Improve Travel And Expense Management Through

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Update Your PlaybookImprove travel and expense managementthrough gamification and mobility

Executive SummaryWith across-the-board rate increases in air andhotel forecasted for 20131, travel and expensemanagement professionals face a new challenge:how to maximize constrained budgets with innovativesolutions that meet the expectations and demandsof today’s younger workforce. The traditional traveland expense management playbook has relied heavilyon policies and controls for influencing employeebehaviors to better manage costs, but these methodsare becoming less effective. We believe thatadding mobility and gamification to the playbookcan be part of the solution.The workforce is changing.Generation X and Millennials,who make up over half of theworkforce2, have fundamentallydifferent attitudes towards technology and communication in theworkplace compared with BabyBoomers. Preliminary studiesshow that the “stick” approachto influencing behavior is not aseffective with this demographic,making policy and controls a lessviable stand-alone option formotivating compliant and costconscious actions.Mobility is the new ”business-asusual”. Consumer and workplacelife has been infiltrated by mobilityas the use of smartphones andtablets explodes, placing newdemands on organizations foreasy-to-use enterprise mobileexperiences. By bringing enterprisetravel and expense managementcapabilities to the mobile device,organizations can make compliantemployee actions, like booking onthe preferred corporate tool, easierand more accessible.Compliance may not be topof mind. Gamification—anincentives-based approach usingcompetition and collaborationto motivate desired behaviors—can help align the interests ofemployees with the cost andcompliance aims of the organization. Together these strategiescan enable corporations to leveragethe changing dynamics of theworkplace to influence employeesat key points in the travel andexpense process.Of course, one size doesn’t fit all.To successfully drive behavioralchange, a mobility and gamification strategy should be tailoredto each organization’s people,process, technology and culture.In particular, capturing insightsfrom disparate sources of traveland expense data will be importantto sustaining that change.Getting gamification and mobilityright is worth it. The results canbe two-fold: a more engagedworkforce and relieved pressureon budgets.Update Your Playbook 1

IntroductionFollowing years of tight budgets, corporations arefinding that traditional methods of optimizing traveland expense management, such as tighter controls andpunitive policies, are yielding limited returns. Accordingto American Express Global Business Travel, one half ofhotel reservations across companies of all sizes are madeoutside of the approved travel booking tool.3We believe there is a better way. The next wave of thetravel and expense management playbooks will relyless on the “stick” and more on the “carrot” throughinnovative concepts such as mobility and gamification.One key challenge facing companies is how to maketravel policies accessible and compelling enough so thatemployees will be motivated to comply. Through mobility– communicating travel policy at any point in thetravel process via digital devices such as smart phones—companies can facilitate adherence. Gamification—anincentive-based approach to motivating employees—caninspire positive travel and expense behavior. Importantly,both mobility and gamification can help drive alignmentof corporate and employee interests in the travel andexpense arena.2 Update Your Playbook

Shifting Market ForcesReshaping Traveler EngagementThree major forces are reshaping the way that travel and expense managementprofessionals engage the workforce: Workforce demographics are shifting as Boomers begin to reach retirement ageand Generation X and Millennials make up a large portion of the workforce.4 Mobility is fast becoming an integral part of corporate operations. As budgets remain flat and business travel prices escalate, pressure is mountingto optimize costs.Given these trends, moving towards positive reinforcement to influence andmotivate employee travel behavior will help travel and expense managers increaseprogram compliance and capture savings.Figure 1 Market forcesChanging Workforce DemographicsWorkforce MobilityPressure to EvolveTravel & ExpenseManagementqqqContinued Cost PressureUpdate Your Playbook 3

