Network 2015, Volume II, New York by BritishAmerican_Business

2015, VOL. II

NETWORK www.babinc.org

NEW YORK LONDON

What Does

Leadership Look Like?

An Interview with Sir Martin Sorrell CEO of WPP and Chairman of The BritishAmerican Business International Advisory Board

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CONTENTS

2015, VOL. II

NETWORK www.babinc.org

2 A Message from Wendy Mendenhall, Managing Director 3 TRANSATLANTIC COUNCIL

NEW YORK LONDON

What Does

Leadership Look Like?

MEMBER LISTING 4 MEET THE NEW MEMBERS 6 WHAT DOES LEADERSHIP

LOOK LIKE?

An Interview with Sir Martin Sorrell, CEO of WPP and Chairman of the BritishAmerican Business International Advisory Board

An Interview with Sir Martin Sorrell CEO of WPP and Chairman of BritishAmerican Business’ International Advisory Board

BRITISHAMERICAN BUSINESS New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 212 661 4060 Fax: +1 212 661 4074 E-mail: nyinfo@babinc.org @BABNewYork London 75 Brook Street London W1K 4AD Tel: +44 (0)20 7290 9888 Fax: +44 (0)20 7491 9172 E-mail: ukinfo@babinc.org @BABLondon

8 Three Leadership Principles of CSR Success Karen Peetz, President, BNY Mellon 9 Leadership in the Age of Technology An interview with Tom Farley, President, New York Stock Exchange 10 A NEW YORK MINUTE Jolie Hunt, Principle, Hunt & Gather 11 AUTHOR SPOTLIGHT

INDUSTRY INSIGHTS 12 Creating Long Term Value in Government and Business Eric Cantor, Vice Chairman and Managing Director, Moelis & Company The Power of People: Using Talent to Drive Breakthrough Innovation John Sviokla, Principle, Global Thought Leadership Leader, PWC

Website: www.babinc.org EDITOR Andrew Boyd aboyd@babinc.org Photos by Elsa Ruiz, Marc Hall and Jerry Speier

13 Strategic Sourcing Benefits Travelers and the Company’s Bottom Line Jake Cefolia, VP, Atlantic & Pacific Sales, United Airlines

BritishAmerican Business NETWORK 2015, VOL. II

Five Tips for the Time-Constrained Board Bill Huyett, Director and Rodney Zemmel, Managing Partner, Northeast, McKinsey & Company 14 The State of the UK/USA Special Relationship Ceasar N. Anquillare, Chairman and Chief Executive Officer, Winchester Capital Four Steps to Adopting Analytics as a HR Lifestyle Usha Mirchandani, Partner, Talent, Insight & Analytics, Aon Hewitt 15 The Threat from Within Marc Carletti, Head of Global Banking & Financial Markets, BT The Valley Meets the Street Matthew Bishop, Globalisation Editor, The Economist 16 Defining Procurement Success Jonathan Cooper-Bagnall, Executive Vice-President and Commercial Director, Proxima How to Spot Commando Entrepreneurs in Your Organization Damian McKinney, Founder and CEO, McKinney Rogers 17 Crossing the Pond: US and UK Employee Issues David McManus, Pulina Whitaker and Eric Bord, Partners, Morgan Lewis 18 POLICY UPDATE

PROGRAM HIGHLIGHTS 19 New York Program Highlights 22 London Program Highlights

FIVE INSPIRING BUSINESS LEADERS IN 2015

n keeping with our theme of leadership, we are delighted to honor five inspiring business leaders at our 2015 Transatlantic Business Awards Dinner at The Pierre Hotel in New York on October 7th. Let me share with you why I think their leadership stands out in the global business community. For more details on the Dinner, visit www.babinc.org/events.

Sir Win Bischoff

Wendy Mendenhall Managing Director BritishAmerican Business wmendenhall@babinc.org

Sir Win has a wealth of experience in high-profile, leading positions throughout the transatlantic investment banking community. He was CEO and then Chairman of Schroders plc (1984-2000), Chairman of Citigroup Europe (2000-2009) and interim CEO and then Chairman of Citigroup Inc (2007-2009). Since 1983 he has served on the boards of 10 major public companies in the US, UK, and Europe. He also led Lloyds Banking Group as its Chairman through some challenging times for the historic brand (2009-2014). Currently, he serves as Chairman of JP Morgan Securities. His outstanding career speaks for itself, but as the Chairman of the UK’s Financial Reporting Council, he continues to lead the financial services sector by encouraging good governance, reporting, and cooperation with regulators to encourage continuous and substantive investment.

Shortly afterwards, he was appointed Group CEO of BP, leading the company through a challenging period of regulatory, market, and geopolitical uncertainties.

Helena Morrissey CBE During her time as CEO of Newton Investment Management, Helena has also led the way in advocating for more diversity in the boardroom. In 2010, Helena founded the 30percent Club, an initiative aimed at achieving 30percent women on UK corporate boards by 2015 through voluntary, business-led change. The 30percent Club is characterized by men and women working together to achieve progress; the 150 members of the Club are company Chairs and CEOs. At the time of its launch, just 12.5percent of FTSE-100 board directors were women; this has now more than doubled to 25.4percent. In 2012 she was appointed CBE by the Queen in the New Year’s Honours list. The phenomenon of under-represented women at the top of organizations including company boards is clearly a global issue and 30percent Clubs have now been launched in the US, Hong Kong, Ireland, East and Southern Africa, Australia, Canada, the Gulf Cooperation Countries and Malaysia. Beyond being a leader in the world of institutional investment, and leading effective change in diversity and corporate governance, Helena also has nine children, six daughters and three sons whose ages range from 6 to 23.

Dominic Casserly As the CEO of Willis Group Holdings PLC, Dominic leads 18,000 professionals across the globe as they provide risk advisory, insurance brokering, and human capital services to the world’s corporate leaders. Under his leadership, Willis has taken a prominent role in the global effort to improve major disaster relief partnering with the United Nations. Dominic brings his leadership and talent to bear outside the corporate world as well, advising policymakers on the former UK Prime Minister’s Business Council, serving on the UK’s Confederation of British Industry (CBI) CEO Climate Change Taskforce, and serving on The Lord Davies Review on increasing the number of women on corporate boards. He is also Chairman of the UK Charities Aid Foundation and a board member of the National Theatre in London.

Bob Dudley Bob joined BP in 1999 and has held a variety of roles in the firm from strategic postings in Asia and Russia, to running its Alternative and Renewable Energies group. Bob is probably best known for his leadership in a time of crisis as President of BP’s Gulf Coast Restoration organization in the USA. He oversaw the cleaning work in the Gulf, cooperation with authorities, informing the public about BP's activities surrounding the disaster, and analyzing the damage caused by the disaster.

Mark Piggot KBE As Executive Chairman of PACCAR, Mark has brought life and vitality to the UK manufacturing sector and also shown remarkable leadership through his charitable work and support. During Mark’s tenure as CEO/Chairman of the company, shareholder returns were over 1700percent. Mark’s leadership has guided PACCAR from being a family-run regional manufacturer to its current status as a Fortune 200 company and a global leader with business on six continents and in 100 countries. Besides Mark’s guidance in the business community, he also serves on the board of Franklin Templeton, the Royal Shakespeare Company America, the British Library Foundation and Trinity College Foundation. Mark’s leadership in business, education, and the arts has been recognized by many countries and organizations included the National Medal of Technology (USA), Knight Commander of the Order of the British Empire (UK), Order of Arts and Letters (France), Officer of the Orange-Nassau (Netherlands) and Commander of the Order of the Crown (Belgium). I hope you will join us in honoring and hearing from these outstanding leaders in person at The Pierre Hotel in New York City on October 7th. For more information visit www.babinc.org/events. n

BritishAmerican Business NETWORK 2015, VOL. II

Tr a n s a t l a n t i c C o u n c i l M e m b e r s

TRANSATLANTIC COUNCIL MEMBERS Transatlantic Council Membership is reserved for a select group of BritishAmerican Business’ 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.

