1. 8/25/2016 1
CFO Summit XVIII
Building High Performance Global Finance Organizations

2. 8/25/2016 2
Alberto Elli
Group VP and Controller
Global Finishes Group

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Agenda
• Mapping the strengths of a multigenerational department
• Establishing and promoting career development programs
• Developing effective performance management systems
• Identifying and preparing suitable high potentials to replace key leaders
• Being a great company helps: The case of Sherwin-Williams

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The paint and coatings market looked like this in 2000…
United States
35%
Latin
America
9%
Europe
32%
Asia Pacific
18%
Canada
3%
Other
3%

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The today challenges and opportunities of
Sherwin-Williams are quite common in the
marketplace ...

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The $81 billion paint market looks like this today…
United States
25%
Latin
America
12%
Europe
30%
Asia Pacific
26%
Canada
3%
Other
4%

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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

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Why Invest in Global structures?
To better achieve the following goals:
• Accelerate growth globally
• Better serve customers around the world
• More efficiently utilize assets globally
• More effectively enter new markets

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How Will We Utilize Assets Better?
‘Groupify’ Manufacturing
‘Groupify’ Finance
‘Groupify’ HR
And more ...

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How Does this Change the Game?
‘America’s Paint Company’ is about to become
‘The World’s Paint Company’

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LONG TERM
STAKEHOLDERS
VALUE
GENERATION
 CASH GENERATION
 STRONG BALANCE
SHEET
 ORGANIC
GROWTH
 ACQUISITIONS
 STRONG BUSINESS
MODEL
 SOLID ORGANIZATION
MARKET
SHARE
IMPROVE
COMPETITIVE
POSITION
COMPLIANCE
1. Long Term Stakeholders Value Generation
A Map to position your best talents -> where they can add most value added

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GFG – Groupification Matrix
- Customer Facing +
A/P Mexico
(including LatAm)
A/P Auto/CC/P&MTransactional
Segment Focus
Execution
Portfolio GuidanceStrategic
ORACLE LatAm
Europe
Reporting/PlanningHyperion for
Consolidation
Expert Based
Services
DivisionGroupCorporate
A/P Mexico
(including LatAm)
A/P Auto/CC/P&MTransactional
Segment Focus
Execution
Portfolio GuidanceStrategic
ORACLE LatAm
Europe
Reporting/PlanningHyperion for
Consolidation
Expert Based
Services
DivisionGroupCorporate
2. Centralization Matrix
A Map to create strategic career planning in a global corporation

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Enterprise Process Model for SHW
Adds-on
Product Vision
Formulation POSPlanning
Hyperion
CRM
Global Customers
Std
Product Code
(Raws, FGs)
Advanced
Product
Catalog
Reporting
FST
Shared
Services
QAD
MRP
Global
Purchasing
Efficient
Asset
Utilization
"Campus Concept"
1. North America
2. South America
3. Asia
4. Europe
Efficiency and
Compliance
Supply Chain
Backbone
Financial
Backbone
Global Std
COA
3. The case for ERP and Shared Services
A Map to position “customer support” and “back-office support”

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4. The three maps are one of the tool we can use to understand
and to capitalize on the strength of a multigenerational department
-> Diversity is the key to compete in Global Business
• You can use the maps statically, to position your talents where you have
current and future business needs
• You can use the maps dynamically, to track and to explain career paths.
They are useful to explain progresses made and roadblock than can ...
... or cannot be solved!
• You can use the maps “geographically”, to keep the strengths of your
department balanced and succession plans current.

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• from the ’80s -> Tutor (to achieve functional expertise)
• from the ’90s -> Mentor (to achieve management expertise)
• 21st century -> to create value in a de-layered / empowered organizations
... a complete tool-box for your use ...
Principles -> Behaviors -> Competencies -> Business Results
5. Establish and promoting career development programs
“Human Tools”

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Impeccable Fiduciary Ethics and Integrity
With Exceptional Internal Financial Controls.
Our duty is to enforce shareholders’ fiduciary responsibility and to protect company assets
(our people, customers, products and physical assets).
We will always respect laws and local regulations, as well as GAAP/FASB/SEC standards
and internal reporting principles
6. Finance Department
Principles -> Behaviors -> Competencies

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1. Pro-Active Leadership inside and outside our Organization
2. Open and direct communication (no surprises)
3. People Development (to attract and maintain best talents)
4. Sense of urgency and focus on priorities
5. Business Acumen (self-development)
6. Finance Department
Principles -> Behaviors -> Competencies

