Expatriate Management Committee

September 20-22, 2004

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The EMC met in Boston on September 20-22, 2004. Participants included representatives from: 3M Delphi Kodak American Express Dupont Lockheed Martin Bank of America Eli Lilly Lucent Bechtel Exxon Mobil McKinsey Boeing Fluor Motorola Bristol-Myers Squibb Ford Motor Company NFTC Cargill Freescale Semiconductor Nortel Networks Caterpillar General Electric PepsiCo Cemex Central General Motors Procter & Gamble Cisco Gillette Raytheon Citigroup GlaxoSmithKline Schlumberger Coca-Cola IBM Shell International Colgate Palmolive Johnson & Johnson Siemens Corning Kellogg Wal-Mart Thank you Liz Sabel Murchie and Jeanine Davis of Gillette for your help on meeting logistics. Technology for Managing a Global Workplace The representatives from American Express, Cemex, Cisco, Corning, and Delphi described a template for a survey of global mobility technology tools. Underground/Accidental Expatriates The representative from Nortel Networks led a discussion on “underground” or “stealth” expatriates. There are concerns that “unauthorized” cross-border assignments can cause immigration, security, tax, or employment law problems. Additionally, there are potentially lost cost savings opportunities.

Expatriate Management Committee

September 20-22, 2004

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Vendor Metrics Representatives from Ford Motor Company, Lucent, and Siemens discussed their respective approaches to vendor metrics. Standards were described and discussed as well as how they were used (process improvement, cycle time reduction, cost management, service standards) including supporting documents for choosing or retaining a provider. The types of metrics included time lines, quality, accuracy, and customer satisfaction. In some instances the employer collaborates with their external provider(s) in doing customer satisfaction surveys. Welcome New Members Bank of America, Cisco, Fluor, GlaxoSmithKline, and McKinsey are welcomed to membership in the EMC. Farewell The EMC bids farewell to Loretta Allard of General Electric, Sue Backholer of Unilever, Brenda Koller of American Express, and John Murphy of Motorola. Their participation and support over the years is greatly appreciated. Regional Policies Representatives from General Electric and GlaxoSmithKline described their respective organization’s programs. A general question raised was if packages should be really based on assignment type (developmental, project, full term, etc.) rather than being “regional.” Unaccompanied Assignments Representatives from General Motors, Gillette, and Wal-Mart discussed commuting unaccompanied assignments and non-commuting unaccompanied assignments. They then discussed policy issues (provision of COLA, housing, home leave, relocation allowance, etc.).

Expatriate Management Committee

September 20-22, 2004

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Living Abroad Ed Barnhart and Michael Cadden described the scope of Living Abroad’s services. Their clients include global mobility managers, expatriates, and business travelers. A new service is an online assessment tool called the International Assignment Assessment Tool (IAAT) which is licensed from Selection Research International. Their location data covers 100 countries, 34 U.S. cities, and 69 international business destinations. There are numerous links to relevant data sources supported by an online help desk. They recently added an e-learning facility on global diversity. Cisco: Company Profile The Cisco representative provided an overview of the company, which has grown from two employees in 1984 to 34,000 in 2004. Cisco has a presence in 70 countries. Cisco is the “post office” of the internet via routers and switches. Currently they have 80% of market share with revenues of about $20 billion. Their focus today is on developing advanced technologies. Year-End Data Collection Representatives from Citigroup and PepsiCo led a discussion on approaches to year-end data collection. Foreign compensation data should be collected on a monthly basis from each assignment location. It is important to work closely with tax compliance providers. Audit controls can then be applied to ensure that the relevant data is being gathered. Managing Exceptions Representatives from Fluor, Lockheed Martin, and McKinsey described how exceptions to policy are tracked to see if there is a justifiable reason to change policy. The best practice is to document exception approval. Policy consistency is important for equity across projects and business units. Mobility policy should articulate what elements are not eligible for discussion.