TREASURY SERVICES. The New Migration: Global Card Programs

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1 TREASURY SERVICES The New Migration: Global Card Programs

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3 TABLE OF CONTENTS Underlying Trends of the Current Market...2 Expanding Beyond Borders The Business Case...3 A Hard Look at Card Acceptance...4 Pre-RFP Review of Key Program Issues...5 Implementation Concerns...6 Data Management, Reporting & Integration Financial Offer...7 Global Single-Source Capability Support and Ongoing Administration...8 Staff Quality...8 One Global Partner Case Study T&E is one of the most controllable corporate expenses typically representing between 1.5 and 3 percent of a company s revenue for firms in the top travel category focusing on these programs has become increasingly attractive to firms looking to score an immediate return. 1 Via technology platforms, travel and entertainment (T&E) card programs enable firms to take control of these payment cycles and manage their cash positions more efficiently. The current global business crisis has cast into high relief a problem that has been increasingly apparent in recent years inefficient, cumbersome cash management processes continue to prevent many companies from managing their working capital effectively. The deep recession is forcing financial managers to review their procure-to-pay processes with an eye to effecting immediate improvements. Recent surveys show that most firms want to enhance cash management efficiency, streamline operations, cut costs, raise compliance and transparency levels and improve their strategic supplier relationships quickly. 2 Achieving any of these goals requires establishing better controls. Leveraging the right technology can help ensure that compliance and efficiency are built into each stage of the procure-to-pay process. 1 MasterCard International 2 Source: Association of Financial Professionals, 2009 Business Outlook Survey. Visa Inc., 2008 Global Cash Management Survey. Association of Financial Professionals, Minding Both Sides of Balance Sheet, J.P. Morgan Treasury Services 1

4 Many multinational corporations and regional firms are now migrating to regional or global T&E card programs. This new movement, which has been gathering speed for several years, is achieving real momentum as the credit crisis increases economic pressure on businesses. Underlying Trends of the Current Market GLOBALIZATION Energy providers, banks and airlines were early adopters of global card programs. Now globalization has pushed all industries to achieve economies of scale via strategic sourcing and consolidating/centralizing processes throughout the entire procure-to-pay cycle. As companies focus more on optimizing global cash management, every aspect of this activity is being centralized and handled on a regional, if not global, level. Because they offer attractive economies of scale and can significantly leverage travel spend, T&E Procure to Pay Process Sourcing Order placement Payment and settlement Reconciliation Control and audit Reporting How Card Programs Can Help card programs have typically been included in these initiatives. Technology As firms have globalized over the past decade, the capability of card technology platforms has developed from rudimentary to state-of-the-art. Firms have been able to enhance their control of T&E, as better technology becomes more widely available to track expenses and leverage spend. Controlling expense now requires data that is more accurate and complete for example, detailed point-of-sale information that is more comprehensive than the simple clearing and settling of a transaction. The better the data, the easier it is to ensure travel policy compliance, automate employee expense reporting and negotiate preferred rates with suppliers. improved transparency into spend data assists supplier adherence to contract terms Enforcement policies at point of purchase through spend limit/ spend type controls on a card-by-card basis Manual entry of invoice data eliminated as card statements are received electronically electronic reporting to provide budget owners with spending information Detailed fingerprints at each step of the transaction from purchase to approval to reconciliation Transactions automatically allocated to general ledger codes/cost centers to reduce time and coding errors Increased visibility into the overall spend with transaction data automated triggers to notify Program Administrators of any suspect card use Detailed data integrated into General Ledger electronically Transaction level data and reports allow for more accurate tax and 1099 reporting The management features of a good T&E program automated expense management and reconciliation, local cardholder service, globally consolidated data and centralized supplier negotiations can save firms significant amounts of money. The technology now available makes these capabilities more accessible to more companies than ever before. Market consolidation The need to invest in technology infrastructure has driven significant market consolidation. As larger client organizations globalize their businesses, they seek technology-enabled shared service centers that can consolidate back office functions. According to a 2009 Global Shared Services Survey by Deloitte Consulting, companies are continuing to expand their footprint of shared services operations and the pace of activities and deployment of global shared services will increase at an unprecedented pace. This would indicate that firms will seek providers that are able to span regions and that single-market issuers will experience a declining market share among multinationals. Their former clients will want the largescale economies and technology-supported capabilities that only regional/global providers can supply. As a result, fewer card providers are investing in emerging geographies Asia, Eastern Europe and the Middle East and are choosing to focus instead on local offerings. All of these market pressures have caused some providers to exit the market. In contrast, J.P. Morgan has been investing in this area and in recent years has experienced rapid growth. While working in these complex and challenging markets, we have learned some valuable lessons. We believe the current economic climate is ideal for a review of some of these learnings. We also believe in sharing best practices with firms now seeking the Card/T&E program options that can best help them expand globally in a relatively short time frame. 2 The New Migration: Global Card Programs

