reengineering a global credit team – a work in progress angela conti mølgaard global credit...

Reengineering a Global Credit Team

– a work in progress

Angela Conti Mølgaard Global Credit Director

2 Honeywell Confidential File Number- 2

Overview HONEYWELL

• Honeywell International Inc- Global HQ : Morristown, NJ

• Strategic Business Groups- Aerospace

HQ: Phoenix, AZ

- Automation and Control Solutions HQ: Minneapolis, MN

- Transportation Systems HQ: Rolle, Switzerland

- Performance Materials and Technologies HQ: Morristown, NJ


Evolution and Timeline Credit Dept.

• 2000 – Global Credit and Treasury Shared Services Location: Tempe, AZ/Reported to Corp. Treasurer

• 2003 – Creation of Centers of Excellence (COE’s)- ‘Off-shore’ transactional work to low-cost markets: Bangalore, Mexico City,

Prague, Shanghai

Impact: Reduced headcount in Tempe, AZ/ For each reduction, gained 2 in COE Lower costs/leverage best practices/ eliminate the lowest performing individuals Low morale in Tempe resulted in turnover of high performers/ Average performers

remained Recruiting and oversight challenges emerging markets Cost savings reduced YOY Lack of tenure and loyalty due to flood of multi-nationals seeking staff


Timeline

• 2005 - GCTS dissolved• Impact:

- SBG Credit teams report directly to their respective businesses- PMT: Elimination of Global Credit Director/Regional credit managers report to regional

FP&A director- Advantages:

SBG’s direct control of respective credit groups PMT sales and finance leadership fostered culture of support for collections and

enjoyed consistent good results.

- Disadvantages: Loss of ‘global team’ aspect Processes became localized No global team development or improvement

• “If it’s not broken, don’t fix it” FP&A Directors with no background in credit Limited guidance for talent development Credit took a “back seat”


Timeline

• 2006 – PMT Acquired remaining interest in UOP LLC - A/R for PMT doubled with acquisition- UOP absorbed by existing teams- Allocated existing resources from Legacy team- Disbanded Credit department in Des Plaines, IL- Added resources but no buy-in to COE philosophy

• 2012 – Re-introduction of Credit Director


Today: Headcount / Locations

• 53 staff / 15 cities / 10 time zones• Direct team: 46 Indirect: 7

• Credit Analysts 23• Other Analysts 12• Cash appliers 7• Financial analyst 1• Managers 4• Leads 6

• THERE IS ALWAYS SOMEONE AWAKE In office: Saturday 11pm to Friday 9pm EST.

Locations:

MorristownTempeChicagoMexico CityRio de Janeiro

PragueHeverleeGuildfordTaipeiBeijing

SingaporeShanghaiPuneBangaloreDubai

Delhi


PMT Locations

● Amherstburg, Ontario

● Baton Rouge, LA● Geismar, LA● Shreveport, LA

● Buffalo, NY● Tonawanda, NY

● Kingman, AZ● Chandler, AZ Tempe, AZ HEM HQ

● ● Chesterfield, VA● Colonial Heights, VA● Hopewell, VA

● Danville, IL● McCook, IL● Metropolis, IL● Riverside, IL

Des Plaines, IL UOP HQ

● Claymont, DE

● Columbia, MO

Morristown, NJCorporate/SM HQ

● Muskegon, MI

● Mobile, AL

● Bryan, TX

● Mansfield, TX

● Orange, TX

● Fombell,

PA●

Pottsville, PA

● Smethport, PA

● Titusville, PA

● Erkrath, Germany

● ● Seelze, Germany

● Widnes, UK

● Surrey, UK

● Anaheim, CA● San Jose, CA● Santa Clara,

CA● Sunnyvale,

CA

● Cheney, WA

● Spokane, WA

● Hsin Chu City, Taiwan

● ● Shanghai, China

●

Haryana,

India

● Victoria, BC

● Salt Lake City, UT●

Golden,CO

● Manufacturing

● Research ● Sales Headquarters

● Anderson, SC

● Milan, Italy● Reggio

Calabria, Italy

● Bangkok,Thailand

● Chonburi,Thailand

● ● Dangjin, S. Korea● Jincheon-gun,

S. Korea

● Antwerp, Belgium

● Eupen, Belgium

● Haverlee, Belgium

● ● Singapore

● Hiratsuda, Japan● Kanagawa-ken,

Japan● Yaita, Japan● Yokkaichi City,

Japan● Tokyo, Japan

● Calgary, Alberta

● Rungis Cedex, France

● Jakarta,

Indonesia

● Dubai,

UAE

● Jeddah, Saudi

Arabia

● Beijing, China

● Moscow,

Russia


SCOPE

Performance Materials & Technologies

Customer base• Public/Private sector• SMB• Multinationals• 4000 Active customers

A/R• $800M average• High value / low #

transactions

Regions• Americas40%• Asia

40%• EMEA

20%

Advanced Materials• Fluorine Products• Resins & Chemicals• Specialty Products • Electronic Materials

