Unknown Speaker 0:00:06.1:
Okay, great. Thanks again for joining us for our next session. So I'm proud to present Jeremy Diamond, the financial and business services lead at Anaplan, to introduce our panel. So thanks again for attending this session.
Jeremy Diamond 0:00:20.6:
Hi everybody. Feel free to come on up. We're a friendly bunch. Plenty of seats, so find your seats. Come on in guys. So thank you. I'm Jeremy Diamond, I look after Anaplan's financial services practice. If we move to the next slide, I'd like to introduce my esteemed panel. Dana, we'll start with you.
Dana Clark 0:00:44.0:
Yes, Dana Clark. I'm vice president of portfolio management of the real estate group at Bain Capital.
Dylan Colliflower 0:00:49.1:
I'm Dylan Colliflower. That's my real last name. I'm a manager at Alpha Alternatives in their EPM practice.
Jeremy Diamond 0:00:58.3:
Just don't ask them to respond to their initials. They'll both respond - DC. I don't know who was here for the keynote, but I think Joe did a nice job understanding people's experience at Anaplan Connect. Raise a hand. I'm going to call on you. Is anyone a first time Anaplan Connect attendee? All right, welcome. Boston, so Bain Capital, the next slide probably needs no introduction in Boston, but before we get into who Bain is, Boston people raise your hands. All right, three-quarters of the room. Anyone north, Portsmouth, Portland Maine? Anyone Port, my wife's hometown? No Mainers? Anyone in the Midwest where I'm from? I live in Chicago. Right. West coast? Right, that should cover it. Fantastic. How about experience with Anaplan? So early customers, less than a year? Anybody new? Anybody not a customer? Right, everyone's a customer. How about two years or more? Okay, keep your hands up, five years or more? Okay, so you've seen some evolution. Hopefully, the AB strategy is something new and innovative. Good and partners. Any other partners out there other than Alpha? Great, welcome. We can't make it happen without our partners. Okay, as I said, Bain probably needs no introduction. Dana, if you just walk us through high-level who Bain Capital is.
Dana Clark 0:02:38.2:
Yes, sure. So Bain Capital is made up of over a thousand investment professionals. Obviously, their bread and butter is private equity, but over the years they've grown into other sectors, real estate being one slice of that and a rapidly growing slice. So for me specifically, the real estate group focused on the equity planning or real estate bonds, the risk profile of our funds, the composition of our funds and performance returns, yields and ultimately what we share with our LPs and investors.
Jeremy Diamond 0:03:09.9:
So that's how planning comes into your role.
Dana Clark 0:03:11.8:
That's how planning comes into the role.
Jeremy Diamond 0:03:12.9:
Can you tell the crew how long you've been with Bain?
Dana Clark 0:03:15.1:
I've been with Bain three years.
Jeremy Diamond 0:03:17.0:
Okay, well let's go to the next slide. When you arrived what did you find?
Dana Clark 0:03:22.9:
So I'll tell a quick story. So the first day I was in onboarding, and my manager caught me, and he emailed one of the admins and said, 'Make sure Dana gets a desktop on top of his laptop because he's going to need a high-powered machine to be able to open up the fund model.' My immediate reaction was oh my God what did I sign up for? The reality of it was this was a massive Excel model that had hundreds of tabs in it with lots of different calculations and crashed my computer every time I tried to close it. By the end of the first week, my boss asked me, 'How did the fund model go? How do you like it? What do you think of it?' I was like, 'Look, it's great. It's super sophisticated, but it should not be in Excel.' So that started the conversation, and it took us a little while to get to where we ultimately have, but this is what our process looked like and each one of these steps was a completely manual process. Getting our historical data into the old excel fund model and getting the information from our third parties and JV partners into the fund model took a month-and-a-half before it even began. This was a five to six-month process that we ran our roll forwards which we do twice a year because we can only do it every six months because it took so long and we knew that we had to change that. So I had had experience in my prior life working with Hyperion and I knew of the capability of EPM. I am no way a technology guy. I work well with it, but I knew we could do it where we could get and so that's where we started the conversation.