5 Global Corporate T&E Opportunity TOTAL SPEND ESTIMATED AT $635 BILLION Why implement a global corporate card program? 3 Improved control of spend $32 SAMEA $146 ASIA PACIFIC $234 EUROPE $37 LATIN AMERICA $204 NORTH AMERICA Overall, global T&E spend is growing. In addition, research shows that only 32% of MNCs have a comprehensive multinational T&E card program. Of the 60% who have not yet implemented a program, 21% said that they had plans to expand cross borders many of them within two years. 3 Better employee compliance 3 Enhanced employee satisfaction 3 Increased purchasing power from leveraging spend 3 Reduced administration costs 3 Reduced funding costs 3 Better reporting and data delivery to identify misuse as well as to negotiate better rates with vendors Source: Based on market sizing in 2004 with Garfein and Mastercard Analysis in Expanding Beyond Borders The Business Case Most firms define their card program s objectives and quantify the benefits of consolidation at the onset, thereby ensuring they have clear benchmarks to measure success. Specifically, J.P. Morgan recommends that firms develop a well-articulated business case for senior management that details the following: 1) direct cost savings to the company associated with the implementation of a regional or global T&E card program, 2) process efficiencies of the program for company travelers, treasury, finance and procurement and 3) potential for realizing financial rebates. To support this case, a simple questionnaire can be developed to gather information on the company s local payment practices and enable data comparisons across countries and regions. We recommend companies embarking on a card program complete the following: Identify any existing card programs and statistics Establish potential metrics for the new program Identify strategic suppliers Determine whether there are any existing program barriers Profile financial systems, including enterprise resource planning (ERP), general ledger systems and expense management systems Document current payment procedures Identify and publicize a company-wide T&E policy that properly accounts for regional and cultural differences around the world. This policy should ensure that all legitimate T&E is mandated on the card, maximizing volume, and consequently maximizing rebates. J.P. Morgan Treasury Services 3

