Global Pay for Performance Success - P4P


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Businesses that have moved into the global marketplace o>en spend considerable time and capital setting up regional operations. Finding the right talent to run these businesses is cri0cal, and we often find that companies are willing to pay aggressively for the right fit. As a regional business starts to take root, it is important to bring its pay prac0ces into alignment with the rest of the organization’s pay-for-performance program. Doing this effectively and knowing the major areas of concern are critical when implementing a global pay-for-performance strategy. In this white paper we will discuss why global pay for performance is important, define the cri0cal role employees play in global companies, and detail the steps necessary to enable an effective program.

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Global Pay for Performance Success - P4P

  1. 1.   ©2013  Performensa0onGlobal  Pay  for  Performance  Success  in  Expanding  CompaniesBusinesses  that  have  moved  into  the  global  marketplace  o>en  spend  considerable  0me  and  capital  se?ng   up  regional  opera0ons.  Finding  the  right  talent  to  run  these  businesses  is  cri0cal,  and  we  o>en  find  that  companies  are  willing  to  pay  aggressively  for  the  right  fit.  As  a  regional  business  starts  to  take  root,  it  is  important  to  bring  its  pay   prac0ces   into   alignment   with   the   rest   of   the   organiza0on’s   pay-­‐for-­‐performance   program.   Doing   this  effec0vely  and  knowing  the  major  areas  of  concern  are  cri0cal  when  implemen0ng  a  global  pay-­‐for-­‐performance  strategy.  In  this  white  paper  we  will  discuss  why  global  pay  for  performance  is  important,  define  the  cri0cal  role  employees  play  in  global  companies,  and  detail  the  steps  necessary  to  enable  an  effec0ve  program.Companies  with  only  local  or  na0onal  staff  are  o>en  so  entrenched  in  their  own  cultures  and  understanding  of  local   employees’   needs   that   they   forget   the   work   culture   in   other   countries   can   be   significantly   different.  Employees   who   work   in   new   office   loca0ons   outside   the   company’s  home   country   tend   not   to   voice   their  concerns  about  this  cultural  misalignment.  In  addi0on,  employees  in  these  loca0ons  may  have  mul0ple  roles  and  responsibili0es  when  compared  to  those  who  work  in  other  areas  in  the  organiza0on,  and  their  offices  may  not  benefit  from  the  resources  that  the  corporate  headquarters  o>en  take  for  granted.  Regional  employees  may  feel  le>  out  of  the  loop  and  disconnected  and  thus  become  demo0vated.  Global  pay  for  performance  is  important  because,  if  done  correctly,  it  can  op0mize  the  performance  of  each  region  and  create  a  sense  of  fairness  among  employees  that  can  lead  to  heightened  engagement  and  mo0va0on.Understand   that   employees   are   the   key   to  crea=ng  value  in  global  firms  As   today’s   organiza0ons   expand   beyond   their  borders,   they   are   introduced   to   increasingly  complex   and   compe00ve   environments.   The  main  challenge  is  to  s0mulate  performance  and  to  do  more  with  less.  All  company  resources  and  stakeholders   play   a   role   in   the   company’s  success  or  failure,  but  the  most  cri0cal  factor  in  this  situa0on  is  the  employees  themselves.  They  are  the  most  valuable  asset  of  any  organiza0on  and   this   is  especially   true   when   a  company   is  growing.   Today,   more   than   ever,   when  managers  operate  in  a  global  environment,  they  need   to   place  employees  in   the   center   of   the  service-­‐profit  chain.1The   service-­‐profit   chain   (see   Exhibit   1)   links  rela0onships   between   profitability,   customer  loyalty,   and   employee   sa0sfac0on,   ul0mately  leading   to   overall   produc0vity.   Profit   and  growth   are   s0mulated   primarily   by   customer  loyalty.   Loyalty   is   a   direct   result   of   customer  Compensation Thought Leadership2013Q2 - Global Compensation1  J.L.  Heske[  et  al.  “Pu?ng  the  Service-­‐Profit  Chain  to  Work,”  Harvard  Business  Review  (March-­‐April  1994):  164-­‐174.
