d r o kf
Po rt fo lio
ic B l l a d n e K
m il.co 26 a 6 5 m 332 @g 78 2 corner ws 0 : e ile lls 7PP Mob : kenda tenay M , E17 n il ur Ema , 22 Co , Londo 1 w Flat amsto th Wal
2011 Kendall Bickford Portfolio 2011.indd 1
HSBC Section 1
Stuart â€“ Andrew Long video
Value of HSBC
Stuart and Richard
Daniel and Marc Thomas
Cash management capabilities
Sanath and Lewis
12 August 2010
Ak N b l P AkzoNobel Presentation t ti
Technology and Connectivity
Daniel and Jane
Peter and Karen
Stuart, Mark Eastwood, Soo Lian and Karen
Soo Lian and Stuart
Stuart , Richard, Lewis, others
Richard, Stuart - Stuart Gulliver video
Kendall Bickford Portfolio 2011.indd 2
12 August 2010 | Slide 2
12 August 2010 | Slide 3
HSBC delivers an optimised transaction banking platform l tf Objective
Benefits from HSBC HSBC’s s Solution
Steamline Account Structure
• Simplify account management by reducing number of accounts and banking relationships • 96% of AkzoNobel locations are covered by y HSBC’s direct p presence • 100% visibility and control of all funds via single internet based platform - HSBCnet
Reduce Costs and Improve Yields Increase Efficiency
• • • •
Key ey Achievements c e e e s
Reduction in bank charges through HSBC’s preferential pricing Reduce internal processing costs through automation and outsourcing Consolidate cash through our in-country liquidity solution Enhance yield through timely investment of consolidated funds
• In depth experience in assisting large multinationals and local corporate in standardising group-wide payments and collections processes. • Free up staff by outsourcing manual tasks • Automate internal functions – payment processing, reporting, reconciliation • Phased Integration of AkzoNobel AkzoNobel’s s ERP ERP’s s to HSBCnet/Connect and Swiftnet
• Full range of services provided regionally to support AkzoNobel’s needs around Global Cash management Relationship • Single g p point of contact in Global Relationship p Manager g supported pp by y Regional g and Model
Best Global Emerging Markets Bank Best Global Emerging Markets Debt House
Kendall Bickford Portfolio 2011.indd 3
12 August 2010 | Slide 7
Global Banking & Markets
• Strong ratings across all agencies for Holdings and Bank Plc • Market capitalisation of US$186 billion (as at 5th August 2010) • 2010 half year results reported Group Profit before Tax USD5.6 billion • Operating in 88 countries with 8 8,000 000 properties and $2.4 trillion in assets
Best Global Bank Best Global Debt House Best Global Transactional Banking House
INTEREST ENHANCEMENT FACILITY (IEF)
AA- negative AA
HSBC Bank Plc
12 August 2010 | Slide 9
LIQUIDITY CAPTURE: up to USD 52m
LIQUIDITY CAPTURE: USD 0m * IEF not offered in these countries
• Significant balance sheet to support priority clients to achieve their strategic objectives Long Term/Senior
• Emerging Markets led and financing focussed
HSBC Holdings Plc
LIQUIDITY CAPTURE: USD 62m (100%)
SRI LANKA *
• Over 100 million customers worldwide entrust HSBC with $1.2 trillion in deposits
Euromoney Awards for Excellence, 2009
FinanceAsia Awards,, 2009
Euromoney Awards for Excellence, 2010
Best International Bond House
Personal Financial Services
• HSBC is one of the most strongly capitalised and liquid banks in the world (Tier 1: 11.5%)
Best Global Sovereign Advisory House Best Global Wealth Management House
Regional Liquidity Overview. C Country/Currency t /C O Overview. i INTEREST OPTIMIZATION FACILITY (IOF) - SINGAPORE
The HSBC Group
Euromoney Awards for Excellence, 2010
HSBC Key Highlights
12 August 2010 | Slide 17
We are committed to delivering an outstanding service, to working closely with you, and to adding value as your business develops.
Barratt Developments plc
PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH Telephone +44 (0) 20 7583 5000 Facsimile +44 (0) 20 7822 4652 Direct Phone +44 (0) 20 7804 5491 Direct Fax +44 (0) 20 7213 2899 pwc.com
Bob Williams Esq Head of Treasury and Corporate Finance Barratt Developments PLC Kent House 1st Floor | 14-17 Market Place London | W1W 8AJ 29 September 2010
Taxation request for proposal
Our ref: TAX/MNW/CT02 Dear Bob Taxation request for proposal I am delighted to attach our response to your request for a proposal to provide various tax services to the Barratt group. Firstly, can I thank you, Jessica, and her team for your frankness in discussions with us. The basis of a good relationship is openness and the direct and constructive nature of our discussions has been immensely helpful. We value our relationship with you and are determined to demonstrate that to you in all aspects of our service.
In the attached document we have set out details of the changes we have made to the team, our ideas for transforming the compliance cycle, our continued focus on adding value and our proposed fees. I hope that when you read our proposal you will recognise the best of our existing team and approach, mixed with some new faces and new ideas. If there is anything which is not clear or about which you would like more information, please do not hesitate to contact me. I look forward to continuing to develop the relationship between Barratt and PwC. Yours sincerely
Mike Welch 3
1:Team We have listened to your feedback and made changes to our team to address your areas of concern, whilst retaining the deep knowledge of the group which will help us best deliver value to you going forward. Mike Welch
Tax Engagement leader
The team selected is conveniently based in Donington Court and we will ensure that the team spends more time on site working together with you. ä Mike will retain overall responsibility for the services that PwC provide to Barratt, and will be available to meet you, David, Jessica and other members of your team, as often as you would like. ä We have introduced Andrew as a locally based partner to support Simon and the wider tax services provided by the Midlands based team. Andrew is responsible for the provision of the firm’s advice to quoted companies in the Midlands and is therefore ideally placed to bring you fresh insight, knowledge of what other PLCs are doing and can ensure the appropriate resource is available to Barratt at all times.
Senior Manager Corporate Tax
Director Indirect tax
Partner Employment tax
Partner tax Function Effectiveness
Senior Manager Corporate tax
Senior Manager Indirect tax
Senior Manager Employment tax
Director Tax Function Effectiveness
ä Paul and Richard will be responsible for carrying out the systems process review and will be instrumental in identifying opportunities for process simplification. Mike has personally selected Paul and Richard not only because of their deep technical knowledge and expertise, but also their track records of delivering significant value on his other clients.
Manager Corporate tax
Manager Indirect tax
ä We have retained the existing VAT, PAYE and Stamp Duty Land Tax team experts as you are familiar with these people and regard them highly. They will be encouraged to focus on identifying and delivering added value.
ä Based on your positive feedback, Simon has been put in charge of the corporation tax team on a day to day basis. Simon will be a good role model for the team. He will also work more closely with you, Jessica and Stephen and be focused on adding value whilst still having oversight of the compliance process. ä Richard will be brought onto the account and will be responsible for the detailed review of the corporation tax computations and provisions. Richard has spent six months on secondment at one of the Midlands leading PLCs helping them improve the efficiency of their tax department, including tax reporting and compliance processes, giving him practical experience of the challenges you may face during the period of change. ä Anna-Maria has a very strong technical corporation tax background and has significant experience of dealing with the corporation tax compliance cycle for PLCs. Anna-Maria also has practical experience of process management and change and therefore will help us deliver an efficient service and drive through process improvements.
pwc © 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. Design by hamilton-brown: hb06574
Kendall Bickford Portfolio 2011.indd 4
lopments Barratt Deve
What will we deliver?
How will we deliver? People
Four Key Outputs : :
Tax Process Improvement Review
processes in Barratt A review of “As Is” tax compliance data audit trail from for key entities, looking at the full aimed at tation, compu tax d finalise data entry to ement such as: identifying opportunities for improv systems to aid • better reports from accounting analysis; analysing and • reduction in time spent by finance reworking data; processes and • use of technology to accelerate ; 2010 improve risk management is and disclosure to • additional simplification of analys be agreed with HMRC; and trail between tax • improved transparency and audit ents and computation analysis, financial statem . system on s transactions in ledger
that equates to Process Maps and Commentary systems review and HMRC documented high level n ntatio docume (BTFO) process
s to processes that Details of immediate change time and cost could save Barratt and PwC
use existing ERP Report on opportunities to ently, or other reporting or systems differ s time and risk technology, to reduce proces
with HMRC a revised Report on opportunities to agree ance disclosure and approach to corporate tax compli efficiency gain and rating risk low for analysis,
Understanding and documenting existing processes
Identifying opportunities for improving processes
What will this cost?
function We have a specialist team of tax nced in effectiveness staff who are experie existing this area. They will work with the tive perspec new a ensure to team PwC tax ge. without wasting historic knowled
ing Our team will examine key time consum process. or risky elements of the end to end ge of They will use experience and knowled data best practice in other clients to review and extraction, analysis and transformation te. opportunities to simplify or automa Nothing …
for We will conduct a two week exercise cing free if the term of a renewed outsour contract is for at least 3 years.
Technology / Process and We have proforma process maps s. standard approaches to these exercise practice best of We have large repositories to ERP / data sets and reports in relation statutory transactional data and managing financial statement preparation. ogy tools Our team has a range of technol to aid analysis, automation or create custom ERP data reports. We have nce agreed revised approaches to complia based analysis and disclosure with HMRC on agreed processes. Nothing …
PwC We would only charge for adopted for technology or custom report design . ongoing use by Barratt staff if required
Barratt Developments plc Taxation request for proposal
Kendall Bickford Portfolio 2011.indd 5
WWF acknowleDgeMents BUSINESS REPORT
heart of Borneo – green Business network
wwf would like to thank Pwc’s global sustainability and climate change team, including partners and staff from indonesia, Malaysia and the uk for their assistance which primarily focused on engaging with businesses in the heart of Borneo and conducting research and analysis.
aBout this rePort The table below suggests 5 initial steps that companies can take along with commitments from WWF to support these.
finD out if You’re in hoB: for many years we’ve beeen dedicated to supporting the heart of Borneo (hoB) Declaration made by the governments of indonesia, Malaysia and Brunei in 2007 to conserve and sustainably manage 22 million hectares of largely intact natural forests.
know Your iMPacts:
we recognize that business plays a vital role, that’s why we’ve established the hoB green Business network to catalyse business action on conservation and sustainable development in hoB. gBn aims to provide tools and support to businesses willing to work towards a sustainable future for hoB. By working together we can secure the forest resources on which your business relies and develop an international reputation for heart of Borneo as a place to do green and sustainable business.
finD the solutions which are right for Your Business:
we aim to work with: Businesses operating, financing or sourcing materials in the hoB: the green Business network is dedicated to communicating the information that your business needs to know; how will the government define and enforce ‘sustainable land use’ in your sector? how can you access carbon financing by improving sustainable management in your concession? what are others in your sector doing on sustainability? we also aim to develop and communicate a range of solutions to sustainable and profitable business development in hoB.
other organisations committed to supporting forests, climate and communities: the green Business network is being initiatied by wwf but it is set up to welcome any and all organisations that can support sustainable business in hoB. You might be a business interested to share financial resources and skills, a consultancy looking to offer sustainability advice, a donor looking to support innovative private sector conservation mechanisms or an ngo also working on sustainable business solutions in hoB. this report and the related strategy for the green Business network are the product of extensive interviews and surveys involving over 80 companies currently operating in and around the hoB focus area. we thank them for their time and we hope that this report, which includes examples of current best practice for sustainable business, can be the start of a dialogue on solutions which bring businesses in the hoB towards truly sustainable practices.
focus on forestrY, PalM oil anD Mining
visit the website wwf.panda.org/borneo/ greenbusinessnetwork where you can see a hoB boundary map and learn about the government commitments and programmes to support sustainable business in hoB.
wwf will keep on-line information on hoB up-to-date and can help you to understand how the hoB Declaration might be relevant for your operations.
wwf supports companies who want to be more sustainable and is setting up the heart of Borneo green Business network to share ideas and best practices with all willing companies. we want to hear from you about what tools and training we could provide to support business further. email: email@example.com.
working with the governMents:
the heart of Borneo is a government lead initiative. Many of you told us that you wanted to engage more with government on potential policy and regulatory changes and new incentive structures which would make it easier for companies to deliver on the hoB Declaration.
wwf is committed to working with companies and governments to support the development of policies and incentives to deliver on the hoB Declaration. let us know where we can help to facilitate bringing private and public sectors together to find solutions which are good for business, society and the environment.
