BEST IN FRANCE (chatham house rules)

19 th May’2004 Content Company product and client overview Why France Values Impact on HR Issues and adaptations Learning from other units Recommendations

19 th May’2004 Company overview Global spread, centralised control Total employee: 78,000 (3,000 in France) Worldwide turnover: $26bn (2003) 9% growth year on year (20% in France) 2% of world plastic market Largest travel agency worldwide 75% of revenues from US 4% of revenues from France 1 million cardholders in France Targeted at top 10%, individuals and institutions 30 years operation in France

19 th May’2004 Products Travel related services (TRS) AMEX financial advisors (AMFA) AMEX bank (AEB) CardsFinancial planningBanking and financial services Travel servicesBrokerage servicesIn the US to institutions and wealthy individuals Travelers chequesMutual fundsOutside the US also to retail customers Network servicesInsurance

19 th May’2004 Clients MerchantsTourists in France Wealthy French

19 th May’2004 Why France? Major tourist destination – important for AMEX network worldwide Wealthy market Advanced plastic market Advanced travel market

19 th May’2004 Values Global Values Customer commitment Quality Integrity Teamwork Respect for people Good citizenship A will to win Personal accountability Outcome Achieve customer loyalty Sustain sector leadership Attract highly talented and engaged workforce Provide superior return to shareholders Realise vision: “The World’s most respected service brand”

19 th May’2004 Impact on HR Centralised 360 appraisal process Management performance and bonus depends on upward appraisal Company values linked to long term strategy and measured through appraisal system Compensation linked to a global scale Adapted Internal communication toned down to appeal to French workforce Recruitment process modified to exclude assessment centre activity (7 rounds still apply) Rotation rarely happens in France

19 th May’2004 Business issues Internal Centralised control of brand and processes Trend towards outsourcing (callcentre) Cultural integration of acquired travel business HAVAS External Bank cartel – Carte Bleu (0.8% commission) Merchants’ reluctance to accept AMEX 2.5% commission AMEX requires standalone payment network

19 th May’2004 Adaptation Internal Customer service remains in France to provide high quality local service 450 Card services personnel in one building – improved internal performance External Break through the CB cartel with Societe Generale Superior quality service appeals to French market – AMEX’s USP Learning from HAVAS French labour laws taken into consideration at HQ

19 th May’2004 Learning from other units AMEX France acquired HAVAS Change management processes learnt from UK and German experience Integration of HAVAS: –Phased approach –Company-wide consultation –Learning from HAVAS in order to maintain the company’s USP –Encouraged buy-in rather than enforced changes

19 th May’2004 Recommendations Be local Take time to understand the French environment and culture Have a French management : it also helps building partnership Keep the same people a long time, stability is important Take advantage of the skills offered by the French labour market Be aware that the French labour law is very administrative and can be cumbersome

19 th May’2004 We Thank Mr Bénard, VP HR (Amex France) Mr Sireyjol, Managing Director (Card services France) Mme Lecomte, HR manager

19 th May’2004 Bibliography AMEX report and accounts 2002 Datamonitor HR internal values document

19 th May’2004 The team Yngvar Bratsberg Gaurav Gupta Julia Homayoun-Nejad Francois Patrice Patrick Pruniaux