2015, VOL. I
NETWORK www.babinc.org
NEW YORK LONDON
Doing business in the US
Richard Currie
Director of Public Affairs, UPS UK, Ireland and Nordics on navigating the US exports system
INSIDE
Features from The Federation of Small Businesses on TTIP and Hays on their popular Women’s Forum Network
[ WHAT MAKES FAIRFAX COUNTY THE IDEAL US LOCATION ] GROWING UK BUSINESS PRESENCE THRIVING REGIONAL ECONOMY
GATEWAY TO THE US MARKET
QUALITY OF LIFE EXPANSIONSUPPORTING SERVICES STRONG WORKFORCE
Interested in US expansion? No chart or graph can adequately convey the benefits of moving your business to Fairfax County, Virginia. Here you’ll find British firms taking advantage of a well-trained workforce, excellent communication and transportation infrastructure, a public school system second to none and connections back home thanks to Washington Dulles International Airport. Located minutes from Washington, DC, this is an ideal location for pursuing federal projects. And with 8,400+ tech firms and 10 Fortune 500 companies, your successful business will be right at home. To see how your business can benefit from expansion to Fairfax County, visit www.powerofideas.org or contact our London office at FairfaxUK@FCEDA.org or + 44 (0) 207 930 5590.
The power of ideas
CONTENTS 2
NETWORK www.babinc.org
NEW YORK LONDON
WELCOME
11
US-EU Safe Harbor Regime Pulina Whitaker, Partner, King & Spalding
Business Visitors – Breaking the Law? Siobhan Owers, Senior Manager, and Charlotte Wills, Senior Associate, Fragomen Worldwide
Jeffries Briginshaw, CEO BritishAmerican Business
2015, VOL. I
MEET THE NEW MEMBERS New Members
Doing business in the US
Richard Currie
Director of Public Affairs, UPS UK, Ireland and Nordics on navigating the US exports system
INSIDE
3
New Corporate Members 4
New Board and IAB Members
A Message from our Board Chairman and President
5
SIXTY SECONDS WITH…
Features from The Federation of Small Businesses on TTIP and Hays on their popular Women’s Forum Network
BRITISHAMERICAN BUSINESS London 75 Brook Street London, W1K 4AD Tel: +44 (0)20 7290 9888 Fax: +44 (0)20 7491 9172 Email: ukinfo@babinc.org New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 (212) 661 4060 Fax: +1 (212) 661 4074 Email: nyinfo@babinc.org Website: www.babinc.org tradeinvest.babinc.org Follow us on: Twitter @BABLondon LinkedIn “BritishAmerican Business” facebook.com/ BritishAmericanBusinessLondon
TRANSATLANTIC COUNCIL MEMBERS LISTING
6
8
DOING BUSINESS IN THE US
Injured Servicemen and Veterans Participate in the Simpson Cup John Simpson, President and Founder of The Simpson Cup
POLICY & FORUMS
The Land of Opportunity – Doing Business in the US Richard Currie, Director of Public Affairs, UPS UK, Ireland and Nordics
TTIP FEATURE An Ambitious Transatlantic Trade and Investment Partnership must meet the needs of Small Businesses Mike Cherry, Director of Policy, Federation of Small Businesses
INDUSTRY INSIGHTS
10 Major Changes to UK Share Plan Compliance Karen Willcox, Senior Manager, Pay, Performance & Risk, PWC
BritishAmerican Business: The Company to Keep BritishAmerican Business is the leading transatlantic business organization, dedicated to helping companies build their business on both sides of the Atlantic. Its membership brings together the world’s leading multinational and middle-market companies across sectors and geographies; and more than 100 of the world’s most successful CEOs support its work through their participation in its Advisory Board. It incorporates the American Chamber of Commerce (UK) and the BritishAmerican Chamber of Commerce (USA), which merged in 2000 to create a single, pre-eminent transatlantic organization that could support its members across the Atlantic.
BritishAmerican Business NETWORK 2015, VOL. I
Communicating to the Masses; Speaking to the Individual Claire Farrington, Partnership Manager, Grange Hotels
13 Asset Tracing in a Borderless World Ian Casewell, and Christopher Weil, Partners at Mintz Group
Changing The Approach: Winning the TTIP Case “On the Ground”
EDITOR Rachel Reaney rreaney@babinc.org
Ian Stopps, Chairman of Raytheon UK; and Chairman of the Advisory Board for the School of Business and Economics at Loughborough University
9
12 Meeting the Productivity Challenge Oliver Jones, UK Head of Multinationals, Corporate Banking, HSBC
The Growing Importance of Real Estate as Strategy within the Boardroom John Duckworth, Head of Corporate Occupier Services & Member of the UK Board, JLL
14 The Women’s Forum Yvonne Smyth, Director and Head of Diversity Hays PLC 15 Policy Update 16 An Update from our EU-US Trade Forum John Cater, Forums Programme Manager, BritishAmerican Business 18 AUTHOR SPOTLIGHT
EVENT HIGHLIGHTS
19 London Event Highlights 22 New York Event Highlights 24 UPCOMING EVENTS
London Staff Jeffries Briginshaw CEO BritishAmerican Business +44 (0)20 7290 9888 jbriginshaw@babinc.org
Events Katie Banham Director – Events +44 (0)20 7290 9873 kbanham@babinc.org
Office Management John Adam Office Manager/Accountant +44 (0)20 7290 9886 jadam@babinc.org
Membership Vina Bongiorno Director, Membership, Sales and Marketing +44 (0)20 7290 9880 vbongiorno@babinc.org
John Cater Forums Programme Manager +44 (0)20 7290 9874 jcater@babinc.org
Sherry Dolatshahi Information Manager & Executive Assistant +44 (0)20 7290 9883 sdolatshahi@babinc.org
Tariro Masukume Membership Manager +44 (0)20 7290 9881 tmasukume@babinc.org Andrew Pantaleo Membership Manager +44 20 7290 9882 apantaleo@babinc.org
Sabina Hussain Events Manager +44 (0)20 7290 9875 shussain@babinc.org Rachel Reaney Communications Manager +44 (0)20 790 9879 rreaney@babinc.org Emanuel Adam Policy and Public Affairs Manager +44 (0)20 7290 9885 eadam@babinc.org
View this edition of Network online:
1
WELCOME
M
Jeffries Briginshaw CEO, BritishAmerican Business JBriginshaw@babinc.org
any of you have suppor ted us from our beginning, and have worked with us ever since BritishAmerican Business was born out of the merger of AmCham UK & the British American Chamber of Commerce. You have watched us grow into what we are today. I am sure you will join me then in thanking our successful founder and CEO, Richard Fursland for the fundamental role he played in shaping that destiny. He has played such an important role in helping us to become an exceptional transatlantic business organisation, proudly representing the best of American and British business. We are now only a few months away from our 15th year anniversary and this year, as well as celebrating that rich heritage, we will be looking forward to developing exciting plans and projects that will help shape and define our future. For example, by unveiling a new and improved website, we hope to consolidate and strengthen our visibility online and find new ways to engage with you, based on the superb ‘content’ we already generate as a network, but updating some of the platforms we use to communicate it. As a member, you can look forward to experiencing these exciting changes, all part of our efforts to ensure maximum value is being derived at each membership level. And you can be sure that both London and New York will continue to deliver an outstanding calendar of premier events to provide unique networking and business building opportunities at each and every one of our future event initiatives. Look out for the launch of new programmes as we embrace today and
tomorrow’s corporate priorities on topics ranging from diversity to cyber resilience and more. One of the key moments this year so far has been the launch of our comprehensive TTIP case study report, ‘Local, Specific, Tangible’. I am pleased to say that the report has been extremely well received, in particular by key stakeholders in government. When it comes to championing our ongoing policy work, the report demonstrates that we have added some ‘campaign style’ spirit to the way we do things. The underlying initiative (more of which is discussed on pages 8-9), not only reflects member core interests but it ties in with our continuing efforts to bring a fresh, outgoing and engaged approach to our policy work. This ties in with the ‘bigger picture’ of what we stand for – business winning in the global economy and underpinning an even stronger UK-US economic relationship. Our theme in this Network issue is ‘Doing Business in the US’. Our main feature on pages 6-7 discusses the trade opportunities the US market offers for businesses, particularly SME’s. We recently honoured Steve Holliday, Chief Executive of National Grid and Dan Glaser, President and CEO, Marsh and McLennan Companies at our successful awards dinner which was one of June’s calendar highlights. Looking forward to the busy few month of events ahead, our next black tie event will be our September Gala Dinner celebrating the transatlantic relationship with Matthew Barzun, US Ambassador to the Court of St James’s in September. I’m looking forward to seeing you there! n
M E E T T H E N EW M E M B E R S
BROADRIDGE FINANCIAL SOLUTIONS INC
2
The ISIS Building, 193 Marsh Wall, London E14 9SG, GB Phone: +44 (0) 20 7551 3000 www.broadridge.com Tom Carey, CEO & President of SPSN International tom.carey@broadridge.com Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers. Its systems and services include investor communication solutions, securities processing and business process outsourcing services.
