| Title: | CSGUK_SYSTEMS |
| Notice: | No restrictions on keyword creation |
| Moderator: | KERNEL::ADAMS |
| Created: | Wed Mar 01 1989 |
| Last Modified: | Thu Nov 28 1996 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 242 |
| Total number of notes: | 1855 |
From: NAME: John Sims
FUNC: Strategic Resources
TEL: 223-7243
"DIGITAL'S VALUES IN TIMES OF CHANGE"
Thanks, (Intoducer)
I know it's been a long day for all of us, but it's almost
over. I'll be brief so that we can get back to Ken for some
questions and his wrap-up.
As we've heard this day, we are at a significant milestone in
the History of the Company. We are facing more significant
challenges today then at any other time in our history from
the competitive marketplace, from the global marketplace,
from the technology race, from the economy, from our
customers, from the cynical press, the skeptical Wall
Streeters and our employees.
We understand and respect the degree to which we are being
challenged from the external environment. These challenges
are the kinds we're used to. We seem to do our best when the
going gets a little tough on the outside. As long as we
don't get complacent or discouraged, I'm confident that if
any company can win that kind of game, we can and we will. I know
it.
SLIDE 30: INGREDIENTS FOR SUCCESS
We have all the ingredients for continued success:
--The People
--The Products
--The Money
--The Customer Following
--The Reputation for Excellence
--The History of Achievement
And as you've seen and heard today, we also have the vision and
the leadership. But...so do some of our competitors. The real
question then is, does Digital have anything that gives it an
advantage over those other companies? I think we have an
advantage and I think there are good reasons for us to feel good
about Digital and its future and their role in it. And that's
what I'd like to talk to you about for the next few minutes.
Ken reminded me that because I was "A Personnel Guy", and as of
this morning "an Administrative Guy", I should be careful not to
talk about what he called "all that warm, fuzzy stuff", especially
this late in the day. He specifically warned me to avoid using
words like "sub-optimize".
Well, I wasn't going to anyway, but Ken's warning helped me
focus in on my message, which in short, is the answers to the
questions I just posed.
The first question was: Does Digital have anything, products
aside, that gives it an advantage over its competitors?
SLIDE 14: DIGITAL'S COMPETITIVE EDGE
The answer is, darn right we do. We've heard some of those things
at today's meeting. We heard that the way to success is to
embrace change in order to meet customers real business needs.
You heard Peter Smith begin by discussing how Digital's
competitive edge comes from distributed systems and a well
integrated applications environment. As Bill Strecker discussed,
this environment is a result of our single system architecture
that enables us to embrace industry standards. It also comes from
our overall systems integrations capabilities, as Russ Gullotti
explained.
SLIDE 16: SPEAK IN CUSTOMERS LANGUAGE
The speakers worked as a team in a most powerful way. They
integrated the information they presented, and they followed the
theme of what the sales person needs to know. . . what all of us
need to know. As Dave Grainger and Jack Smith both emphasized,
the Sales people need straight talk from us. They need to know
the products and how to explain them. And they need to do this in
language customers understand.
Jack talked about changing the way we learn. The old classroom
methods are too limited. We need to use alternative approaches
that engage people in hands-on learning, and, most importantly,
we've got to get practical and, at least in the short term, we
need to roll up our sleeves and help close sales.
One of Dave Grainger's major messages screamed out at us. That
message was: "We've got to simplify the process." We must cut the
red tape that slows us down. There are limited resources, and
they have to be better integrated.
Dave also emphasized that programs like these will only work if
our people are committed to them, are well trained, and can work
in an atmosphere that continues to encourage creativity and
innovation.
Finally, what everyone has said in one way or another is that we
must never forget that it is people who buy from us and who work
for us. We need to build strong relationships and the basis of
these relationships are our people.
SLIDE 2: PEOPLE--DIGITAL'S MOST VALUED ASSET
People are our most valued, most envied, and most sought-after
resource. They are what makes us go...and we had better take the
time to fully understand and appreciate the extent to which this
statement is true...or they could be what makes us stop.