1. New Workforce—New HabitsWith Millennials and Gen Xers expectedto comprise over 70 percent of theworkforce by 20202, a demographic tidalwave is hitting the workplace. Comparedwith their Baby Boomer brethren,Millennials and Gen Xers have fundamentally different attitudes and expectationstowards technology, learning andcommunication. Those differences haveprofound implications for the way thatcorporate managers should engage withand motivate these employees.Millennials, the so-called “digital natives,”have been exposed since early childhoodto digital technologies and entertainment.Not surprisingly, Millennials, and theirGen Xer counterparts, display an aptitudeand affinity for all things digital bothat home and work (see Figure 3).Organizations are responding to thechange. According to a study by theEntertainment Software Association,70 percent of major employers utilizeinteractive software and games to trainemployees.5Further complicating the job of corporatemanagers, Millennials are likely to ignoreor break corporate technology policies.According to Accenture research, morethan half of working Millennials areeither unaware of their companies’ ITpolicies or are not inclined to followthem.7 To lure this new workforce, traveland expense managers must providestate-of-the-art technologies that engageemployees in the ways they want tobe engaged, without compromisingenterprise security.Figure 2 Percentage distribution of the laborforce by generation20002010E20200%20%40%60%80%100%Source: Accenture analysis of Bureau of Labor Statistics Data2Next GenerationMillenialsGeneration XBaby BoomersWorld War II GenerationFigure 3AARP PercentageeachofgenerationthatDatasay they Source:analysis of ofBureauLabor StatisticsUse TwitterNext GenerationMillenialsNext GenerationGenerationXMillenialsBaby GenerationBoomers XUse TwitterPosted video of themselves onlineWorldBabyWar BoomersII GenerationWorld War II GenerationPosted video of themselves onlineUse Wireless internet away from homeUse Wireless internet away from homeCreate social networking profileCreate social networking profile0%20%0%40%20%Source: Pew Research64 Update Your Playbook60%40%80%60%80%

2. Surging Mobility TideWith smart phones nearly ubiquitous,and sales of tablets surging, mobilecapabilities are considered a “must have”in the workplace. It’s not just theconsumer market that is booming—enterprise purchases of smart phones andtablets are quickly rising too. Accordingto GigaOM, shipments of tablets to theenterprise will actually exceed those toconsumers starting in 2015.8The consumer mobility experience isshaping employee expectations forcorporate mobile capabilities. Manyemployees now expect their corporatetechnologies to be as accessible and easyto use as their personal devices andapplications.Companies have not yet fully met thisdemand: 45 percent of employees thinkthat the hardware and software devicesthey personally use are more useful thanthe ones provided at work.9 Clearlyhowever, corporate managers realize theyneed to respond—more than two-thirdsof companies rank mobility as a highpriority this year, according to a recentAccenture global survey of CIO’s.103. Budget CrunchCorporate travel and expense management budgets are being squeezed. Withthe world’s economies stuck in slowgrowth mode at best, we expect onlymodest increases in travel budgets—yetthe cost of travel is expected to swell.American Express predicts its GlobalBusiness Travel clients will see acrossthe-board rate increases in air and hotelin 20131 (see Figure 4), two travelcategories which make up more than 70percent of travel and expense costs forAmerican Express’ large corporateclients.11These pressures are creating a crunch ontravel and expense budgets. Mostcompanies do not have the option tosignificantly reduce business travel as ithelps sustain growth. Travel and expensemanagement professionals must findcreative ways to fully optimize budgetsto deliver additional value to theirorganizations.Figure 4 American Express global business travel 2013 forecasted rate increase by regionAPAC Economy Short HaulEMEA Economy Short HaulNA Economy Short HaulLATAM Economy Short HaulAPAC Business Class Long HaulEMEA Business Class Long HaulNA Business Class Long HaulLATAM Business Class Long HaulAPAC Mid-Range PropertyEMEA Mid-Range PropertyNA Mid-Range PropertyLATAM Mid-Range PropertyAPAC Upper-Range PropertyEMEA Upper-range PropertyNA Upper-Range PropertyLATAM Upper-Range Property-2%Air0%2%4%6%8%10%HotelSource: American Express advisory services’ Expert Insights global business travel forecast 20131Update Your Playbook 5

