2012 YEAR IN REVIEW
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In 2012, we saw markets and economies changing at a pace the world has never seen, and I predict this fluidity to be the new norm. Organiza ons around the globe are maneuvering assets and implemen ng strategies on a real me basis to gain compe ve advantage. Amidst this vola lity, Lexicon has emerged as a leading provider to assist these organiza ons through consulta ve, customized and innova ve human capital solu ons. First and foremost, Lexicon is built on and commi ed to our clients and their evolving ss the issues that needs. The services that the “Big Box” shops provide do not address our clients face daily and gives Lexicon the opportunity to provide specific solu ons to meet each client’s unique needs. Through quality and flexibility, Lexicon is being recognized as the preferred global provider versus off-the-shelf ion remains programs that offer rigid program and system limita ons. Our mission igning focused on being an extension of each client’s organiza on, fully aligning lue. ourselves with their program and culture, providing quan fiable value. ork of We regard every suppor ng provider in our LexNet preferred network suppliers a strategic element cri cal to the ul mate success of our clients’ olu ons programs, and as such are commi ed to integrated, collabora ve solu providing cost effec ve, targeted and value-rich, on-ground supportt worldwide. Paramount to our clients in this unstable environment iss having a stringent controls and compliance structure in place, which mo vated us to successfully complete a SOC 1, Type 2 SSAE-16 examina on. I am pleased to provide you with this “Year in Review” highligh ng Lexicon’s o accomplishments throughout 2012. It demonstrates our appe te to con nually develop and evolve based on our clients’ needs and ourr ears to collec ve forecast of solu ons that best support those clients for years come. Lexicon’s growing pool of talented professionals and LexNet resources ciate the are energized by the trust that our clients place in us and we appreciate valida ons through outside industry sources such as Trippel Surveyy and Research, LLC and the Forum for Expatriate Management. We valuee the new se that clients that we have welcomed in 2012, but are most proud of those con nue to place their confidence in our teams. Our clients deserve excellence and we are commi ed to providing it. We ed will con nue to advance our cost effec ve, technologically advanced and people-sensi ve mobility solu ons while always remaining focused on Your People. Your Way. Worldwide.
Michael P. Mancini CRP, GMS President & COO
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
about
LEXICON
quick FACTS Since 1993, Lexicon has grown at an impressive rate, 16 with employees located in and providing services in
2012 stats
SERVICED
for 112
MOVED of household goods
HANDLED
PROCESSED
Lexicon Reloca on is a leading provider in the administra on and delivery of reloca on benefits and global assignment services. We manage all facets of our clients' mobility programs, including coordina on of all third-party services associated with employee reloca on for private and government clients. Lexicon offers our clients their choice of a diverse array of suppliers and specializes in providing high touch personal service that is responsive, efficient and cost-effec ve. Our powerful technology tools and customer-centric service philosophy result in high performance and customer sa sfac on levels, and have posi oned us as a leader in our industry. We are proud of our 'Take Care of the Customer' business philosophy, and are dedicated to providing every client and transferring employee a single point of contact available 24 hours a day, 365 days a year. Your People. Your Way. Worldwide.
with an average turnaround of
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President’s Message Lexicon is focused on Thought Leadership and effectuating new products and services that will lead the mobility of employees around the globe for years to come
thought LEADERSHIP Our Thought Leadership Program focuses on adding value to our clients by bringing valuable and to the global mobility industry through Compelling primary research and evidence based opinions on important global mobility business challenges is provided by the diverse professionals and on our Thought
Our for our clients’ global mobility programs and transferring employees are the result of our focus on increasing and development of best based on
to
using diverse mediums to
enhance client support and contribute to the global mobility industry is the cornerstone of our
Leadership Team. process improvement.
strategy.