It is their competence and hard work and loyalty that has brought
the company to this point and it will be their competence, hard
work and loyalty that will keep us growing into the future. If we
have any passion for winning, it must be felt by them. They must
be the fire in our corporate belly.
The other thing that gives us an advantage over other companies is
the Digital value system...not the warm fuzzy stuff, but the real
hard core feelings and beliefs that are in our people that make
Digital the company it is and will continue to be.
SLIDE 4: SUCCESS DEPENDS ON QUALITY
The Company's success to date is well documented by the
business journalists. They have made us well known as a
great company based largely on what we do. But, the real
source of our greatness as a company lies not only in what we
do, but in who we are and how we do things. We are a
hard-working, high performing organization whose primary goals
continues to be quality, whose overriding priority continues to be
customer satisfaction, and whose hallmark continues to be
excellence. That's not warm and fuzzy, that's real stuff...the
stuff of which true corporate greatness is made...we had it when
we started in 1957...we've had it through recessions and shakeouts
and reorganizations and down cycles...and we've got it and we must
not lose it!
In today's fiercely competitive environment, it is important
to keep the faith as it is to keep the books....to remain
committed to the simple but powerful ideas on which this
company was founded.
SLIDE 6: VALUES
Where do we find strength and courage to do this? It comes from
Digital's bedrock values that must hold us together and keep us
centered. These values provide our stability in an environment of
constant change.
Ken has reminded us many times how these values must continue to
set us apart from the competition. Values such as
honesty...commitment...quality...completeness...simplicity, and
receptiveness to people and their ideas.
SLIDE 7: VALUES INTO PRACTICE
How are these values translated into practices?
- By listening to our employees and by acting on what we have
heard
- By treating each other with respect.
- By creating and delivering quality products and services
- By reducing red tape--for our customers and for those within
the company
- By taking responsibility and being accountable for our actions
- By knowing our areas of expertise and developing ourselves
professionally
- And by giving our employees the tools they need to get their
work done.
SLIDE 31: CORPORATE PHILOSOPHIES
Our values are based on Digital's corporate philosophies that were
developed 33 years ago. They represent the body of beliefs that
go to make up Digital's value system, and with all the other
changes that have taken place over our first 33 years, these
beliefs have remained unchanged. They are written in simple,
straightforward language and they require no intricate
interpretations.
They deal with the simple but powerful ideas I mentioned earlier.
SLIDE 32: DO THE RIGHT THING
One of those philosophies is called "The first rule." It says
simply "when dealing with a customer, vendor, or an employee, do
what is right to do in each situation."
Viewed in a slightly different contact, these philosophies are a
recipe for leadership. Remember, managers motivate their people
to do things right, while true leaders inspire their people to do
the right thing. Obviously, we want and need an organization full
of leaders who inspire.
Within this framework, we need to maintain an environment in the
company in which every employee at every level feels respect for
our past, involvement in our present, and responsibility for our
future.
As we are members of Digital's management corps -- make the
leadership corps-- each of us has he responsibility to ensure that
our people are invested in Digital's substantive values, which
support the success of the company. These values must be
institutionalized in our organization, and they must be passed on
and perpetuated in our culture throughout the world.
Quality, not growth, must continue to be our goal. Customer
service must continue to be our overriding priority. Real
progress and durability, not mere survival, must be our
measurement. And excellence, not mediocrity, must continue to be
our hallmark.
SLIDE 33: WORKING ENVIRONMENT
If we say that our employees are our most valued asset, they
must be treated that way and be made to feel it. We must
continue to provide a working environment in which
creativity, innovation, collegiality and risk-taking are
valued and rewarded, and we must show the same loyalty and
support we expect.
We must also recognize that because of its traditions of
success and its reputation for quality, Digital continues to
be the object of very high expectations by the outside world
as a standard of excellence in industrial leadership,
commercial success, social responsibility and good corporate
citizenship. Sometimes these expectations are unreasonably
high, particularly on Wall Street, but we can't let them
distract us from our real mission which, simply put, is to
satisfy our customer, employees and shareholders, and to stay
in business forever.