The Promise of MobilityWorkplace ChallengesInfluencing BehaviorWhen it MattersOften, communications about policyupdates are overlooked in the day-to-daybustle of work. Traditional memos orupdates on the corporate travel bookingsite may not be timely or memorableenough to influence behavior. Manyemployees may be unaware of, or simplyignore, corporate travel and expensepolicies when booking trips. Mobilitycan be used to address these challenges,directly influencing employee behaviors.Long gone are the days when access totravel planning was only available from adesktop computer or landline telephone.Offering mobile travel capabilities toemployees at key decision points in thetravel lifecycle can improve the userexperience and encourage compliance.For example, employees can book traveland update itineraries with their mobiledevice (see Figure 5).By bringing travel and expense guidelinesdirectly to employees, mobility reducesthe likelihood that employees will use aconsumer-focused mobile travel application instead of following company policy.We believe that mobile devices canhelp keep policy more top-of-mind asemployees make decisions.Figure 5 Key travel and expense process decision pointsIllustrative Travel and Expense ProcessBookKey travel andexpense pointsto influencebehaviorTravelPayExpenseChoose booking channel(mobile vs. web orcorporate tool vs.consumer application)Decide where to purchase any incidentalexpenses (e.g. meals,taxis, etc.)Select payment methodfor it (e.g. corporate cardvs. personal card)Prepare expensesubmissionSelect travel vendors fortransportation, lodgingMake any incidentalcharges while awayCollect receiptsConfirm alignment tocorporate travel policy,request approvalValuep Transparency/dataopportunitiesp Travel vendorincentivesq Travel costsSource: Accenture6 Update Your PlaybookSubmit receipts andexpense forms forreview/approval bydue dateTrack reimbursementand rewardsp Traveler engagementq Incidental travel costsp Corporate paymentincentivesp Transparency

Expense Reporting SimplifiedMaximizing Mobile FunctionsMobile expense management can alsoimprove traveler convenience andreporting accuracy and timeliness.For example, by enabling employees tophotograph receipts and manage andsubmit expense reports, mobility helpsreduce the headache of holding ontoreceipts and waiting for approval to bereimbursed. Managers can review andapprove expenses submitted digitallywhile employees are still on the go.An important consideration in devising amobility solution is figuring out how tomaximize the many features of mobilephones to help improve traveler experience and policy compliance (see Figure 6).For example, many companies push textnotifications in emergency situations tokeep employees informed and safe. Simplyhaving a mobile or tablet application thatreplicates an online site only provides ameasure of convenience.Fully incorporating these mobile featuresat key points in the travel and expenseprocess will allow travel and expensemanagers to reach employees in theplaces it matters in ways that influencedesired employee behavior.Figure 6 Mobile feature applicationsMobile FeaturePotential ApplicationsPotential BenefitsPortabilityBooking on the goEnterprise: Routes employees to corporate solutionsas opposed to consumer applicationsEmployee: Reduces risk of non-complianceGPSEnterprise: Promotes options within policy during travelProvide recommendationsEmployee: Identifies suggestions from company and colleagueswhile travelingCameraEnterprise: Reduces T&E processing expensesReceipt captureEmployee: Facilitates expensing processTextEnterprise: Helps communicate emergency plansand keep employees safeAlerts and updates inemergency situationsEmployee: Provides valuable information and alertsPush policy notificationsEnterprise: Enables real-time alerts about policy toensure communicationEmployee: Facilitates compliance and avoids risk ofnot being reimbursed due to non-complianceSend alerts for “key wins”Enterprise: Engages employee by rewarding compliant behaviorEmployee: Provides reinforcement for compliant behaviorsSource: AccentureUpdate Your Playbook 7

