McGraw Hill Financial | Presentation 0

McGraw Hill Financial is a Leading Provider of
Ratings, Benchmarks, Analytics & Research
Leading rating agency
Premier provider of high quality data, analytical tools and ratings information
The leading index provider
Principal provider of commodity price assessments and information
Primary quality benchmark provider with deep auto expertise
McGraw Hill Financial | Presentation
Leading Indian rating agency, analytics and knowledge process outsourcing
1

A Truly Global Company
~17,000 Employees
McGraw Hill Financial | Presentation
31 Countries 96 Global Offices
North America
Headcount 5,000
Revenue $ 3.1B
EMEA
Headcount
Revenue
2,000
$ 1.2B
Asia Pacific
Headcount 9,500
Revenue $ 0.5B
Latin America
Headcount
Revenue
500
$ 0.1B
2 2

From Transition to Transformation – A "Brief" History at
McGraw Hill Financial
2010 - 2015
ERP Implementation
• Core Financials
• 3 “go lives” in 18 months
• Legal entity restructuring
• New chart of accounts
• No customization
Outsourcing and Op Model Standup
• 350+ positions in scope
• Contract signed in May; first transition in July
• “Lift and Shift” approach
Portfolio Rationalization
GBS?
CPI & Transformation
McGraw Hill Financial | Presentation 3

Moving to GBS?

If it worked the first time for Finance……

Transitioned from Lawson HR to a Workday solution; a mix of “fix and shift” and “lift and shift”

HR BPO on a smaller scale relative to finance focused on Workday capabilities, call centers and some other “odds and ends”

Applied learnings on vendor management and cutover planning from
FAO projects

Understood how to take a global system implementation and outsourced services live in a single deployment
McGraw Hill Financial | Presentation 4

PEOPLE: Assign a leader; manage expectations (e.g., the watermelon rule) , understand cultural differences; over communicate
TECHNOLOGY: Don’t underestimate connectivity lead times and application access requirements
PROJECT MANAGEMENT: Not everyone is cut out to be a Project Manager. Understand how a tollgate should work
PROCESS: Assess how your internal controls are impacted. If lifting and shifting don’t expect a different result
GEOGRAPHY: Understand international requirements (e.g., consultation, language and localizations)
GOVERNANCE: Assign decision rights, RACI’s are great tools
McGraw Hill Financial | Presentation 5

Governance starts early and runs through the entire transition process
Key Deliverables and Timeline
38
22
USA
Phase 1 – “Baseline, Opportunities identification & RFP Development”
Baseline
MHF
MHE
60
HR Shared Services
Global In-scope FTEs
4
13
11
1
9
8
2
1
3
EMEA
86
60
26
MHF
MHE
$7.9
$5.0
$2.9
HR Shared Services
Global Cost ($M)
$0.3
$0.9
$0.7
$0.8
$0.6
$0.1
$0.1
$0.2
$0.2
$9.8
$6.6
$3.3
• Refreshed baseline
LATAM TOTAL APAC USA EMEA APAC LATAM TOTAL
Opportunity Identification
MM/DD MM/DD
BAFO
Site Visit
Solution session 2
Solution Session I 12.52
3.56
9.77
2.91
3.44
2.69
3.12
2.52
V3
1.65
2.40
V2
Phase 2 – “Provider Selection &
Contract Negotiation”
Providers Down Selection /
Reasons for Selecting ABC
14.96
3.85
3.74
3.70
3.67
ABC
Strategy &
Tools
Consistent
Leader
Transition Plan

Due Diligence
Through strategic investments in the F&A services, Genpact has operationalized a suite of superior tools to drive transformation:
Akritiv, Proflow and Questor
• Provider down select
 Has outperformed all suppliers across all towers and all solution components during solution sessions, India site visits and BAFO solution responses
 Transition plan targets completion in Q4 2012 & was supported by a very detailed knowledge transfer approach which minimizes risks by supporting Atlas launch1
• Provider due diligence
Transformation
Plan
 Genpact’s Six Sigma approach has created a transformational culture that will drive continuous improvements (committed FTE productivity rate of 22%2)
• Deal economics
Contract Readiness / LOI
Phase 3 – “Transition
Planning”
MM/DD
Governance Model Defined
Steering Committee
Jack Callahan
John Berisford
People Retention & Transition
TBD
Change Management &
Communications
TBD
Contract Negotiations
Kevin Giblin
Jeff Mitnick
BU
Presidents/
CFOs
Advisory
Board
Executive Sponsor
Michelle Ferguson
Finance & Accounting
Outsourcing
Bernie Drackwicz
50% Time
Commitment
Executive Sponsor
Michelle Ferguson
HR Outsourcing
Mary Beth Drake
Maryellen Valaitis
Transition Mgmt. Ofc.
Tom Hallett
Finance & Contracts Mgmt.
Rae Ann Wroblewski
100%
Commitment
50% Time
Commitment
MHE Specialty
Accounting Mgr.
TBD
MHE Order-to-
Cash Manager
TBD
Transition Lead
TBD
Transition Lead
TBD
MHF Order-to-
Cash Manager.
TBD
Transition Lead
TBD
MHF/MHE
Record-to-Report
Manager
TBD
MHF/MHE
Purchase-to-Pay
Manager
TBD
Transition Lead
TBD
Transition Lead
TBD
MHE Payroll
Manager
TBD
Transition Lead
TBD
MHE HRMS
Manager
TBD
Transition Lead
TBD
MHF Payroll
Manager.
TBD
MHF HRMS
Manager
TBD
Transition Lead
TBD
Transition Lead
TBD
HR
Leadership
Team
• Governance structure, processes, decision rights
Transition Plan & PMO Stand Up
# of FTEs
11.6
Revised HR
SS Baseline
100
HR Estimated Savings ($M)
2.3