Jeremy Diamond 0:04:53.1:
Got it. So clearly there were some challenges. There was a disconnected framework. Planning took way too long. It was too manual. Go back to - that's the [unclear word 0:05:04.7] slide. Is anybody's blood pressure rising? Does this make anybody uncomfortable? There's a solve to this by the end of this panel, but I think that's a classic illustration of disconnected manual processes needing a supercomputer on top of your laptop.
Dana Clark 0:05:25.9:
Absolutely, and maybe go to the next slide, but the one part that I didn't hit on is that not only was everything in Excel, but it was completely open to risk. What I mean by that is we had our deal team who wanted to show certain returns and certain targets that they were expected to meet for their own benefit, but from a portfolio management perspective where you want consistency and want to know what the true answer is so you can actually manage the portfolio and understand where the life of a fund ends, we couldn't do that because people were being able to change formulas. Some of it was good. Some of it was bad, but our Excel file was littered with those purple triangles in the corner and little notes that you had to follow to try to figure out what was going on. So yes, there were a lot of problems.
Jeremy Diamond 0:06:08.7:
So I was going to ask how it led to lack of collaboration between the teams. In some ways there was collaboration but that opened a ton of risk because people had access to the data files.
Dana Clark 0:06:20.3:
Complete lack of collaboration. In fact, there was a lot of tension I would say because we would present the number. We would fix the formula that they had changed because they'd say, 'That's not the right number.' We'd say, 'No, it is. You changed your numbers.' So there was a lot of back and forth. There was no control over anything. So yes, it was the blame game - who is right and who is going to win the argument again.
Jeremy Diamond 0:06:39.8:
Okay, so you're sitting on this pile of inefficiency. Let's move to process or at least the future state of the process. I think we know what it looked like before Anaplan. Is there anything else you want to comment on there?
Dana Clark 0:06:56.5:
No, no, that's perfect.
Jeremy Diamond 0:06:57.8:
Okay, so let's move to objectives. What did you want to solve?
Dana Clark 0:07:02.8:
So this is our end state, and this obviously is much better than the slide you just saw before. I should say that we knew that we could automate a lot of these steps or at least I knew we could automate a lot of those steps. I think our IT team knew they could automate a lot of these steps. I just had no clue how we were going to get there. I know it needed to be in a cloud-based solution. I knew we needed to have more control over what we were putting in output. I also wanted to be able to finally take the data we had and do more with it to be able to sensitize it. To be able to say, 'What if this happens? How does our fund look?' We couldn't do that, because every little change took us weeks and weeks to put together even just to get our basic reporting done. So I knew what we wanted. I didn't know how we could get there.
Jeremy Diamond 0:07:42.7:
So if you flip back two slides before.
Dana Clark 0:07:47.3:
Yes, two slides.
Jeremy Diamond 0:07:48.7:
So for the non-programmers in the room, that's a lot of boxes. You've got about half the boxes here, so that's a net improvement. What were some of the non-negotiables or outcomes you were looking to get that ultimately led you to explore Anaplan as a solution?
Dana Clark 0:08:09.2:
The number one thing - and I partnered well with our finance and IT team - but the number one thing, the frustration that I felt - I felt it for the finance team being in a role like that in my previous life - but I wanted automation of historicals. That was step one. Right, I wanted data to flow automatically. I don't want finance to have to go in there and audit it because that should be a simple step. Let's just get data from one place to another so we can have our starting point. That was the key piece. Then, step two was, okay we want to get - as I mentioned multiple times and is a consistent theme is - we want to get the forecast data in the system, and we want it all aggregated the right way. We want all the calculations to be consistent, and we want flexibility to do more with it in the future. So those were really the three key goals.
Jeremy Diamond 0:08:51.7:
How about getting internal alignment to move forward? Talk to us about that process.
Dana Clark 0:08:57.8:
So from my direct management perspective, easy. I think he understood what needed to happen. He sets multiple ads, but one of them is chief operating officer and he's also head portfolio officer, so he understood the output that we needed to do and how fast we had to be to continue to grow. The buy-in from the rest of the investment team and the rest of the deal team was extremely high. I think just in the private equity sector which has a lot of guys from Wall Street coming in, Excel rules the world and it's because they can do whatever they want with it and that's also part of what got them where they are. They had the skillset to do that. So taking a little bit away from them for that was uncomfortable. So it took us a long time to get there and I think we hit some barriers on the way that Dylan helped a lot with, but we just had to keep pushing the product to them and saying, 'This is going to work. It's going to work. Just bear with us.'
