WON NOT BOOKED PROCESS FEBRUARY, 2002
Accenture Proprietary & Confidential Information
Won not Booked Process Memo from Global Operations-9/01 As we move through the IPO Process, there are demands on many of us to collate and prepare information to supply to the investment bankers and analysts surrounding how the Firm will be valued. One area that will be very important in maintaining our credibility in the public space will be sales, opportunity and backlog reporting. Many of you will have heard by now of the current work with the Finance Organization to ensure that we, as a Firm, adhere to all that is set out in the G.A.A.P. (Generally Accepted Accounting Principles) – a widely accepted set of U.S. rules, conventions, standards and procedures for reporting financial information as established by the Financial Accounting Standards Board (FASB). G.A.A.P. is Accenture’s accounting standard. One driver in instilling this process consistently across the geographies is the production of quarterly and yearly financial reporting. Once we move to a public company, this enables financial information about the operations and the financial position of individual entities to be used by the public in making various decisions. We, within Operations, need to ensure that the same principles of rigour are applied to the Opportunity Pipeline from inception to point of sale. Accenture Proprietary & Confidential Information
What does this mean to us? • There have been several discussions amongst senior management (JForehand, SJames, DMonaco, our MU MPs, our Business Operations MPs) focusing on seeking ways to improve the reach and accuracy of what we currently report upon in the opportunity pipeline, and to ensure we do this with a globally consistent approach. Specifically using only the Business Development system to track and report upon these pipeline revenues. We were and have been asked to begin with the new platform in the Global Markets Portal to track the Won not Booked process-please note that this will continue with the transition to GBDF.
Accenture Proprietary & Confidential Information
What does our pipeline look like? Revenue Stream Business Development Pre-pipeline Currently not formally reported in C&HT (tbd for the future) Under Constn/ Not Submitted Opportunities with: • Start Date*/End Date • Current Net Revs • Win Probability * Start Date not more than 3 mths old
Pipeline
(current/follow-on)
FS90 Won Not Booked
Tracking effective Hi-Prob (70%) from today Low-Probability (<70%) Is the difference between portion of a won opportunity's revenue that has • This area currently reported mid-month & been booked/sold & monthly by the C&HT MU team (report detail the revenue the supplied by Operations) opportunity is • Hi-Probablity weighted current net revenues expected to reported as “PASB” – probability adjusted ultimately generate shadow backlog (i.e. the balance)
Accenture Proprietary & Confidential Information
Backlog
Net Revenues
Reported by the Finance Organisation – with adherence to G.A.A.P
What do we do next? • Start formally tracking the "Won but Not Booked" revenue gap in our business development system (GBDD/GMP). Obviously this process requires the close cooperation and support of our Finance counterparts. This same process has been communicated to them and has the full backing of Bill Green, Steve Zimmer and David Rowland in addition to all of us in Operations.
Accenture Proprietary & Confidential Information
CME WEST PROCESS • •
•
•
A monthly Won not Booked report is sent to CFM Leads requesting fields for input. Once these fields are completed, Ileana then transfers this information in to the Won not booked portion of the GMP form and the opportunity will then be removed from the Won not Booked reporting for GMP. Please note that the Financials at time of sale in ACAT must match the financials in GMP and the booked financials in order to be removed from this compliance report. For this time only, since we have opportunities that were booked in August, September, October and November, I will use the financials already in GMP and the client code, job number and FS90 code information provided by Jonathan Collins to book opportunities booked prior to December 2001. Accenture Proprietary & Confidential Information
The key to keeping your Won not Booked Report Clean and Current • The key to keeping this report current is to complete GMP forms prior to sale as opposed to playing catch up months after the sale of the engagement. • Responding to the monthly Won not Booked Cleanup report sent to you by Ileana Accenture Proprietary & Confidential Information
GMP Won not Booked fieldsFinancials based on GMP forms
Accenture Proprietary & Confidential Information
Booked Revenue FieldsFinancials based on CFM input
Accenture Proprietary & Confidential Information
