1. FY16 Controller Call Series
July, 2016
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2. Unit Controller Calls – July 12th and 14th
​Transversal Finance (Patricia Michaels)
Time for Progress (Konstantin Dunaev)
Kronos Overview & Analytics
Dashboard Demo
Questions
Unit Controller Calls – July 12th and 14th
Unit Controller Call July 2016

3. Transversal Finance Organization Unit Controller Transversal Update
July 2016

4. Today’s Objectives
Build familiarity of process improvements that will eventually be rolled out as part of Transversal Finance
Share how we are involving Operators in the process improvement implementation planning and what our ask may be of you

5. Introduction to Transversal Finance
Like other departments, Finance is looking at how it operates as a Transversal function under Invent 2020
This includes looking for opportunities to increase productivity and better support the business
Finance’s approach includes standardizing and streamlining processes to do work more efficiently and effectively
As a member of the Finance community we are providing you an early view to process improvements
INVENT 2020 TRANSVERSAL FUNCTIONS
TRANSVERSAL FUNCTION RESPONSIBILITIES
Consistent delivery of services, predictable results and competitiveness
Functional/professional expertise
Optimization of the cost to perform the service
As you now know, Invent is all about becoming a truly global organization, and Finance is part of that. We need to leverage best practices across the organization to ultimately help our business grow faster, creating more opportunities for our employees.
We also know, as a result of a number of benchmark evaluations, that the structure and cost of our Finance organization is not in line with industry best practices and our competition. We have an obligation to evolve and increase Finance’s efficiency and effectiveness.
In light of this, the objective of the new Transversal Finance function is to help Sodexo deliver results and better meet our business objectives at a more efficient cost. We will be focused on streamlining processes so that we can work more consistently and efficiently while also leveraging resources in ways that serve broader parts of the organization.
In North America we have created a road map that outlines how we need to evolve in order to become a Transversal Finance function which includes changing and enhancing the way we work. And while our approach to transformation covers a number of important initiatives that work together to make the change possible, we would like to spend the time we have today focusing specifically on the changes related to the Planning, Budgeting, and Forecasting processes.
To learn more about the full scope of Transversal Finance visit search for Transversal Finance on SodexoNet.

6. Program Scope of Transversal Finance
FOCUS FOR TODAY
Organization Design
Design a leading class function aligned to provide end-to-end financial support under a new Transversal model
Close, Consolidate, & Report
PBF* Process Improvement
Foundational Initiatives
Increase the effectiveness and efficiency of the Planning, Budgeting, and Forecasting (*PBF) process
Increase efficiency of Close process
Support the transition to a monthly calendar close
Our move to becoming a Transversal function targets 4 areas:
Along the left and right sides of the triangle - Improving and streamlining our processes to help us do our jobs better, with an emphasis on Planning, Budgeting, and Forecasting (on the left), and Financial Close Improvements (on the right).
At the bottom of the triangle, our foundational initiatives – these are already underway and are essential to driving the effectiveness and efficiency that will support our evolution to a Transversal Function a success.
The foundational initiatives are:
Enhancing the reporting environment to better meet the needs of the organization
Developing data management governance
Reducing After Market Reports (AMRs)
Standardizing the accrual and payout processes
Integrating US Energy & Resources
And in the center of the triangle – Designing our organization to strengthen the alignment between our people, their skills, our processes and our strategy.
This program is only as effective as a whole as the work is interrelated.
We will talk more about the different initiatives in a few minutes.
Enhance the reporting environment to better meet the needs of the organization
Develop data management governance
Reduce After Market Reports (AMRs)
Standardize the accrual and payout processes for the annual incentive plan
Integrate US Energy & Resources

7. Close, Consolidate & Report: Case for Change
The objective is to address existing pain points in the pre-close and close processes and support the execution of the Monthly Close Calendar Conversion initiative
Improvement Objectives 1 2 3
North America is the only region not on monthly close
Distribute effort over the period
Build more real time financials
Move to a monthly calendar close by end of FY17
Manual JEs are recorded annually
72,000
58%
of manual JEs are booked during Close
of Service Tickets are logged at Close
63 %
of Manual JE lines are less than $10
31 %
Of manual JE lines are less than $1,000
83 %

