Finance for non financials
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1
HUMAN CAPITAL
Importance of Financial
Acumen
@
Sara Lee Coffee & Tea
2
Coffee & Tea will face increasing competitiveness
Define or declining
Market
Investment on:
Competencies
Entrepreneurial
Creative mindset
Relentless pursuit
- Market Share
- Volume
* Innovation* Product Development• Financial Mgt Systems• Information Technology
*Best in Class Sales & Marketing * New channels/ E-commerce•Customer Service Focus •Trade Management
3
We need to change the way we run the Company
• Maintaining Status Quo
• Vertical communication
• Success through risk
avoidance
• Remain constant
• Little change
• Coffee Authority
• “Employer of Choice”
• Constant enhancement
• Vertical & Horizontal
communication
• Success through leadership,
courage and risk taking
• Management processes are
competitive advantage
• Speed to react
Entitlement Culture - little at risk
Results Culture- we deserve what we earn
4
Coffee & Tea needs to be driven by LEADERSLEADERS
Leadership Vision Performance Driven
• Very high aspiration to
be the best
• Demanding and will not
accept “second best”
• Effective teambuilding
• Ability to penetrate to
micro-level
• Single-minded adherence
to simple, clear success
measures
• Productive “fear” of
failure
• Highly motivated, if not
inspiring “can do attitude”
• Orientation – “Best Practices”
• Passionate about and understand
• - the Coffee business,
- how it works in detail,
- what customer want
- and what competitor
can-do
- and how things
change
• Persuasive, occasionally
pushy
• Real and effective follow
through
• Aggressively learn from
others who are better
• Good place to work but
not always comfortable
• Performance shortfalls
are held accountable
• Rewarded by being part
of a Winning Team
5
Coffee & Tea needs to be driven by LEADERSEADERS
•Uncomplicated line of communication and approval
•Clear focus on performance through rewards and recognition
• Do many things well but at least 1 function at world-class
level
• Leaders have “informed” view of Key Financial Indicators
•,View Human Capital as real competitive advantage
• Best people/teams in most critical/demandingpositions
• Bench strength is top priority
•Grow people Grow Business
Simple Organization
Based on World Class competencies
Develop People
6
…..in support of becoming a High Performance Driven Organisation
• Building Leadership and Capability strength• Performance and Results Driven Culture• Align/Simplify infrastructure and systems
MANAGERS MUST CHANGE: FROM TO
CONTROL
•Policies/procedures/
systems
• Accounting & Reporting
• Caretaker
GROW
• Performance auditor/
coach
– removing barriers
– benchmark practices
• Team Leaderships
DEVELOP
• Development of
– Financial Management
core processes
– Support Management
– Self-renewal
. . . being the Best!
–Transfer of knowledge
– Retain talent
7
The most important practices are as follows:
Financial Plans driven by Business Strategies
Behaving in a way that leads others to trust YOU
Designs high performing Financial systems to support and drive
business culture and performance
Keeping personal commitments and follow-up
Communicating views openly, honestly and directly without
fear of failure
OVERALL RATING SHOULD BE WORLD CLASS
8
Most important for Coffee & Tea Professionals
Establishing a climate of openness and trust
Being open and candid with people rather than being vague or indirect
High levels of integrity in day to day dealings
Honestly and directly confronting conflict
Take responsibility for decisions and actions
Establish clear performance goals and standards
9
This mix of Success Factors change as yourise-up the company…
DELIVERSTRATEGIES
BUSINESSLEADERSHIP
FINANCIALMGT.
DELIVERRESULTS
BUSINESSLEADERSHIP
FINANCIAL MGT.
DELIVER PROGRAMBUSINESS
LEADERSHIPFINANCIAL
MGT.
TOP:
MIDDLE:
ENTRY:
10
Management’s commitments required today
DRIVE VALUESDRIVE VALUES
FINANCIAL MANAGEMENT STANDARDS
CONSISTENT FEEDBACK
TOUGHEN UP PERFORMANCE STANDARDS
11
DO YOU KNOW WHAT THIS MEANS?
DSO ITO
ROIROIC
IRR
CF
OP
GM
GP
GSVNSV
LRP
AOPAPP
ICP
IPO
OLI
DMC
ANP
A&P
T&E
FMO