  2. 2. 2sa0sfac0on,   which   is   largely   influenced   by   the   value   of   products   and   services  provided   to   customers.   Value   is   created   by   sa0sfied,   loyal,   and   produc0ve  employees.   Employee   sa0sfac0on   results   from   high-­‐quality   support   services   and  policies   that   enable   employees   to   deliver   results   to   customers.   A   global   pay-­‐for-­‐performance  program  delivers  valuable  feedback  and  rewards  to  employees  when  the  service-­‐profit  chain  is  opera0ng  effec0vely.Once  the  service-­‐profit  chain  has  expanded  to  the  global  arena,  effec0ve  leadership  focuses   on   factors   that   enhance   and   sustain   regional   employee   happiness,  sa0sfac0on,  and   engagement  at  work,   which   all  lead   to   the  organiza0on’s  overall  performance.  The  elements  of  employee  mo0va0on  evolve  in  each  region  over  0me.  Every  organiza0on  has  its  own  unique  employee  needs  based  on  the  culture,  values,  and  regulatory  environment.  Nevertheless,  their  similari0es  can  be  gathered  into  a  ‘Mo0va0on  Spectrum’  (see  Exhibit  2).  This  model  illustrates  the  links  between  the  various  mo0va0onal  drivers  and  their  influence  towards  organiza0onal  performance.The  mo0va0on  spectrum  gathers  three  key  drivers  of  sustainable  mo0va0on:  (1)   live,  (2)   grow,  and  (3)   connect;  each  driver  gathers  a  set  of  ini0a0ves.2‘Live’  supports  the  idea  that  work  is  first  and  foremost  a  means  to  allow  people  to  sa0sfy,  directly  or  indirectly,  their  fundamental  physiological  and  psychological  needs  and,  beyond  that,   to  strive  for  greater   sa0sfac0on  and   well-­‐being.  It  is  the  opportunity  for  people  to  live,  to  be  able  to  enjoy  the  quality  of  life.‘Grow’  recognizes  the  human  need  for  competence,  progress,  and  achievement,  which   help   employees  to  take  interest   in   and   find   meaning   in   their   work.   It   goes   through   opportuni0es   for   progression   and   challenge,  responsibility,  empowerment,  and  growth.  It  is  a  way  for  people  to  be  able  to  fulfill  their  ambi0ons  and  grow.‘Connect’   relates   to   the   fact   that   most  people  seek   connec0ons  in   work,  whether  it  is  for  their  colleagues,  their  leaders,  their  clients   or   the   organiza0on   itself.   It   goes  through   a   cohesive,   collabora0ve  environment  where  people  share  common  values   and   inspire   each   other.   It   gives  employees   a  sense  of   iden0ty   and   allows  them  to  connect  in  a  place  where  they  feel  they  belong.In   order   for   employee   mo0va0on   to   be  sustainable   over   the   long   term,   the  management   and   employees   need   to  maintain   two   precondi0ons:   (1)   trust   and  (2)  the  ability  to  adapt.  ‘Trust’  is  when  the  managers   create   a   reciprocal   rela0onship  based  on  transparency,  accountability,  and  fairness.   ‘Adapta0on’   is   when   managers  take   into   account   the   differences   among  employees   and/or   employee   groups   and  customize  their  approach  as  necessary.Thus   it   is   impera0ve   for   managers   and  senior   leaders   to   consider   the   regional  environments   of   their   employees   and  maintain  support  services  and  policies  that  are   flexible   enough   to   accommodate   the  In  order  for  employee  mo=va=on  to  be  sustainable  over  the  long  term,  the  management  and  employees  need  to  maintain  two  precondi=ons:  (1)  trust  and  (2)  the  ability  to  adapt.     ©2013  Performensa0on2  Xavier  Pavie,  Valuing  People  to  Create  Value  (co-­‐author  with  Hervé  Mathe  and  Marwyn  O’Keeffe,  Singapore:  World  Scien0fic,  2012),  85,  175.