Includes call center, payroll
Service delivery is assumed onshore
PRELIMINARY
 MHE
Contributes to ~ 25% of annual work volume
1.2


Re-grade existing positions above grade
21
Six positions are impacted
0.4
7.7
Right size to support post spin workload
23
Push Envelope on Outsourcing
30
Reset
Levels/Optimize
Spans & Layers
0
Future State
47
-33%
• Preliminary opportunities
• Business Case
• Outsourcing scope
RFP Issued
• Vendor Shortlist
• RFP released
• Key deal terms
• BAFO
• Letter of intent executed
Retained Organization Right-sized, Right
Process
Call Center
Data Mgmt
HRIS Admin
HRIS Admin
Payroll Services
Other
Processes
Sub - Total
Workload driver
Remedy
Tickets
Request handled
Simple
Request
Handled
Complex
Request
Handled
[Total
Annual
Payments
2011]
N/A
# of
FTEs
7
5
3
3
11
Total
Annual
Volume
20195
11802
11015
8629
2367
MHF
Annual
Volume
13127
7671
7490
5868
1184
Total Manhours requirements per year
12950
Manhour per unit
0.6
9065
5550
5550
20350
0.8
0.5
0.6
8.6
1
6
1
2
2
Reduced
FTE skilled
• Target state design
6
18
• Detailed Transition plan/timing
• Risks & Mitigation
Plans
McGraw Hill Financial | Presentation 6

Moving to GBS
McGraw Hill Financial | Presentation
7

Our focus is to move from a “back office” service provider to trusted partner
Develop relationships and credibility with the business; help business understand the value proposition
Go beyond SLAs and leverage process health metrics to evaluate performance
Provide self service tools that are intuitive and easy to use
Leverage data to produce insight and analytics to support decision making
Design for global, localize where supported by legal and regulatory requirements
Create transparency around costs and services; run like a business, benchmark against peers
Look at the process through an end to end lens; standardize and automate
McGraw Hill Financial | Presentation 8

Project Priorities
Process
S2P
Focus Areas
• Consolidate Procurement and Disbursements teams to support E2E process
• Redesign internal website to simplify buy, pay and travel for employees
• Expand Ariba footprint
• Implement master data management solution
• Provide tools to increase transparency and enhance business unit reporting and analysis
RTR
• Transition from regional model to COEs
• Deploy BlackLine to enhance visibility and control over account reconciliations
• Create operational dashboards to drive better decision-support capabilities
McGraw Hill Financial | Presentation 9

Reporting and Analytics Focus (sample)
• Create Transparency across the company, awareness of policy and processes to take action and manage spend
McGraw Hill Financial | Presentation 10

Project Priorities
Process
OTC
Focus Areas
• Reorganize to reflect as a global business service
• Implement self service tools (electronic invoicing and payment)
• Consolidated end-to-end OTC operations for some key businesses
• Transition strategic accounts to offshore collections team
• Implement and enforce suspension policies
• Prepare for the big one…
Overall
• Evaluate shift from FTE to piece based pricing approach
• Revisit business continuity planning
• Evaluate impact of incentive programs on attrition and performance
• Develop service catalogs to communicate with the business and measure our performance
McGraw Hill Financial | Presentation 11

In addition to optimizing existing scope, we expanded and adjusted the portfolio

Added “smart” T&E Audits

Transitioned Financial System Security offshore

Moved customers off “do not call list” into collections scope

Closing our Latin America delivery center

Established a buying center to support compliance, tactical buying, system management and helpdesk support
McGraw Hill Financial | Presentation 12

Looking Further Ahead

Make Six Sigma and Lean a part of our DNA

Evolve metrics beyond SLAs and process health to focus on customer experience and satisfaction

Redefine what “talent” means in shared services / GBS

Manage knowledge vs. attrition

Become a destination for enterprise services across the organization
McGraw Hill Financial | Presentation 13