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Finance Transformation 2010

Change Management: Your Key To Successful Finance Transformation

10/11/2010 2

Alberto Elli

Group VP and Controller

Global Finishes Group

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Agenda

1. Aligning your stakeholders to a common vision

2. Determining the goals and objectives whether your SSO is ensconced into company culture or the initiative is new

3. Discussing the importance of effective change management and its impact on the business improvement cycle

4. Discussing the change equation and ROI

5. Being a great company helps: The case of Sherwin-Williams

The today challenges and opportunities of Sherwin-Williams are quite common in the marketplace ... During last 10 years the world drastically changed !

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The $81 billion paint market looks like this today…

United States25%

Latin America

12%

Europe30%

Asia Pacific26%

Canada3%

Other4%

The paint and coatings market looked like this in 2000…

United States35%

Latin America

9%

Europe32%

Asia Pacific18%

Canada3%

Other3%

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What Has Changed in the World Since 2000?

• Continued global growth and migration

• Accelerating global consolidation

• An economic environment that demands increased efficiency

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Why Invest in Global Structures?

To better address the following secular trends:

• Customers are globalizing

• Companies are consolidating

• Markets are migrating

Global Finishes Group

Chemical Coatings Division

Automotive Division

Protective & Marine Division

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Why Invest in Global Structures?

To better achieve the following goals:

• More efficiently utilize assets

• Better serve customers around the world

• More effectively enter new markets

• Accelerate growth globally

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How Will We Utilize Assets Better?

‘Groupify’ Finance and IT

‘Groupify’ HR

‘Groupify’ Manufacturing

And as our IT systems evolve we will increase size and scope of Corporate SSO for the most transactional activities

1. Aligning Stakeholders to a common vision

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‐ Customer Facing Activities +

Corporate GFG Finance Divisions

Shared Services Center of Excellence Business Support

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2. Centralization Matrix for SSO Determining the goals and objectives

‐ Customer Facing Activities +

Corporate GFG Finance DivisionsShared Services Center of Excellence Business Support

   

Transactional <‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Expert Based   <‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Services  

Business Support   <‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐>      and Strategic  

33. Change Management – Maturity Stages - USA

USA Corporate GFG Finance DivisionsShared Services Center of Excellence Business Support

  AP + FATransactional GL  

Cash / TreasuryTax

Operations Acct.Expert Based   Reporting  Services Planning    Acquisitions (integration)

AR and Credit Coll.Business Support   Financial Analysisand Strategic Acquisitions (pro forma)   

33. Change Management – Maturity Stages - ASIA

ASIA Corporate GFG Finance DivisionsShared Services Center of Excellence Business Support

    AP + FATransactional   GL

Cash / TreasuryTax

Operations Acct.Expert Based     ReportingServices   Planning      Acquisitions (integration)

AR and Credit Coll.Business Support   Financial Analysisand Strategic Acquisitions (pro forma)   

33. Change Management – Maturity Stages - EUROPE

EUROPE Corporate GFG Finance DivisionsShared Services Center of Excellence Business Support

    AP + FATransactional   GL

  Cash / Treasury  Tax

Operations Acct.Expert Based     ReportingServices   Planning    Acquisitions (integration)

AR and Credit Coll.Business Support   Financial Analysisand Strategic Acquisitions (pro forma)     

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Enterprise Process Model for SHW

Adds-on

Product VisionFormulation POSPlanning

Hyperion

CRM

Global Customers

StdProduct Code(Raws, FGs)

AdvancedProductCatalog

ReportingFST

SharedServices

QAD

MRP

GlobalPurchasing

EfficientAsset

Utilization

"Campus Concept"

1. North America2. South America3. Asia4. Europe

Efficiency andCompliance

Supply ChainBackbone

FinancialBackbone

Global StdCOA

3. Change Management : The case for ERP and Shared Services A Map to position “customer support” and “back-office support”

4. Discussing the change equation and ROI

• Mission of SSO = we must help to sell paint and ensure Compliance

• SSO implementation is driven Top-Down and the speed is calibrated on the maturity of our IT supporting systems (see maturity stages presented before)

• ROI for the recipients Division is clear: Cost out @100% and Charges in @ 90%

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5. Being a Great Company … helps! The Case of Sherwin-Williams The Paint Company

Incorporated in 1866, Headquartered in Cleveland, OH

29,000+ Employees ; $7.0+ Billion in sales

Core business is the manufacture, distribution and sale of coatings and related products

Maintains the largest paint and coatings distribution network in the United States (3,354 Stores)

Ranks #3 Worldwide and #1 in United States

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THANK YOU !