Business solutions: Delivering the heart of Borneo Declaration | 3
in 2007, by signing the heart of Borneo (hoB) Declaration, the three governments of Borneo took a bold step towards conserving the biodiversity and promoting the sustainable use of natural resources and welfare of communities, within this 22 million hectare region. since 2007 the governments have made significant progress on implementation; holding 4 tri-lateral meetings, passing new environmental regulations, developing tri-lateral and national action plans, building capacity on the ground and pursuing practical projects. however, feedback from companies suggests that gaps in enforcement of regulation persist and closing these gaps will be an important step to help incentivise better performance and to maintain the momentum of the hoB initiative.
1,600,000 ha 12,000 ha figure 0.1: extent of forestrY, PalM oil anD coal Mining concessions within hoB with the potential to manage almost 40% of the area within hoB (figure 0.1), businesses in these sectors have a hugely important role to play in the future success of the hoB initiative. closely linked to the hoB initiative there is growing political and public policy momentum behind the concept of a green economy in the region. as a potential source of solutions to environmental challenges and a driver of economic growth and development, the private sector will be central to this hoped-for transition to a green economy in Borneo.
Business solutions: Delivering the heart of Borneo Declaration | 5
Plantations - responsible cultivation areas
Introduction to the Heart of Borneo
species Management Practices
logging - reduced impact logging
Plantations - new generation Plantations
the heart of Borneo Declaration was signed in 2007 under the banner “three countries – one conservation vision”. it commits the governments of Brunei Darussalam, the republic of indonesia, and Malaysia to strive to conserve the biodiversity and promote the sustainable use of natural resources and welfare of communities, within the 22 million hectare region known as the heart of Borneo (hoB) (figure 1.1).
new financial incentives
Driving Demand for sustainable forest Products
Buying environmentally friendly Paper
high conservation value areas
responsible cultivation areas
species Management Practices
improving smallholder Productivity
new financial incentives
Driving Demand for sustainable Palm oil
locating and planning
high conservation value forest
environmental impact assessments
new financial incentives
logging - restoration concessions
financing PalM oil
wwf contact Details
high conservation value forest
chaPter 4: Business solutions for responsible mining in Borneo
locating and planning
chaPter 3: Business solutions for sustainable palm oil in Borneo
locating and planning
Businesses operating in hoB have already taken steps to locate and manage their operations more sustainably. for example, of the 8.6 million ha allocated in concessions within hoB, 651,000 ha (8%) have received certification to the forest stewardship council (fsc) or round table on sustainable Palm oil (rsPo) standards, indicating that they are sustainably managed. however, as the table below demonstrates there is still much more that can be done to promote best practice sustainable business in hoB.
Heart of Borneo
INDONESIA SOUTH KALAMANTAN
figure 1.1: location of hoB The value of the Heart of Borneo: the governments’ Declaration recognises the need for collaboration to conserve and sustainably manage hoB forests becuase of their high value for people’s welfare and the environment. the valuable services which the forests of hoB provide include: clean water supplies, carbon sequestration, biodiversity benefits, economic revenues, and cultural services.
taBle 0.1: Business solutions for the heart of Borneo there are a range of ways that different stakeholders can work towards delivering conservation and sustainable development in hoB and more widely. this report highlights a selection of these, but this is just the start of a process of on-going engagement and strategy development. wwf will be working via the green Business network to help catalyse more action to deliver these and new solutions starting in 2011, the united nations Year of forests.
chaPter 2: Business solutions for sustainable forestry in Borneo
chaPter 1: the heart of Borneo
Building on wwf’s previous work with companies and the results of this engagement exercise, this report provides a number of sector-specific ‘solutions’ to environmental challenges that companies in Borneo are facing. sector
chaPter 1: the heart of Borneo
4 | Business solutions: Delivering the heart of Borneo Declaration
recognising the important role of the private sector, wwf engaged with more than 80 businesses from three key sectors; forestry, palm oil and mining, operating in and around hoB to understand their views on hoB and particular challenges of sustainable production. the results of this engagement exercise highlighted that many companies do see some elements of a business case for more sustainable production but also that a range of challenges and barriers to adopting sustainable practices persist.
the heart of Borneo (hoB) covers 22 million hectares (ha) of trans-boundary equatorial rain forest including some of the most biologically diverse habitats on earth. the forests of hoB provide many benefits to the businesses and communities of Borneo and to the wider world. these include clean water supplies, carbon sequestration, biodiversity benefits, economic revenues, and important cultural services.
there are lots of things which business can wwf’s hoB website will provide information do to support conservation and sustainable on solutions for your industry including: good development. we believe that these solutions practice examples, tools, training, fund raising make good sense for business as well as for opportunities and links to additional resources. the planet. information on solutions for good environmental and social practices is included in chapters 2-4 of this report and is available at wwf.panda.org/borneo/greenbusinessnetwork.
2 | Business solutions: Delivering the heart of Borneo Declaration
the data in this report represents wwf’s best available view of the current situation in the heart of Borneo. we understand that not all of our data sets are complete nor could we hope to represent the views of all businesses in hoB. we have made our best effort and present the data here with the hope that this report can start a constructive discussion between business, ngos and government towards a more sustainable hoB. if you have comments or suggestions for how we can improve data collection and stakeholder engagement in future we want to hear from you. Please email us at firstname.lastname@example.org.
understand the impacts of your industry on wwf will provide a balanced pro-sustainable hoB and the associated risks and opportunities industry view on the impact of the timber, palm of your business. chapters 2-4 of this report oil and mining sectors on the hoB. give more information on both sector specific impacts and views from other companies on the business case for sustainable practices.
share ideas and experience on sustainability with other companies by joining the wwf’s green Business network mail list. email: email@example.com for more information.
visit www.panda.org/borneo/greenbusinessnetwork for more details on how your business can benefit from the green Business network or email: firstname.lastname@example.org to add your details to our distribution list.
Project assistance ProviDeD BY Pwc
recommendations for companies in Borneo
share iDeas anD exPerience:
this report accompanies the launch of heart of Borneo green Business network and is aimed in particular at three key business sectors in hoB: forestry, palm oil and mining.
Business solutions: Delivering the heart of Borneo Declaration
wwf would also like to thank the many companies operating in the mining, forestry and palm oil sectors in Borneo who took the time to take part in interviews, surveys and workshops which helped to inform this report - we look forward to working with you to deliver a sustainable future for Borneo.
At WWF we believe in finding solutions to environmental challenges by working together with business, government and communities.
three countries – one conservation vision
of the 20 major rivers in Borneo, 14 have their source in the mountainous forests of hoB (figure 1.2). rivers are an essential input to industry, agriculture and energy generation; they provide clean drinking water; and they are also an important means of transport in Borneo. water catchment degradation increases the risks of unpredictable floods and droughts, endangers boat transport, and damages industrial, agricultural and domestic supplies. all of these effects can create major economic and social costs for communities and the private and public sectors. conserving the quality of the watersheds in the hoB will help ensure reliable, clean and safe water supplies to rural and urban populations in Borneo. figure 1.2: hoB ProviDes water qualitY Benefits to DownstreaM users
6 | Business solutions: Delivering the heart of Borneo Declaration
Kendall Bickford Portfolio 2011.indd 6
Business solutions: Delivering the heart of Borneo Declaration | 7
8 | Business solutions: Delivering the heart of Borneo Declaration
Business solutions: Delivering the heart of Borneo Declaration | 9
the world’s forests store enormous amounts of carbon in their biomass and fertile soils, these ‘carbon stores’ play a critical role in the regulation of the global climate. however, deforestation and large scale land conversion releases large amounts of carbon into the atmosphere, contributing to global climate change. in Borneo, the impacts of climate change are expected to include; more extreme rainfall patterns, prolonged periods of drought and fires, rises in sea level and coastal flooding, together with more severe el nino and la nina events. there are indications that some of these impacts may already be being felt.1 the forests and peat lands of Borneo are particularly important because they are very effective carbon stores, with an average of 230 tonnes per ha in aboveground biomass, and 2,400 tonnes per ha in belowground peat soils; most of this is released by deforestation and land degradation.2 Deforestation in indonesia and Malaysia currently accounts more than 80% their total carbon emissions, representing more than 2.5gtco2 per year3, this is equivalent to almost 4 times the annual emissions from the global aviation industry.4
Heart of Borneo – Under Pressure Despite the environmental, economic, and social value of the heart of Borneo, it is coming under increasing pressure from a growing population and booming industry. Between 1985 and 2005 Borneo lost an average of 850,000 ha of forest every year.8 figure 1.5 shows the loss of forest cover in Borneo since 1950.
the agreeD PrinciPles anD oBjectives for the hoB initiative are as follows:
The Importance of the private sector in Borneo
● the provision of a sustainable life support system.
central to the principles and objectives of the hoB initiative is the welfare of local communities and the continuing economic and social development of the region. the private sector has a critical role to play in this. indeed the revenues from the exploitation of Borneo’s natural resources have played a central role in the development of the region over the last few decades. the percentage of the population living below the national poverty line in indonesia and Malaysia dropped from around 40% in the 1970’s, to 17.8% in indonesia and 5% in Malaysia, in 2006 and 2007, respectively.9 Despite reductions in poverty the states of Borneo remain some of the poorest in the region, with an estimated 23% of the population living below the poverty line in sabah, Malaysia, for example.10
● attention to socio-cultural economical and ecological functions. ● Partnerships among countries and districts. ● ecological connectivity.
objectives: ● to support sustainable natural resource management within the network of conservation areas and protected areas as well as production forests and other land uses.
the private sector will continue to play an important role in reducing poverty across Borneo. however, as the forests retreat, it is becoming increasingly clear that the current growth path is not sustainable in the long term. not only does the destructive use of natural resources result in the loss of ecosystem services to the detriment of local, national, and international communities, but it focuses the economy on short term gains, potentially at the expense of long term sustainable growth opportunities. without a re-evaluation of the economic growth model in Borneo the prospects for sustained long term poverty reduction may be limited.11
● the implementation of policy and law enforcement that support sustainable management in line with existing multilateral and bilateral agreements.
