Bbc

Q&a: Richard Payne, BBC

(The last couple of years saw a major transformation to the Bbc - the biggest coordinator of the world with an annual budget of more of $6 billion. SSON Jamie Liddell speaks with the man overseeing a good party of that the transformation, Richard Payne, objectives of the program, the challenges it and his team did facing, the played role while subcontracting and offshoring, and which is next for the finance to the BBC).

SSON: Richard, on the last couple of years the function of finance of BBC was by a program of very significant transformation. Which was the objective of this program and which were the drivers behind him?

Richard Payne: There were two basic drivers behind the transformation in the BBC since 2006. The first driver was really a reduction in the finance cost, therefore an effectiveness objective. We judged this finance ran to about 2% of income, and we wanted to do it to lower unless 1% of income, that was a point of more fitting reference. For that was a driver key. The second driver key was that it was judged in 2005 that the BBC was about to to go by some big changes and some big transformation: there was negotiation of fresh permit but, in an important way, his response to numerical online broadcasting that was going to create some structural changes. If we needed a finance function that was able supports that.

SSON: And which was your own role?

RP: To allow me to give some context. There were two legs to the transformation: the one was a subcontracting retender; the other was a to restructure internal around a center of divided maintenance. IBM was named as the first office counsel of partnership for the internal transformation; I was an associated partner in IBM and of 2006 took the data of IBM in this process. If of 2006 by 2007 I was programs directing the internal project of transformation. Then in 2008 I joined the BBC and resumed now to run it operational of the center of divided maintenance and the subcontractor the contract, and I supports also the CFO Zarin Patel and the group the Day of Chris of financial inspector in the change program advances.

SSON: Of that you can give us a general general idea of the program in the terms was done, when?

RP: The program began really in 2005, when the vision and the basic framework for what were going to be been attained were exposed. There were five basic elements to the transformation. The first element was to create a direction explaining the divided ease in a place ae" not to London, but in a location lowers cost ae" that would support through 17 divisions. The departure point here this direction accounting was done in each of these 17 divisions, therefore a leg was to create a center of divided maintenance, and that was to be welcomed in Cardiff on the site of country of Wales of BBC.

A second element was the creation of a capacity of partner of finance in each of the divisions, therefore the organization of withheld finance in the divisions would be based on the matters accompanies the model. Troisia¨mement, our basis is SEVE R3, therefore the third wisp of this was to improve our capacity of SEVE; that we executed were a Portique of SEVE that rendered capable all users to have a sign on single through our property of SEVE. We introduced BPS to the SEVE ae" the matters planning the system ae" through our direction of cost of production, therefore we had an only tool that can the direction of cost of high bottom through all our projects (judge ourselves a program ae" a program of TV of content ae" to be a project); and SRM to manage a new catalog of acquisition.

And that that supported was the fourth leg, that was processes coil service out with the users, therefore the matter users through the BBC had been used in the past to the usage of their own unities of administration to do a lot of requests and the acquisition and so a lot of this changes is borne on the coil service by Portique of SEVE that we marked. And then the fifth item ae" that was an item key to this ae" was at retender our subcontractor the contract. We had a F&l'ampli; AN outsourcer of the mid- one 'the years 90, that was a to earth subcontracts, based next to the seat of BBC, and we now tendered this to be a contract at sea, and the intention there was to create a significant economy in does that, and also redaligner how we more better could associate with a partner.

SSON: With the advantage of decline that would you say were the biggest challenges than you met during the program? And did you recognize that these would be challenges before you have undertook the project?

RP: Yes, speed and the change ladder were not without his challengeae¦ An element key I suppose was the direction of gambler through 17 divisions: clearly to take their capacity of internal finance and convincing them that it all could be maintained of a central site was critical. We recognized that, and there was the resource of direction of a lot of gamblers put in this ae" more maybe than I tested on some other projects than I was implied in ae" to manage that.

Another the one was: in the conception of SEVE and the reconfiguration work, it closed the conception specifications in the time to be able to execute this ae" and again, considering the nature of what we did, that created the Portique of SEVE, and the implications that had through the matters, and the development of a tool project costing that influenced to right through them There had a lot of changes to right in top until the THE eleventh hour (and in fact certain of these continuous one always).

