Hexion – Brochure 2020

Responsible Chemistry made easy with procurement P ROJ E C T PA RT N E R S

Responsible Chemistry made easy with procurement Nathan Fisher, Executive Vice President, Chief Procurement Officer, at Hexion, reflects on a global procurement vision that empowers people to make sustainable change

WRI T T EN BY PRODUCED BY

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D al e Bent on K i r on Chav d a

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hat does sustainability truly mean to a procurement function? A number of procure-

ment professionals and organizations are increasingly shifting their focus toward sustainability and how procurement can play a key role in achieving key sustainability goals and driving real change, but how do we actually quantify what it means to procurement?

For an organization like Hexion, a leading manufacturer serving the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies designed to “address the most pressing issues of our time,” sustainability is the very beating heart of the company and this is reflected in each and every facet of its business strategy through its “Responsible Chemistry” ethos. Hexion is dedicated

compete in any market. Period. If we're

to the safe manufacturing and supply

not doing our job right then the busi-

of its products and so the company has

ness can't do what they need to do in

successfully positioned its procurement

the markets and with the customers they

function as one of the key driving forces

want to serve.”

behind this commitment.

“We are a critical element of our value

“We have plants all over the world and many types of materials, so we have

creation strategy,” explains Nathan

to keep the plants running. It all starts

Fisher, Executive Vice President, Chief

with that commitment to the environ-

Procurement Officer at Hexion. “Our

ment and to safety. So, I don't just go get

business partners understand that we

cheap products from suppliers who run

have to do our job right in order for us to

cheap sites. Materials we buy must be

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competitively priced, but you must also

from this unique position he has seen

adhere to high levels of safety standards

firsthand the evolving perception and

and environmental standards to be a

indeed the evolving role that procure-

supplier of ours.�

ment can have in an organization. For

Fisher is a rarity in the procurement

him, one of the biggest changes first

space in that he has been Executive

and foremost is one of accountability. “If

Vice President of Global Procurement

you go back to when I first came into the

at Hexion for 15 years. Where most

leadership role, procurement was more

find themselves moving from company

of a function and it was kind of an Island.

to company completing procurement

People went into procurement and they

projects within a specific timeframe,

stayed in procurement. You didn't get a

Fisher has remained with Hexion and

lot of visibility from within the company,� w w w . c p o s t r a t e g y. c o m

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he says. “We have our raw materials,

a major function and this paved the way

which represents over 70% of the cost

for greater visibility and accountability,

of goods sold. If you put in our indirects

something of a double edged sword

in logistics, it's even more. For some

for Fisher. This move represented a

companies that same metric is under

big change for Hexion and a clear sign

50% or under 30% in some cases, which

that procurement would become a true

breeds this notion that procurement is

accountable and impactful organization

just a function.”

that needed to perform at a high level.

Fisher points to senior leaders at the time recognizing that procurement was

Another big shift for Fisher has been the collaborative efforts of business

“ If we're not doing our job right then the business can't do what they need to do in the markets and with the customers they want to serve” — N AT H A N F I S H E R , E X E C U T I V E V I C E P R E S I D E N T, CHIEF PROCUREMENT OFFICER, HEXION INC

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leaders and sales leaders with regards

information,” says Fisher. “Now there is a

to raw materials and how the teams

lot of transparency, visibility, and collab-

understand and align with one another.

oration. There are real value driven

Compare this to 15 years ago and, by his

conversations between sales leaders

own admission, the island approach was

and business leaders, not just with the

very much the law of the land. “It was a

procurement leaders and commodity

case of having one guy over here doing

managers. We are talking collaboratively

one thing and they hand over informa-

with the people on the frontline about

tion, and the business team then does

what's happening in the markets.”

their own independent review of the

With accountability and visibility comes

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HEXION

clarity and efficiency, but there is also

looked to install a more collaborative

an increased pressure. More voices in

culture. “We broke that island mold very

the mix means more eyes on the perfor-

early. We just threw it out and said that

mance, something that Fisher is happy

is not going to be the way it is. You have

with, but admits that this is something

to be very comfortable with collaborating

that people need to get on board with

with everyone further,” says Fisher.

as a regular part of the strategic plan-

“When we are talking to people in

ning approach to global procurement.

other companies, it's becoming more

“Once again, if you want visibility, you're

common to find former procurement

going to be comfortable with the fact

leaders in leading roles. We do the same

that you're going to be transparent and

thing too. As an example, the leader of

have a lot of conversations and be open

our formaldehyde business, which is one

in sharing,” he says. “It's about sharing

our three major business groups used to

your commercial strategies, what you're

be in procurement. When we, the chem-

trying to do and how you want to be as

ical industry, get to a position where that

a partner. If you really want to be a value

crossover is more commonplace, the

adding component of the company, you

collaboration between partners is going

should want that.”

to increase exponentially because every-

Fisher admits that this was a big change in procurement and process

body's starting to work together.”