A.T. Kearney

Aberdeen Asset Management

Burson-Marsteller

Ace Group

CBRE

AIG

Chadbourne & Parke

Akin Gump Strauss Hauer & Feld

Chubb & Son

AlixPartners Alston & Bird American Airlines ANZ Aon Hewitt Aon Risk Solutions Aquiline Capital Partners Arup Aspen Insurance Holdings Limited BAE Systems Applied Intelligence Bank of America Merrill Lynch Barclays BBC Worldwide North America

CIT Citi City Football Group Cognizant

Hakluyt & Company (North America) Hearst Corporation Heidrick & Struggles Hill+Knowlton Strategies Hinduja Group of Companies HSBC Bank USA IBM Corporation INSEAD

McKinsey & Company

Standard Chartered Bank

Mintz Group; The Moelis & Company

State Street Corporation Sullivan & Cromwell

Monitise Group Morgan Lewis & Bockius Mountbatten Institute

Tata Consultancy Services thebigword

NASDAQ

Thomson Reuters

National Grid

Tradeweb

News Corporation

Turner & Townsend

Coller Capital Colliers International

Invest Northern Ireland

NFL

Corsair Capital

IPSA International

Norton Rose Fulbright

Cushman & Wakefield

Jaguar Land Rover

NYSE

Debevoise & Plimpton

JetBlue Airways

NYU Stern School of Business

Deloitte.

Joele Frank, Wilkinson Brimmer Katcher

PA Consulting Group

Virgin Atlantic Airways

Pfizer

VisitBritain

PR Newswire Association

Vodafone Global Enterprise

Delta Air Lines Dentons Deutsche Bank DLA Piper

JPMorgan Chase & Co. Just Marketing JWT Kingstree Group U.S., The

Economist Group, The

BGD Holdings

EHS Partners

BLJ Worldwide

EMC Corporation

Langham Place, Fifth Avenue

Bloomberg

Exxon Mobil Corporation

Latham & Watkins

BNY Mellon

Legg Mason

Boots Retail USA

Finsbury

LexisNexis

Boston Consulting Group; The

Fragomen Del Rey Bernsen & Loewy

British Airways

Simon & Partners

InterContinental New York Barclay

Beazley Group

BP America

McKinney Rogers

FTI Consulting

Korn Ferry KPMG

Linklaters Lloyd’s America Lloyds Bank

Promontory Financial Group Prosek Partners

PwC Relationship Capital Partners

Winchester Capital

Royal Bank of Scotland, The

WL Ross & Co.

Russell Reynolds Associates Samba Brands Management

WPP Xerox Corporation

Santander

Goldman Sachs & Co.

McGraw Hill Financial

Siemens Financial Services

BritishAmerican Business NETWORK 2015, VOL. II

Willis Group Holdings

Witt/Kieffer

Sheppard Mullin Richter & Hampton

Brunswick Group

Wells Fargo & Company

Risona

Marsh & McLennan Companies

Brookfield Office Properties

WeiserMazars

Withers Bergman

Gibney Anthony & Flaherty

General Atlantic

United Airlines

Richard Attias & Associates

LSG (US)

Broadridge Financial Solutions

UK Trade & Investment

Proxima Group

Schroders Investment Management North America

FTSE Russell

UBS

Young & Rubicam Group Zurich Insurance Company

MEET THE NEW MEMBERS

New Board and IAB Members BAB is governed by a transatlantic Board of Directors, led by our Chairman, Nicholas Walsh, Senior Advisor, AIG and our Deputy Chairman/President, 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: ERIC BENDICT Managing Director Alix Partners

NEW INTERNATIONAL ADVISORY BOARD MEMBERS

MATT TUCK Head of Global Corporate Banking Barclays

MARY KAY FULLER Partner KPMG

ANY RUBIN Chairman Pentland Brands ANN SARNOFF President BBC Worldwide N.A.

TRUETT TATE Co-Head of Europe, Middle East, and America (EMEA) and CEO of America ANZ Bank

DYLAN TAYLOR CEO Colliers International

Transatlantic Council Members NASDAQ ANZ

www.nasdaq.com

www.anz.com

US-based equities exchange to a diversified global financial technology company. Today, the company is firmly established as a technology provider—and strives to be the leading technology, trading and intelligence provider to the capital markets. In the first half of 2013, this transformation intensified with the acquisitions of the Thomson Reuters IR, PR and Multimedia Solutions businesses and eSpeed. Today, US equities trading contributes less than 10percent of total net revenues and our transaction-based businesses as a whole contribute approximately less than 30percent.

ANZ is a leading Australia bank founded in 1835. WE are one of the fine largest listed companies in Australia and the number one bank in New Zealand. We have assets of AU$772.1 Billion. Today, we operate in more than 34 markets across Australia, New Zealand, Asia, Europe, America, and the Middle East.

LANGHAM PLACE, FIFTH AVENUE www.langhamhotels.com/newyork The Langham Place brand is an extension of the heritage and tradition that began with the opening of The Langham, London hotel in 1865, setting the standard in global hospitality and the foundation for luxury innovation and grandeur thereafter. Located on Fifth Avenue at 36th Street, the hotel welcomes individual, business and family travelers with modern luxury in the heart of Manhattan.

RICHARD ATTIAS & ASSOCIATES www.richardattiasassociates.com Richard Attias & Associates is a global strategic consulting firm that creates and implements ideas, initiatives, and platforms in line with our clients’ vision. Our mission is to help corporations, nations, governments, and leaders support their global influence, catalyze innovation, and facilitate the global exchange of ideas and projects.

Corporate Members Advisen Ltd. AKA by Korman Communities Art Newspaper; The Axispoint, Inc. Cambridge in America eg.1

Fitch Learning Institute for the International Education of Students (IES) La Compagnie M&A Advisor; The Marc Fisher Footwear

Principal Search International Inc. Rawlinson & Hunter Ridge Global Solutions Russell Heath Coaching SMA Law Firm Whip Fundraising

Contact To access the online directory of member companies and contacts, please contact Cynthia Xavier for your unique member key and password on 212 338 9462 or cxavier@babinc.org.

BritishAmerican Business NETWORK 2015, VOL. II

SPONSORED CONTENT

Unlocking Your Full Leadership Potential: How Heidrick & Struggles is advising CEOs and Boards to assess leadership style … and what you should know about yours By: Dan Ryan, Partner in Charge, New York City - Heidrick & Struggles

oday, more than ever, senior business leaders recognize that leadership style and culture are crucially important to unleashing an organization’s full potential. How do CEOs and boards of directors best assess whether a prospective leader of an organization has the right leadership style to succeed in a senior role, particularly for an organization in flux? And what can on-the-rise executives learn about their own leadership styles to improve their effectiveness and fit for a role in the corner office?Based on in-depth interviews with more than 150 CEOs from around the world and across business sectors, The CEO Report is one of the most comprehensive, in-depth studies of CEO leadership capabilities. It identifies a suite of integrated skill sets that today’s senior-most leaders leverage to help them grow and thrive in business environments marked by constant change and dissonance of competing stakeholder interests. Heidrick & Struggles, a global executive search and leadership consulting firm, has developed a self-assessment tool called Leadership Signature™ that considers how leaders operate in today’s business environment filled with volatility, uncertainty, complexity and ambiguity (or, in the military vernacular, VUCA). Recently, the Harvard Business Review published an interactive article highlighting eight leadership archetypes uncovered in our firm’s research on personal leadership style, and offering readers the chance to get immediate feedback on their potential strengths, weaknesses, and blind spots — as well as the business settings as leaders they are likely to be most (and least) effective. With a proprietary, 36-item online questionnaire, Leadership Signature™ assesses against eight behavioral patterns that individuals draw on in situations demanding their leadership. The assessment report is intuitive, highlighting the candidate’s pre-dominant two styles, and pinpointing the types of environments where the new leader will likely be impactful. Why is determining leadership behavior and style crucial in a VUCA world? As head of Heidrick & Struggles’ Financial Services Practice for North America, I value an understanding of a leader’s style to help clients find the right fit for demanding roles in a complex industry. Leadership Signature™ will help senior leaders and board directors thoughtfully consider the question, “How will this individual lead?” This assessment is important in finding talent that can adapt to constant

BritishAmerican Business NETWORK 2015, VOL. II

regulatory pressure and trends such as shareholder activism through their different approaches to leadership. “Leadership Signature™ helps Heidrick & Struggles consultants better advise our clients in choosing the right leaders for their organizations,” said Tracy Wolstencroft, Heidrick & Struggles President and Chief Executive Officer. “Insights from Leadership Signature™ will be particularly important as organizations deal with increased

We know that a leader will be more successful if his or her style fits well with the demands of the role and the culture of the organization levels of volatility, uncertainty, complexity and ambiguity. We have consciously designed Leadership Signature™ to consider candidates’ leadership responses in rapidly changing, complex situations.” We know that a leader will be more successful if his or her style fits well with the demands of the role and the culture of the organization—or in the case of an organization requiring transformation, with the organization’s desired new culture. Strong leaders thrive when they are able to use characteristics of their styles to capably address the challenges inherent in their industry and their particular organizations. Next-generation leadership will need to be particularly well-rounded, and willing to gain exposure across multiple business lines in order to succeed in uncertain environments. By recognizing their leadership strengths and blind spots, these individuals can build high-performing teams around them to collectively address the complexities of a volatile world.

