Dedicated to improving the relevance and effectiveness of performance and reward
Global trends are already changing our world. Not being aware of the underlying forces, and failing to take appropriate and timely action, could potentially turn your life and business upside down. Professor Adrian Done IESE Business School
Welcome to PARC in 2013 From conversations with our members it is clear that we are living in interesting times. Even those businesses which are successful seem cautious. This caution may reflect an uncertain future or the media coverage that follows most major organisations. The world in which we operate contains a number of threats and opportunities. These include the shifts caused by the financial crisis, the diverse geographies in which we operate, changing technology and changing climate. It is against this background that we have assembled this year’s programme which constitutes a blend of economic and political context, innovation and technology, managing global talent and, of course, executive reward. Continuing the successful approach of recent years, we shall start 2013 with consideration of the economic outlook and especially the future of the Euro. Changing the pace, our spring programme will consider two areas that we have not previously investigated. Our March meeting will explore the role of reward in supporting the creativity and innovation that organisations view as increasingly important for success. This event will develop some of the themes of the 2012 CRF conference. In May we will build on member experience to consider how companies are responding to the challenges of working in global markets. We held our first ‘overnighter’ last year and members enjoyed the lively debate, the increased opportunity for informal conversation, and the ‘roundtable’ approach to sharing current issues. This summer’s meeting will therefore take a similar format. With the ‘AGM season’ behind us, we may wish to take stock of recent and further developments in executive remuneration. In September we shall look at executive reward from a different angle – the effective alignment of communications to the full range of potential ‘stakeholders’: institutional investors and other shareholders, the public via the media, the executives themselves and other employees. The CRF-PARC conference in October takes us back to the big picture with a focus on ‘strategy in a changing world’ by covering the key impacts of the economic context, of the political landscape and of developments in technology. Having gained a broader understanding of what may drive the future, in November we shall turn to organisational effectiveness and consider what ‘good performance’ now looks like. As previously, we conclude with our annual dinner and speaker. Once again we have a challenging but perhaps transformational year ahead of us.
2013 2013 Programme
Dedicated to improving the relevance and effectiveness of performance and reward
Meetings at a glance The future of the Euro and what this may mean for Europe Breakfast briefing: Roger Bootle, Capital Economics
The role of reward in supporting creativity & innovation Evening briefing: Professor Antonio Dávila, IESE Business School; Simon Linares, Telefonica Digital
Developing an appropriate response to the challenge of working in global markets Roundtable discussion: John Beadle, Rio Tinto; Annelyse Fournier, First Data; Simon Nash, Reckitt Benckiser
Speaker-led debate: Executive reward Tom Gosling, PwC; Jennifer Walmsley, Hermes
Workshop: Your current issues
The right message: aligning the communication of executive reward Afternoon briefing: Roland Rudd, RLM Finsbury; Stephen Cahill, Deloitte
Conference: Strategy in a changing world Chairman: Michael Portillo Conference leaders: Professor John Kay, Gideon Rachman, Tom Standage, Professor George Yip
Assessing the effectiveness of organisations: what now constitutes good performance? Research briefing: David Creelman and others
Tuesday 29 January Eversheds LLP 08.15 – 10.00
Thursday 21 March Man Group plc 17.00 – 20.00
Thursday 23 May The Institute of Contemporary Arts 16.00 – 19.00 Thursday 18 and Friday 19 July Lainston House Hotel Winchester 17.30 – 11.30 Thursday 5 September The In & Out Club 16.00 – 19.00
Wednesday 2 and Thursday 3 October Meliã Castilla Hotel Madrid Thursday 21 November Thomson Reuters Group plc 17.00 – 20.00
Programme dinner: Daniel Finkelstein of The Times
Thursday 5 December The Dorchester From 18.30
Thursday 13 June Thursday 17 October
Programme launch and speaker
2013 2013 Programme
Our philosophy is based on the belief that successful organisations need: • A clear and compelling business strategy which is communicated effectively throughout the organisation • An engaged, capable and motivated workforce • An environment which encourages high performance with minimal barriers to effective operation • A performance measurement system which is clear, unambiguous and can track performance at all relevant levels of the organisation • HR practices which support the business strategy and create the above conditions.