Borneo’s forests are home to some of the most significant biodiversity on the planet, much of which is found nowhere else in the world. Borneo is home to pygmy elephants, orang-utans, rhinoceros and clouded leopards, more than 350 species of bird, 150 species of reptile and 15,000 flowering plants.5
● the implementation of sustainable development based on scientific methods and local wisdom for improving community welfare. this will include the application of sustainable management, protection, education and training initiatives, as well as other activities relevant to cross boundary management activities, conservation and responsible production in the hoB area.
growing populations and international demand have lead to increased production from the palm oil, forestry and mining industries (amongst others) putting increasing pressure on Borneo’s forests. it is important that the appropriate balance is reached between the values provided to society by standing forests, and the revenues from activities which replace them. to date, the exploitation of Borneo’s natural resources for short term financial returns has not given sufficient consideration to the broader environmental, economic and social implications of this activity. the cost to society of lost biodiversity and ecosystem services has not been visible to key decision makers and this may have contributed to a greater level of extractive activity than is optimal for the long term future of the economy and people of Borneo.
figure 1.3: organ-utans anD the giant corPse flower are founD in Borneo
the area designated as hoB under the Declaration occupies 22 million hectares, 56.6% of which is in indonesia (east, west and central kalimantan), 41.9% in Malaysia (sabah and sarawak), and 1.6% in Brunei Darussalam (58% of the entire area of the country).
figure 1.5: extent of forest cover in Borneo 1950 to 2005
surveys have found over 700 species of trees within 10 hectares, a number greater than the total diversity of tree species in north america. More than 600 new species of animals and plants have been discovered since 1995, indicating just how much remains to be learnt about the diversity of animals and plants found in hoB.6
HEART OF BORNEO
REGIONAL BORDER COUNTRY BORDER
culture and livelihoods:
the economic value of hoB forests is equally significant. hoB represents rich natural resources in the form of timber and other forest products. if these resources are sustainably managed they have the potential to provide continuous and long term revenue streams. sustainable forest management also maintains the flow of ecosystem services, such as water provision, pollination and local climate regulation, to the surrounding areas. these essential natural inputs are crucial for the ongoing development of agriculture and other revenue-generating activities within hoB.
since the Declaration was signeD the three governMents have MaDe significant Progress against their trilateral strategic Plan of action, incluDing via:
The Heart of Borneo Declaration
Maintaining the quality of the natural environment is of paramount importance for the communities living within hoB. Many of these communities directly depend on the forest for food, water, medicine and construction materials. the unique and wild beauty of Borneo’s forests and coastlines also draw tourists from all over the world. in 2009, sabah alone recorded more than 2 million arrivals, generating an estimated usD 1.2 billion in tourism receipts.7
the heart of Borneo initiative was created in response to the observed pressure on Borneo’s forests. first, the governments of Brunei Darussalam, indonesia, and Malaysia held meetings and workshops to develop a common understanding of the principles and objectives of hoB. in 2007 the hoB Declaration was officially signed in Bali, through which the three governments pledged to cooperate in realising the hoB vision. the three governments quickly developed the trilateral strategic Plan of action and indonesia, sabah and Brunei have also developed and are implementing their own national and state action plans to meet their shared vision.
figure 1.4: ManY coMMunities relY on the forest case et al. climate change in indonesia, implications for humans and nature, wwf, 2007; santoso and forner, climate change projections for indonesia, cifor, 2006 Paoli et al. Biodiversity conservation in the reDD, carbon Balance and Management 5:7, 2010 usaiD, indonesia climate change strategies, 2008, in 2007 the aviation industries carbon emissions where 666 million tonnes of co2 equivalent, iata, 2009 5 wwf, Borneo: treasure island at risk, 2005 6 wwf, Borneo’s new world; discovering new species in Borneo, 2010 7 sabah tourism Board, 2010
Business solutions: Delivering the heart of Borneo Declaration | 11
this chapter separately analyses logging of natural forests and plantation forestry. wood fibre from both of these sources also currently supplies the small but growing pulp and paper industry in Borneo and developments in this sector are also reviewed. the first section of this chapter considers the trends in production, how unsustainable practices have lead to a reduction of available raw materials and how this in turn is is changing the industry, and developments in sustainable production. the second part of the chapter looks at the environmental and social challenges and solutions in relation to forestry. the final section draws on the results of our engagement with producers to summarise the business case for sustainable forestry in Borneo.
given that many of the benefits of Borneo’s forests are regional and global we are hopeful that international donors in particular will help to provide support to drive the change that is needed to protect hoB. other financiers also have a part to play through encouraging good practice and putting in place a robust assessment framework in financing the less responsible players. The business case for change Good environmental and social risk management Improve public image of the company Improve relationships with government, NGOs and communities Enhance long term proﬁtability Reduce risk of being targeted by media or activists Create new revenue opportunities Improve access to ﬁnance Achieve competitive advantage Increased productivity / operational efficiencies No business beneﬁt
● in kalimantan, over 1.6 million ha of logging concessions in and around hoB have signed up to work towards sustainable management certified by the forest stewardship council (fsc). the first business in sarawak, ta ann, has also signed up to work towards fsc certification.
● four hoB trilateral meetings driving progress on key trans-boundary issues such as eco-tourism, protected areas and species action plans.
Samarinda Muara Teweh
● the development and launch of a comprehensive feasibility assessment looking at sustainable finance in the heart of Borneo.
wwf, Borneo: treasure island at risk, 2005
after a short briefing on the hoB initiative respondents were asked which stakeholders would have a significant role to play in its delivery. the overwhelming majority felt that the initiative would need to be strongly led by governments (both state and national) and regulators. this message was echoed in industry engagement workshops during which the majority of companies in all sectors indicated that they based their action on environmental and social good practice on government requirements. just over half (51%) felt that the private sector would have a significant role to play while 39% thought that local communities would be important. over a third (36%) saw a significant role for ngos but just 18% thought that donors and financiers would have an important part to play.
● indonesian government use of hoB protected areas as training ‘centres of excellence’ for more than 150 national park management trainees from across the country.
10 | Business solutions: Delivering the heart of Borneo Declaration
● the sabah government has mandated certified sustainable forest management in sabah forest concessions by 2014.
● a trans-boundary peat-lands management project in Brunei as well as a scientific expedition to discover new species and biological resources within hoB.
figure 1.6: the hoB Declaration
● asean and BiMP-eaga leaders summits endorse the hoB Delcaration.
● the development of multi-ministerial governance bodies in the areas of environment, economics and development.
MALAYSIA figure 1.7: Ministers froM Brunei, inDonesia anD MalaYsia after signing the Declaration
SOUTH KALAMANTAN Banjarmasin
in addition, the government of indonesia is currently undertaking a consultation process to designate hoB as a ‘kawasan strategis nasional’ (ksn) or national strategic area (nsa). this is an area whose spatial plan is considered as a national priority. historically this priority could be for reasons of state sovereignty, national security, or for economic, social or cultural reasons. hoB is the first ksn to be proposed for environmental reasons. the hoB ksn will aim to clarify the spatial plan and give clearer guidance for land users as to the definition of ‘conservation and sustainable development’ in their specific area and for their specific industry. the ksn and associated guidance should help business to work together with government to implement sustainable business practices which help to meet the governments goals for the area.
figure 1.8: forestrY, PalM oil anD Mining concessions in anD arounD the heart of Borneo NB: This map provides and illustrative estimate of the location and size of concessions based on publically available information; it is not intended to be a precise representation. cia world fact Book - https://www.cia.gov/library/publications/the-world-factbook/fields/2046.html; unDP, Malaysia Measuring and Monitoring Poverty and inequality, 2007 10 ninth Malaysian Plan 2006-2010 11 Pezzey, sustainable development concepts : an economic analysis, world Bank, 1992; toman, the roles of the environment and natural resources in economic growth analysis, resources for the future, 2003; indonesia: critical Development constraints, asian Development Bank, 2010 9
12 | Business solutions: Delivering the heart of Borneo Declaration
Business solutions: Delivering the heart of Borneo Declaration | 13
chaPter 2 Business solutions for sustainaBle forestrY in Borneo Summary
(n=84, NB: Respondents were asked to ‘select all that apply’)
figure 1.14: what are the Benefits of gooD environMental anD social Practices? respondents were also asked about what benefits they had identified as a result of pursuing good environmental and social practices. the results (figure 1.14) provide some telling insights into the potential business case for sustainable production in Borneo. a large majority (71%) identified good environmental and social risk management as a key reason to adopt good practices. almost equal proportions of respondents thought that adopting sustainable practices would improve the public image of their company (56%) and improve relationships with key stakeholders (55%). nearly half (47%) of respondents felt that pursuing good environmental and social practices enhanced long term profitability. a host of other benefits were also frequently cited including creating new revenue opportunities (32%), improving access to finance (27%) and increasing productivity (24%). companies also identified a number of specific challenges to adopting sustainable practices. the most commonly cited challenges included: a lack of financial support to change practices coupled with a perception that some sustainable practices are high cost and have limited benefits; a lack of knowledge or capacity amongst employees on leading environmental and social practices; and, difficulties obtaining buy-in from key stakeholders, particularly contractors and employees, to undertake sustainable practices. in general the challenges reported were more disparate than the benefits and therefore more difficult to group and report in percentage terms but we have paid particular attention to challenges raised by companies in the solutions sections of chapters 2, 3 and 4. whilst acknowledging the challenges, the results above demonstrate that many companies operating in Borneo do identify at least some elements of a business case for moving to sustainable production. we are hopeful that the analysis and solutions presented in the industry specific chapters of this report will serve to inform and strengthen the business case for sustainable production and crucially, will help to remove some of the perceived barriers to action. the results of our industry engagement exercise heavily informed the structure and content of this report and these are discussed in more detail at a sector level in chapters 2, 3 and 4. the findings of this study have also been passed on to the government hoB working groups and we hope that this report will be the start of increased engagement between business, government and ngos in support of hoB. wwf is also using the results to drive our strategy for the hoB green Business network. the following webpage will keep you up to date on our progress and on heart of Borneo issues which affect business:
The chapters that follow consider the palm oil, mining and forestry sectors in turn; highlighting their economic importance while drawing attention to the potential environmental and social consequences of unchecked expansion. Practical solutions to environmental challenges identified by HoB businesses are offered for producers as well as those sourcing and financing business in HoB. Some concerns can be addressed relatively easily in the confines of this report, but others are more complex and will require on-going engagement between companies, NGOs and regulators to define suitable answers – we look forward to opportunities for this on-going engagement. The solutions offered also consider the important role of investors, consumers and NGO’s in helping to shift the balance towards a profitable yet environmentally and socially sustainable economy.
