P2P Transformation: Valentina Smirnova's Insights into AXA Partners' Journey

Introduction by Cevinio:

Transforming P2P is a thrilling journey filled with both opportunities and challenges. Understanding them is crucial for those embarking on this quest, helping them effectively navigate adversities and achieve desired outcomes. At Cevinio, we are dedicated to assisting finance leaders and teams in reaching their AP goals. To fulfill this commitment, we aim to provide value by not only offering practical support but also by inspiring you with insights and experiences from other leaders and experts in the field.

Today, we are delighted to welcome Valentina Smirnova to share her invaluable insights and experiences from leading AXA Partners' transformation journey. Thank you, Valentina, for joining us. Your expertise is greatly appreciated, and we look forward to gaining valuable knowledge from your journey.

P2P Transformation: Valentina Smirnova's Insights into AXA Partners' Journey

I'm grateful to Cevinio for the opportunity to share my thoughts on finance transformation, particularly in the area of P2P. Although there isn't a partnership between AXA and Cevinio, their invitation has prompted me to reflect on the ongoing finance transformation at AXA Partners, especially our journey in implementing a P2P solution to streamline processes across our global presence in over 20 countries.

Pursuing excellence in Procure-to-Pay

The decision to implement a P2P solution is born out of our commitment to enhancing operations and gaining clear visibility into our outgoings. It's not just about streamlining processes, but also about delving deeper into the efficiencies of our AP processes. As part of this journey, we are exploring the adoption of an AI-based "add-on" to further enhance our P2P function. By enabling ourselves to process incoming invoices in different formats more effectively, we expect to improve overall efficiency within each local AP team.

This project not only introduces a new solution but also brings about a significant change in the way people deal with P2P processes, both within and outside of the Finance function. As we navigate this transformation, it is crucial for us to consider the impact on both the solution and people change management, ensuring that our teams are equipped and supported throughout the transition.

Why start your P2P transformation journey?

When it comes to reviewing AP processes and investing in P2P solutions, several motivations come to mind. These aren't groundbreaking, but they hold true in my experience:

1. Enhanced Efficiency: Optimizing AP processes can reduce manual tasks and streamline workflows, allowing teams to focus on higher-value activities.
   
   In the realm of accounts payable, I would suggest to look into provider/vendor relationship management as a prime example of high-value activities. This involves scrutinizing pricing, payment terms and conditions, as well as incentives for timely payments, such as rebates.
   
   
2. Cost Savings: Well-designed AP processes and the right P2P solutions for your company can lead to cost savings through reduced errors, faster invoice processing, and improved cash flow management.
   
   Examples of cost savings realization include the reduction of errors in invoice processing, which can mitigate the requirement for expensive rectification and reprocessing. Moreover, expedited processing can enable access to early payment discounts and help avert late payment penalties. Furthermore, the enhancement of cash flow management through efficient accounts payable practices can contribute to diminished financial costs and an overall improvement in financial performance.
   
   
3. Data Visibility and Control: Investing in P2P software provides greater visibility into spending and financial commitments, enabling better control over cash flow and improved decision-making.
   
   
4. Compliance and Risk Management: A modern AP invoice processing helps ensure compliance with regulations and internal policies while mitigating the risk of fraud and errors.
   
   
5. Strategic Insights: Leveraging P2P solutions provides strategic insights into spending patterns, supplier relationships, and procurement strategies, enabling informed decision-making aligned with broader business objectives.
   
   I would suggest considering the following Key Performance Indicators (KPIs) to include: purchase order cycle time, invoice processing time, and the percentage of early payment discounts captured. Additionally, KPIs related to supplier relationships, such as vendor response time, supplier satisfaction scores, and percentage of on-time payments, provide valuable insights. Moreover, KPIs associated with procurement strategies, such as purchase requisition accuracy, contract compliance, and purchase order cycle time, contribute to informed decision-making aligned with broader business objectives.

How to successfully navigate the change management challenge

Change management is a critical aspect of our finance transformation journey at AXA Partners. The implementation of a P2P solution and the adoption of AI-based enhancements introduce new tools and processes, necessitating a significant shift in the way our teams operate. Properly handled change initiatives can resolve several challenges and create a supportive environment that empowers our teams to embrace the upcoming transformations with confidence and readiness.

When managing change on a global scale, my lessons from previous experience are communication, communication and communication. It's essential to foster open communication and engagement across all levels of the organization. Although some tips and tricks may seem commonplace, based on my experience, they are crucial not to overlook, hence worth mentioning again.

• Clear Communication: Ensure that the reasons for change, its potential impact, and the desired outcomes are communicated clearly and consistently to all employees across different locations and cultures.
  
  
• Local Champions: Identify and empower local change champions within each region to drive the change process, as they understand the unique dynamics and challenges of their respective areas - it is your choice how to call it Local Champions, Key Business Users, Change Champions, Change Ambassadors, Agents of Change – all depends on your company culture, language and norms.
  
  
• Cultural Sensitivity: Consider the cultural nuances and differences in work practices, communication styles, and attitudes towards change in each region, and tailor change initiatives accordingly. Always have a trusted advisor with good understanding of each local culture to be able to adjust and adapt your style and approach – it will pay you back handsomely!
  
  
• Training and Support: Provide comprehensive training programs and support mechanisms to help employees adapt to new processes, technologies, and ways of working. It doesn’t really matter if it is train the trainer or train everyone approach, as long as it is clearly agreed and actioned – that what’s matter!
  
  
• Feedback Loops: Establish feedback mechanisms that allow employees from diverse geographical locations to share their concerns, ideas, and suggestions regarding the change in a safe way, and incorporate this feedback into the change management strategy.
  
  
• Change Leadership: Develop a strong network of change leaders who can effectively guide and support employees through the change process, offering mentorship and motivation. It doesn’t replace or duplicate your network of Local Champions, it is more of reinforcement, motivational and directional support.
  
  
• And of course - Celebrate Success: Acknowledge and celebrate milestones and successes achieved at different global locations, reinforcing a sense of unity and shared purpose across the organization.

Working with those components consistently often helped me to navigate change on a global scale more effectively, fostering a culture of agility, adaptability, and collaboration.

Did we achieve perfection every time? Certainly not. However, our teams consistently triumphed throughout the change process, securing victories by addressing pain points, enhancing processes, and recognizing the significance behind everyday tasks. These small triumphs enabled teams to embrace change in a more wholesome and sustainable manner, as they played an integral role in driving the change itself.

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