Extracting useful information out of International Assignment management systems can sometimes seem like using Stonehenge to determine the date of the winter solstice. So what can be done to transform these systems from the antiquated to the adequate?

Richard Cox, a senior consultant with the ETF, drew the Stonehenge analogy during a presentation called ‘Supporting value with systems’ at the ETF Congress. The building of Stonehenge "took thousands of years and vast resources to build, yet actually provides very little information in return to considerable effort," said Cox.

It is not unlike a number of management systems reviewed by the ETF. "In general, [such systems have] been developed over long periods, using large teams and plentiful resources," said Cox. The ETF is an association made up of member companies, such as BP and Heineken International, which develops solutions for international HR issues.

These systems tend to be expensive and require considerable implementation. Once they are implemented, Cox said, their primary functions are administrative in nature, with the querying and reporting functions seeming limited and difficult to use.

International assignment (IA) systems naturally deal with a lot of information and administration. But the querying and reporting functions are often provided through "third party software or else limited built-in modules which are very difficult" for administrators and decision-makers to use, explained Cox. Though the information exists, users often do not have the specialist expertise needed to get at it. 

"The overall result is one of lots of information and effort going in, and comparatively little coming out," he said.

"Given the high cost of many companies' expatriate programmes, accurate, timely information is essential if the right changes are to be made to enhance value and reduce cost."

Some organisations are working in this direction, developing systems which suit their expatriate programmes.

In 2001, Philips began a massive overhaul of its expatriate programme. One of the key elements of change was the introduction of a new management system, called ExStream. The software lays out clear roles and responsibilities that can be accessed and monitored by all stakeholders in the expatriate process, including HR and line managers as well as the assignee. 

One of the key advantages is a faster, more streamlined process, as expatriate transfers can now be completed within ten days.

"We see a clear improvement in speed compared to the past," said Jelle van Veen, Remuneration and Application Manager Corporate Transfer Services for Philips International. Van Veen discussed the organisation's new management information system at the ETF Congress.

Other advantages, explained Van Veen, include satisfying data-gathering needs; enabling all phases of the expatriate process; ensuring annual salary and incentive reviews; status tracking and automated notifications; transparency, uniformity and control; a required value agreement that creates awareness about costs and benefits; a risk reduction of poor selection which safeguards value; and ensuring attention to the post-assignment period.

Though Philips is not yet able to measure if the new system has increased the value of its international assignment programme, there is evidence that the expatriate process is improving.

"We have less expatriates, there are less unsuccessful assignments (less expatriates returned home before the actual end-date) and also, from discussions with the business partners, we understand that there is more awareness and thought about the necessity of an assignment," said Van Veen.

For companies looking to develop or redevelop their IA systems, Cox of the ETF suggests giving at least equal weight to information extraction and administration.

"Do not classify the extraction of information as a job that can be handled in a general way by a third-party reporter-writer. Instead, make it the central part of the system," Cox said. "It will be, after all, to many users the major reason for using the system."

Van Veen believes it is important to keep in mind that the system is not only the enabler of the expatriation process but also a part of the business.

"It is only possible to develop such a system if you have a clear understanding of the business needs, otherwise a system will never be adapted by the users," he said. "This also means involvement of users is essential during the development and test phase."

[The last part of this four-part series looks at assessing expat programmes holistically]

Jennifer Hamm is a freelance journalist based in the Netherlands.