● the forestry sector manages the most land of any sector operating inside hoB, and therefore has the greatest opportunities for sustainable use, but also the greatest risks in the absence of good practice. ● sustainable logging of natural forests is a good example of how the standing forests can provide long term revenues while maintaining a large proportion of the forests values. ● Plantation area is increasing across Borneo to meet the growing demand for timber, and fibre for paper mills. it is essential that the expansion of mill capacity is matched by commensurate increases in sustainable plantations. critically, to ensure supply meets demand without putting pressure on high conservation value forests, plantations need to be planned, sustainably located and planted long before pulp mills are constructed. ● international demand for sustainable forest products is increasing, wwf’s gftn member companies trade over usD 70 billion of forest products every year, 40% of which is fsc certified, an estimated usD 28 billion of fsc materials. Recommendations ● logging activities should be avoided in the high conservation value forests, and elsewhere reduced impact logging and sustainable forest management should be implemented to minimise environmental impacts. ● Plantations should not replace high conservation value forests, and should instead be cultivated on the available idle land. wwf’s ‘new generation Plantations’ programme can provide the basis for good plantation management.
there are great oPPortunities for sustainaBle forest ManageMent in the hoB
wwf.panda.org/borneo/greenbusinessnetwork 16 | Business solutions: Delivering the heart of Borneo Declaration
Kendall Bickford Portfolio 2011.indd 7
Business solutions: Delivering the heart of Borneo Declaration | 17
18 | Business solutions: Delivering the heart of Borneo Declaration
● investors, traders and consumers should help drive sustainable management through financing and sourcing fsc certified production. More information can be found in the solutions sections: activities
locating and planning
high conservation value forest
logging - restoration concessions
Plantations - responsible cultivation areas
species Management Practices
logging - reduced impact logging
Plantations - new generation Plantations
new financial incentives
Driving Demand for sustainable forest Products
Buying environmentally friendly paper
Business solutions: Delivering the heart of Borneo Declaration | 19
SOCAR / PricewaterhouseCoopers COnTenTS
SOCAR Value Report
• Our work with SOCAR
• Our transformation agenda
• About SOCAR
• Introduction • SAP Financials
• SAP HR
• SAP SD/MM
• SAP GRC
• SAP FSCM
Corporate Performance Management
SOCAR Value Report
SOCAR Value Report
1. OuR WORk WITH SOCAR
SOCAR | Value Report
SOCAR clearly is a cornerstone of the Azerbaijani economy. But SOCAR is not just leading the way in Azerbaijan’s oil and gas industry; it has also pioneered the use of modern management practices in the country. We are proud of the fact that SOCAR have placed their trust in us to support them in their transformation program. The fact that we have a partnership with SOCAR rather than just a set of projects means a lot to us and impacts how we approach this relationship. We know that we are called in to help in the most pressing areas of concern for the management. We know that we will be there long after a certain engagement is over and while helping on other aspects we are always open to provide follow-on advice beyond the formal scope of our previous engagements. While working closely with SOCAR and its people on various engagements we have gained deep practical knowledge and understanding of the specifics of company’s operation, its corporate culture, the way processes work.
We have established good contacts with key people at all levels of the company which allows us to get to the point of issues and find optimal ways to solve them, quickly. Having led the way in development on such complex issues as transition to IFRS, establishment of risk management system, implementation of SAP Business Suite, and others, we in fact have laid the foundation to the future management system of SOCAR, which would meet global best practices and standards. All of this has made us feel confident that we can be a true business partner to SOCAR and provide advise on the areas where we feel the company can be more effective in its operations and management. Gladly we have no choice but make sure that we help SOCAR make a success of this important and ambitious transformation program. We look forward to our continued relationship and to working closely with you in the years to come.
Alexey Bourlatsky Partner
SOCAR | Value Report
Jabar Salamzade Partner
SOCAR | Value Report
SOCAR | Value Report
our transformation agenda The histories of oil and Azerbaijan have been intertwined for centuries. When edwin Drake first struck oil in the uS in 1859, Baku was already well on the way to developing a modern oil industry. SOCAR, led the revitalisation of the country’s oil sector in late 20th century, turning the nation into one of the world’s fastest growing economies. In the past 14 years SOCAR has transformed itself through investments in production and processing infrastructure, cooperation with foreign oil majors, construction of new export routes and entering new markets. SOCAR is one of the biggest oil companies of the world and as for many other large state owned companies, commercial efficiency is just one of the elements that measure our success. We face a number of additional tasks, such as backbone function in generating revenue for the state budget, ensuring employment for a large number of citizens of the country, supporting state run social programs etc. nonetheless, commercial component is still an important element of measuring success of the company. Our mission is to provide maximum benefit from the exploitation of crude and refined hydrocarbon resources on local markets and abroad for the Republic of Azerbaijan and its people. In order to achieve it the top management of the company has started a large scale restructuring program with a main objective – become a major vertically integrated oil and gas company within our region that operates in accordance with best international industry standards.
We have selected to partner with PwC. This has helped us to: Обеспечение уверенности, что в результате в ГНКАР будет реализовано «единое SAP решение» Учет решений (проектных и технических) принятых по одним модулям, при проведении работ по другим Обеспечение контроля качества и передача знаний при проведении работ третьими сторонами Быстрые сроки внедрения за счет использования знаний по уже реализованной функциональности и общей архитектуры системы Обеспечение необходимых настроек и изменений в уже реализованных модулях при интеграции новых модулей Долгосрочное планирование работ и ресурсов с учетом многолетнего сотрудничества
Льготные коммерческие условия, согласованные на длительный срок Одним из ключевых факторов в достижении поставленной цели является модернизация системы управления компании для ее приведения в соответствие с лучшим мировым опытом. Конкурентоспособность и успешность компании в условиях современных реалий напрямую зависит от их способности к быстрому реагированию и успешной адаптации к изменениям внешней среды. Ускорение изменений происходящих в мире и в бизнес среде в частности требуют частого пересмотра бизнес-процессов. В то же время увеличивающиеся объемы накапливаемых данных требуют новых, более совершенных средств управления ими.
Эффективная система управления позволяет высшему руководству компании повысить ее конкурентоспособность и инвестиционную привлекательность. Это достигается за счет оптимизации и стандартизации бизнеспроцессов с использованием лучших мировых практик и обеспечения прозрачности операционной и финансовой деятельности. Ключевым элементом построения эффективной системы управления является применение современных информационных технологий для обеспечения автоматизации процессов. Данный аспект особенно критичен для больших компаний, имеющих разветвленную структуру и сложный набор осуществляемых операций.
We look forward to meeting our objectives that we set for the transformation program, as well as the market challenges together with our partner – PricewaterhouseCoopers. Suleyman Gasimov Vice President on Economics Affairs
Kendall Bickford Portfolio 2011.indd 8
SOCAR | Value Report
About SocAr Chevron is one of the world’s largest integrated energy companies. Headquartered in San Ramon, Calif., we conduct business worldwide. We are engaged in every aspect of the crude oil and natural gas industry, including exploration and production. We trace our earliest roots to an 1879 oil discovery at Pico Canyon, north of Los Angeles, Calif., which led to the formation of the Pacific Coast Oil Co. That company later became Standard Oil Co. of California and, subsequently, Chevron. We took on the name “Chevron” when we acquired Gulf Oil Corp., in 1984, nearly doubling our worldwide proved oil and gas reserves. Our merger with Gulf was at that time the largest in u.S. history. Another major branch of the family tree is The Texas Fuel Company, which was formed in Beaumont, Texas, in 1901. It later became known as The Texas Company and eventually Texaco. In 2001, our two companies merged.
The acquisition of unocal Corporation in 2005 strengthened Chevron’s position as an energy industry leader, increasing our crude oil and natural gas assets around the world. Our diverse and highly skilled global workforce consists of approximately 60,000 employees and about 4,000 service station employees. In 2009, Chevron produced 2.7 million barrels of net oil-equivalent per day, 7 percent higher than in 2008. About 73 percent of that volume occurred outside the united States. Chevron had a global refining capacity of more than 2 million barrels of oil per day at the end of 2009.
Our marketing network supports retail outlets on six continents. And we have invested in 13 power-generating facilities in the united States and Asia. Technology is propelling our growth. We’re focusing on technologies that improve our chances of finding, developing and producing crude oil and natural gas. We also are investing in the development of emerging energy technologies, such as finding better ways to make nonfood-based biofuels, integrating advanced solar technology into our operations and expanding our renewable energy resources.
SOCAR | Value Report
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. Our success is driven by the ingenuity and commitment of our employees and their application of the most innovative technologies in the world. We are involved in virtually every facet of the energy industry. We explore for, produce and transport crude oil and natural gas; refine, market and distribute transportation fuels and other energy products; manufacture and sell petrochemical products; generate power and produce geothermal energy; provide energy efficiency solutions; and develop the energy resources of the future, including biofuels
13. SAP IMPLeMenTATIOn
SOCAR | Value Report
Introduction В рамках проводимых работ по переходу на МСФО, с самого начала было очевидно что в силу значительных информационных требований МСФО по раскрытию информации, уровнем её детализации и необходимости её оперативного представления, ГНКАР потребуется осуществить внедрение современных ИТ систем. Но как и во всех прочих аспектах руководство компании рассматривало данный вопрос не в изоляции, как необходимость внедрения ИТ системы для ведения бухгалтерского учета, а шире и ставила задачи по определению системы которая позволит автоматизировать все ключевые бизнес-процессы организации. SAP Award Architecture SAP roadmap co-development
SOCAR | Value Report
SOCAR | Value Report
John Higgins Partner email@example.com
richard neave Director
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. no representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
Angela cook Senior Associate firstname.lastname@example.org
© 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the united kingdom) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. Design by kendall Bickford
Kendall Bickford Portfolio 2011.indd 9
University of Westminster Scholarships Office 32-38 Wells Street London W1T 3UW
University of Westminster
EDGE OF PAGE
Telephone: +44 (0)20 7911 5000 ext 2349/2338 www.westminster.ac.uk/scholarships
Introduction By Professor Geoffrey E Petts, Vice-Chancellor and Rector The University of Westminster is rightly famed for having the largest scholarship scheme for international students of any UK university� In line with our long standing commitments to provide high quality higher education to all regardless of their ability to pay, we have expanded the scheme in recent years to provide equal expenditure on scholarships for UK/EU students� In the past year our emphasis has been to strengthen links with our local communities� To this end we have developed scholarships for academically excellent students progressing to us from our associate colleges� We have linked up with the London boroughs to provide opportunities for young people leaving care� There are a notoriously low number of care leavers who move into higher education, less than one per cent� We hope that by providing scholarships we can do something to improve this for students who have none of the usual support systems�
Additionally, we have instituted scholarships for students with major disabilities� The thinking behind this is that these students may find it hard to find well paid jobs at the end of their study and the scholarship will keep their debt level to a minimum� These scholarships are, as far as we know, unique to the University of Westminster�
Recent and future developments
We have now developed a comprehensive scholarship scheme; however, there is always room for expansion and we are constantly seeking new partners to help expand the scheme� We welcome a number of new ones this year and, as always, our thanks go to all our partners new and old, without whose assistance we could not provide the opportunities that we do for students from around 80 countries each year�
This has been a busy year especially with the scholarship scheme for UK/EU undergraduates reaching its maximum extent. The international programme has also grown, if less dramatically. We expect to have over 700 students with scholarships at the University in 2008/09. The value of the scheme will top four million this year.