Jeremy Diamond 0:09:54.6:
I think it's worth noting that Anaplan was not new to Bain. There were a bunch of different use cases in different parts of the fund, but this use case was brand new. Obviously, it needed to solve a Herculean problem in a short amount of time as you could.
Dana Clark 0:10:09.0:
That's right. So I had never heard of Anaplan when I came to Bain and I had met with the IT team and said, 'We have a problem' which they already knew. They said, 'We have the solution. Anaplan' and they showcased it. Their internal IT team did a proof of concept, and I was like, 'This looks great. Let's do it.' So from there we went.
Jeremy Diamond 0:10:33.4:
Cool, all right. So you define the objective, the end state from the current state which was a bit of a disaster. Let's move into how you chose an implementation partner in Alpha.
Dana Clark 0:10:47.0:
So that's a big piece. So Bain Capital also had a relationship with Alpha, and they came in and presented to us, gave us an overview of what their team did, specifically the alternatives team. I was incredibly impressed with their experience, particularly in the real estate space. They, with what they could showcased what they had done in prior projects. I was really impressed. I had, again talked about prior experience and working with Hyperion and I worked with a partner that didn't have that real estate expertise and it took us a long time just to start the conversation of what we wanted to do because we had to educate them on that piece. So we were confident from day one and fortunate that we met Alex and Dylan through the introduction that Bain Capital gave us.
Jeremy Diamond 0:11:29.9:
Domain expertise was a huge driver.
Dana Clark 0:11:32.5:
Massive.
Jeremy Diamond 0:11:33.1:
Then, formerly Lionpoint, but Alpha came in and delivered. Dylan, I'd love to move to you in terms of the methodical process that you set out. Do you care to talk about it?
Dylan Colliflower 0:11:44.4:
Yes, so I think we came in and obviously Dana highlighted to the group that this is a challenging process. I think we encountered a lot of challenges along the way, most of them typical data, process, who is going to be in charge of what roles, but I think one of the key things that we were successful in navigating and one of the keys to the success of the project was handling our scope. So in this phased approach which we took, rather than trying to bite off more than we could chew or get 100 per cent of everything everyone wants out of the model immediately, we said, 'Okay, what is the core? What is the foundation that we're trying to get out of this Anaplan implementation? Let's build that first' and we were able to deliver a model that was able to scale, calculate super quick, do versions, scenario analysis for 80 per cent of the portfolio within three months. That allowed you at Bain to get comfortable with Anaplan, with the capabilities of the platform before we tried to dive into edge cases, which I'm sure, since everyone here is experienced in Anaplan, you know edge cases can always sink a project, cause a lot of pain. So by having a good relationship, by understanding and communicating these edge cases we're probably going to leave off until we have a better idea of how best to solve them, we were able to deliver a good core that we were able to build off of and grow.
Dylan Colliflower 0:13:30.3: So because of that initial communication we were able to have a longstanding relationship where we continued to iterate and add value over time rather than delivering something that might solve for 100 per cent of the portfolio right now, but cause you problems on 50 per cent of the portfolio later that you don't want to deal with.
Dana Clark 0:13:54.5:
Yes, there were really two key pieces to it right. It was communication which Dylan and I think really hit on the head a lot of times and it was partnership because Dylan was up front in saying, 'Hey, we can deliver this by X date. We might not be able to do this.' That left it with me to go to my senior team and say, 'Hey look, I know you want this. We'll get there. Just be patient. We're going to take this baby steps approach', and it worked well because expectations from the senior management down - they got what they expected and were ultimately very happy at the end.
Jeremy Diamond 0:14:25.0:
Yes, I was going to ask either of you how you dealt with managing internal teams, getting them roped in or walled up for the project. It sounds like landing that 80 per cent plane within three months was one. Any other color you can provide.
Dana Clark 0:14:39.9:
Our relationship management, Dylan had to play a lot of it probably more than he expected to with our group. There are some challenging individuals on the investment team, but bringing finance into the process and IT into the process to troubleshoot was a big part of it. Again, it was all about education. It wasn't problems. It was just understanding how the model worked.
Jeremy Diamond 0:15:02.1:
So those were some key success criteria or things that went right. Any positive, negative surprises as you embarked from an implementation side into the project.
