• Search
Ex.: Facebook, Apple

The Executive Newsletter of TheOfficialBoard

Mass or Mess Age?

By Guy Hervier

In the evolution towards the Global Village, Social Networks are accelerating the process. Tools like Facebook are shrinking the world. I can be friends with my neighbor and a Hmong peasant from the Guizhou region, in southern China.

30-aout-guyhervier1Is this sustainable in the long run? It is hard to tell because these tools stretch much farther than our ability to handle them directly. Anthropologists explain that it is impossible to maintain stable social relationships with more than 150 people. Can Barack Obama keep a personal contact with his 6,000,000+ Facebook supporters or 2,000,000+ Twitter followers?

In a few years, how will we use Social Networks in our professional and personal lives? The Web is only 15 years old, Facebook 5 and Twitter 3. The quick evolution of these technologies makes things a lot more challenging. The GenY generation, who grew up with cell phones and the Internet has difficulties imagining – even understanding – that there was a life before all that.

We are still at the experimenting and tinkering stage:

1. For starters, these tools are spreading across all age groups; not long ago the only ones using them were 18-24 years old.

2. On the issue of privacy, the Canadian magazine Cyberpsychology & Behavior recently published the results of a study on the implications of the use of Facebook. The study shows that users who tracked the activities of their partner on the social network became more jealous and suspicious. There was a correlation between the amount of time spent and the level of distrust.

3. Political movements are using these tools a great deal. As everyone knows, social networks were a main part of Barack Obama’s Internet strategy in the presidential election. Today, the White House is increasing the use of such technologies.

4. In the business world, the employees who used these tools for their personal needs are beginning to use them for their professional life. And the difficulty of separating the professional from the personal is causing some problems. An article recently published by the Wall Street Journal showed that the IRS (Internal Revenue Service) and other tax departments in the US are gathering some information from Social Networks to detect possible fiscal fraud.

5. Enterprise Software vendors - SAP, Oracle, Microsoft, Open Text or Telligent to name a few - are integrating some social network functionality into their enterprise applications.

Guy Hervier, is Editor in Chief, ITRmanager, a leading publication for IT managers.

Think and Act as an Owner

By Michael Creamer, Vice President Human Resources, Cott

29-aout-michael

Is it a new concept? Not really. Over the years many companies have wanted their employees to think and act as owners. Some are much more successful than others.

What strategies have been tried? Granting options, Restricted Stocks and Long Term Incentives. In many cases, these strategies seemed to work. But was it because of the ownership feeling or was it due to the general economy and growth of the stock market?

There’s a difference between an owner and an investor. Investors generally have a short- or medium-term time horizon, and they’re thinking strictly in dollar terms. By contrast, owners are in for the long haul, and they have an emotional attachment to the company that goes beyond dollars. Equity type incentive plans can be a good idea, but the only way to get people to think like owners is to elicit real ownership behaviors.

At Cott we started focusing on this by setting objectives for employees that directly related back to business objectives. At the time we did this, it seemed like the right thing to do.

As we implemented and developed scorecards to measure the objectives, we realized we had created a monster. We assumed that everyone could attach a dollar amount that could be measured as their contribution.

We decided that simple is better and began to focus on 4 things all employees can wrap their hands around as owners. The vision we set out was “The 4c’s” : Cash, Capex, Customers, Cost

By focusing on these, it is easier to emphasize thinking and acting like owners. It is easier to talk about all 4 C’s when your anchor is Cash. If you have a lot of cash your focus is investing it wisely. If you don’t have a lot of cash you’ll need to watch what you spend, affecting costs. Having cash allows you to invest in Capex while having low levels of cash makes you think very hard about Capex and how quickly will you get your money back.

How do our people do this in their daily tasks?

  • For our line operators and mechanics, line efficiency is key. The more production without waste means higher levels of efficiency and the very clear goal of being nominated as the plant of the year.
  • Our accountants now provide concrete suggestions on how to better focus expenses without affecting worker productivity.
  • Salespeople now focus on long term solutions, partnering with our retailers to bring quality products and efficiencies for Cott.
  • The procurement team’s everyday focus is looking at ways to efficiently partner with suppliers to creatively reduce costs.

We have had good success with our 4c’s. People talk about them and embrace them. Of course not everyone agrees all the time, but people have a theme to latch onto as they begin to think like owners. It is like the owner of a new car; you wash it, wax it and look for scratches.

Michael Creamer is Head of Human Resources at Cott. Cott is one of the world’s larger beverage companies supplying over 200 retailers in the United States, Canada, the United Kingdom and Mexico through 20 manufacturing facilities.

International Mobility Contracts

By Philippe Thomas, Lovells

30-aout-pthomas2More than 90% of new graduates believe that they will be exposed to more geographic mobility than their parents. In a global world, international mobility and employment across borders will continue to increase, and in many cases the applicable legal terms are still evolving.

A successful international assignment should be in line with good business strategy. Drafting the appropriate legal documentation will fix the terms and help anticipate some unexpected issues.

The first question is which legal entity employs the individual for his new, peculiar, career step. For several years, the trend has been to have local contracts with the local entity subject to local law. However this is not always the best solution. For both parties, it may raise uncertainty about the real identity of the employer when instructions come from the head office. Maintaining the original employment contract may be easier and more flexible.

Is the immigration documentation ready upon the day of arrival ? Who is taking care of the immigration issues for the employee’s family and will the spouse benefit from a work permit?

Which legal rules will govern the employment relationship? In case of a mix between the law of the country of origin and local law, which rules will apply to issues of work time and safety and can the parties agree about which court will have jurisdiction in the case of a dispute?

Pensions and Coverage: Will it be possible to continue contributions to the social security regime of the country of origin and who will bear the cost? If there is no longer a contribution to the pension scheme of the country of origin, but an affiliation to the local pension scheme, will it be taken into account by application of an international treaty?

Which tax regime will apply and will there be assistance to ensure that the employee will be tax compliant in the jurisdiction he will be working in as well as in his home jurisdiction?

Is the compensation structure cost effective (special attention to specific benefits such as housing allowance, hardship allowance…)?

Is there an international assignment policy?

Is there a minimum and a maximum duration for the assignment? What are the conditions for early termination of the assignment and repatriation? Will there be any follow-up after repatriation?

Philippe Thomas is Partner at Lovells, in Employment, Pensions, Employee Share Incentives Practice. He is also the Managing Director of the Paris Office. Lovells is one of the largest international legal practices with offices in Europe, Asia and the United States.

Powered by WordPress