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The Rest of the Story

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The Rest of the Story The Rest of the Story: Tribune's Path to Cost Savings and Process Improvement through Collaborative Outsourcing Blue Lynx Media, Dan Sawyers, SVP/General Manager Dentons, Ross Docksey, Partner EXL, Vince Sparrow, Vice President and Client Executive LL FA R E V N E D 4 1 0 2 I T SU MM www.sig.org/eval Evaluation How-to: Why? How? Option 1: App . Your feedback drives 1. Select Schedule SIG Event content 2. Select Schedule by Day . By signing and 3. Select Day 4. Select Session submitting your 5. Scroll to Description evaluation, you are 6. Click on the Evaluation link automatically entered Option 2: Browser into a prize drawing 1. Go to www.sig.org/eval 2. Select Session (#26) LL FA R E V N E D 4 1 0 2 I T SU MM SIG Global Executive Summit The Rest of the Story: Speaker: Dan Sawyers, SVP & GM – Blue Lynx Media, a Division of Tribune Publishing Speaker: Vince Sparrow, Vice President and Client Executive, Finance & Accounting COE – EXL Service Moderator: Ross Docksey, Partner – Dentons LLP 3 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Agenda Overview of Blue Lynx Media Overview of EXL Service BLM SSC Challenges / Opportunities Scope and Migration Service Provider vs Service Partner Fostering Innovation and Partnering Update – a year in 4 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Tribune Publishing / Blue Lynx Media Company Profile Tribune Publishing (NYSE: TPUB) is the nation's second-largest newspaper publisher, with ten daily newspapers and commuter tabloids including Chicago Tribune, Los Angeles Times, Hartford Courant, Orlando Sentinel, South Florida Sun-Sentinel and Baltimore Sun, among others. Blue Lynx Media LLC, a subsidiary of Tribune Publishing, provides integrated solutions for clients’ back-office operations including general accounting and reporting, billing, credit, collections, payables and payroll. Blue Lynx handles specialized administrative functions utilizing streamlined processes to minimize transactional inefficiencies and facilitate a strategic advantage in data analysis. Clients The Baltimore Sun The Morning Call Carroll County Times Orlando Sentinel The Capital RedEye Chicago Magazine Sun Sentinel Chicago Tribune Tidewater Review Daily Press Tribune Direct Hartford Courant Tribune Digital Hoy Tribune Media Services Los Angeles Times The Virginia Gazette 5 | October 11, 2014 | © 2014 ExlService Holdings, Inc. * Financial as on 2012 Blue Lynx Media Our Company Established in 2010 Staff of 190+ including outsourced FTE Our Mission Enable customers, internal business partners and vendors to meet their business needs through continuous improvement by: + Processing financial transactions accurately and efficiently + Ensuring financial integrity + Providing innovative solutions + Making it easy to do business with us + Creating a positive work environment 6 | October 11, 2014 | © 2014 ExlService Holdings, Inc. EXL at a Glance We drive value for clients by delivering business process solutions that integrate operations management, analytics and technology EXLS Awards & Recognition NASDAQ listed Positioned as a Awarded to our Best Employer - “Leader” for Proprietary Business The Aon Finance and EXLerator framework Hewitt Voice of $490- Accounting Employee Award Our Business 503MM Operations Management Business Impact Delivered for Clients 2014 Revenue Manufacturing Guidance Insurance Healthcare Finance & Accounting $100M 2 D a y s 55% 270+ Banking & Financial Clients Services eliminated in Close cycle Call volume Travel risk exposure time. reduced Transportation, 23,000+ & Logistics Professionals Utilities Specialized services 50% 50% 36% 25.3% Decision Analytics exception reduced cost productivity Revenue CAGR Finance Transformation rates reduced of compliance improvement from Operations & Process 2006-2013 Excellence 7 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Blue Lynx Media Challenges / Opportunities -- 2013 Challenges Opportunities Greenfield Reengineer operation end-to-end High operating processes cost structure Create No SLAs or partnerships with effective KPIs internal customers Operational issues / customer Create partnerships dissatisfaction with critical vendors Service providers vs. service partners + Treated as a service provider by our customers + Treated vendors as service providers 8 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Blue Lynx Media / EXL Service Scope Overall scope Accounts payable for both Tribune Publishing and Tribune Media Accounts receivable for Tribune Publishing + Credit management + Collections + Customer service + Cash applications + Disputes and deductions management General accounting for Tribune Publishing + General accounting + Account reconciliations + Reporting Payroll