Keynote presentation: chemicals
industry overview
OCTOBER 25, 2012
JIM BOWERS, DANA MARTIN, JANET ARBID & GUSTAVO TAVARES, HAY GROUP
Agenda
1
Chemicals Business Trends
2
US HR/compensation outlook
3
Canada business trends & HR environment
4
Mexico business trends & HR environment
5
Fortunes most admired research: Conducting business globally
© 2012 Hay Group. All rights reserved
2
01
Chemicals Business trends
Understanding the business:
chemicals industry facts and trends
Macro level


Much of what we have seen this year is a repeat of the prior year, i.e. slow growth in
sales and profits. Analysts believe that this trend will continue into 2013 if Europe and
emerging markets do not “fall off a cliff”

This is a big “if” as we see Europe recently slipping into a second recession

There are a lot of mixed messages in the market right now
Chemicals stocks continue to do better than the broader market


Specialty chemicals lead the pack
Because chemicals serve a wide array of manufacturers a look at manufacturing heath
gives us a good sense of the heath and outlook of chemicals

Manufacturing contraction in the U.S. with first back to back months of contraction
since July 2009

Europe has had 12 straight months of manufacturing contraction

Japan is at a 15 month low

China is doing better but currently on the cusp between expansion and contraction
© 2012 Hay Group. All rights reserved
4
Understanding the business:
chemicals industry facts and trends
Macro level

M&A activity is up – Many companies are looking to pair up or slim down to better
weather the road ahead

Cytec – Selling coatings and resins business by end of 2012

PPG – Announced plans to sell off its commodity chemicals unit. Concentrating on
coatings and specialty products

Eastman Chemical closed on a $4.8 billion deal for Solutia

Air Products – Purchased a 67% stake in Indura, bought up the other half of the JV
with DuPont NanoMaterials, and sold its European Home Care assets
© 2012 Hay Group. All rights reserved
5
Understanding the business:
chemicals industry facts and trends
Industry level - Basic

Companies that serve aerospace, Ag, life sciences and/or energy are doing quite well
this year

Companies are benefiting from resilient Ag, food and industrials markets

Those that are diversified are seeing more modest growth

Some signs of improvement in construction, electrical and transportation

Capital expenditures – Many are currently making investments to expand production
capacity


CF Industries has committed to $1billion to $1.5 billion in capital enhancements over
the next 4 years.
Basic chemicals will remain vulnerable because of continued weakness in the global
economy
© 2012 Hay Group. All rights reserved
6
Understanding the business:
chemicals industry facts and trends
Industry level - Specialty

Companies that serve the electronics, energy, waste removal and housing markets
should benefit as the broader U.S. economy recovers



Housing and office building could have the most significant impact. Recent data
shows an improved housing and office market as starts increase and are predicted to
increase over the coming years
Consolidation continues at a strong pace. Some companies making in roads into other
countries via acquisition

Often there are challenges with integration when following this strategy, but can be
very rewarding if done right

Balance sheets remain very strong and therefore can easily support these purchases

Similar to basics, expansion efforts are attractive
Companies have been recently able to raise prices allowing for wider margins
© 2012 Hay Group. All rights reserved
7
Issues the industry continues to face

Global issues relating to business conditions and business structures increase business complexity.
How does one think globally and act locally? Chemical companies are centralizing around lines of
business (both products and markets), clarifying matrix structure accountabilities and shifting to global
management processes. However, strategies for growth and investment do vary by geographic area and
estimation of potential, balanced by political and economic risk. The next logical step in globalization is
to manage global talent to leverage financial investments

Consolidation continues in attempt to achieve focus, scale and market share. Difficulties integrating
cultures of merged companies affect success

Privatization - venture capital firms see value in chemical industry and organizations look for ways to
avoid costs of being a public company

Co-dependency and cyclicality – industry is heavily dependent on performance and prices in other
business sectors (e.g. energy, automotive, construction, consumer products and general industry) and
has cycles that are driven by these and other factors outside of the industry’s control

Regulation – environmental and regulatory issues are increasingly being managed proactively through
sustainability initiatives and strengthening the EHS functional strength