6 Did you know? Some Key Facts about Cards Low cost, traceable, and fully electronic payment tools, T&E cards are the fastest growing part of the payments world (J.P. Morgan client survey) Global volumes of card spend are increasing rapidly and competing with traditional payment methods Over 26 million organizations globally accept some type of payment cards (The Nilson Report, May 2008) MasterCard International estimates that the value spent on commercial cards in Europe will grow by 58% by 2011 Purchasing card enhanced data doesn t really exist outside of the U.K. and the U.S. Hotel folio data and car rental data is not very common outside of the U.S. A Hard Look at Card Acceptance Card acceptance across borders presents a high hurdle. For companies still without a global T&E card program, the ability to use a broader acceptance platform may be a powerful incentive. But these firms must look carefully at whether the card they are considering is accepted in the places their employees are likely to do business. The level of card acceptance will impact cash usage and reporting for the company. If their card is not accepted, employees must use their personal card or cash to pay for T&E expenses. Non-acceptance creates more difficulty for companies than employee inconvenience. The transaction becomes paper-based, generating no management information reports. If salient detail like merchant category information is not captured, everything about the paper transaction is lost to automated reporting. In addition to missing any rebate opportunity on this transaction, the company also opens the door to employee misuse through handling a paper invoice. (See: Card Technology Curtails Employee Misuse ) Visa and MasterCard have impressive technology in place for merchant acceptance, particularly in emerging regions like Eastern Europe. As these regions join the global business economy, they become increasingly important in terms of managing T&E spend. Global companies are therefore looking for card solutions that will operate in less-developed economies. U.S. companies once preferred to locate in Western Europe, but this has changed in recent years, with many firms now situating shared service centers in Eastern Europe, where the costs for well-educated labor are lower. As less-developed economies increasingly come online, your firm should consider the possibility of conducting business in these countries over the next few years, and what kind of platform will be necessary to support T&E there. 4 The New Migration: Global Card Programs

7 Pre-RFP Review of Key Program Issues Whether they opt for a regional or a global approach, expanding firms must plan and execute a country-by-country rollout. Major concerns in selecting a provider include card acceptance, cost management, secure reporting and integration, consistency of service and fraud protection. While considering all this, companies must also bear in mind that the firm s CEO and indeed all its employees will be carrying the card that is selected. Any issues that employees, at whatever level, may encounter in using their card such as non-acceptance will reduce adherence to the firm s travel policy. It s critically important, therefore, to ensure that any potential snags in the program are identified and addressed in advance. We recommend conducting a thorough review in advance of the company s RFP process. This review should include a wide array of factors and should carefully detail the scope of the new program before the firm reaches out to potential providers. How best to approach this task? J.P. Morgan recommends that firms first look carefully at the following key factors in this review: the countries the firm is expanding into, the currencies they wish to deal in, the volume of transactions they expect, and the particular level of card program expectations within the company. Some additional organizational questions to consider: How much additional effort will be required of the company to set up card programs in different countries? What is the projected cash flow impact of setting resources against this project? Is the company accustomed to making centralized buying decisions? Can the firm s corporate office mandate travel policy to all of its regions/employees? Importance Ratings for Value Drivers by Market Type When viewed by market type, distinct patterns of customer needs evolution are evident as markets move through the maturity cycle. + MOST IMPORTANT LEAST IMPORTANT Emerging Markets Maturing Markets Mature Markets Cost management Reporting & Integration Reporting & Integration Acceptance Acceptance Support & Administration Protection Financial Offer Quality of Staff Reporting & Integration Support & Administration Relationship Management Support & Administration Cost Management Acceptance Implementation Quality of Staff Protection Financial Offer Relationship Management Financial Offer Service Linkages Single Source Capability Single Source Capability Relationship Management Protection Cost Management Product Features Implementation Implementation Quality of Staff Service Linkages Service Linkages Single Source Capability Product Features Product Features Card acceptance is critically important for firms T&E programs in both emerging and maturing markets. Reporting and integration become most important to firms in maturing/mature markets. The firm will need to ensure that adequate credit lines are in place in each country. This frequently requires managing many contracts, very often an expensive and time-consuming process. Your firm should be sure to select a provider that can manage and provide oversight of existing contracts. Having the right people with the right responsibilities in place is particularly key to success in this regard. We also recommend that firms consider the level of protection they will require from unauthorized charges, including protection from employee misuse. For example, will they need a reporting package that can identify out-ofpattern spending? Other security and protection concerns include pre-set spending restrictions as well as regulatory compliance, disaster recovery, data protection and privacy issues. J.P. Morgan Treasury Services 5