PROXIMA
PENTLAND BRANDS
MILLER HEIMAN UK
Lakeside, Squires Lane, London N3 2QL GB Phone: +44 (0) 20 8970 2890 www.pentland.com Andy Long, CEO of Pentland Brands andy.long@pentland.com Pentland is an international brand management company involved in the sports, outdoor and fashion markets. It manages owned brands such as Speedo, Berghaus, Canterbury, Mitre, Boxfresh, and Red or Dead; and also operates, under global licences, the footwear of Lacoste and Ted Baker, and Kickers in the UK.
Nelson House Phone: +44 (0) 800 132595 www.mhiglobal.com Monika Götzmann, Director Marketing EMEA monika.goetzmann@mhiglobal.com MHI Global® helps clients drive profitable, predictable top-line growth in an increasingly complex world by bringing together the proven methodology of four great brands in sales performance and customermanagement excellence: AchieveGlobal®, Channel Enablers®, Impact Learning Systems® and Miller Heiman®.
107 Cheapside, London EC2V 6DN GB Phone: +44 (0) 20 7465 4541 www.proximagroup.com Vanessa Hughes, Digital & Events Marketing Manager vanessa.hughes@proximagroup.com Proxima provides catalytic procurement services to global brands, including InterContinental Hotels, Universal Music, British Airways, Staples, WM Morrison Supermarkets & Activision Blizzard.
BritishAmerican Business NETWORK 2015, VOL. I
T R A N S AT L A N T I C C O U N C I L M E M B E R S
T RA N SAT L A N T I C CO U N C I L M E M B E R S Transatlantic Council Membership is reserved for a select group of BritishAmerican Business’s leading companies, and offers them a customized program of exclusive networking, promotional, and business opportunities, in addition to the regular benefits associated with membership in BritishAmerican Business.
3M UK
Delta Airlines
Lloyds Banking Group plc
Shell International Petroleum Co. Ltd
Aberdeen Asset Management PLC
DLA Piper
Lockheed Martin UK
Smith & Williamson
ACE Overseas General
Dow Jones
London & Partners
Spence & Partners Limited
ACS International Schools
Edelman
London Philharmonic Orchestra
Squire Patton Boggs
Addleshaw Goddard LLP
Esso Petroleum Company
London Symphony Orchestra Ltd
Standard Chartered Bank
ADP Ltd
EY
Loomis Sayles
TASIS The American School in England
AIG
Federal Express Europe Inc (FedEx)
Magrath LLP
The British Land Company PLC
AlixPartners Ltd
Fifty-Five UK Ltd
Marriott Hotels International Limited
TheCityUK
American Airlines Inc
Flanders Investment & Trade – Embassy of Belgium
Marsh UK Ltd
The New York Times Global
McGuireWoods
The Risk Advisory Group plc
McKinsey & Company
Thomson Reuters
Mercer Limited
Truphone
MHI Global
UK Trade & Investment (UKTI)
Moelis & Company
United Airlines
Montrose Associates Ltd
Universal Music
Aon UK Ltd Arnold & Porter (UK) LLP Arup Asia House BAE Systems Applied Intelligence
FleishmanHillard FMP Global Ford Motor Company Fragomen
Baker & McKenzie
Fried, Frank, Harris, Shriver & Jacobson (London)
Bank of America Merrill Lynch
Grange Hotels
Morgan Lewis & Bockius
University of Chicago Booth
Barclays PLC
Gulfstream Aerospace
M Moser Associates
Blick Rothenberg LLP
GVA
National Football League (NFL)
University of Edinburgh Business School
Bloomberg LLP
Hays Plc
National Theatre
BNY Mellon
HCA International Ltd
Orrick Herrington
Boeing UK Limited
Heathrow Airport Limited
PACCAR Inc
BP International Ltd
Herbert Smith Freehills LLP
Pentland Brands Plc
British Airways plc
Hill & Knowlton
Philharmonia Orchestra
Broadridge Financial Solutions Ltd
HSBC Bank plc
Philip Morris Limited
BT Group plc
IBM United Kingdom Ltd
Pillsbury Winthrop Shaw Pittman LLP
Bulgari Hotel & Residences London
Interel
Pitch Factory
CBRE
Invest Northern Ireland
Proxima
Charles Russell Speechlys LLP
IPSA JSI Logistics UK Ltd
Pullman London St Pancras
Chelsea Football Club
Irwin Mitchell LLP
PwC LLP
Chevron
Jones Lang LaSalle
RADIUS
Citi
J.P. Morgan
Raytheon
City of London
Just Marketing International Limited
Reed Elsevier
Colliers International Property Consultants Limited
King & Spalding International LLP
Reed Smith
Kingstree Group
Reeves & Co LLP
Corporate Service at Harrods
K+L Gates
Robert Walters
Savills Plc
Crowell & Moring
Knight Frank
Rolls-Royce plc
Right Management
Cubitt
KPMG LLP
Santander UK
RealTid
Cushman & Wakefield LLP
Linklaters LLP
Shakespeare’s Globe
Deloitte LLP
Links of London
Shearman & Sterling LLP
BritishAmerican Business NETWORK 2015, VOL. I
UPS Ltd US Embassy Verizon Enterprise Solutions Virgin Atlantic Airways Weber Shandwick Weil, Gotshal & Manges Wells Fargo Welsh Government Willis Group Ltd Withers LLP WPP Zurich Insurance PLC
New Corporate Members Herbalife Europe
3
MEET THE NEW MEMBERS
N ew B o a rd a n d I A B M e m b e rs BAB is governed by a transatlantic Board of Directors, led by our Chairman, Nicholas Walsh, Senior Advisor, AIG and our President and Deputy Chairman, Christopher Perry, President Global Sales, Marketing & Client Solutions, Broadridge Financial Solutions. The Board’s active support and commitment to BAB and its objectives are important to ensuring our continued success as an organization. We also enjoy strong support from our International Advisory Board, consisting of Chairmen and CEOs from more than 100 major multinational companies. We are delighted to announce that the following new members have recently joined our Board of Directors and International Advisory Board. NEW BOARD MEMBERS:
NEW INTERNATIONAL ADVISORY BOARD MEMBERS:
MARTIN DAVIDIAN Managing Director, Sales UK & Ireland Federal Express Europe Inc (FedEX)
ALASTAIR LUKIES CEO Monitise Group Ltd.
WILLIAM LEWIS Chief Executive Officer Dow Jones
ZANNY MINTON BEDDOES Editor-in-Chief The Economist
ILIAN MIHOV Dean INSEAD
MARK MAKEPEACE Chief Executive FTSE Group
THOMAS FARLEY President NYSE Group
FRANK D’SOUZA CEO Cognizant
HOWARD STRINGER Chairman Saïd Business School
SIR WIN BISCHOFF Chairman JP Morgan Securities plc
JOHN HOLLAND-KAYE CEO Heathrow Airport Limited
DENNIS FRIEDRICH Chief Executive Officer, Global Office Division Brookfield
IGNACIO JAYANTI President Corsair Capital
RICH LESSER President & CEO The Boston Consulting Group
RODNEY WARREN ZEMMEL Managing Partner, Northeast Offices Mckinsey & Company
ERIC CANTOR Vice Chairman and Managing Director, New York Moelis & Company
A M essa g e From our Board C h airm an a n d P res id e nt Dear Fellow-Members of BritishAmerican Business: As you know, Richard Fursland, who was a co-founder of BritishAmerican Business and has led our outstanding growth and development with great dedication and success as our Chief Executive since our establishment in 2000, stepped down from this role as of March 1. We very much appreciate Richard’s exceptional leadership of BAB, and are delighted that he has agreed to stay on in a part-time advisory role to advise and support us and BAB’s new executive leadership. We are also very pleased that as of March 1, Jeffries Briginshaw, previously Managing Director of our London office, took over from Richard as our Chief Executive, and that Wendy Mendenhall continues to lead our US operations as Managing Director of our New York office.
Nicholas Walsh Chairman BritishAmerican Business nwalsh@babinc.org
Jeffries and Wendy are both outstanding executives who, along with Richard, have contributed greatly to BAB’s continuing success; and it is thanks in large part to Richard’s and their efforts as well as your support, that BAB is now in the strongest position it has ever enjoyed and had one of our best-ever years in calendar 2014. Since the start of 2015, we have continued to make good progress with implementation of our 3 –Year Forward Plan (‘14-’17), which will further expand and improve BAB’s business offering and membership base; and we are confident that, with this outstanding leadership team in place and your ongoing and active engagement with us, we will continue to grow and to succeed in the years to come. With all good wishes for the rest of 2015, and many thanks for all your support for BAB,
Chris Perry President and Deputy Chairman BritishAmerican Business cperry@babinc.org
4
BritishAmerican Business NETWORK 2015, VOL. I
S I X T Y S EC O N D S W I T H . . .