Trippel Survey
Lexicon achieved impressive results in the 11th Annual RelocaƟon Managers’ Survey, conducted by Trippel Survey and Research, LLC. The survey is conducted annually providing a comparison of independent evaluaƟons from 400+ corporate relocaƟon managers. Lexicon received the highest raƟng of all parƟcipants in the following major categories: Willingness to recommend to others Tenure of account personnel Data integrity Transferee expense processing Supplier’s integrity Experience level of personnel
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
1
#
TOP PERFORMER T Lexicon received the most Le
market About Lexicon
LEADERSHIP
THE
EMMAs
THE ASIA-pacific EXPATRIATE MANAGE & MOBILITY AWARDS
2012
HARBOUR GRAND, HONG KONG DECEMBER 3 2012
FEM Asian EMMA Awards Lexicon was honored to be shortlisted for the ‘DesƟnaƟon Services Provider of the Year’ and ‘RelocaƟon Management Company of the Year’ 2012 Asian EMMA awards. In addiƟon, Avrom Goldberg, a key member of our Thought Leadership Team, received the EMMA for ‘Global Mobility Professional of the Year’. The EMMA awards provide global recogniƟon to industry leaders, rising stars and business successes that relate to global mobility. Presented by the Forum for Expatriate Management, winning an EMMA is considered the 'ulƟmate recogniƟon of professional excellence in global mobility'.
Lexicon is proud to be recognized by some of the most important industry organizations for the quality of our company, level of service provided and thought leadership activities
10
Top
GLOBAL
PROVIDER
Avrom Goldberg, Global Mobility Professional of the Year
FEM Global Mobility Survey Lexicon was recognized in the Forum for Expatriate Management’s (FEM) 2012 Global Mobility Survey by being named to the Top 10 Global Providers list. The survey analyzes how global mobility programs are organized, managed and delivered to the global assignee populaƟon and benchmarks the global mobility funcƟon as a whole.
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President’s Message Global Network Integration
Our LexNet supplier network con nues to expand in number, quality and service offerings. In 2012, we focused on our real estate brokerage rage network members. Members of our Global Network Integra on team visited each provider, ovider, conducted refresh training to our excellence standards, and performed a detailed quality ality review evalua on of their services. These ongoing measures ensure that our preferred d partners con nue to provide our clients and their reloca ng employees with the best value and quality. Our real estate suppliers are the most qualified, highest performing agencies cies in the marketplace. With over 300 real estate brokerage partners across the United States, es, we have established rela onships with at least three dedicated and preferred suppliers for or all major metropolitan sta s cal areas as well as substan al support in most micropolitan n sta s cal areas.
World of Quality Awards
Recognizing the value of our LexNet suppliers, Lexicon held its annual “World of Quality” awards ceremony in Washington, D.C. on October 2, 2012. A record number of 16 global providers were honored by Lexicon’s global network integra on professionals. Award winners were chosen based upon internal and external service and performance metrics, as well as Lexicon’s Voice of the Customer surveys.
Controlled Growth
Lexicon carefully considers reloca on volume, resources, logis cs and loca on to support the evolving needs of our clients. In 2012, we expanded our regional office in Shelton, CT and our global headquarters in Jacksonville, FL to manage increased and an cipated volume. APAC ac vity con nues to expand and remains a growing reloca on des na on. Lexicon opened an office in Hong Kong serving as the Pan-Asian hub to enrich our global reach and provide in-region consulta ve support.
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
About Lexicon delivery &
DESIGN
Compensation Products Comp C
Lexicon’s compensa on experts were instrumental in the development of upgrades to LexLink Global (LLG), our instrume web-based web-bas assignment management system. LLG now offers w auto-templates to handle compensa on tables from data providers with aauto-tem standard and customized repor ng func onality. The new custom features s include: Easy Eas system integra on with many HRIS pla orms Document manager Doc Workflow and checklist automated processes Wo Mul Mu -currency accoun ng Compensa on automa on and accumula on Com
quick FACTS
By focusing on client-centric solutions, Lexicon is increasing our support around the globe with on the ground support without the financial burden of “bricks and mortar” that gets passed onto clients
We provide our clients with the best value based on individual global mobility program goals and for Household Goods criteria include Price,
Transit Times and Methods, Historical Service Levels, and
Our LexNET Supplier Network
insurance policy for one included as part of the
Commitment to Lexicon’s code of conduct
comprises 600
companies in
125 countries worldwide.
