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John F. Daly
President
CIT Commercial Services
Asset Based Financing Journal - April 2003 |
If you ask John Daly about factoring, he will tell you, “Factoring is a great service for any company; it just doesn’t get the recognition it deserves.” And as president of CIT Commercial Services, one of the nation’s leading providers of factoring, accounts receivable management, and lending services, Daly is doing his best to spread the good word.
If anyone knows factoring, it’s John Daly, one of the true veterans of the industry.
Just as factoring traces its roots to the textile and apparel industries, so does Daly. He began his career in the New York credit department of Milliken & Company, a large textile company. In 1973, he left the textile business but stayed in credit, accepting a position in the credit department of Manufacturers Hanover Commercial Corporation and beginning his career in factoring.
Daly has stayed with the same company ever since…ensuring credit quality, delivering growth, and driving revenues for three decades.
Prior to being named president in December 1999, Daly was executive vice president and senior credit officer of CIT Commercial Services. In that position, he was responsible for risk management and asset quality as well as the employee-oriented corporate priorities of development and training.
Straight-forward Solutions
Joe Richardson, Senior Vice President, Systems and Administration comments, “John always has the best interests of clients, shareholders and employees at heart. He seeks simple, straight-forward solutions. In this age of hype and image building, John stands out as a straight shooter who keeps it simple and low key.”
Speaking of simple and low key…Daly’s wife, Regina, has suggested he buy a new car. Rather than “simple and low key,” she suggested something fun and exciting. She told him to look at a flashy sports car. Daly went to the car dealer for a test drive. When he returned the car, the salesman asked if Daly enjoyed the ride. “Yes, of course.” When the salesman asked if Daly wanted to buy the car, Daly replied “No thank you. I had my ride.”
Daly calls flashy sports cars “look-at-me cars.” Daly is not a “look-at-me” person, his colleagues explain.
Seamless Transitions
“John was our transition officer in 1995 when CIT bought Barclays Commercial Corporation, the factoring division of Barclays Bank,” explains Larry Marsiello, Group CEO of CIT Commercial Finance. “That was the largest factoring acquisition of its time and John spearheaded the valuation, due-diligence and closing of that very significant transaction. He worked closely with the new team from Barclays and made the employees feel welcome.”
Daly spent over a year integrating the two large factoring organizations. “Acquisitions have the greatest synergies when they bring together complimentary, not identical, businesses,” explains Daly. CIT was largely a New York and Los Angles-based company with strong ties to the apparel and textile industries. Barclays Commercial Corporation was headquartered in Charlotte and had heavy penetration into the furniture industry. “The differences of the two organizations provided a strong platform on which to build our new, combined factoring organization,” explains Daly.
“My goal was to bring together the North and the South, so to speak, and develop a blueprint for a factoring organization that was diversified geographically and had a diversified client base,” comments Daly. “The Barclays acquisition forced us to re-think the way we do business. We knew that in order to survive, CIT needed to be efficient and have economies of scale, but remain focused on client retention, asset growth and credit quality.”
Daly led the team that scrutinized and evaluated every work process and operating system. Teams were organized by function (new business, account executive, customer credit, etc.) to decide which processes would stay and which would go. “In building the platform for our new factoring organization, we chose the best practices from both companies,” recalls Daly.
“John once again used these skills when CIT acquired the Congress Talcott factoring portfolio in April 1999 and Heller’s factoring portfolio in December 1999,” comments Marsiello. “By then, John was an ‘old pro’ at integrating companies and he integrated those two acquisitions quickly and seamlessly.”
Striving for Growth
Motivated by the drive for growth, Daly chaired the factoring company’s Innovations and Adaptability Committee for many years. He built a task force comprised of individuals from a variety of functions and regions to research, develop and implement new services and identify new target markets.
Mitch Cohen, Senior Vice President and Western Regional Manager of CIT Commercial Services, credit’s Daly’s vision for the opening of CIT’s new Shanghai office in March, 2003. “John had the vision to look globally for growth and he saw the strategic importance of the West Coast in CIT’s Pan Asian business development efforts,” explains Cohen. “Under John, we relocated our Asian marketing efforts from New York to Los Angles to be closer geographically to our clients and prospects.” The new Shanghai office builds upon the momentum of CIT’s Hong Kong office which was opened almost a decade ago.
“I have worked with John for twenty one years,” comments David Bram, Executive Vice President and Customer Credit Manager. “He gives people the autonomy to do their jobs and then judges their results. John seeks out and listens to the opinions of others, even if they are different from his own. He recognizes that everyone has their area of specialization and he makes it a point to ask people with specific knowledge for their input. He fosters a positive work environment, genuinely cares about the employees, and wants to ensure that CIT delivers on its promises to clients.”
Bram explains that CIT conducts annual surveys to measure client satisfaction levels and solicit feedback. CIT uses the survey results to modify business processes in response to client feedback. The surveys revealed that credit and collections are two of the driving forces behind a client’s decision to use factoring. As a result, the company has focused its efforts on process improvements and service quality in these areas, among others. The surveys provide a measuring tool by which Daly gauges the company’s effectiveness in the eyes of its clients.
Born in Brooklyn
The son of a police captain, Daly was the third of five children. He grew up in Brooklyn, New York and went to college at St. John’s University where he met his wife Regina. He also attended a graduate program in finance at Baruch College and the Wharton Advanced Management Program.
Daly’s father was commander of the New York City Youth Commission. Eager to teach his children a lesson, he once took Daly to the police station and locked him in a jail cell for half an hour. When he returned he asked if his son had enjoyed the experience. “No,” said Daly. “Good,” said his father. “Remember that.”
Regina has been his wife, team mate and soul mate for 31 years. They live in Morganville, New Jersey in the same house their children grew up in. Their two children, Matthew, 27, and Alison, 25, continue to be an important part of John and Regina’s lives, even as they lead their own busy lives in Wall Street research and advertising, respectively.
“When the children were in high school,” Regina Daly explains, “we decided we wanted to see the world and we wanted our children to see it too. So every year we have made it a point to take a vacation – together.” China, Turkey, Israel, Austria, Italy, France, England, Morocco, Portugal and Scotland were all among their family destinations. Regina hints that Bolivia may be next on the list.
A Love of Golf
People who know Daly know he loves golf. George Wendler, Executive Vice President of HSBC is a former colleague and long-time friend. “John and I have been playing golf together for almost 25 years,” says Wendler. “We have probably played close to 1,000 rounds together. As many people know, John does not see distance well. I can vividly recall the first time he hit a golf ball and asked the question he has now asked many, many thousands of times--"did anybody see it?” So, for some 1000 golf rounds I have usually been the "anybody" spotting John's ball for him but it has been worth it. We always have a lot of laughs together, in spite of his eyesight.”
As his golf partners can attest, Daly is an accomplished golfer. Several years ago, CIT hosted a golf outing at Pinehurst Resort. On the second hole of Pinehurst Course No. 4, Daly shot a hole in one (140 yards, par 3 hole). Everyone was so excited! It was the talk of the day and the big subject at dinner that night. Unfortunately, since Daly was one of the hosts, he was not eligible for the prize – four days and three nights at a luxury golf resort. Everyone’s heart sank at the news but Daly remained delighted at his personal accomplishment.
The best deal in town
“Our research has shown that companies that use factoring think it is of tremendous value,” explains Daly. “What other service delivers comprehensive credit checking, bookkeeping and collection services – and, by the way, 100% protection against bad debt losses? It’s the best deal in town.”
