13.05.19
CFO Spotlight: Tom De Clerck, Inchcape Shipping Services
We speak to Tom De Clerck previously of Inchcape Shipping Services (ISS), about his experiences of managing teams and businesses as a CFO. With an international career spanning 25 years, we discuss the benefits of Dutch Polder, the 7 C’s of finance, managing uncertainty and how to hire and retain top talent in a competitive market.
HedgerWay: Throughout your career you have had the opportunity to work internationally. How have you found the cultural transitions and what skills have you focused on to maintain team success?
TDC: I’ve had a lot of exposure working in different cultures which has been invaluable to success in my career. I quickly learnt to adjust to different working styles and cultures. I enjoyed working in Singapore and Asia which is always organised and structured, there is a lot of transparency in how they manage business which is great as a CFO. Working in France was a very different challenge and is perhaps another interview for another day!
Whilst with ATPI, based in Amsterdam, the company went through a period of restructuring and we had to work hard to restore the trust it had lost with both customers and staff. I worked on a social plan with the works council using their preferred method of the Dutch Polder model; consensus decision-making. People understood that change was needed and were willing to collaborate and discuss new ideas to rebuild the business. Without hierarchy, our people were able to communicate and engage openly with each other. This was my first important lesson: When making tough decisions, encourage your team to speak openly and communicate with confidence.
HedgerWay: Through your career, you have seen the good, the bad and the in-between; acquired businesses and grown them, turned around loss makers and divested non-core assets. How have you kept your teams motivated during difficult times?
TDC: I have found that working in collaboration with my teams has been important to both their motivation and my own. For this to work effectively, I always ensure that we all maintain good dialogue through the ups, the down and the turnarounds, to face our challenges and enjoy our successes together.
For example, at ISS there were a lot of complexities that required managing to hit our refinancing deadline, as the business went through its biggest changes in its 170 year history. In early conversations with the syndicate of banks we were working with, three of the six members said they wanted to step out of the process and so we were faced with a holding period.
We decided to divest from all the non-core businesses of the group in around 15 jurisdictions, which in turn created challenges on three, intrinsically linked, fronts Firstly, the challenge of hitting the refinancing could not be met until we had finished divesting, as we needed the funds. Secondly, the accounts could not be signed until the refinance was complete; And of course, this could not be complete until the divestment was done. It was an extremely demanding time for the team and the wider business.
Overcoming these challenges, I consider to be one of my key successes to date. We have the satisfaction of knowing that there is a great team in place that can focus on the core strategy of the organisation without any distractions. That the group can rebuild with a fresh and promising future is something in which we can all be proud.
As a CFO, managing uncertainty during difficult times is critical. A CFO must exude calm to show that they are managing that uncertainty however, being honest about the situation is equally as important. At ISS, the team was split internationally so we had regular update calls to share the status of what was going on, what the challenges were and what the plan of action was. The support from a very competent team to help us throughout the process was a testament to the people within the business and ultimately lead to us overcoming a very difficult time.
HedgerWay: You returned to ISS in 2017 after a brief stint away, by which time people you had hired during your original tenure had become senior leaders, the mark of a successful hiring policy. What advice would you give to other CFOs when hiring and retaining talent?
TDC: Looking ahead as a CFO is extremely important and it is great to hear when people are progressing within the business and their career. During interviews, I try to provide an understanding of the long-term goals of the business to give people an insight into the future. While I expect them to have a great eye for detail, it’s important to explain what the business is focusing on and why we are working that way to determine their fit within the business.
In terms of retaining talent, my advice is to encourage your teams to remain curious, to observe and ask questions. It’s important to network within the company as well as externally. Give your team credit for their success, it will help to generate enthusiasm, keep them excited about what they are doing and help maintain their pride in working for the company.
During times of uncertainty it’s not always easy to keep people motivated. When there are challenges, I make sure we have regular assessments of key areas to improve things for the better within the team. This keeps everyone engaged and aligned with the objectives of the department.
HedgerWay: Although you have operated at Executive level, you have retained a hands-on approach and in close proximity to your team. How has having a strong personal relationship with your team impacted on the strategic focus you can dedicate to the business as CFO?
TDC: You do not learn how a business operates in a head office. It is important to be on the ground, to feel the pulse of the team, to listen and talk to them. This enables you to develop your strategic influence during decision-making and gives you an understanding of how your decisions will affect your team.
In finance, listening to the customer is very important as it is the customer who pays. I always encourage my team to join visits or talk to customers at networking events. As a finance team we are not just limited to our numbers, we should see beyond them.
It’s important to have a strong relationship with your employees while maintaining a professional manner. You need to possess clarity and a clear framework with an authority matrix in place to demand the correct rules of engagement during internal communications. Having the correct KPI’s in place to measure performance and drive the right behaviour with clear objectives is crucial. Managing a team simply requires some discipline and an open-door policy.
Ultimately, finance is the rule of the seven ‘C’s’. A lot of it is about cash and costs which need to be consistently managed. It’s also about control and compliance. We are responsible for the governance within a business and in today’s world, compliance is becoming more and more important. From a finance team perspective there is the importance of the C of credibility and communications and finance needs to make sure they can give a commercial input to the business as well.
HedgerWay: Alongside your career you are also a family man, how do you manage to balance both and what advice would you give to someone who struggles in this area?
TDC: I can find it difficult to balance my career with my family. There have been times I have had to leave early from a holiday or have had to change plans completely. My advice is to plan as far in advance as possible and communicate openly with your family about your work commitments. As a CFO there may suddenly be a change with the agenda of a shareholder or an M&A project, so it’s a combination of planning but maintaining the mindset of agility and flexibility.
