Alcoa
"Alcoa can't wait." In the 1970's, aluminum giant Alcoa used this slogan in a popular advertising campaign featuring a catchy folk song. The song's lyrics said, "Alcoa can't wait for tomorrow," which was a nod to the company's commitment to a better future.
However, Alcoa also can't wait when it comes to a different aspect of its business: Finances. For those who follow financial news and the stock market, the end of every calendar quarter marks the beginning of earnings season, the period of time when companies release quarterly or annual financial results. Investors learn how their portfolios are performing and can analyze future performance.
Earnings season traditionally kicks off when Alcoa announces their results. Alcoa serves as a bellweather for other industries because of its varied product portfolio and broad number of industries it serves, and analysts used Alcoa?s results to understand what's happening with the overall economy. According to Alcoa spokesman Kevin Lowery, Alcoa didn't intentionally set out to have this distinction. It happened as a result of former chief executive Paul O'Neill's desire to keep moving the company forward.
O'Neill served as Chairman and CEO of Alcoa from 1987 to 2000. When he joined Alcoa, it was a rather slow-moving industrial corporation. O'Neill's implementation of quickly announcing earnings was one element of Aloca's successful turnaround. "The idea [to announce earnings results] came during Paul O'Neill's tenure to instead of spending so much time analyzing the numbers, get them quickly and get them published so we could spend more time looking forward instead of so much time looking back," explained Lowery. Although O'Neill retired from Alcoa in 2000, his successors have continued this tradition, shortening this time frame even further.
Alcoa has about 250 locations in 31 countries around the world, yet they manage to close their books in one day. They double-check the numbers, put together a balance sheet, and release them four to five days after the end of the quarter, depending on holidays.
Making this happen requires dedication from Alcoa's finance department. "The people in our finance organization understand they essentially kiss their July 4th holiday good-bye. Most are working throughout the year-end holidays as well," said Lowery.
This process can be a difficult task, but it has helped create a different attitude at Alcoa, one that is unusual for a company of its size. "We are a more nimble company," said Lowery. "Many people when they hear, they don't believe we can do it that fast--and that accurate. Even new hires, and then they see with their own eyes. It's a great example of what is possible when you set your mind to it. And it frees up most of the company to look forward instead of back."