As previously mentioned, Fisher has

for Hexion, but is keen to highlight that

been with Hexion for 15 years and when

over time the company’s procurement

asked what it is that has kept him there

staffing has changed in that where once

for such a long time, he muses and

upon a time it was very much engineer

admits that it’s a good question. What

and technically driven, it’s now made up

has kept him so motivated and engaged

of different mindsets and varied experi-

for so long? “I love to develop people,”

ences. This speaks to a key part of what

he says. “I like to coach them and I enjoy

makes procurement at Hexion different.

watching others develop, move up and

Fisher highlighted the traditional ‘island’

move on, and achieve success. If people

approach to procurement and soon

become other CPOs and business

after he joined the business this was

leaders and other high-level leaders in

“completely thrown out” as the company

companies then I think that's fantastic. I w w w . c p o s t r a t e g y. c o m

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have a passion for what I do and I have a

“We're going to do this on all the core

passion for that development.”

skills that you're here to learn and to do

An admirable and honest approach,

better. And people get invested in them.

but why Hexion? Many CPOs the world

We have to put the time and energy into

over talk of training and developing

that and it's not just me. All the leaders

their people, so what makes Hexion an

and teams do it.. We don't bring external

environment worth sticking around for?

people to do that. We're invested in this

“I spoke of accountability and valuing

and our people see that.”

procurement, but where others simply

Another key area that Fisher is proud

say that, Hexion is absolutely there as a

of is its leadership opportunities. The

company,” beams Fisher. “Hexion recog-

procurement leaders regularly get

nizes the value of the position. If I were

together and collaborate and share the

to look at this as just a building block

processes, the initiatives they are running

to get to my next salary, most people

and the skills required to be in those

wouldn't stick around. Hexion knows this

positions. When people have an inter-

and truly values their leaders and they

est in learning leadership skills, Hexion

want them to succeed and they want

creates a situation that allows these

them to stay.”

people to lead teams in order to learn,

Hexion focuses on the development

so they're comfortable in those environ-

of commercial skills through its own

ments. “That's what our whole purpose

training programs, which vary from day

is,” explains Fisher. “Whatever this

long training sessions to multiple day

procurement professional is, how can we

long workshops. The company actively

develop and give them the experiences

supports rotating people into and out of

so they are comfortable in whatever they

procurement to drive a diverse mindset

have to face, whether it's in their current

and experience. Fisher personally leads

role or more of a leadership role within

some of these programs. “It is impor-

procurement or other commercial teams,

tant to the people; we're going to spend

that's how we're investing.”

our time investing in you, not just to sit

Focusing specifically on that procure-

through this. We're going to have lots of

ment lens, Hexion leverages a procure-

conversations about what you experi-

ment compliance review board. This

enced out there in the world,” he says.

global team partners with legal experts to w w w . c p o s t r a t e g y. c o m

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focus on compliance areas that procurement will face across the world. This group works to develop and provide the right education to procurement members as to how they should conduct business anywhere in the world. “It’s about asking whether we are given the right education, the training, the processes in order to succeed?” he says. “We put on a number of sessions every year that look at the problems facing a commercial/ procurement person in the world and we talk through it, we do scenarios, we play them out and then we say, ‘How would you handle this or how would we do this?’ As leaders we're invested in that.”

For Fisher, this is all focused on enabling an environment that shows the procurement teams of Hexion that their leadership supports them. This becomes a network in which they can immediately ask for advice and check in and use it as a sounding board, and one that is actively developing them through new training and development work. For a global company like Hexion, the value of this is priceless. “The key is to do the right thing,” says Fisher. “We're trying to develop them so they understand what to do when they get to those scenarios.”

