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© 2012 Weatherford. All rights reserved.© 2012 Weatherford. All rights reserved. 1

Strategy For Driving and Adhering to Global Standardisation.

© 2012 Weatherford. All rights reserved.© 2012 Weatherford. All rights reserved.

Topics

• Introduction• Challenges• Evolution• Standardisation• Remote Management• Results• What we learned along the way• Q&A


Centralised Best Practices with Regional Application

One of the largest oilfield services companies, (#3) Weatherford operates out of around 1,400 locations in more than 100 countries and employs around 50,000 people worldwide.

Global approach to credit & collections with regional application.

A team of 140 Order to Cash, credit & collections professionals distributed regionally. Includes outsourced

Regional CollectionsRegional OTCCentre of excellence CreditBusiness Process OwnerDedicated Getpaid Expert


Challenges

• Dysfunctional Team

• Dated Business Processes and Tools

• Strained Business Relationships

• No Standardization

• No Visibility

• No Automation and Integration

• No Accountability

• No hope

© 2012 Weatherford. All rights reserved.© Weatherford 2014. All rights reserved.© Weatherford 2014. All rights reserved.

Evolution

• Optimise process

• Standardise

• Automate

• Annual review of process and Getpaid

• Eliminate NVA

• Track Meaningful metrics

• OTC merged with C&C

• Best practises leveraged

• Remote management tools honed

• Birth of OTC

• Revise C&C structure

• Improve skillset of team

• Build relationships and mend fences

• Gain credibility by getting results

• Provide visibility

• Educate

• Education roadshows continue

• Audits to ensure tools are being used

PERFORMOPTIMIZEACTIONANALYZEImproveChange Image

Evaluate & Implement

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Optimise first before you automate

Be Prepared for Resistance

© 2012 Weatherford. All rights reserved.© Weatherford 2014. All rights reserved.© Weatherford 2014. All rights reserved.© Weatherford 2014. All rights reserved.

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Evolution


• Standardise

• Automate

• Annual review of process & Getpaid

• Eliminate NVA

• Track meaningful metrics

• OTC merged with C&C


• Remote management tools honed

• Birth of OTC



• Build relationships and mend fences.



• Educate



PERFORMOPTIMIZEImproveChange Image

Improve Visibility &

Drive Improvement

ACTIONANALYZE

Refine


Eliminating Non Value Add

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As of 2/2010 only 34% of the time was spent on Value-Added Activities.

With the rollout of the Value-Added Time Blocker, 65.13% of the time is now spend on Value-Added Activities


Leading v Lagging Metrics

• Lagging indicators measure the outcomes at the end of a time period. For example DSO

• Leading Indicators – are activities that predict the outcomes (that is lagging indicators) For example promise to pays, contacts made etc

• Combination of the two make for more rounded reporting

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Is DSO Dead?

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• Prevention of Sales

• Is it the True Measurementof Collections Effectiveness?

• Changing the Way the Organisation Views Collections Effectiveness


Past Due DSO & Collections Efficiency

• Past Due DSO Calculation: Is a method by which Accounts Receivables that are aged over 30 days are divided by 1 day DSO.

• This increases the focus on what part of the DSO may be collectable by the C&C organization by focusing on receivables that have been billed and outstanding for over 30 days.

• Stability & predictability = sustainability

• CE is current month past due divided by prior months billing

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© 2012 Weatherford. All rights reserved.© Weatherford 2014. All rights reserved.© Weatherford 2014. All rights reserved.

Evolution


• Standardise

• Automate

• Integrate

• Annual review of process and Getpaid

• Eliminate NVA

• Track meaningful metrics

• OTC merge with C&C


• Remote Management tools honed

• Birth of OTC



• Build relationships and mend fences.



• Educate



ImproveChange Image

ContinuousImprovement

ACTIONANALYZE

RepeatPERFORMOPTIMIZE

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Managing Remotely

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• Standardisation

• Procedures

• Tool Kit

• Sticking to the Plan

• Communication

• Travel


Standardisation Benefits

• Easier to train

• Easier to repeat

• Easier to measure

• Maximise Results

• Consider barriers such as regional laws

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Standard Operating Procedures (SOPS)

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Tool Kit

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• Cash Collected Analysis

• End of Day Activities

• Broken Promises

• Dispute Management

• Audit

We created a managers guide providing detailed instructions on what to look for and what to do


Cash Collected Analysis

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• Cash Targets Are not Linear

• Use Historic Data To Establish Pattern

• Communicate to Wide Audience


End of Day Activities

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• Region Managers make sure that their teams have completed all their follow up activities by end of day.

• Good way of making sure that the application is being used correctly and that we are covering all accounts


Broken Promises

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• Defined as promises to pay on specific invoices on specific date but no payment was made.

• Useful for monitoring the collector’s performance- broken PTPS not followed up- No escalation at customer level-PTP did not comply with our SOP- Poor Notes

• At Customer Level- Pattern of broken promises- Change in payment trend- Failure to communicate


Results

• PDDSO improved 12 days from baseline

• CE improved 11% points from baseline

• No Headcount Increase Despite Increase in Sales

• Improved Target Setting

• Easier to Reward Based on Performance

• Data to Make Informed Decisions

• “Success to the Successful”

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What we Learned Along the Way

• Optimise Process before Automation

• Brains Before Tools – use data to help make decisions

• No Shortcuts – no solutioning

• Chose the right metrics

• Get the right people

• IT Support

• Resistance

• Groundhog Day

• Travel is not optional

• Its not easy but stick with it20


Q&A

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