There are three key challenges that I want all of us to take from
today's meeting.
SLIDE 19: THREE CHALLENGES--MANAGE CHANGE
The first challenge is to manage change.
For Digital, change is a way of life. If we don't change, we
won't survive. It's that simple.
Everything talked about today touches on change. Our job is to
manage change. Our people are bombarded with change. They know
this and generally have embraced it as part of their working
lives. But change can still represent a threat to them and us.
We are the gatekeepers of change. We must see it in a positive
way and prepare our people to embrace it. As our competition
intensifies, however, we will continue to make changes ranging
from reorganization to redeployment of resources. Our job is to
make sure the effects of these changes don't weaken the morale or
destroy the spirit of our people.
SLIDE 20: THREE CHALLENGES--BREATHE LIFE INTO VALUES
The second challenge is to keep values alive and breathe life into
them where they have been weakened.
Make sure what we say we believe...and what we do..are the same.
Values offer us strength. But they are fragile. When times get
rough, we are tempted to regard them as unnecessary. This is not
acceptable. Our core values helped to make this company what it
is today. And we must protect them and make sure they stay part
of how we do our business.
Ken might be the originator and custodian of our values, but all
of us must work with him in keeping them alive. We therefore need
to be vigilant. If we are not, our values will slip away.
Honesty, quality, creativity, risk taking, and respect for the
individual are not up for grabs.
SLIDE 21: THREE CHALLENGES--ENVIRONMENT OF CREATIVITY
Our third challenge is to create an environment for creativity and
innovation.
People are our most important resource. They need the best
working conditions to maximize their contributions to the company.
They need to work in an environment that fosters free thinking and
empowerment, an environment of creativity and innovation.
If for any reason, creativity or the energy that supports it is
stifled, the company is at great risk. Unnecessary layers of
bureaucracy, red tape, lack of trust and risk taking can and will
suffocate us.
We are responsible for fighting off any such tendencies. We must
maintain a creative environment where two-way communications and
trust prevail.
To do this, we must lead. We must work with our people in setting
clear goals and removing obstacles in their path. Then we get out
of their way and let them do their jobs. This is the way we
empower them. And by empowering them we create a value based
environment that will assure Digital strong and continued growth.
Thank you.
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 69.1 | Regional Strategy-February 1990. | KERNEL::ADAMS | Venus on Remote Control | Tue Feb 20 1990 13:09 | 164 |
Please see the attached communique from the Regional Directors. Would you
please forward within your organisation as you see fit.
Subject: REGIONAL MANAGERS COMMUNIQUE
As we discussed at the BOM today please find below the
output of the recent Regional Managers Development
Program in the form of a joint communique.
We, the Regional Directors of the U.K. Country Group,
wish to acknowledge that since the formation of the
Regions in their current form in July 1989 there has been
a lack of clarity in terms of the overall U.K. structure
and how the Regions work together.
We recently met to establish a shared understanding of
how the the Regions will operate as we move forward.
The Company is evolving to a new structure which is
essential for our continued success in the 1990's.
Change is never easy and the U.K. Country Group Regions
are in the forefront of the change. To succeed it is
vital that there is a common understanding of where the
Regions, and their inter-connections, must be the same
and where they can be different.
This communique forms a basis for that understanding.
In the beginning it is important to recognise that there
are some "givens" which are fundamental to the concept
and cannot be changed.
We see the most important of these as the following:
1) The organisation will be Account driven and
focused around our customers.
2) There will be only 4 levels of management
between Pier Carlo and the front line.
3) The "U.K. Country Group" comprises 4 Regions
in the U.K. plus the Ireland Region.
4) Sales will operate via a more specialised
sales force.
5) There will be One Integrated Plan.
6) Differences of implementation within Regions
are permitted and will depend upon the local
industry and geography characteristics of
individual Regions.
A Region is a "set of accounts" and has two roles to
fulfil:
A) It "owns" all the accounts headquartered within
its geography and is responsible for managing
accounts recognised as "Strategic" by the
Corporation.