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President’s Message quick FACTS EXPENSE REPORTS Processed 40,000+ expense reports with an average turnaround of 1.6 days
ACCURACY RATES Lexicon boasts an expense processing accuracy rate of over 99.5% Invoice
THIRD-PARTY INVOICES In 2012, Lexicon handled reimbursement/payment of 25,000+ third party invoices
$
COST SAVINGS Our LexTrek technology saves our clients an average of
15 to 20% annually
Funding Options
Lexicon offers extremely flexible billing and payment op ons to meet the administra ve policies and needs of our clients. There are a myriad of op ons to meet individual requirements, including no funding, client funding and Lexicon funding. While the vast majority of our clients choose to have Lexicon fund expenses and equi es, there are a number of payment schedules offered that can reduce interest and funding costs. Payments are disbursed in a mul tude of ways including check, wire, and ACH, and can be funded in mul ple currencies as well. Lexicon also offers flexible billing op ons including hard copy invoices, flat file transmission and even true EDI.
• The fairness of the presenta on of the descrip on of our systems • The suitability of the design of the controls to achieve related control objec ves • The opera ng effec veness of those controls • Iden fica on of the customers to whom use of the report is restricted
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
anization C Org on tr ice rv
S E R V I C E O R G A N I Z AT I O N S
SOC
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A key step in our ongoing focus to provide security and compliance excellence to our clients, Lexicon successfully completed a SOC 1, Type 2 SSAE-16 examina on. A SOC 1 (Service Organiza on Controls Report) chronicles the management of an en ty’s financial repor ng. To successfully complete the examina on, Lexicon presented informa on to a qualified Service Auditor, who subsequently a ested to:
ts por Re ol
System Security, Encryption, Control and Compliance
AICP AS e
During 2012, Lexicon expanded our client base by 9% and added service offerings to an additional 7% of our client base
Lexicon financialAbout stability &
GROWTH
GSA Advantage
Lexicon con nues to be an ac ve par cipant in the GSA reloca on program under MAS Schedule 48. From home sale to rental assistance to move management, Lexicon is an approved supplier under all reloca on SINs. For fiscal year 2012, Lexicon was the 4th largest GSA home sale provider. Lexicon has an SBA and GSA approved Small Business Subcontrac ng Plan and reports results semi-annually hereunder. Over 21% of all subcontrac ng went to minority owned small businesses, exceeding both the Plan’s and GSA’s goals. Lexicon also received an EXCEPTIONAL ra ng in every audit conducted by GSA to track compliance with program requirements and accuracy in invoicing.
Lexicon remains focused on maintaining our financial stability and level of quality in order to continually expand our capabilities and ability to provide support
Diversity
Lexicon is commi ed to crea ng a be er reloca on solu on, and diverse suppliers are a strategic impera ve in Lexicon’s business model. We also support our clients’ need to meet their diversity ini a ves through qualified and proven suppliers. Our system tracks and reports on diversity spend per individual client specifica ons for cer fied minority-owned Small and Large Business, cer fied Small Disadvantaged Business, cer fied Women-Owned Small and Large Business, Small Veteran-owned, Small Service Disabled-Veteran Owned, and small, cer fied HUB-Zone companies.
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Global Team
To meet evolving global client needs, Lexicon augmented our internaƟonal mobility and compensaƟon teams by more than 20% in 2012. More than 85% of our top-notch, dedicated professionals have first-hand experience living and working in another country, and speak at least two languages. The stability of the team is consistently higher than the industry average, with an employee retenƟon rate of over 90%.