Benefits of membership About PARC Through the provision of informative and challenging research and briefings, PARC enables HR & Reward Directors to engage with leading thinkers, expert practitioners and each other on the key issues affecting today’s organisational performance, reward and governance agenda. PARC works closely with its sister organisation, the Corporate Research Forum (www.crforum.co.uk).
Membership includes Direct access to leading thinkers – PARC meetings are led by business leaders and expert practitioners in human resources, performance and reward management. Independent research – PARC research projects draw upon a wide range of sources from our membership to consultants, leading academics and other informed parties. Conversation and networking – PARC constitutes an unrivalled network of senior experts and practitioners; members can exchange insights into reward practices in a relaxed and confidential forum. Original ideas – through a focus on developing approaches that are both original and practical. Meeting reports – the content and discussions at our principal meetings are captured in meeting reports which are circulated to members. This ensures that those who are unable to make a particular meeting still have an opportunity to access the insights arising. The reports also enable members to share learning with their teams. Member lunches – lunches are also organised at which existing and prospective members are welcome to join us to meet their peers and discuss current issues. Ad hoc requests – the PARC team is also happy to facilitate discussions on any issues of concern or interest to members that are not highlighted in our official programme. Brief email member surveys are possible where the subject matter is relatively straightforward and likely to be of broad interest. Website – www.parcentre.com contains information on all our events together with member-only access to our publications.
Who should join? Annual membership is open to all organisations. Participants are at senior level and typically responsible for developing and leading reward strategy, policy and practice. They include heads of performance and reward functions, Group HR directors and other top level HR professionals. To ensure that effective peer discussion is facilitated, the ‘rules of the game’ only allow for substitution by more junior staff where this is agreed with a PARC director. Annual membership reflects the premium value of events, related services and our pre-and post-event literature. Membership comprises a broad range of around 50 organisations, most of which are bluechip FTSE companies. Members include: BP, BT, Rolls-Royce, GlaxoSmithKline, HSBC, Reckitt Benckiser, Standard Life and Vodafone. We also have a few members who are based outside the UK but who value the perspectives that membership can bring.
2013 2013 Programme Clockwise from top left: Kevin Abbott; Mairi Bannon; Nick Starritt; Mike Haffenden
Who we are PARC Directors Kevin Abbott leads much of PARC’s research, especially that into the major components of the reward package. He has a strong interest in incentives and pensions. Kevin is an independent consultant and Chairman of the Trustees of the Barclays Bank Pension Fund. Previous roles include consultant at PwC and Head of Investor Relations and VP Remuneration and Benefits for BP. Mairi Bannon leads on PARC membership issues and manages the PARC team. She has a keen interest in the economic and political environments in which business operates, trends in corporate governance, and HR issues generally. She is a founding partner of Strategic Dimensions, an executive search business for high-level professionals, and of the Corporate Research Forum. Her early career was spent in HR in the UK and Germany. Mike Haffenden helps us link reward to organisational development and the agenda of our sister organisation, the Corporate Research Forum. He is especially interested in the drivers of high performance and creativity. Mike founded the Corporate Research Forum and is also a founding partner of Strategic Dimensions. He previously held a number of senior HR positions. Nick Starritt provides broad expertise in HR matters generally and on the links between HR and business strategy, having worked in senior line and HR roles during his career. He is now a partner in Sirota Consulting, with a focus on employee engagement, and manages their European operations. Prior roles include Group VP for HR for BP plc. In this role he was voted ‘top HR professional’ by Personnel Today.