Managing diversity – does “one size fits all” HR strategy make sense with diversity and complexity of
chemical businesses (petrochemicals, building blocks, fine, specialty, agricultural, biochemistry)?
© 2012 Hay Group. All rights reserved
8
Chemical Industry - five years stock performance –
outperforming broader industry, but with significant ups and downs
Over the past 5 years chemicals have outperformed broader industry, ending last month +30% over the
period.
© 2012 Hay Group. All rights reserved
9
Commodity chemical companies are not what
is contributing to industry modest success
Highs and lows of basic chemicals track almost in lock step with the broader S&P ending
September flat for the 5 year period
© 2012 Hay Group. All rights reserved
10
Specialty chemical companies up 75%
over 5 years!
Specialty chemicals significantly outperform the S&P 500 (+75%) over the same 5 year
period
© 2012 Hay Group. All rights reserved
11
Currently listed - Best performing chemical companies
vs. worst over 5 years
Best Performing
Worst Performing
%
Change
Ticker
Newmarket Corp
399%
CYT
Cytec Industries Inc
-4%
CF
CF Industries Holdings Inc
193%
APD
Air Products & Chemicals Inc
-15%
PPO
Polypore International Inc
151%
DOW
Dow Chemical
-33%
GRA
Grace (W.R.) & Co
120%
HUN
Huntsman Corp
-44%
FMC
FMC Corp
113%
AVY
Avery Dennison Corp
-44%
Ticker
NEU
Company
75th Percentile
Median
25th Percentile
Company
%
Change
59%
19%
1%
Excludes those companies that were delisted over the 5
year period
© 2012 Hay Group. All rights reserved
12
02
US HR/Compensation outlook
United States overview

Economic statistics
Inflation

GDP
Unemployment
2012
2013
2012
2013
2012
2013
2.1
2.1
2.2
1.9
8.1
7.8
Chemicals pay movement
Employee level
Chemicals sector organizations average salary increases
Actual
Forecast
2011 – 2012
2012 – 2013
All organizations –
average salary increases
Actual
Forecast
2011 – 2012
2012 – 2013
Clerical/operative
3.0
3.0
3.0
3.0
Supervisory/Jr. Professional
3.0
3.0
3.0
3.0
Mid mgt/seasoned professional
3.0
3.0
3.0
3.0
Executive/senior management
3.0
3.0
3.0
3.0
Overall
3.1
2.9
3.0
2.9
© 2012 Hay Group. All rights reserved
14
Chemical industry pay vs. general market

Base salaries are higher at the professional and management levels, but lower at the
executive levels

Annual incentives paid were higher for professionals and managers, but lower for
executives

Target incentives continue to be more conservative in chemicals than general market

Target and Actual total cash is slightly higher for professional and management roles,
while lower for executives

Long-term incentive grant values are slightly higher for managerial roles, but less for
executive roles

Total direct compensation is higher at the professional and middle management levels
but there is a gap at the executive level between with general market paying a modest
premium.
© 2012 Hay Group. All rights reserved
15
Specialty vs. basic chemicals

Base salary – median salaries are very close with a modest premium within the
executive population

Annual incentives – basic chemical actual incentives tend to be higher at all levels, but
the differences are less prominent at the executive level

Total cash – total cash is very close – for both actual and target. Some differentiation at
the executive level

Long-term incentives – for the executive population grant values are significantly
larger within specialty

Total direct compensation – specialty chemicals have an edge at the executive
levels, but are near even at the middle management and professional levels. Executive
compensation is heavily weighted towards LTIs so the gap expressed in LTI awards
carries into TDC. Also, realized gains from LTIs are likely to be higher for specialty
chemicals based on the stock performance charts we saw earlier
© 2012 Hay Group. All rights reserved
16
Domestic vs. foreign owned

Base salary – very close to the same for domestic and foreign-owned employers

Annual incentives – targets and actual incentives are generally comparable at
professional and managerial levels, but domestic targets and actual incentives are
significantly higher at executive levels

Total cash – comparable for professionals and managers, but domestic is higher at
senior executive levels

Long-term incentives – domestic companies are more likely to provide long term
incentives with significantly more value delivered. The heavy use of equity in the U.S. is
likely a main driver of this value differential

Total direct compensation – the same at professional and managerial levels, but at
executive levels total direct compensation is approximately 15% higher for domestic
executives. This gap has narrowed slightly from prior years, likely the result of the
chemical industry being a very global market for talent.
© 2012 Hay Group. All rights reserved
17
Fortune most admired vs.
chemical industry
2012 Fortune Most Admired
Air Liquide America
E. I. du Pont de Nemours
Akzo Nobel
Linde Group, NA
BASF
LyondellBasell North America
Bayer -- MaterialScience
SABIC Innovative Plastics US
Dow Chemical





