Transitioning a Healthcare Company to a Global Foundational System for Consolidation and FP&A Capabilities
Challenge
Orchid Orthopedics, a global medical device company, wanted to transition from its current corporate performance management (CPM) application and manual financial planning and analysis (FP&A) processes to an automated solution that would enable more effective operations and planning. To meet its current and future FP&A needs, the company sought to establish a single, standard chart of accounts (COAs) while retaining visibility into the disparate COAs for local entities. Additionally, the company needed to establish a foundation for the collection, consolidation, and analysis of monthly close data, as well as a driver-based model for the budget, current year’s forecast, rolling forecast, and long-range plan.
With OneStream in place, Orchid Orthopedics now has a global foundational system that houses its full consolidation and FP&A capabilities across all entities.
How we helped
Orchid Orthopedics engaged Riveron to select and implement the automated OneStream XF platform, with the goal of achieving streamlined data integration and workflow management and robust reporting and analytics.
Riveron developed a global consolidation process controlled by individual users at the entity level and, leveraging the extensibility of OneStream, helped the company obtain a full, detailed view of the enterprise across over 30 unique COAs. We then integrated the COAs in a single, centralized place to enable business unit-level reporting while preserving the consolidated corporate view.
To introduce standardization and reduce complexity for users, our team developed a global, driver-based budgeting and forecasting model at both the individual entity and department levels to support business planning and model forecast variations. We also developed a granular, driver-based model for the entire trial balance and related cashflow reporting.
For more flexibility and on-the-fly analysis, Riveron created a dynamic, metadata-driven cashflow model integrating data from the P&L, balance sheet, and roll forward schedules. This model enables users to change drivers and run reports without the need to re-consolidate or refresh the cube view for results. Instead, the cashflow model will automatically factor in changes with little to no maintenance.
Additionally, Riveron established individual, employee-level forecasts using the People Planning Marketplace solution. This solution integrates with the human capital management software and enables analysis of the drivers for all components of compensation for more than 700 employees.
Results
With OneStream in place, Orchid Orthopedics now has a global foundational system that houses its full consolidation and FP&A capabilities across all entities.
Efficiency has been key. Transitioning to an automated system has reduced the time associated with the month-end close by approximately 20% and resulted in significant reductions in the time needed for forecasting, model versioning, and analysis. For example, the forecast process now takes a few days compared to weeks. In addition, the company has been able to significantly increase its analytics capabilities as well as avoid costly errors associated with the previously manual processes.
Equally important, by leveraging the extensibility of the OneStream platform, Orchid Orthopedics transformed this effort from a corporate-driven initiative into a company-wide platform owned by the finance and accounting departments. This led to faster user adoption and consistency in processes and standards, enabling the company to extract greater value from the system beyond what would have been obtained from its use solely within the core corporate team.