Dylan Colliflower 0:15:14.2:
I think one surprise was just the nature of how processes are run in different companies. So Bain has a few less functions than we liked. People wear a lot of hats.
Jeremy Diamond 0:15:30.6:
Entrepreneurial.
Dylan Colliflower 0:15:31.5:
Yes, so I think that was a surprise and I think that gave us inspiration when we were designing the model to build something that's going to work for less people to operate. So that was one surprise that turned into a solution or design challenge that we enjoyed taking on.
Jeremy Diamond 0:15:52.1:
How did leadership at Bain play in driving the rollout and adoption?
Dana Clark 0:15:56.4:
So my direct manager was extremely supportive and being a partner he had a small slice of influence across the rest of the partnership within the real estate group. I would say he was sometimes alone in that argument, but he kept pushing it forward for us which was helpful, and I think at times maybe he sometimes didn't believe it himself, but he did it for me. I think now he is extremely happy now he's on a victory tour because he's like, 'All right, I made the right call.' So he was supportive and that was helpful because we did hit a lot of - we heard a lot of complaints, sometimes direct, sometimes indirect and maybe misleading too, but…
Jeremy Diamond 0:16:36.3:
In the go-to-market world we often like to identify a champion to drive a deal through or a project through. It sounds like that was equally instrumental at Bain and it didn't hurt that this person had significant influence either.
Dana Clark 0:16:49.2:
Absolutely, yes absolutely.
Jeremy Diamond 0:16:51.6:
Got it. Okay, anything else worth discussing on the rollout before we get to outcomes and impact.
Dylan Colliflower 0:17:00.5:
Maybe we have the timeline slide.
Jeremy Diamond 0:17:03.5:
Let's talk about the timeline. So you verbalized it right. You had a lot to chew off, landed the 80 per cent plane in three months even though… Are we having clicker problems?
Dylan Colliflower 0:17:18.3:
Can we go to the next slide?
Jeremy Diamond 0:17:20.6:
Can anybody manually override the deck?
Dylan Colliflower 0:17:28.7:
I see it. Back one. This is okay.
Jeremy Diamond 0:17:36.8:
Can we go back one? Why don't you talk to the time?
Dylan Colliflower 0:17:46.4:
Yes, I guess the only point we wanted to make on the timeline - it's better when we have the visual, but we've been working together for over two years now.
Dana Clark 0:17:55.8:
Yes, two years.
Dylan Colliflower 0:17:56.8:
It's been two years of growth improvement and value creation, but I wanted to just highlight we were able to build an outstanding model that covers a lot of bases in three months and then that value was an inspiration to basically chase down all these other things that were not even in the realm of thinking prior to Anaplan.
Dana Clark 0:18:26.3:
That's right. If you look at the timeline two years it scares you right. Anyone who obviously described Dylan is looking to do an implementation right away, but you look at that and say, 'Two years from now. That's crazy' but we really did beat our goal in that first three months and then from there it was wow, we got this, now what can we do? So that's what's been the last year-and-a-half has been focused on improving and getting to where exactly we didn't think we could ever get to with the old Excel file.
Jeremy Diamond 0:19:00.2:
That's a great lead into the outcomes. Before we do, I think it would be interesting with the team just to understand - it was a SWAT team right, team sizes. So both on the Alpha side and on your side from a resource and headcount perspective. Can each of you talk a little bit about what the team sizes were?
Dylan Colliflower 0:19:16.8:
Yes, for the development team we had just our solution architects and a lead model builder for most of our phases. Obviously, in two years we've changed resources a little bit. I've been there the whole time. Everyone else has swapped in and out it seems like. So a small team on the development side and then obviously some…
Dana Clark 0:19:38.4:
On our side it started small. In fact, I remember the conversation Taylor had with us right before testing. She was like, 'Dana, you need more people.' I'm like, 'There is no one else' but we had support obviously from IT in phase one, but then we introduced finance which was a huge benefit to us. I think that they really dug into the model and understood the model. So the team grew a little bit, but it was still small, and, on our side, it's been at most five people at any time and on your side, it's been small too.
Dylan Colliflower 0:20:05.8:
Yes, it's always been small, but I think mighty impact and a lot of stakeholders involved both on the Alpha side and you internally have managed well.
