Crisis Management – control regain

ORGANISATION

  • Global Fire protection company (NYSE Fortune -500)- $10b, 69000FTEs, in 50 countries
    • (AZERBAIJAN- $18m sales, 170 FTEs)

project SCOPE

  • control regain and getting entity back on track

project GEOGRAPHY

CIS (Former Soviet Union republics
(Azerbaijan, Kazakhstan, Georgia)

FINDINGS

  • whole management dismissed due to the fraud found
  • lack of basic procedures / controls
  • poor corporate culture
  • lack of controlling tools
  • Risk of entity closure
  • Olds Management had stolen compnay stamps and were able to produce “fake contracts”

CHALLENGES

  • Poor corporate culture
  • Complete mess in management
  • Low awareness of the corporate standards in :
    • compliance
    • controlling
    • accounting policies
    • reporting
  • purchases on Bazaar without invoices, to have lower price
  • Demotivated staff
  • Time Pressure

ACTIONS

  • accounting and month closing procedures implementation + training
  • intensive compliance training for whole staff
  • situation audit (processes & profitability)
  • improvement plan roadmap
  • ensured delivery of Plans & Strategies
  • ensured integrity of all financial requirements (general accounting, period-end closing, group reporting, statutory reporting, controlling forecasting and budgeting)
  • framework and compliance with SOX and Group Policies

DELIVERABLES

  1. Control culture built
    • all staff being trained with compliance procedures
  2. transparency in book keeping
    • all transactions supported by proper evidence
  3. standardized and simplified processes and procedures (+ documentation)
    • Corporate controls and procedures implemented, and permanently verified
  4. Decision to withdraw from Azerbaijan
    • Entity sold to another company interested in the Azerbaijan market

EXPERTISE APPLIED

Finance and Accounting

  • Strategic Fin. Planning, Execution
  • Budgets/Forecasts/Actual P&L/BCF
  • FP&A, Statutory, Group Reporting
  • Financial and reporting discipline

Strategic Planning and Vision

  • Understanding the strategic rationale behind the carve-out,
  • setting clear objectives,
  • aligning the objectives with the overall business strategy

Change management

  • addressing staff concerns,
  • facilitating cultural alignment
  • operational processes streamlining

Project management

  • proper process planning
  • roadmaps preparation and execution
  • efficient resources allocation
  • Risk Managment

DOWNLOAD FILE

Crisis Management, Control regain (pdf) – less than 1MB

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