LEADERSHIP

What Does

Leadership Look Like? An Interview with Sir Martin Sorrell, CEO of WPP and Chairman of the BritishAmerican Business International Advisory Board

Sir Martin Sorrell founded WPP, the world’s leading advertising and marketing services group in 1985 and has been chief executive throughout. WPP companies, which include some of the most eminent agencies in the business, provide clients with advertising, media investment management, data investment management, public relations and public affairs, branding and identity, healthcare communications, direct, digital, promotion and relationship marketing and specialist communications services. Collectively, WPP employs nearly 175,000 people (including associates) in over 3,000 offices in 110 countries. The Group’s worldwide companies include BritishAmerican Business members such as J. Walter Thompson, Young & Rubicam, The Brand Union, Finsbury. Burson-Marstellar, and Hill+Knowlton. Clients include 351 of the Fortune Global 500, all 30 of the Dow Jones 30, 69 of the NASDAQ 100 and 31 of the Fortune e-50. In 2013, WPP had revenues of $17.3 billion and billings of $72.3 billion. Sir Martin actively supports the advancement of international business schools—advising Harvard, IESE, the Indian School of Business and the China Europe International Business School. He has been publicly recognized with a number of awards including the Harvard Business School Alumni Achievement Award. He received a knighthood in January 2000. Sir Martin is a non-executive director of Alpha Topco, the Formula 1 Company and Alcoa. He is on the Executive Committee of the World Economic Forum International Business Council and a member of the Business Council in the US. He is a Trustee of the British Museum, a member of the corporate Advisory Group of the Tate Gallery, and

on the International Advisory Board of The Russian Museum in St. Petersburg. In 2010 he was appointed to the Board of Directors of the Bloomberg Family Foundation. He has served as Chairman of our International Advisory Board since our founding. We were delighted to sit down recently with Sir Martin Sorrell to discuss that perennially important topic, leadership. He responded in his well-known straightforward style: What does effective leadership look like to you? It’s not really for me to pontificate, but I would say, if pushed, that effective leadership revolves around establishing a clear and simple strategy and implementing it – and, of course, communicating it. Who is the one leader (corporate, government, etc.) that has inspired you recently? I don’t know about recently, but I would say my Dad, Lord Weinstock and last, but not, least Sir Jules Thorn. None of whom will be known to you. What does WPP do to encourage leadership and risk-taking across its global network of varied brands? That’s a difficult one in the sense that our clients have become very short-term because of tepid economic growth, low or no inflation and, therefore, little pricing power and the consequent focus on cost. Having said that, because our major investment is in people, that is $12 billion a year out of $19 billion of revenue, our investment is in talent or human capital and the payoff from such investments is

BritishAmerican Business NETWORK 2015, VOL. II

fairly rapid. That’s to say you know pretty soon whether somebody is working effectively or not and it doesn’t take a long gestation period. The nature of our business is such that the investments are longterm investments, which pay off, or should pay off, in the short-term. Having said that, it’s still difficult in the current environment to focus on the long term when your clients are focusing on the short term. For example, in 2014, dividends and buybacks for the S&P 500 exceeded retained earnings. No need to say anymore. How do you and WPP identify and encourage and form new leaders? Are leaders born or made? I think leaders are both born and made. Obviously, there are some people who are better at it than others, but I think it is true to say that you can develop an environment which encourages leadership and growth. We continuously review our top people. Not just our top people maybe, but even people at the so-called “medium” and “lower” levels. We have Fellowship programs and training programs like “The X Factor,” for our female leadership, which encourage diversity and growth of a diverse population. Of course, we have, increasingly, training opportunities. For example, our advertising schools in China and now India. What is the big global issue that you think is in desperate need of better leadership from the business community? The focus on the short-term. i.e., start to focus on the long-term. Clear and simple. What kind of leadership was required of you to turn WPP into the premier marketing and communications parent company in the world?

Sir Martin presenting F-1 racing legend Sir Jackie Stewart with BritishAmerican Business’ award for transatlantic leadership. That’s for others to say. The only comment I would make is that when we started WPP with two people in one room in 1985, our objective was to build a major multinational marketing service as a company. Thinking of your most difficult leadership strategy for the past year, what did it teach you, if anything? One of the most difficult challenges that we have is the technological challenge. There are two buckets of challenges, really. One is geographical, which is reasonably easy to analyze and respond to – e.g., Vietnam, Myanmar, Cuba or even potentially, now Iran. The technological bucket, however, is very difficult. How will we be disintermediated? Will we be disintermediated by two people in a garage? It pays to be paranoid and that’s what you would focus on. How is WPP leading the way in terms of sustainability, diversity and corporate social responsibility? We are taking a lead, I am proud to say. Just look at the reports we produce each year. In additional to our “standard,” multi-awardwinning annual report, we have our sustainability reports. They show first what we do for our communities for the 112 countries that we operate in and then, secondly, what we do with our clients for people in those countries. We lead by example. What advice do you have for the next generation of corporate leaders? Learn Chinese and code. n

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LEADERSHIP

THREE LEADERSHIP PRINCIPLES OF CSR SUCCESS: ALIGN, ARTICULATE, ASSESS

orporate Social Responsibility (CSR) has significantly evolved in the past decade. We now see CEOs and boards recognize that a company’s responsibility to—and impact on—society does not end at community support and environmental initiatives. Companies are increasingly aligning their CSR strategy with their business purpose, creating a broad interdisciplinary approach with a potentially greater impact. At BNY Mellon, social responsibility is deeply imbedded in who we are as Karen Peetz a company. Our CSR practices earn President the trust of our clients and other stakeBNY Mellon holders, promote transparency, and encourage innovation for and investment in a better world. For example, recently we formalized a focus on investment activity that includes both financial returns and positive social and environmental impact, called social finance. We recognized the potential for investors to protect and generate long-term value, while helping drive positive social and environmental change. As we expanded our focus on CSR efforts, we identified three principles for CSR success: align social responsibility with the company’s core business strategies; articulate a clear CSR vision; and regularly assess and evaluate the CSR strategy. Companies align CSR with their core purpose by developing interdisciplinary CSR strategies that are mutually reinforcing and aligned with the company’s role, brand and values. This makes it easier to integrate social responsibility within a business. For BNY Mellon, risk management is among our highest priorities. We have a responsibility to our clients, the financial markets and society to effectively identify and mitigate risk. We emphasize that commitment by explicitly connecting risk and reliability to our CSR strategy. In successful CSR programs, leadership recognizes the need to articulate a clear vision. We developed a framework to guide our initiatives and our employees by crystallizing a CSR statement: Corporate social responsibility is crucial to how we fulfill our role as a major global financial institution. At BNY Mellon, we are invested in market integrity, our people and our world. Our clients trust us every day with their investments, and we depend on our talented and diverse workforce to meet client needs with the highest standards of excellence and integrity. That’s why it’s important that we build an inclusive and supportive environment where our people are empow-

ered to contribute and succeed. Together, we can contribute to the resiliency of global markets and solutions for some of the world’s most pressing issues, building healthy economies and sustainable communities over time. Once the business and CSR strategies are aligned and the CSR vision is established, it’s important to regularly assess and evaluate the CSR strategy to ensure it remains current and focuses on the most critical and relevant CSR areas. In 2014, BNY Mellon refreshed its 2011 materiality assessment and added social finance, as a result. Our strategic focus on social finance is based on our experience with socially responsible investing and ESG integration, as well as our market infrastructure expertise. Company-wide product development is underway to meet clients’ growing interest in social finance. Strategy does not end with business capabilities. It also includes partnering with leading organizations to conduct research, contribute to the conversation and advance the field. BNY Mellon began a partnership with the United Nations Foundation (UNF) in 2014 to support the inclusion of a robust goal calling for broad access to rule of law within the forthcoming post-2015 United Nations’ Sustainable Development Goals (SDGs). BNY Mellon has joined top-tier legal and consulting organizations to create metrics for the UN and its member