8 It is essential to build clear accountability, personal responsibility and pre-determined escalation routes into your firm s implementation plan. Smart Data OnLine TM E Statements Available, complete with notification Powerful reporting capability Providing the client with data at their fingertips in flexible formats to help clients understand their expenditures and negotiate preferential rates with suppliers Comprehensive expense management functionality Providing clients with a range of expense management functionality, as well as reporting VAT Advisor Value add service helping clients to estimate the amount of cross border VAT that they are potentially not reclaiming Non Card transactions/users SDOL also has the ability to capture non card expenditures. This means that clients can have one central place for all expenses, without the need for separate systems Smart Data Online is a registered trademark of MasterCard International Incorporated. A Web-based reporting solution such as Smart Data OnLine TM (SDOL) for expense and information management, gives companies of all sizes the tools they need to control spending, optimize profits and ensure compliance. Multinational companies all share the need to translate expense data into business intelligence. Enterprises require a high level of information integrity and valuable insight into their expense data whether it s for consolidated, multinational views of global data to ensure compliance or to control and monitor employee spending with alerts. Since no internal review is perfect, it is important to work with a provider who can help identify important issues that may have been missed, and ensure that all goes smoothly. On-theground staff well-versed in local customs and the nuances of local regulations can help identify any pitfalls and close any loopholes before your CEO tries to use the new card. Implementation Concerns Implementation challenges in different countries include obtaining buy-in, securing lending, coping with regulations and managing contracts. Accordingly, the speed and ease of implementation are major concerns for most firms, especially for large companies with complex structures. Implementation is an extremely detailed process. For example, when a firm is contemplating implementation of a card program in 20 to 30 countries, their project management concerns must necessarily drill down to a significant level of detail. One example of such detail is how each employee will receive their card, as well as how they will access the necessary training to use the new system. A global implementation approach streamlines and simplifies this process. Experienced providers ensure successful cross-border implementations by making one global relationship manager responsible for the project. Implementation personnel should have a direct line of reporting to this individual. It is essential to build clear accountability, personal responsibility and pre-determined escalation routes into the implementation plan in order to ensure that the rollout is completed to the firm s satisfaction. A detailed, phased implementation project plan both at the local level and by region or 6 The New Migration: Global Card Programs

9 country should be utilized in order to guide and track the entire project. This plan should include project milestones and dependent steps. Once the rollout is completed, the provider s consultative implementation support should be ongoing. Firms should periodically evaluate the program after the implementation is completed. Initially, this should occur on a bimonthly or monthly basis, eventually shifting to quarterly or semiannually as the program matures. Monitoring of this kind can facilitate adding capabilities, modifying liability arrangements or adding more advanced controls if necessary. Data Management, Reporting & Integration From the ability to integrate data into their financial systems to the ease of use of their Web-based reporting interface, there are multiple reporting-related issues that any company must consider in selecting a T&E card provider/program. A major concern is the sophistication of reporting functionality. For example, will reporting be conducted locally, regionally or centrally? How will the card program support any unique tax-reporting requirements? Does the company require the charges to be billed in local currencies? Will each operating unit pay the bills for its cardholders, or will bills be paid centrally? Are reporting and settlement integrated? Data mining capabilities are increasingly important, particularly as they help companies drive down the cost of airlines and hotels. In some cases, providers can deliver hotel and airline spend reports down to a very detailed level. When planning to use reporting capabilities, firms should consider their objectives. How useful are these capabilities in helping the firm consolidate their spend, obtain a snapshot of their current spend or aggregate data across business lines? Financial Offer A key dynamic in selecting any T&E card provider is the company s desire to leverage rebates. When assessing any financial offer of this kind, factors for careful consideration include the rebate size (including reductions based on spending factors), any fees (e.g. annual fees, cash access fees, late fees, etc.) and flexibility on payment options. We recommend that companies undertake a detailed analysis of the potential impact of fee differentials. The differences of a few basis points in foreign exchange fees can turn out to be quite significant over a large volume of spend. If a client s card program is $100MM annual spend and 20% is overseas spend, then a 0.10% FX fee differential between issuers would cost the client an additional $20,000 per year in fees. 0.30% differential in FX fees would cost the client an additional $60,000 per annum in fees. ADDED ANNUAL COST $20,000 $40,000 $60,000 $80,000 $100,000.10%.20%.30%.40%.50% FX FEE DIFFERENTIAL Finally, it s important to note that liabilities and payment terms differ as do local laws and practices in various countries. To avoid potential difficulties, be sure your provider has experienced people on the ground in the region your firm is considering. Card Technology Curtails Employee Misuse A tightening global economy has brought renewed concern about addressing potential employee misuse of company funds. As firms expand into multiple countries, vendors and currencies, it becomes increasingly apparent that paper-based systems for T&E and purchasing have unacceptable levels of vulnerability to misuse. Fortunately, the new generation of card technology makes out-of-policy spending, fraud detection and card misuse much easier to detect and prevent. For expanding firms, it is important to know that auditing and control policies that are industryspecific or country-specific can also be accommodated by this technology. The best systems allow administrators a variety of online options. Many firms want to block unauthorized purchase categories (such as health and beauty spas, gaming sites, etc). Modern Web-based tools make this possible thereby allowing administrators to monitor employee compliance. Additionally, to help ensure employee compliance, administrators need to review standard reports on vendor analysis, unusual activity analysis and delinquency all online, in real time. Administrators receiving unusual activity reports can send an to an employee with a copy to their manager requesting additional information about out-of-pattern spending. Enhanced reporting and real-time visibility into spending are two essential tools for card administrators charged with the backend auditing process. Firms should seek providers that make these tools available on the Web as part of their overall card management program. J.P. Morgan Treasury Services 7

