<H3></H3><H1>Corp. Programs Go Global</H1>Regina Eisman
<B>A</B>s American business goes global, incentive travel programs are going global too.
Although the trend still is small, more companies are starting overseas operations or expanding their existing ones, and thus their incentive travel programs are beginning to branch out, bringing together employees from all over the globe rather than just from the United States.
"I am seeing a small increase in these programs as companies become more global in nature," said Mark Cioffredi, an account executive at Hillside, Ill.-based incentive house S&H Citadel. "A lot of companies still segregate the U.S. and overseas divisions, but I think that as more globalization occurs, we'll see more globalization in incentive programs as well."
"Global incentives are increasing somewhat," agreed Eve Sotnak, purchasing supervisor at Minneapolis-based Carlson Marketing Group. "We are noticing international divisions being included in incentives as companies open more offices abroad."
Bob Vitagliano, CEO of the New York-based Society of Incentive and Travel Executives, said an incentive is more likely to be global if it includes a meeting or other business component. With incentive-only programs, he said, "A lot of companies find it difficult to come up with a program that appeals to the different cultures."
But there are several benefits to doing international programs, including giving employees a deeper understanding of other cultures and forging a bond among colleagues all over the world. "You gain a much grander understanding of your company," said Michael Hurwitz, president of Philadelphia-based United Incentives, which handles a global program for a Europe-based multinational firm. "If you come from the New York area, you tend to think the sun rises and sets on the Hudson River. This broadens your perspective a bit."
While the benefits are great, there also are cultural and logistical challenges involved in setting up such programs.
IBM has been meeting these challenges for the past four years with a global incentive (including a meeting component) for its AS/400 computer division, which sells midrange computers used by small and midsized businesses. "A larger share of our AS/400 business comes from outside the United States, so it made sense for us to have an international program," said AS/400 program manager Greg Adams. The number of incentive winners from overseas, particularly from Asia and Latin America, has grown, Adams said.
"We had our best year ever last year," Adams reported. "Since we've been doing the program, we have upped our market share every year. Our number of shipments grew by 25 percent in 1995, and we expect to grow another 10 percent this year. Of course, we think some of that is because we have a good product, but we think part of it is because of the program."
Although the actual trip was relatively small, with 180 people (90 winners plus spouses) last year, the company initially targeted 2,000 salespeople (plus another 5,000 independent reps) in 140 countries, which posed a few problems, mostly related to language and time zones.
A few years ago, information about the program, enrollment forms and so on had to be faxed. "In a lot of Asian countries, they turn off the fax machines at night, so we had to stay late or come in early to send faxes," said Deborah Pressley, account manager for Atlanta-based USMotivation, the incentive house that handles the AS/400 program.
Last year, the AS/400 division, which is based in Atlanta, started using the company e-mail because it is standard worldwide. Participants can sign up for the program electronically, and their progress is communicated that way. Winners also receive details about the trip via e-mail. "Everyone in the company reads English well, even if they don't speak it well," Adams noted.
While communication is easier now, staff still must be vigilant about it. "When you're dealing with an international group, you have to get confirmation that they receive and understand the message, and that's time consuming," Pressley said.
For the incentive award itself, IBM chose a cruise, and it varies the itinerary and the ship each year. "We felt that a cruise would cross a lot of cultural boundaries," Adams said. "Everyone enjoys sun and water; a cruise also is easy to manage."
This year, IBM expects about 100 winners from the United States, Canada, Latin America, Europe, the Middle East, Africa and Asia-Pacific. They will take an eight-day cruise on Royal Caribbean's Monarch of the Seas in March. A multilingual staff of on-site travel directors from USMotivation will accompany the winners.
Over the past few years, IBM has fine-tuned the program to meet the needs of the diverse group. "We had motivational speakers before, and it didn't work," Pressley said. "To find a speaker that appeals to such a wide variety of audience members was very difficult."
Special touches will include personalized brass cabin plaques and nightly in-room gifts. There also will be a nightly newsletter explaining the next day's events, because, said Pressley, "people in some cultures are embarrassed to tell you they don't understand what you're verbally telling them. When you put it on paper, everybody understands."
For some companies, such incentive programs are not new. Computer giant NCR Corp., for example, has been running global combination incentive and meeting programs for years with the help of S&H Citadel. The company has offices in more than 100 countries, and has run incentives all over the globe, including Egypt, Rio de Janeiro, Hong Kong, Rome and France. The typical program hosts about 3,000 employees representing about 50 countries.
For NCR's director of global recognition programs, Gerry Hall, the major challenge is more logistical than cultural. "Global groups tend to be larger, so it can be difficult finding hotel, meeting and function space in some parts of the world, because European hotels tend to be smaller," Hall said. "We often have to split into different hotels, and meeting support is not always the same in some countries as it is here."
For the company's next program in Barcelona, close to 3,000 people will be split into five hotels-"which are close together, but not close enough," Hall said-and everyone will be bused to the city's Olympic village for a general meeting session.
In addition to hotel and meeting space, flight arrangements take on added complexity in a program with attendees from all over the globe. "You might have to fly people in over a few days because some locations have only a few flights a week going to the destination," said Bruce Tepper, an incentive consultant with R.W. Joselyn & Associates in Scottsdale, Ariz.
IBM eased its flight problem by switching venues. In the past, it took cruises that left from San Juan. For next year, it is booked on a ship leaving from Miami because there are more international flights coming into that city. "This way, we have fewer overnights for the international people," Pressley said.
At times, flight coordination for overseas residents can cross the line from being a hassle to being dangerous. "I once handled a trip to Mexico, and at the time, Mexico didn't recognize South Africa, so they told us the South African attendees would be arrested if they didn't leave the day of the trip," Tepper recalled. "Wouldn't you know it, their flight was canceled, and we had to scramble to get them on other flights."
When it comes to food, "Americans, Japanese and Europeans have very distinct preferences, especially for breakfast, and you have to make sure that what they want is available," Carlson's Sotnak said. "And you must be aware of religious differences, like Muslims not eating pork."
It's not just the food, but also the mealtimes that can pose a dilemma. "The typical American wants to eat dinner at 6," said United's Hurwitz. "Most Europeans and Mediterraneans eat at 10." For one program Hurwitz handled, the company chartered a ship and left the dining room open from 6 to 10, instead of having dinner seatings. Another option is a dinearound, which gives attendees cash or vouchers and lets them choose from a list of restaurants where they can eat in small groups.
Language sometimes can be an issue, which some companies, like USMotivation and United Incentives, overcome by bringing along staff fluent in different languages. But others decide that English will be the common language. Sotnak handled one combination incentive and meeting in Europe where 30 percent of the people were from countries other than the United States, but the meetings were held in English.
"The program was for a U.S.-based company, and they expected everyone to be proficient in English," Sotnak said. "But it depends on the company. Some offer simultaneous translation anyway because they want to make sure everyone knows what their message is."
In spite of the obstacles involved in global programs, the rewards can be well worth it. "Global programs are a welcome addition to a gathering, because people see what other people's cultures are like," S&H's Cioffredi said. "With NCR, which has so many people from different countries, you see all these people arriving in native dress, and it's quite a sight."
Adams said that the AS/400 program has helped the salespeople in their day-to-day work. "The relationships these people build on the cruise will carry over into the business world," he said. "A key motivator for winners is that they will get to know somebody in Mexico or Germany or Japan who can partner with them when the need arises.