If you would like to feature as our next CFO in our spotlight series, contact HedgerWay Business Manager Jessica Gardiner here.
HedgerWay: Throughout your career you have had the opportunity to work internationally. How have you found the cultural transitions and what skills have you focused on to maintain team success?
TDC: I’ve had a lot of exposure working in different cultures which has been invaluable to success in my career. I quickly learnt to adjust to different working styles and cultures. I enjoyed working in Singapore and Asia which is always organised and structured, there is a lot of transparency in how they manage business which is great as a CFO. Working in France was a very different challenge and is perhaps another interview for another day!
Whilst with ATPI, based in Amsterdam, the company went through a period of restructuring and we had to work hard to restore the trust it had lost with both customers and staff. I worked on a social plan with the works council using their preferred method of the Dutch Polder model; consensus decision-making. People understood that change was needed and were willing to collaborate and discuss new ideas to rebuild the business. Without hierarchy, our people were able to communicate and engage openly with each other. This was my first important lesson: When making tough decisions, encourage your team to speak openly and communicate with confidence.
HedgerWay: Through your career, you have seen the good, the bad and the in-between; acquired businesses and grown them, turned around loss makers and divested non-core assets. How have you kept your teams motivated during difficult times?
TDC: I have found that working in collaboration with my teams has been important to both their motivation and my own. For this to work effectively, I always ensure that we all maintain good dialogue through the ups, the down and the turnarounds, to face our challenges and enjoy our successes together.
For example, at ISS there were a lot of complexities that required managing to hit our refinancing deadline, as the business went through its biggest changes in its 170 year history. In early conversations with the syndicate of banks we were working with, three of the six members said they wanted to step out of the process and so we were faced with a holding period.
We decided to divest from all the non-core businesses of the group in around 15 jurisdictions, which in turn created challenges on three, intrinsically linked, fronts Firstly, the challenge of hitting the refinancing could not be met until we had finished divesting, as we needed the funds. Secondly, the accounts could not be signed until the refinance was complete; And of course, this could not be complete until the divestment was done. It was an extremely demanding time for the team and the wider business.
Overcoming these challenges, I consider to be one of my key successes to date. We have the satisfaction of knowing that there is a great team in place that can focus on the core strategy of the organisation without any distractions. That the group can rebuild with a fresh and promising future is something in which we can all be proud.
As a CFO, managing uncertainty during difficult times is critical. A CFO must exude calm to show that they are managing that uncertainty however, being honest about the situation is equally as important. At ISS, the team was split internationally so we had regular update calls to share the status of what was going on, what the challenges were and what the plan of action was. The support from a very competent team to help us throughout the process was a testament to the people within the business and ultimately lead to us overcoming a very difficult time.
HedgerWay: You returned to ISS in 2017 after a brief stint away, by which time people you had hired during your original tenure had become senior leaders, the mark of a successful hiring policy. What advice would you give to other CFOs when hiring and retaining talent?
TDC: Looking ahead as a CFO is extremely important and it is great to hear when people are progressing within the business and their career. During interviews, I try to provide an understanding of the long-term goals of the business to give people an insight into the future. While I expect them to have a great eye for detail, it’s important to explain what the business is focusing on and why we are working that way to determine their fit within the business.
In terms of retaining talent, my advice is to encourage your teams to remain curious, to observe and ask questions. It’s important to network within the company as well as externally. Give your team credit for their success, it will help to generate enthusiasm, keep them excited about what they are doing and help maintain their pride in working for the company.
During times of uncertainty it’s not always easy to keep people motivated. When there are challenges, I make sure we have regular assessments of key areas to improve things for the better within the team. This keeps everyone engaged and aligned with the objectives of the department.
HedgerWay: Although you have operated at Executive level, you have retained a hands-on approach and in close proximity to your team. How has having a strong personal relationship with your team impacted on the strategic focus you can dedicate to the business as CFO?
TDC: You do not learn how a business operates in a head office. It is important to be on the ground, to feel the pulse of the team, to listen and talk to them. This enables you to develop your strategic influence during decision-making and gives you an understanding of how your decisions will affect your team.
In finance, listening to the customer is very important as it is the customer who pays. I always encourage my team to join visits or talk to customers at networking events. As a finance team we are not just limited to our numbers, we should see beyond them.
It’s important to have a strong relationship with your employees while maintaining a professional manner. You need to possess clarity and a clear framework with an authority matrix in place to demand the correct rules of engagement during internal communications. Having the correct KPI’s in place to measure performance and drive the right behaviour with clear objectives is crucial. Managing a team simply requires some discipline and an open-door policy.
Ultimately, finance is the rule of the seven ‘C’s’. A lot of it is about cash and costs which need to be consistently managed. It’s also about control and compliance. We are responsible for the governance within a business and in today’s world, compliance is becoming more and more important. From a finance team perspective there is the importance of the C of credibility and communications and finance needs to make sure they can give a commercial input to the business as well.
HedgerWay: Alongside your career you are also a family man, how do you manage to balance both and what advice would you give to someone who struggles in this area?
TDC: I can find it difficult to balance my career with my family. There have been times I have had to leave early from a holiday or have had to change plans completely. My advice is to plan as far in advance as possible and communicate openly with your family about your work commitments. As a CFO there may suddenly be a change with the agenda of a shareholder or an M&A project, so it’s a combination of planning but maintaining the mindset of agility and flexibility.
If you would like to feature as our next CFO in our spotlight series, contact HedgerWay Business Manager Jessica Gardiner here.