Karen Peetz being presented with our 2014 Corporate Social Responsibility Award states to use in measuring success in the implementation of rule of law. We look to advance the rule of law within the SDGs, helping to impact trillions of dollars in investments and billions of lives between 2016 and 2030. Our CSR efforts have resulted in our company being named to the 2014 Dow Jones Sustainability World Index (DJSI World), one of the most highly regarded global sustainability indices. Our business alignment, guiding vision and continuous recalibration of our CSR strategy have allowed us to be among the leaders in CSR. We are excited to explore and pioneer new opportunities to strengthen our impact. It is the right thing to do and it is good for business. n

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LEADERSHIP IN THE AGE OF TECHNOLOGY An interview with Tom Farley, President, New York Stock Exchange

When one thinks of leading tech firms, usually the likes of Apple, IBM, Uber, Tesla come to mind. In what ways can the NYSE be considered a technical innovator? The NYSE has evolved into a tech-oriented financial services firm. We are building the next generation of trading technology designed to enhance consistency, performance and resiliency while also reducing complexity. We are developing a state-of-art surveillance program for our exchanges, which includes a customized technology platform for effective monitoring. And we’re investing in the technology our listed companies use to interact with us. But our evolution is about more than enhancing our technological capabilities. When NYSE’s parent company, Intercontinental Exchange, went public on the NYSE in 2005, it was a five-year-old start-up with roots in engineering and trading technology. Since acquiring the NYSE in 2013, ICE has brought that start-up spirit to a very established organization. For NYSE to continue to be the leading exchange for technology Initial Public Offerings (IPOs), a position we have held since 2012, we must continue to innovate on behalf of our customers. The speed of technological innovation seems to demand leadership that is agile and responsive. How do you cultivate creative flexibility at NYSE? I encourage and empower my colleagues to always think about what’s next for our customers. For example, earlier this year, we made a minority investment in Coinbase, a leading bitcoin wallet, and launched the first exchange-calculated and disseminated bitcoin index, NYXBT. This was done in anticipation of the potential growth of bitcoin and blockchain technologies, with bitcoin values quickly becoming a data point our customers want to follow. We’re willing to take on some risk earlier in the lifecycle of a new technology or asset class if we anticipate growth. Nimble, agile and early-mover are not words traditionally associated with a company that has been around for 223 years, but they are very much ingrained in our culture today. How does the exchange balance risk and innovation? When it comes to innovating on behalf of our customers, our view is that failure can be constructive, as long as we learn from it. We recently announced we would be introducing a midday auction for less active securities, building on the success of our opening and closing auctions.

The open and close at the NYSE are significant volume events that provide price discovery and block facilitation. Does that mean the midday auction will be an automatic success? No, but there is a liquidity crisis in a very large proportion of US listed stocks, largely due to the excessive fragmentation that exists in the market, and as the leading exchange, we are willing to take a risk to address it on behalf of our listed companies. The aim of our Tom Farley midday auction is to provide another President opportunity to aggregate trading New York Stock Exchange interest in lower volume securities, enabling our listed companies to continue to attract investors. What are some unique challenges in leading a storied institution through a marketplace of constant innovation and disruption? All companies have their unique set of challenges—it is the way they respond that sets the leaders apart. Our approach comes back to the core principles of listening to our customers, which is why we chose very early on to play a leading role in the debate about the structure of the US equities market. ICE Chairman and CEO Jeff Sprecher and I met with trading firms and listed companies and the resounding feedback we got was that the market was too complex. We have since advocated for improvements on their behalf as well as made unilateral changes so that in today’s highly complex market, we are able to offer our customers simplicity and transparency. As the leading exchange globally for capital raisings—capital which is used by companies to create new jobs, drive innovation and fuel growth—the NYSE represents the confidence global companies have in the US capital markets. We take that responsibility seriously.

PHOTO CREDITS: NYSE

How has your time at NYSE impacted you as a leader? Before two years ago, my career had focused on the derivatives market, not stocks or listings, and now I am responsible for leading the largest and most visible stock trading and listing venue in the world. I learned quickly that to lead effectively I would need to assemble an extraordinary management team, empower them to lead and then trust them to work their magic. Fast forward to today and I have a talented and diverse team with a kaleidoscope of experiences and viewpoints. I am now a more effective leader because, perhaps out of necessity born of my own relative recent immersion into equities, I was required to trust the experts around me. n

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A N E W YO R K M I N U T E W I T H …

… Jolie Hunt, Principle, Hunt & Gather We sat down recently with Hunt for a quick NEW YORK MINUTE: What’s the wallpaper on your phone and/or computer? My three favorite men: my delicious newborn son, my dedicated husband and my dear dad, who recently passed away. Twitter is… Neat. But not my medium. I show up in person. I don’t want to follow you, I want to see you. What is the last thing you searched on Google? Vox Media. They are venerable. What is the one food you cannot resist? Hershey’s chocolate and peanut butter ice cream. IT’S UNREAL. What drives you absolutely crazy? People who can’t spell your/you’re and cowardly or selfish behavior. What does leadership look like? It’s generous, honest and inspires you to stand taller and sing louder. Coffee, Tea, or…? Iced coffee with sugar free french vanilla coffee mate and a dash of cinnamon. It’s disgustingly wonderful. What’s your favorite novel? Extremely Loud and Incredibly Close by Jonathan Safran Foer.

You don’t have fun when... People aren’t accountable in my life. Whether they’re colleagues, friends or relatives, I need those whom I hold dear to own their stuff and showup. Admitting we’re not perfect is powerful. What do you still find surprising about New York City? The energy. It’s a city of bold creators at every level. Do you have a favorite cocktail? Yes, two: in summer it’s champagne with St Germain on ice; in winter a filthy dirty Belvedere martini, up. When you visit London, what’s your first stop? Sally Emerson and Peter Stothard’s home, and then of course La Petite Maison for the burrata. What is your most memorable vacation? Iceland in 2008 and then going back to get married there in 2012. What’s something about yourself we couldn’t find out from your LinkedIn profile or a Google search? That I had a beautiful friendship with Christopher Hitchens. A dinner he and I had some years ago will remain one of the most cherished memories of my life.

olie Hunt has an extensive background building reputations for some of the world's leading media and technology companies. She served as Chief Marketing & Communications Officer for AOL, and held the role of Senior Vice President, Global Head of Brand & Public Relations at Thomson Reuters. Prior to joining Thomson Reuters, Jolie was the Global Director of Corporate & Business Affairs at IBM, and from 2002 to 2006, she served as Director of Public Relations for the Financial Times. Jolie serves on the boards for Kilroy Realty Corporation, PopTech, The Lowline, the Civilian Public Affairs Council for West Point

Military Academy and The Episcopal School of Los Angeles. She is active in the industry and holds committee and board positions for The Wisemen, Arthur W Page Society and The Seminar. In 2011, she was named ‘In-House Professional of the Year’ by the European Public Relations Consultants Association and received an honorable mention for the PRWeek award ‘PR Professional of the Year.’ She earned a Bachelor of Science from Boston University and completed the Global Executive Program at the Tuck School of Business at Dartmouth College and Spain’s IE Business School in 2010. n

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AUTHOR SPOTLIGHT CULTURAL DNA Why are Americans so positive? Why is China a world leader in manufacturing and India in IT? Why do overseas firms often fail in the US market? What are the emotional forces driving current events in the Middle East? Why are Scandinavian societies and businesses the most equal in the world? Why is there are a Chinatown in most major cities? The answers lie in the deep cultural DNA of these societies. Cultural DNA will take you on a psychological tour of the world to help you get under the skin and productively engage other cultures in our emerging multipolar world. Presenting ground breaking original research and the latest evidence from neuroscience, behavioral genetics, psychology and beyond, the deepest instincts of eight key global cultures are dissected. Each culture has attributes that developed over thousands of years to address unique environmental challenges. This DNA drumbeat reverberates through each society affecting everything, including its economic institutions, consumer psychology, organizational culture and the strengths and weaknesses of its leaders. And as globalization marches on, we can learn important lessons from the world’s distinct societies. Savvy and informed leaders need to understand these forces if they are to make the right calls as they engage global cultures. If you want to succeed in global markets, develop diverse talents and tap into the real potential of Gurnek Bains people everywhere, read Cultural DNA. n Chairman, YSC

THE CONFIDENCE CODE There is a quality that sets some people apart. It is hard to define but easy to recognize. With it you can take on the world; without it, you live stuck at the starting block of your potential. The quality is confidence. But what is confidence, really? Where does it come from, and, most critically, how can we get more of it? In The Confidence Code: The Science and Art of Self-Assurance – What Women Should Know (HarperBusiness), national network journalists Claire Shipman, of “Good Morning America,” and Katty Kay, anchor of “BBC World News America,” combine cutting edge research with stories from prominent women to produce a comprehensive, accessible and practical study of life’s essential ingredient. The Confidence Code reveals confidence really does matter more to success than competence. It shows the confidence gap between men and women is real but that it’s also quite possible to overcome it. n