Clockwise from top left: Nigel Turner; Phil Wills; Richard Hargeaves; Claire Dyer; Eva John-Lewis
Our research and associate team Nigel Turner undertakes much of our research and writing and co-ordinates the development of our annual programme. He has a keen interest in employee and executive equity plans. An independent project consultant, his prior roles include Head of Executive Reward and Head of Reward Policy for BP and regional compensation and benefits manager for Mobil. Phil Wills advises and assists PARC in the development of key events. He has a strong interest in the design of reward plans to support business strategy, including executive incentive plans. An independent consultant, currently advising UK and mainland European companies, his previous roles include global head of compensation and benefits for Reed Elsevier, ICI and Diageo. Richard Hargreaves leads on growing and broadening the membership and is also responsible for securing and developing partnerships. Richard has a similar role at our sister network the Corporate Research Forum. Previously Richard led a commercial team at The Economist Group. Claire Dyer co-ordinates PARC membership activities. She has extensive experience in support roles in both the commercial and voluntary sectors. Eva John-Lewis organises and facilitates PARC’s events and is also executive assistant to Mairi and Mike.
Our partners Corporate Research Forum (CRF) is a membership network for senior HR professionals seeking to develop their people strategy and organisational effectiveness. NorthgateArinso (NGA) is the world’s leading HR and Payroll provider for businesses and organisations. With over 15,000 private and public sector customers across the UK, NGA offers award-winning HR solutions which range from fully integrated HR, payroll and talent management solutions to standalone reward services to support the entire employee life-cycle.
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Breakfast Briefing Date Tuesday 29 January 08.15 – 10.00 Venue Eversheds LLP 1 Wood Street, London, EC2V 7WS Speaker Roger Bootle, Capital Economics
The future of the Euro and what this may mean for Europe This year we open our programme by welcoming Roger Bootle of Capital Economics who will set the economic scene for the coming year, focusing particularly on Europe and the Euro. Roger’s expertise and insight in this area was confirmed in July 2012 when it was announced that his team’s work on the Euro had won the Wolfson Prize, the second biggest prize in economics after the Nobel. Roger’s widely acclaimed book ‘The Trouble with Markets’ has recently been updated and expanded to comprehend the work recognised by the Wolfson judges. Signed copies will be distributed at the meeting.
Content • Will the Euro survive? • If so, what shape will Europe take? • If not, what will Europe look like? • General discussion of domestic and international economic prospects.
Biography Roger Bootle runs Capital Economics, one of the world’s largest independent economics consultancies, which he founded in 1999. Roger is also a Specialist Adviser to the House of Commons Treasury Committee and an Honorary Fellow of the Institute of Actuaries. He was formerly Group Chief Economist of HSBC and, under the previous Conservative government, was appointed one of the Chancellor’s panel of Independent Economic Advisers, the so-called “Wise Men”. Roger has written many articles and several books on monetary economics. His latest book, ‘The Trouble with Markets’, analyses the deep causes of the recent financial crisis and discusses the threats to capitalism arising from it. He appears frequently on television and radio and is also a regular columnist for The Daily Telegraph. He was named Economics Commentator of the year at The Comment Awards 2012. Roger studied at Oxford University prior to becoming a Lecturer in Economics at St Anne’s College, Oxford.
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Evening Briefing Date Thursday 21 March 17.00 – 20.00 Venue Man Group plc 2 Swan Lane, London, EC4R 3AD Speakers Professor Antonio Dávila, IESE Business School, plus case study contributors
The role of reward in supporting creativity & innovation Reward has received a bad press when it comes to supporting creativity. With the help of a senior academic and case study contributions, this meeting builds on last year’s conference to raise our understanding of how reward can play its part in helping organisations to innovate. Companies need to be creative and innovative if they are to remain competitive in global and fast changing markets. Studies have shown that certain conditions help innovation to flourish. It is useful to identify whether organisations seek ground-breaking innovation or incremental product development. Whichever type of innovation is required, it is important to ensure rewards and incentives align with the expressed goal - especially as some academics claim that traditional incentives extinguish intrinsic motivation and may even crush creativity. So, to find out what works best in the real world, we will explore the evidence, consider case studies, and discuss the pros and cons of different approaches. Our session will be led by Professor Tony Dávila of IESE Business School, with a case study of Telefonica Digital provided by Simon Linares.
