How Takeda accelerated the financial close process by nearly two weeks

The team also identified ways to help optimize the manual journal entry (MJE) process. They implemented multiple releases focused on automating key processes and developed an easy-to-use dashboard which provided more visibility on real-time statistics. Through improved controls, monitoring and reporting, combined with the standardization of global ways of working, the number of global MJEs was reduced by 75%, the equivalent of 45,000 productivity hours per year. 
 

Furthermore, Takeda aspired to simplify its enterprise resource planning (ERP) data journey into its consolidation system with the objective of reducing system complexity, thus enabling better data transparency and allowing users to spend more time on analytics and insights. Additionally, utilizing Takeda’s digital transformation allowed for improved process optimization which increased the transparency for financial data.

“The changes to our submission process are one of the most important initiatives for us to achieve our target of closing acceleration,” explained Nori Takeda, Chief Accounting Officer (CAO) at Takeda. “It was a great cross-functional team collaboration! And comprehensive training manuals for all users and standard operating procedures (SOPs) are valuable assets for us. Furthermore, this improvement enabled the Consolidation team to drive further process efficiencies to streamline the reporting process.”

The external reporting team focused on opportunities within the corporate reporting area in Japan by releasing a new platform, which reduced the manual work required to prepare high quality financial reports from a multi-week effort to just a few steps. Additionally, the preparation of some complex financial disclosures, such as revenue by product and region, is today automatically completed by pressing one button.
 

Over the last three years, the collaborative efforts of the Takeda finance community, Takeda’s Data, Digital and Technology (DD&T) organization and the EY team have helped to implement over 30 global initiatives. Bringing strong process experts, digital champions, and external best-practices together in one team, enabled people to work smarter, not harder, and to accelerate Takeda’s financial close process by nine workdays.
 

“This was a huge milestone accomplished,” said Sanjay Patel, Head of Takeda Business Solutions (TBS). “This would not be possible without the efforts of all the different groups involved, and really demonstrates the power of the finance operating model and each pillar doing their parts supported by our colleagues in Data, Digital & Technology. An example of one team, one vision, working without boundaries.”

Takeda’s next step is to deliver a continuous improvement framework incorporated within its record-to-disclose global process owner organization. The primary focus will be stabilizing and maximizing the benefits of the project that have been implemented over the last few years to ensure that the company’s finance organization will continue to be best-in-class for the future.

“During the past three years, within the scope of Project Quantum, I have seen an incredible level of engagement and support across Finance and TBS in challenging the status quo, thinking across silos, and reinventing our financial close processes, said Saroukos. “I am confident we can maintain the pace and enthusiasm that has helped us become a more agile finance organization!”

"Over the past three years there has been a tremendous effort by a combined Takeda and EY team, seamlessly working across the globe, in three different regions and time-zones (Japan, Europe and the US),” said Frederik Schmachtenberg, Partner for EY Financial Accounting Advisory Services. “Every team member pulled in the same direction, which made this significant advancement to a best-in-class close process possible".