  3. 3. 3unique  needs  of  employee  groups.  If  a  business  located  in  America  is  expanding  into  foreign   countries,   it   is   important   for   them   to   understand   what   mo0vates   and  engages  the  local  workforce.    As  an  example,  employees  based  in  Mexico  may  desire  more  work-­‐life  flexibility  instead  of  higher  pay.    So  in  theory,  allowing  employees  to  have   greater   flexibility   at   work   may   be   more   effec0ve   in   boos0ng   company  performance  than  just  throwing  more  money  at  them.  Most  importantly,  consider  if  the  staff  in  the  various  regions  are  ready  to  be  a  part  of  a  global  firm.   The  core  concern   is  to  maximize  shareholder  value.  Avoid   forcing   a  global  pay-­‐for-­‐performance  model  at  the  sacrifice  of  shareholder  value.    It  may  take  years  for  certain  regions  to  be  ready  and  effec0vely  merge  into  a  global  firm.    If  the  0ming   is  not  right,  iden0fy  the  factors  that  need  to  change  and  consider  a  phased  approach.    Monitor  metrics  that  support  shareholder  value  and  transi0on  to  a  global  pay-­‐for-­‐performance  program  with  confidence.Understanding  how  employees  are  the  key  to  crea0ng  organiza0onal  value  and  how  they  drive  performance  sets  the  founda0on  when  implemen0ng  any  global  program.  Employees  create  and  deliver  product  and  service  value  to  customers  in  an  increasingly  complex  global  landscape.  Senior  leadership  and  managers  need  to  be  familiar  with  the  unique  factors  that  drive  employee  mo0va0on  and  engagement  in   each  region  before  the  organiza0on  can  effec0vely  operate  a  global  pay-­‐for-­‐performance  program.Choose  the  project  teamWhen  implemen0ng  a  global  pay-­‐for-­‐performance  program  it  is  important  to  involve  the  right  individuals  in  your  project  team  as  well  as  to  iden0fy  key  stakeholders.  As  we  have  men0oned  previously,  different  regions  across  the  globe   are   faced   with   various   market   condi0ons,   regulatory   environments,   and   cultural   idiosyncrasies.  Understanding  the  implica0ons  of  local  issues  requires  knowledge  of  the  legal  environment  as  well  as  market/social  prac0ce   and   culture.3   Involving   the   correct   individuals   is   essen0al   to   understanding   the   issues   and  interdependencies  that  are  necessary   for  the  program’s  success.   Know  the  key   leaders  and  influencers  in  each  region  and  ask  for  their  support  for  the  ini0a0ve.  It  is  o>en  beneficial  to  involve  the  regional  leader  in  determining  the  best  local  expert   to  include  on  the  project  team.  This  simple  step  creates  a  sense  of   local  sponsorship   and  accountability.    The  local  expert  can  be  tasked  with  communica0ng  relevant  details  back  to  the  regional  leader.  You  should  also  involve  legal,  finance,  and  human  resources  staff,  as  appropriate.Know  the  key  leaders  and  influencers  in  each  region  and  ask  for  their  support  for  the  ini=a=ve.  It  is  oOen  beneficial  to  involve  the  regional  leader  in  determining  the  best  local  expert  to  include  on  the  project  team.   ©2013  Performensa0onMissing local HR support- Can cause confusion during the roll out of any program- May not understand local regulations or cultureLack of Recruiting support- Employees offered benefits that are not visible toheadquarters- Poor management of Employment ContractsCompany communications- Is translation to local language needed?- The communication channel ineffectiveIncompatible or missing Systems- System exists but is not used or understood- Poor system performance in remote areas- Lack of technical supportCommon Pitfalls3  Len  Gray.  "Going  Global,  Being  Global:  Degrees  of  Difficulty  in  Cross-­‐Border  M&A  Deals,"WorldatWork  Journal  (Second  Quarter  2012):  38-­‐44.
