure/Updating of job descriptions
Clear assignment of activities and responsibilities
Handing over of responsibility/Promoting personal responsibility

I improved the general framework conditions for success

Elimination of technical problems
Introduction of improved systems and processes
Implementation of key business principles for lean corporate management
(LEAN Management)
Reduction of complexity
Training measures

I enhanced quality via written documentation and consistent quality management

Ensuring a high-quality written communication and documentation, e.g. Accounting Manuals, e-mails, procedural or work instructions
Gradual increase in the quality of financial statements

I strengthened employees' individual responsibility

I give confidence and encouragement to employees regarding their personal ability and general solvability of the tasks
Furthermore, I provide satisfaction with regards to their contribution to the change and transformation process

I communicated at eye level

Through talks and performance reviews with employees and colleagues of other departments I raise the awareness regarding the “common problem” and hence improve cooperation within the company significantly

I focussed on quality

In many one-on-one interviews and individual conversations I could convince employees that in the field of tension between time, quality and cost most important factor to be optimized is quality

I handled stress and conflicts in an constructive manner

In stress and conflict situations I brought about that clearances, clarifications and decisions were taken in a constructive manner