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1. Technical (accounting skills)
2. Cross-functional (to leverage Information Technology)
3. Human (Team Work attitude)
4. Personal (passion to improve)
5. Flexibility (ability to travel, to accept ST and LT assignments)
6. Finance Department
Principles -> Behaviors -> Competencies

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1. Our Profit generation growth must exceed Sales growth
(Flow-through is a key indicator)
2. Our Structure must remain lean (SG&A as ratio to sales)
3. Our ultimate goal is to improve EPS (earnings per share) with the
right balance of Profit and Cash generation
4. Working Capital is the most direct variable influencing our Cash
Flow; CapEx is the second component.
Both are key for Return on Net Assets (RONA)
6. Finance Department
Principles -> Behaviors -> Competencies -> BUSINESS RESULTS

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7. Developing effective performance management systems
to ensure department goals are met
• Formal Performance Evaluation measuring goals attainment to be administered no
later than end of February (must be written and shared with HR).
• If you have variable compensation components, a best practice is to have 60% of
measurable-auditable goals related to Business Results, 20% related to specific
Projects formally assigned and 20% based on Behaviors
• Quarterly “informal” and not planned “check-points” are very useful to assess if
Competencies are being built (take your notes but do not share).
• Constant feed-back (quick comments, to avoid long winded conversations).

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• If you apply the methodology I presented for three years (in the frame of mind:
1.Learn , 2.Work Hard , 3.Over-deliver) it is quite easy to assess Hi-Potentials
(in a documented way) and to establish actionable career paths.
• My preference is to communicate to the individuals they are Hi-Pos and run
the risk to manage high expectations ... this is another dry-test for an high
performing individual: to have some patience and to jump quickly when the
opportunity is starting to materialize ... or make it happen!
8. Mapping + Tools + Behaviors + Performance
= How to define High-Potentials

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9. One lateral step ... to move two steps ahead ...
• Short-term lateral assignments; Round-trip tickets
• Identify and preparing suitable employees to replace Key Leaders
(the importance of an annual and actionable Succession Planning)
My preference is NOT to share succession plans downwards ... they should be agreed
with the incumbent because she/he must be accountable for their drafting and
successful implementations (= a pre-requisite to move-up).
You have to explain why a “lateral” assignment is important and to avoid the trap that
“everything must be vertical” ... remember to build competencies and to fill the
best spots on your maps ....

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10. Intra-corporate Talent Bank
No matter the size and the quality of an organization, one of the most
common “disease” is the silos mentality!
A solution applicable to Finance is to share – quarterly – with other
Divisions/Groups your HiPotentials, the Performers and the DOers with
the objective of:
1. sharing how you are improving the quality of your department
2. presenting openings
3. looking for opportunities in other departments

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Attracting key talents in rough financial times:
• do not give up with Interns programs
• be visible outside (College programs)
11. Being a Great Company … helps!
The Case of Sherwin-Williams

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Brand Strength
Respected Corporate Brand
BusinessWeekBusinessWeek
““50 Best Performers50 Best Performers””
20072007
BusinessWeekBusinessWeek
““50 Best Performers50 Best Performers””
20072007
BusinessWeekBusinessWeek
““50 Best Performers50 Best Performers””
20072007
BARRONBARRON’’SS
““500 Best500 Best
CompaniesCompanies””
20072007
BARRONBARRON’’SS
““500 Best500 Best
CompaniesCompanies””
20072007
BARRONBARRON’’SS
““500 Best500 Best
CompaniesCompanies””
20072007
FORTUNEFORTUNE
““100 Best Companies100 Best Companies
to work forto work for””
2005 & 20062005 & 2006
FORTUNEFORTUNE
““100 Best Companies100 Best Companies
to work forto work for””
2005 & 20062005 & 2006
America’s Most
Trusted Companies
WHO CAN
YOUTRUST?
Forbes
“America’s Most
Trustworthy
Companies”
2007
America’s Most
Trusted Companies
WHO CAN
YOUTRUST?
America’s Most
Trusted Companies
WHO CAN
YOUTRUST?
Forbes
“America’s Most
Trustworthy
Companies”
2007
Forbes
“America’s Most
Trustworthy
Companies”
2007

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Fortune’s 100 Best Companies

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THANK YOU !