Investing in people is a very clear vision for Hexion, but Fisher will be the w w w . c p o s t r a t e g y. c o m

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U N D E R S TA N D I N G E Q A N D H I R I N G F O R I T I N A P O S T- PA N D E M I C W O R L D

first to admit that this has to generate

Cost is another focus, for it is the tradi-

results in one form or another. At its

tional mission statement of procure-

very core, procurement is results driven

ment. Fisher again points to the ways

and so Fisher and procurement have

in which his teams use key metrics for

to be able to reward that great faith

this but more importantly for him there

placed upon them by the company with

is a spotlight on how well his teams are

successes, cost savings and tangible

buying the materials and this speaks to

results in line with the company’s stra-

that investment in people. “You have to

tegic goals. One category that he, and

be transparent and you have to show

many in the business proudly discuss, is

these metrics and how we are driving

environmental results. Fisher points to

these results," he says. “You work with

the number one line of questioning from

your commodity manager, your leaders

him and his team: “If I've got my logistics

and your businesses to show how we

carriers, am I having too many incidents?

need to get better or to show how we

What's happening? Am I seeing a lot of

are performing well. Hopefully, all of this

injuries? What is happening in that area?

and having a better equipped team of

Are we seeing this across more carri-

people who are engaged with procure-

ers?” he says. “There is a major focus

ment is translating into better sales and

in our company on those things and we

better customer relationships. We go to

need to perform to that and track those

that next level to show, have that deeper

incidents.”

conversation of finding out how well

Naturally, supplier relationships are

we're buying material in the markets

the key to procurement and by invest-

against our competition, or how we’re

ing in its procurement people, Hexion

performing on the sustainability and

has people that are switched on and

safety perspective. Ultimately In the end,

engaged. This is particularly key to

we have enabled an environment that

another success for Fisher; supplier

allows us to have the conversation with

assurance. “Are we getting materials to

people that says we are performing really

our plants, quality materials at the right

well in this area but also, here's an area

time?” he says. “Again, we track to that

that we're currently focused on to make

very well. You have to have that focus to

better.”

do that.”

The supplier relationships are w w w . c p o s t r a t e g y. c o m

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incredibly important from the outset for Fisher. He and his team ensure that these are relationships built on honesty and integrity. Fisher goes as far as saying that no amount of money in the world would make him and his team violate either of those things. “Suppliers see that and they know that we are ethically-driven,” he says. “In the chemical industry, it's more about building strategic relationships. We are still hard negotiators. We bring expectations when there is something changing but there's a respect for our suppliers.”

Through its Responsible Chemistry ethos, Hexion takes its sustainability responsibility incredibly seriously. The sustainability conversation has changed incredibly so in recent years, and so the company has ensured that it is both structured and positioned itself in markets that allow it to look at its sustainable approach to its operations and make active changes.

“As a procurement organization, we are actively supporting Hexion’s initiatives.

However, sustainability flows along with community enhancement and involvement. We're connected with the external world. 80% of our job is external with suppliers and carriers and we leverage partners in the world on sustainability,” 18

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says Fisher.

“For Hexion, before we talk sustainability, we always talk about safety. It’s very important to care for your associates, their families and caring for all our stakeholders and our plants and our environment, that has always been a part of our culture.”

After what has been 15 incredibly successful years, building and enabling a procurement function that truly drives Hexion forward, the future still represents one of opportunity for Fisher and his team. With a digital architecture program on the near horizon, one that will reshape and digitally enable the user experience in procurement through data analytics and contract management, Fisher is excited to see this next chapter of procurement unfold.”

“We’re just looking to improve the way the professional procurement person does their role, and make them better at what they're doing,” he says. “It's very exciting for us, for the users and for the suppliers.”

Fisher is a man that very much believes in the power of leadership and using that power to develop others and empower them. It’s what he’s done his whole career and what he will no doubt strive to do until the day he retires. For him 20

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“ We have to put the time and energy into that and it's not just me. All the leaders and teams do it. We don't bring external people to do that. We're invested in this and our people see that” — N AT H A N F I S H E R , E X E C U T I V E V I C E P R E S I D E N T, CHIEF PROCUREMENT OFFICER, HEXION INC

there is no secret to success, no silver bullet or lightning in a bottle. It’s always about learning. “The most important thing a leader can do is put the right team in place and understand how you can support them,” he says. “Put in something that says people feel good to come work in your organization because you're going to support their development and their future.

“In doing that we get very good people that come to procurement.

They go off and do very good things, whether it's in another organization or another company, they do good things.

I think that's the key; having an environment where people feel that they are supported in everything they do.”

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www.hexion.com