Subject: Resource allocation working group
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked]
Date: Thu, 13 Jan 2000 05:29:00 -0800 (PST)

SK - I printed this & put it in your working group file.  mm

Team--attached are my group's top 10 objectives at the headquarters level and 
at the in-country level for the international PR, marketing communication and 
social responsibility areas.  

How we prioritize

We arrive at these objectives after discussion with heads of the business 
units and senior management, and we focus on goals that support the priority 
business goals of the company and build/protect the reputation of the company 
as a whole.  On a quarterly basis (at least) we review these top objectives 
and ensure that we are staying on target.  Internationally, we are faced with 
numerous issues and crises which must be dealt with and they also take on a 
priority spot when they occur.  

There is an issue with prioritization that we must constantly deal with.  
Some of our clients are PR savvy and wish to use our services, which should 
please us except that sometimes small, low priority and visibility projects 
use too much of our time that should be spent elsewhere.  Conversely, we 
sometimes have important projects that the developer wishes to keep low 
budget and we are not allowed to have the level of input that we should. 

How human and financial resources are allocated

The bulk of our human resources currently are allocated to the regions, and 
the structure is an area in transition since the reorganization and in light 
of several open positions that we have.  We determine in conjunction with the 
business units the proper number and level of staff.  The regional PR head 
determines how his or her junior people are assigned.  At the headquarters 
level, we focus on the activities that benefit the company overall as well as 
top priority countries.  Marketing communication maintains adequate staff to 
meet customer demands, and adds temporary staff during peak periods.  

We all work on the highest priority items for the year, but also tend to 
focus on issues of the moment that are of greatest significance to the 
business unit leaders.   My goal is to keep people focused on the long-term 
objectives for the year and not get caught up in the day to day operations 
without this long term focus.  If there is an area I would like to further 
refine, it is making sure that we are better deploying our human resources on 
what is important.

How financial resources are allocated

We have a PR budget for each operating company, for international 
headquarters, for marketing services and for sustainable development.  At the 
regional level, figures are projected for each country and/or project and 
these are discussed with the various country leaders.  Headquarters budget is 
used for activities that benefit all areas and not one region or country.  

Marketing communication budget is on a bill-back basis (the most difficult to 
predict because it is comprised of costs for developing presentations and 
other marketing/sales tools.  This has been a trait of the former EI and is 
the expectation of developers--if you need it for marketing purposes you do 
it.)  As you will note in my objectives, I would like this department to 
arrange a billing system including their time and fixed costs that allows 
them to be completely self-supporting rather than allocating across business 
units.  This will encourage people to use their services more wisely.

When a new project is being pursued, budgets are approved for all aspects of 
the project including PR, employee communication and social responsibility.  
The social responsibility budgets typically fall short or are non-existent, 
and this is another area that we will be focusing on changing this year.

How this fits with budgeting process

Our allocation of resources is linked directly with our budgeting process.  
There are two exceptions:  

1--pursuing major projects that were not planned at the beginning of the 
year.  Budgets for these new pursuits are approved during the overall project 
approval process, and again, we must work to have greater input in this 
process.

2--costs for resolving major crises such as Cuiaba and Human Rights Watch 
have been significant and were not pre-budgeted.