Innovate with GamificationWe are not talking about board games.By using game mechanics such ascompetitions and leader boards toinfluence behavior, gamification presentsan opportunity for travel and expensemanagers to have a more interactivedialogue with employees. Gamificationis growing in popularity because it helpsenterprises capitalize on the appealingpower of games to engage users andshape their behavior. Unlike traditionalmethods of imposing controls or policymandates, gamification taps naturalcompetitive and collaborative humaninstincts to increase employeeengagement.Figure 7 Application of game mechanicsExamples of“game mechanics” are: PointsLevelsChalllengesTrophies & badgesVirtual goods Set goalsTrack performanceImprove performanceCapture real-timefeedbackThese gamification ideaslead to improved:q q Companies are using thesemechanics for employees to: User behaviorUser satisfactionUser experienceLoyalty & engagementSource: AccentureGamification and Traveland Expense ManagementThere are several key decision pointsthroughout the travel and expensemanagement process where gamificationcan be used to provide positive reinforcement for behaviors that align withcompany policy or that help save thecompany money. Such reinforcementmay take the form of monetary rewardsor recognition and praise.Consider these examples: A company provides a financialincentive for choosing airline faresbelow benchmark rates or for tradingdown from first or business class to aneconomy fare (even when first andbusiness class are within policy). Toreceive the reward, the employee wouldhave to book on the corporate-approvedbooking tool and use the approvedform of corporate payment, such as acorporate credit card. The employeeis incented to book the lowest fareand follow booking policies.8 Update Your Playbook A corporation posts travel andexpense scores of individuals anddepartments on its intranet. Travelersor departments exhibiting the mostcost-conscious behaviors would receivehigher scores on the leader board andbragging rights over their peers as themost “savvy travelers”. Taking it a stepfurther, if the corporate culture meritssome form of material reward, thecompany could enter the five highestscorers in a drawing for a tablet ora team outing.While some companies have developedelaborate ‘games’ to educate employeesor incent behaviors, others have madesimple changes to existing tools andprocesses to introduce game mechanics(see Figure 7). To some degree,gamification is about creating a morecollaborative relationship betweenemployer and employee—an especiallyimportant dynamic given changingemployee expectations about how theyengage with their employers.Gamification has recently seen successin the health and wellness field. Withthe rising cost of health care, companiesare increasingly teaming with theiremployees to encourage better healthpractices. For example, RedBrick Health, aMinneapolis-based health care companyprovides an offering that uses gamemechanics, such as awards and competitions. These mechanics encourageemployees to make responsible healthdecisions such as exercising at the gymor choosing healthy snacks. The pointsthat employees earn for these decisionslink into existing internal rewardsplatforms and can be redeemed forrewards. RedBrick’s clients have seena substantial increase in employeeengagement, as well as a reductionin health risks, resulting in a 2.8:1return-on-investment over two years.12

Customizing GamificationBy 2014, over 70 percent of the ForbesGlobal 2000 will have at least onegamified application13, according toGartner. But, Gartner cautions that 80percent of gamified applications will failto meet business objectives by 2014,primarily due to poor design.13 It is criticalto design a gamification solution that istailored to your organization’s culture.Companies should build gamificationsolutions around four considerations:people, process, technology andorganization (see Figure 8).People—Appealing toyour employeesImagine employees receiving automatic,location-based alerts providing policyguidance on their smart phones, insteadof having to search through email archivesfor booking procedures. With the demographic makeup of the workforce changing,that’s the kind of communication thatemployees expect and appreciate. Savvyutilization of the mobile channel, such assending real-time reminders, can initiate amore interactive and pointed dialogue withemployees about expense management.Process—Integrating atthe right pointIdentifying the most common points ofprogram non-compliance—such as bookingoutside of the company’s travel bookingtool—is a starting point for designing aneffective gamification solution. The key totruly changing behavior, however, will beto influence or remind employees at themoment when they are making decisionsand reward desired behaviors. Then,understanding what drives employees touse other tools—loyalty to a specific hotelchain or lack of familiarity with policies—will be the next consideration.Technology—Integratingtravel and expense dataFor several large corporations that are inthe process of designing gamificationsolutions, a key success factor is havingaccess to accurate and consistent traveland expense data. One company we spokewith mentioned the importance of havinga single global platform from which tosource this data. The benefits are two-fold:simplification, since information comesfrom a common source, and streamlining,since fewer system integrations may beneeded. Other companies manage multipleplatforms by engaging a third partytechnology provider to consolidate andreconcile data across the organization.Gamification applications should becapable of integrating with existingsystems and data sources. Data accuracyis important when using a solution thatmonitors and tracks behavior. Employeesare unlikely to embrace gamification ifthey feel that the information used toevaluate behavior is unreliable, or thattheir efforts to participate are notadequately recognized.Organization—Fittingthe culturePerhaps the most important considerationfor designing a gamification solution is tomonitor alignment with the organizationalculture. A highly motivated sales force,accustomed to posting and rewardingsales performance, may be receptive tocompetitions or leader boards. Conversely,a collaborative team-based culture mayrespond less positively to individualcompetitions because they may create a“winners vs. losers” dynamic. Creativeways of appealing to collaborativeenvironments may include awarding pointsfor sharing knowledge or recommendedpractices. Different game mechanics andconstructions will be appropriate fordifferent organizations.Figure 8 Incorporating gamificationPeopleProcessAssess DEMOGRAPHIC characteristics of theworkforce that may influence adoption.Consider PROCESSES that are already in placeto ensure consistency and transparency.Example What percentage of your workforceis Generation X or Millennial?ProcessExample How will this integrate into existingtravel booking and expense logyPeopleTechnologyIdentify and integrate with SYSTEMS andTECHNOLOGIES that are already in place.Incorporate any CULTURAL considerations thatcould influence game design or mechanics used.Example How will any gamification solutionintegrate with existing tracking andmeasurement systems?Example Is the culture competitive or collaborativein nature?Source: AccentureUpdate Your Playbook 9