GREEN Initiatives Lexicon has made a and to reduce are
to our carbon footprint. Our earth-friendly and
Sustainable Building Maintenance Usage of ‘Green’ Suppliers
Take Care of the Customer
At Lexicon, our philosophy is to 'Take Care of the Customer' (TCC). Working toward our goal of becoming the acknowledged performance leader in global mobility services, Lexicon conƟnues to build collaboraƟve, value-driven relaƟonships with our clients that provide superior benefits to their employees. PromoƟng TCC solidifies our commitment to delivering excepƟonal quality and performance to our customers and earning their loyalty and trust. PracƟcing this approach has helped us to achieve an exemplary history of service excellence.
oreVALUES TRUST
The highest standard of integrity is the
TEAMWORK
INNOVATION
A forward thinking,
Lexicon comprises a diverse workforce that enjoys working together and for our customers. It is our shared responsibility to provide the necessary tools to support our client programs
OPPORTUNITY A
with
growth
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
people, culture &
STRUCTURE
lexic n Social Responsibility
“What can we do to make the world a be er place?” Lexicon answers that ques on on corporate responsibility with The Heart of Lexicon, a program created to encourage community involvement throughout our organiza on. Perpetua ng the idea that one person can and does make a difference, we encourage employees from all offices to organize and par cipate in philanthropic ac vi es in their respec ve communi es. Events include fundraisers and outreach ac vi es suppor ng domes c and interna onal relief and development programs, community services, and disease research and treatment. We also hold annual food, clothing and toy drives for needy families in their local communi es. Our employees’ individual involvement in non-profit organiza ons is supported with flexibility. Lexicon and our people con nue to make this world a be er place to live in.
work-life BALANCE Lexicon’s culture includes a strong philosophy and formal policies
work-life balance. Over 20%
Our goal is to ensure that Lexicon remains the
of Lexicon
employer of choice
employees
the
recognizing and unique needs of our most
elect to work a
schedule.
clearly
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historical
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System Architecture
Company Website
We redesigned our public website, offering an enhanced user experience.
SM
One of the key priori es at Lexicon is maintaining and upgrading our informa on technology infrastructure including enterprise level, state-of-the-art network, server, and security equipment. During 2012, Lexicon upgraded its core produc on equipment to provide maximum processing power, end-to-end device monitoring, and robust disaster recovery. Lexicon employs advanced applica on device failover and database redundancy to ensure uninterrupted availability of business systems.
LexTrek Technology
LexTrek features a web-based, point-to-point interna onal move model that allows Lexicon’s network of preferred freight forwarders and interna onal movers to easily and efficiently provide compe ve door-to-door pricing for air, surface and permanent storage shipments as well as pricing for commonly used services.
Go-to-Green
Lexicon’s issue resolu on process for clients includes our Go-to-Green Quality Business Process Ini a ve. It is designed to iden fy process and communica on breaks across all spectrums of our service delivery. All technology-related client issues are considered a ‘red’ flag in our account management culture and we move quickly in changing that status from red to green so all par es move forward. Root causes are quickly iden fied with immediate dedica on of addi onal resources and a Go-To-Green Master Project Ac on Plan is developed. Each Plan has Execu ve Sponsor representa on from our client and Lexicon to ensure proper focus and removal of any roadblocks to success as the Plan moves toward expedited resolu on. A er the issue is resolved, a further analysis ensues, u lizing Six Sigma methodology to prevent a similar occurrence and create a permanent solu on, if needed.
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
powerful lexglobal link
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TECHNOLOGY
LLG System t Upgrades U
We proac vely an cipate business and client needs driving our technology update efforts. Lexicon con nually enhances its opera ons so ware and applica ons to improve user experience and provide addi onal func onality and efficiency. We implemented six upgrades in 2012 providing enhancements across almost all func ons in our LexLink Global applica on. Changes include: • Major enhancements to the cost es mate func on providing more customized cost projec ons • Electronic publishing of payroll reports on the client portal and year-end tax reports on the employee portal • New interna onal compensa on data input • Custom calcula ons Lexicon’s state-of-the-art • Repor ng templates • Employee access to portal from mobile devices technology is driven by • Role-based security for user reports.