Base salary – generally higher at entry and middle management levels but slightly below
at executive levels
Short-term incentives – targets at the professional and management levels are higher
with actuals in line with the chemical industry. Executives have slightly lower targets and
lower actual
Total cash compensation – Higher at the professional and management levels with the
inverse at the executive levels
Long-term incentives – Present values were significantly higher at the professional and
management levels. This premium does not exist at the executive level
Total direct compensation – Slightly above for managers and professionals with the
premium tapering off at the executive levels
While some of the may seem surprising, we note that the sample of most admired is relatively small and also,
we note that if you are a highly admired company, you likely are growing faster, providing opportunities earlier, and
are not required to pay more than less admired companies.
© 2012 Hay Group. All rights reserved
18
04
Canada business trends & HR
environment
Macroeconomic issues in Canada

The outlook has been gradually improving,
despite the persistent European debt crisis
and consequent economic uncertainties

Modest growth forecast for Canada –
predicted to grow 2.1 per cent in 2013

At 7.0%, unemployment levels are less than
the rates during the recession in 2009. But
still not back to the rates in 2008 just before
the financial crisis began

CAD hovering at or near parity with USD
recently – many uncertainties could affect
value of dollar over the short term

Interest rates? Low and staying low
© 2012 Hay Group. All rights reserved
20
Canada overview

Economic statistics
Inflation

Economic Growth
Unemployment
2012
2013
2012
2013
2012
2013
2.2%
2.0%
2.0%
2.1%
7.0%
6.7%
Chemicals pay movement
Employee level
Chemicals sector organizations average salary increases
Actual
Forecast
2011 - 2012
2013
All organizations –
average salary increases
Actual
Forecast
2011- 2012
2013
Clerical/ operations (non-union)
3.2
3.3
2.9
2.8
Supervisory/Jr. Professional
3.6
3.4
3.1
2.9
Mid mgt/seasoned professional
3.7
3.6
3.1
2.9
Executive/senior management
3.5
3.4
3.1
2.9
Overall
3.4
3.4
3.0
2.9
© 2012 Hay Group. All rights reserved
21
HR issues and trends- Canada
Top HR priorities for chemical organizations



When we looked at the top HR priorities for
chemical organizations in Canada in our
Compensation Trends Survey for 2013:

Employer/Employee Communications

Compensation Competitiveness
Interestingly, when we looked at top priorities for
chemical orgs. from a regional perspective:

Western Canada: Compensation Competitiveness
(71%)

Ontario and Quebec: Employer/employee
communications (86%)
In Canada, the overall chemical industry is
concentrated in Alberta (29%), Ontario (43%) and
Quebec (17%)
© 2012 Hay Group. All rights reserved
22
Pay practices – Canada

Ontario Pay Equity Act, Quebec Pay Equity
Act – applies to private sector employers
with 10+ employees and all of public
sector.

The Conservative government’s 2012
federal budget confirmed what many had
expected: a plan to raise the Old Age
Security program eligibility age in Canada
from 65 to 67.

Changes to immigration policy were
announced in the 2012 budget to address
growing skills shortage in construction,
natural resources and similar industries e.g
chemicals (new skilled trades program).
© 2012 Hay Group. All rights reserved
23
03
Mexico business trends & HR
environment
Economic Environment
Mexico within a Global Context

According to 2012 IMF´s Doing Business study, Mexico is ranked as the 53th country in
the world in easiness of doing business

ahead of all BRIC´s and Turkey

but behind of South Korea, South Africa, Chile, Colombia and Peru

Also according to the same study, the projected growth of the Mexican GDP by 2013
will be the thirteenth largest among global major economies, beating Australia, Canada
and Turkey.

The projected Mexican GDP for 2017 will reach $ 2.24 trillion, an increase of 35% for a
5-year period, similar to the estimated average for the world's 15 largest economies
within the same time frame.
© 2012 Hay Group. All rights reserved
26
Internal Market Perspective
Hay Group understands that the main events that may cause any potential impact
on the observed compensation trends between the end of 2012 and the first half
of 2013 are:



The maintenance of the inflation rise trend observed throughout 2012

cumulated inflation by August´12 is the highest over the last two and a half years

primarily caused by increasingly high prices of gasoline and food

increased perception of detachment between "official" and "real" inflation indexes
The elevated demand for highly specialized professionals