Content • What constitutes innovation? Types of innovation and their links to business strategy. • Do different types of innovation require different reward practices, especially where failure may precede success or where results take time to flow through to the bottom line? • What are the key factors to consider when designing reward arrangements for units aiming to be centres of innovation? • Case study examples.
Biography Antonio Dávila is Professor of Entrepreneurship and Accounting & Control at IESE Business School in Barcelona. From 1999 to 2006, he was part of the faculty at Stanford University's Graduate School of Business, where he still teaches periodically. Tony earned his Ph.D. from Harvard Business School and his MBA from IESE. His teaching and research interests focus on management systems in entrepreneurial firms, new product development and innovation management, and performance measurement. He is co-author of ‘Making Innovation Work: How to Manage It, Measure It, and Profit from It’ and ‘Performance Measurement and Management Control Systems to Implement Strategy’. He has also edited a third book ‘The Creative Enterprise’. Simon Linares led the establishing of the new HR function for Telefonica’s global digital businesses with a key goal of embedding a ‘creating culture’ of innovation and agility across the organisation. Prior to this assignment he was Group HR Director for Telefonica, leading the HR functions across the O2 group of companies. Simon moved into HR with Diageo, becoming HR Director for Iberia based in Madrid and then leading the Africa region. His early career was spent in a variety of front line sales and commercial roles.
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Roundtable Discussion Date Thursday 23 May 16.00 – 19.00 Venue The Institute of Contemporary Arts 12 Carlton House Terrace London, SW1Y 5AH Speakers John Beadle, Rio Tinto Annelyse Fournier, First Data Simon Nash, Reckitt Benckiser
Developing an appropriate response to the challenge of working in global markets This ‘roundtable’ meeting will focus on the deployment of international talent and how businesses are creating new employment models to respond to this critical challenge. Over the past few years, as the global economy has become increasingly inter-connected, there has been a significant shift in the level of challenge facing businesses that seek to benefit from the development of new markets and geographies. A key aspect of this challenge is attracting and developing the talent needed to respond to these new opportunities. In a globalised economy, is international exposure the new norm and expected employment model? Are companies acting tactically or strategically in this area? What is the emerging ‘value proposition’ for up and coming talent? How do you develop an international mind-set and international leaders? Are companies re-designing reward packages to reflect different employment models? Is the traditional expatriate package on the way out or have other pressures simply replaced compensation for ‘hardship’? Are new types of international assignments now emerging? To what extent is this a UK issue? By exploring the current approaches of three member companies, Reckitt Benckiser, Rio Tinto and First Data, and with contributions from senior experts Andy Robb of Deloitte and Professor Michael Dickmann of Cranfield, we will consider how these organisations have developed their responses.
Content • • • •
The challenges of global talent management and global careers Current trends and developments and their fit to business models International mobility strategies, considerations and impacts The underpinning expectations and reward / employment models.
Biographies John Beadle is Global Practice Leader, Performance and Reward, Rio Tinto plc. He has over twenty years experience in HR and reward in the natural resources, financial, consumer goods, information technology and pharmaceutical industries, working in the UK, US, Europe and Asia. Previous positions include group remuneration and benefits director for GSK, regional total compensation director for IBM, global compensation and benefits director for Reckitt Benckiser, head of group performance and reward for HSBC, and, prior to his current position, global head of human capital performance at Standard Chartered. John was appointed Vice President, Reward for the CIPD in 2008 and became a Companion of the Institute in 2010. Annelyse Fournier is the VP International Compensation and Benefits at First Data Corporation. Over her career she has held various reward and HR positions including: regional C&B manager EMEA for Philip Morris, C&B manager International Supply Chain at Kraft Foods, Director international reward for Beam Global Spirits and Wine, HR director for EMEA Manufacturing in Monsanto, and head of reward for Barclaycard. Annelyse has covered an extensive range of geographies and has experienced the various cycles of expat life. She has an MBA in International Management from the European University in Geneva.
