AIESEC Global ER Principles

H_Global ER Principles International Presidents Meeting 2015

Supporting Document H – Global ER Principles

1. Purpose of ER Principles

This document outlines the following principles related to product standardization, market access

definition, pricing standardization, a collaboration framework between AIESEC International and other

AIESEC entities, communication principles and the responsibilities of parties engaged with the GEP

product.

2. Managing Disputes in ER Principles

In the event that the ER principles are breeched a case can be submitted to the internal control board

through the case submission procedure outlined in the internal control board supporting document

(G1_Internal Control Board Section 3)

3. Global ER Communication Principles

The Global ER Communication principles are the code of conduct in managing communication between

AIESEC and external organisations where more than one member entity is involved or impacted.

ER Communication Principles between Member Entities and AI

1 Any entity wanting to work with a current GEP, must first receive approval from AIESEC

International before initial contact with the company. AI should respond to all these inquiries within

7 days.

2 If an entity is approached by a current GEP interested in contracting with AIESEC, the entity must

collaborate with AIESEC International before moving forward. AI should respond to all inquiries

within 7 days.

3 Each member committee will ensure that their local committees are not prospecting current GEPs

without permission from AIESEC International.

4 When AI is physically selling in an entities market this should be communicated to the member

entity

ER Communication Principles between Member Entities

1 Any entity wishing to contact an external entity related to revenue raising in any other country they

should first receive approval from the MC of that country.

2 Where the sales and delivery of an external partnership takes place over multiple entities a

contract shall be made between these entities which will manage the relationship and the

deliverables of the partnership.

3 No AIESEC entity shall enter into a contractual agreement on behalf of another AIESEC entity

without their prior written consent.

4. Global Products


Why are global products important?

Global Products exist to raise finance for activities that are mandated by the global plenary and to

increase AIESEC’s impact at a level that AIESEC International is best positioned to capitalise on.

What are the products?

Global products include, but are not limited to those listed below.

● Global Exchange Programme (GEP)– This is the Global Internship Programme sold to large scale

MNC’s where the account is managed from the AIESEC International office

● Global Exchange Programme Amplifiers – These are the products that increase the appeal,

exposure and value of AIESEC’s GEP product and include exposure during AIESEC International

spaces such as conferences held by AIESEC International. These products include:

○ Global Talent Development Partnerships

○ Global Organisational Development Partnerships

Who manages global products?

AIESEC International is the owner of global products. The sales and delivery of global products may be

split between AIESEC International and AIESEC member entities. Territories interested in selling non-

exchange global products with AIESEC International are welcome to approach the AIESEC International

Business Development team to negotiate which activities will be sold, and how revenue will be split.

5. Global Market Access for AIESEC International

AI can only approach MNCs to sell Global Exchange Partnerships. These MNCs need to fulfil the

following criteria:

1. Company is referred to as a MNC in an objective public source

2. Company has significant operations in over 10 countries

3. Company either has over 10.000 employees or has a revenue over 500 million euros

Each year AI creates an active prospect list that fit the large scale MNC definition (maximum 500

companies). All other companies that falls into the inactive prospect list.

In the case AI is approached or referred to by a company on the inactive prospect list. AI is allowed to

follow up on that lead.

In the case that a MC establishes contact with a prospect outside of the MNC criteria that is interested in a global partnership and that demonstrates potential to grow on a global scale, they may invite AIESEC International to join the negotiations and allow them to manage the account. This can be done through communication with the AI VP Business Development.

The prospect list works as follows:

Entity can: On the Active

Prospect List

On the Inactive

Prospect List

Not on the

Prospect List

sell GIP to company: Yes Yes Yes

sell national partnership products to

company:

Yes Yes Yes


request co sales with AI to a company: Yes Yes No

AI can: On the Active

Prospect List

On the Inactive

Prospect List

Not on the

Prospect List

sell GEP products in an entity’s market

directly if it is:

Yes No No

request co sales with an entity: Yes Yes No

6. Global Product Pricing

The price of global products is defined and managed by AIESEC International on behalf of the global

plenary.