8. Close, Consolidate & Report: Improvements Coming Soon
CCR design elements focus on simplifying and eliminating work, reducing manual and disparate processes, driving accountability and distributing effort over the period to reduce peak close volume
Step A
Daily UFS transmissions
Operators
Catch and fix mistakes earlier
Don’t miss deadlines and have to submit after the fact
Make Close less of an event
Be able to look forward and not backwards
Make more timely decisions
Prepare for the move to monthly calendar close
Real time data is put in
Step C
Frequent review of Unit financials
More timely reporting is shared back
Step B
Updated financial reporting in E=Vision
Talking points: to provide more specifics on what is submitted daily ( and what key metrics can see in financial reporting
Finance
Before rollout in September 2016, the process improvements are being tested with select Operators

9. Close, Consolidate & Report: Further Out
The move to a monthly calendar close by the end of FY17 will align NORAM with Group Calendar
FY17 Pd 12
MCC Stub Period:
Six days will be added
to FY17 P12 in order to
align NorAm with
Group monthly
calendar
FY17 will end on August 31 instead of August 25
Period 12 of FY17 will include an extra six days
Periods in FY18 will begin on the first day of the month and end on the last day
Close calendar
and process
cadence in FY18
will be aligned to
the monthly
calendar

10. Planning, Budgeting, & Forecasting: Case for Change
The goal is to move towards leading practice standardized processes for Forecasting, Budgeting, and LRP
Days vs. Leading Practice
Different processes by Segment ~
Takes multiple iterations
Highly manual given high level of detail
Lack of visibility into targets
more final budget line items than leading practice
567
more days to prepare forecast 37
More days to prepare annual plan
110
more days to prepare LRP
132

11. Planning, Budgeting, & Forecasting: Improvements Coming Soon
This “exception-based” Accordion Forecast empowers those closest to day to operations with the support of Finance to provide insight into 2 fiscal year outlook
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
Accordion Rolling Forecast
Q1 F
3 Quarters of FY17 + FY18
Annual FY19
Q2 F
2 Quarters of FY17 + FY18
Annual FY19
Q3 F
1 Quarter of FY17 + FY18
Annual FY19
Targets
Key Benefits
Pre-seeded information so no bottoms up GL account by account build
Fewer GL accounts to plan and budget for
Exception based input so only change areas exceeding or not meeting expectations
Greater visibility into what makes up targets
Longer range, up to 3 years
LRP
FY18 through FY20
Plan the Biz
Budget
FY18
Before rollout of Forecasting in November, we will make sure you are aware of
the new processes and tool which starts with Forecasting to assist your DM
DM Involvement

12. Next Steps and Ask
Next Steps: To continue to collect feedback and refine plans for implementation
Our Ask: Partner with us by asking questions and sharing your feedback on risks and challenges

13. Time for Progress Managing Labor Resources for Profitable Growth
Labor Analytics Dashboard
July 12th, 2016
Confidential and proprietary to Sodexo. Do not share or post without proper consent.

14. Labor Story

15. Labor – Where We Are / What’s Next
NOW
eTIME conversion for DRIVE Pilot Units
& Schools
Kronos Pilot
Go-Live
Canada
Replace
Payroll
Move to
Kronos
LMS
to Kronos;
Analytics go live
Re-Train Managers on
eTIME
Install
Kronos Clocks
In LMS
Units
Retire
SEW
DRIVE
Pilots & Schools (LMS) Training
All Units
On Kronos
All US
Units
Upgrade –
Kronos
Version 8
Empl lD
Punch
New Punch Rules
Kronos Scheduling
Analytics
in Place
14P
Pre-Pilot
Go Live
eTIME Units Move to Kronos
Canada
Replace Payroll
Move to Kronos
New Kronos and ADP Contracts MR
Key changes:
eTIME – big bang conversion April
Behind the scenes:
SEW is on us
Service Type / job enabler needed to be set before deployment to LMS and eTIME users and before we can retire SEW
Any delays we encounter will impact our ability to retire SEW by year end 2016
Spring
2015
July Aug
2015
Sep ‘15 - Jan ‘16
Jan
2016
Feb 2016
April
May
July 9
2016
Aug-Oct
2016
Nov
2016
Aug – Dec
2016
Nov
2016
2017
2018 15

