Mobility in the next Decade: Ensuring you have the right programs to meet future talent

challenges

Presenters:

Morgan Crosby of AIRINCKaren H. Doherty of IBM

New York, October 4, 2010

Agenda

• Introduction from Morgan Crosby• IBM Company & Mobility Program • A Global Process • Compliance is a must • IBM’s Global Mobility Framework • Policy Review & Benchmarking • Finally, the Tooling... • Delivery Optimization

Mobility Outlook

In 2010: 83% of Companies Expect their Expat Populations to Stay the

Same or Increase 44% are looking to adopt Lower Cost Alternative Packages 23% are expecting an increase in the number of

developmental assignments

Realigning Mobility Facilitates Increased Numbers of Expats

Balancing Needs and Offering Flexibility

CompanyCompany

BusinessBusiness

EmployeeEmployee

Policy Spectrum

Assignment Value vs. Cost

The Right Package – Decision Tree

IBM Company & Mobility Program

• IBM has approx 400,000 employees worldwide and $95.8B in revenue in 2009

• Over 10,000 assignees and localizations• Mixture of internal and client facing, short term

and long term• Includes entry level to top execs, covers growth

and major markets• Program is delivered by six regional delivery

centers and a large global HR team

A Global Process • IBM’s Global Mobility transformation started in 2007 with a

global process re-engineering effort• As-is processes were regional or even country based• Became the foundation for future work to come and

exposed many root issues in tooling and organization• Included a renewed focus on compliance and business

controls• Was a key ingredient in creating a more globally cohesive

team

Compliance is a must • Mobility programs have always had a strong tax and

immigration compliance obligation• It must be the foundation of any solid program• Technology has driven new solutions and new

opportunities• Plan on always having compliance projects and resources

set aside for that purpose• Tax and Immigration compliance are very unique and

must be approached differently

IBM’s Global Mobility Framework • Implemented in January 2009 with assistance from

Deloitte• Shifts assignment plan focus from duration to purpose• Driven by business demands and the need to be able to

fund more short-term developmental assignments• Became the foundation for the Policy Benchmarking

project• Flexible model continues to grow and flex with business

need• Current work includes incorporating localizations as well

as assignments into the framework• Has become part of the planning/budgeting process

The Global Mobility Framework cont.

Policy Review & Benchmarking • Six month effort included reviewing all policy plan provisions• Initial pass with high level input from Deloitte/AIRInc helped to focus

areas for deeper analysis• Goal was to get rid of custom formulas, methodologies etc. and move

to a maintainable, defensible set of provisions• Also provided an opportunity to further differentiate the plans in the

new framework• For those items “shortlisted”, detailed financial modeling was done to

determine impact to assignees and cost/savings to the organization• Rightsizing allowances provided hard savings to fund other mobility

initiatives – although goal was not simply to save money• Implementation of changes to coincide with the launch of our new

mobility system later this year• Grandfathering decisions were important – took the approach not to

change existing terms and conditions

Finally, the Tooling… • People always want to begin with systems; it’s best to do this last• Get the process, policies and organization stable and funding secure

before embarking on systems work• Mobility systems are still an immature market – and company policies

and processes are often very customized• It will always take longer and cost more – build in buffer you don’t plan

to use• It’s very important to be honest as to how complex your program is –

are you amenable to change or not? There’s no right answer, it’s about “fit”

• Good project management is key – for both the vendor and the company

• Good partnership is needed between technology vendor, data vendor, tax provider and your internal organizations

Delivery Optimization • Delivery is the face to the “client” but is often outsourced• There is no one right answer – need to consider cost, complexity,

service level, timezones; again, it’s about “fit”• IBM has a mix of entry level to senior professionals delivering the

mobility process all around the world• Where possible use technology and self service forms/information to

lower costs and increase satisfaction• Technology can also increase control and assist with compliance• Consider a global case tracking tool that the HR organization has

access to and gets feedback on SLAs and case load/details• An annual survey of all assignees can help the organization gauge

how they’re doing• It’s useful to have resources dedicated to process improvement and

client satisfaction – mobility is a very dynamic area of HR