1. Defining Project Objectives and Scope

2. Linkage of the ABC, Finance, and Project Visions
ABC Vision
As a customer-driven enterprise, we will
consistently create superior value for all of our
stakeholders through successful partnerships
with them.
We will be a preferred, full-service provider of
energy and other related products and services
in a variety of chosen markets.
We will profitably grow to many times our current
size and capabilities.
Our stakeholders include our customers,
shareholders, employees, joint-ventures/strategic
alliances participants, suppliers, government and
the public-at-large
Finance Vision
Finance will collaborate with line management in business decision-making
Finance must undertake value-added business analysis that will help operating managers understand the financial consequences of their strategies and decisions
Finance cannot assume rate cases will solve future problems with cost structure
Finance will provide critical information on a more timely basis
Finance should design the long-term flexibility to enable activity-based management and costing
Finance will evaluate and measure how efficiently capital dollars are being spent
Finance will play a greater role in evaluating new business opportunities and the associated risks
Finance will provide new information to support decision-making
Finance will drive down the cost per transaction by doing more with the same amount of resources
Project Vision
Project should fully utilize best practices in developing new processes and methodologies to aide in decision-making
Project must identify opportunities to reduce cost through reduction and/or elimination of non- value added activities
Project must develop streamlined processes that create more value for the company
Project must result in the attainment of new competencies that enable value-added business analysis and the delivery of relevant and timely information
Project must enable timely user access to key financial information without intervention

3. What Finance Will and Will Not Do
Through the visioning process and in initial meetings with senior management, specific
roles that finance will or will not play have emerged. We will continue to enhance this
list as the project evolves.
Finance Will Not:
Finance Will, However:
Own and maintain non-finance related data
Support duplicative reporting codes
At the transaction level: - manually edit transactions - correct errors initiated by users
Enforce departmental budgets
Capture non-finance related data as necessary and as available for management reporting purposes
Make reporting codes easy to understand and use
Monitor at a process level for errors and correct through policy and procedure changes
Send errors back to users for correction
In a business partnering role, monitor and report results

4. Benefits of Achieving the Vision
As a result of achieving the Vision for Finance, ABC will realize the following
benefits:
ABC Finance will achieve the following:
Provide customers with competitive advantage
Provide flexible, quality services in a timely manner
Provide expertise needed whenever and wherever the business needs it
Assist management in making better decisions
Improve profitability through better understanding of financial implications
Better understanding of business risks and necessary mitigating control
Information and expertise will be aligned to support strategic objectives
Provide flexible people, processes and technology in order to respond to changes in customer needs
Employee skills will be broader and more transferable
Provide information and insight into profitability, productivity, and efficiency across the business and by various attributes
Provide increased access to information in a user friendly format

5. Critical Success Factors Key Performance Measures
Project Critical Success Factors and Performance Measures
Project Vision
Critical Success Factors
Key Performance Measures
Project should fully utilize best practices in developing new processes and methodologies to aide in decision-making
Project must identify opportunities to reduce cost through reduction and/or elimination of non-value added activities
Project must develop streamlined processes that create more value for the company
Project must result in the attainment of new competencies that enable value- added business analysis and the delivery of relevant and timely information
Project must enable timely user access to key financial information without intervention
Streamlined processes that create more value for the company
Fully utilized PeopleSoft Best Practices and limited modifications
Increased value, timeliness, relevance, and consistency of financial information
Effectively managed team dynamics (team includes core team and company)
Support the vision, mission and values of ABC
Project Overall Performance
Linkage
Resources
Reduction in days, hours to complete process
Reduction in $ to complete process
Reduction in time to provide key information
Reduction in non-value added reporting Value
Number of users with on line access to information vs. goal
Reduction in time to provide key information
% of non-value added activities
New competencies developed
Number of unique pieces of value-added decision support information or analysis provided
Number of new best practice methodologies implemented vs. target
Finance cost as a % of margin
Total Finance FTE’s
Internal Customer Satisfaction
Profit
% of FTE’s involved in decision-support vs. transaction processing