Another challenge ae" that we did not recognize probably to the time ae" was the true step of stabilization of the center of divided maintenance and the subcontractor the contract. I think that we could have been a not very naa¯ve ones in a hope that you cross the transition and come then to a point where, hed, of will work you: I think that the manuals are a small light on the stabilization phase, that is probably does not import what of 12 to 18 months, and that was certainly a big problem that we addressed for the last one 12 months, and I think that we bring that to an end.

SSON: Again in the decline there is does not import what would have done you differently if you could do it all again?

RP: Yes, the decline is one to interest the oneae¦ one of the sectors are that I think that we probably should have integrated the operational direction of the new environment far more in the transition phase. What we did were, we had efficiently a big team of transition that had of the consultant, the contractors and some people of BBC, that put back to a team operational that was recruited and the team high. In the decline that we should have done are has the preceding operational team and in fact had far more possession of this. That was a key the one.

Return to my points around the stabilization: I think that we should have planned to the resource and put more investment in the stabilization period; that would have done life a little easier. The other not at all is if we should have staggered these changes. We tried to do ae" we did, grieved! ae" The process, the systems, the people and all subcontractor in a big bang. Should we have staggered it? Again, interesting decline: the problem would have been that we would not have attained some dates limit that we wanted to attain, obtain all this does before the reorganization of BBC that arrived in 2007 under the brand of Creative Futures. For that is one to interest the one, this the one.

One of my colleagues in the BBC pointed out itself that when I was consultant that "if you had said us that it was to go difficult to is, maybe we would not have done it! But then you would not have had a workae¦ This is an interesting cycleae¦"

SSON: You mentioned the subcontracting again there, and did it seems as the subcontracting was a massive factor in the equation of general transformation: why the BBC decide descend this road instead of looking at to keep these internal processes?

RP: Well, the subcontracting decision really was done return in the mid- one 'the years 90, and an interpretation of why the BBC went for subcontract then was it desired return to execute a new ERP and chose R3, therefore in the mi" 'the years 90 it crossed the change to execute a new system and recognized also as it needed to consolidate a lot of F&l' amplifier; A process. My interpretation is that the decision then was done that the it was easier to do that in a subcontractor the relation instead of trying to do it internal. If the decision then was done and the people of BBC were transferred in the subcontractor the operation, and the outsourcer heavily was engaged in the implementation of R3.

Advancing ae" as the party of this transformation of Future Finance, we recognized that there was a good occasion here for offshoring and that we indicative could cut costs by around of 50% by takes this step. If we felt that that having obtained a subcontractor the mentality, and the structure established, that we could enter then into a transition in a new relation at sea that significantly would reduce the cost.

SSON: Without betraying the commercial confidence, evidently, you can give us some idea of how you chose your supplier in the criterion terms that you looked for?

RP: We crossed a full process blown of acquisition and an evaluation; I think that the principal criteria were really the capacity, the price ae" evidently, because that was a driver key for this ae" the culture and an engagement to change. The interaction of these four factors, I would dispute myself, was key in the taken one of final decision.

SSON: So which is next for Finances to the BBC? Do how much the can of more of transformation undertake you?

RP: What we did let us are addressed the objective of effectiveness, therefore we reduced significantly the cost of finance. Where we go after being the program of effectiveness of finance, and there are some points to this. The one is, are adding us the value as a finance function in the check risk in the BBC, for that is a sector that we are continually vigilant to. We tested a change in the governance structure; the Confidence of BBC was created in 2007, and again the manner that the BBC was run changed, therefore we need to assure itself that we exercise seem the financial direction under this structure. We will continue on the effectiveness trip under the improvement banner continues, and we continually look for more complete effectiveness.

Another sector is that of capacity; notably in our finance accompanies the model, we need to guarantee that we have the just capacities working with the matter direction in our divisions, furnish the fitting level of insight and the financial counsel. The fourth sector is we will look at our SEVE and the property of systems of general finance, because we need to update SEVE ae" we are not the 7 Versions nevertheless ae" and we need that do it considedrer-il the future of our is integrated return the office? We set up ourselves on the finance function; now we need to look at on a wider ladder: which is the occasion for the biggest integration through our rear office, and how we apply our system landscape thereto?

SSON: So a lot of works already does, but a lot of works always to do, by the sound of himae¦

RP: Yes, I think that stability will be here a constant state of change ae" that is the same nature of the BBC, and why it this is a difficult place to be!

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