THE RUGBY WORLD CUP: THE DEFINITIVE PHOTOGRAPHIC HISTORY A visual history of rugby’s greatest sporting event, this beautiful photographic book is a fascinating chronological exploration of the matches, teams, heroes, and surrounding stories of the tournament. Each chapter covers a Rugby World Cup, starting with the inaugural competition in 1987—in which New Zealand confirmed their status as the world’s top rugby nation—and continuing through the historical 1995 Rugby World Cup in South Africa after the end of apartheid and the international sports boycott, England’s fantastic win in 2003 which broke the southern hemisphere’s dominance, and the 2015 qualifiers. The book will also look ahead to Rugby World Cup 2019, with Japan as host country. Each photo has been carefully selected to give a real glimpse into this great tournament. The ideal collectible gift for any rugby fan, written by rugby expert and sports Brendan journalist, Brendan Gallagher. n Gallagher

NO ORDINARY DISRUPTION: THE FOUR GLOBAL FORCES BREAKING ALL THE TRENDS Our intuition about how the world works could well be wrong. We are surprised when new competitors burst on the scene, or businesses protected by large and deep moats find their defenses easily breached, or vast new markets are conjured from nothing. Based on years of research by the McKinsey Global Institute, No Ordinary Disruption is a timely and important analysis of how we need to reset our intuition as a result of the four forces transforming the global economy. The world, especially since the demise of “the Great Moderation,” not only feels different; the data tells us it is different. The rise of emerging markets, the accelerating impact of technology on the natural forces of market competition, an aging world population and the flows of trade, capital and people are simultaneously exercising a radical and transformative impact on businesses and economies around the world. n

Katty Kay and Claire Shipman

Richard Dobbs, James Manyika and Jonathan Woetzel

National Network Journalists

Directors, McKinsey Global Institute

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Creating Long Term Value in Government and Business

Eric Cantor Vice Chairman and Managing Director, Moelis & Company

pen up a newspaper and flip to the national political stories and chances are pretty good the story will include a discussion of the gridlock in Washington. Go to the business section and chances are you will find stories about activists pushing for companies to buy-back stock or issue larger dividends. While seemingly unrelated, much of what is happening in politics and business can be attributed to the rise of short-termism. When political or business leaders lack faith in the ability of policy or a company to generate long-term value, they turn their sights towards short-term gain. In politics this most often takes the form of shunning compromise or incremental progress and instead playing to the most vocal elements of one’s political coalition. On the right you see it with issues like immigration and on the left it was just on full display as Hillary Clinton backslid in her support for trade. A short-term focus means we miss the chance to get economic and fiscal policies in place that can bolster long-term growth. It means businesses fail to make the investments to create the products to drive future profits. And it means American global leadership recedes, creating dangerous vacuums that others compete to fill. So what can be done to combat short-termism?

We need leaders capable of stepping forward and explaining to voters or investors their vision for the future and how the decisions they are making today are necessary to make that vision a reality. It was not that long ago when a business or political leader who wanted to do just that would go to a few key news outlets and opinion leaders, make their case and help define the debate. The rise of social media and an increasingly fragmented traditional media has meant that both in business and politics there are thousands of outlets and opinion leaders all with their own unique audience. The rise of social media and alternatives to traditional media are ultimately good things. But leaders, especially those who came up through the ranks in the old system, have to adjust. Adjusting doesn’t just mean using new means of communication to talk to the people who agree with you. Adjusting means figuring out how the people you hope to convince are getting their information and then using that platform to make your case. At the end of the day it is not going to be changes to the rules of the political process or of corporate governance and investment that deliver us from the ills of short-termism, it will be leaders with the willingness and ability to sell us on their long-term vision. n

The Power of People: Using Talent to Drive Breakthrough Innovation

espite economic uncertainty in various parts of the world, optimism about growth abounds. According to PwC’s 2015 CEO survey, 61 percent of respondents see more growth opportunities than they did three years ago. Clearly, innovation strategies will play a key role in determining which companies will lead the way. Yet, if recent Global 1000 Innovation Survey is any indication, only a fraction (27 percent) believe they have mastered the elements they will need to make their innovation efforts successful. The problem is that most companies focus on making changes to an existing process, which at best will yield incremental innovation in the way of an updated product offering. To foster innovation that has the potential to transform markets and industries, it’s critical to make efforts not about process, but about people, because that’s where a company’s greatest growth potential lies. What kind of people are needed to drive transformational innovation and massive growth? To answer this question, my colleague Mitch Cohen and I analyzed 120 self-made billionaires across 19 industries. All founded at least one company worth billions, and some founded several. Regardless of industry, the individuals in our study

shared certain habits of mind, both rational and emotional in nature. They have the imagination to envision a product or service that customers need, the willingness to do the necessary analytics to make sure the offering is on track, and the agility to change course in mid-stream if it isn’t. In sum, they have what I’d call “commercial courage.” People who draw on their commercial courage to create massive value are what we call “producers.” Jeff Bezos, founder of Amazon, Sara Blakely, founder of Spanx, and Howard Schultz, founder of Starbucks, are prime examples. These findings carry some important implications. Any company in pursuit of billion-dollar growth needs to take a hard look at its leaders. Do they have the habits of mind needed to drive transformational innovation? Or have they relegated people with those traits to positions where their ability to foresee and act on new opportunities remains unrecognized and unrewarded? By making the effort to identify and support their commercially courageous employees, companies can produce the blockbuster offerings that customers want—and tap into the growth opportunities that await. n

John Sviokla Principal, Global Thought Leadership Leader, PWC

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Strategic Sourcing Benefits Travelers and the Company’s Bottom Line

Jake Cefolia VP, Atlantic & Pacific Sales United Airlines

ophisticated companies recognize the importance of strategic sourcing and the role it can play in improving profitability. Being more strategic about how services are sourced can have a significant impact on a company’s bottom line. When labor and direct material costs are removed, services such as travel procurement can represent over half of the remaining outlays. Services don’t usually get as much attention as labor and materials, but a disciplined approach to managing services spend can make a significant difference. One reason services procurement can be so impactful is because of the bottom line impact. An incremental dollar of revenue does not translate directly to a similar bottom line profit improvement because of the need to net out the selling and production costs. Saving a dollar on a service, however, results in a dollar-for-dollar bottom line benefit. Services are often an overlooked—yet substantial— segment of spend. In the air travel space, many companies don’t think about the benefit of concentrating spend with a smaller number of suppliers and the impact that can have on average fares and costs-per-passenger mile of travel. With greater volume comes better leverage to negotiate

and it’s possible to both consolidate spend with fewer suppliers while also providing greater coverage of route needs. With fewer suppliers who can cover all needs, employees have an improved experience by accruing greater frequent flyer benefits, while still saving the company both time and money—a win-win for all involved. With some major air carriers, for as little as $50,000 in total annual travel spend, companies can participate in discounted fare programs. The status quo alternative, when suppliers remain fragmented and contracts are executed on a piecemeal or opportunistic basis, means companies don’t receive as powerful of a deal and also may not get adequate travel network coverage. Additionally, engaging multiple suppliers can create an overly complex procurement environment where the ability to leverage cost against benefit is diminished. For best results, select a key supplier that best meets the need from a product, service, and network standpoint, and build a mutually beneficial relationship. The benefits are there to discover and every dollar saved enhances the bottom line. n

Five Tips for the Time-Constrained Board

sk me for anything,” remarked Napoleon Bonaparte, “but time.” Board members today would certainly understand. McKinsey research suggests that effective directors invest twice the time that other directors do. We recently traded thoughts at Prium, a forum for CEOs, on how even timeconstrained leaders can add more value. Between-meetings. Maggie Wilderotter, chairman and CEO of Frontier Communications, stresses that “it’s not just about the meetings. It’s about being able to touch base in between meetings and staying current.” Impromptu discussions strengthen a board’s hand on the company’s pulse. And well-informed directors get the most out of regular board meetings—which move faster as a result. Strategy. Experienced directors should contribute significantly to corporate strategy. But that’s possible only if they’re participating early in its formation. Boards should do more than review executives’ fully baked strategies. Talent. Boards select CEOs, and many review key executives. But high-performers also source talent. Donald Gogel, chairman and CEO of Clayton, Dubilier & Rice, explains that “our board members can operate like a highly effective search firm.” Outreach. Directors can participate in specific