  4. 4. 4Take  inventory  of  the  human  resources  infrastructure  Before   aligning   all   the   global   regions   of   a   business   onto   a   common   pay-­‐for-­‐performance  plaworm,  evaluate  the  current  human  resources  infrastructure.  Look  at  each  region  where  the  company  has  a  presence.  Is  each  loca0on  supported  by  an  HR  specialist   or   team?   How   are   employees  recruited   into   the   organiza0on?   Is  there  career  and  succession  planning?  An  honest  assessment  of  the  strengths,  weaknesses,  and  missing  components  is  necessary  to  avoid  piwalls  that  may  magnify  shortcomings  during  the  program  rollout.Global   technical   tools   such   as   a   human   resource   management   system   (HRMS),  compensa0on  so>ware,  performance  management  so>ware,  organiza0onal  char0ng  tools,   file   sharing,   etc.,   not   only   improve  overall   firm-­‐wide   performance  but  also  establish   a   level   playing   field   for   workers   in   all   loca0ons.   One   of   the   common  complaints  heard  in  organiza0ons  is  that  it  is  more  difficult  to  accomplish  tasks  and  communicate  if  you  are  located  outside  the  corporate  headquarters.  Highly  desired  so>ware  plaworms  that  are  available  only  at  large  loca0ons  but  are  missing  in  the  regions  can  cause  considerable  problems  with  performance  and  communica0on.  Having  shared  so>ware  and  other  business  resources  will  give  every  global  employee  a  fair  chance  to  be  a  high-­‐performing  contributor  to  the  firm’s  success.The  business  must  have  a  founda0on  of  suppor0ng  systems,  staff,  and  processes  in  order  to  run  an  effec0ve  global  program.  Evaluate  the  HR  infrastructure  carefully  and  set  realis0c  expecta0ons  about  effec0vely  administering  a  global  program.  Bringing  all  regions  into  harmony  could  take  months  or  years  depending  on  the  current  state  of  the  human  resources  infrastructure.Share  pay-­‐for-­‐performance  guiding  principles  across  all  global  regions  Successful  pay-­‐for-­‐performance  programs  operate  from  a  set  of  guiding  principles  that  help  companies  obtain  the  results  they  desire  and  ensure  their  strategies  stay  on  track.  Pay-­‐for-­‐performance  guiding  principles  are  standards  that  direct  the  organiza0on  and  its  managers  to  use  the  same  approach  when  alloca0ng  rewards  to  employees  in  exchange  for   their  performance.  These  principles  should  be  the  same  in  all  global  loca0ons,  with  small  regional  variances  where  necessary  due  to  local  culture,  prac0ce,  and  regula0on.  Guiding   principles   need   to   be   more   specific   than   just   a[rac0ng,   rewarding,   and  retaining  talent.  They  should  seek   to  align   performance  fairly,  compare  leadership  roles  of  different  scope  and  depth,  and  avoid  measurement  bias,  among  other  things.  The   guiding   principles  for   any   pay-­‐for-­‐performance   program   must   also   be   0ghtly  aligned   with   corporate   strategy   as   they   are   o>en   the   most   visible   form   of  communica0on  of  the  strategy.  It  is  important  for  the  firm  to  revisit  these  principles  a>er   each   year   or   each   performance   cycle   and   ask   ques0ons  such   as:   “Did   our  compensa>on   strategy   meet   our   expecta>ons   during   the   last   cycle?”   and   “Is   the  return   on   investment   of   compensa>on  programs   in   alignment   with  the   return   on  investment  that  shareholders   expect  for  the  business?”  If  not,  make  adjustments  to  the   guiding   principles   to   ensure   that   these   guidelines   change   with   the   market  environment  and  meet  the  firm’s  needs.  