UOP• Process Technology & Equipment• Catalysts and Adsorbents• Gas Processing and Hydrogen• Renewable Energy


Short Term Goals

• Maintain and improve metrics • Realignment and consolidate sites• Align global processes• Improve span of control• Align with business• Create bench and succession planning• Improve reporting and governance• Build internal/external credibility

MISSIONDevelop a world-class credit organization incorporating and

aligning near/off-shore Centers of Excellence (COE’s) with developed sites.


Long Term Goals

• Upgrading organization: people, processes, tools• Optimize credit portfolio management• Maintain and improve metrics • Improve organizational alignment, consolidate sites and regional management• Streamline collection method/approach – leverage COE’s / best practices• Automate C2C processes through tools/solutions• Create bench and succession planning across regions• Improving C2C/Sales team alignment and partnering• Train new sales employees and their critical role in C2C cycle • Proactive global account management • Improve reporting and governance• Increasing Customer engagement opportunities – relationship building• Enhancing credit limit, analysis and approval process • Country and regional risk/exposure reviews with strategies and action plans

for areas of concern• Benchmarking with competitors and like industries on organization and

processes• Adding value


TEAM building and management

Activities:Team Meetings1:1’sSkip LevelRemote managementMentoringTraining: external/internalDelegationGrooming the benchExposure to leadershipTribal Knowledge documentationSuccession PlanningMulti-generational/cultural issues

Shanghai X 2Beijing X 1Prague X 2Tempe, AZ X 2Chicago X 7Mexico City X 1Customers visits:U.S., Spain, Greece and Venezuela


Phase 1: Evaluation and validation

• Leadership summits and engagement• Learn business and customer base• Engage business leaders and solicit opinions/buy-in• Establish priority list through RAIL• Staff components/track record/capabilities• Gaps: staff, processes, knowledge, skills• Global team structure analysis: developed vs. high

growth centers• Current needs and quick fixes• Build morale and credibility


Phase 2: Action plan and execution

• Improve communications-internal/external• Engage business leaders and buy-in• Collections training• Build external networks/resources• Trouble shoot crises• Manage within, up and out• Process alignment• Customer visits• SBU alignment


Phase 3

• Portfolio/role re-alignment• New hires• Regional focus• Training/coaching• Desktop procedures/practices• Reporting revamp• Explore site(s) consolidation• Shoring up COE’s• Assess bench• External/internal networking• Adapt to budget/headcount constraints


Original, As-is

December 2011


Team : To-be

March 2013


Key initiatives & results Q1/Q2 2012

• Heavy travel and conf calls: LISTENING• Gaining staff loyalty and buy-in• Establishing expectations• Staff development/the bench• Developing internal network/credibility

- Trouble shoot major C&C issues- Manage up, out and within

• Collections and communications training• Global process alignment• Processes and portfolio alignment• Creating Synergies among teams


Q1/Q2/Q3 results

• Promos and recruiting• Customer visits• Documenting highlights/lowlights• Reporting• Country/region expertise• Internal/external training


Key Elements: World Class Credit Org

• People• Tools• Processes• Support/Resources• Effective management• Knowhow• Credibility: external/internal• Passion• Experience• Span of control• Discipline,focus,consistency


Reporting on Progress

• People and Resource Management

• Metrics/Past due Management/recoveries

• Account specific highlights/lowlights

• Metrics highlights

• Processes, Systems, Reporting

• Relationship building internal/external


Lessons Learned/Course Corrections

• Reporting as top priority• Customer visits as priority• More upfront market/industry knowledge• Time management • Identify gaps/disconnects, desktop

procedures/practices• Site consolidation/resource revisit (Bangalore,

Mexico City, China)• Budget constraints


Successful Transformational Leadership

• Learn tactical to be strategic• Clear vision• Team of Change agents• Build credibility and morale• Balance interpersonal skills and detachment• Demand focus/discipline of oneself and others• What’s right for the business• Offer choices and document probable outcomes• Knowledge of best/better practices and latest tech• Benchmark with peers


Go forward planning

• Creating centers of excellence• Leveraging high growth centers• Improving regional/portfolio alignment• Training • Exposure and credibility internal/external• Continue to raise the bar and expectations• Leveraging expertise• Share the tribal knowledge and expertise• Reporting and communication improvements• Plan customer/site visits 2013


Q&A

reengineering a global credit team – a work in progress angela conti mølgaard global credit...

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