Strategic Accounts may be headquartered within
the Region or the Region may have been given
responsibility for them. Depending on the nature
of the account, the responsibility will then
extend throughout the UK, Europe or indeed the
World, thus creating a global impression for our
strategic accounts.
This is known as the "Owning Region".
B) It "delivers" correctly skilled resources, as
detailed in the Account Plans, to ensure the
successful penetration of accounts located in its
geography.
These accounts will be one of four types:
1) Owned Strategic Accounts.
2) Strategic accounts owned by other
Regions.
3) Local Accounts.
4) New Accounts.
This is known as the "Delivery Region".
***********************************************************************
REGIONAL MODEL
(For simplicity the model below has been restricted to 2
Regions. For larger numbers the same principles apply.)
\
\ Region 1 Region 2
+-----------+------------------------+--------------
| | |
| +----+-----+ +----+-----+
| | A/C's | | A/C's |
| |("Owning | |("Owning |
| | Region")| | Region")|
| | 1 | | 2 |
| +----+--+--+ +-+--+-----+
| | , .......<.......... |
| | , . |
| | , . |
| \|/ ,,.,,,,,,>,,,,,,,,,, \|/
| +----+----++ +-+--+-----+
| | | | |
E.I.S.--|--->--| A/C'S |------>------| A/C'S |(IS.SWAS.ISD.EDU)
| | | | |
C.S.----|--->--|("Delivery|------>------|("Delivery|(Customer Services)
| | | | |
SALES---|--->--| Region")|------>------| Region")|(Sales)
| | | | |
A.&L.---|--->--| 1 |------>------| 2 |(Admin & Logistics)
| | | | |
D.M.O.--|--->--| |------>------| |(Direct Marketing?)
| | | | |
C.S.O.--|--->--| |------>------| |(OEMs. or
| +----------+ +----------+Complementary
| Service Operations)
Overall:
The Regions supply the opportunities and are responsible
for maximising them.
The Functions supply the resources and are responsible
for optimising them.
The structures of the "Owning Regions" need to be similar
but the structures of the "Delivery Regions" can be
different and will depend upon the local characteristics
of the Region.
It is vital to understand that the Regions are not in
competition with each other. To maximise the opportunity
the Regions must work co-operatively together.
In this evolving organisation there will be differences
and ambiguity. We see a fundamental shift in the primary
responsibility of managers at all levels in the
organisation.
The primary task of managers will be to
"manage the differences" and not the process.
Finally, it is worth reminding ourselves why we are
making these changes. Quite simply our customers are
demanding it we must continually learn from them and
evolve through them. They want a simpler organisation
with consistent delivery around the world and for our
continued success in the 1990's we must supply it.
Many companies are struggling with similar problems today
but we believe we are leading in our approach to the
solution.
We have always been successful by taking a leadership
role and we will continue to do so.
We need to remember that we are on a journey of
evolution. We should expect change and be prepared to
manage it, working closely together with the
understanding that we all share the same goal.
| |||||
| 69.2 | New Customer "Survey" Methods. | KERNEL::ADAMS | Venus on Remote Control | Wed Apr 25 1990 08:08 | 59 |
SUBJECT: SENSING CUSTOMER SATISFACTION - A NEW APPROACH
DATE: 23rd April 1990
FROM: Customer Satisfaction Sensing Team :
Keith Johnson
Valerie Watt
Geoff Weeks
Linda Wooldridge
Following Geoff Shingles' recent mail announcing the immediate stopping
of all functional customer survey processes, the BoM have adopted a new
model for sensing customer satisfaction.
Guiding principles :
It supports a quality customer care culture and provides data which is
of value for action.
It is action oriented to ensure it brings about improvements for the
customer.
It measures people on their contribution to customer satisfaction not
on numeric results which lead to manipulation of the process.
It uses appropriate tools for different aspects of the sensing process.
THE MODEL comprises three elements :
The Marketplace - How well do we compare to the competition?