Simon Nash is Senior Vice President, Human Resources for Reckitt Benckiser and a member of the company’s Executive Committee. Simon joined Reckitt Benckiser in 2009 from Novartis Consumer Health, where he was Global Head of Human Resources, based in Switzerland. He started his international career with Procter & Gamble in detergent manufacturing, before moving into HR with Mars Confectionery. He moved to New York in 1993 with Kraft Foods International and then on to Chicago as HR head of the office products subsidiary of Fortune Brands Inc.
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Debate and Workshop Date Thursday 18 to Friday 19 July 17.30 – 11.30 Venue Lainston House Hotel, Winchester* Speakers Tom Gosling Jennifer Walmsley *The cost of overnight accommodation is £200 + VAT
Evening Debate: Moving forward with executive reward Morning Workshop: Roundtable discussion of current reward issues Our overnight meeting provides an opportunity to participate in a highly topical debate led by experts, to enjoy an opportunity to network with peers, and to benefit from a structured discussion of your current reward issues. We held our first ‘overnight’ meeting last year and the feedback was excellent. Members enjoyed the lively debate, the increased opportunity for informal conversation and the ‘roundtable’ approach to sharing current issues. This summer’s meeting will therefore take a broadly similar format. By the time of the meeting, and with the 2013 ‘AGM season’ behind us, members will have experience of how shareholders have reacted to the frameworks and awards that companies have adopted this year. With the help of our speakers, we will take stock of recent developments and consider how executive reward can best move forward. How have remuneration committees responded to the principles recently issued by Hermes and other investor groups? Is consensus emerging on the forms that improvements might take? How might solutions differ across sectors? How best can these be implemented in practice? What dilemmas, barriers and opportunities are members themselves experiencing as they work these issues with their remuneration committees? And how are executives themselves reacting? Our speakers are well placed to help us address these issues. Each has deep involvement in many of the latest developments and each has well considered perspectives on where executive remuneration should be heading. We anticipate a frank and practical discussion of the current state of play, of members’ own experience and of how best to move forward. The morning workshop, a ‘members only’ session, will be based around contemporary topics and issues of concern which will be canvassed prior to the event. The aim is to provide a forum within which members can discuss approaches, experience and practice, as well as reflecting on the prior evening’s discussions.
Content • Executive remuneration: recent developments, barriers and opportunities, the way forward • Extended opportunity to network with peers • Roundtable discussion of current or emerging reward issues.
Biographies Tom Gosling is a partner at PwC and leads their reward practice in the UK. He advises the boards of multinational clients on executive remuneration and governance issues. He has been responsible for PwC's briefings and thought leadership on executive compensation issues, including their research project Reward: A New Paradigm? He has also conducted cross-sector research on The Psychology of Incentives in conjunction with the LSE. He is a regular press commentator, public speaker, and contributor on remuneration and governance issues. He is a qualified Actuary and has a PhD in Mathematics. Prior to joining PwC he was a Research Fellow at the University of Cambridge. Jennifer Walmsley is Director and Head of UK and Australian engagement at Hermes Equity Ownership Services. She and her team undertake board-level engagements at companies to raise concerns relating to strategic, financial, social and environmental and governance issues. Jennifer was previously responsible for EOS’s engagement work in the US. She often speaks at seminars and conferences and has written papers and chapters on issues such as shareholder engagement, anticorruption, the role of non executive directors and climate change. Jennifer represents EOS on external bodies and committees including the NAPF Shareholder Affairs Committee. Most recently she played a key role in the development of the ‘Remuneration principles for building and reinforcing longterm business success’ issued by Hermes, the NAPF and other investor organisations. Before joining Hermes in 2003, Jennifer was a financial journalist. She is a graduate of Oxford University.
