Supporting Document H – Global ER Principles 1. Purpose of ER Principles This document outlines the following principles related to product standardization, market access definition, pricing standardization, a collaboration framework between AIESEC International and other AIESEC entities, communication principles and the responsibilities of parties engaged with the GEP product.
2. Managing Disputes in ER Principles In the event that the ER principles are breeched a case can be submitted to the internal control board through the case submission procedure outlined in the internal control board supporting document (G1_Internal Control Board Section 3)
3. Global ER Communication Principles The Global ER Communication principles are the code of conduct in managing communication between AIESEC and external organisations where more than one member entity is involved or impacted. ER Communication Principles between Member Entities and AI 1
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Any entity wanting to work with a current GEP, must first receive approval from AIESEC International before initial contact with the company. AI should respond to all these inquiries within 7 days. If an entity is approached by a current GEP interested in contracting with AIESEC, the entity must collaborate with AIESEC International before moving forward. AI should respond to all inquiries within 7 days. Each member committee will ensure that their local committees are not prospecting current GEPs without permission from AIESEC International. When AI is physically selling in an entities market this should be communicated to the member entity
ER Communication Principles between Member Entities 1 2
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Any entity wishing to contact an external entity related to revenue raising in any other country they should first receive approval from the MC of that country. Where the sales and delivery of an external partnership takes place over multiple entities a contract shall be made between these entities which will manage the relationship and the deliverables of the partnership. No AIESEC entity shall enter into a contractual agreement on behalf of another AIESEC entity without their prior written consent. 4. Global Products
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Why are global products important? Global Products exist to raise finance for activities that are mandated by the global plenary and to increase AIESEC’s impact at a level that AIESEC International is best positioned to capitalise on. What are the products? Global products include, but are not limited to those listed below. ● Global Exchange Programme (GEP)– This is the Global Internship Programme sold to large scale MNC’s where the account is managed from the AIESEC International office ● Global Exchange Programme Amplifiers – These are the products that increase the appeal, exposure and value of AIESEC’s GEP product and include exposure during AIESEC International spaces such as conferences held by AIESEC International. These products include: ○ Global Talent Development Partnerships ○ Global Organisational Development Partnerships Who manages global products? AIESEC International is the owner of global products. The sales and delivery of global products may be split between AIESEC International and AIESEC member entities. Territories interested in selling nonexchange global products with AIESEC International are welcome to approach the AIESEC International Business Development team to negotiate which activities will be sold, and how revenue will be split. 5. Global Market Access for AIESEC International AI can only approach MNCs to sell Global Exchange Partnerships. These MNCs need to fulfil the following criteria: 1. Company is referred to as a MNC in an objective public source 2. Company has significant operations in over 10 countries 3. Company either has over 10.000 employees or has a revenue over 500 million euros Each year AI creates an active prospect list that fit the large scale MNC definition (maximum 500 companies). All other companies that falls into the inactive prospect list. In the case AI is approached or referred to by a company on the inactive prospect list. AI is allowed to follow up on that lead. In the case that a MC establishes contact with a prospect outside of the MNC criteria that is interested in a global partnership and that demonstrates potential to grow on a global scale, they may invite AIESEC International to join the negotiations and allow them to manage the account. This can be done through communication with the AI VP Business Development. The prospect list works as follows: Entity can:
On the Active Prospect List
On the Inactive Prospect List
Not on the Prospect List
sell GIP to company:
Yes
Yes
Yes
sell national partnership products to company:
Yes
Yes
Yes
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request co sales with AI to a company:
Yes
Yes
No
AI can:
On the Active Prospect List
On the Inactive Prospect List
Not on the Prospect List
sell GEP products in an entity’s market directly if it is:
Yes
No
No
request co sales with an entity:
Yes
Yes
No
6. Global Product Pricing The price of global products is defined and managed by AIESEC International on behalf of the global plenary. External Pricing Tier System Entities will be allocated into different pricing tiers based on market prices and delivery costs in order to be able to maximise sales taking into consideration different markets. AI allocates entities into each of these tiers and updates on any changes during IPM each year. Changes to Entities Allocated Pricing Tier AI can choose to move entities between these tiers either on the recommendation of entities or from their own analysis. Changes to which entities fall into each tier, or the price of each tier can only be changed during IPM and the pricing will take immediate effect from the beginning of the AI financial year following IPM (currently June 1st). Revenue Distribution For global exchange products where the revenue is shared between AIESEC International and hosting entities, AIESEC International will present a table during IPM which will outline the internal distribution to beginning on the first of June during that year. External Pricing and Internal Distribution Table IPM 2013 Tier
1
A
1
B
1
C
2
D
3
E
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Total cost per trainee for the company from AIESEC
Global Promotion (AI)
Matching (AI)
€ € € € €
€ € € € €
€ € € € €
4,400 3,100 2,700 2,200 1,800
400 400 400 300 200
Total MC/LC Fees (includes visa/legality and servicing) 1,000 1,000 1,000 900 800
€ € € € €
3,000 1,700 1,300 1,000 800
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F
4
G
€ €
1,500 1,000
€ €
200 100
€ €
800 600
€ €
500 300
GEP Product Services - Internal Revenue Distribution This outlines the different services that are provided as part of the Global Exchange Partner delivery. Depending on who delivers what part of each of these services determines how much revenue each entity receives as part of their delivery to the GEP Product. The delivery of such categories is as follows:
Model Type
Global Promotion & Account Management
Talent Sourcing, Selection and Matching
Member Hosting Entity
Model A: (1) Direct sales by AI (2) Up scaling nonsignificant national partners
AI
AI
MC
Model B: (1) Co-sales (2) Up scaling significant national partners
AI
MC
MC
Model C: (1) Direct sales by AI Global Co-oridnator manages Talent Sourcing, Selection and Matching
AI
AI
MC
Pricing Tiers - External Pricing Entities will be allocated into different pricing tiers based on market prices and delivery costs in order to be able to maximise sales taking into consideration different markets. AI allocates entities into each of these tiers and presents these during IPM each year. AI can choose to move entities between these tiers either on the recommendation of entities or from their own analysis. Changes to which entities fall into each tier, or the price of each tier can only be changed during IPM and the pricing will take immediate effect from June following IPM.
