1/91 – 11/01
S M I T H & N E P H E W
($1.7 billion publicly held developer, manufacturer and marketer of innovative medical devices with operations in over 34 countries.)
7/98 – 11/01
SMITH & NEPHEW AUSTRALASIA
Melbourne, Victoria, Australia
Promoted to Finance Director of Smith & Nephew’s Australasia region (Regional VP Finance/Board Director equivalent). This 3-year secondment combined line and staff responsibilities in a geography that was a microcosm of the global business, serving the orthopaedic, endoscopy, wound management, casting and bandaging, ENT, post-surgical bracing, rehabilitation, and consumer healthcare markets.
Operationally, BPCS, MRPII and shop floor control systems were implemented, professional purchasing disciplines introduced, sales and operations planning (SOP) disciplines improved, and standard costs re-cut. Focus on gross margin issues and product line rationalization followed, and ROI-based cost controls were put into place. Operating profits increased over 50% in two years while share gains were achieved in all markets.
Global strategy changed significantly during this period. Five of the eight businesses were identified as non-core and Australia and New Zealand production facilities were slated for decommissioning. I was promoted to Director, Corporate Change Programs and Finance (Senior VP/Regional CFO/Board Director equivalent), responsible for reshaping the businesses in the region.
In support of global strategy, local production was shut down and products re-sourced or rationalized, a major acquisition was integrated, the consumer healthcare business (which had represented over 35% of the region’s sales) was divested, and a joint venture with our former competitor was set up.
We revised regional business strategy, divesting of a non-focus regional product line, rationalizing marginal SKUs, outsourcing warehousing and distribution, disposing of co-located production/office/warehouse facilities, and restructuring the regional businesses into focused, indication-based, professional sales and marketing operations.
Following (with the permission of Smith & Nephew) is a summary of financial performance during my secondment and the preceding two years:
Year Sales %Chg OpPft %Chg OpMrgn% ROCE%
2001 158.5 -18.9 18.6 -13.5 11.7 39.4
2000 195.4 -7.1 21.5 +11.4 11.0 37.7
1999 210.3 +12.8 19.3 +35.0 9.2 27.2
1998 186.5 +11.7 14.3 +4.4 7.7 19.6
1997 166.9 n/a 13.7 n/a 8.2 20.8
Notes to financial table:
(1) Sales/profits stated in AUD millions.
(2) 2001 includes joint venture sales and profits under management of AUD35.2 million and AUD3.8 million, respectively.
(3) The consumer healthcare business was divested at the end of the 3rd quarter, 2000.
Other projects and initiatives:
* Restructured Australian banking for tax efficiency, saving AUD0.2 million annually.
* Implemented Australia’s goods and services tax (GST), effective July 1, 2000.
* Y2K.
By the end of my secondment the region reshaping was substantially complete and the core businesses were growing to plan, contributing to the 80+% increase in share price rewarded by the stock market over the 3-year period. With the acquiescence of S&N's Finance Director, I declined a London-based head office role that did not align well with my career goals, electing instead to return to the US to pursue personal endeavors for a period prior to continuing my career.
Director, Corporate Change Programs and Finance(6/00 – 11/01). Responsibilities: change programs, finance, accounting and tax; customer service; supply; facilities; regulatory; sales and operations planning (SOP); treasury; risk management; business strategy development; e-business and IS development; and acquisitions/divestitures.
Regional Finance Director (7/98 – 6/00). Responsibilities: as above excluding change programs, customer service, supply, facilities, regulatory and SOP.
3/94 – 7/98
SMITH & NEPHEW NORTH AMERICA
Memphis, Tennessee, USA
Promoted initially to Group Controller of the $650 million Surgical Products Group, I was promoted twelve months later to Regional Director of Finance for the North American Region, reporting to the Regional VP Finance, the opportunity resulting from a group consolidation. The $1 billion region included divisions and affiliates in the US, Canada, Mexico, Venezuela, Puerto Rico, France, Germany, and Japan.
My primary objective was to drive achievement of regional operating and financial targets through our divisions and affiliates, and through regional initiatives. This was achieved by analyzing the businesses and markets for opportunities, risks and synergies; advising divisions on financial, operational and strategy issues; developing business cases on major initiatives for Board review; regional acquisitions/divestitures; and managing “non-operating” functions centrally (e.g. banking and finance, risk management, treasury, etc.). Select achievements:
* Created private-label equipment financing program with endoscopy division VP Finance, generating over $20 million incremental revenue to date.
* Lead financial executive on regional M&A team – valuation, negotiation, due diligence, and post-acquisition integration. All acquisitions earnings accretive within 18 months of transaction date.
