Policy, Compliance

1
Policy, Compliance Behavior
Hervé Sedky VP GM, Global Advisory Services
Corporate Meeting Solutions
2
Policy Compliance Current Climate
20 of TE expenses are out of policy
Avoiding strong controls will result in out of
policy travel-related expenses increasing to near
30
Sources Aberdeen Group, 2006 American Express
Business Travel, 2007 Forecast
3
Total Expense Management

• Employing an integrated approach

Insight Benchmarking

• Program Strategy
• Transient Policy
• Meetings Policy
• Supplier Policy
• Duty of Care

• Air Sourcing
• Hotel Sourcing
• Car Sourcing
• Meeting Procurement and Planning

• Change Management
• Demand Management
• Platform Optimization and Online Adoption
• Globalization
• Technology Integration

Assess Design Implement Sustain
4
Creating a Culture

• Policy, Compliance Behavior Linkage

Demand Change Management
Policy Assessment/ Design/Redesign
Education, Tools Reporting
Compliance Behavior
5
Compliance Behavior

• Costs driven by travelers with differing views
  on spending

Without Compliance Management, costs will vary
widely from traveler to traveler
6
Case Study
Multinational with 30,000 employees operating in
60 countries

• The Situation
• Enhance profitability while providing consistent
  high-quality traveler service
• Increase compliance across core dimensions
  (online adoption, advance/restricted ticket
  purchases, preferred supplier usage)

• The Solution
• Launched executive-sponsored change management
  program to increase compliance awareness
• Implemented pre-trip notification emailing
  travelers and managers of out-of-policy bookings
• Employed incentives to assist in increasing
  compliance

• Results 1.2M Annualized Savings
• Advance purchase up 19
• Preferred carrier usage up 11
• Preferred hotel bookings up 16

Data source American Express CONFIDENTIAL