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Afternoon Briefing Date Thursday 5 September 16.00 – 19.00 Venue The In & Out Club 4 St James’s Square, London, SW1Y 4JU Speakers Roland Rudd, RLM Finsbury Stephen Cahill, Deloitte
The right message: aligning the communication of executive reward The aim of this meeting is to raise our appreciation of how best to provide controlled and consistent messaging across the multiple audiences for executive reward information and outcomes. Given the increased levels of scrutiny of executive remuneration, our goal is to explore how progressive organisations can best communicate reward given the wide nature of the interested parties: executives themselves, shareholders, regulators, financial markets, the media, employees and others. Our primary focus is on external communications and our discussion will be led by Roland Rudd, an accomplished strategic communications consultant who will help us consider the potential audiences and various aims, e.g. regulatory, reputational, building trust, participant understanding. We will also be joined by Stephen Cahill, Partner at Deloitte, who, in addition to sharing his broad experience in this area, will guide us on the possible longerterm implications of the new remuneration reporting requirements that come into force from October. To complete the picture with an internal perspective, we will ask meeting participants to share their experience and learnings from recent executive reward communication programmes.
Content • Planning for multiple audiences and multiple purposes • Success stories / what can go wrong • The implications of new reporting requirements • Member experience.
Biographies Roland Rudd is Chairman of RLM Finsbury, one of the largest global financial communications groups. Before founding Finsbury, Roland worked as a financial journalist at The Financial Times, The Sunday Correspondent and The Times. At Oxford University he read philosophy and theology and was President of the Union. He is now a visiting Fellow at the University’s Centre of Corporate Reputation and an honorary fellow at the University’s Regent’s Park College. Roland contributes his expertise to various organisations. A former board member of Britain in Europe, he is now the founding Chairman of Business for New Europe, a member of the Advisory Board of the Centre for European Reform, and the founding Chairman of the Legacy10 charitable giving campaign. Stephen Cahill joined Deloitte UK as a Partner in November 2008 and now leads Deloitte’s Compensation and Benefits practice from their London office. He has 20 years’ experience in advising companies on compensation strategy and equity incentives, having previously been head of executive compensation and leader of Mercer’s human capital business in Western Europe. Stephen has extensive experience of advising companies in the UK, Ireland, US and Asia on all aspects of executive remuneration, including total compensation reviews, long term incentive design and consultation with institutional investors. He has recently provided advice to a number of high profile clients in the FTSE 100 and FTSE 250. Stephen is a qualified actuary and a Fellow of the Institute of Actuaries and the Society of Actuaries in Ireland.
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Conference: Strategy in a changing world
Date Wednesday 2 October and Thursday 3 October Day One: 09.00 – 17:00 Day Two: 09.00 – 16:00
As HR specialists we are expert in systems and processes, tools and techniques and leading edge thinking which helps us with the efficiency of our organisations.
Venue Meliã Castilla Hotel Capitán Haya 43 - 28020 Madrid Spain
Notes: PARC membership includes two places at the conference, excluding travel and accommodation costs. For those that wish to stay at the conference venue, the accommodation cost is £200 + vat per night. We recommend a two night stay. Further details are available on our website at www.parcentre.com
But what do we really know of international politics, the key macro economic trends which will shape the overall environment in which we operate, and the technology changes likely to emerge? If we seriously aspire to be a high performing organisation we must have knowledge and understanding of what is going to be important in the future and how this will help us develop the people strategies likely to deliver business success. Our Madrid conference will provide two outstanding days when we can stand back and review the way our business world may look in five or ten year’s time, through three principal lenses: the global political landscape, the economic context and the impact of technology. Having heard the views of experts, delegates will be able to test the hypotheses and debate in depth the implications for our organisations both in terms of business and people strategies.
Content • The global political landscape: how power is likely to shift over the next decade, where the pressure points will be, and the threats and opportunities arising from these developments. • The economic context: the new global economic superpowers, the future of globalisation and the likely long-term effects of the economic and financial crises of recent years. • The impact of technology: the key technologies which will transform our lives and the social and organisational implications of emergent technologies.
