Post on 11-Jan-2016
Reengineering a Global Credit Team
– a work in progress
Angela Conti Mølgaard Global Credit Director
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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
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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
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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”
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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Original, As-is
December 2011
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Team : To-be
March 2013
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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
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Q1/Q2/Q3 results
• Promos and recruiting• Customer visits• Documenting highlights/lowlights• Reporting• Country/region expertise• Internal/external training
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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
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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
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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
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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
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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
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Q&A