Jeremy Diamond 0:20:17.8:
Right, small headcount side of it, but I would say outsize impact.
Dylan Colliflower 0:20:21.4:
Yes.
Jeremy Diamond 0:20:22.1:
Whereas I describe my daughter small but mighty. How are we doing on slides? Can we get to the impact slide? Is that possible? I think our clicker died up here.
Dylan Colliflower 0:20:37.1:
Technology.
Dana Clark 0:20:37.3:
Not west coast time.
Dylan Colliflower 0:20:38.2:
Yes, technology consultants always have problems with technology.
Jeremy Diamond 0:20:42.3:
Okay, there we go. One more.
Dylan Colliflower 0:20:44.7:
Back one. Yes.
Jeremy Diamond 0:20:46.8:
Okay, Dana, so big journey right.
Dana Clark 0:20:51.6:
Big journey.
Jeremy Diamond 0:20:52.5:
Entered with a big identifiable problem, phased approach, solution implementation provider, went smoothly, landed the plane. Talk a little bit about some of the key outcomes.
Dana Clark 0:21:03.5:
Sure and this is the outcomes today right. I mentioned that we accomplished what we wanted in three months. I'd say this point two, the confidence, took us a little more time. It took us a few cycles of the process to really gain the confidence and it wasn't that we had issues with Anaplan or with what was built. It was still people not being comfortable with letting a system calculate things that they did previously.
Jeremy Diamond 0:21:25.8:
Can you double-click on that? What type of people? What roles? Are these senior folks or are they technology?
Dana Clark 0:21:30.5:
Well, we'd hear it most vocally from the senior folks, but it would come from the most junior folks because technology is an easy scapegoat for folks because it's something that they don't have to dig in and find the answer. They can just say, 'It's wrong' right and then it's on the business implementation leads to say, 'No, it's not wrong. You're wrong and here's why.' Then, it took us a while to get there and then once the senior team identified that maybe the system is not the problem, it's the users not adopting it, confidence was secured and we're at a place now… Dylan was just saying before, but on Monday a very senior investment folk on our team, she said to me, 'This is amazing that we can now just click on a button and we get all these dashboards and we can understand exactly how the portfolio is performing.' She said, 'We would never be able to do this a year ago.' I think the biggest key to our success or way to define it is that she asked me after that, 'How much time do we cut, not since the beginning of this project, but just in this last forecast process?' and we cut our timeline down by 90 per cent, which is huge. So what does that mean for us? Well, not only did we save that many weeks, we saved a lot more in manpower hours, but also we might be able to make that forecast process not every six months but every three months, which will give us even more real-time access to data and knowing how the portfolio is performing, which will be really powerful.
Jeremy Diamond 0:22:59.3:
That's amazing. Any other examples. So clearly there were some naysayers, but once you gained their trust and their buy-in, shorter cycle time, more transparency on performance. Any other examples of how senior teams maybe have been able to make higher impact or higher value decisions?
Dana Clark 0:23:19.5:
Yes, so our head of real estate is a super smart individual. Nothing gets by him and he's very demand. He knew what he wanted. He knew what the output wanted. He'd grown up through Bain, so he knows how to put a spreadsheet together, an Excel model and he knows how to put a beautiful PowerPoint together and he also knew what the private equity team was producing. They had been doing it for a long time, so he wanted that quick access to information and wanted to know exactly how things were performing at his fingertips. He finally got what he wants. He's finally gotten the output he wants, and we can put the next slide, and you can see some of the examples of this. Maybe it's not in the prettiest format that he wants in his PowerPoint that he's going to share with LPs, but he can get it on demand. He can get instant access to it or if he has a question on something he wants us to dig deeper on we can get it to him quickly, which is what we set out to do. Now, it's showcasing what we can do beyond just running numbers for him and maybe providing more analysis which is what I wanted. I want to get rid of that desktop computer that I was given the first time.
Jeremy Diamond 0:24:22.7:
Right, so that would have taken forever.
Dana Clark 0:24:24.4:
Yes.
Jeremy Diamond 0:24:25.4:
You can quantify that a little bit, but you've led us into what's next.