for both Tribune Publishing and Tribune Media Internal audit / compliance support 9 | October 11, 2014 | © 2014 ExlService Holdings, Inc. The Initial Migration Lots of moving parts Outsourced smaller accounting function from Tribune Outsourced payroll Chicago with part of process to EXL on site in Dallas Outsourced Bangalore and part with EXL 50% of general Bangalore accounting from Dallas to EXL Bangalore Shifted collections and related Shifted cash customer service applications from one provider from the same with operations in provider with Central America operations in to EXL Manila India to EXL Bangalore Implementing new version of collections system 10 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Polling Question Number 1 Do your current shared services organization operate globally, including using third party providers Yes – we manage the overall results the highest level interactions with our internal customers and utilize third parties to provide most of the services Somewhat – we do utilize third parties but on a limited basis Not yet – we really haven’t used third parties but are looking to explore that Not at all – we provide all services internally 11 | October 11, 2014 | © 2014 ExlService Holdings, Inc. The Initial Migration What worked well Spirit of partnership and openness Communication within broader Tribune – has filtered down well organization CommunicationCommunication ofof ownershipownership UseUse ofof EXLEXL FinanceFinance TransformationTransformation –– thisthis isis youryour teamteam andand youyou areare teamteam earlyearly onon toto digdig intointo oneone responsibleresponsible forfor theirtheir successsuccess concerningconcerning areaarea Relatively large migration teams to Strong PMO team from both BLM and facilitate a lower risk migration EXL Significant investment in sending Good communications between teams Significant investment in sending Good communications between teams ongoing BLM managers to be with EXL has already yielded process ongoing BLM managers to be with EXL has already yielded process teams at Go Live improvements and improved reporting teams at Go Live improvements and improved reporting What could have been better Understanding cultural differences Mid level management buy in Training -- could have used more 12 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Polling Question Number 2 What level of communication have you engaged in when you were trying to improve processes? Active and frequent engagement at all levels of the organization, particularly with internal customers, using multiple communication media (meetings, emails, postings) Regular “town hall” meetings with key executives outside of the shared services organization to understand their concerns and share developments Occasional meetings only as issues came up and emails / postings primarily related to policy and process changes Very infrequent communications of any kind 13 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Highlights in the Last 12 Months It’s been busy!! Completed implementation of SunGard GETPAID system for AR / Collections Managed impact of several acquisitions Tribune Publishing spun out of Tribune Company, with significant impacts to AP and Payroll teams Going live very soon on new HRIS system Worked through transition speed bumps and some related personnel changes – on both sides Dug much deeper into existing processes and, particularly, the up stream processes 14 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Ongoing Improvements What has worked well Spirit of partnership and openness Communication within broader Tribune – continues and has generally filtered organization has continued to get down well even better – partnering with Sales on collections as an example Communication of ownership Use of EXL Finance Transformation – this is your team and you are team to dig into up stream order entry responsible for their success processes and planned visit with ad agency Remote migration for some follow on Continued regular discussions with expansions senior management from both BLM and EXL Continued investment in sending BLM Good communications between teams managers to be with EXL teams as well continues to drive process as bringing senior EXL manager in improvements Manila to Dallas 15 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Ongoing Improvements What could improve Encourage “partner” mentality Management incentive alignment Navigating cultural issues Monitoring external customers 16 | October 11, 2014 | © 2014 ExlService Holdings, Inc. Accounts Payable Key Highlights Handled 50% volume increases due to acquisitions. Average accuracy in the past 11 months period was 99.81%. Identified inappropriate use of company Corporate card – driving higher compliance . Created email template in the
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