External Pricing Tier System

Entities will be allocated into different pricing tiers based on market prices and delivery costs in order to

be able to maximise sales taking into consideration different markets. AI allocates entities into each of

these tiers and updates on any changes during IPM each year.

Changes to Entities Allocated Pricing Tier

AI can choose to move entities between these tiers either on the recommendation of entities or from their

own analysis. Changes to which entities fall into each tier, or the price of each tier can only be changed

during IPM and the pricing will take immediate effect from the beginning of the AI financial year following

IPM (currently June 1st).

Revenue Distribution

For global exchange products where the revenue is shared between AIESEC International and hosting

entities, AIESEC International will present a table during IPM which will outline the internal distribution to

beginning on the first of June during that year.

External Pricing and Internal Distribution Table

IPM 2013 Tier Total cost per trainee

for the company

from AIESEC

Global Promotion

(AI)

Matching

(AI)

Total MC/LC Fees

(includes

visa/legality and

servicing)

1 A € 4,400 € 400 € 1,000 € 3,000

1 B € 3,100 € 400 € 1,000 € 1,700

1 C € 2,700 € 400 € 1,000 € 1,300

2 D € 2,200 € 300 € 900 € 1,000

3 E € 1,800 € 200 € 800 € 800


3 F € 1,500 € 200 € 800 € 500

4 G € 1,000 € 100 € 600 € 300

GEP Product Services - Internal Revenue Distribution

This outlines the different services that are provided as part of the Global Exchange Partner delivery.

Depending on who delivers what part of each of these services determines how much revenue each

entity receives as part of their delivery to the GEP Product. The delivery of such categories is as follows:

Model Type Global Promotion & Account

Management Talent Sourcing, Selection

and Matching Member Hosting Entity

Model A:

(1) Direct sales by AI (2) Up scaling non-

significant national

partners AI AI MC

Model B:

(1) Co-sales (2) Up scaling

significant national

partners AI MC MC

Model C:

(1) Direct sales by AI

Global Co-oridnator

manages Talent

Sourcing, Selection

and Matching AI AI MC

Pricing Tiers - External Pricing

Entities will be allocated into different pricing tiers based on market prices and delivery costs in order to

be able to maximise sales taking into consideration different markets. AI allocates entities into each of

these tiers and presents these during IPM each year. AI can choose to move entities between these tiers

either on the recommendation of entities or from their own analysis.

Changes to which entities fall into each tier, or the price of each tier can only be changed during IPM and

the pricing will take immediate effect from June following IPM.


Entity Tier Allocations I 2014

AI pricing Tier One Tier Two Tier Three Tier Four

Local Delivery A B C D E F G Norway Australia Austria Greece Azerbaijan Algeria Afghanistan

Qatar Denmark Belgium Iceland Bahrain Argentina Benin

Sweden Finland Canada Italy Brazil Armenia Benin

Switzerland France Korea Colombia

Bosnia & Herzegovina

Bolivia

UK Germany Malta Costa Rica Botswana Burkina Faso

Hong Kong New Zealand Croatia Bulgaria Cambodia

Ireland Portugal Czech Republic Chile Cameroon

The Netherlands

Russia Estonia Dominican Republic

Cote d'Ivoire

Spain Taiwan Hungary Egypt Ecuador

UAE Japan Latvia El Salvador Ethiopia

USA Singapore Lithuania Gabon Georgia

Oman Ghana India

Panama Guatemala Indonesia

Poland Iran Kenya

Slovakia Jordan Kyrgyzstan

South Africa Kazakhstan Liberia

Lebanon Moldova

Mainland China Nicaragua

Malaysia Pakistan

Mauritius Paraguay

Mexico Rwanda

Mongolia Senegal

Morocco Sri Lanka

Mozambique Tajikistan

Nigeria Tanzania

Peru The Philippines

Puerto Rico Togo

Republic of Macedonia

Uganda

Romania Vietnam

Serbia

Slovenia

Thailand

Tunisia

Turkey

Ukraine

Uruguay

Venezuela


7. GEP Delivery Service Responsibilities

All entities involved in the delivery of a GEP should mutually agree via a signed contract on the minimum

deliverables for each of the services listed above. AI is responsible for preparing this and ensuring that

the member entity signs this.