Professor Geoffrey E Petts BSc, PhD, FRGS, FRSA Vice-Chancellor and Rector
Scholarships for UK, EU and International Students 2009/10
Scholarship student Nana Serwaa Yeboah • MSc Applied Microbiology and Biotechnology • Vice-Chancellors' Scholarship 2008/9 • From Ghana
educating for professional life
Richard Jenkins and Maureen Amar Richard Jenkins and Maureen Amar have generously funded the David Faddy Scholarship�
Introduction by Professor Geoffrey Petts, Vice-Chancellor and Rector ������������������������������������� 2
Scolarest are the educational sector of Compass Group and have been running the catering contract at the University of Westminster for over six years� Around 100 members of staff are employed on every site to provide student catering, together with both internal and external hospitality� The University is grateful for their service and the food scholarships they provide for our students�
Recent and future developments ����������������������������� 4 Undergraduate scholarships��������������������������������� 8 Postgraduate scholarships ��������������������������������16
The Tooley and Foster Partnership
PhD scholarships ��������������������������������������������34
The Tooley and Foster Partnership is one of the UK’s longest established architectural practices� The practice operates in a number of areas, including commercial buildings, education, health and care, private residential, affordable housing and communal buildings� They offer a high degree of expertise and are fully committed to providing the best possible professional service throughout all stages of the design and construction processes (www.tooleyfoster.com)�
Scholarships for part-time students ��������������������� 38 Other University of Westminster scholarships ������� 42 January 2010 scholarships ������������������������������ 48 Scholarships partners and donors ���������������������� 52
Scholarships partners and donors
University of Westminster Alumni Association The University of Westminster Alumni Association contributes to the income from the University credit card to provide £2,000 fee reductions for Westminster undergraduate students progressing to a taught Masters degree (www.westminster.ac.uk/alumni)�
University of Westminster Estates and Facilities Department The University of Westminster Estates and Facilities Department has contributed housing scholarships which provide free accommodation for scholarship students in the University halls of residences (www.westminster.ac.uk/estates)�
The University of Westminster is very grateful to its partners and donors in the scholarship programme. Many of the scholarships would not have been possible or as extensive without their involvement and contributions..
University of Westminster Sport and Recreation Department The Sport and Recreation Department has offered 12 free gym memberships to scholarship students (www.westminster.ac.uk/sport)�
Frequently asked questions �������������������������������� 58 Application procedure and presentation guidelines ���������������������������������������64 Undergraduate scholarships application form������������66 Postgraduate scholarships application form �����������������68
EDGE OF PAGE
Kendall Bickford Portfolio 2011.indd 10
St. Helenâ€™s School for Girls
7.30am y Centre) Elstree ommunit Lane (C ey 1. Allum s Herne, Bush Hill Road rry Me ow of 2. Sparr Road/corner on 3. Lond
Coach ro A414
am 5am ham 7.1 ne, Ches h at ridge La 1. Chart Lane, Hyde He ers 2. Keep t on ont Chalf 3. Little ne, Little Chalf wood s La orley 4. Coke Lane, Ch Kennel 5. Dog
1 Elstree 7 8 56 ll Mill Hi re 34 Stanmo 1 2 2 1 M1 4 3 5 5
8 4 5
, nvenient offer a co sport for h routes tran Our coac liable mode of School. re d om fr an safe to and ughter your da
3 2 1
rrect es are co k-up tim stop pic s but may be es are and first Routes e of going to pr ture, as routes e fu th at the tim change in the der to ensure e to iew in or rvice in respons subject rev nt nsta of se under co ssible quality po highest g demand. gin to chan
are services s daily, r coach d 7.30am ch Cost r. Service arges fo 0am an rea of the ch Domestic Bursa can also tween 7.1 d are timed to Details begin be an m the sis and Pick-ups on the route, ailable fro on a termly ba (either av ly on ing ed basis depend 0am. are charg r on a one way â€™s by 8.2 fo imately St. Helen be paid rnoon). at approx 0pm on e g or afte e School d 3.5 mornin ntact th leave th sday an some please co 843222. Coaches nday to Thur on n, le tio ab 3 ma Mo avail g, er infor 4 (0)192 4.10pm aches are e, Ruislip/Ealin For furth Bursar on +4 Late co adlett) /R Elstre tic ey Friday. e/ es sh or m Do tanm eld, Bu routes (S oss/Beaconsfi g the School at bs s Cr vin l clu Gerrard sday, lea in after-schoo r to Thur d fo Monday r girls involve t the School ac , fo nt pm co e 00 ts. as 6. off poin ities. Ple and activ rmation on drop fo more in
Kendall Bickford Portfolio 2011.indd 11
7.1 Anchor) rown & Barnet Street (C Barnet Road et High 1. Barn Drive bus stop, ad a Ro 2. Quint morial, Barnet 3. The Me Station Lane tt 4. Radle Road/Primrose rd 5. Watfo
0am Lane 7.2 abrielle Close) 1. East (G Avenue Park) 2. Forty Way (Country ll, Kingsbury Hi ) 3. Fryent Road/Preston t Church on 4. Kent Road (Methodis on 5. Kent Station ad, lands Ro on 6. Kent Approach/Low w 7. Station on-the-Hill rth Harro Harrows stop, no s), Pinner th r Road bu 8. Pinne reet (Woolwor e St 9. Bridg
Coach Routes Mill Hill
Beacon w Town nsfield Ne se) 7.30am 1. Beaco Waitro (opposite Road s Cross , Gerrard horse 2. Pack ay/Lower Road enue Av sw 3. King Denham bridge at dabout ot Fo 4. un eleys ro 5. Swak hes Ltd
lied by Collins Coac
7.30am Office) ay (Post ear Harvester) (n ll Broadw 1. Mill Hi ne/Salvage Lane tcher La undstre Po 2. Hale e/ us ier Ho 3. Prem Park Station ns 4. Cano Hill 5. Clamp
5am Ealing ven) 7.2 g (The Ha 1. Ealin bout) nd Road /rounda rk) 2. Clevela otch Common ite pool car pa (near Sc ad East (oppos lworths) Woo ip Ro isl ite os Ru ue) pp 3. Road (o r Adrienne Aven ip isl 4. Ru (nea -pass ip Road 5. Ruisl Road/Hayes By ip 6. Ruisl morial h War Me 7. Polis High Street ) ip 8. Ruisl reet junction ar Road St 9. Bury uth of Breakspe (just so
Coach pictured supp
St. Al1 ba A41
re 7.3 ans cent 1. St. Alb Green ell 2. Chisw Wood et 3. Brick
m ll) 7.30a e Clamp Hi tom of ad (bot ase re) idge Ro 1. Uxbr e Road/The Ch ad (RAF Stanmo idg e Ro 2. Uxbr Uxbridg ntry) s Close, 3. Bowl e Road (The Vi Road Drive) idg 4. Uxbr ss Road, London rner of Court co gla 5. Reen Road (opposite The Vine) on ite nd os Lo pp 6. ll (o anmore more Hi e Common, St y) an St 7. ior Th ntley Pr y Drive, 8. Prior Heath (RAF Be ey 9. Bush
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.
The Pwc audiT Value without compromise Attitude – how we think about ourselves For PwC, audit is brand defining. We lead the profession and fight everyday for our right to do so. It is a position we will not give up.
The audit – its inherent value We believe, fundamentally, in the value of the audit. We understand its crucial position in the confidence of investors and the development of a market economy.
Compliance – being its master not its slave We are confident in what we do and don’t seek to over-engineer our audits. We approach compliance with intelligence and innovation, actively seeking new techniques and applying technology where appropriate.
a risK-Based audiT aPProach – evolving wiTh you
The PwC audit will evolve as your business develops. It is flexible so that it responds quickly to changes in your business and risk profile, such as a major acquisition or restructuring. Our ability to deliver a challenging and rigorous audit, which adds value beyond simply checking your financial numbers, a “blinkers off” approach, is based on our understanding of the key value drivers and risks in your business. By focusing on the way you manage your operations, we ensure that our audit observations and recommendations are commercially relevant to your day-to-day activities.
Kendall Bickford Portfolio 2011.indd 12
Getting “under the skin” of your business is at the heart of a PwC audit. This deep knowledge of your business allows us to bring value through the compliance process. We will provide you with recommendations on your control environment, with insights into best practice and a sounding board for day-to-day queries. We will benchmark you against others in your sector and beyond to ensure that we always have open and constructive conversations with you that bring real added value. We operate a risk-focused audit approach which we will always agree with you up front. Our expected FY10/11 audit areas of focus include:
Area of focus Proposed audit approach Revenue Based on our discussions, we believe that recognition your current revenue accounting policy is both appropriate and in line with your peers. We will work with you to review material revenue contracts well before year end to ensure a “no surprises” audit approach. Funding We will review significant funding arrangements ensuring appropriate disclosures and that the entities have sufficient cash resources for going concern sign off. Key We will look at such agreements during the agreements transition process to ensure that they are appropriately accounted for in the financial statements.
Clients – we have no business without them We believe being distinctive is about making a positive difference to our clients. The key is our knowledge and understanding of our clients. We are hungry to know everything we can about how our clients operate.
Business – value drives success Value is integral to our Audits – servicing our clients is in our DNA and value delivered drives our success.
ProacTive, year round, communicaTion
Our year-round involvement, with continuous communication, underpins our “no surprises” audit. We will actively keep communication channels open throughout the year so that significant issues are discussed and resolved as they arise.
We encourage all our audit team members, from the most junior upwards to stand back from the detailed audit work and ask: • how would I do this differently; • how can I make a difference; and • how would I want to be treated if I were being audited? These questions are part of the foundation of our beliefs and allow all of our staff to make a positive contribution to our clients and invest in our own continual improvement as a firm. This approach often leads us to adding significant commercial value to our clients.
The value of TransiTion
A significant area of audit focus will be the judgements made around revenue recognition. Our commitment to you is that we will preagree with you the treatment of all material revenue contracts prior to year end.
Changing advisers is a significant step for any organisation although we believe that changing to PwC will bring real value, fresh ideas and a new perspective to your business. Naturally, our team want to ensure that the period of transition is as smooth as possible. Our ability to deliver a smooth transition is based on developing relationships with key management as quickly as possible; understanding your needs; and rapidly mobilising our staff. We have therefore critically assessed the journey from successful proposal through to the end of the first audit cycle.
In addition, we can review all new material revenue contracts at their final drafting stage and provide real-time input to ensure that you are clear on our views on revenue recognition, particularly if the contract has unusual or non-standard clauses. This has proven popular with some of our current clients and we have been able to demonstrate real value, beyond just routine compliance, through this proactive process.
