Economic Performance
The Finance organization serves as a trusted adviser to the Operational Management team and acts as the "financial conscience" of the business by monitoring exposure to various types of financial risks and developing mitigation plans. The Finance team adds value through meaningful reporting and by providing actionable business insights premised upon driver-based forecasts, together with using a robust financial risk and opportunity management approach. Over the course of the next three years, the Finance team will further drive a culture of compliance in all business processes and departments.
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The team will revamp the finance and accounting function at a fundamental level to meet the changing needs of business partners and the increased role of technology and automation. This includes innovating and improving processes to create an agile finance function.
The Enterprise Resource Planning (ERP) system, to be implemented in 2022, will represent an initial, but significant, advancement in this area. The team will continue to embrace new technologies and drive change management across all departments by being role models in digitization and automation. These tools will align the reporting processes and content with user needs while ensuring a more efficient delivery. With support from Finance team members, these insights will drive strategic cost optimization through short-term initiatives, improved process efficiency, and improved decision-making across all business units.
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Beyond the financial implications, the availability and digestibility of data is key to driving the business forward toward a fully digital business led by data. KCS will expand the use of the Power BI business intelligence tool over the next three years. From the development of a digital visualization room available to all members of the business to the cascading of data into every department, this will provide business insight and analysis through the dissemination of reliable, accurate, and timely information for the appropriate team to take meaningful action.
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Another workstream will be developed and included in our annual budget processes. The focus of this workstream will be delivering cost-saving initiatives to mitigate the impact of inflation that will likely continue to have an impact for the foreseeable future.
With the start of MBTA parking lot and garage operations, it is essential that robust processes are put in place to manage mobilization costs and optimize delivery in line with the budget.
In addition to the implicit obligation we have to our shareholders to optimize efficiencies, we have a contractual obligation to our client to ensure the cost base of the rail operation is right-sized. Moreover, the Finance organization will continue to identify opportunities where we can create customer value, whether it is working with Operational teams to propose mutually beneficial incentive programs or building creative gain-sharing initiatives.
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With more than $100 million in purchases made annually in support of the MBTA’s rail operations, an effective procurement and sourcing process focused on the total cost of operations and service represents an opportunity to provide value to the business and customer. Our reputation and credibility rely heavily on legal and contractual compliance in the procurement, supply chain, and invoicing processes, including a robust internal control system that prevents and detects non-compliance and fraud. KCS will be devoting resources and focus in this area of operations during 2022.
By following the preceding plan, KCS seeks to create a more efficient and scalable finance, quality, and procurement department with highly skilled employees and state-of-the-art technology. In turn, this will enable the organization to reduce costs, improve profitability and build the foundation to be selected as the MBTA’s value-added partner of choice well into the future.