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operational initiatives, becoming both “the board’s eyes and ears,” notes Everecore Partners’ Eduardo Mestre, and “a very active participant.” Jack Krol, chairman of Delphi Automotive, requires directors to visit at least one business site each year. The goal, though, is to be collaborative, not intrusive. Insight. Michael Campbell, president of Arch Chemicals and a former board chairman, notes that “every board member does not necessarily need to have industry experience. But they must have the courage to ask difficult questions.” Understanding how a company creates (and destroys) value makes it much easier to identify critical issues. Ultimately, there are no shortcuts. Each measure requires hard work from the board—and sometimes, thick skin. But a good director will provide the extra effort, and an effective CEO will make the most of an engaged board’s limited time. A version of this article, “How the best board directors stay involved,” was published by Harvard Business Review on hbr.org. A version called “Changing the nature of board engagement” was published by McKinsey Quarterly on mckinsey.com. n

Bill Huyett Director McKinsey, Boston

Rodney Zemmel Managing Partner, Northeast McKinsey, NY

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The State of the UK/USA Special Relationship

Ceasar N. Anquillare Chairman & CEO, Winchester Capital Transatlantic Mergers and Acquisitions Advisory

n addition to our ancestry and military alliances, the US and UK have a strong tradition of transatlantic investment. This is rooted in our shared foundation of the common law, responsible corporate governance and investor protection which pervades not only statutory law in the United Kingdom and the United States but also Commonwealth countries. Since 2000, it is estimated that $572.4bn has been invested by US companies in mergers and acquisitions into the United Kingdom and approximately $535.1bn by UK Companies in mergers and acquisitions of US companies. Acquisition activity by US firms of UK companies and vice versa has continued to be a strong source of M&A deal flow. 2014 was a strong year for mid-market cross border M&A activity between the United States and the United Kingdom. Total cross border value grew from $17.6bn to $21.6bn, or an increase of 23 percent. The total transaction volume grew to 107 from 100 transactions, or an increase of 7.0 percent. In addition to the increase in value, total deal volume rose 3.4 percent from 29 to 30 transactions. The divergence between the larger increase in value and a lower level of increase in volume indicates that 2014 witnessed multiple

mega deals which caused the average size of transactions to rise. When comparing the US and UK in the mid-market over the same time period (’00 – ’14), US companies have acquired a much higher total value of companies in the UK than UK buyers have acquired in the US. However, by contrast, the GDP of the US is six times greater than the United Kingdom so these figures demonstrate the degree of scale and priority of the cross border relationships. We can conclude that the state of the M&A union between the United Kingdom and the United States remains constant and strong. We believe the UK/ US market is poised for further growth as the UK and several states within the US are undertaking significant economic and tax incentives to attract in-bound acquisitions and strategic investment. We also believe that the UK/US mid-market will remain one of the most active segments in terms of the number of transactions in 2015. n

Four Steps to Adopting Analytics as a HR Lifestyle

ithin organizations, the finance, sales, marketing, and supply chain areas have increasingly relied on data and analytics to enhance their effectiveness and drive robust decisions. Despite the vast advancement in tools, technologies, behavioral sciences, and statistics, HR is the last function to use data for robust decision making. HR must adopt analytics as a lifestyle to evolve to the next stage of driving value to the business through data. 1. Start with the Business Issues and “Right Questions” HR must start with the “critical few” strategic business questions that matter to its specific business, rather than functional HR questions. To effectively identify key questions, seasoned HR professionals must understand the key business priorities and the impact of those priorities on talent needs. The richer the dialogue and the deeper the impact on the organization, the greater is the credibility of the HR leaders. 2. Focus on Data-Driven Narratives Once HR has a deep understanding of the talent questions and challenges, has gathered data from the various systems, organized it with a keen eye on

patterns and insights, and experimented with it, the next step is to build a cogent narrative with insights based on the data. 3. Develop a Narrative-Building and Analytical Capability While HR teams have been building capabilities in organization design, change management, evaluation of top talent, and interview and selection of top candidates, the use of data has frequently been neglected when consulting with business leaders. Like its counterparts in finance, HR must be able to tell compelling stories with numbers. The discipline to review data on a sustainable basis, not just in an event-driven manner, such as during annual compensation cycles or at talent reviews, must be adopted.

Usha Mirchandani Partner, Talent Insight & Analytics Aon Hewitt

4. Establish a Cadence HR should develop a regular cadence of reviewing data, metrics and findings. It should become inherent practice for HR to examine key metrics monthly or quarterly, select insights from the data, proactively consult with the business on ways to move the needle, and monitor results when interventions have been put in place. HR’s review of data should be proactive, and bring business insights before the business is looking for them. n

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The Threat from Within

Marc Carletti Head of Global Banking & Financial Markets BT

ecuring physical and virtual perimeter IT borders to repel the threats of data breach or denial of service to your websites, mobile devices, servers, datacenters and applications is critical. Yet, some key questions of a cybersecurity best practice are often left ignored: Do our employees have access to information that they shouldn’t have permission to download? Do they have access to files after they have left the company? The answer may startle you. A 2014 study stated that more than 40 billion dollars in losses were suffered by employees’ unauthorized use of computers. The private and public sectors were affected, both experiencing the consequences of stolen or misused data, the misconfiguration of IT assets by disgruntled employees, fraud, intentional data breaches and the distribution of private material via unauthorized access to private records. Not coincidentally, the number of information security senior managers who cited insider threats as their biggest concern increased to 73 percent in 2014 from 62 percent in 2013, according to an April 2014 survey by AlgoSec. Add to that the ever tightening web of regulation for non-compliance of protecting private records,

and the focus on internal threats becomes clearer. With this said, senior security executives must realize that the goal of achieving “total data security” is not possible. The security roadmap, resulting in a dynamic protected environment by allowing rapid change to people, processes and software to combat known threats, must begin internally. This includes an all-encompassing identity management program from day one of hire, strict controls and analytics for file access, a comprehensive mobile data access strategy and stringent hiring and ongoing background checks for employees. While the costs of cyber protection, response and mitigation are skyrocketing, the common sense strategy of “internal critical asset protection” should, at the very least, act as a guide to the CISO taking advice from an internal COE and/or their partner/consultant in the cybersecurity space. n

The Valley Meets the Street

oday, the entrepreneurs of Silicon Valley think that financial services faces an “Uber moment.” They are coming up with new business models that promise dramatically to eat into traditional sources of profit while greatly improving customer service. For reasons that are not entirely clear, the world’s best entrepreneurs have mostly ignored financial services—with the notable exception of the creation back in the 1990s of PayPal by Peter Thiel, Elon Musk, Reid Hoffman et al. Now, Silicon Valley is salivating at the prospect of eating Wall Street's lunch, and the City of London’s too. The titans of finance are having sleepless nights as they wrestle with how to respond, recognizing that change is coming but not wanting to embrace it so fast that they cannibalize their existing businesses. Ironically, among the leading venture capitalists investing in the host of new “fin tech” start-ups are three former chiefs of mainstream financial firms, Vikram Pandit, once of Citigroup, John Mack, exMorgan Stanley, and Bob Diamond, the former boss of Barclays. Mr Diamond will be one of the speakers at a conference I am putting together for the Economist in New York on October 20th, to focus on what sort of financial services industry is likely to emerge from the coming disruption, and

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what all this change will mean for the broader economy. The latest in our series of Buttonwood Gatherings, with good reason this conference is called “The Valley Meets the Street.” One of the most interesting questions for me is how the different financial centers around the world, and those who regulate them, will respond to the coming fin tech revolution. So far, the City of London and the UK government seem to be more accommodating and enthusiastic than their counterparts in New York and Washington DC. But that could change as the implications of resisting change become clear. And both of these old world capitals of capital could find themselves out innovated by up and coming financial centers such as Singapore, or maybe somewhere that nowadays we don’t even consider a major player in finance. Of one thing I am confident: fortunes will be made and lost in the coming fin tech revolution. n

Matthew Bishop Globalisation Editor The Economist

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Defining Procurement Success

Jonathan Cooper-Bagnall Executive Vice-President and Commercial Director, Proxima

he dictionary definition of success is an accomplishment or meeting of an objective. Success in the procurement field, however, is a more nebulous concept. Perhaps that’s because procurement’s objectives aren’t usually clearly defined. Or perhaps, it’s because procurement’s objectives are defined quite differently by its practitioners and the business leaders they serve. A new study by Oxford Economics illuminates the significant disconnect between each group’s measures for success. Oxford surveyed 500 C-suite executives and 500 procurement employees and found that 72 percent of C-suite executives ranked cost savings as their primary measure for procurement success. Inventory turnover was ranked second with 50percent and supplier performance came in third with 49percent. Procurement practitioners had different aims. Around 56percent ranked touchless transactions as their premier performance indicator. Cost savings and order cycle time tied for second, with 52 percent. The executive yardstick for measurement is not surprising. While one can argue that value is the truer measure of procurement performance, executives will always seek cost-savings from a cost-center, particularly when purchasing is central to that function.