. . . I a n Sto p p s, C h a i r m a n of Ray t h e o n U K ; a n d C h a i r m a n of t h e Ad v i so r y Bo a rd fo r t h e Sc h o o l of Bu s i n ess a n d Eco n o m i c s a t Lo u g h b o ro u g h U n i ve rs i ty What is the key to success as a business leader? To lead with courage, vision, passion, empathy, teamwork, integrity and communications. What is your biggest accomplishment as Chairman of Raytheon? Ensuring Raytheon UK, with business in and with the UK, is central to the Corporation’s global growth imperative and success.
Your briefcase always contains? A few business papers for the day, and most importantly various electronic devices and chargers to keep current on communications, information and news. Your life philosophy, in under 10 words, is? Make things happen; take charge of your life and career.
Your favourite thing about the US is? It’s adaptability to change, and its “can do” attitude.
You dislike? Surprises; and people not doing what they say they’re going to do, when they say they’re going to do it!
Tea or coffee? Both, depending where I am in the world… but definitely coffee in the US and tea in the UK!
The best advice you were ever given was? Take time to think, reflect and even dream!
Your most memorable vacation was? Visiting the Galápagos Islands in the ’90’s with my wife and two daughters to witness the diversity of plant and animal species which inspired Darwin’s Theory of Evolution, and realising that we humans were a mere side line to life there!
An Interesting fact about Raytheon is? Raytheon was incorporated in the UK in 1908, but its electronic heritage dates back to 1895 with the development of the UK’s first x-ray tubes.
Lord Green, Minister for Trade and Investment is met by Bob Delorge & Ian Stopps
I
an is Chairman of Raytheon UK, a founder and Chairman of The McLean Partnership and Chairman of the Advisory Board for the School of Business and Economics at Loughborough University. Ian is also an Advisory Board member of the Centre for Blast Injury Studies at Imperial College London. He is a former Chairman of British American Business Inc. and remains on its Advisory Board. Ian has served on several boards including The British American Business Council, The Royal United Services Institute, The Council of the Society of British Aerospace Companies, and the UK Council
BritishAmerican Business NETWORK 2015, VOL. I
Ian Stopps, Raytheon UK Chairman
for Electronic Business. Ian was Chief Executive of Lockheed Martin UK from 1999-2009. This followed a career of increasing leadership responsibilities notably in the merged companies that formed Lockheed Martin, and with GE across a wide product and services portfolio for global markets. Ian was appointed a CBE for services to the UK Aerospace and Defence industry in 2003. In July 2014 Ian was awarded an honorary degree of Doctor of Technology from Loughborough University for contributions to the UK Aerospace, Defence, and Security sectors.
5
F E AT U R E : D O I N G B U S I N E S S I N T H E U . S .
The Land of Opportu Doing Business in th What common misconceptions are there for first-time exporters? UPS SME Exporting Insights is a study recently undertaken by UPS to help understand the challenges perceived by SMEs when looking to expand internationally. The research revealed that UK small businesses view export regulations and tricky administration costs as the top barriers to exporting to the U.S. When it comes to exporting to the EU, UK businesses feel culturally
Richard Currie Director of Public Affairs, UPS UK, Ireland and Nordics Why are UK firms drawn to exporting in the US? Currently, UK-U.S. trade is worth more than £130bn a year. According to Gov.uk, the U.S. is the UK’s “fourth easiest country to do business with”, which isn’t surprising seeing as it’s the world’s largest economy. The size of the market, the common language, similar legal systems and a shared culture are all characteristics which make it an obvious choice when a business is considering expanding internationally. UK brands and businesses also have an enduring appeal in the U.S. They have a reputation for reliability alongside a proven track record of excellence and quality. With all this considered, now is the perfect time for UK firms to seize new export opportunities in the U.S. that will not only mean success for their own businesses but also help to strengthen the UK economy for years to come.
What opportunities can the US market offer for businesses looking to expand and grow their customer base? One big advantage that UK businesses hold over many other foreign competitors is ‘Brand Britain’. Over the last few years we’ve seen a renaissance in consumer appetite for British products, which was jumpstarted by the London Olympics shining a light on what Britain can offer to a global audience. UK goods have become synonymous with quality, reliability, and prestige in the global marketplace, so for ambitious SMEs with a product to sell, there is a huge opportunity to capitalise on this by extending the reach of their brands into the US market.
6
and emotionally isolated, mainly due to language and currency differences. Generally, many SMEs worry that the competition is too tough or that they are too small to enter the world of international trade, and thus exporting is too risky a move.
What resources are there to help first-time exporters navigate the international landscape? For businesses looking to export and grow their customer base in the US, it’s essential to understand how exporting works and how to research their target market. Fortunately, there are plenty of resources available to help first-time exporters navigate the international landscape, including the UPS online Export Toolkit. A great example of UK businesses finding their feet
BritishAmerican Business NETWORK 2015, VOL. I
unity – he US before committing to the full exporting process was the UPS Small Business Trade Mission. This was an initiative in partnership with The Guardian Small Business Network, in which we brought 10 UK-based SMEs to Atlanta, Georgia, for a week of meetings and events designed to enable them to successfully export to the US.
Once in the US market, are there any tips to help ease the process for SMEs? Research is a crucial part of the process. The US is a vast country and it is vital to determine where your goods will end up and who your competition is. Learning all that you can about your potential customers’ needs and what the local laws and regulations are regarding your product will stand any business in good stead. A steady and loyal customer base is a key component to any successful multinational, and
advantageous to SMEs in particular, as some don’t necessarily have the scale and resources to manage current regulations. There is a misconception that the TTIP is an agreement by and for large global corporations, but SMEs have an incredible opportunity to take part in the potential increase in trade – either directly or indirectly as part of global value chains. This agreement can remove costs and complexities that affect all companies – both large and small.
What role does the transatlantic market play in logistics? The transatlantic market has a large impact on logistics, which is why strengthening transatlantic trade is a top priority for UPS. A TTIP which moves beyond tariff barriers to encompass a broad range of non-tariff, regulatory and supply chain barriers to trade could boost our trading volume by 13 million packages and support 2,400 jobs annually. Increasing trade flows has a huge positive benefit on global growth but UPS believes there’s more than can be done through trade agreements and customs modernisation.
How is technology and changing consumer demands impacting the logistics industry and how are you responding to it?
offering convenience and choice is often the best way to achieve this. Reliable delivery and ease of returns is an essential feature of driving repeat sales so finding a logistics partner you can trust is important.
Why would supporting the Transatlantic Trade and Investment Partnership help businesses to have more exciting opportunities in the US in the future? The TTIP agreement will help to form the largest trading bloc in the world, and this can only be of benefit to businesses looking to expand in the U.S. Many daunting bureaucratic barriers would be removed from the exporting process, which would be
BritishAmerican Business NETWORK 2015, VOL. I
The retail world is evolving the quickest, having undergone significant changes online due to advances in technology. Insights from the UPS Pulse of the Online Shopper survey tell us that a seamless shopping experience needs to be provided by retailers in order to please the consumer. Currently only 59% of shoppers in the UK are satisfied with the amount of product detail available when making a purchase online. The report also indicates that customers also place a high value on convenience, with 26% of shoppers in the UK saying they would prefer their online order be delivered to locations other than their home. Retailers can respond to these demands by providing consistent information across all channels, offering a wide range of delivery options complimented by order tracking and ensuring they have a flexible returns policy. UPS has recently developed solutions such as UPS Access Point™, a network of convenient retail locations to enable fast and efficient parcel collection/drop-off, and UPS My Choice®, a service available to help consumers manage their UPS deliveries, to help businesses provide these solutions.