* Restructured and renegotiated US and Japan cash flow financing vehicles, reducing annual interest costs $0.4 million.
* Negotiated cost reductions in insurance policies, while obtaining enhanced cover. Annual savings - $0.3 million.
* Redesigned insurance program, generating $1 million operating cash flow savings.
* Developed cutover plan to transition divested ophthalmic business; executed by local management.
* Negotiated sale of rationalized facility, exceeding anticipated proceeds by $0.3 million.
* Developed foreign currency hedging program in collaboration with S&N’s Treasurer in London; implemented throughout the region in two months.
* Reduced internal budget preparation time by 20%.
* Developed regional reporting system reducing division time by 25%, automatically integrating into the Group’s global reporting system, while facilitating US statutory and SEC reporting.
* Reduced direct headcount by 30%, leveraging efficiency gains and group consolidation opportunities.
Regional Director of Finance (4/95 – 7/98). Responsibilities: acquisitions and divestitures; business analysis and consulting; risk management; treasury; regional financial reporting (internal/external/SEC), budgeting and forecasting; interpretation of US and international financial standards and regional compliance; regional office accounting.
Group Controller (4/94 – 4/95). Responsibilities: as above, excluding acquisitions/divestitures and risk management.
2/93 - 4/93
SMITH & NEPHEW JAPAN, KK
Tokyo, Japan
Interim Finance Director of S&N’s $50 million Japanese business, concurrent with role at Ioptex Research Inc. Managed all financial functions while recruiting a Finance Director.
1/91 - 3/94
IOPTEX RESEARCH, INC.
Irwindale, California, USA
Joined the $45 million ophthalmic division of Smith & Nephew, reporting to the division VP Finance.
Medicare reimbursement changes and similar actions in key European and Asian markets, combined with industry over-capacity, savaged margins of intraocular lens implants, the company’s principal product group. We restructured the business reducing headcount over 40% while improving manufacturing yields 42%, reduced inventories 25% while maintaining customer service levels, and introduced 6 major new product lines.
To help drive sales, free cash, and reduce asset risk, the VP Finance and I developed a private-label financing program with an external leasing principal. Through this and other initiatives, the company’s market share increased from 7% to 9% in a highly fractured market.
To reduce costs without compromising our ability to manage the business, I focused on processes and staff training in my areas. I reduced the month-end close cycle 30% to 4 days, monthly management reporting time 60% to 5 hours, the annual budget process 45% to 4 weeks, and cut headcount 20% from a lean base.
Industry consolidation was inevitable and Smith & Nephew decided to exit the ophthalmic market rather than become acquisitive, divesting the division in August 1994.
Other projects and initiatives:
* Developed and implemented financial systems supporting multi-site, international manufacturing.
* Rewrote chart of accounts enabling efficient product line profitability analysis and project costing, and improving responsibility reporting.
Director of Finance and MIS (1/93 – 3/94). Responsibilities: finance and accounting; internal, external, and statutory financial reporting; budgeting and forecasting; financial analysis; internal control systems; payroll; cash flow management and projections; new product line introductions (financial aspects); management information services (MIS) and technologies.
Director of Finance (1/91 – 12/92). Responsibilities: as above excluding MIS.
1/90 - 1/91
INDEPENDENT CONSULTANT
Mission Viejo, CA
Set up a financial systems consultancy to build further experience in this area prior to re-entering the corporate arena, targeting small companies (less than $10 million). Select engagements:
* Implemented inventory management system reducing client’s carrying costs $20k annually.
* Analyzed financial systems utilization and processes and made recommendations saving client $50k annually and reducing month-end closing time by 25 percent.
8/88 - 1/90
AUGUST INTERNATIONAL CORP.
Orange, CA
Invited to join my client, a $12 million start-up healthcare cost containment firm, as Controller reporting to the CFO. With 40% annual sales growth, the cash position of the company was very tight. I bolstered cash controls and leveraged vendor relationships while we were closing the company’s inaugural round of VC funding. I built the accounting function from ground up, implemented financial systems and internal controls, and designed and implemented a fiduciary cash management system saving third-party administration clients $350k annually.
The company was sold and my position became redundant as a result.
8/85 - 8/88
ERNST & WHINNEY
Irvine, CA
Recruited to “Big 8” accounting firm from university, advancing to Senior Accountant in less than 2 years. Significant SEC experience including two IPOs, S-3s, S-4s and numerous 10Ks and 10Qs. Industry experience: manufacturing, high-tech, medical-tech, healthcare, pharmaceuticals, cable television and other service companies.
CREDENTIALS and EDUCATION
Certified Public Accountant, California, 1988
Bachelors of Business Administration, Magna Cum Laude, Loma Linda University, Riverside, CA, 1985. |