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Entity Tier Allocations I 2014
AI pricing Local Delivery
Tier One
Tier Two
Tier Three
Tier Four
A
B
C
D
E
F
G
Norway
Australia
Austria
Greece
Azerbaijan
Algeria
Afghanistan
Qatar
Denmark
Belgium
Iceland
Bahrain
Argentina
Benin
Sweden
Finland
Canada
Italy
Brazil
Armenia
Benin Bolivia
Switzerland
France
Korea
Colombia
Bosnia & Herzegovina
UK
Germany
Malta
Costa Rica
Botswana
Burkina Faso
Hong Kong
New Zealand
Croatia
Bulgaria
Cambodia
Ireland
Portugal
Czech Republic
Chile
Cameroon Cote d'Ivoire
The Netherlands
Russia
Estonia
Dominican Republic
Spain
Taiwan
Hungary
Egypt
Ecuador
UAE
Japan
Latvia
El Salvador
Ethiopia
USA
Singapore
Lithuania
Gabon
Georgia
Oman
Ghana
India
Panama
Guatemala
Indonesia
Poland
Iran
Kenya
Slovakia
Jordan
Kyrgyzstan
South Africa
Kazakhstan
Liberia
Lebanon
Moldova
Mainland China
Nicaragua
Malaysia
Pakistan
Mauritius
Paraguay
Mexico
Rwanda
Mongolia
Senegal
Morocco
Sri Lanka
Mozambique
Tajikistan
Nigeria
Tanzania
Peru
The Philippines
Puerto Rico
Togo
Republic of Macedonia
Uganda
Romania
Vietnam
Serbia Slovenia Thailand Tunisia Turkey Ukraine Uruguay Venezuela
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7. GEP Delivery Service Responsibilities All entities involved in the delivery of a GEP should mutually agree via a signed contract on the minimum deliverables for each of the services listed above. AI is responsible for preparing this and ensuring that the member entity signs this. The table below outlines the list of services that must be provided by each entity as part of delivering GEP’s. Open - Account management - EXPA management - Define JD AI 1 - S&S (4,5,6) - Promotion & sources
MC & LC
In progress
- Notify MC/LC - Shortlisting (GC or AI)
- RA form on EXPA - Track Standards - Pre Visa Review
Match
Realized
Complete
- Notify MC/LC - MA on EXPA (GC or AI)
- Track VISA / Work permit - Buddy Assignment - Follow up JD - S&S (9,10,11)
Reintegration
- Keep contact details
- RE on EXPA - S&S (1,2,3,7, 8,12,13,14,1 5)
- NPS reminder (email)
- Reintegration (Recommende d)
1
S&S: Standards and Satisfaction: 1. 2. 3. 4. 5. 6. 7. 8.
Visa and work permit (HOST) Arrival pickup (HOST) Departure support (HOST) Job description (HOST) Duration (HOST) Working Hours (HOST) First day of work (HOST) IND goal (HOST)
9. 10. 11. 12. 13. 14. 15. 16.
Insurance (HOME) Accommodation (HOST) Basic living cost (HOST) AIESEC Purpose (HOME) Expectation setting (HOME) Preparation (HOME) Host facilitates learning (HOST) Home facilitates learning (HOME)
XPP Standards related to GEP All entities involved in the delivery of GEP exchange products should fulfill the hosting entity responsibilities outlined in the XPP. Situation
Model A: (1) Direct sales by AI (2) Upscaling non-significant
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Hosting EntityGeneral/Selection/Matching/ Acceptance/Post Match AI
Hosting Entity Preparation/Integration Reception/ MC
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national partners Model B: (1) Co-sales (2) Up scaling significant national partners Model C: (1) Direct sales by AI, Global Co-oridnator manages Talent Sourcing, Selection and Matching
MC
MC
AI
MC
8. Entities Co-Selling Global Products Definition of co-sales: Sales done in collaboration between AI and an AIESEC entity to sell the global products within that entity’s country How does co-sales look like: ● ●
● ● ●
AI can approach an AIESEC entity or vice versa to work together to close a prospective global partner, whether or not there is a current national partnership. If new co-sales (no current national partnership) is done in the home market of the AIESEC entity, then that entity has the option to keep the part of TNs associated with “new sales” for that GEP. See Option B in GEP Delivery Models Definition. Any TNs associated with a co-sale realized in another country will be delivered by AI, this can be altered at AI’s discretion. See GEP Delivery Models Definition A & C. If there is a current national partnership, co-sales would follow the framework outlined in ‘Up scaling of Current National Partners to Global Partners’. If an AIESEC entity other than AI sells a global partnership there must be agreed upon all details regarding the sales with AI prior to selling.
Up scaling of Current National Partners to Global Partners Definition of a significant national partner: Any company that represent over 5% of the Member Committee budget or/and have currently minimum 5 TNs realized per year. ●
●
●
When a national partner is significant, the AIESEC entity has the option to retain 100% of its current partnership. The TNs raised in other AIESEC entities for that company will be delivered by AI. When a national partner is not significant, AI will implement its GEP model (See GEP Delivery Models Definition) in all the countries the company is partnering, including the origin of the partnership. AI needs to proactively understand the national partnership which global partnerships will affect; AI cannot make decisions that could be reasoned to negatively affect a current partnership.
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