10 Outstanding providers offer best practices client conferences, where knowledgeable firms share practical ways to access the best services at the best possible prices worldwide. Overseas Overview: Complex Laws and Regulations Govern Cards Germany Complex data protection laws All air generally booked to central travel accounts Strict labor laws require any new program to be reviewed by a firm s Workers Council Checks rarely used B2B electronic payments more prevalent than card use France Very stringent data protection and privacy laws P-Card enhanced data only available from domestic French Issuers Global Single-Source Capability Firms are attracted to global single-source providers to achieve a whole range of advantages. They appreciate the simplicity of a single point of contact for global services and for managing one credit line. They also like the potential for consolidating spend volume in order to access bigger rebates. Utilizing the same process in all centers drives efficiencies within the firm, not the least of which results from global consolidated reporting and increased negotiating leverage with suppliers. Finally, the clients of single source providers often receive the benefits of best practicesharing among global customers. One example of this is J.P. Morgan s annual global client conference, where sophisticated firms participate in interactive sessions and roundtables designed to help maximize the value of their programs. Level 2 & 3 data looks different in France than in other countries Direct debit is most common payment method Eastern Europe Relative to the U.S., U.K. and Western Europe, the commercial card market is immature and principally consists of just the small and medium sized business segment Business card usage is on the increase but accounts for a very low percentage of market share P-Card is known only on an conceptual basis in this region and there is no true P-Card functionality or enhanced data available Support and Ongoing Administration Today, firms require a 24/7 support structure. Multi-lingual, local support could be more important in some places than in others. Providers with a traditionally strong footprint featuring local currency cards and local language servicing have set the bar quite high for other providers. Firms should also consider the ease of ongoing administration and the quality of such customer support. For example, is in-country customer service important for your company s expansion plans? Staff Quality Since these are the people your firm will rely on every day, we recommend you carefully address the issue of staff quality in your provider screening. What is the perception of the provider s account executives, salespeople and management? Are they well-trained, not just in terms of their card program but in terms of their background and expertise? Do they have the proper tools to ensure that your program is successful? Your firm will depend on these people not only for client service but for a smooth program implementation as well as data reporting and integrated reporting needs later on. The provider your firm selects should be able to demonstrate the caliber of their people through existing clients and references. 8 The New Migration: Global Card Programs