This element will be an independent survey of our customers and those
of our competitors run by an outside body. It will sense the
comparative satisfaction of the marketplace with Digital.
The Customer - How well do we look after the Account?
This element will sense how our customers as organisations view us. Two
methods will be used in parallel :
Firstly, customer input through a senior Digital manager by interview.
Secondly, customer input via account teams; corporate, national,
portfolio and geographic.
The Individual - How well do we look after the detail?
This element will sense the satisfaction of individual recipients of
service within a customer immediately on completion of the individual
activity. This is to provide immediate data to operational managers
for rapid action.
The implementation is fully embedded within Simplification and
integrated with the Customer Care and Easy to do Business programs.
This will ensure the strongest possible momentum to a successful
implementation during FY91.
| |||||
| 69.3 | Expenses guidelines 1991. | KERNEL::MOUNTFORD | Fri Jan 04 1991 11:53 | 691 | |
From: PAUL_DINWIDDY at SUBURB
To: See Below
Attached is the revised expenses policy which comes into force from January
1st 1991. Also included are the guidelines.
The policy is also available through VTX.
Alastair Wright
UK Personnel Manager
UK EXPENSES POLICY
PURPOSE
To explain what expenses employees can be reimbursed by Digital.
SCOPE
All UK employees.
POLICY
Digital's policy is to reimburse employees who incur expenditure in the
course of business.
An employee is naturally expected to use good judgement when incurring
expenses on the Company's behalf, and generally to behave as if the
employee were spending their own money.
Digital will repay all reasonable business-related expenditure.
"Reasonable" is defined as enabling an employee to live comfortably, but
not extravagantly, whilst away from home.
Certain items which Digital is willing to repay are considered by the
Inland Revenue to be liable to income tax. In these cases an employee will
be repaid separately, with the company paying the income tax.
An expense claim must be submitted promptly following a trip; or at regular
intervals for on-going expenses - for example, regular business mileage.
In any event, claims should be made within 30 days of the expense. Late
claims may give rise to income tax complications so any claims received by
Expenses later than 60 days will require Regional Finance Manager, or
equivalent approval, before being sent to the Expenses department.
A list of items and services that are acceptable is available on VTX or
from Personnel. The list applies to all employees, and is an integral part
of this policy.
Where Expenses or Payroll receive a claim which doesn't meet this policy it
will be returned, unpaid, to the cost centre manager for correction and
re-submission where appropriate. This does not of course replace a
manager's responsibility to ensure that their employees are aware of, and
comply with this policy.
CREDIT CARDS
Company sponsored credit cards are available for employees who travel
regularly. These replace the cash floats previously made available.
Existing floats may be retained at management discretion, provided no
company credit cards are held as well.
Tax note: If employees use the card privately they could become liable to
pay income tax on the company-paid subscription.
PRIVATE CREDIT CARDS
Digital does not pay for private credit card subscriptions.
TRAVEL ADVANCES
Travel advances can be made to cover unusually high expenses, or expenses
not covered by a company credit card.
Tax note: In order not to breach Inland Revenue rules, advances over �1000
cannot be provided.
RESPONSIBILITIES
* Compliance - All managers with responsibility for approving expenses.
* Adherence - UK Finance Manager
* Audit of claims - UK Expenses Department
EXPENSES GUIDELINES
Basic principles
This document shows an employee what the company or
Inland Revenue consider reasonable business expenses.
It is to be used as a guide. Where an item is not
covered, common sense will normally tell an employee if
a claim is reasonable.
"Reasonable" is defined as "that which enables an
employee to live comfortably, but not extravagantly,
whilst away from home."
As a general principle an employee should seek the best
value for money.
Employee should obtain a receipt wherever possible, and
in all cases for expenditure over �3. The �3 is an
Inland Revenue limit, and by following it employees
demonstrate to the Inland Revenue that the expenditure
was actually incurred. Receipts also enable Digital to
reclaim substantial sums of VAT.
