Moving from financial management based on numerous Excel files to centralized and automated processes: this is the choice made by Mission Health Communities, a US operator specializing in senior living communities and care and rehabilitation facilities. By deploying the Prophix EPM solution, the company gradually simplified its financial operations, improved access to data and achieved a 110% return on investment in 18 months, according to the assessment presented by the vendor.
A financial organization held back by Excel
Operating across several US states, Mission Health Communities had to coordinate the financial management of more than 30 facilities. Budget preparation relied primarily on Excel, with different templates depending on the site, numerous exchanges between local teams and headquarters, and risks of errors and duplicate data.
This organization also made reporting and performance analysis more difficult. To obtain certain information, teams had to contact the facilities and various departments, limiting their ability to quickly monitor financial indicators and identify variances.
In response to these challenges, the company began reviewing its management tools. Its objective was to establish a centralized data source, improve the reliability of its reporting and better adapt its financial processes to the specific requirements of its business.
Prophix to centralize and automate financial processes
At the beginning of 2019, Mission Health Communities evaluated several solutions, including Workday Adaptive Planning and Prophix Cloud. The company ultimately selected Prophix in May 2019, particularly because of its accessible interface, analytical capabilities and reporting templates available from the outset of deployment.
Implementation took two months. In August 2019, Mission Health Communities began using the platform for its main financial management and reporting processes, as well as compensation planning.
Teams were then able to view data, comment on information and manage approvals directly in the tool. Centralizing budgets also eliminated part of the manual work involved in consolidating files submitted by the facilities.
This change transformed the role of the finance teams. Beyond producing reports, they were able to devote more time to variance analysis, identifying cost drivers and supporting management decisions.
Measurable gains in day-to-day operations
The initial benefits affected several processes. The monthly close was accelerated by nearly 15%, while budget preparation was reduced from four to three weeks. The time spent reviewing budgets, meanwhile, decreased by 66%.
The platform also improved access to information. Employees can directly view the data they need for their work, without systematically having to go through the accounting department. The availability of up-to-date indicators and variance analyses therefore contributes to greater visibility into facility performance.
However, Prophix was not limited to reporting and budgeting. In 2020, during the COVID-19 pandemic, Mission Health Communities developed a tracking model for its personal protective equipment. The company then needed to monitor the inventories of several facilities, track their consumption and better control the associated costs.
According to Prophix, this model was designed and deployed in three days. The vendor estimates that this initiative avoided more than 200 000 dollars in personnel costs by limiting the need for the resources that would have been required to carry out this work using the existing Excel processes.
A 110% return on investment in 18 months
Beyond the operational gains, Mission Health Communities assessed the economic impact of its project. The analysis presented by Prophix takes into account software, personnel, professional services and training costs over a three-year period.
The benefits considered include personnel savings related to tracking personal protective equipment, as well as time savings achieved in reporting, budgeting and the financial close.
On this basis, Prophix indicates that Mission Health Communities achieved a 110% return on investment in just 18 months.
This result illustrates the value of an EPM approach that is not limited to automating isolated tasks. By centralizing data and harmonizing processes, a management platform can also improve the quality of financial information, facilitate collaboration and enable teams to focus more on analysis.
The experience of Mission Health Communities thus shows how evolving financial management tools can deliver tangible gains, provided they address the organization’s actual operational challenges.
source: Prophix