Communications
Lexicon completed the implementa on of a new telecommunica ons system this year, taking advantage of advanced communica ons technologies available. Our VOIP telephone system provides greater control over the enterprise level communica ons and connec vity of branch offices. The system provides more op ons for addressing emergency service interrup ons. When Hurricane Sandy decimated a large por on of the New York and surrounding area, we were protected. While power loss affected our Shelton, CT facility, we were able to automa cally re-route all telephone and facsimile communica on directly to our back-up facility in Atlanta, GA. There was no loss of communica on for our clients or their reloca ng employees.
compliant, secure and reliable systems that provide our teams, customers and clients with real time information and accurate billing and reporting Mobile Access
Lexicon has developed a specialized view of its reloca on website so that employees can access key reloca on informa on on their mobile devices.
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We work in an accelerated and on-demand business climate where compeƟƟon is not limited to local or even naƟonal businesses, but is found everywhere in the world. Technology, travel and communicaƟon soluƟons have globalized markets, making the 24/7 business environment a mandate. Real Ɵme demands are transforming economies and cultures and as a consequence, businesses. The companies that can provide quality responses to the new market demands will be successful. Adaptability and speed-to-market are the keys to that success. This is not a point in Ɵme remark. Legacy systems, anƟquated manual processes and the inability to make immediate market adjustments will be the demise of organizaƟons, or at a minimum will force them to watch their compeƟtors gain market share. Lexicon is traveling forward in the fast lane. Remaining flexible and thought provoking while adding value to our mobility soluƟons is imperaƟve for our clients and those clients looking to improve their programs. Peak performance maƩers on all levels.
Big Four Tax Engine OpƟon
Expanded capabiliƟes and automaƟon of our Global CompensaƟon AccumulaƟon support
Expanded Lexicon Thought Leadership. A strategic combina on of our on-the-ground resources and networks around the globe improving real me solu ons. Increased webinars on mely, per nent topics of interest to allow more interac on and current informa on dissemina on. Global surveys and regional studies will also be highlighted.
YOUR PEOPLE. YOUR WAY. WORLDWIDE.
EExpansion xpansion and ffurther urther integraƟon of LexTrek, Lexicon’s internaƟonal moving services model
Lexicon remains in motion, helping shape the future of global mobility with consultative, innovative, and comprehensive solutions for your evolving needs
Improved “quick esƟmate” tool for all move types
looking
FORWARD
Lexicon understands our single most important asset is our people. The soluƟons we provide through client-centric support and intuiƟve technologies are craŌed, built and delivered by our qualified professionals. We believe they are the best in the business and will conƟnue to invest in tools and create synergies to beƩer support them. We work hard to maintain and improve our business environment for our people and that means more informed, beƩer equipped and more pleasant service experiences for our customers. We are pleased to provide you with a glimpse of advances planned for the coming year.
Expansion of Lexicon’s FlexMove program, offering a number of household goods op ons, and integra on of a new, lump sum model that will be available to corporate, government and affinity markets
Real Ɵme interface with HRIS systems
EExpanded xpanded Lexicon global footprint via virtual and in-region assets
AddiƟonal reporƟng capabiliƟes, including expanded online and real Ɵme authorizaƟon ability
We are proud of what our people have accomplished, humbled by the trust our clients conƟnue to place in us and are excited about new opportuniƟes and the advancements that we are bringing to our clients and the marketplace. Lexicon thanks our valued clients as well as our hard-working people, our worldwide supplier network and our insighƞul Board of Managers for the support and energy to forge ahead.
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+1.904.858.1255 / +1.800.387.8242 www.lexiconrelocation.com