Buying equipment is operationally a much easier proposition than leasing. After you buy it, you can forget about it until it breaks — and many companies do. Leasing is much more complicated and requires sustained attention to the details given that the assets are tied together in a financing contract. For executive sponsors, successful leasing requires clarity of purpose, the determination to do it well, the ability to sell and resell the value of leasing to key internal stakeholders in their language, and a willingness to listen and adapt the lease structure to match the culture.
Last month I sat down to talk to Ingemar Lanevi, Treasurer of NetApp, Inc., to understand Ingemar’s recipe for success. NetApp leases equipment for one over-arching reason: cashflow (specifically free cashflow/share). However, the operations managers only really care about their budget and don’t want to be distracted by end-of-term deadlines. See the 10 interview video clips below to find out why NetApp leases and how Ingemar and his team overcame several significant challenges to create a low-friction, high-value leasing operation.
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