Managing Change in AP Today — Today’s Climate and Challenges Are Different

About Your Presenter Judi Thallas, APM Finance Change Management Leader, ConAgra Foods Business Services Center Judi has been with ConAgra Foods for 14 years, originally hired as the Accounts Payable Supervisor for the Frozen Foods Group. In 2003, Judi helped establish a financial shared services center and served as the Accounts Payable Manager of the new center. Judi was also a key leader of the Concur automated online employee expense reporting tool and revision of the company’s credit card programs. In addition, Judi was a key player in the phased implementation of the company’s ERP Purchase to Pay module focusing on Accounts Payable. Concurrently, Judi was also managing an AP staff utilizing multiple legacy payable systems. Since 2009, Judi has focused on change management and training of the ERP P2P processes for both the AP staff and the end users ranging from plant maintenance associates to senior vice presidents. Judi is also involved in company M&A activities, focusing on AP process assessment including: training, vendor onboarding, change management, and post go live support.

Change Management: The People Side Change management is the process, tools and techniques for managing the people side of business change, to achieve the required business outcome of a change project or initiative. The better the people side of change is managed, the more successful a project will be.

ConAgra Foods Overview ConAgra Foods started in 1919 as Nebraska Consolidated Mills ConAgra Foods is a Fortune 500 company with more than 23,000 employees, with the company’s world headquarters located in Omaha, Nebraska ConAgra Foods had $12.3 billion net sales for FY 2011 ConAgra Foods is one of North America’s leading food companies, with brands in 97 percent of America’s households Internal Use

ConAgra Foods portfolio $12.3 billion in sales our purpose: We deliver everyday food in extraordinary ways

Where we were . . . all over the board!

To Centralize, Standardize, & Optimize Technology & Business Processes Our Journey Establish a Shared Service Center Consolidated Transactional Accounting in Omaha, NE 30+ Consumer & 20+ Commercial Plants 3 HQ plants Implemented a Single ERP System ~ 2004: Order to Cash ~ 2007: General Ledger ~ 2008 – 2011: Supply Chain (P2P) ~ 2010: Fixed Assets Enhance ERP with Complimentary Applications > Invoice Imaging & Workflow > Sales & Use Tax > Purchase Card Integration Our goal: To Centralize, Standardize, & Optimize Technology & Business Processes

Change The Change Curve

Change is an event, external Transition is a process, internal Change vs. Transition Change is an event, external Transition is a process, internal

Transition

Key Components Communication Skills Gap Analysis Training Manage Productivity Manage Productivity

Listen, then Communicate again Communication Communicate change & goals Communicate often Display goals Project updates, milestones, surveys Communicate firsts & successes Communicate multiple times, multiple ways Listen, then Communicate again

Skills Gap Analysis Skills Inventory Skills Required Legacy systems Input into mainframe Vendor specific File cabinet or index documents Singular role Limited analysis or metrics Skills Required Integrated ERP system Computer literate Internal & external collaboration Imaging & workflow Multi-dimensional role Data analysis & validation Get the Right People in the Right Chairs

Training: Before, During, & After Training: Pre-Implementation Developed Standard Operating Procedures (SOP’s) Business users become testers, result was Subject Matter Experts (SME’s) Training : Wave Specific AP Legacy users trained for each wave Weekly Q&A meetings War rooms created SME’s became bridge to end users Communicate end-to-end process

Training: Ongoing Interact Stretch Sustainability AP team bi-weekly meetings Lunch ‘n Learns Small group meetings – Open forum Small group ‘Imagination’ sessions Stretch TAPN AP Certification preparation & test Job Shadow - Gain different perspective Sustainability Simplify training materials as knowledge is gained Communicate system updates, retrain/refresh

Manage Productivity During Change Lead change by example Focus on things that can be controlled Look for early wins & recognize them Reward/reinforce the right attitudes & behaviors Focus on results with metrics & publish

Accounts Payable Before Change

We didn’t know what we didn’t know! Lessons Learned

The Good, the Bad, the Lessons Learned Good: Executive Sponsorship Bad: Gap between senior management & those closest to the work Lessons Learned: Communicate to all levels with appropriate frequency Communicate the What, the Why, the How Communicate in the users’ language Target the communications based on the level & role of user Communicate with honesty, enthusiasm & positivity

The Good, the Bad, the Lessons Learned Good: Change management tools were deployed Bad: Change management not fully understood Lessons Learned: Ensure all affected users are included Communicate relevant information more frequently Provide honest & timely information Involve the business in the testing & training early Do not promise normalcy Collaborate knowledge cross-functionally

The Good, the Bad, the Lessons Learned Good: Training team onsite Bad: Training team not on site long enough Lessons Learned: Provide on site support until users are self sufficient Update training as lessons are learned Communicate new lessons to all users Ensure there are enough trainers – Invest in the people Ensure trainers understand legacy processes to create bridge Create & maintain support network, super users

The Good, the Bad, the Lessons Learned Good: Training on the transactions Bad: Training did not include process training Lessons Learned: Start training with the end to end process Ensure trainers understand the new system & processes Train to the user’s role & accountability in the process Train with reality based data, scenarios, business specific Include any necessary reporting tools in training Create sustainable training as lessons learned, maintain

Ongoing Reflection Reinforce & embrace change; it does not stop Involve users to gain commitment Encourage imaginative solutions Internal Use

Questions

Paths to Continuous Payables Process Improvement Thank You! For further information on this topic, contact The Accounts Payable Network 2100 RiverEdge Parkway, Suite 1010 Atlanta, GA 30328 Contact: MemberCare@TheAPNetwork.com 866-827-6389 770-984-1184 www.TheAPNetwork.com May 22-23 -- Atlanta, GA