Communicate  these  principles  throughout  the   human   resources   group   and   management   team   to   ensure   that   the   pay-­‐for-­‐performance  strategy  is  understood  and  successful.  Have  a  global  job  structure  Having  an  effec0ve  pay-­‐for-­‐performance  program  requires  the  evalua0on  of  similar  jobs  on  a  regional  and  global  basis.   It   is  difficult  for   a  manager   to   compare   the  performance   of   a  financial  analyst   with   that   of   a  corporate  a[orney,  but  if  the  jobs  are  grouped  so  that  one  financial  analyst  is  compared  with  others  in  the  same  job,  a  more  fair  assessment  can  be  made.  In  order  to  group  and  compare  similar  roles,  a  company  needs  to  have  a  common  job  structure  that  is  flexible  enough  to  allow  minor  regional  differences  in  culture  and  scope.  Although  people  doing  An  honest  assessment  of  the  strengths,  weaknesses,  and  missing  components  of  Human  Resources  infrastructure  is  necessary  to  avoid  piUalls  that  may  magnify  shortcomings  during  the  program  rollout.The  guiding  principles  for  any  pay-­‐for-­‐performance  program  must  also  be  =ghtly  aligned  with  corporate  strategy  as  they  are  oOen  the  most  visible  form  of  communica=on  of  the  strategy.     ©2013  Performensa0on
  5. 5. 5similar  jobs  in  different  loca0ons  can  have  different  market  pay  levels,  an  organiza0on  can  s0ll  ensure  that  rela0ve  pay  increases  are  based  on  the  same  rela0ve  performance.  A  shared  job  structure  will  help  facilitate  this.  Also  consider  regional  leadership  posi0ons  that  exist  in  the  organiza0on.  Each  region  may  have  country  managers  who  oversee  opera0ons  of  various  scope  and  strategic  complexity.  For  example,  say  the  country  manager  in  the  United  Kingdom  runs  a  large  and  complex  business  opera0on,  while  the  country  manager  in  Belgium  runs  a  small  office.  Their  roles  may  be  very  similar  in  content,  but  the  difference  in  job  scope  and  complexity  must  also  be  taken  into  account  when  comparing  performance  levels.Have  a  global  performance  programIt  is  clear  that  a  developing  global  business  must  revisit  its  business  strategy  to  fit  its  evolving  environment.  There  are  new  customers  and  distribu0on  channels,  and  each  country  has  its  own  opportuni0es  and  challenges.  As  the  business  strategy  becomes  more   complex   and   mul0faceted,   it  is  important   to  understand  the  new   factors  in  performance  and   align   these  elements   to   create   shareholder   value.   An   effec0ve  global  performance  program  will  support  new  strategic  goals  that  will  make  global  pay  for  performance  possible.Employees  in  mul0ple  loca0ons  should  reference  the  global  performance  program  on   a   regular   basis.   They   need   to   understand   what   their   objec0ves   are,   how   to  accomplish   them,   and   how   they   will   be   rewarded   for   their   performance.   The  program  should  help  them  understand  how  their  goals  and  the  goals  of  the  regional  business  help  accomplish   the   company’s   objec0ves.   Employees  who  know  how   their  efforts   contribute  to  the  regional  business  and  overall  firm  results  are  o>en  more  engaged  and  perform  be[er.  These  employees  use  their  knowledge  of  the  organiza0on’s  business  strategy  to  frame  their  daily  work  and  can  be[er  use  their  knowledge  to  make  important  trade-­‐offs  when  confronted  with  difficult  choices.Global   companies  benefit   greatly   when   they   establish   a  regionally   consistent  system  of   evalua0on  to  promote  performance.  The  same  performance  strategy  and  metrics  should  be  used  firm  wide.  