Encouragingly, the significant nod to supplier quality and performance is an indicator that executives are beginning to understand the important role played by the supplier network. Executives are beginning to acknowledge the importance of supplier oversight. They are even measuring procurement success by how well that function chooses and manages the supplier network. Practitioners, unfortunately, don’t seem to be speaking the same language. Instead procurement executives are prioritizing cost savings and touchless transactions. The disconnect is concerning on multiple levels. The lack of shared objectives suggests that procurement executives and business leaders may be working at cross-purposes. But perhaps most concerning, it suggests that procurement practitioners haven’t taken heed of the lessons of corporate virtualization (http://insight. proximagroup.com/corporate-virtualization) and are not actively working toward a supplier management program that will, if not prevent supplier scandals, at least be better prepared to deal with them. It’s time for procurement executives to heed the call for better supplier oversight. After all, their success will be measured by it. n

How to Spot Commando Entrepreneurs in Your Organization

spent 18 years in the UK Royal Marines as an operations commando. When I entered the private sector, I discovered that the Royal Marine’s Mission Command approach to talent management, business process redesign, and project planning and execution was directly relatable and transferable to the business world. I’ve founded a firm built on these principles and on equipping organizations to deliver business critical results regardless of the uncertainties and obstacles faced. We live and work in a challenging, dynamic and competitive world. In business, as in life, it is often us vs. them. There are leaders among us who can help navigate the complexities around us. We call them Commando Entrepreneurs and here is how you spot them within your own organization. Commando Entrepreneurs believe in the extraordinary, not only in themselves but in others. They know what it takes to achieve their goals. Recognizing the challenges, they are ready to overcome obstacles for a chance to reach the top. Commando Entrepreneurs seek out adventure. They are eager to do things that no one has done before. They will sometimes make mistakes, but they don’t see them as failures. They take them for the learning opportunities they are and then do that much better the next time.

Commando Entrepreneurs believe in the extraordinary, not only in themselves Damian McKinney

but in others.

Founder and CEO McKinney Rogers

Commando Entrepreneurs at the same time are thoughtful and strategic. Undeterred by risk, they are willing to persevere during times of adversity, always keeping their eye on the prize. Lastly, and perhaps most importantly, Commando Entrepreneurs are interested in making a difference. They are looking for lasting, sustainable change for themselves, for your organization and for the world. Take a look around today and you’ll spot them. n

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Crossing the Pond: US and UK Employee Issues

I David McManus Partner

Pulina Whitaker Partner

Eric Bord Partner

nternational secondments of senior employees are increasingly common, particularly for businesses opening in overseas jurisdictions such as the US. UK businesses should plan for employee issues arising from such secondments, in parallel to commercial considerations, and document the agreed employee arrangements in a secondment agreement between the UK employer and the US recipient of the employee’s services. We consider in this article some of the key issues to consider early in the process. 1. Employment rights. UK employees are likely to retain their statutory rights, provided the secondments are not extensive and they continue to work, ultimately, for the UK employer when assisting with launching the US operation. Contractual rights such as notice periods and enhanced holiday and sick pay are also usually retained but any changes should be documented in the secondment letter with the employees. UK employees working in the US have concomitant rights under the US fair employment practices laws applicable to the majority of US employees, and can create liability for UK employers, and potentially themselves, if the UK employees violate those laws. Ensuring the secondees’ understanding

of the US laws is, therefore, important. 2. Employee benefits. Employees who participate in UK plans such as pension plans and share incentive schemes may wish to continue to do so during the course of their international secondment, subject to the terms of these plans. Tax consequences, however, should be considered and consideration given to favourable tax planning for the companies and the employees. Alternatively, UK employees working in the US may be given the opportunity to participate in US plans such as pension plans and equity compensation plans. Tax consequences should similarly be considered for the companies and the employee. 3. Immigration. Employees seconded to the US (other than US citizens or permanent residents) will require visas that allow them to work for the US subsidiary. Though UK citizens are eligible for visa waiver when travelling as temporary visitors, visitors are not permitted to work. Visa options for UK workers in the US are limited, and advance planning with knowledgeable counsel is essential. n

Promotional Opportunities through Network Magazine The New York edition of Network is sent directly to more than 3,600 leading , transatlantic executives in our member companies and highlights the latest in transatlantic news, policy, and events. Produced three times a year, Network features interviews with business leaders and policymakers, covers BAB policy initiatives, and highlights our events program. It also brings readers the latest information from member companies on important topics such as regulatory changes, marketing trends, technological solutions, and talent management. BAB offers bespoke marketing packages to companies looking to promote their thought leadership, products, or services through Network. Take advantage of this opportunity to:  Position your company as a market leader directly to BAB’s unique audience of executives  Reinforce your company’s brand image and strength.  Market new initiatives, showcase expertise

To take advantage of Network’s promotional opportunities and develop a bespoke marketing package, please contact Andrew Boyd at 212. 983.3727 or aboyd@babinc.org.

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P O L I C Y U P DAT E By Emanuel Adam Policy Manager, BritishAmerican Business

he importance of the transatlantic relationship requires policies that ensure that the transatlantic economy as a whole remains a sustainable and attractive destination for business. BritishAmerican Business seeks to embed this approach in all we say to governments. Here are three areas we have on our radar: Uber — a disruptive ‘transatlantic success story’ On July 22nd 2015, Mayor De Blasio dropped his plans to place a cap on the number of vehicles the car service company Uber operates in New York. The decision must have been noted by Uber in London with some relief. In both cities (and elsewhere) Uber faces an often emotional resistance from City Halls and local cab drivers who fear the service undercuts fares and regulations. With every ‘disruption’ there is a need to address its impact on existing rules and structures. London and New York as the most important Uber markets are likely to be leading in the process. Something we must not overlook when assessing the impact, however, is that Uber is a transatlantic success story, offering an innovative and creative product; something that represents the continuing success of the transatlantic economy. US-UK Immigration — cutting a vital artery of the transatlantic economy There are so many US citizens living in the UK that it is hard to find exact numbers. For the US and the UK, migration is a pulsating artery in its successful economic relationship. With the UK’s efforts to cut

non-EU immigration, however, this crucial element of our relationship is under threat. Cutting the number of Tier 2 visas, in particular, will largely affect US skilled labour immigration. No one denies the need for national governments to deliver outstanding education systems for their nationals to allow them to compete and win higher positions in the labour market. Reducing the number of foreign skilled labour as a consequence, however, is short-sighted. Businesses operating internationally often rely on foreign skilled labour that in the end creates new jobs. A sensible approach is needed that both recognizes the UK’s domestic objectives while ensuring the UK remains “open for business” and able to attract the best and brightest from around the world. Investor state dispute settlement — time for new suggestions? ISDS, short for Investor-State Dispute Settlement, has become the major stumbling block for the TTIP negotiations. For the proponents of the mechanism, such as BAB, an (improved) ISDS system is an integral part of the agreement. ISDS provides a non-political, independent and fast way to resolve disputes and a TTIP without ISDS would make it much harder to include it in future agreements with other states. There are signs, however, that only a substantially changed system can be successful over the long term. In a resolution in July 2015, the EU Parliament even asked for a “new system” that would replace ISDS. New ideas and solutions are needed that help negotiators to agree on something that will find approval in Parliaments. One of the big questions in the process may be whether, in a world that we hope will see ever increasing investment flows, we need a stronger public interest guarantee when states resolve dispute with investors? Maybe a good time for new suggestions from business. n

BritishAmerican Business Members network with members of other European Chambers in New York before greeting the EU’s new US Ambassador.

