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Impact 2013 PowerSteering User Conference
GREG MELQUISTMANAGER, FINANCIAL ANALYSIS
November 7, 2013
What I’d Like to do Today
Introduce you to Ecolab
Share our journey
Keys to success
Future plans
Ecolab By the Numbers
ASSOCIATES
SERVING CUSTOMERS IN
171 COUNTRIES
$30 Billion Market Cap
6,300 Patents
$13 BILLION ANNUAL SALES
44,000 1.3 MILLION CUSTOMERS
90 YEARS YOUNG
25,000 SALES & SERVICE
Ecolab: Uniquely Positioned To Deliver What Matters Most…
CLEAN WATER
SAFEFOOD
ABUNDANTENERGY
HEALTHYENVIRONMENTS
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34%
17%22%
27%
48%
26%
13%
8%5%
31%
27%
6%
36%
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Balanced BusinessSales by Region Sales by Segment
Asia Pacific
Canada
US
EMEA
Latin America
Abundant Energy Safe Food
HealthierEnvironments
Clean Water
Institutional
Industrial
Energy
Other
Sales by Strategy
Ecolab Pro Forma 2012Sales $13B
Deployment Journey
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History of Continuous Improvement at Ecolab Continuous Improvement Culture existed at both legacy companies Formal processes started 2006; initially focused on saving 20 Deployments and 400 belts led by function, business and region Nalco Integration accelerated project and program management capability Training and program driven by small Central Office
Ecolab Europe Renaissance
2006 May 2013Jun 2012Mar 2012Jan 2012
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Champion
EcolabFueling The Future/LSS
Nalco/Ecolab Integration
EcolabFueling The Future/LSS
EcolabFueling The Future/LSS
Nalco/Ecolab Integration
EcolabFueling The Future/LSS
Nalco/Ecolab Integration
Ecolab Europe Renaissance
Nalco GetFIT
EcolabFueling The Future/LSS/
Nalco GetFIT
Nalco/Ecolab Integration
Ecolab Europe Renaissance
Healthcare RDE & IT2014
IT Project portfolio
1900 new projects4000 new users
Champion/ Nalco
Enterprise Excellence
Enterprise Excellence
Scope and Impact
$300M annual savings
3,000 Projects
150 trained black belts (50 active)
615 trained green belts (320 active)
20 active deployments
6 master black belts
Why We Exist
Take costs and waste out, save $
Process improvements
Project execution
Project portfolio set up / prioritization
Integration leadership
Develop talent
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Enterprise Excellence Model Distributed model: business, function or region own results, and
resources
Small central team: train, track, coach, lead mega projects
One Problem Solving Tool set: charters, project plans, interdependency, Kaizen, DMAIC, 7 Step
Results Tracking: PowerSteering is source of truth for gross savings, owned by project leader, validated by finance
Regions: resources aligned to Markets, support functions and businesses
Project Management COE
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Resources, Projects and Results are owned by the Sectors, Functions and Regions
Project PortfolioResources• Deployment Leader• Black Belts• Green Belts• Project Leads
Enterprise Excellence PMO provides training, coaching, support and drives Megas
Results!!
Megas
Enable Growth
Drive Growth
Engage Teams
Deliver Cost savings
Drive Growth synergies
Problem Solving
2013 Objectives
Owned by region, function, division Continuous Improvement and Integration activities
Cross-selling, Cross-supply Service delivery/ commercial excellence
Methodology and training to fit issue (DMAIC, 7-steps, Lean, Kaizen, etc)
8 Mega Initiatives: cross region, cross functional, central coordination
Enterprise Excellence
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Keys to Success
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Keys to Success Top Down Support
PowerSteering is the one source of truth If it’s not there, it doesn’t exist
Engagement with our Financial Community A ‘miss’ with initial launch Rigor around tracking savings
Decentralized approach PowerUsers in each Business/Region/Function
Adoption of the tool Crawl / Walk / Run
Kept the familiar in integration transitions via spreadsheets
Ensure organization ready for the change Ongoing training and support
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Financial Rigor
Each project is assigned a Financial Rep
Financial Rep converts the process metric into a financial metric
Project benefits assigned to division(s) that will see them in their P&L
Flexible model for updating – Project Mgr, Fin Rep, Central Resource
Savings built into division plans and budgeted in PowerSteering Integral to budgeting process, performance tracking and reporting
Each month current period is locked Any adjustments/true ups made in future periods No history changed
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Reporting
Who is driving – Who is benefitting Advanced & Report Wizard Reports
Advanced Metrics More robust reporting on Global Matrixed Structure
Regions: Functions and Divisions Integration Reporting
Basis for Public Reporting Reporting needs to drive project ownership & accountability Pipeline, projects, programs, blended portfolios
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New PowerSteering Dashboards 15
NA Sector Division A Division B
Division C
Division A Division B Division C
Future Plans
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Program Enables and Accelerates Growth Sales process / commercial excellence Growth opportunity assessment Reduce non-selling time
At the Customer for the Customer Projects
Deliver 2% in annual Efficiency Initiatives
Mega Project Execution – the hardest projects that cross function and region
Deployment across each relevant region/business/function
High performing team, known for: Sharing best practices across regions, divisions, functions Exporting talent to organization
Differential advantage for Ecolab
Enterprise Excellence Ambition17
Future Plans
More robust reporting on Global Matrixed Structure Regions: Functions and Divisions
IT Project Portfolio Resource Mgmt, Project Planning, Portfolio Mgmt
Healthcare RDE Stage gate
Supply Chain Probability/Time Analysis Loss Analysis
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1919
Cleaner Safer Healthier