"The project brought important results in terms of improving the process of planning and in terms of monitoring our profit/loss and financial positions. Furthermore, the project has triggered a process of change management within the organization: from focusing our operational controls mainly on the profit and loss statement, we have moved to forecasting our profit/loss and financial positions on the basis of individual customer jobs with a significant cut of manual operations by 50%.”
Marco Caucci Molara, Group Planning and Control Manager

The Astaldi Group required an evolved Corporate Performance Management system to manage its capital and cash-flow planning for individual client projects, monthly closing, consolidation, management reporting, budgeting and statutory consolidation in a single solution and single database.

Requirements

New qualitative analysis generated the following requirements:

• stringent profit-and-loss control through:
• constant monitoring of performance
• cross-currency management and analysis of foreign exchange differences
• profit-and-loss forecasting
• dynamic multi-scenario/currency analyses
• cash-flow planning and monitoring system capable of:
• planning cash-flow developments at project, company, sub-group and group levels
• supporting generation of rolling cash-flow forecasts
• generating of project balance sheets and related statements of sources-uses of funds and cash-flow statements to monitor invested capital
• creation of a risk management system capable of:
• hedging foreign exchange risk
• manage multi-scenario hypotheses
• manage cash pooling operations

Objectives

Project objectives required a single solution that:

• rationalized group Performance Management processes
• decentralized processes at the global level
• automated key processes through CPM functions
• managed innovations introduced with IAS/IFRS
• cut technical and IT maintenance costs (Total Cost of Ownership)

Results

Tagetik 3.0 makes it possible to easily generate monthly project forecasts by monitoring progress and profitability indicators. The reports generated give central management access to a performance scorecard offering an immediate overview of economic indicators, thus providing vital support for operational decisions. This enables regular communication at all levels, from the executive to project manager. Performance metrics are linked to an incentive model. The overall result has been to enhance the professional growth of those involved at all levels.

The Company

The Astaldi Group, founded in 1926, is one of the world's leading construction companies. In its home territory, Italy, Astaldi is a major player in the "General Contractor" market and a leader promoter of project financing initiatives related to large-scale civil engineering projects.

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