Transcript AMEX - HEC Paris

BEST IN FRANCE
(chatham house rules)
Content
•
•
•
•
•
•
•
Company product and client overview
Why France
Values
Impact on HR
Issues and adaptations
Learning from other units
Recommendations
19th May’2004
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
Products
Travel related
services (TRS)
AMEX financial
advisors (AMFA)
AMEX bank (AEB)
Cards
Financial planning
Banking and financial
services
Travel services
Brokerage services
In the US to institutions
and wealthy individuals
Travelers cheques
Mutual funds
Outside the US also to
retail customers
Network services
Insurance
19th May’2004
Clients
Merchants
Tourists in
France
19th May’2004
Wealthy
French
Why France?
• Major tourist destination – important for
AMEX network worldwide
• Wealthy market
• Advanced plastic market
• Advanced travel market
19th May’2004
Values
Global Values
Outcome
•Customer commitment
•Achieve customer loyalty
•Quality
•Sustain sector leadership
•Integrity
•Attract highly talented
and engaged workforce
•Teamwork
•Provide superior return to
shareholders
•Respect for people
•Good citizenship
•Realise vision:
•A will to win
“The World’s most
respected service
brand”
•Personal accountability
19th May’2004
Impact on HR
Centralised
Adapted
•360 appraisal process
•Internal communication
toned down to appeal to
French workforce
•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
19th May’2004
•Recruitment process
modified to exclude
assessment centre
activity (7 rounds still
apply)
•Rotation rarely happens
in France
Business issues
Internal
External
•Centralised control of
brand and processes
•Bank cartel – Carte
Bleu (0.8% commission)
•Trend towards
outsourcing (callcentre)
•Merchants’ reluctance
to accept AMEX 2.5%
commission
•Cultural integration of
acquired travel business
HAVAS
19th May’2004
•AMEX requires
standalone payment
network
Adaptation
Internal
External
•Customer service
remains in France to
provide high quality
local service
•Break through the CB
cartel with Societe
Generale
•Superior quality service
appeals to French
market – AMEX’s USP
•450 Card services
personnel in one
building – improved
internal performance
•Learning from HAVAS
•French labour laws
taken into consideration
at HQ
19th May’2004
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
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
We Thank
• Mr Bénard, VP HR (Amex France)
• Mr Sireyjol, Managing Director (Card
services France)
• Mme Lecomte, HR manager
19th May’2004
Bibliography
•
•
•
•
www.americanexpress.com
AMEX report and accounts 2002
Datamonitor
HR internal values document
19th May’2004
The team
•
•
•
•
•
Yngvar Bratsberg
Gaurav Gupta
Julia Homayoun-Nejad
Francois Patrice
Patrick Pruniaux
19th May’2004