Conference Leaders Michael Portillo worked for the Conservative Party and for government ministers between 1976 and 1983, before entering the House of Commons in 1984. He was a minister for 11 years and had three positions in the Cabinet. He returned to the Commons between 2000 and 2005 where he was Shadow Chancellor and contested the leadership of the party in 2001. Since leaving politics, he has devoted himself to writing and broadcasting. John Kay is one of Britain's leading economists. He is a distinguished academic, a successful businessman, an adviser to companies and governments around the world and an acclaimed columnist. His work is mainly concerned with the application of economics to the analysis of changes in industrial structure and the competitive advantage of individual firms. Gideon Rachman has been a globally respected journalist for over 20 years. Since 2006 he has been the Financial Times' chief foreign affairs columnist. His weekly column on international affairs is regularly one of the most-read features in the FT.
Clockwise from top left: Conference Chairman: Rt Hon Michael Portillo; Conference Leaders: Professor John Kay, Gideon Rachman, Tom Standage, Professor George Yip.
Tom Standage is digital editor at The Economist and oversees the magazine's website (Economist.com) and its mobile-phone, tablet and e-reader editions. Prior to this Tom was business affairs editor, running the back half of the magazine and also previously served as business editor, technology editor and science correspondent. George Yip is Professor of Management and Co-Director of the Centre on China Innovation at China Europe International Business School. He is Co-Executive Editor of Chinese Management Insights. His current research concerns innovation, strategic transformation and managing global customers.
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Research Briefing Date Thursday 21 November 17.00 â€“ 20.00 Venue Thomson Reuters Group plc The Reuters Building, South Colonnade Canary Wharf, London, E14 5EP Speakers To be announced during 2013
Assessing the effectiveness of organisations: what now constitutes good performance? Much of our recent focus has been on the constituents of executive pay. We now look more closely at what constitutes effective organisational performance. Our research paper and meeting will report on and consider the latest thinking and its implications. We return to the issue of corporate performance that we last examined prior to the recession. Have recent experiences, the outlook for coming years and the drivers of future change altered the ways in which organisational performance is viewed? If not, should they? For many years organisations have been under pressure - from shareholders and analysts - to produce high level growth rates, both in profit lines and asset bases. Often the pursuit of such growth has destroyed value. Has the 'value' of steady, sustainable, performance been undermined? What are the most appropriate financial and non-financial indicators of organisational success? Are these short-term or long-term? How do we assess whether performance is sustainable over the longer-term? How do we best measure â€˜human capitalâ€™? Does what represents good performance depend on circumstances? For example, should the performance expectations for an emerging company in a rapidly growing sector be very different from those for an established company in a highly competitive and low growth area? And how do these issues fit with the new BIS reporting requirements that are pointing towards single measures of both performance and reward? Will this exacerbate the tendency to look at performance for all companies against one benchmark? A short research report will be issued prior to the meeting. This will be developed by David Creelman. Meeting speakers will be announced prior to the event.
Biography David Creelman is CEO of Creelman Research and co-founder of Creelman Lambert. He researches and writes on the most critical issues in human capital management. His clients include think-tanks, consultants, academics and organisations in Canada, Japan, the US, the Middle East and the EU. In 1999 David helped launch HR.com as Chief of Content and Research. From 1989 to 1999 he was an HR consultant, first with Hay Management Consultants in Toronto and Kuala Lumpur and then as an internal consultant at Caltex (Chevron). In Kuala Lumpur he also taught reward at the EMBA program at the University of Malaya. Prior to his work in HR, David worked in IT and Finance in Canada and the UK. David has an honours degree in Chemistry & Biochemistry from McMaster University and an MBA from the University of Western Ontario.