7
F E AT U R E : T T I P
AN AMBITIOUS TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP (TTIP) MUST MEET THE NEEDS OF SMALL BUSINESSES
A
Mike Cherry Policy Director, Federation of Small Businesses
successful and ambitious TTIP has huge potential to benefit the UK’s small businesses seeking to increase or start selling their goods and services to American customers. Small and medium enterprises (SMEs) have a combined annual turnover of £1.6 trillion and employ 60 per cent of the workforce in the UK1. Small businesses are the engine room of the UK economy contributing 50 per cent of GDP. For this reason Mike Cherry, National Policy Director of the Federation of Small Businesses (FSB) called for an “ambitious Transatlantic Trade and Investment Partnership (TTIP) agreement that will meet the needs of small businesses”. The FSB is the UK’s largest business organisation, with a focus on promoting and protecting the needs of the self-employed and owners of small firms. Formed in 1974, the FSB now has around 200,000 members, with representatives from many different industries including retail, construction, professional, scientific and technical. The FSB covers 33 regions across the UK, breaking down into 188 local branches. The FSB welcomed the outcome of the ninth round of the TTIP negotiations in April 2015. The talks included a focus on the regulatory cooperation chapter and how state law would relate to it. This is important as small firms have to deal with legislation at both federal and state level. The talks also looked at transparency and cooperation provisions. What are the benefits of TTIP? The USA is the largest export market for British goods and services outside the EU. The Department for Business, Innovation and Skills (BIS) have noted that a “successful and ambitious TTIP could boost the UK economy (annually) by as much as £10 billion, and benefit the EU economy (annually) by up to £100 billion”.2 TTIP could also have a significantly positive impact on employment in the long term as further liberalisation of trade could lead to 400,000 jobs being created in the UK. TTIP opens up a potential export market of 300 million US consumers to UK small firms. 3 Small businesses that are currently exporting, or are seeking to export goods and/or services to the US market can be impeded by the bureaucracy and cost impact of custom procedures, trading tariffs and licences. FSB member Brian Hyde from Brian Hyde Ltd “believes that differing tariff barriers between the EU and US negatively impacts upon UK small firms seeking to compete with the US”. A successful implementation of TTIP would help to diminish and/ or abolish these restrictions. This is an opportunity
8
for TTIP to align existing processes to benefit small firms’ trading relationships. Gary Johnson, Business Development Manager for Exports, Wensleydale Dairy Products said that “the EU-US Trade and Investment negotiations would help my business by making it easier to export.” Importance of the Small Business Chapter in TTIP A successful and ambitious TTIP must incorporate the needs and concerns of small businesses if it is to reach its full potential. To ensure this happens it is crucial that TTIP includes an effective Small Business Chapter. The FSB is actively working with TTIP negotiators to ensure this happens in a meaningful way that allows global trade to become more main stream for small firms with international ambitions. This includes whether they are importing, exporting or in the supply chain of investors. The inclusion of a Small Business Chapter in TTIP would be the first of its kind in an international agreement and would acknowledge the vital role small firms play in growing the economy. The significance of which could mean the setting of a precedent for all future trade agreements. To ensure a successful and ambitious TTIP the FSB is calling for: • T he Sma l l Bu si ness Chapter to conta i n commitments for the creation of an SME web portal with practical information for exporting small firms. For example, information on doing business in the US, on customs, and on regulations at state, member state, Federal and EU level. • Legislation in both regions should be designed with small firms in mind and showing the impact on SMEs of each draft proposal. This requires a coordinated Trans-Atlantic Better Regulation agenda whereby ‘Think Small First’ should be the leading principle. • A modern ISDS (Investor State Dispute Settlement) mechanism that is affordable for small firms and includes the possibility of mediation. • Public procurement markets which are equally accessible for firms on both sides of the Atlantic. • En forcement and protect ion of Eu ropean Intellectual Property rights held by small firms. 1 2 3
ONS Business population statistics November 2014 Ibid https://www.gov.uk/government/news/transatlantic-tradeand-investment-partnership-ttip-benefits-and-concerns
BritishAmerican Business NETWORK 2015, VOL. I
CHANGING THE APPROACH: WINNING THE TTIP CASE “ON THE GROUND”
TTIP UK Roadshow
Open For Business Ahead of the 10th round of TTIP negotiations in July 2015, in the UK the public discussion of TTIP continues to be a ‘Ping-Pong match’ between proponents of an ambitious agreement and critics who fear the agreement objective is to lower standards and to undermine government’s rights to regulate in public interest. We at BritishAmerican Business have long advocated an ambitious agreement that will bring jobs and growth to our economies on both sides of the Atlantic. However, we recognise that proponents of the agreement such as ourselves have not yet been successful in fully illustrating the direct benefits this important agreement can bring to businesses – big and small. This is especially surprising in the UK given our close ties we have with the US when it comes to trade and investment in particular. The US is the largest importer of UK goods and by far the largest investor in the country. Just one example: One million people – maybe more – get up every morning to work for an American company. A successful TTIP is therefore likely to benefit hundreds of companies, and thousands of their employees, already doing business with and in the US – and hopefully many more – across the UK. If we want to make a case for TTIP, we have to capture the impact transatlantic trade and investment already has for businesses in the UK and we have to show in a local and tangible way where TTIP can make a positive difference. Statistics and estimates can give us an indication, but the real impact will only be visible “on the ground” where UK-US trade and investment takes place every day. With four events focused on the benefits and changes that TTIP can bring to the four most important sectors by size in the UK – Chemicals, Food & Drink, Life Sciences and the Automotive sector – this is what our new event series ‘Open for Business’, starting in June 2015, aims to do. In all of these sectors, UK-US trade and investment contributes to growth and innovation. In all of these sectors, we think that TTIP provides an opportunity for barriers to be removed and more market access opportunities. Together with numerous businesses and local stakeholders which are part of different industry sector fabrics, this is what we want to illustrate. TTIP continues to teach us an important lesson: it is sometimes not enough to speak about the geopolitics and global dimension of a policy to win a debate. In TTIP we think that the most convincing case will be made by the people and businesses who will be directly affected by it.
OPEN FOR BUSINESS EVENT SERIES: What a transatlantic free trade and investment agreement means to the following sectors:
Chemicals, Runcorn – 18th June 2015 Food & Drink, Leicester – 25th June 2015 Life Sciences, Oxford – 24th September 2015 Automotives – October 2015 (tbc) For more information on our TTIP Roadshow Events visit www.babinc.org/events
BritishAmerican Business NETWORK 2015, VOL. I
9
I N D U S T RY I N S I G H T S
Major Changes to UK Share Plan Compliance
T
Karen Willcox Senior Manager Pay, Performance & Risk
here are major changes to employee equity compliance in the UK which impact organisations that provide any form of employment related securities (e.g. shares, share options etc.) to their UK based employees – either on a "one off basis" or through a formal share plan. The changes will impact all types of companies – UK parents, inbounds, SMEs and non-UK companies with UK participants. What do you need to know? 1. Compulsory online registration of all share plans together with online filing of annual share plan returns. Companies need to register all their share plans online by 6 July. In addition, HM Revenue & Customs (HMRC) will no longer “approve” tax favoured plans – instead employers must self-certify that their new and existing plans comply with the relevant law. This transfers the risk to employers so they'll need to be confident not only that their tax advantaged plan documents comply with the legislation but that they also operate them correctly. Otherwise the tax advantages for some or all awards could be lost and so could be very expensive for them. Inaccuracies may also increase their risk profile with HMRC which could lead to additional scrutiny of the company's tax approach more generally.
HMRC requires far more information on the new online annual returns than it did previously – employers will need to ensure that they or their administrators have the information and can deliver it within the deadlines. 2. Changes to the tax treatment of share awards made to internationally mobile employees – for new and existing awards. From 6 April 2015 these changes have brought some awards that were previously not taxable into the UK tax net. Companies will need to consider which employees are impacted, how to communicate this change, what advice and guidance should be given and if any policy changes going forward need to be made. 3. Corporate tax relief is now available for share awards made to some expatriates which previously was not the case. If companies’ policies and procedures are not set up to track this new class of people where relief is now available they may be leaving valuable tax benefits on the table. More information If you’d like to discuss any of the above, please contact Karen Willcox T: +44 (0)1895 522074 E: karen.j.willcox@uk.pwc.com
The Growing Importance of Real Estate as Strategy within the Boardroom
I
n 2015, companies are emerging with far greater discipline and focus on property strategy than ever before. Executive awareness is focusing on three areas, all related to the optimisation of a real estate portfolio. First ly, UK real estate teams are being challenged to make their property work harder, for lower cost, while also sharpening its value to overall business strategy. To strike the right balance between cost control and targeted investment, companies are developing a more detailed understanding of the total cost of their property particularly as project and construction costs are set to rise across the board. With property costs typically accounting for 5-10 per cent of annual revenue, and with the International Accounting Standards Board expected to issue a new leases standard this year, there will be an increased focus from senior management on the financial implications of property in 2015. The second area is deeper location analysis to maximise asset performance and ensure activities are aligned to core business goals. This is encouraging the rise in re-shoring and nearshoring to lower cost UK locations. Already evident in the US, it has been suggested that potential jobs
10
growth resulting from companies moving processes back to the UK could create up to 400,000 jobs over the next 10 years. Not confined to manufacturing, this trend is also impacting the services sector, with a range of financial and professional services companies such as law firms exploring ways to expand their enterprise footprint in lower-cost UK locations such as Birmingham, Glasgow, Bristol and Manchester. While it is doubtful that we have seen the end of the offshoring era, we expect clear and continued growth in the number of companies reassessing their enterprise footprints. Thirdly companies are increasingly using the workplace to drive greater productivity, with space optimisation under far greater scrutiny. Efficient space utilisation in its basic sense delivers clear cost benefits in the running of a portfolio of assets. Successful organisations are creating workplaces that inspire, encourage innovation and match the needs of people. Effective data and analytics will become ever more critical as companies seek to measure and refine workplace and portfolio strategies to achieve smart growth, attract and retain top talent and reap the environmental and bottom line rewards a high performance workplace can bring.
John Duckworth Head of Corporate Occupier Services & Member of the UK Board, JLL
BritishAmerican Business NETWORK 2015, VOL. I
US-EU Safe Harbour Regime
F Pulina Whitaker Partner, King & Spalding
ollowing the recent uproar in Europe after reports that US agencies were supposedly spying on European citizens or otherwise mining personal information from companies operating in Europe, without satisfying regulatory requirements or obtaining proper permissions, the European Commission has reviewed the US-EU Safe Harbor regime to assess whether it should be improved or withdrawn altogether. There is a case currently being heard at the European Court of Justice in relation to the use by Facebook in Ireland of its Safe Harbor certification to transfer personal data pursuant to the US where, it is alleged, it was transferred to the US government for improper purposes. The Safe Harbor regime has a membership of approximately 3,300 companies (this represents an eight-fold increase of 400 companies who registered in 2004). The increasing popularity of the regime is a mark of how international businesses are approaching European data protection restrictions against transferring personal data from Europe to the US. If a company registers with the US-EU Safe Harbor regime, it can lawfully receive personal data from Europe without an additional need to obtain the consent of the individuals concerned.