Main bottleneck for the economic development of the country

is essential to invest in the training of professionals, and not only infrastructure
The Mexican Labor Reforms

in a first moment, will address the legal formalization of hourly wages in Mexico

the way it is being proposed today, will not directly affect current compensation
trends
© 2012 Hay Group. All rights reserved
27
Chemical Sector
Industry Highlights for Mexico

Chemical industry in Mexico accounts for roughly 2%, on average, of the country´s GDP
over the past four years

The internal demand for chemical products in Mexico has increased by 74% since 2007,
reaching an overall volume of 40 million tons per year in 2011

Although Chemical companies in Mexico have reported to be producing at an average
of 78% of its installed capacity in 2011, nearly 54% of the internal market demand on
chemicals has been imported

During this 5-year period, most of the internal demand was absorbed via imports, which
grew by 65%, while internal production only grew 12%

As a consequence, recent investments on the improvement of the production capacity
at Chemical companies in Mexico have totaled US$ 1,43 billion in 2011, the highest
amount invested since 2005
© 2012 Hay Group. All rights reserved
28
Chemical Companies
Characteristics
Chemical Sector Demographics in Mexico
Regional Distribution
40%
38%
35%
30%
24%
25%
20%
14%
15%
9%
10%
5%
5%
5%
5%
Durango
Tlaxcala
Veracruz
0%
Estado de
Mexico
© 2012 Hay Group. All rights reserved
Distrito
Federal
Tamaulipas Nuevo Leon
30
Chemical Sector Demographics in Mexico
Ownership, Revenues and Size Distribution
Ownership
Revenues
4%
48%
52%
# of Employees
5%
17%
29%
31%
38%
48%
28%
Foreign
Domestic
© 2012 Hay Group. All rights reserved
Up to US$ 80 MM
Up to 400 employees
Between US$ 80 MM and US$ 400 MM
Between 400 and 3,000 employees
Between US$ 400 MM and US$ 4,000 MM
Between 1,000 and 3,000 employees
Over USD 4,000 MM
Above 3,000 employees
31
Chemical Companies
Market Positioning
Base Salary at Median
Industry Ranking
120%
118%
115%
110%
104%
100%
108%
107%
104%
98%
100%
107%
104%
102%
101%
98%
94%
92%
105%
93%
99%
96%
91%
90%
92%
86%
80%
73%
70%
Chemicals
Pharma
Executives
© 2012 Hay Group. All rights reserved
FMCG
Managers
Mining
Profesionals
Other Industries
Services
Operational
33
Average Compensation Mix
Mexico Chemicals
100%
13%
80%
23%
24%
28%
23%
11%
60%
17%
16%
11%
14%
18%
17%
40%
54%
49%
45%
38%
20%
0%
Executive
Basic Payments
© 2012 Hay Group. All rights reserved
Managerial
Profesional
Fixed Allowances
Operational
STI
Benefits
34
Mexico overview