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PROGRAM HIGHLIGHTS: BABC

New York Hosts Annual BABC Transatlantic Conference THE INNOVATION IMPERATIVE STRATEGY | TECHNOLOGY | GROWTH In May, BritishAmerican Business in New York hosted the annual transatlantic conference for The British-American Business Council, welcoming local members and those from chapters in the UK and the US. This sell-out conference brought members of the BABC’s 20 chapters together to share business insights and develop new business relationships through a high-level program of panel discussions with industry-leading CEOs and innovators and networking with other senior executives. The business program featured leaders from companies such as BAE Systems, Barclays, Boston Consulting Group, BT, Delta, the Economist, Johnson & Johnson, JWT, LinkedIn, Mastercard, Russell Reynolds, Tata Consultancy Services, Thomson Reuters and Virgin Atlantic Airways; and the social program included cocktails and dinner on a private yacht as it toured the New York Harbor and a reception at the Residence of the British Consul-General in New York. The highlight of the conference was a keynote interview with Ed Bastian, President of Delta Air Lines, and Craig Kreeger, CEO of Virgin Atlantic. “This conference was a fantastic opportunity for high-level business networking and learning,” said Steve Allen, BABC President. “I made some great business connections and picked up many valuable business insights, and am sure that all the other participants did as well.” The conference was held on the top floor of the Thomson Reuters building in Times Square and was sponsored by Delta Air Lines, Virgin Atlantic Airways, The Boston Consulting Group, Deloitte., BAE Systems Applied Intelligence, Berkeley Research Group, Future Foundation and Tata Consultancy Services.

SPECIAL THANKS TO OUR SPONSORS: TITLE SPONSOR Delta Air Lines Virgin Atlantic Airways UNDERWRITER The Boston Consulting Group INNOVATOR Deloitte

DISCOVERY BAE Systems Applied Intelligence Berkeley Research Group Future Foundation SUPPORTING Tata Consultancy Services

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P R O G R A M H I G H L I G H T S : N E W YO R K

Briefing with David O’Sullivan, EU Ambassador to the US The new EU ambassador to the US visited New York to address members and update them on the sovereign debt crisis and free trade negotiations. Sponsored by KPMG and Zurich Insurance, this evening program gave members the chance to ask questions of the ambassador and get the most up-to-date and accurate read on the European markets.

Exclusive Cyber Security Roundtable Sponsored by BAE Systems Applied Intelligence, our round-table of high-level security and IT executives met to discuss current cyber threats, response techniques, and strategies for engaging corporate leadership in defensive planning.

The New Norms of Business in China The Mintz Group, sponsored an exclusive roundtable on trends for businesses operating in China. Leading the discussion was Randall Phillips, who heads their Beijing office and was formally the Chief CIA Representative in China. Attendees discussed the regime’s new attitude towards corruption as well as specific “how-to’s” for ensuring due diligence in China.

An Evening of Opera at Paul Stuart Our members enjoyed a stylish evening at Paul Stuart’s flagship store on Madison Avenue in partnership with the Italy-America Chamber of Commerce. While guests enjoyed drinks and networking, they were also treated to a live performance of several opera arias by Anita Rodgers, founder of British American Household Staffing.

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Recent Business Leaders at New York Programs CEO Roundtable with Barry Salzberg, then Global CEO, Deloitte, “Why Diversity Matters to Global Firms”

Other New York Programs >> New York Office Open House >> Reception for Expats and New Members >> New York International Auto Show Reception with Jaguar

Land Rover

>> Women’s Forum: “Women’s Internal Networks as a

Business Imperative”

>> Spring Pub Quiz: “Think You’re Clever” >> Executive Assistants’ Reception at the Loews Regency

Hotel

>> European-American Chamber of Commerce Spring

Networking at the Central Park Boathouse

CEO Presentation with Steve Holliday, CEO, National Grid, “The 2015 Energy Outlook”

CEO Roundtable with Neeraj Sahai, President, Standard & Poor’s, “The Capital Markets: A Birdseye View”

>> Spring Fashion Reception at Karen Millen >> President’s Reception >> Exclusive Forum: “Getting on Board” >> Networking Reception at Burberry >> SME Forum: “Taking Your Company Global”

SPECIAL THANKS TO OUR RECENT PROGRAM SPONSORS AND HOSTS Sponsors

Hosts >> Andersen Tax

>> Linklaters

>> Broadridge Financial

>> Loews Regency Hotel

Solutions

>> Burberry >> Debevoise & Plimpton

>> DLA Piper >> Jaguar Land Rover >> Karen Millen >> Korn Ferry

>> McKinsey & Company >> Morgan Lewis >> Norton Rose Fulbright

>> Paul Stuart >> Thomas Pink >> Thomson Reuters >> WPP

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PROGRAM HIGHLIGHTS: LONDON Summer Networking Reception at the Sky Bar, Grange Hotel St. Paul’s Sponsored by Taylor Made Computer Solutions and Hosted by Grange Hotels On Tuesday, July 7th, the BritishAmerican Business annual summer networking reception took place at the Grange Hotel’s Sky Bar. Members enjoyed an evening of networking, drinks and canapés in the rooftop bar and outside terrace with spectacular views overlooking St. Paul’s Cathedral.

Summer Reception Hosted by Deputy Chief of Mission of the Embassy of the USA

Women’s Forum: An Evening with Dame Fiona Woolf CBE: “The Squeezed Middle”

Sponsored by Hays Plc and Hosted by Orrick Herrington & Sutcliffe Sponsored by Lockheed Martin and Wells Fargo On Thursday June 4th we were delighted to invite BritishAmerican Business members to a reception held at the Deputy Chief of Mission’s official residence at Wychwood House in Kensington. Guests enjoyed an evening of networking with complimentary drinks and canapés served in the beautiful garden.

On Tuesday, June 16th, Dame Fiona Woolf CBE, Senior Partner at CMS Cameron McKenna and Lord Mayor of London in 2013/14 spoke at our most recent installment of the Women’s Forum. Dame Fiona spoke about the importance of the role that middle management plays in the progression of women in the workplace which was followed by a networking drinks reception.

SME Forum: Can the UK take the US crown when it comes to producing entrepreneurs? Hosted by EY On Wednesday July 1st a panel of speakers including Lord Digby Jones, Former Director General CBI discussed the US and the UK’s differing approaches to building a strong environment for nurturing entrepreneurial spirit. Topics discussed included financial support, education and talent, tax and regulation, government support and national culture.

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Annual Corporate Citizenship Awards Dinner 2015 Over 450 members and guests enjoyed networking, cocktails, food, and festive fun at our BritishAmerican Business London presented Dan Glaser, President and CEO of Marsh & McLennan Companies and Steve Holliday, Chief Executive of National Grid with our Annual Corporate Citizenship Award in recognition of their exceptional commitment to corporate social responsibility. Guests enjoyed a welcoming drinks reception in the courtyard of Merchant Taylors’ Hall followed by a 3 course dinner in the historic hall where the awards ceremony took place.

Sir Simon Fraser presents Dan Glaser with his BritishAmerican Business Corporate Citizenship Award. BELOW: Tamara L. Lundgren, Chairman, US Chamber of Commerce addresses guests seated at dinner. ABOVE:

Steve Holliday networks with other guests over drinks in the courtyard of Merchant Taylors’ Tall

“I wish to express my gratitude to British American Business for honouring me with the Corporate Citizenship Award. I am tremendously proud to receive this Award especially in the year that National Grid is named as UK Responsible Business of the Year. I am delighted to be joining the illustrious list of BAB Award alumni.” — Steve Holliday, Chief Executive of National Grid

“Corporate citizenship is needed now more than ever in a challenging business landscape. Through engagement in BritishAmerican Business, we help drive innovation and create solutions to the issues of our time. It is a privilege to be recognized by this distinguished organization for our contributions to corporate citizenship.” — Dan Glaser, President and CEO, Marsh and McLennan Companies

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WITH THANKS TO OUR SPONSORS: PLATINUM SPONSORS Aon Barclays Citi CMS Cameron McKenna LLP Deloitte National Grid plc Marsh & McLennan Companies

SILVER SPONSORS Hiscox KPMG Mercer Wells Fargo Zurich City Year Special Olympics

GOLD SPONSORS Ascot Underwriting Ltd Norton Rose Fulbright

BritishAmerican Business invites you to attend the

Transatlantic Business Awards Dinner 2015

OCTOBER 7 6:00-9:30PM THE PIERRE - NEW YORK

HONORING Bob Dudley

Mark Pigott KBE

Group Chief Executive BP plc

Executive Chairman PACCAR Inc

Sir Win Bischoff

Dominic Casserley

Helena Morrissey CBE

Chairman of the Financial Reporting Council Chairman, JP Morgan Securities

Chief Executive Officer Willis Group Holdings plc

CEO, Newton Chair, The Investment Association (IA) Founder, 30% Club

FOR MORE INFORMATION AND TO RSVP PLEASE CONTACT (212) 661-4066 OR VISIT OUR WEBSITE AT WWW.BABINC.ORG/EVENTS