There are, however, obligations in some European countries (such as Greece and Cyprus) on the data exporter to obtain regulatory approval to use the Safe Harbor scheme. In November 2013, the European Commission published 13 recommendations to improve the operation of the Safe Harbor regime (expected to be finalised later this year). The key recommendation directly affecting participating companies is that the privacy policies of self-certified companies should include information on the extent to which US law allows public authorities to collect and process data transferred under the Safe Harbour. In particular companies should be encouraged to indicate in their privacy policies when they apply exceptions to the Safe Harbor Principles to meet national security, public interest or law enforcement requirements. Companies who are looking to register with the Safe Harbor scheme in the short-term should consider implementing the above recommendations applicable to them to be ahead of the new changes to be announced later this year. Companies who are already certified with the Safe Harbor regime should consider the required changes they will need to make when the announcement is made.
Business Visitors – Breaking the Law
W
hen making short business trips to the UK, employers should be aware of the potential pitfalls if overseas employees are found to be breaking UK immigration law. These travellers often utilise the business visitor category, which for some - including US nationals, removes the need for work authorisation and a visa prior to travelling. This category however presents a significant area of risk, not just to individuals but also to their employers, should the route be misused. In a move to streamline the current system and amongst continuing efforts to assist businesses in the economic climate, the Home Office announced that from 24 April 2015 the pre-existing fifteen visitor visa categories will be consolidated in to just four, of which those visiting the UK for business or tourism fall under the new Visitor (standard) category. Whilst guidance dictating what a business visitor can do when on UK soil has been simplified, the list remains limited in scope. Crucially, it is not the length of time a business visitor spends in the UK, but what activity they are doing whilst they are here that is paramount. A business trip may last under a week, but planned activities must fall within those permitted. Helpfully, new rules allow training of clients where training forms part of a global contract with a multinational
BritishAmerican Business NETWORK 2015, VOL. I
and enables business visitors to now charge clients for permitted activities conducted in the UK. However, the recent simplification fails to remove inherent risks faced when overseas employees make short business trips to the UK. Business travellers could face stringent questioning on arrival to the UK regarding their intended activities and the impact to the individual and business may be severe, should an immigration officer believe there is intention to perform productive work. The employee could be refused entry to the UK, face a potential ban and prompt an audit by the Home Office of the immigration activities of any connected UK company. Additionally, there is the danger of reputational damage, with the Home Office focusing on travellers without prior visa clearance – such as US citizens. Businesses should heed immigration considerations before sending employees to the UK and reach out to their immigration advisor for recommendations on the most appropriate route of entry.
Siobhan Owers Senior Manager, Fragomen Worldwide
Charlotte Wills Senior Associate, Fragomen Worldwide
11
I N D U S T RY I N S I G H T S
Meeting the Productivity Challenge
F Oliver Jones UK Head of Multinationals, Corporate Banking, HSBC
inding cheaper, more efficient ways of producing goods and providing services is the ultimate aim of most business leaders. That productivity drive now has global relevance, moving far beyond individual companies. A recent report by the McKinsey Global Institute (MGI) suggests that global GDP growth could slow dramatically as the world comes to terms with stalling growth in the size of the employable population. Between 1964 and 2014, global GDP expanded sixfold driven by an increasing working population and ongoing improvements in productivity. As the growth in the working population slows down the pressure to find further gains in productivity is even greater. Indeed the MGI report suggests that unless productivity fires at full throttle, doubling from its current rate of 1.8% to 4%, then GDP growth will be 40% lower over the next 50 years. As new trade corridors develop throughout the world, significant productivity gains can be made as companies benefit from increased competition and the flow of new ideas and best practice. That knowledge transfer is vital to improving productivity and explains, in part, the drive from the Chinese government to encourage its companies
to invest in overseas businesses. A recent article in ‘The Economist’ cites the rise in China deals in Europe from US$2bn in 2010 to US$18bn in 2014. As China faces increased competition from other low-cost economies it needs to find better and more efficient ways of doing things. Purchasing assets in Europe and beyond will give Chinese companies access to the knowledge that may help them enhance productivity and processes. The ambitious plans of Geely, the Chinese owner of London Taxi Company, to invest in a new black cab plant, highlight the desire of Chinese companies to drive investment in overseas markets. The new plant will house London Taxi Company’s research, development and assembly operations, including the development of electric and ultra-low emission black cabs, which Geely hopes to export throughout the world. Traditionally, there has been a healthy transfer of knowledge between the UK and the US. Now we are seeing China and other fast growing economies go on that journey; a process that can help us meet the productivity challenge. To talk to HSBC about how we help companies expanding globally, email me on oliverjones@hsbc.com AC31988
Communicating to the Masses; Speaking to the Individual
E
xpectations of businesses today are that they are clear and transparent yet intuitive and personal. We have to anticipate what our customers want. Over the last decade the behemoth that is social media has changed the way companies market themselves and ‘talk’ to their consumers and partner businesses. In a homogenous, globalized world the trend for personalization of brands and products is all too apparent from Coca-Cola emblazoning names on their bottles to hotel groups, such as Grange Hotels, pre-empting and fine-tuning our guests’ preferences. Some hotel groups now offer their guests anything from pillow menus to personalized access, particularly through the development of mobile phones as keys. The results? An increase in customer satisfaction, distinction from competitors, reductions in service costs and the enhancement of customer loyalty. Ultimately, personalization can result in the development of specialized services for which guests, or any consumer or business, would be willing to pay a premium. For years US and UK companies have relied on mass marketing to communicate and sell. Now, with new technology available more businesses are gathering a deeper level of customer intelligence needed to deliver relevant, customized promotions. Budgets are better spent targeting those who wish to be informed of the content rather than risk a digital communication that
12
loses some of its original audience due to irrelevance at the expense of a mass mail-out. But how realistic is personalisation for businesses? Will this negatively affect profit margins as more human resources and technology is utilized to cater for this 'marketing tsunami'? When products or services become customized, not just differentiated, consumers are more engaged. Engaged consumers have a higher level of trust and commitment which strengthens their allegiance and emotionally binds them more closely. This, in turn, converts more business and contributes to the bottom line. Personalization techniques are already inherent in most businesses' marketing strategies: segmentation of data; recommendations, particularly by brand ambassadors or partners, and behavioural targeting based on algorithms. Google is all powerful here, almost like a personal concierge service. However, a website that fails to deliver, means the competitors are simply just a click away. In this brave new world of one-sizefits-one, not one-size-fits-all, agility, experimentation and keeping privacy sacred are musts. And us as consumers? We may find ourselves walking a difficult line: between wanting technology to understand us and our personalised experiences, and recoiling from guesses so accurate that they might be taken as intrusive. A personalization paradox.