Economic statistics
Inflation

GDP
Unemployment
2012
2013
2012
2013
2012
2013
3.9%
3.7%
3.9%
3.7%
4.5%
4.6%
Chemicals pay movement
Employee level
Chemicals sector organizations average salary increases
Actual
Forecast
2011 - 2012
2012 – 2013
All organizations –
average salary increases
Actual
Forecast
2011- 2012
2012 – 2013
Clerical/ operations (non-union)
5.3%
5.2%
5.1%
4.6%
Supervisory/Jr. Professional
5.3%
5.2%
4.7%
4.6%
Mid mgt/seasoned professional
5.4%
5.2%
4.5%
4.6%
Executive/senior management
5.4%
5.2%
4.6%
4.6%
Overall
5.4%
5.2%
4.6%
4.6%
© 2012 Hay Group. All rights reserved
35
Hay Group chemicals industry North
America list of participants
Agrium
Calgon Carbon
FMC
Air Liquide
Canexus
Fuller (H.B.)
Air Products & Chemicals
Celanese
GEO Specialty Chemicals
Akzo Nobel
CF Industries
Georgia Gulf
Albemarle
Champion Technologies
GRUPO GIVAUDAN, S.A. DE C.V.
Almatis
Clariant
Honeywell -- Specialty Materials
Amyris
Cytec Industries
Houghton International
Arizona Chemical
DESARROLLO CORPORATIVO IDESA,
Huntsman
Arkema
DESC CORPORATIVO, S.A. DE C.V.
ICL Industrial Products
Ascend Performance Materials
Dow Chemical
IFF
Ashland
Dow Corning
Ineos
Atotech
DSM
Infineum USA
Baker Petrolite
Dynaplast Extruco Inc.
INFRA
BASF
E. I. du Pont de Nemours
Innophos
Bayer MaterialScience
Eastman Chemical
INVISTA
Benjamin Moore & Co.
ERCO Worldwide
Johnson Matthey
Braskem
Evonik Degussa
Kemira Chemicals
Buckman Laboratories
Firmenich
KERRY
Cabot
© 2012 Hay Group. All rights reserved
LANXESS Inc.
36
Hay Group chemicals industry North
America list of participants (continued)
Linde Group, NA
NewMarket
SYMRISE, S. DE R.L. DE C.V.
Lubrizol
NOVA Chemicals
Tessenderlo
LyondellBasell
Occidental Chemical Corporation
Total Petrochemicals & Refining USA
MacDermid
Orion Engineered Carbons, LLC
Tronox
MANE
PB Leiner
Umicore (N.V.)
Materis
Potash Corporation of Saskatchewan
Valent
McCORMICK PESA, S.A. DE C.V.
PPG Industries
VPL Enterprises Ltd.
MeadWestvaco - Specialty Chemicals
Praxair
Westlake Chemical
Methanex Corporation
Pyosa
Williams Companies
MEXICANA DE LUBRICANTES
Rhodia
Yara Belle Plaine Inc.
Mexichem Derivados Coatzacoalcos
Roquette America
Zeon Chemicals
Mexichem Flour Matamoros
SABIC Innovative Plastics US
Zep
Mexichem Resinas Vinílicas
Sasol North America
Michelman
Shepherd Chemical -- Shepherd Color
Millennium Inorganic Chemicals
Siegwerk
Mitsubishi
Sika Canada Inc.
Mitsubishi Polycrystalline Silicon America
Solutia
Momentive Specialty Chemicals
Solvay
Mosaic
Stepan
© 2012 Hay Group. All rights reserved
37
05
Fortunes Most Admired
Research – Conducting
business globally
Keys to Global Success
Research topic:

Operating across geographic boundaries is becoming more and more essential for
companies competing in an economy that is increasingly global

We set out to determine how leading companies structure and manage their
organizations to succeed globally

As Effectiveness in Conducting Business Globally is one of the attributes on which
companies are evaluated for the World’s Most Admired Companies list, the study
provides insights into factors that drive both reputation and performance in this area
© 2012 Hay Group. All rights reserved
39
Keys to Global Success
Strategy, process, and people are the three key pieces to the global
effectiveness puzzle
Strategy: Achieving competitive
differentiation and managing market
entry decisions
Process: Coordinating operations
across a dispersed organization and
managing performance to ensure
execution
People: Developing talent globally and
effectively matching people to
opportunities
© 2012 Hay Group. All rights reserved
40
Strategy: Achieving Competitive
Differentiation
Global Leaders are more successful on all fronts
Peer Group
Global Leaders
We are effective in integrating
operations globally to exploit
economies of scale.
85
68
We do a good job of providing local
units with the flexibility needed to
respond to the needs of local
markets.
85
79
We do a good job of developing new
approaches centrally and diffusing
them worldwide.
64
53
We have effective mechanisms for
capturing local innovations/best
practices and sharing them globally.
69
55
0
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
41
Coordination: Managing Performance
Global Leaders manage performance from the center
Peer Group
Global Leaders
We have a clearly defined global
approach to performance
management.
93
74
We have a clearly defined global
compensation strategy.
81
70
Our compensation strategies have
been effectively communicated to
line managers.
83
63
Our compensation structures are
centralized (emphasizing internal
consistency in market comparators,
positioning strategy, and incentive
eligibility).
0
83
55
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
42
Developing Leaders: Fostering a Global
View
Breadth of leadership perspective is critical in global companies

Global Leaders and their peers alike report that global experience is viewed as a key
criterion for advancement to senior management positions

However, Global Leaders are much more likely to make use of planned career
assignments to develop global experience

Global Leaders are also more likely to have international experience represented in
their executive teams and boards
© 2012 Hay Group. All rights reserved
43
Developing Leaders: Fostering a Global
View
Global Leaders benefit from the global perspective of their
Peer Group
Global Leaders
leadership
In our company, international
experience is viewed as a key
criterion for advancement to senior
management positions.
66
67
75
In our company, we make use of
planned career assignments to
develop global experience.
59
Most of the members of our
executive team have held positions
outside of their home countries.
57
48
48
Our board of directors is diverse in
terms of members’ nationalities.
37
0
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
44
Developing Leaders: Identifying Talent
Global Leaders are more effective in leveraging talent globally

