Randstad Group, the leading human resources provider in the world, implements successfully an integrated CCH Tagetik Corporate Performance Management solution in the cloud with the help of Satriun Group.
Corporate Performance Management
- Monthly and weekly group data collection
- Financial consolidation
- Budgeting and rolling forecasting
- Cash flow and organic growth reporting
- Management and Investor Relations reporting
- Annual and quarterly IFRS reporting
- Randstad Group is the second largest HR Services provider in the world
- Stock listed as RAND on the AEX of NYSE Euronext Amsterdam
- € 17.1 billion annual revenues (2012)
- Consolidation of 465 entities in 32 currencies
- 450 Tagetik users
- Headquartered in Diemen, The Netherlands
I am very proud that we have delivered the project within the timelines that we had set and within the budget. Tagetik will deliver added value to Randstad Group through its advanced functionality and cloud deployment.
- More stringent process controls to increase data consistency
- Decentralized intercompany matching process
- Automated equity consolidation by variation type
- Integrated bottom-up calculated cash flow statement
- Integrated organic growth calculations
- General ledger interfaces with drill-through option
- More consistent and higher quality data
- Reduced manual effort during the consolidation process
- Valuable insight into the origin of cash flow
- Automated organic growth calculations
- “Low touch” cloud deployment on-time, on-budget
Randstad plays a pivotal role in the world of work. Randstad has expanded to 39 countries, representing more than 90 percent of the global HR services market. Following the acquisition of Vedior in May 2008, the Randstad company is now the second largest HR services provider in the world. The Randstad company has 28,030 corporate employees working from 4,587 branches, and employs over 567,700 people every day. Randstad generated revenues of € 16.6 billion in 2013. Randstad Holding NV is headquartered in Diemen, the Netherlands, and is listed on the NYSE Euronext Amsterdam exchange.
Randstad Group had been using Hyperion Enterprise to collect, consolidate and report the performance of its operations. The limited scalability and dimensionality of Hyperion Enterprise was increasingly posing challenges for its planning & control cycle. A number of key topics, such as cash flow reporting and organic growth reporting, were done using customized Excel spreadsheets. Furthermore, process management was a challenge in the existing software. Early 2012, Randstad decided to look for a Hyperion Enterprise successor. After a series of proof-of-concept demonstrations, Tagetik was selected out of a total of three CPM suites. Randstad opted to deploy Tagetik under a Software-as-a-Service (“SaaS”) agreement, migrating its consolidation and reporting platform into the cloud.
Besides safeguarding the continuity of the reporting process by replacing Hyperion Enterprise, Randstad wanted to also address a number of other key improvements, including automated collection and validation of data from its decentralized operations, adding process management and controls as well as formal submission requirements to a three-stage reporting process. Intercompany matching was to be pushed down into the organization. Cash flow reporting was to be established at the base level of the organization with cash flow consolidated in the same fashion as the income statement. Equity pick-up, equity consolidation and organic growth reporting should be automated in order to eliminate any manual effort. Rolling (cash flow) forecasting should be introduced. These objectives were targeted to be delivered in a nine month timeframe, in a group with 465 entities in 32 currencies.
Tagetik 4.2 was used to develop the new reporting solution. In close cooperation with Randstad, implementation partner Satriun designed the new data model that integrated income statement, balance sheet and cash flow statement, creating an indirect cash flow statement that is automatically calculated including relevant currency translation, intercompany elimination and equity consolidation effects. Both management reporting and IFRS reporting requirements were combined to ensure a single data source for internal and external reporting. Multiple category hierarchies were designed to allow for actual, like-for-like as well as pro forma-views on the data. Combining these category hierarchies with the legal ownership data stored in the application, organic growth reporting was established which allowed for a more ‘on-the-fly’ presentation and comparison between two selectable periods. This new functionality was documented in an end-user manual and the 450 Tagetik users were trained on the new closing process at various locations in Europe, USA, Argentina, Singapore and Japan. After two months of parallel reporting, Tagetik was taken into production according the original project plan and within the project budget.
Having Tagetik as a cloud solution allowed Randstad to reduce application downtime as the maintenance of the hardware and the software is provided by a specialist “Tagetik-as-a-Service” team. The Tagetik ETL allowed for improved transparency, audit trail and control over source data. And though the organizational change process was challenging, pushing intercompany matching into the organization and applying more formalized process controls reduced the need for manual reconciliation, which shortened the time required to generate the consolidated financial statements. The integration of the cash flow statement and the organic growth calculations within the same data model ensured a single source of truth and reduced the dependency on customized Excel spreadsheets. The powerful drilldown functionality of Tagetik enabled the corporate center to quickly navigate the large volume of data and pinpoint the origin of profit and loss as well as cash flow with a push of the button.
Founded in 1986, Tagetik is a trusted provider of Corporate Performance Management and Business Intelligence software for budgeting, forecasting, financial consolidation, close, reporting, disclosure and more. Tagetik is one of the fastest growing global software companies in the Performance Management software industry.