6. Scope Processes Included Processes Excluded
The following list clearly illustrates the processes that are within the scope of the
project and those that are not. We will, however, address key linkage points with the excluded
processes in order to ensure improvements are realized on in scope processes.
Processes Included
Processes Excluded
Close the Books/General Ledger
Manage Fixed Assets
Account for Capital & Non-Capital Projects
Provide Financial Information
Create Budgets
Process Accounts Payable
Process Payroll
Process Accounts Receivable; Credit and Collections
Produce & Deliver Products & Services
Invoice & Service Customers
Purchase Materials & Supplies
Warehouse or Store Product
Manage Inventories
Develop an Executive Information System

7. Scope
The following information highlights the gaps that exist between the Finance Vision and the currently defined Project objectives
Outside the Scope of Project but Critical to Success
1. Development of competencies within the Finance function that enable business
partnering and business risk management
2. Design of new methodologies and tools (other than PeopleSoft) to support strategic and
new business opportunity investment planning and prioritization
3. Development of the systems to fully realize activity-based costing and/or budgeting
4. Development of the systems to fully realize performance management objectives
GAP
Finance Vision
Finance will collaborate with line management in business decision-making
Finance must undertake value-added business analysis that will help operating managers understand the financial consequences of their strategies and decisions
Finance can not assume rate cases will solve future problems with cost structure
Finance will provide critical information on a more timely basis
Finance should design the long-term flexibility to enable activity-based management and costing
Finance will evaluate and measure how efficiently capital dollars are being spent
Finance will play a greater role in evaluating new business opportunities and the associated risks
Finance will provide new information to support decision-making
Finance will drive down the cost per transaction by doing more with the same amount of resources
Project Vision
Projectshould fully utilize best practices in developing new processes and methodologies to aide in decision-making
Project must identify opportunities to reduce cost through resolution and/or elimination of non value added activities
Project must develop streamlined processes that create more value for the company
Project must result in the attainment of new competencies that enable value-added business analysis and the delivery of relevant and timely information
Project must enable timely user access to key financial information without intervention IN
SCOPE
Fully within Project Scope
1. Development of PeopleSoft and project
management competencies within the 4
modules and associated processes
2. Designing the long-term flexibility to
accommodate activity-based costing
and/or budgeting as well as performance
management objectives

8. Senior Management and Sponsor Expectations
How will we know if we are successful?
“The system is running, stable, on time and under budget”
“Better decisions are being made because people are educated on financial implications of decisions”
“Scope creep was managed very carefully”
“Modifications are kept as close to zero as possible”
“Information can be obtained from the system by users without having to make phone calls
and wait”
“Financial reports and supporting processes are seen as less of a mystery”
“Processes are changed to take full advantage of the software… We don’t change the software to accommodate our processes”
“Communication and involvement are timely and appropriate”
“Savings are realized from the system…Cost per transaction is reduced”
“Eliminate peaks in expense activity which coincides with period-end…instead expenses are recorded as incurred”
“Effectively set objectives, defined accountability and developed accurate measurements”

9. Project Performance Measures
Current Baseline
Target
Modules Impacted
1. Number of users with on-line access to financial information 0*
Projects G/L
Assets Budgets
2. Number of days required to close the books each month
10-15
5 or less
Projects G/L
Assets Budgets
3. Number of days required to create a budget
90-120 60
Projects G/L
Assets Budgets
4. Number of days to complete unitization
29 weeks (manual)
2 days
Projects G/L
Assets Budgets
5. Time spent on manual journal entries each month
75 hours
8 hours
Projects G/L
Assets Budgets
6. Customer satisfaction with the information and services provided by the Finance Function
30% excellent
60% excellent
Projects G/L
Assets Budgets
* not including users with access to electronic copy of budget/actual file

10. Project Performance Measures
Current Baseline
Target
Modules Impacted
7. Number of changes after design freeze
N/A
Projects G/L
Assets Budgets
8. Deviation from budget (time and $)
N/A
Projects G/L
Assets Budgets
9. Timeliness of expense information
2 weeks after month end
Daily/next day where applicable
Projects G/L
Assets Budgets

11. Sample Project Charter
See attachment