Our research has consistently shown that Most Admired Companies take a
“hands on” approach to developing talent
– Accordingly, it is not surprising that Global Leaders report that they
have more effective mechanisms for identifying talent on a global
basis

Global Leaders and their peers report that leadership positions in business
units/subsidiaries are most often staffed by parent-country nationals or
host-country nationals
– Third-country nationals (i.e., managers neither from the parent
country nor the host country) are much less frequently used
© 2012 Hay Group. All rights reserved
45
Developing Leaders: Identifying Talent
Global Leaders are more effective in leveraging talent
Peer Group
Global Leaders
globally
We have effective mechanisms for
identifying leadership talent within
the company on a global basis.
85
71
Leadership positions in business
units/subsidiaries are frequently
staffed by parent-country nationals.
61
53
Leadership positions in business
units/subsidiaries are frequently
staffed by host-country nationals.
66
69
Leadership positions in business
units/subsidiaries are frequently
staffed by third-country nationals.
21
12
0
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
46
Developing Leaders: International
Assignments
Global Leaders make more extensive use of international
assignments than their peers

Global leaders are more likely to staff leadership positions in business
units/subsidiaries through:
– Temporary project assignments (i.e., short-term assignments focused on
the achievement of specific tasks)
– Expatriate assignments (i.e., assignments with clear plans to repatriate
managers at some point in the future)
– Open-ended international assignments
© 2012 Hay Group. All rights reserved
47
Developing Leaders: International
Assignments
International assignments are used to develop the organization and
develop people

Global Leaders report that decisions regarding international assignments are
driven by:
– Coordination requirements (i.e., diffusing corporate standards, policies,
vision and culture)
– Leadership requirements (i.e., bringing needed skills and technical know-
how to local markets)
– Staff development (i.e., cultivating management skills of high-potential
leaders)
© 2012 Hay Group. All rights reserved
48
Developing Leaders: International
Assignments
Global Leaders rotate talent to meet organizational and
individual needs
Peer Group
Global Leaders
62
We frequently make use of
temporary project assignments.
48
79
We frequently make use of
expatriate assignments.
51
38
We frequently make use of openended international assignments.
19
0
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
49
Developing Leaders: International
Assignments
Global Leaders enjoy greater success with international
assignments


While the research literature would suggest that expatriate assignments
are often problematic for organizations, Global Leaders report that they
have a strong track record in this area
The effectiveness of Global Leaders in managing international assignments
is supported by:
– Clear criteria for evaluating potential candidates
– Established procedures for determining both the total cost and the
return on investment associated with international assignments
© 2012 Hay Group. All rights reserved
50
Developing Leaders: International
Assignments
Global Leaders carefully manage international
assignments
Peer Group
Global Leaders
We have a strong track record of
success in achieving the objectives
of international assignments.
70
55
We have established clear criteria
for evaluating potential candidates
for international assignments.
70
49
We have established clear criteria
for determining the total cost of
international assignments.
77
57
We have established clear criteria
for evaluating the return on
investment in international
assignments.
48
37
0
10
20
30
40
50
60
70
80
90
100
% Agree
© 2012 Hay Group. All rights reserved
51
Summary: Keys to Global Success
Global Leaders exhibit a global perspective


The Global Leaders don’t merely operate internationally – they function as
true global companies
To compete effectively worldwide, Global Leaders:
– Integrate operations to foster economies of scales and efficient
internal knowledge transfer, while also promoting responsiveness to
local markets
– Coordinate activities by aligning business units/subsidiaries around
a common strategic vision and corporate culture
– Drive execution through performance management and
compensation systems that promote global consistency and
emphasize enterprise-wide as well as local objectives
– Actively manage talent to meet organizational needs and develop an
adequate breadth of leadership perspective
© 2012 Hay Group. All rights reserved
52
Questions?
Jim Bowers
Hay Group Philadelphia
215.861.2303
[email protected]
Janet Arbid
Hay Group Toronto
416.815.6326
[email protected]
Dana Martin
Hay Group Chicago
312.228.1824
[email protected]
Gustavo Tavares
Hay Group Mexico City
5255.53406637
[email protected]