Claire Farrington Partnership Manager, Grange Hotels
BritishAmerican Business NETWORK 2015, VOL. I
Asset Tracing in a Borderless World
T Ian Casewell Partner, Mintz Group
Christopher Weil Partner, Mintz Group
he online, vir tually borderless world i n which we live enables those wishing to hide misappropriated assets to do so quickly and quietly. Tracing those assets requires a commensurate response that is web-savvy and multi-jurisdictional. Investigative firms like ours receive asset-tracing assignments mostly in two types of situations: (1) someone has embezzled or misdirected assets to themselves, and our client wants them back; or (2) our client has obtained a judgment against a party that it wants to enforce. The investigative challenges can be similar in both these scenarios, because we find that embezzlers and judgment creditors commonly use the same tools to hide what they have: opaque corporate structures, offshore accounts and fiduciaries, related-party transfers, and directing assets to family members. Our asset-tracing unit at Mintz Group studied dozens of cases in detail and extracted recurring patterns in how assets are hidden, and ultimately uncovered. For example, we found that asset hiders rarely act alone, they need trusted parties to help conceal their secret money movements. But big money can cause resentments, and the helpers’ loyalties often shift over time; those who were instrumental in
helping conceal assets can prove to be a vulnerability to the asset hider, and a source to the investigator. Cross-border asset tracing often involves finding undisclosed connections among corporate entities, trusts and their beneficiaries, and then piercing veils among them. Investigators find the lowest-hanging fruit in obscure public records, like mortgages and financing statements that reveal banking relationships, and customs records of shipped goods. Long before judgment-enforcement day, at the beginning of business relationships, few parties are completely candid about the depth of their pockets. We help our clients test, rather than blindly rely on, other parties’ representations about their financial condition. Research shows that most people lie about their assets, even in relatively friendly contexts, such as when asking their banker for a mortgage (when most people exaggerate their wealth), or briefing their financial advisor (when most people under-disclose what they own). In a borderless world of deals among virtual strangers, and particularly when it comes to money, trust but trace. For f u r t he r i n for m at ion about the Mintz Group visit www.mintzgroup.com. n
Injured Servicemen and Veterans participate in the Simpson Cup
G
regg Stevenson is an unlikely 15-handicap golfer, but then it is even more unlikely the former sapper with 24 Commando Engineer Regiment is even here today. In 2009 Gregg suffered horrific injuries, losing both his legs, when he stepped on an improvised explosive device (IED) while on patrol in Afghanistan. Since that day in March 2009 his physical and mental recovery has been remarkable. Much of this recovery he says is down to the game of golf and the On Course Foundation, a charity which provides long-term benefits for individuals like Gregg (pictured), through regular nationwide golf skills and employment events. “As a proud and devoted soldier, the British Army was my life” he said. “I was completely lost and devastated
BritishAmerican Business NETWORK 2015, VOL. I
when I realised that my military career had to come to an end. But through the On Course Foundation, I found a new lease of life with a clear sense of direction. With their help and understanding, I was able to embark on a very different but equally rewarding career.” In October of last year Gregg captained team GB in the third staging of the Simpson Cup, a Ryder Cup styled event which pitches 12 injured Servicemen and veterans from the UK against their American counterparts. All competitors are members of the On Course Foundation (now operating on both sides of the pond) and aims to raise funds and awareness for the Foundation. With Team GB taking convincing victories at TPC Sawgrass and Royal Lytham and St Anne’s in 2012 and 2013 respectively, USA clawed a much needed victory at Congressional Country Club last year. This year the tournament returns to British soil at Royal St George’s Golf Club in Kent, with Gregg and his teammates looking for retribution and Team USA hoping the settle the score 2-2. To learn more, and find out about how to support the On Course Foundation and Simpson Cup please visit the websites below: www.oncoursefoundation.com www.simpsoncup.com
John Simpson President and Founder of The Simpson Cup
13
POLICY AND FORUMS
Women’s Forum As the world’s leading professional staffing business, Hays’ clients are increasingly keen to understand more about the motivations that drive talented, professional women in their careers and to support them with a professional and personal development programme. According to the findings of the 2015 Hays Global Gender Diversity survey, taken from 6000 respondents across 31 countries, more women than men think that the sexes are not paid or rewarded equally. Moreover, in the UK, the survey found that only 44% of women, compared to 80% of men, feel the same career opportunities are available to equally capable colleagues regardless of gender. All of this suggests that many in the workplace, including those in senior and management level positions – the majority of which are men – still fail to see any inequality when it comes to pay and career opportunities between the sexes1 . This lack of recognition is a real obstacle to change and it is clear that cultural and workplace perspective changes are needed if we are to make inroads with this issue. By improving access to, and positively developing talented women, many organisations will be better positioned to grow their business and secure future success. While the Hays Leading Women network is strong, we have found a valuable additional partner in the BAB Women’s Forum. The BAB Women’s forum offers a rich and impressive programme of activities which strengthens and complements much of the work Hays Leading Women has done to support the advancement of women in the workplace.
We actively participate in the BAB Women’s Forum which offers a rich and diverse programme of inspirational speakers, practical workshops and seminars and networking opportunities for professional women. We secure value from the Forum by inviting our own talented women to the events as well as inviting clients to join us. The feedback every time from our staff and guests is always glowing. Our active participation in the BAB Women’s Forum reflects very favourably on us both as employers as well as recruiters of choice as it demonstrates our ongoing commitment to supporting talented female professionals, as they navigate and progress their careers. Recent Forum events have included ‘An Evening with Nicola Horlick, CEO Money & Co and The City’s first “Superwoman” ’, ‘Women’s Forum: Building a Powerful Personal Brand’ where the panel discussed the key factors when deciding your personal brand and how to maintain and build this using tools such as social media. ‘The Changing Face of Leadership – Profiling the 21st Century CEO’ where speakers discussed what makes an inclusive leader and how such attributes can add value to a company and ‘Women in Technology – Contributing to the Innovation Story’ where some of the leading women in the technology sector spoke about their role in innovating the sector. BAB is committed to ensuring that every Women’s Forum event delivers an experience where those who attend leave feeling considerably more informed, inspired and connected than when they arrived. 1
h ttp://hays.co.uk/cs/groups/hays_common/@uk/@content/ documents/digitalasset/hays_1338324.pdf
Yvonne Smyth Director and Head of Diversity, Hays PLC
At our most recent Women’s Forum event held on June 16th, we were delighted to welcome Dame Fiona Woolf CBE, Senior Partner at CMS Cameron McKenna and the most recent Lord Mayor of London in 2013/14. At our event, Dame Fiona, one of the world’s leading energy lawyers, updated us on her ongoing work with the campaign as well as taking a more specific look at the importance of the role that middle management plays in the progression of women in the workplace, which has been identified as a key driver of success.. To view this event please visit www.babinc.org/events
Above: LTR: Yvonne Smyth, Director and Head of Diversity, Hays PLC; Nicola Horlick, CEO, Money & Co. and Katie Banham, Director of Events, BAB
14
BritishAmerican Business NETWORK 2015, VOL. I
POLICY WORLD: WHAT’S NEW? AN UPDATE FROM EMANUEL ADAM, OUR NEW POLICY AND PUBLIC AFFAIRS MANAGER
Emanuel Adam Policy and Public Affairs Manager eadam@babinc.org +44 (0)20 7290 9885 Follow Emanuel on Twitter @EmanueAdam
On 30th of January 2015, we launched our report ‘Local, Specific, Tangible – How a EU-US trade and investment partnership can help businesspeople and their companies in the UK’ hosted by the UK’s Permanent Representative to the EU, Ivan Rogers, in Brussels. This report is a summary of the knowledge we had obtained about the daily realities, best practices and barriers to trade between the UK and the US on our 18 month long national roadshow series across the UK. Featuring 16 case studies from mostly small – and medium-sized companies across the UK, the report shows that companies have much to gain from a Transatlantic Trade and Investment Partnership (TTIP) agreement as it will address many of the barriers they face. Their stories make a case for why business and local economies stand to benefits from a trade agreement, and if this is the case for the UK, it is likely to be true elsewhere. Widely endorsed by UK, EU and US government and business leaders, this report is also an example of how BAB, with its unique transatlantic brand and heritage, can actively shape the policy debate on an important issue such as TTIP. Following its success, we have just launched our 2nd roadshow series ‘Open for Business’ (Read more on our unique approach to policy advocacy and the ‘Open for Business’ series on page 9) BAB’s transatlantic brand and heritage, with the UK-US economic relationship at its heart, is the key element and ‘USP’ in our advocacy work on policy issues with governments. Over the past few months, we have worked hard to establish the base for an even more efficient policy platform in our organisation to discuss and advocate for specific policy issues on behalf of our membership. Reflecting the structure of our membership, we have identified four key areas as our key policy priorities – Transatlantic Trade and Investment Partnership (TTIP), European Single Market, Capital Markets and Financial Services and Competiveness - all issues that greatly influence the UK/EU and US as attractive destinations for business. Most of our policy-related activities will be built around these priorities, together with a new offering of policy updates, events and communication activities. Recent examples of our work include an informal roundtable with Jeff Weiss, Senior Advisor for Standards and Global Regulatory Policy at US Commerce;
BritishAmerican Business NETWORK 2015, VOL. I
a Policymaker Roundtable with Christina Peters, Chief Privacy Officer at IBM, and a BAB/BABC letter in response to the UK Airports Commission on the planned airport expansion in the South East. We provided witnesses to two Parliament hearings and spoke at numerous events. We also continue our active engagement with our BABC chapters on policy in the UK and the US.