Debrief on audit proposal process
Review of Grant Thornton working papers
Early audit work focusing on revenue contracts and control environment
‘Residential’ Year end PwC project manage formal resignation and appointment process
Introduction of wider team and planning day followed by social event
Meeting with management to agree deliverables required for year end and optimisation of tax planning
‘Commercial’ ‘Partnership’ Year end Year end Final audit fieldwork and statuatory accounts process
The Companies Act 2006 now requires outgoing auditors to provide access to their audit files to the incoming audit firm. This will allow us to get a significant amount of historic detail (both audit and tax) without the need to consume management’s time. We believe that this will add to the seamless transition process.
one comBined Team – delivering conTinuous suPPorT To Barwood Our Addventure™ approach is unique to PwC and provides a cradle-to-grave joined up methodology delivering value to entrepeneurial business and their shareholders.
• Identify attractive M&A opportunities
• Debt advisory services
• Optimisation of group structure
• Review exit strategy options
• Integrate deal findings into audit planning and delivery
• Identification of post-deal synergies
• Leveraging value from management information and IT systems
• Perform integrated vendor due diligence to provide control over exit process
• Provide effective tax structure that meets both the needs of the corporate and shareholders.
• Top-down, risk focused audit and tax compliance approach
• Tax planning to enhance shareholder value
• Negotiation and review of sale and purchase agreement terms
Commercial, entrepreneurial focus
We are agile, commercial and entrepreneurial. We bring innovation and commercial ideas to you that generate real value.
Kendall Bickford Portfolio 2011.indd 13
Proactive year-round approach
We will be a business partner throughout the year. We do not see our relationship with you only existing between year-end and when accounts are signed.
One firm thinking
We provide practical solutions that put ourselves in your shoes. We operate as a market-leading single team, comprising our audit, tax and advisory specialists.
Responsiveness Both Barwood and PwC are proud of our speed of execution. We commit to responding to all queries within 24 hours.
We are proud of our who we are and our clients tell us that working together allows them to benefit from our brand, for example, in transaction or financing situations.
World class M&A capabilities
Our market leading Addventure™ approach differentiates us from competitors by providing a proven value-driven approach to building a business to maximise valuation on any eventual exit.
We are the only firm to have a dedicated team of sustainability experts focusing on helping our clients to leverage additional value from what may become a significant differentiator in the property sector.
Value through compliance
We will deliver you a “no surprises”, robust audit and tax compliance service providing specific feedback on what we think about the way you run your business.
We provide innovative thought leadership in the Real Estate sector, including conferences, publications, and access to our industry specialists.
Global but local
Our team are based on your doorstep bringing speed of response but supported by expertise from our national and international teams (for example in Dubai).
Leaders in innovative Tax thinking
Tax is a complex and ever-changing challenge. We will continue to bring you the substantial expertise available in our global network, and can offer tax solutions which fit your business and your attitude to tax risk.
Engage customers through social media
What’s going on?
Questions to consider as you read this document
Table of contents
The world’s top brands are using social media as a meaningful way of deepening relationships with their customers. Is it now time for your business to join in?
What’s going on? • The Techlightenment Social Brand Index
How big is social media?
The number of global users Facebook reports they have registered.
• It’s bigger than you think
• Popular platforms
What are the leaders doing?
• Social media and financial services
What makes social media different?
• A Social CRM case study
Why should you care?
What are the implications for your business?
• How to balance security and social networking
How can you get started?
Who manages your social media strategy?
Do you know what your customers are saying about you on Facebook? What about on Twitter? LinkedIn?
Do your employees know what they’re allowed to say (and not say) about your business when they are online?
Do you know how to sustain a meaningful conversation with your customers?
How will you create content that people will find valuable and engaging?
When Facebook announced last summer that it had registered half a billion users around the globe, it resulted in a flurry of publicity and commentary. The media excitement grew exponentially this January when Goldman Sachs invested $450 million in the social networking site – and valued it at a jaw-dropping $50 billion. It is clear that social networking has become one of the dominant cultural phenomena in these digital times. The rapidity of this rise to prominence in everyday life for so many people, as well as its global impact, is remarkable. What had appeared to be simply another Western teenage fad was, in fact, being embraced by many different societies and groups of people around the world.
Might this 500 million milestone and $50 billion valuation be the warning shot for organisations that had previously considered social media an irrelevance? Is it now time for all businesses to start thinking about its potential impact?
As you might expect, the picture the Social Brand Index paints is one of rapid, dynamic change. Top brands swap places, often many times a day. What is also interesting to see is the gap between the leading global brands that have developed a strategy and those that remain uncertain about what the social media phenomenon means for them. In the rest of this article we explain what social media is and how it differs from, and is similar to, traditional marketing and communication media. We look at some of the reasons the leaders are successful and what lessons they may offer. We also explore the potential value of social media for business and most importantly, how to get started and successfully grow in this dynamic, burgeoning marketplace.
A number of leading organisations have already recognised the importance of engaging their customers through social media. Firms such as BMW, Coca Cola and Starbucks have been using YouTube, Facebook, Twitter and other social media mechanisms to grow awareness of their brand and products and to build customer loyalty. It’s not surprising, then, to see these same organisations and other early adopters feature prominently in a new Social Brand Index, launched January 2011 by PwC Alliance Partner Techlightenment. For the first time, it’s possible to see listed – from real time data feeds, rather than subjective historical assessment – the brands that have been the most successful in securing customer engagement through social media.
Anthony van der Hoek, Director of Strategy and Business Solutions at a Coca-Cola Company global team, puts it this way:
How big is social media?
It takes years, not weeks, to embed consumer conversations in an organisation. Companies need to address this now or it will be a huge challenge to catch up.
To understand the social media movement it’s necessary to understand the most popular platforms for user engagement and how they differ.
– ‘How Consumer Conversations Will Transform Business’, a PwC Publication.
What are the leaders doing?
500,000,000 The number of global users Facebook reports they have registered. It’s bigger than you think. The speed, breadth, depth and scope of social media penetration is astonishing. It took 13 years for television to reach a worldwide audience of 50 million. It took Facebook three years; and just another four years to reach over half a billion Facebook users worldwide.
Social media advertising spend will increase 400% by the year 2014. – Forrester
Google UK, BCG
The average UK user spent nearly an entire 24 hour day on the internet in April 2010.
One out of every five minutes online is spent on social media related sites. – Neilsen
Launched in 2004 and in July 2010 it reached the 500 million user mark, a doubling of the user base in a year. It is the most widely used social network by worldwide active users. As the name suggests Facebook’s initial purpose was to facilitate the sharing of photographs amongst friends. It has, however, expanded into a platform for social networking, providing blogging, real-time chat, application development, sharing and Q&A functionality. Facebook has now overtaken Google as the most visited site in the world and is a major platform for communicating with customers.
Launched in 2003 LinkedIn is often considered the professional face of social networking. It has 80 million registered users and primarily provides ‘address book’ style functionality for business users. It is, however, also used as a site to post job opportunities and for job seekers to apply for them. Over the last few years LinkedIn has added a number of new Facebook-like features such as status updates, groups, company ‘following,’ LinkedIn Answers and LinkedIn polls to increase the usage of the platform.
Launched in 2006, Twitter provided a similar ‘microblogging’ service to Facebook’s status updates in allowing users to create ‘tweets’ of 140 characters or less. These tweets are available to all users of Twitter and users can subscribe or ‘follow’ a particular user’s twitter feed. A number of celebrities have taken to tweeting and are being followed by their fan base (Lady Gaga currently has 7.1m followers). The growth in tweets has been astounding, going from 60,000 a day in March 2007 to 95 million tweets a day in September 2010 (Source: twitter.com)
There are number of companies leading the way with social media initiatives that achieve positive results in customer engagement. These businesses have either deliberately or organically invested in platforms that are aligned with their strategies and assets. Brands with a great deal of media content (such as Disney and BMW) tend to invest in YouTube more than those for whom community and functionality are paramount (such as Starbucks and Coca-Cola). 3
– ‘The Connected Kingdom’
Facebook is, in almost every case, the platform that attracts the greatest investment, while Twitter is a close third (and in some industries, first; 65% of financial services firms use Twitter).
Launched in 2004 by Google, Orkut initially had a fast take up in the United States. Today, however its primary user base is in Brazil and India, where 90% of its users reside. Unlike Facebook, Orkut allows any user profile to be visible by any other user, rather than the need to ‘friend’ someone.
Founded in February 2005, YouTube allows people to search for, watch and share videos. It also provides a forum for people to comment and interact around its content. YouTube reports more than 2 billion views per day from around the world, with 24 hours of video uploaded every minute, and a broad demographic (18-54 year-olds) commenting on more than 50% of the content.
51.com, renren.com, QQ, kaixin001.com
Regardless of the platform focus, putting user value before network value – that is, creating an experience that begins with user needs rather than business needs – is the key to a social media effort that is vibrant and active rather than barren and stale.
A number of Chinese social networking sites are popular within China, with incredible user statistics for a single country. 51.com has over 160 million users, with over 38.5 million logging in each month. The lack of accessibility to Facebook, Twitter and YouTube has potentially driven this growth.
Kendall Bickford Portfolio 2011.indd 14
Starbucks are actively engaging in social media and are talking with their customers through a number of different channels. With their 700,000 followers on Twitter they are answering questions, retweeting what people are saying about the brand and engaging in real conversations. To their 18 million Facebook fans they upload content to their fan page but also engage with their customers by allowing management of the customer’s Starbucks card (e.g. checking balance, reloading) and even allowing users to upload credit to other customers’ cards.
One of the pioneers of direct marketing, United Services Automobile Association (USAA), conducts most of its business over the Internet or telephone. It currently maintains a fan page on Facebook with over 122,000 fans. This page offers USAA products and services, an eligibility application, and useful tips. You can also access and manage a USAA account directly on Facebook through a built-in application with enhanced security.
A word about social media and financial services According to Datamonitor’s ‘Social Media in Financial Services’ study, about a third of consumers globally are using online resources to get financial advice in the form of price comparisons, calculators, blogs and online reviews. This data was collected in a 2009 survey and excepts Japan, France and Spain at that time, but social media has continued to grow as a viable channel since then -- bolstered by consumers’ preference for peer recommendations over traditional marketing propositions. This means that the power of the messaging about financial services has shifted to the customers, who have a multitude of ways to express their opinions about products and services. According to a Forrester report from September 2010 (‘Social Media Marketing for Financial Services’) most financial services have at least partially explored social media, but haven’t fully embraced it in the manner that American Express and USAA have.
We believe that financial services firms can create fervent customers by using social media to have meaningful conversations with their clientele. They can then use that dialogue to inform and drive their offerings and propositions.
That said, any such strategy will require careful planning, as well as knowledgable guidance from regulators and compliance officers.
As a traditional top 5 brand Coca-Cola would be expected to have a strong presence in social media, and with nearly 20 million fans it is one of the most popular in the world. The page was originally created by fans and then adopted by Coca-Cola and used to create the official site. Although on first look it seems a normal fan page, Coca-Cola have engaged customers by allowing user generated content on the site including photos and posts. CocaCola has also embedded social media within the organisation and last year launched their social media strategy. This includes ensuring that ‘Certified Online Spokespeople’ complete a certification programme prior to representing the company online and encourages every employee to engage in social media and report both positive and negative comments.
American Express American Express’ OPEN Forum is a site which gives member small businesses the tools to communicate and collaborate. The Connectodex™ links member businesses seeking services to those supplying services; filterable by industry, geography and size. The Idea Hub offers insights and perspectives from small business experts, in an environment that encourages feedback and interaction, while articles, videos, discussion boards and event listings highlight case studies and areas of interest to the member community.
