Deloitte and Lanxess

Set up the financial organisation of an industrial giant and make it fully operational in only three months time? In March 2004, Hugo Rens, financial director of Lanxess NV, accepted the challenge and came through with flying colours - with the help of the Financial Resources team of Deloitte. Now, Rens is no longer looking back: “It’s a win-win situation for everyone."

Chemical titan divides into Bayer and Lanxess

In November 2003, Bayer - the German pharma and chemicals giant - decided to split off its chemicals and part of its plastics division. The production of bulk products would then sail under a new flag: Lanxess. The legal establishment in Antwerp had to be divided in two. But how do you split up central services?

The major user wins the division

Hugo Rens: “We used the ‘major user’ principle, where the division is awarded to the biggest user. But that had to be done differently for the fi nancial department. At that time, the department had a personnel shortage. So, we transferred the entire service to Bayer. And that left Lanxess without financial personnel.”

Lanxess Financial: starting from scratch

So, Lanxess NV had to start completely from scratch. “Create a functional accounting department out of nothing in a couple of months? That’s quite a challenge,” says Hugo Rens, “but very exciting! Because you get to create the organisation exactly as you see fi t. Lanxess is a very dynamic company. So it was appropriate to start with a clean slate. Still, it had to be done quickly. We agreed on it in March 2004 - and we had to be fully operational on 1 July.”

Co-sourcing: a quick and effective solution

“With such a short timeframe, you can’t hire people from the market and train them. They need time to get to know the company. Even though accounting might be an exact science, it differs greatly from company to company. Each organisation has its own procedures and reporting systems. That’s why we decided to co-source the entire department: using experienced in-house people who could adapt quickly and get up to cruising speed on the run.”

Fast, seamless integration

“We started with two people, and by July we had 16. Their integration was fast and seamless. In addition, we took three experienced executives from Bayer Antwerp. They know the company, the processes and the systems. That way, we ensure continuity on the management level, critical information stays inside the company, and final responsibility remains with us. With the Deloitte team included, we have had a top-flight accounting organisation ever since.”

Head and shoulders above the competition

“Why Deloitte? They had already supervised a SAP migration project at Bayer Antwerp. We were very satisfi ed with the cooperation. Their price was very competitive. And they were also prepared to co-source on site. That was a great advantage. Other offices wanted only to work from their own locations, and that was not an option for me. I wanted a team that has a feel for the company and for our own people.”

Perfectly integrated

“The Deloitte team has integrated perfectly. I cannot see or sense any distinction with our own employees − so I don’t treat them any differently. And we receive the same attitude from them in return. And when staff activities are organised, they’re included. No question about it.”

Always a step further

“Know what’s really amazing? The Deloitte employees don’t limit themselves to simply performing their jobs. They think along with us. And dare to introduce new processes and systems. For instance, we used to settle travelling expenses manually. They worked out a completely automated system, something we ourselves did not have the time for. That kind of pro-active thinking plus their company experience are worth gold!”

Extended due to successful business economics

What had been originally intended as a temporary solution (for 18 months max) became a long-term partnership. Hugo Rens: “We were so satisfi ed that we made an excellent agreement with Deloitte. We now have an advantageous fee and super conditions in terms of business economics. It’s an all-inclusive price: training, support, recruitment costs, and flexible working hours are included. As far as we’re concerned, co-sourcing is not at all expensive.”

Co-sourcing makes you versatile

Further advantages of co-sourcing? Hugo Rens: “Number 1 for me is flexibility. Which works in two directions. Now we’re able to keep our hands free to take advantage of changes easily. But we also call on Deloitte on an interim basis to smooth out peaks or to keep our people free for a project. That’s precisely why four new people started on 1 September.”

Win-win situation

So, it’s a win-win situation. Deloitte wins a long-term contract. Lanxess wins strong, dynamic staff members, a very advantageous agreement with regard to business economics, flexibility and all the advantages of co-sourcing. Hugo Rens: “Lanxess’ slogan is Energizing Chemistry. We’ve adapted it to our situation. We now say: Lanxess and Deloitte - Energizing Accounting!”

“I wanted a team that has a feel for the company and for our own people.”

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