Local, Specific, Tangible was released in 2015
Besides TTIP, one of the main priorities in the upcoming months will be the development of an action plan around the debate on the UK’s membership of the EU. A guiding element for our work will be the role of US FDI in the UK and the UK’s role as a ‘gateway’ to the EU Single Market. Another key project this summer is the development of BAB’s 1st ‘Policy Manifesto’. This special report will feature key policy objectives we want to see addressed by Government in 2015-2016. Before its publication, we will invite BAB members, BABC chapters and MPs to feed into the drafting process. Please get in touch at eadam@babinc.org if you are interested to keep up to date with our work and join our Linkedin group ‘Transatlantic Trade and Investment Partnership’ to receive regular updates on the TTIP negotiations. n
15
POLICY AND FORUMS
EU-US TRADE FORUM AN UPDATE FROM JOHN CATER, OUR FORUMS PROGRAMME MANAGER
I
John Cater Forums Programme Manager BritishAmerican Business +44 (0) 20 7290 9874 jcater@babinc.org
16
n November 2014 the BritishAmerican Business EU-US Trade Forum held our first meeting on the topic of the potential UK-EU Membership referendum. At that juncture the feeling around the group was one shared across the country – wait and see what the general election result delivered before making definitive pronouncements. With the polls neck and neck and psephologists predicting a hung parliament the subject of a potential referendum and the consequent fallout seemed cloudy at best. Seven months after our initial meeting and the spectre of the most important economic decision the UK will have to make in modern times is only too real. Across the membership the message has been loud and clear – the UK must continue to play a leading role in a reformed European Union both now and into the long term future. BAB, with our unique heritage as the bridge between all sectors of the US and UK business communities has a vital role to play of the heart of the pro membership campaign. What now As Prime Minister Cameron meets his counterparts across the EU over the next few months, battle lines are beginning to be drawn up, while the results of the PM’s negotiations are still some way off and the exact timing of the referendum is still be to be confirmed we at BAB are determined to avoid complacency. Guided by our members we intend on launching a positive, fact based, nationwide campaign in support of the UK’s continued membership of a reinvigorated EU, positively emphasising the vital economic case for our access to the European single market, the appeal of the UK to Foreign Direct Investment due to our membership of the EU, the access our exporters (both multinationals and supply chain SMEs) enjoy and the knock on impact on jobs, growth and investment withdrawal would create. As well as underlining the significance of being a part of a market place of over half a billion people we will continue to celebrate the EU’s role as a global powerhouse in facilitating international trade (most notably for BAB members – the Transatlantic Trade and Investment Partnership – TTIP) and as a regulatory and standards leader. We have listened to voices across the BAB membership in London and from other chapters of the UK and the US and will remain steadfast and committed in our advocacy. Whilst the EU-US Trade Forum will coordinate our work we implore all members to join us in our efforts both in London and across the UK to secure the UK’s continued membership in a reinvigorated EU.
Purpose of the Forums BAB has a large and diverse membership committed to pursuing their transatlantic business priorities. These are often achieved through opportunities provided by BAB networks and event platforms, sometimes in collaboration with other like-minded business-focused organisations. The forums play a vital role in developing the networks, policies, themes, events and other activities that are a central component of BAB’s ongoing value to its members. Activities are grouped around three themes – Networking, Intelligence and Advocacy. BAB has a unique, cross-sector transatlantic character that presents a strong basis for engaging with governments and advocating effective, evidence-based and strategic approaches to the wide range of regulatory challenges faced by transatlantic business on a daily basis. These challenges are both bilateral (e.g. between the UK or EU and the US), and also, increasingly, in the third country marketplace (e.g. other than in the US or the EU Single Market) as our members seek to find common cause in establishing a global level playing field for business. As a network based on insights, expertise, and the cross-pollination of ideas, BAB Forums are also a catalyst for the valuable relationships that BAB seeks to nurture and sustain as intrinsic to its mission and heritage. n
UPCOMING FORUM EVENT Wednesday 1st July SME Forum: Can the UK take the US crown when it comes to producing entrepreneurs? The United States is widely acknowledged as the best country in which to be an entrepreneur and while the UK is a strong competitor, can it ever take this crown from the US? At this BAB SME Forum briefing, our panel of expert speakers will discuss: • The key components that help to build a strong environment for fostering entrepreneurial spirit including financial support, education and talent, tax and regulation, government support and national culture. • The comparisons between the US and UK’s approach to these factors. • Recom mendat ions of what busi ness a nd government can do to help budding entrepreneurs. Visit babinc.org/events to register.
BritishAmerican Business NETWORK 2015, VOL. I
AU T H O R S P OT L I G H T PREVENTING VIOLENT CONFLICT IN AFRICA Horizontal inequalities are root causes of violent conflict in Africa. Yet, people take actions not because of statistical data on inequalities, of which they might not be aware, but because of injustices they perceive. This volume analyzes the results of original surveys with over 3,000 respondents in African cities and towns, exposing clear discrepancies between objective inequalities and people’s subjective perceptions. The contributors examine experiences in country pairs and probe into the reasons why neighbouring countries, sharing common historical traits, sometimes took contrasting pathways of peace and violent conflict. Combining quantitative analysis and qualitative anatomy of historical experiences of conflict and reconciliation in Rwanda, Burundi, Ghana, Côte d’Ivoire, South Africa, Zimbabwe, Uganda, Tanzania, Kenya and Nigeria, the study brings forward a set of policy recommendations for development practitioners. This work further addresses the issue of institutional choice and reveals how sustainable power-sharing and decentralization contribute to political stability in Africa. Thandika was honored with The AfricaProf. Thandika America Institute’s 2014 Distinguished Alumnus Mkandawire Award at their annual gala. AAI is a member of London School of BritishAmerican Business in New York.n Economics
SECRETS OF THE NATIONAL ARCHIVES The National Archives is one of the most remarkable collections of documents in the world, holding over 120 miles of papers. In 2010 the staff at the Archives were asked to select their favorite document. The results of this poll form the basis of this book, skillfully curated by bestselling author Richard Taylor, who is also a partner at International Law Firm DLA Piper. Each of the documents has a timeless quality, acting as a true testament to a moment in history. The Magna Carta is a document sealed in a damp field in Surrey, yet is deferred to centuries later by Governments and Courts around the world; a parchment letter written by a terrified young girl pleading for her life paves the way for the girl to become Elizabeth I; the first example of musical notation is discovered on the back of a tax form; the actual telegram sent from a sinking Titanic remains heart-rending today; a ship's log written by Captain Cook, at anchor in Botany Bay, records his first encounter with Australian Aborigines. Far from being dusty documents from the past, these papers twinkle with life and resonate powerfully today. Richard Taylor Fully illustrated, this book allows us to glimpse Partner history as it really happened. n DLA Piper
18
CHANGE YOUR SPACE, CHANGE YOUR CULTURE: HOW ENGAGING WORKSPACES LEAD TO TRANSFORMATION AND GROWTH 50% of employees venture to work each day wishing they were going somewhere else and another 20% actively undermine people and process in their workplace. An industrial era shadow hangs over the work environment – one that should be emerging as a platform for a highly networked, team-based and transparent workforce yet we are using outdated models to create outdated environments. The physical workplace plays a vital role in both strategy and revealing the culture that can enable engagement. Space is the catalyst for building desired cultures within organizations and “Change Your Space, Change Your Culture” represents over 2 years of work, with more than 30 individuals in 8 different summits to address this ‘wicked problem’. Read about the journeys of more than a dozen companies who tackled this problem to succeed in leveraging space to disrupt old habits and behaviors – bridging space to sustainable cultures of innovation and engagement. n
Mabel Casey VP of Global Marketing Haworth
THE POWER OF WE In The Power of We, Jonathan Tisch, one of today’s most imaginative and influential executives, explains how to achieve lasting success through creative partnerships. In his appealing and personal style, Tisch discusses how he developed his leadership philosophy through a lifetime of adventures in the travel and tourism industry, and shows how it can be applied anywhere – not only in business but also in community service, government, and everyday life. Filled with in-depth insights and practical advice, Tisch provides a blueprint for achieving enduring success through partnerships that empower employees, satisfy customers, contribute to communities, and improve the bottom line. Revealing how smart leaders can do well and do good at the same time, he demonstrates how partnerships can solve real problems and drive sizable profits. Entertaining, informative, and filled with unique, revealing, and sometimes hilarious stories, The Power of We shows how bringing people together around common goals can make life in business both fun and deeply Jonathan Tisch rewarding. n Chairman & CEO Loews Hotels
BritishAmerican Business NETWORK 2015, VOL. I
EVENT HIGHLIGHTS: LONDON
Annual Christmas Luncheon 2014 On Tuesday 9 December 2014, our Annual Christmas Luncheon returned to the iconic Dorchester Hotel for a wonderful afternoon of networking and entertainment. Over 400 of our members enjoyed a festive themed lunch with our yearly raffle which included business class flights, FA Cup Semi-final tickets, stunning jewellery and dining experiences at luxury restaurants.
Above: BAB chairman Nicholas Walsh welcomes members and guests
Above: BAB members network in the stunning Dorchester reception before lunch
Above: CEO Jeffries Briginshaw and BAB chairman Nicholas Walsh get into the Christmas spirit with members
Above: The winning raffle ticket prize winners are chosen
WITH THANKS TO OUR SPONSORS:
PRIZE DONORS INCLUDE:
AEG Europe, AIG, American Airlines, Andaz Liverpool Street, Arsenal Football Club, A JW Marriott Hotel, The Athenaeum Hotel, British Airways, Barclays, Bvlgari Hotel & Residences, Chewton Glen Hotel, Coach, Delta Air Lines, The Dorchester, Fortnum & Mason, Grange Hotels, Hard Rock CafĂŠ, Corporate Service at Harrods, Hyatt Regency Churchill, IMG UK, Links Of London, LOVEtheatre.com, London Philharmonic Orchestra, Mason Rose, Moschino, National Theatre, New Balance, NFL, Radisson Edwardian MayFair, Smythson of Bond Street, United Airlines, Universal Music, Virgin Atlantic Airlines, Club Wembley
BritishAmerican Business NETWORK 2015, VOL. I
19
EVENT HIGHLIGHTS: LONDON
Business Briefing: The Tech World in 2015: Trends & Predictions
London Insight Series Presents: UK General Election – Outlook and Predictions Hosted by EY On Wednesday 28th January, our panel of expert speakers, Merryn Somerset Webb, Editor-in-Chief of MoneyWeek, Philip Stephens, Associate Editor of The Financial Times, and Simon Wells, Chief UK Economist at HSBC, examined the prospects and potential implications of the 2015 General Election. The discussion included how an EU referendum might have an impact upon British and US business as well as other foreign investors.