16. Kronos® Workforce Analytics™
Will provide role-based insights into the hidden causes of excessive OT, absenteeism, low productivity, and ineffective schedules
Dashboard will offer rich data visualizations, providing instant insights via interactive charts and graphs
Will leverage data and help you discover patterns, trends and relationships to determine root causes of issues or successes – not just the who and when, but also WHY?
Will show real time data, exposing daily in-unit behaviors before the financial impact is realized
Kronos® Workforce Analytics™
Real time data, Daily in-unit behaviors before the financial impact is realized
Leverage data; help you discover patterns, trends and relationships to determine root causes of issues or successes
Not just the who and when, but also WHY?
Insights into hidden causes of OT, absenteeism, low productivity, ineffective schedules
Dashboard with rich data visualizations, providing instant insights via interactive charts and graphs
IMPROVED RESULTS AND MARKET COMPETITIVNESS
Previously our analysis of labor efficiency has been driven by historical data. We compared our results to last year, last month, budget and forecast. We gathered a lot of data, looked at temp labor, overtime, outside labor. Analysis was always done on the past data, and given the volume of data and time lag it was often difficult to act on the findings. As a result, critical business questions went unanswered and opportunities for improvement were lost. With Kronos analytics we will take the next step in becoming best in class in workforce management. The analytics dashboard is one of the first tools that we will make available in this journey. This will be the tool available to all Kronos users, at all levels of the organizational Hierarchy. For the first time ever will our leadership – DMs, VPs, Controllers and Finance directors have the same real-time view at daily labor metrics as unit managers. We will be able to not just look at the result – we missed or beat budget; or – we had a lot of OT – but also look at what caused the result – schedules not done, or, employees routinely stay late, or employees are not using the timeclock and managers spend the time at the computer creating punches.

17. Kronos® Workforce Analytics™

18. Kronos® Workforce Analytics™

19. Kronos® Workforce Analytics™
Please keep in mind:
Dashboard shows estimates, not actuals
Dashboard shows data through “yesterday”, meaning that on Monday you will not see data for the prior week
Dashboard is not intended to be a financial reporting tool, but a visual insight into real-time activities
Additional analytical tools and reports will be available for more in-depth research

20. Unit Controllers – Kronos Works For You
Operational Effectiveness
Start…
Maintain…
Review…
Schedules
Monitor Your Units’ Progress
Support Leadership by ensuring compliance
Look daily at:
Open punches
Approaching OT
Actual to Schedule variances
Provide leadership with mid week reports
Reports
TAKE ACTION
Review reports in Kronos regularly
Help direct leadership attention to areas of concern
Coach based on variances
Analyze reports and identify areas for improvement
Compare Schedules to Budgets and forecasts
Understand reasons for any variances
Support your areas by providing advanced forecasting of variances
Support manager training
Report scheduling behavior issues to leadership
Utilize Kronos reports, dashboard and analytics for reporting. Reduce custom Excel work
Weekly look at:
Punch %
Scheduled vs. Actual hours, dollars
How many manual checks were issued?
How much temp labor was used?
How next week schedule compares to prior actuals?
Schedule

21. Resources Questions? Unit Controller Network Call Materials
UFS Launch site
Transversal Finance
Kronos
Thank you for your participation, your time, and for your support of this very important call series.
Resources for the topics covered on today’s call are listed here.
Copy of today’s deck can be obtained by visiting the Controller Corner on the UFS launch site 21