Tax note: If a number of trivial values are grossed up
for a claim, it is in an employee's interest to include
a breakdown. This is because the Inland Revenue may
assume that any unsupported sum is actually for a single
item, and if it is without supporting documentation may
take it as a taxable payment, so giving rise to a
personal tax liability.
CONTENT
1 Airlines
2 Charter Air Services
3 Trains
4 Car Hire
5 Car Mileage Allowances
6 Hotels and Lodging
7 Non Chargeable Items
8 Meals whilst Travelling
9 Late or Weekend Working
10 Combined Business and Holiday Trips
11 Off-site Meetings
12 Cleaning, Ironing and Laundry
13 Tipping
14 Telephones
15 Entertainment
16 Business Trips over Three Months
17 Parties
18 Residential Courses
19 Course Breaks
1. Airlines
Digital will pay for economy class tickets. The
company's travel agents will book the most economical
method available, using PEX, Apex, or Economy as
appropriate. First class is only acceptable if the
flight is Night Economy and its price is no more than
normal Day Economy.
If an employee chooses more expensive tickets then the
individual will have to pay the difference, except as
follows:
* Where employees have physical problems that would
prevent them from flying Economy. This must be approved
in advance by employees' managers.
* If an employee is travelling with a customer who is
flying First Class or Business Class.
* Business Class is authorised for international flights
of eight hours or more.
Downgrading an airline ticket to accommodate the travel
of others is not allowed.
Please note that any promotional benefits (such as free
tickets) gained whilst travelling on business belong to
Digital.
Digital provides travel accident insurance. Flight
insurance is therefore not repayable.
If an employee is not returning the same day, airport
parking must be in the long term car parks.
Airline Executive Cards
The company does not reimburse airline executive cards.
2. Charter Air Service
This service must be obtained via Purchasing who have a
list of qualified vendors
Note: Under no circumstances will Digital reimburse the
costs of private flying. Any use of private aircraft is
entirely at an employee's own risk and liability.
3. Trains
Second class fares are claimable. If single journeys are
five hours or more, or, if there is a business need,
then first class can be used with the manager's prior
approval.
An employee can also travel first class where the train
fare does not exceed the cost of the relevant air-fare -
where that would be an appropriate alternative.
4. Car Hire
Hire cars should only be used when public transport is
unavailable or inadequate. Costs should be minimised by
sharing cars wherever practicable.
Hire cars must be class A or B. Other classes should
only used in special circumstances e.g. four employees
in a car.
Avis or Hertz
Where possible Avis should be used. If Avis are not
available, Hertz are the second choice. Avis provide
Digital with a greater discount than Hertz.
Replacing a Company Car
Employees who are car supplement holders are expected to
make a vehicle available for their own business use. Car
rentals are not normally re-imbursable unless part of
connecting air, rail or public transport travel plans.
Car rentals incurred by employees eligible for company
cars will only be reimbursed in emergencies and, in the
case of mechanical repairs, where contact with the
leasing company is impractical. Replacement vehicles for
company lease cars whilst being serviced must be
arranged through the leasing company. If that is not
possible then proof must be provided that it was not
possible together with the claim.
Car rental pending delivery of a company car will be
accepted, with the cost centre manager's prior approval,
or as a replacement vehicle whilst a company car is off
the road following an accident. A car of an equivalent
level to the one leased may be obtained, but Avis may
not be able to match the lease car model for model.
Extra Insurances
Since Digital covers accident insurance directly, both
collision waiver and personal insurances should both be
declined, as they will not be reimbursed.
Personal accident insurance is covered through the
Business Travel Accident Insurance Policy.
5. Car Mileage Allowance
To obtain authorisation the following criteria must be
met:
1. Approved business need.
2. Where an employee is not using a company car, and
before authorising the journey, the manager must ensure
that the employee has insurance cover for business use.
Only the exact journey mileage will be reimbursed, as
follows:
1. Journeys between work locations will be reimbursed
at the current mileage rate.
2. When travelling between home and work locations
other than the normal place of work, the company will
reimburse the lesser of the following at the current
mileage rate:
Either
A) From home to the temporary work location
or
B) From the normal place of work to the temporary
work location.
