BEST IN FRANCE (chatham house rules)

1. BEST IN FRANCE (chatham house rules)

2. Content • Company product and client overview • Why France • Values • Impact on HR • Issues and adaptations • Learning from other units • Recommendations 19th May’2004

3. Company overview • Global spread, centralised control • Total employee: 78,000 (3,000 in France) • Worldwide turnover: $26bn (2003) • 9% growth year on year (20% in France) • 2% of world plastic market • Largest travel agency worldwide • 75% of revenues from US • 4% of revenues from France • 1 million cardholders in France • Targeted at top 10%, individuals and institutions • 30 years operation in France 19th May’2004

4. Products 19th May’2004

5. Clients Merchants Tourists in France Wealthy French 19th May’2004

6. Why France? • Major tourist destination – important for AMEX network worldwide • Wealthy market • Advanced plastic market • Advanced travel market 19th May’2004

7. Values • Global Values • Customer commitment • Quality • Integrity • Teamwork • Respect for people • Good citizenship • A will to win • Personal accountability • Outcome • Achieve customer loyalty • Sustain sector leadership • Attract highly talented and engaged workforce • Provide superior return to shareholders • Realise vision: • “The World’s most respected service brand” 19th May’2004

8. Impact on HR • Centralised • 360 appraisal process • Management performance and bonus depends on upward appraisal • Company values linked to long term strategy and measured through appraisal system • Compensation linked to a global scale • Adapted • Internal communication toned down to appeal to French workforce • Recruitment process modified to exclude assessment centre activity (7 rounds still apply) • Rotation rarely happens in France 19th May’2004

9. Business issues • Internal • Centralised control of brand and processes • Trend towards outsourcing (callcentre) • Cultural integration of acquired travel business HAVAS • External • Bank cartel – Carte Bleu (0.8% commission) • Merchants’ reluctance to accept AMEX 2.5% commission • AMEX requires standalone payment network 19th May’2004

10. Adaptation • Internal • Customer service remains in France to provide high quality local service • 450 Card services personnel in one building – improved internal performance • External • Break through the CB cartel with Societe Generale • Superior quality service appeals to French market – AMEX’s USP • Learning from HAVAS • French labour laws taken into consideration at HQ 19th May’2004

11. Learning from other units • AMEX France acquired HAVAS • Change management processes learnt from UK and German experience • Integration of HAVAS: • Phased approach • Company-wide consultation • Learning from HAVAS in order to maintain the company’s USP • Encouraged buy-in rather than enforced changes 19th May’2004

12. Recommendations • Be local • Take time to understand the French environment and culture • Have a French management : it also helps building partnership • Keep the same people a long time, stability is important • Take advantage of the skills offered by the French labour market • Be aware that the French labour law is very administrative and can be cumbersome 19th May’2004

13. We Thank • Mr Bénard, VP HR (Amex France) • Mr Sireyjol, Managing Director (Card services France) • Mme Lecomte, HR manager 19th May’2004

14. Bibliography • www.americanexpress.com • AMEX report and accounts 2002 • Datamonitor • HR internal values document 19th May’2004

15. The team • Yngvar Bratsberg • Gaurav Gupta • Julia Homayoun-Nejad • Francois Patrice • Patrick Pruniaux 19th May’2004