MANAGING SCALE AND COMPLEXITY THROUGH CROSS-DIVISIONAL AND CROSS-FUNCTIONAL COLLABORATIO
To undertake the mammoth task of IFRS 16 implementation, DPDHL Group worked with its subsidiary DHL Consulting. Over a period of 18 months, a core team of both corporate accountants and management consultants researched, recommended, and spearheaded a global implementation project, resulting in IFRS 16 compliance a full year ahead of the regulatory deadline – an extraordinary accomplishment. A projected positive EBIT impact in the low three-digit million euro range and a EUR +9 bn impact on the DPDHL Group 2018 balance sheet of additional assets and liabilities clearly illustrate the magnitude of this project.
The scale and complexity of this group-wide implementation cannot be overstated. Around 400 reporting units were involved on all continents with considerable effort to align all four of the DPDHL Group divisions and corporate center. DHL Consulting ensured excellence in cross-divisional and cross-functional cooperation with multiple stakeholders; for example, there were dozens of workstream meetings with all divisions and corporate representatives. Furthermore, many workshops were conducted with real estate, procurement and other experts to discuss upcoming changes and to collaboratively develop the best approaches. Overarching aims were to ensure compliance with the new accounting standards while limiting the additional workload for the finance and accounting teams. This was achieved by automating as much as possible through the creation of interfaces and standardized processes.
The project team organized a vast number of online and in-person training sessions around the globe, and supported the reporting units to enter more than 27,000 contracts for more than 37,000 assets into a new self-developed lease database. DPDHL Group Corporate Accounting and DHL Consulting were also responsible for developing guidelines, standard processes, workflows, and many more materials including a comprehensive transactional accounting manual. They also introduced the new role of a Lease Coordinator across DPDHL Group – an indispensable function in each reporting unit tasked with responding to all lease-related questions and issues and ensuring data quality.