Lappia’s Big Organization Change
and how FPM made the complicated easy
Vocational college Lappia has used FPM since 2011, but their history with Clausion’s financial planning products is much longer – over 20 years.
“We were happy with FPM’s predecessors Target and Business Planning which made upgrading to FPM an easy choice”, says Lappia’s Controller Marianne Sadinmaa.
Year 2018 brought changes to Lappia in the form of an organization change and a vocational education reform. Lappia’s management accounting and financial consolidation were reorganized which meant that FPM’s whole organization structure had to be redesigned.
Planning the new structure was a long process, and the complicated implementation was a big effort. Clausion’s consultant played an important role in the project by coming up with great solutions for Lappia’s needs. The new organization structure was completely customized for Lappia – no other education provider in Finland has the exact same structure.
Although the project wasn’t all smooth sailing and there were some challenges and backtracking along the way, the end result – an easy-to use solution and clear structure – receives high marks from Lappia.
“At the moment, we get exactly the desired level of data according to the organization structure”, says Lappia’s Finance Director Juha Kallo.
The development project required a lot of work, but the system started paying back very quickly.
“We started the development from point zero in February, and in May we already got relevant actual data in the unit level according to the new organization structure.”
A groundbreaking solution
As part of the FPM development project, Lappia also wanted to make some changes that would help with the reporting required by the Finnish National Agency for Education.
The Finnish National Agency for Education conducts an extensive cost inquiry yearly to collect data about the costs and revenue of the state subsidy system. The data is saved in a web-based system using special web forms, and Lappia has a total of 27 different forms to fill in.
A separate hierarchy was created in Lappia’s FPM system based on the cost structure of the Finnish National Agency for Education – a unit structure that matches the cost inquiry. Together with Clausion’s consultant, row-specific data corresponding to the forms were created, so that data can be transferred directly from specific accounts or account combinations in the cost center structure to the correct places on the forms, and the forms can then be printed out on paper.
FPM has significantly decreased the need for manual work and made work that was previously done in Excel easier.
“You could say that this part of the solution is truly groundbreaking. There hasn’t been a structure this fully automated before”, Kallo states.
Precision to financial planning
Lappia has been happy with their new, multifaceted FPM system. Data can now be retrieved from the basic organization structure for different internal purposes and functions at Lappia. In addition, the customization built on the basic structure enables reporting data required by the Finnish National Agency for Education.
Lappia has about 40 FPM end users and 3 administrator users. Many of them have been using the system for a long time, but new users have also learned the system quickly.
FPM has significantly enhanced Lappia’s financial planning by helping to streamline their internal processes.
“Estimates and budgets have become very accurate after we have been able to deploy creating estimates to the unit level. When the estimates are done in phases, we can control the work better. Financial plans are ready on time, and we can make sure that the work proceeds as agreed and can promptly react to any problems”, Kallo sums up.
Even though FPM is already working very well for Lappia, there are still some additional development needs. For example, Lappia is planning to tie their financial planning system more firmly with the processes of the Finnish National Agency for Education.