Dana Clark 0:24:29.5:
Yes, this wasn't even possible. Just the basic reporting that we were doing before took us six months and we couldn't adapt to anything else other than what we were producing because it was so based on that Excel file. This is all new stuff. This is stuff that he's asked us to do after we've implemented and added on. In fact, this is rather recent adds to the UX piece.
Dylan Colliflower 0:24:54.2:
Yes, and I'd say another big impact - and that was delivered early. It's gotten even better recently, but the versioning and scenario planning… So prior if one fund model for one version would crash a desktop, now trying to run four or five concurrent case versions analysis, scenario analysis, you can imagine how much size that will take up. Then, you have that file being sent around to four different people back and forth. Now, that's all live in Anaplan. I think you guys can do almost infinite versions with how scalable we built it. So now it's gone too far the other way. Now you've got to dial it back. Yes, that would be one of the key things that I think Anaplan's… You guys are still fully realizing the potential of that power.
Dana Clark 0:25:47.9:
Absolutely. We could not do different versions. We had to save a whole new fund model in Excel and now we can do that quickly and on the fly which is amazing.
Jeremy Diamond 0:25:57.1:
So you've come so far. Anything on the roadmap in terms of what's next for Anaplan inside of Bain.
Dana Clark 0:26:04.7:
Yes, I think on the sensitivity side we have identified - so I think if we flip to the last slide where you can see where we're using the Excel add-in to do quick analysis, this is super powerful for me. We still work well with Excel and Anaplan works well with Excel and so if someone asks me for something I'm able to produce it very quickly even if we haven't built it completely out of Anaplan. We know the numbers are coming out right, but maybe there's a dashboard or specific view that someone wants to do. I can put that together quickly. The future state I think is how much of this can we get into the model. How much do we want to get into the model? Even further than that, I think growing more sensitivity, giving more quickness to how we build the sensitivity could be the big goal for us. I think the other piece that I mentioned previously about doing the quarterly forecasting, maybe bringing valuations into the model, which will give us more consistency around our cashflows, which still add two separate [unclear words 0:26:56.6] and we can use Anaplan to fix that for us.
Jeremy Diamond 0:27:01.3:
Well, without stating the obvious, this gets back to some of the user adoption and the objections you were dealing with early on right, meeting people where they are. Instead of an Excel-based shop, you meet the user where they are which is Excel is the interface, just super-powered at the back end with a tool like Anaplan. It seems to be a win-win all the way around.
Dana Clark 0:27:21.7:
Absolutely. I think the next key for us to get complete buy-in from the junior team is the more senior members that are using the UX is helpful for us, because they're seeing what it can do, and they can stop hearing what they're hearing from the junior team as excuses and just use the platform. So that's the key to their whole buy-in.
Jeremy Diamond 0:27:43.4:
We would like to build in time for questions because I think that's where the most value comes for the room, but maybe before we do, any broad level advice for people embarking on a project like this for people that got a little uncomfortable and their respiratory increased when they saw they just joined the process earlier.
Dylan Colliflower 0:28:02.3:
Yes, I guess being communicative with your partner, with the business owner, the process owner is key. Building a good relationship, so you can say, 'Yes, that would be nice to build that but it's going to cost you two months of work. Is it really that important?' and being able to have that back and forth early on. I think foundations is most key to any implementation. I think most people know that, but executing on it and having the relationship to talk through that it's not always easy. You must work for that.
Jeremy Diamond 0:28:43.8:
What I took out of this getting to know this use case is it accomplishes two things. 1) You don't die of indigestion by eating the whole elephant at once. You know what you can bite off, but you also buy credibility. With that comes pressure to make sure you deliver on the timelines that you set out before you did put the brakes on and say, 'This is what we're able to do in the three months, but then it's an execution must' right.
Dylan Colliflower 0:29:07.1:
That's right.
Dana Clark 0:29:08.1:
From my side, I think the important piece was buy-in from myself. Being super involved in the project was important. I dragged my feet with my boss. When I saw the problem, I didn't want to fix the problem. I just told him that it was a problem and expected someone more junior to fix it, but that wasn't on the cards for me and so I just fully bought in knowing that it would be an ultimately great solution for us, but I think that was important because we wouldn't have delivered the model we did if we didn't have the partnership that we had. We just would have gone off into the abyss.
Jeremy Diamond 0:29:43.6:
Thank you for sharing your journey.