New Global Financial Model Quarter 1 Report
THE CONTEXT
PURPOSE
SPECIFIC OBJECTIVE S
CONTRIBUTION TO 2015 MoS
Develop and implement a financial model that allows more flexible financing of the global office and more HR on global and regional level.
Have new financial model that reflects plenaries ability to pay
Have defined the market value of MNCs
Have defined the natural growth rate of expenses of global office
Enable AI and the network to achieve 2015 by releasing the financial ressources for the needed HR on global and regional level as well as global investments. Enable the BD team to support the network more in GIP sales, delivery and education.
Global Financial Model Review
PROGRESS
Background
•
AIESECs current financial model is from the year 2008 and based on the shareholder principle. The plenary as majority owner pays 51% of the global budget, leaving 49% to be raised by the AI BD team. Currently we reach the limits of our capacity as the model restricts global budgets that are based on the 49% of BD revenue. As the capacity of a 5 people BD team does not increase without additional HR also the global budget cannot. Therefore the criteria that influence the global budget are not the same as the ones it aims to support (growth of network and operations). The new model should incentivize and enable growth of the network based on the potential of the whole network and not only the global sales market.
•
• •
•
As follow up on the Strategic Meeting of November we finalized the model together with support from FLB and feedback from externals At IPM 2014 the new model was legislated and will be implemented from the upcoming financial year In the same conference the new budget following the new budget structure was approved and allows more flexibility to the next AI team During EuroXpro and APXLDS regional Finance summits were held to increase education and awareness around the new model and ist implications for MCs The FLB education week also supported the implemenation of the new model
Next three months • Start financial planning for 1415 based on the new model • Assess further education needs and implement in FLB 1415 plan