Accenture MyTravel Summary—bringing transparency to travelHow Accenture Embraced GamificationLike many large multinationals, Accenture, theglobal consultancy and outsourcing company, incurssignificant costs supporting employee travel; in 2012its global air travel costs exceeded 550 million.To better manage those costs, Accenture launched aglobal change program resulting in increased employeecompliance and millions of dollars in annual savings.The key to this program’s success was a gamificationapplication called “MyTravel Summary”.The application, displayed on each employee’s intranetlanding page, is linked to travel data sources thattrack individual employee travel statistics. It showsemployees in plain language how their travel decisionsimpact Accenture, as well as the environment.Travelers can see, for example, how many ticketsthey booked out of policy, how much savings theymissed, and the C02 impact of their travel decisions.Providing this degree of transparency enablesAccenture to influence employee travel behavior.10 Update Your PlaybookMyTravel Summary was part of a broader range oftravel policy changes. Mary Bastrentaz, Accenture’sManaging Director of Global Travel and Events, fearedthat these changes would engender significantemployee backlash. But to her surprise, the overallresponse was positive. For the first time ever,employees could see the impact of their traveldecisions, she noted. Bastrentaz said that ultimately“people really want to do the right thing” andMyTravel Summary is “bottom up creating a costconscious culture.”In light of the successful initial launch of MyTravelSummary, Accenture is expanding its functionality.Users will be able to compare their travel behaviorswith co-workers within their business groups andgeographies. A pilot program to reward employeeswith “Smart Traveler” badges and discounts onpersonal travel for outstanding travel behavior isalso underway. Bastrentaz believes that these changeswill encourage further engagement and deliverbusiness benefits for Accenture.

Implementing and Sustaining ChangeOnce a mobile and gamification initiativeis designed, the major challengecompanies will face is how to implementand sustain the changes it engenders.Start smallStart by piloting the program with asubset of your travelers, focusing on aspecific functional area or business linewithin a single geography. This will allowyou to learn and evolve your programahead of further launch.Team with service providersClearly setting expectations up front andclosely collaborating with your travel orexpense management providers can helpfacilitate a smooth design and implementation process.Iterate, but not too quicklyTrack your success and shareIt is important to evolve the programas you learn more about how youremployees are engaging with gamification. But don’t rush. Allow sufficient timefor your workforce to adjust and adoptdesired behaviors. We recommendsomewhere in the range of 3-6 monthsbefore making any major changes tothe program.Tracking the success of your program isan important component for verifyingthat the change will be meaningful andsustained. Insights on program successshould be shared with the broaderemployee community to help maintaincross-organizational support.Integrate employee feedbackListen to employee feedback and combineit with your success metrics to identifywhere to make adjustments. In order tomaintain the success of a gamificationprogram for the long term, you shouldheed feedback from your employees sothat the program continues to meet theevolving needs and characteristics ofyour workforce.Steps for Implementing and Sustaining Change Start with a pilot in a specific part of your organization Team with your service providers throughout the process Gather feedback from your employees Track success metrics from the startUpdate Your Playbook 11