Any car parking fees, but not fixed penalty tickets,
will be repaid.
Airport parking, if not returning the same day, must be
in long term car parks.
Tax note: No repayment will be paid for travel between
an employees home and permanent place of work at any
time, except for approved relocation, covered under
separate policy. Any such payment would be taxable in
itself, and for lease car holders, would also give rise
to an income tax fuel scale charge.
6. Hotels and Lodging
UK travel guidelines
Reasonable costs for a room with breakfast while on
business will be paid. Managers are responsible for
ensuring that good judgement is used in determining what
is reasonable. Outside the UK, accommodation must be
booked through the company's travel agents.
Three star hotels
Three star hotels should be used where possible.
Purchasing have a list of approved hotels on VTX. Where
such hotels are not available, the daily rate should not
normally exceed �50 plus breakfast, or �75 plus
breakfast, if required to stay in an inner city hotel.
These rates should only be exceeded when reasonable
efforts have failed to find accommodation at these
levels, or an employee is accompanying a customer.
How much to claim
Up to two meals a day can be claimed - in addition to
breakfast in the hotel. The cost of these, including
drinks, must not normally exceed �20 for dinner, or �5
for lunch. Reasonable drinks with a meal would be a half
bottle of house wine or or pint of beer.
Tax note: Any claims in excess of these limits, or not
supported by receipts, might be regarded by the Inland
Revenue as benefits, and could therefore give rise to a
personal tax liability. It is the responsibility of
individual managers to ensure that good judgement is
used.
Lodging privately
If an employee stays with a Digital colleague, friend or
family, then up to �25 per night may be claimed.
Payment could be in the form of a gift for, or payment
to the host, which is reasonable and agreed by the cost
centre manager. This may be combined with a meal, with
one receipt for the bill for the employee and the host.
Any gift or payment for such lodging must be supported
by receipt(s).
Phoning home
If you are away from home overnight it is acceptable to
charge a call home. Where practical please try to
economise by calling from a Digital office or by using a
credit card for calls from the hotel.
7. Non Chargeable Items
Items of a personal nature are not re-imbursable. If
claimed and reimbursed, they would be regarded by the
Inland Revenue as benefits, and thus may give rise to a
personal tax liability. These include, but are not
limited to:
* Bar bills * Sauna * Health clubs * Hire of video tapes
* Newspapers and magazines * Baby-sitting * Child
minding or pet care * Meals between employees,
regardless of whether business happened to be discussed.
* Meals during meetings in the home location, or in
another Digital facility where there are restaurant
facilities. * Clothing (uniforms if necessary will be
provided through Purchasing) * Passport, unless it is to
be used exclusively for business purposes.
Tax note: If an employee used the passport for private
purposes they would be liable for income tax on the
cost, and be personally responsible to report this to
the Inland Revenue.
8. Meals whilst travelling
If an employee travels more than five miles from the
normal place of employment on company business, but does
not stay overnight, a claim for meals, up to the
following amounts can be made providing no Digital
restaurant facilities are available when the meal is
required.
A. More than five hours spent away from base; actual
expenses, with receipts, not exceeding �5.
B. More than ten hours spent away from base; actual
expenses with receipts not exceeding �15.
Tax note: Any excessive or "round sum" claims may be
viewed by the Inland Revenue as benefits, and give rise
to a personal tax liability.
9. Late or Weekend Working.
No allowances or expenses are claimable by employees in
respect of late or weekend working. It is the
responsibility of managers to arrange for restaurant
facilities, or other refreshments if necessary, and any
claims will be processed separately to ensure correct
tax treatment as a taxable benefit.
10. Combined Business and Holiday Trip
Occasionally employees may wish to combine a business
trip with a holiday, or have a family member accompany
them on a business trip. In such cases, only the
employee's direct expenses relating to the business
purpose of the trip will be reimbursed. Expenses
incurred in respect of a spouse or other family member,
or expenses relating to the holiday will not be
reimbursed.