ITV Live The new interactive ITV portal combines the strengths of online TV streaming with the popularity of social networks. Users can engage in live chat and discuss their favourite shows in real time, using their Facebook credentials. According to ITV, the application is the perfect dual-screen companion to ITV Shows. Launched during the 2010 FIFA World Cup, ITV Live achieved two million users within four weeks by providing additional incentives such as direct chat with celebrities, factoids, etc.
A social CRM case study 1. Lorizzle ipsum brizzle sizzle amet, consectetizzle dizzle. Yippiyo fo shizzle my nizzle velizzle, i saw beyonces tizzles and my pizzle went crizzle volutpizzle, suscipizzle quizzle, gravida vel, fizzle. Ma nizzle egizzle cool. Sizzle erizzle. 2. Yippiyo at dolizzle dapibizzle away tempizzle tempor. Mauris my shizz nibh izzle turpizzle. Gangster izzle tortor. Pellentesque eleifend rhoncizzle nisi. In hizzle we gonna chung platea dictumst. Dang dapibus. Brizzle tellizzle ass, yo mamma eu, pot ac, eleifend vitae, nunc. Fo suscipizzle.
What makes social media different from other ways of engaging with customers?
4. Vivamus ullamcorper, get down get down izzle gangsta check out this, nibh nunc ultricies i’m in the shizzle, izzle luctus leo elit fo shizzle dolizzle. Maurizzle rizzle, orci vizzle volutpat consectetuer, sizzle augue luctizzle nisi, stuff bibendizzle enim fizzle ut nisl.
5. Nullizzle boom shackalack velizzle check it out orci check it out ghetto. Phasellus mah nizzle bling bling. Curabitizzle non velit vel fizzle facilisizzle. Maecenas sapizzle shiz, iaculizzle bizzle, molestie go to hizzle, egestas a, erizzle. Fo shizzle vitae stuff quizzle nibh bibendum consequat. Hizzle pulvinizzle away nizzle.
6. Fo shizzle erat volutpizzle. Bow wow wow izzle leo at fo pretizzle faucibus. Cras yo mamma doggy boofron dui boom shackalack ultricizzle. Ut nisl. Dope izzle urna. Integizzle crunk gizzle cool mi.
Traditional marketing channels broadcast in one direction and are usually only targeted in a general way. Social media, when done well, creates dialogue with a very specific and large audience – one person at a time.
You have no control (or at least only a little) One of the major trends that social media is accelerating is the shift of control from companies to customers and their social communities. Whether a company chooses to have a social media strategy or not, the reality is, your customers are already engaging in social media and are talking about your company.
Social media also runs across all other channels – whether web, mobile, phone or physical stores. This is a highly connected community where the most unlikely contributors can be celebrities and other social influencers. Customers don’t have to come to you anymore. Your customers take their social media applications with them wherever they go, whether it’s to your store, on the phone to your call centre, linked to your website or on their Xbox.
Traditional broadcast methods of disseminating messaging are being circumvented by emerging social media channels. In an era when more and more customers are basing their purchasing decisions on peer interaction, the role of advertising, branding, marketing, PR and other traditional means of communications need to be re-evaluated.
In order to truly exploit the power of social media for your business, you need to understand how this new channel differs from the more traditional channels.
3. Etizzle laoreet urna izzle nisl. I saw beyonces tizzles and my pizzle went crizzle quis arcu. Maecenas pulvinar, ipsum check it out malesuada scelerisque, nulla yo euismod yippiyo, izzle stuff metus shizzlin dizzle izzle augue.
Acknowledge that you are no longer in control of your business’ message - go to your customers’ social sites, listen to their discussions, respond and provide the customised, value-adding content that they want.
It’s a conversation The expectations of those who engage in social networks are that the communication will be two-way; in other words, it will be a conversation. Authenticity, transparency and honesty are mandatory characteristics of this conversation and their absence has the potential to cause great harm. Attempts to use social media networks as vehicles for glib PR or marketing invariably backfire. Those in your organisation tasked with engaging with customers via social media (i.e. everyone) must be empowered to speak openly and genuinely (but make sure you remember to put in place the policies and procedures to manage the interaction – see the Information Security sidebar). Listening, rather than broadcasting marketing messages, is not something that comes naturally to most businesses; but if you want to harness the power of social networks, it’s a necessary first step.
It gives your customers a job Matt Hobbs Partner +44 (0) 20 7213 1565 email@example.com
Social media puts the world’s largest focus group at your disposal. The idea of co-creating content, service offerings or even products – with customers, employees or business partners – offers huge potential for business. You don’t need to be the one to do the research or create the innovation in order to benefit from it, as long as the ideas are freely given, of course.
Sean Mahdi Director +44 (0) 20 7213 5564 firstname.lastname@example.org
And you’d be surprised at how willing people are to freely give their ideas when given a platform for sharing and incentive for doing so. In the UK, Direct Line has received great engagement from customers, who have actively shared their ideas on Facebook for the development of Direct Line’s new iPhone app.
Another case study 1. Lorizzle ipsum brizzle sizzle amet, consectetizzle dizzle. Yippiyo fo shizzle my nizzle velizzle, i saw beyonces tizzles and my pizzle went crizzle volutpizzle, suscipizzle quizzle, gravida vel, fizzle. Ma nizzle egizzle cool. Sizzle erizzle. 2. Yippiyo at dolizzle dapibizzle away tempizzle tempor. Mauris my shizz nibh izzle turpizzle. Gangster izzle tortor. Pellentesque eleifend rhoncizzle nisi. In hizzle we gonna chung platea dictumst. Dang dapibus. Brizzle tellizzle ass, yo mamma eu, pot ac, eleifend vitae, nunc. Fo suscipizzle.
Why should you care? (Here are five good reasons.) 1
It’s where your customers are gathering If you knew that members of your target customer segments spent time in a particular place, wouldn’t it make sense to set up a store front there - or at least post a billboard? Half of the 29 million Facebook subscribers in the UK check their page at least once a day. Are you there? If you aren’t, do you have a good reason not to be?
Kendall Bickford Portfolio 2011.indd 15
Conversations about your business are happening – with or without you It’s not a question of whether they’re talking about you, it’s a question of whether you’re paying attention and participating. What you might think of as a potential threat to your brand, may actually be an opportunity to build loyalty and advocacy among your customers and employees. US online shoes and clothing retailer Zappos’ CEO Tony Hsieh believes that these new channels give everyone a voice and what they say can reach millions. Zappos’ staff are encouraged to use Twitter to engage with customers and to treat every customer interaction as an opportunity to create loyalty – not necessarily to make a sale. The value of this ‘earned’ PR is difficult to estimate, but Zappos’ success is not; sales have grown from $1.6 million in 2000 to $1 billion in 2008.
Your brand is being circumvented According to Forrester, more than 33% of European online consumers evaluate and compare the things they want to buy based on what their peers are saying on social platforms; and not based on the messages they receive from your business. Offering mechanisms for your customers to connect with each other to facilitate evaluation, and then participating actively in those conversations, can put you back in the loop. This will give you some influence on purchasing decisions and create customer loyalty (European Social Retail Is A Work In Progress by Patti Freeman Evans, Lauriane Camus 15/07/10).
3. Etizzle laoreet urna izzle nisl. I saw beyonces tizzles and my pizzle went crizzle quis arcu. Maecenas pulvinar, ipsum check it out malesuada scelerisque, nulla yo euismod yippiyo, izzle stuff metus shizzlin dizzle izzle augue. 4. Vivamus ullamcorper, get down get down izzle gangsta check out this, nibh nunc ultricies i’m in the shizzle, izzle luctus leo elit fo shizzle dolizzle. Maurizzle rizzle, orci vizzle volutpat consectetuer, sizzle augue luctizzle nisi, stuff bibendizzle enim fizzle ut nisl.
It’s the world’s largest focus group Social media offers the potential of highly personalised, one-to-one interactions with your customers, and leads to much better interaction rates than traditional marketing efforts deliver. If what you’re selling is not meeting customer needs or expectations, there is no better way to become immediately aware of the shortcomings. It also expedites customer input into the product development cycle. Build the platform, give your customers a reason to participate, and then listen to what they say. This sounds easier than it is, because social media is very different to other engagement channels.
5. Nullizzle boom shackalack velizzle check it out orci check it out ghetto. Phasellus mah nizzle bling bling. Curabitizzle non velit vel fizzle facilisizzle. Maecenas sapizzle shiz, iaculizzle bizzle, molestie go to hizzle, egestas a, erizzle. Fo shizzle vitae stuff quizzle nibh bibendum consequat. Hizzle pulvinizzle away nizzle. 6. Fo shizzle erat volutpizzle. Bow wow wow izzle leo at fo pretizzle faucibus. Cras yo mamma doggy boofron dui boom shackalack ultricizzle. Ut nisl. Dope izzle urna. Integizzle crunk gizzle cool mi.
How can you get started ...
Start by listening You need to have a Regardless of your overall strategy and strategy. As we have objectives, almost any social media seen, social media offers initiative should begin by listening tremendous opportunities to what your customers are already saying about you on social media. for firms to engage with Fortunately, it’s never been easier to their customers and drive capture this information: online tools provide terrific opportunities to gain real business benefits, but deep insight into what your customers think, want, need, and expect, that engagement has to making it possible to directly access be earned. But how do actual behaviour, likes and needs. Analytical listening dashboards can you begin?
It can be the most effective way to reach your customers For a surprising breadth of demographic segments, engagement via social media can be the most effective way of moving customers up the value chain from initial awareness to passionate evangelism. According to a report by Chadwick, Martin & Bailey, 67% of social media users are more likely to buy a brand they follow on Twitter, while 79% are more likely to recommend a brand they follow on Twitter.
provide an overview of your position in the marketplace and provide drill downs to individual tweets, Facebook updates, message board comments and blog posts. This offers a potentially unparalleled level of insight into your brand and your customers’ perspectives on it.
Techlightenment has found that, compared to a generic display ad, a micro-targeted social media message (to a more specifically chosen audience) will attract 2x - 4x the responses. The idea is to create many smaller placements and have each visible only to the people most likely to interact with it. Taking it a level deeper, Techlightenment found that responses to ‘micro-messaging’ – that is, with the text carefully crafted to be specifically meaningful to the chosen target audience yields a 5x to 10x increase in responses. Increases of this magnitude clearly justify an investment in the channel, but it’s not the only reason to participate. Digital Transformation
Start small You don’t have to get everything ‘complete’ at the beginning. Whilst it’s important to get the basics right (avoiding the obvious pitfalls), it is just as important to learn and iterate quickly. Honesty and transparency will help to build your customers’ trust, so that when mistakes do get made, you are more likely to get the chance to redeem yourself!
Deliver on your brand values It’s not enough to just be out there. Your activities within the social media space need to be appropriate to your brand. Engaging through social media places an onus on brand integrity and authenticity; many firms will need to re-assess and understand their key brand attributes in order to participate effectively. A strategy is required that fully considers the appropriate use of different social media channels to match your brand attributes and properly reflects the value your brand delivers for your customers. This is a prerequisite for web designs, web applications and content provisions.