The table below outlines the list of services that must be provided by each entity as part of delivering

GEP’s.

Open In progress Match Realized Complete Reintegration

AI

- Account management - EXPA management - Define JD - S&S

1 (4,5,6)

- Promotion & sources

- Notify MC/LC - Shortlisting (GC or AI)

- Notify MC/LC - MA on EXPA (GC or AI)

- Keep contact

details

MC &

LC

- RA form on EXPA - Track Standards - Pre Visa Review

- Track VISA / Work permit - Buddy Assignment - Follow up JD - S&S (9,10,11)

- RE on EXPA - S&S (1,2,3,7, 8,12,13,14,15)

- NPS reminder (email)

- Reintegration (Recommende

d)

1S&S: Standards and Satisfaction:

1. Visa and work permit (HOST) 2. Arrival pickup (HOST) 3. Departure support (HOST) 4. Job description (HOST) 5. Duration (HOST) 6. Working Hours (HOST) 7. First day of work (HOST) 8. IND goal (HOST)

9. Insurance (HOME) 10. Accommodation (HOST) 11. Basic living cost (HOST) 12. AIESEC Purpose (HOME) 13. Expectation setting (HOME) 14. Preparation (HOME) 15. Host facilitates learning (HOST) 16. Home facilitates learning (HOME)

XPP Standards related to GEP

All entities involved in the delivery of GEP exchange products should fulfill the hosting entity

responsibilities outlined in the XPP.

Situation Hosting Entity-

General/Selection/Matching/

Acceptance/Post Match

Hosting Entity –

Preparation/Integration and

Reception/

Model A:

(1) Direct sales by AI

(2) Upscaling non-significant

AI MC


national partners

Model B:

(1) Co-sales

(2) Up scaling significant

national partners

MC MC

Model C:

(1) Direct sales by AI, Global

Co-oridnator manages

Talent Sourcing, Selection

and Matching

AI MC

8. Entities Co-Selling Global Products

Definition of co-sales:

Sales done in collaboration between AI and an AIESEC entity to sell the global products within that

entity’s country

How does co-sales look like:

● AI can approach an AIESEC entity or vice versa to work together to close a prospective global

partner, whether or not there is a current national partnership.

● If new co-sales (no current national partnership) is done in the home market of the AIESEC entity,

then that entity has the option to keep the part of TNs associated with “new sales” for that GEP.

See Option B in GEP Delivery Models Definition.

● Any TNs associated with a co-sale realized in another country will be delivered by AI, this can be

altered at AI’s discretion. See GEP Delivery Models Definition A & C.

● If there is a current national partnership, co-sales would follow the framework outlined in ‘Up

scaling of Current National Partners to Global Partners’.

● If an AIESEC entity other than AI sells a global partnership there must be agreed upon all details

regarding the sales with AI prior to selling.

Up scaling of Current National Partners to Global Partners

Definition of a significant national partner:

Any company that represent over 5% of the Member Committee budget or/and have currently minimum 5

TNs realized per year.

● When a national partner is significant, the AIESEC entity has the option to retain 100% of its

current partnership. The TNs raised in other AIESEC entities for that company will be delivered

by AI.

● When a national partner is not significant, AI will implement its GEP model (See GEP Delivery

Models Definition) in all the countries the company is partnering, including the origin of the

partnership.

● AI needs to proactively understand the national partnership which global partnerships will affect;

AI cannot make decisions that could be reasoned to negatively affect a current partnership.

Documents

AIESEC Global ER Principles