Sponsored by Deloitte On Thursday 5th February, we got the inside track on the key predictions and trends in Technology, Media and Telecommunications in 2015. Speakers Paul Lee, of Deloitte, and Chris Duncan, of News UK, discussed the latest on traditional media versus digital platforms, the business potential of drones, and the impact of mobile technology on retail and supply chains.
Business Briefing: “Scarcity and Waste”
Sponsored by The International New York Times and The Syngenta Photography Award On Wednesday 11th March, we joined The International New York Times at Somerset House for an inspiring briefing that aimed to explore solutions to the paradox of food and water scarcity and tremendous waste caused by the planet. After the briefing, guests were invited to view the thought provoking exhibition at Somerset House.
20
London Spring Networking Reception Sponsored by HSBC and Hosted by Bvlgari Hotel & Residences BAB’s annual spring networking reception took place on Tuesday March 10th at the elegant Bvlgari Hotel in Knightsbridge. Guests who attended enjoyed a wonderful evening of networking, drinks and canapés.
BritishAmerican Business NETWORK 2015, VOL. I
Additional London Events »» Young Professionals Series: Speed Networking
Re ce n t Bu s i n ess a n d G ove r n m e n t Le a d e rs a t o u r Lo n d o n Eve n t s
»» An Evening with the London Philharmonic Orchestra »» Financial Services & Insurance Forum: Economic Outlook 2015 – Stalled Recoveries or the New Normal? »» CEO Roundtable with Mark Thompson, CEO, The New York Times Company: “Times of Change – Managing The Digital Transition” »» Women’s Forum: An Evening with Nicola Horlick, CEO Money & Co »» EU-US Trade Forum: “Smart Sanctions, Smart Compliance and 21st Century Statecraft” »» Chairman’s Lunch »» Opportunity in Wisconsin Networking Reception »» BAB Theatre Night: The Scottsboro Boys
CEO Roundtable with Ian Davis, Chairman, Rolls Royce: “Effective Boards – The Challenge of Leadership”
CEO Roundtable with Robert Thomson, CEO of News Corp: “Mass Media, Mass Migration”
CEO Roundtable with Dominic Barton, Global Managing Director, McKinsey & Company: ‘Re-charging Global Growth’
Policy Roundtable with the Rt Hon Ed Balls MP, Shadow Chancellor of the Exchequer
»» Women’s Forum: Building a Powerful Personal Brand »» Annual Christmas Luncheon at The Dorchester
S p e c i a l Th a n ks to O u r Re ce n t Eve n t S p o n s o rs a n d H o st s Hosts >> >> >> >> >> >> >> >> >> >> >> >> >> >> >>
Sponsors
Aberdeen Asset Management PLC Baker & McKenzie LLP Barclays Bvlgari Hotel & Residences Citi Colliers International The Dorchester EY Grange Hotels Jones Lang LaSalle London Philharmonic Orchestra McKinsey & Company News UK Shearman & Sterling LLP Squire Patton Boggs
BritishAmerican Business NETWORK 2015, VOL. I
21
E V E N T H I G H L I G H T S : N E W YO R K Protecting the Marketplace: Cyber Threats and Your Business Sponsor BT Group joined experts from Bank of America, The Boston Consulting Group, and Zurich Insurance to discuss current trends in cyber security, how IT practice and risk impacts the operations of the firm as a whole, and how we can all be working towards a safer and better-protected marketplace.
Launch of New York City Football Club
It’s not every day you get to help launch a new sports franchise in New York City. We recently welcomed City Football Group to our membership, parent company of Manchester City Football Club and the new New York City Football Club. NYCFC hosted our members in their New York office’s before the start of the season to introduce the new franchise and meet the wider membership. We were also honored to welcome soccer legend Claudio Reyna.
An Evening with Boris Johnson
We welcomed the Mayor of London, Boris Johnson at KPMG’s midtown office for an evening cocktail reception. Joining the mayor, our members, and guests was also a delegation of business leaders from London’s fintech sector. Special thanks to KPMG and Zurich Insurance, our Ambassadorial Briefing Series Co-Sponsors.
BAB Pub Quiz Our member companies competed for prizes and bragging rights at our Fall Pub Quiz at The Churchill Tavern. Congratulations to our winning teams and thanks to our sponsor Truphone and prize-donor Margot Astrachan Production for ensuring a great time was had by all!
22
BritishAmerican Business NETWORK 2015, VOL. I
BAB Rings Closing Bell at The New York Stock Exchange On Friday, April 24th, BritishAmerican Business was honored to ring the closing bell at the New York Stock Exchange as we anticipate our 15th anniversary. Joining our staff for the momentous occasion were representatives from several of our member companies including Standard & Poor’s, The Kingstree Group, British American Tradition, ACCA, Handelsbanken, Instinctif Partners, Rooney PC, Laura Devine Attorneys, JW Marriot Essex House, and Hays Recruitment Specialists. Thanks to NYSE and to our members who were able to join us for this special occasion.
BritishAmerican Business NETWORK 2015, VOL. I
23
UPCOMING EVENTS
London Tuesday 23rd Policymaker Roundtable with David O’Sullivan, EU Ambassador to the USA: The European Union and The United States – TTIP and Beyond Sponsored by EY and Hosted by King and Spalding
June Tuesday 16th Women’s Forum: An Evening with Dame Fiona Woolf CBE “The Squeezed Middle” Sponsored by Hays and Hosted by Orrick Herrington & Sutcliffe Thursday 18th Policymaker Roundtable with Sir Mark Lyall Grant, former UK Permanent Representative to the United Nations Hosted by Grange Hotels Thursday 18th Open for Business: What a transatlantic free trade agreement means to the UK chemicals sector Sponsored by UPS and BT
Thursday 25th Open for Business: What a transatlantic free trade agreement means to the UK food & drink sector Sponsored by UPS and BT
July Wednesday 1st CEO Roundtable with Martin Gilbert, Chief Executive of Aberdeen Asset Management Wednesday 1st SME Forum: Can the UK take the US crown when it comes to producing entrepreneurs Hosted by EY
Tuesday 7th Summer Networking Reception at the SkyBar, Grange Hotel, St Pauls Hosted by Grange Hotels
September Wednesday 9th Policymaker Roundtable with Alan Yarrow, The Lord Mayor of London Hosted by Standard Chartered Wednesday 16th Gala Dinner to celebrate the UK-US transatlantic relationship with Matthew Barzun, US Ambassador to the Court of St James’s Sponsored by BP, HSBC, McKinsey & Company and Wells Fargo Wednesday 30th Women’s Forum Roundtable: Women’s Intracompany Networks as a Business Imperative Hosted by Aberdeen Asset Management
Friday 3rd Chairman’s Lunch Hosted by Reed Smith
New York Wednesday July 22nd CEO Roundtable with Wilbur Ross, Founder & Chairman, WL Ross & Co.
September Friday 18th Rugby World Cup Reception Thursday 24th CEO Roundtable with Jim Smith, CEO, Thomson Reuters
June Thursday 25th Summer Networking Reception Hosted by Burberry Tuesday 30th SME Forum Sponsored by HSBC and Hosted by Andersen Tax
October Wednesday 7th Transatlantic Business Awards Dinner Tuesday 13th Cyber Security Roundtable Sponsored by BAE Systems Applied Intelligence
July
Friday 16th BAB Community Reception Hosted by Work Better
Wednesday 8th An Evening of Innovation Sponsored by Vodafone
Wednesday 21st Annual General Meeting Hosted by KPMG
Thursday 16th Young Professionals Networking Evening
Thursday 22nd EACC Fall Boat Cruise
BritishAmerican Business provides more than 100 occasions annually to connect with your fellow members and build your international business. For further details, please visit our online events calendar at www.babinc.org/events.
24
BritishAmerican Business NETWORK 2015, VOL. I
REGISTER ONLINE AT: WWW.BABINC.ORG/EVENTS
EVENT HIGHLIGHT EACH YEAR WE HAVE A NUMBER OF FLAGSHIP EVENTS NOT TO BE MISSED. REGISTRATION FOR THE FOLLOWING EVENTS IS NOW OPEN SO PLEASE BOOK EARLY TO AVOID DISAPPOINTMENT.
September Gala Dinner On September 16, BritishAmerican Business is delighted to launch our busy autumn season with a Gala Dinner in the beautiful surroundings of Lancaster House. At this prestigious occasion, we will also be joined by Matthew Barzun, the U.S. Ambassador to the Court of St. James’s.
Wednesday 16th September / 19.00 - 22.00 Venue: Lancaster House
Š 2015 United Airlines, Inc. All rights reserved. Flight schedule and equipment subject to change.
SM
shut-eye friendly
Flat-bed seats on every flight from the UK to the U.S.
united.com/flatbed