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Programme Dinner Date Thursday 5 December Venue The Dorchester Park Lane, London, W1K 1QA
Programme launch and speaker A preview of the forthcoming PARC programme and an opportunity to hear the thoughts of a prominent figure. Our speaker this year is Daniel Finkelstein of The Times. Previous speakers have included: • Vince Cable MP, currently Business Secretary in the Coalition Government • Patricia Hewitt, currently Senior Independent Director and RemCo Chair for BT plc and previously Secretary of State for Trade and Industry and other cabinet posts in the Labour Government • Jack Straw MP, previously Home Secretary, Foreign Secretary, and other cabinet posts in the Labour Government • Michael White, Assistant Editor for Politics of The Guardian.
Biography Daniel Finkelstein is Associate Editor of The Times. He is also their Chief Leader Writer and a weekly political columnist. His blog Comment Central is a personal round up of the best political opinion on the web. Before joining The Times in 2001, he was Director of the Social Market Foundation, then Director of the Conservative Research Department and an adviser to Prime Minister John Major. He subsequently served as an adviser to party leader William Hague and as joint secretary to the shadow cabinet. Daniel graduated from the London School of Economics where he studied economics & politics. He was awarded the OBE in 1997 and was named Political Commentator of the Year at the Editorial Intelligence Comment Awards 2011.
In this report, the Performance and Reward Centre refuses to surrender to pessimism, arguing firstly that the inevitable rise in the age at which people will retire in future can be seen positively. Working longer is the most effective antidote to the pensions problem. Collectively, we need to recognise that the jump in longevity is in itself a benefit to us, and one that needs to be financed.
PARC publications These research reports and meeting reports are available in the memberonly section of our website. Performance Management and High Performance Managing executive performance for organisational results (2008) Developing high-performing organisations: the real roots of sustainable performance (2009) After the recession: what high-performance organisations can do (2010)
Executive Reward and Incentives Performance pay: a recipe for disaster (2008) Executive pay: new challenges, fresh thinking (2008) Rewarding for future success (2009) Keeping up to date with issues in senior executive pay (2009)
The Right Honourable Michael Portillo Commenting on ‘Employee Pension
The contribution of the C&B function in turbulent times (2010)
Provision: Today and Tomorrow’ November 2011
Developing performance incentives and sustaining engagement in a volatile environment (2010)
The future of executive remuneration (2010) Long-term incentives: where should we take them? (2012) Reward retrospection and outlook (2012)
Reward - general Organisational reward and measurement systems (2008) Balancing the compensation equation: cost to the organisation vs value to employees (2009) Rewarding for future success (2009) Reward strategy: strategic tool or defence mechanism? (2011) Reward governance: reviewing for risk (2011) Private Equity – what’s been happening and what can we learn? (2012) Alignment of reward and talent management (2012)
This report is a delight. There is so much wishful and woolly thinking about executive remuneration and this report cuts through it all. Its analysis is clear and cogent, its recommendations a perfect blueprint for reform.
PARC publications continued Share Plans and Wealth Creation Employee wealth creation as a lever for organisation change (2008) Employee equity plans: do they have a future? (2009)
Corporate Governance Corporate Governance: the issues of ownership (2010) Managing Senior Executive Contracts: A Tool for Organisational Change (2010)
Anthony Hilton Commenting on ‘The Future of
Looking from the outside in: investors and performance – evolution or regression (2011)
Executive Remuneration’ March 2010
Retirement / Pensions / Tax Pensions after the Crunch (2009) Employee Pension Provision: today and tomorrow (2011)
Global Issues / Economic Environment The global context: an economic outlook (2011) The outlook for 2012 (2012)
Contacting PARC PARC, One Heddon Street, Mayfair, London W1B 4BD Telephone: +44 (0)20 7432 4565 For information about PARC membership, please contact: Richard Hargreaves on the above telephone number or e-mail: email@example.com For information about PARC meetings, please contact: Eva John-Lewis on the above telephone number or e-mail: firstname.lastname@example.org www.parcentre.com
One Heddon Street, Mayfair, London W1B 4BD Tel: +44 (0)20 7432 4565 Fax: +44 (0)20 7470 7112 email@example.com www.parcentre.com