Lehto: Data tracking on different levels
Lehto Group is a Finnish construction sector group that focuses its operation on the utilization of the economically driven construction model it has developed. In economically driven construction, the implementation and design processes have been integrated to achieve cost benefits. The group turnover in 2020 was 545 million Euros.
Reliable profit forecasting in project business
The type of business for Lehto Group is very much project oriented – hundreds of projects are ongoing simultaneously. Revenue handling, budgeting, and forecasting just in Excel got too complicated. ”We wanted to work with more specific data and it was no longer possible just in Excel. Therefor we started to map out the possibilities of business planning systems”, tells Ulla Tuohino, Financial Controller at Lehto Group.
” I used Clausion solutions at my previous job. When I was struggling with Excel, I could not help myself thinking how I would have used business planning solution to fix things. I had not forgot Clausion when we started to find a solution for management accounting at Lehto.”
Data tracking on different levels
At Lehto, the group is divided into service units and those to business units handling dozens of projects simultaneously. The owners of business units are interested to see how projects going forward on the other hand Financial Controller Ulla Tuohino wants to see the data and numbers in group level. Thanks to Clausion solutions, the user can dive so deep into the data as it is necessary in one’s role. Lehto Group imports not only financial data but other data too into the Clausion solution – such as project probabilities and starting times. Tuohino admits that they could use the operational data much wider than they are currently. Nevertheless, the whole company can rely on that numbers are found in one place, regardless of the need is to track data closely or not. Forecasting possibilities Clausion offers have been highly appreciated at Lehto as they can always look the old forecast and compare that to latest one.
” Even though that we handle group consolidation with different system currently, it helps us a lot that for example Clausion solutions have ready-made ways to handle eliminating so it is done automatically. Additionally, the revenue recognition with IFRS and FAS are different, and it is on our interest to see both”, Ulla Tuohino tells.
” Development ideas and dialogue are beneficial for both parties.”
Ulla Tuohino admits being more active and enthusiastic main user and therefor has dived deeply into the Clausion solution. “There has been some minor pain points and we have noticed that some features we would like to have in planning system are still lacking. Having said that, all development ideas have been taken in with positive attitude. I encourage other customers to give feedback to their system providers. We, the customers are why the systems are developed for. It is highly beneficial for both parties that dialogue is ongoing and giving feedback and development ideas is possible”, Tuohino says.
” All in all, I have been very happy with Clausion and the cooperation has been well and smooth. The Clausion consultants are very experienced, and you can really see that in their work. It is great to have experts that have implement various solutions for all kind of companies for years.”Ulla Tuohino, Lehto Group
“Not to forget the project manager who brought in edge keeping in budget and schedule. This way the consultants were able to focus on what they do the best”, Tuohino continues.
ESEF-reporting and balance forecasting on to-do list
Now when profit forecasting has started to work smoothly for Lehto Group, next on the agenda is balance forecasting and cash flow forecasting. The company is constantly trying to find new ways to use data and numbers to business development. Also, ESEF-reporting will be done with Clausion solution. This should go smoothly as balance is imported into Clausion solution.
3 main reasons why Lehto Group uses Clausion solutions:
- Forecasting is easy despite hundreds of projects ongoing.
- Easy FAS / IFRS management.
- Seeing and managing the data from level that is necessary. Easy and safe to use from end-user perspective.