Exhibit  3  shows  an  example  of  a  standard  five-­‐point  scale  that  is  common  among  many  firms.  Performance  levels  need  to  have  well-­‐defined  descrip0ons  to  be  easily  understood.  Each  region  should  ensure  its  managers  clearly  understand  how  to  classify  employees  by  performance  level  to  ensure  fairness.  Also,  and  perhaps  most  importantly,  at  the  corporate  level,  the  company  should  consider  how  the  performance  measures  relate  to  compensa0on   decisions  by   each   region.   This  can   be   easily   done   by   reviewing   each   region’s  relevant   sta0s0cs  performance  ra0ng  by  performance  ra0ng.  Establish  ranges  of  what  is  acceptable  and  research  outliers.  The  review  of   individual  performance   and   related   compensa0on   decisions   is  essen0al   to   an  effec0ve   pay-­‐for-­‐performance  program.Market  pay  will  vary  by  region  due  to  local  compe00ve  wage  fluctua0ons,  but  rela0ve  merit  pay  levels  should  be  similar   by   performance   firm-­‐wide.   Many   companies   give   managers   discre0onary   guidelines   for   incen0ve   pay  awards  by  level  of  performance;  other  firms  are  more   precise   and   provide   a   tradi0onal  compensa0on   matrix   that   determines   the  incen0ve   pay   award   by   the   level   of  performance  and  posi0on   in   the  pay   range.  The   method   chosen   by   any   individual  company  should  be  based  on  the  company’s  culture   and   pay-­‐for-­‐performance   guiding  principles.Have  global  compensa=on  plansFairness  of   compensa0on  and  other  rewards  across   regions   may   improve   employees’  morale   and   therefore   lead   to   enhanced  performance.  When  employees  perceive  they  Employees  who  know  how  their  efforts  contribute  to  the  regional  business  and  overall  firm  results  are  oOen  more  engaged  and  perform  beWer.     ©2013  Performensa0onExhibit  3  -­‐  Performance  Distribu=on
  6. 6. 6are   being   treated   fairly,   it   creates   a   sense   of   dignity   and   self-­‐worth.   Fairness  encourages   a   sense   of   community   or   membership   within   the   business   where  individuals  and  teams  are  recognized  for  their  contribu0ons.  This  membership,  as  an  important   part  of   the  business,  fosters  accountability   and   responsibility  that  leads  employees  to  accomplishing  goals  and  driving  overall  firm  performance.It  may  seem  obvious  that  paying  fairly  for  the  same  rela0ve  level  of   performance  requires  similar  pay  components  globally.  Consider  how  the  business  manages  the  base  pay  program  by  region.  Pay  decisions  should  be  made  using  similar  structures  across  loca0ons.  Similar  programs  should  exist  for  short-­‐term  incen0ves,  long-­‐term  incen0ves,  and  recogni0on.  However,  be  mindful  of  each  region’s  tax  requirements  and   regula0ons.   In  certain   countries,  long-­‐term  vehicles   used   elsewhere  may   not  deliver  the  same  value  or  may  even  be  burdensome  for  the  employee  and  firm.  Also  consider  pay  policies  for  various  situa0ons,  such  as  where  employees  are  eligible  for  different  types  of  leave  or  where  off-­‐cycle  pay  adjustments  are  called  for.    Be  willing  to  make  regional  changes  that  may  provide  differen0a0on  in  tools  used  while  s0ll  maintaining  a  similarity  in  compensa0on  delivered.ConclusionA  global  pay-­‐for-­‐performance  program  requires  a  company  to  bring  its  regional  pay  prac0ces  into  alignment  with  those  of  the  rest  of  the  company.  If   done  correctly,  it  can  op0mize  the  performance  of  each  region  and  create  a  sense  of  fairness  among  employees  that  can  lead  to  heightened  engagement  and  mo0va0on.    