11 What to Look for in a Global Card Provider Up-to-date products leveraging the newest technology A pipeline of newer products already proven Experience in both pre-paid and corporate card issuance Ability to consolidate management information and deliver across the globe Features and functionality such as online statements, 24 x 7 x 365 cardholder support and superior Web-based management tools A dedicated Global Relationship Manager Coverage in all key economies globally J.P. Morgan Treasury Services 9

12 Global Card Solutions for Firms We are always reshaping our business to accommodate the global requirements of key clients. These clients tend to look at global solutions in a fairly small marketplace of providers. If they have a card solution in the United States, they expect the same capabilities at other locations. Their subsidiary in France, for example, expects to have the same capabilities. Often, our clients would rather have a card issued by J.P. Morgan in a local currency. However, where we don t issue ourselves, to meet this need, we will partner with a local bank with local support, knowledge and expertise. Our broader strengths contrast nicely with our competitors. J.P. Morgan s treasury offerings are holistic, wide in range and global. For example, our card group is located within Treasury Services, and leverages our broader treasury relationships. Each client has a senior treasury services specialist and his role is to work with that client to customize the best solution for the firm s needs including cards, ACH, order-to-pay and all manner of services. A J.P. Morgan specialist has the background and expertise to communicate with treasurers. Over the years our clients know, trust and value the broad range of capabilities that J.P. Morgan delivers. Regardless of which aspect they are considering client service, implementation, data reporting, integrated reporting, or the caliber of people that we have J.P. Morgan is a one-stop shop solution for clients needs and requirements. Cate Luzio EMEA Region Head, Global Commercial Card & Alliance Banking on J.P. Morgan s global strategy 10 The New Migration: Global Card Programs

13 One Global Partner Perhaps the biggest challenge for many companies is their ability to mandate participation in any T&E card program across their business groups and geographies. For a variety of organizational and structural reasons, most companies currently have difficulty mandating firm-wide participation; as a result, adoption tends to be by business unit. This is the single biggest reason why J.P. Morgan recommends a thorough-going, detailed and carefully planned approach to selecting your provider. This kind of approach maximizes the chances of adoption across the company as each business unit examines the business case. Given the complexities involved, most sophisticated firms find that their overriding concern is to find one partner that can optimally manage all of this with consistency and simplicity over the long-term. J.P. Morgan Treasury Services is on the ground in more than 40 countries, working with companies to deliver what they require from a holistic treasury and finance point of view, including state-of-the-art card solutions. J.P. Morgan s clients are primarily large multinational firms that value our expertise in local banking relationships and our on-the-ground experience in navigating legal and organizational issues. We combine self-issuance and alliance bank relationships to provide our clients with the greatest flexibility in key markets. Partnering with strong alliance banks is a key strength of J.P. Morgan s global solution. Companies benefit from our alliance banks considerable local market and cultural expertise, experience which enhances both the client s and the individual cardholder s support experience. Firms can be assured that our alliance banks can negotiate often highly complex country laws and regulations on their behalf. Also, local language servicing and support is offered, including many local dialects. Finally, our seasoned alliance partners already have the in-country knowledge and product development expertise required to ensure a successful rollout for your firm. On the regional and country levels, where necessary, J.P. Morgan has selected banking partners to address our clients particular needs. In select regions, our regional partner banks provide our clients with the benefits of economies of scale, leveraging across these banks markets. In addition, our strong treasury relationships with these banks means that contracting, pricing and servicing are viewed (and leveraged) across multiple markets within these banks trading areas. In markets where regional issuers do not exist, or are not strong, we select best in class banks on a country level. Similar to the regional banks, we leverage our overall Treasury relationship with these banks, with the result being that commercial cards are not viewed as an isolated business relationship. This is particularly helpful in providing strong solutions to clients in markets where commercial card demand may be lower. As a trusted provider, J.P. Morgan has many years of experience working to understand each firm s unique economics and challenges. With this combination of experience, expertise and perspective, we have become adept at building service-level requirements and aligning our capabilities to provide the precise degree of support that each client needs. The current economic climate makes this an ideal time to review some of the lessons we have discussed in this white paper. Now, more than ever it is critical to identify best practices for firms considering their options as they expand beyond their borders. Firms find that their key issues revolve around the following concepts: Ownership and Accountability Most firms prefer one account management team due to the need to standardize contracts, data aggregation, policy, cost and control. Standardization Most firms prefer one product that is consistent across borders, for consolidation, rebate and leverage opportunities. One Platform Most firms see the value of one platform for both their T&E and purchasing cards. J.P. Morgan Treasury Services 11

