Finance and Legality: Long Term Evolution towards 2015 Global ER principles revision
Global Distribution Model revision
Why? For AIESEC to be able to capitalize better on MNC market for GIP growth To align incentives of MCs and AI on global sales To harmonize products and pricing for global partners across markets for better delivery and faster growth through internal sales To avoid competition between AIESEC entities in sale to MNCs
The global distribution model defines how global fees (AI budget and other investments) are distributed between the Member Entities. Currently it contains internal factors (Exchanges, Local Committees, Individual Members) and external economic indicators (GDP/PPP per capita)
How? Pilot 1: Harmonized products and pricing in developed markets for consistent product delivery and sales Pilot 2: Lower margins and higher volume in fast growing markets to succeed in bringing current global partners focus to these areas and raise global partners from these markets Simulation: Research on the financial impact of any revision on entities particularly dependent on revenue from Global Partners What? From October to December, AI will pilot with the 11 entities (US, FRA, BEL, NED, GER, INDIA, CHI, PHI, MAL, INDO, BRA) for harmonized and regionalized pricing and delivery structure of Global Exchange Products to multinationals Will be tested both with current and prospective partners. Global Strategy meeting in December to evaluate and bring proposals for legislation. If successful, next steps will be to see how the standardized model can be implemented into the new Global ER principles and legislated upon at IPM in Serbia 2013.
Overall Strategy meeting April 2012 with framework for revised model that should contain following factors. o Members in TMP/TLP programmes o Realized Experiences in GIP and GCDP o External market potential of entity (student population) These factors are still to be adjusted according to external economic indicator GDP/PPP per capita (other factors are better in theory, but in practice prove hard to measure and find as objective) Current State Simulations for past 3 and next 3 years projected performance and growth to see the effects of these factors Decisions to be taken: weighting of the factors against each other Target Condition: A revised distribution model to be legislated by IPM 2013 Model should represent higher payment of entities with more ability to pay which are currently underpaying due to external factors and vice versa Would align overall investment ability of global plenary with specific entities ability to invest
Global Finance Legal Board During IC 2012 a Global Finance and Legal Board was established through legislation. It is established as a permanent virtual unit to provide constant and consistent support and development around Financial and Legal issues to the AIESEC network. It reports to AI VP Finance, but is run independently. It currently has 4 divisions: 1. Education: Training 2. Education: Consultancy 3. Standards 4. Statistics Work is starting as of the 6 October 2012. One or several physical meetings may take place to build capacity of the unit.