Employees  are  the  key  to  unlocking  value  in  global  firms.  The  sa0sfac0on  of  staff  and  their  loyalty  is  the  center  of  the  service-­‐profit  chain,  and  employee  mo0va0on  is  essen0al  for  highly  performing  firms.    Employee  needs  are  based  on  culture,  values,  and  the  regulatory  environment  but  similari0es  can  be  found  on  the  Mo0va0on  Spectrum  that  include  how  employees  live,  grow,  and  connect  with  the  firm.Having  a  strong  human  resources  infrastructure  is  the  key  to  establishing  an  effec0ve  global  pay-­‐for-­‐performance  strategy.  In  a  performance  culture,  employees  must  understand  and  have  an  equal  opportunity  to  contribute  to  the  success  of  the  company.  Common  compensa0on  policies  and  programs  are  needed  to  create  a  level  playing  field  and  support  the  company’s  pay-­‐for-­‐performance  guiding  principles.  Any  company  expanding  into  the  global  arena  will  experience  challenges  as  they   bring   regions  into  their   pay-­‐for-­‐performance  strategy.  Effec0ve  planning   and  program  design  will  help  companies  navigate  obstacles  and  keep  their  culture  of  performance  on  track.Market  pay  will  vary  by  region  due  to  local  compe==ve  wage  fluctua=ons,  but  rela=ve  merit  pay  levels  should  be  similar  by  performance  firm-­‐wide.   ©2013  Performensa0on
  7. 7. 7To  contact  the  authors  of  this  ar0cle,  please  write  to  Sam  Reeve,  at  Performensa0on.    Sam  Reeve  is  an  Execu0ve  Vice  President  of  Performensa0on  and  is  located  in  Colorado,  USA.    Xavier  Pavie,  Ph.D  is  the  Director  of  ISIS  (Ins0tute  for  Strategic  Innova0on  &  Services)  of  ESSEC  Business  School  based  in  Paris  and  Singapore.  h[p://www.xavierpavie.comAbout  Performensa/onSince  2006  Performensa0on  has  focused  on  providing  high  performance  compensa0on  plans  for  publicly-­‐traded  and  privately-­‐held  companies.  As  a  recognized  industry  thought  leader,  we  learn  as  much  as  possible  about  your  company  to  diagnose  the  founda0ons  of  success.  We  then  apply  this  knowledge  to  custom-­‐fit  solu0ons.  We  offer  assistance  in  tracking  and  monitoring  complex  performance  metrics  and  collaborate  with  leading  firms  such  as  Radford  to  ensure  access  to  best  of  class  equity  valua0on  and  TSR  metric  tracking.  Our  plan  design  and  communica0on  services  deliver  structure  and  messaging  that  align  your  goals,  culture  and  vision  with  holis0c  compensa0on  programs.About  ESSEC  Business  SchoolSince   1907  ESSEC  is  an  innova0on-­‐driven  ins0tu0on  that  creates  value  and   focuses  on   the  individual.  It  cul0vates  a  dis0nct  approach  in  order  to  preserve  and  enhance  its  leadership  in  today’s  fiercely  compe00ve   global   environment.   ESSEC   is   guided   by  the   values   of   dialog,  crea0vity,  innova0on,  responsibility,  excellence  and  openness  to  the  world  as  the  basis  for  training  tomorrow’s  business  and  government  leaders,  building  its  own  future  and  increasing  recogni0on  of  the  school  worldwide.                ESSEC-­‐ISIS,  The  Ins0tute  for  Strategic  Innova0on  &  Services,  aims  to  s0mulate,  generate  and  foster  crea0vity  and  innova0on  in  the  services  and  manufacturing  industries  with  a  view  to  genera0ng  responsible  growth  and  sustained  organiza0onal  compe00veness.  About  the  AuthorsPerformensationContacts:Dan  Walter,  President  and  CEO  +1  (415)  625-­‐3406  dwalter@performensa0on.comSam  Reeve,  EVP+1  (415)  625-­‐3088  sreeve@performensa/  Mel  Jameson,  EVP+1  (415)  625-­‐3405  mjameson@performensa/on.comESSEC  Contacts:Xavier  Pavie,  Ph.DTél  :   ©2013  Performensa0on