14 case study A Branded Retailer Manages International Growth One J.P. Morgan client is a fast-growing U.S.-based food services retailer located in four key markets in Europe: the United Kingdom, the Netherlands, Ireland and Germany. When considering extending their U.S.-based card program, the firm focused on two major requirements. First, the new system had to simplify the reporting process for everyone, including people that didn t travel enough to justify extensive training in expense reporting. Second, the reporting tool had to cover both T&E and other purchases in one space. The firm began its card program rollout in their United Kingdom stores, basically as an extension of their global agreement with J.P. Morgan. Essentially, the firm didn t require a needs analysis because they had confidence that they understood their needs in the United Kingdom. They expressed a desire to replace their paper process with cards, to give them more visibility and control and to streamline their internal processes. The firm s goals were to reduce the number of transactions as well as to sharply reduce time-consuming exception processing, such as when paper-based expense claims went missing. Their stated aim was to have fewer fire drills in the expense management process. Employees receiving new cards included all head office managers, executive assistants, buyers, district managers and regional directors in the United Kingdom. J.P. Morgan s implementation team worked with each country using a phased approach within a one-person point of contact framework. That is, each communication and step forward took place within a one-to-one relationship, as the project champion from the retailer interacted with the implementation manager on J.P. Morgan s team every step of the way. This simple but effective approach is welcomed by most firms, as it cuts down on staff time they need to dedicate to the project, says Anita Rimmington-Hill, head of J.P. Morgan s European Commercial Cards Relationship Management team in London, whose team managed this implementation. Also, this strategy significantly reduces errors and time spent recovering from problems caused by communications going astray. In particular, we recommend that the same person implement the same processes everywhere it makes sense to do so. Ms. Rimmington-Hill points out that the experience and background of the firm s client project champion is vital. Ideally, she recommends that staffers dedicated to implementation projects straddle the finance and purchasing areas of the firm, so that they have maximum visibility and understanding of the processes. It s also very important that project champions have a project management background, as both a methodical approach and detail-orientation is essential. Most importantly, the retailer reported a positive outcome. Early feedback indicates that their employees are happy with the card, with many reporting better personal cash flow. Several key factors necessary for a successful implementation: 1. Be sure that the communication regarding the new cards program is delivered by the firm s senior business manager. Topdown communication sends employees an important message about the necessity of utilizing the new cards program. 2. Ensure that cards are in the hands of the employees who most need them in this case, the employees who travel the most and those in charge of purchases. 3. Utilize road shows to train cardholders on how to use the system, for example: training line managers how to see spend. 4. Implement a firm-wide travel policy that mandates that employees sign internal documents. Senior management across the business must be involved, including finance, information technology and human resources. In the case of HR, they must be trained in the terms and documentation which must be signed by employees in relation to the proper use of the card. 12 The New Migration: Global Card Programs

15 J.P. Morgan should be commended for their perseverance. Our company is in growth mode right now and we don t always have time to dedicate to projects like this. J.P. Morgan stayed the course, however, and the people were a joy to work with. They made it easy for us. This implementation was well-delivered, done by people that we greatly enjoyed working with. Financial Controller Food Services Retailer

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