Create value for your customers It’s not realistic to think that your customers will participate in a community if it offers no obvious and immediate benefit to them. Sometimes called the ‘Del.icio.us Lesson’ (after Joshua Porter’s 2006 essay (http:// bokardo.com/archives/the-deliciouslesson/), this principle states simply that the value to those in the network must precede the value to the network. Think about what assets you have that your customers might find useful, and allow access to this resource - it could be data, it could be connectivity to others in the network, it could be an opportunity to share - without preconditions (registration, payment or subscription). Soon you’ll find community activity springing up around this ‘social object.’ Interestingly, one of the main reasons customers site for ‘friending’ a corporate Facebook page is to get access to special offers and sales discounts.
Make it relevant
Social media may be a low cost way to communicate and engage with your customers, but it takes effort to make it work. Organise discussion forums, chats and Q&A sections on their media channels, to make it easy for customers to share their views and provide feedback (hopefully good as well as bad) about your products and services.
Having nothing relevant to say is a big turn off for consumers. To maintain customer interest and a steady supply of repeat visits, your social media channels must be updated frequently with the latest breaking news, content and features. This means a social media team should be established to manage social communications and content. Customers’ feedback and questions about the company products and services must be answered quickly if the site is not to suffer negative feedback or the ignominy of being ignored by consumers.
Make the case Undertaking a social media initiative is no different from any other business undertaking, in that it’s essential to be able to articulate a compelling case and demonstrate business benefit. Often the benefits are of the ‘softer’ kind: brand building, awareness and advocacy; but it’s still possible to calculate ROI through qualitative and quantitative customer feedback and increasingly through end-to-end tracking of social media campaigns.
Keep it exciting To attract customers, you need to find ways of making your social media channel interesting and exciting. For example, use videos and photographs effectively to deliver interesting facts about products and services, provide tips on use and show real customer highlight clips. Use competitions, games and blogs to get people interacting with your social site; consider providing additional, unique services to customers through social media channels. For example, Starbucks allows its customer to manage their Starbucks cards on Facebook.
Keep it accurate Customers want to know correct information about the company in which they are interested. Keep the information posted about your company products, activities and promotions accurate and up to date if you want people to visit. You will need to develop a social media policy, with a risk and control assessment, in order to manage the accuracy of the information posted on your social sites by your company and to respond to the information (hopefully) posted there by your customers.
Keep listening! If something negative occurs, you’ll be well-positioned to respond quickly and meaningfully. More importantly, you will now have real-time access to behaviour and dialogue that can greatly enhance your current understanding of your customers, as well as the ability to track the benefits to your business.
... and keep momentum? 13
Investec Asset Management
em Ever y m
ls fessiona ent pro ion investm municat e with all on, com structur innovati d team to facilitate Focuse le location at a sing entation lem ons regi id imp and rap ectors, not ent by Super-S al investm rld view drives glob Wo r research ent er-Secto all research assessm Sup uage for e and risk mon lang per spectiv y is com making hodolog ision , met dec t erience agemen 4Factor stry exp tfolio man years indu t and por rages 15 d for clien team ave pensate stment com Inve and sured by and is mea ess ent succ investm
ng and the stro ities for pportun vative o f o s s: World’ t the inno t proces phy tha estmen ent philoso ble and The inv investm the nim finance ng, intuitive
S tr a
R e p re s e n t ativeness
s L o s si o n aver
o Portfoli manager
roach. ctor app
on the 4Fa
Excess ance perform target*
ber m Num Maximu holdings tracking error 130
g Emergin Submarkets Supersector Position range sector limits** limits** limits** 10% 5% Neutral 2.5%
20% n/a n/a 5% 2%-3% 4Factor m 50-70 20% 4Factor Global Tea rld 10% n/a Equity MSCI Wo n/a Global 5% 3%-5% Core b 100 Jaco Max 10% 4Factor Robbins rld 10% 5% net Equity MSCI Wo 8% net Global 2.5% ive 3%-5% , long Aggress k Mar 110-150 rt, Net n 15% 4Factor Breedo rld 8% 10-50 sho % 5% Equity 100 MSCI Wo 8% Global position 2.5% c 3%-5 % d Strategi James Han 80-100 n/a 4Factor E 7% n/a MSCI EAF 10% Global 3% 5% n 2%nsio d/ Exte James Han 70 – 90 n/a 8% 4Factor Jonathan 5% ional MSCI AC n/a Internat Adams ex 3% 2-3% Asia (EAFE) Greg 45 - 65 Japan Asia t 3-7% 4Factor Kuhner TOPIX ex-Japan 2-3% Philip Japan me 4Factor Whitto rld 7%
fi d e
Me acc n t a l o u n ti n
g in a
ou on se ey
ector Super-S Team Research
lco We we
ent succ gement ts’ investm set Mana ely on clien exclusiv 15 years re than ls focused t for mo professiona agemen stment senior man Inve y founding creativit tinuity of vation and inno Con ous of continu spective Culture ent per ance investm ent perform Global investm ion with Obsess
gement t firm with agemen set Mana ent man ents, investm al investm rnative t is a glob l Equity, and alte agemen Regiona al long only Asset Man Global and within the Investec h tradition ldwide. capabilities across bot or billion wor se maj gnized erti $64 exp are reco imately ment are Manage kets, and g approx ti-Asset ents: tier mar managin stm Mul fron inve st me and rging and rnative Fixed Inco return. Mo el in alte eer s in eme lute exc pion We al abso are ss Africa. employ firm. We s, and glob talent to sting acro resource ent inve & in s stm ditie experts nced inve commo clients. experie y, energy, s of our r highly currenc interest empowe the best ntly, we isions in importa dec e s and mak resource
inde of fees basis vs *Gross are on +/n limits **Positio
are es that Compani n average tha urn on cheaper flow ret to cash system according valuation nt me invest
n Better tha ue val Average
ural Behavio biases
rent ns of cur t are expectatio anies tha Improving ty. Comp sts profitabili ir profit foreca having the s by the upward d ise m rev nity commu analytical
ality rage Qu than Ave Higher ated have cre es that Compani reholders their sha value for t in the pas
Emotiona l re
poss Alert to
ns tio ep ec
, Research Head of TM Equity 4Factor
Head of y Equit Global
d Risk an Head of search Quant Re
panies ed com ely valu ceiving , attractiv at are re ity th al ce qu an k for high rating perform We loo pe o g provin tention. with im vestor at eaesisng in crgi ine trat
bal S ctor Glo
rives ology d ntal analysis method e 4Factor ve and Fundam ti Quantita e of risks
ratios and rmation sons? specific active info The rea efits of alpha, attr ent ben and t excess investm gments Consisten n in the litative jud ticipatio qua ent par of t investm reliable . The bes to discern d cess segments t use Pro rke r ma es are 4Facto ctions, e disciplin offer the ativ sele ity ntit We s. qua risk bal equ e so ties and uding glo have don opportuni tegies, incl tfolios, and ltiple stra ional por across mu and reg strategies 0. extension 200 e ly sinc king. successful ision ma dec in biases mately creates may ulti an nature isions and ieve hum ent dec We bel nagement investm uld active ma ses affect nce. An biases sho ma se for These bia the per ing ental to at exploit be detrim targeted stor. specifically term inve process the long reward ultimately nal and itio trad best of ory bines the nce the cess com cks itional fina ctor pro y and sto From trad Our 4Fa theory. y strateg nce to e compan ral finance avioral fina behavio gs: effectiv use beh regret. at two thin value. We ding and we look t to fair her oun ing, at a disc as anchor trading ies such enc ffici ine exploit
d estors anors only vis utional inv For institonal financial ad professi
ance of perform drivers als. In Technic ses on four re amics and lysis focu vide mo ation, Dyn ctor ana should pro tegy, Valu Our 4Fa factors alpha: Stra these four to capture believe tion, we bina com ance. to perform moving , stable out ints nced constra or style ly experie no size Our high cess has approach nistically. ctor pro 4Factor opportu The 4Fa and our didates in depth, ential can arch. didates alpha pot ntal rese es all can ame arch fund team rese tive and quantita h bot utilizes
ral stro behavio from a mits itional and Flows that per process rates trad incorpo sparent ed, tran transaction ry stock s a disciplin ids s for eve Utilize which avo the reason criteria, on ring ity clar l sco s buy/sel s rigorou Follow responses s nal risk e otio riat em and es approp focused hip of a es and tak ng leaders Assess the stro team efits from Ben nagement nced ma experie
awing rtise dr rs a of expe utional investo ecial are tit One sp erest from ins global int tor Process ac is our 4F
mitted r – com
ed, sk , motivat
hy and philosop
th. ce streng re Share pri sha es whose Compani nding upwards tre prices are
, ity of risk ry possibil on ant to eve r focus are vigil riately. Ou isions. We os approp sell dec por tfoli n. buy and e inceptio to position lysis and tegies sinc risks and rk for ana Stra and ewo erst ctor the 4Fa sistent fram techniques to und ratios in ver y con and rmation ere to a metrics n high info We adh ed tools, to maintai ng advanc bled us employi t has ena agemen risk man
y to ever Attentive ccess tegy’s su ent stra investm
tlook arkeecttiveoonusome ofrkethet turmoil Maxg’sgivm rsp es his pe within current ma Max Kin tors hiding fac positive
Kendall Bickford Portfolio 2011.indd 16
ws • A ll the vie
orld d the w
with cus d Q&A’s FunecdGSinF Glofobal StrateergicGeIncy Vaomn ePitFuntius Wern Invest pford and John Sto
funds Strategic y Global portfolio tells us wh of your clients Garland Richard a core allocation Page be should
Tranquilstate, Professional Grooming Parlour
d Q&Aâ€™s ome Fun s ategic Inc lobal Str er Gey Van Pittiu and Wern
Kendall Bickford Portfolio 2011.indd 17
Flat 1, 22 Courtenay Mews Walthamstow, London E17 7PP 5626 2 3 3 2 078
k en d allsc orner@ Ca gmail.com n tr av el fo r wo rk
Kendall Bickford Portfolio 2011.indd 18
Kendall Bickford Portfolio 2011.indd 19
and m player a e t t a e r F G tion F r a ic n u m ulti-taske om c m t n e ll e c FF Ex and onal skills s r e , p r n e perience ig t x s E in e F d D n F In a t arketing en ll m e c in x e E g F d F for knowle p, Quark, direction t r A ications d F n n F u a r Photosho m g o t in m a r o is t t c and dver and Illus design, a Freehand l phy oint, d practica a P o r r o g e o G w t F o o P h F p anced of orial skills FF Adv it d e t nowledge d n k r e o t e W p d m n and web r e v FF Co a Excel a e ls il w k gs Dream as well as opy writin g c in d c o a f s o t G n F F FF Clie pplication a r t e s n o ig p / s e e r d llent p hands-on e FF Exce d n a t n e knowledg m n e io g t a c n u a d pro at m FF Gre ls il k s l a n negotiatio
Kendall Bickford Portfolio 2011.indd 20
Published on May 19, 2011