2 shaun skene export

© 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 Collections
Regional OTC
Centre of excellence Credit
Business Process Owner
Dedicated 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
5
Optimise first
before you
automate
Be Prepared for
Resistance

reserved.
reserved.
reserved.
6
Evolution
• Optimise
process
• Standardise
• Automate
• Annual
review of
process &
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
PERFORMOPTIMIZEImprove
Change
Image
Improve
Visibility & Drive
Improvement
ACTIONANALYZE
Refine

Eliminating Non Value Add
7
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
8

Is DSO Dead?
9
• Prevention of Sales
• Is it the True Measurement
of 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
10

reserved.
reserved.
Evolution
• Optimise
process
• Standardise
• Automate
• Integrate
• Annual
review of
process and
Getpaid
• Eliminate
NVA
• Track
meaningful
metrics
• OTC merge
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
Improve
Change
Image
Continuous
Improvement
ACTIONANALYZE
Repeat
PERFORMOPTIMIZE
11

Managing Remotely
12
• 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
13

Standard Operating Procedures (SOPS)
14

Tool Kit
15
• 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
16
• Cash Targets Are not Linear
• Use Historic Data To Establish Pattern
• Communicate to Wide Audience

End of Day Activities
17
• 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
18
• 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”
19

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 it 20

Q&A
21

2 shaun skene export

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