Jean-Philippe MARTIN, Partner Coach at Visconti, today welcomes Hervé VARILLON, CEO of Crédit Agricole Leasing & Factoring.

Who is Hervé Varillon?

For just over three years, Hervé Varillon has been managing Crédit Agricole Leasing & Factoring, a subsidiary of the Crédit Agricole group that finances professionals, businesses and farmers with so-called “specialized” types of financing.

Hervé has three pillars in life: his family, his role within the Crédit Agricole group and his passion for sport, especially football. He wants to be enriched by experiences but also to enjoy the beauty of life.

To illustrate this vision he always says: “Before being half empty, a water bottle is half full.”

The Crédit Agricole group is a key player and leader in banking, insurance and real estate activities;

What are the specificities of Crédit Agricole Leasing & Factoring?

Although the Crédit Agricole group has a certain reputation, it is often unknown in terms of the scope of its activities, including those carried out at Crédit Agricole Leasing and Factoring.

So who is CAL&F? Crédit Agricole Leasing & Factoring is the structure that finances businesses, professionals and farmers.

CAL&F supports its customers (BtoB model) through “specialized” financing offers, i.e. not with so-called conventional loans but with leasing (rental formulas for investments in material or real estate assets of companies), factoring (a technique for financing customer accounts and invoices from companies and professionals to improve their cash flow) and financing of renewable energies (infrastructures such as solar panels, wind farms, wind farms, etc.) etc.).

Present in 10 European countries, CAL&F has 2,700 people and works with its customers either via the Group's banks — which are the Regional Banks, LCL in France and Crédit Agricole Italy in France and Crédit Agricole Italy in France and Crédit Agricole Italy on the Italian peninsula.

Either through partners or brokers. CAL&F is an ETI that knows how to combine the agility and organization of a human-sized company with the strength of a large Group (Crédit Agricole is the 10th largest bank in the world) in a context of change, development and very strong internationalization.

Hervé took the reins of the company in the midst of the COVID period, with, at that time, the impossibility of meeting teams, partners, customers and with hybrid management

Since then, how has he made his mark, federated the collective and defined the business project?

In April 2020, Hervé took up his position as CEO of CAL&F. His point of support: he already knows the company since he worked there for more than ten years. During the Covid period, Hervé was required to:

- Set up a maximum of interactions and video exchanges to create proximity despite masks and health measures;

- Quickly identify key people and resources to rely on them, such as the CAL&F Management Committee;

- Take action by launching business transformation projects and supporting customers with offers adapted to their needs taking into account the environment;

- Go and meet the teams in France and in subsidiaries, once the travel ban is lifted.

For Hervé, this period proved to be very rewarding because he had the pleasure of managing many unforeseen events on a daily basis.

He triggered a tremendous acceleration at CAL&F and was touched by the strong marks of recognition from customers.

Crédit Agricole Leasing & Factoring is transforming and evolving from a role of Financer to that of a Service Company that must take into account the new consumer uses of businesses.

Any details on the content and impact of this evolution in terms of organization, team mobilization and strategy definition?

For Hervé, we must first of all mention the economic momentum. At the moment, we talk a lot about transitions, the circular economy, the economy of use, which are all impacting elements for banking businesses and particularly for leasing.

Indeed, the world is oriented more on use than on ownership and enters into a circular economy logic that makes it possible to extend the life of goods in order to contribute to the reduction of the consumption of rare resources.

Thus, in terms of financing techniques, we arrive at rental formulas and no longer traditional purchases financed on credit.

Technologies are also evolving, as in the automotive sector with the transition from thermal to electric via the hybrid. However, it is difficult to predict what the best technology will be in a few years.

This therefore leads businesses and professionals to rent a property rather than buying it in order to avoid finding themselves the owner of equipment that would be obsolete tomorrow.

CAL&F's markets are now growing strongly (10% per year). It is necessary to reinvent part of the company and complement its expertise with new service offers in particular.

That is to say, beyond the profession of finance provider, it is necessary to offer customers additional services such as maintenance, maintenance, delivery, reconditioning.

It is therefore necessary to move from a financial model to an industrial model. This is what CAL&F does through acquisitions or partnerships.

Two years ago, CAL&F thus acquired a French structure with a fairly strong European dimension called OLINN, whose main activity is the reconditioning of computer equipment (reformatting, updating and remarketing).

As a social enterprise, Olinn employs people with disabilities on its reconditioning site, which gives it the status of Adapted Enterprise.

Another example, CAL&F has taken a 30% stake in Watèa (by Michelin), a player that offers rental solutions with electric commercial vehicle services. This partnership makes it possible to support Watèa in its development and to share its expertise with CAL&F customers.

Finally, through its Polish EFL structure, CAL&F is a 100% shareholder in a structure in Poland specializing in the long-term rental of trucks. This company, Truckcare, is a major player in the transport sector, which is characterized by very strong decarbonization challenges.

Crédit Agricole Leasing & Factoring is present in Europe with a strong presence in Poland, Germany, Italy, Spain, etc.

In terms of operational governance, intercultural management, daily management, how is this organized?

Crédit Agricole is a group with strong mutual values, drawn from the world of agriculture and rooted in local areas, particularly in France. But internationally, how does this cultural and geographical diversity work?

As soon as the markets and customers are European and international, CAL&F must have a transnational dimension.

Hervé specifies that it is necessary to accept the fact that there are intercultural differences, especially in terms of team management. It is necessary to balance the autonomy and responsibility given in proximity to managers and local leaders who are on the front line with customers.

This involves the establishment of processes, rules, and business line organizations (risks, finances, IT, HR) in order to have a common and global approach while integrating the expectations and constraints of the Crédit Agricole Group.

In this organization, two things should be kept in mind:

- The PPP: Not Everywhere the Same

- The JTD: Never Totally Different

The values of the Crédit Agricole Group and CAL&F must be supported by all entities and it is important to agree on a set of common objectives. At CAL&F, there are four:

- Develop and gain market shares;

- Increase customer satisfaction;

- Ensure the commitment of employees;

- Maintain the profitability and profitability of the company, to anchor its development and to be able to invest over time.

- A crucial challenge as a manager is often the control of one's agenda.

What is Hervé's method and what lessons can he share with listeners?

For Hervé, since COVID, the relationship with time has changed with urgency and reactivity. He does not have a miracle recipe but is very sensitive to this subject and can give some tips:

1. Optimizing your time: very strict management of your agenda
2. Control your time

As CEO, Hervé is very often in demand, so you have to know how to say “yes” but you also have to know how to say “no”. You have to use your time as efficiently as possible with rigor and discipline.

To prepare the files and support him in his reflections, Hervé relies in particular on his Chief of Staff.

In addition, he has reserved time slots in his agenda to have time for employees, customers and himself.

Time is a rare resource, it is necessary to optimize its use and control its consumption.

Last question, if Hervé had a magic wand what would he do with it today?

Hervé would be delighted and would like to be able to increase rare resources such as time and have days that last more than 24 hours, to be with his teams, his family and to practice his passions. Also, it would allow water to be everywhere and for it to be accessible to all because it is a major challenge today.‍

Three key points for auditors, entrepreneurs and managers:

- The image of the water bottle that is filled, is necessarily empty but must always be able to be refilled. This image is linked to the desire, to the dynamic, to the vision that a manager must embody.

- It's not the same everywhere

- Rigor, which is an essential quality for any manager who wants to involve his teams