ConclusionTravel and expense professionals have a significantopportunity to shape employee behavior by leveragingmobile capabilities and gamification. These strategies,which have been used successfully in employee healthand other enterprise applications, have shown good initialsuccess in delivering employee engagement and savingsto travel and expense management.The drive for action is clear. It’s time for travel andexpense managers to update their playbooks for thedigital age. Companies have likely exhausted punitiveapproaches to travel compliance that may have workedin the past. Moreover, such approaches are out of stepwith today’s younger workforce which is accustomedto the use of digital devices both at home and work.Mobile and gamification initiatives, if designed andimplemented to meet the nuances of your organization,can have a big payoff: a highly engaged workforce,increased compliance and potential cost savings.12 Update Your Playbook

Footnotes1. American Express, “American Express Advisory Services’ EXPERT INSIGHTS GlobalBusiness Travel Forecast 2013,” 2013. Note: All predictions are for likely changes inrates American Express Global Business Travel clients can expect to pay.These changes are not a prediction of average published rates by airlines or hotels.2. Accenture analysis of Bureau of Labor Statistics data in “Employment Outlook:2010-2020”. Note: Bureau of Labor Statistics data does not align exactly to thegenerational definitions. These percentages are an approximation based on theBureau of Labor Statistics age segmented data.3. American Express, “American Express Advisory Services’ EXPERT INSIGHTS GlobalBusiness Travel Forecast 2013,” 2013.4. For the purposes of this study we defined the generations as follows:1) Millennials are those born between 1980 and 2000, 2) Generation X are those bornbetween 1965 and 1979, 3) Baby Boomers are those born between 1946 and 1964.5. The Entertainment Software Association, “Games: Improving the Workplace,” 2012.Retrieved on March 11, 2013 from workplace.asp6. Pew Research Center, “Millennials, A Portrait of the Generation Next. Confident.Connected. Open to Change.,” February 2010. Retrieved on March 11, 2013 illennials-confident-connected-opento-change.pdf7. Accenture, “Millennials at the Gates: Results from Accenture’s High PerformanceIT Research,” 2008.8. GigaOM, “Forecasting the tablet market: over 377 million units by 2016,”February 2012.9. Accenture, “The Genie is out of the Bottle: Managing the Infiltration of ConsumerIT Into the Workforce,” October 2011.10. Accenture, “Always On, Always Connected. Keeping Up with Mobility: The AccentureCIO Mobility Survey 2012,” January 2012.11. Accenture Analysis of aggregated travel and expense management data for largeAmerican Express corporate clients.12. RedBrick Health13. Gartner, “Gartner Predicts Over 70 Percent of Global 2000 Organisations Will Have atLeast One Gamified Application by 2014,” November 9, 2011. Retrieved on March 11,2013 from 1844115

About AccentureAccenture is a global managementconsulting, technology services and outsourcing company, with approximately261,000 people serving clients in morethan 120 countries. Combining unparalleled experience, comprehensivecapabilities across all industries andbusiness functions, and extensiveresearch on the world’s most successfulcompanies, Accenture collaborates withclients to help them become high-performance businesses and governments.The company generated net revenues ofUS 27.9 billion for the fiscal year endedAug. 31, 2012. Its home page 2013 Accenture.All rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.This document is produced by consultants atAccenture as general guidance. It is not intendedto provide specific advice on your circumstances.If you require advice or further details on anymatters referred to, please contact your Accenturerepresentative.This document makes descriptive reference totrademarks that may be owned by others. The useof such trademarks herein is not an assertion ofownership of such trademarks by Accenture and isnot intended to represent or imply the existence ofan association between Accenture and the lawfulowners of such trademarks.

corporate tool vs. consumer application) Select travel vendors for transportation, lodging Confirm alignment to corporate travel policy, request approval p Transparency/data p Travel vendor incentives q Travel costs Decide where to pur-chase any incidental expenses (e.g. meals, taxis, et

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