11. Meetings
Off-site meetings must be approved by the next higher
level of management not attending the meeting before
they take place.
Payment for meals at off-site meetings must be limited
to those covered by the planned agenda; for example,
where sessions occur during the morning and afternoon,
lunch may be permitted, but not dinner. Meals must not
be paid for by employees and claimed. The Low Value
purchase Order procedure must be used. Any exceptional
situations where the LVO procedure cannot be used must
have the approval of the Regional Finance Manager or
equivalent.
Meals after meetings have finished are not permitted,
except as provided under paragraph eight - Meals whilst
Travelling. In all cases, the total expenditures for
such meetings must be reasonable, properly documented
and authorised, and the LVO or claim supported by a copy
of the agenda, minutes or written justification for the
meeting. Without this the meeting may be categorised as
an employee benefit, and give rise to a personal tax
liability.
Tax note: Such meetings must not be a cloak for
entertainment of colleagues, as this will be considered
taxable by the Inland Revenue, and employees will be
personally liable.
12. Cleaning, Pressing and Laundry
These items can only be claimed if the trip away from
home lasts more than 3 consecutive days. For people on
short term assignments and training, these items are
included in the appropriate policy.
13. Tipping
Reasonable judgement should be used. As a guideline, 10%
is normal in the UK. If practical, obtain a receipt.
14. Phones
Generally, only business calls are re-imbursable. The
Company's DTN network should be used wherever possible
to reduce the cost of long distance business calls.
Where a personal phone is used for business calls, only
the cost of the business calls will be reimbursed, not
the rental of the personal phone.
All telephone costs must be paid by the employee and
claimed through Expenses. As for other expenses, all
telephone claims must be supported by a copy of the
telephone VAT receipt. Where available, itemised
telephone bills, or a telephone credit card statement
must be obtained. Subject to an itemised bill being
available, this is preferable to telephone credit card
calls, due to the high relative price of such calls.
Extra phones
Where employees work from home, Digital may fund a
dedicated telephone line, additional to any personal
telephone, to be used strictly for business purposes.
Where employees frequently work from cars, or away from
their office, Digital may, subject to authorisation by
the Regional Manager or equivalent, supply a car or
portable telephone to be used strictly for business
purposes.
Tax note: An employee will have to sign a declaration
that the telephone supplied will only be used for
business use. Please be aware that the consequences of
breaching this requirement will be a personal tax
liability based on the whole cost of the telephone,
including installation and line rental.
15. Entertainment
Only entertainment directly related to customers or
external business contacts can be reclaimed.
If entertainment of an unusual nature is contemplated it
should be cleared, in advance, by the responsible
Manager. In the case of entertainment of a customer or
job-applicant, the employee must indicate, on the
expense voucher, the business purpose of the
entertainment, the names and the title of the people
entertained including any Digital employees, the time
and place of the entertainment, and other information
required by the expense voucher.
Entertainment of colleagues, except when also
entertaining external people will not be repaid. The
number of Digital employees present must be reasonable
for the business to be transacted.
Exceptionally, where individual employees are travelling
from remote locations and will stay overnight on their
own, one host location employee may entertain the
visitor, with prior authorisation by the cost centre
manager; the financial limits are the same as those
applicable for dinner whilst lodging. Where groups of
employees travel from remote locations, such
entertainment cannot be claimed.
16. Business Trips over Three Months
Normally, international business trips with an expected
duration longer than three months will be treated as
short term international assignments. For further
information on this subject please contact the
International Relocation Department.
17. Parties
Digital does not sponsor or financially support personal
or non-business related parties, except as provided by
the compensation and benefits policies, such as approved
Christmas events and service awards. Any requirements
for entertainments of this sort must be authorised in
advance by the Personnel Committee, to ensure that the
tax liability is correctly reported to the Inland
Revenue.
18. Residential Courses
Whilst on a residential course, where all meals are
already included, an employee will have to pay for any
extras incurred, including extra refreshments, but may
claim a residential course allowance of �4 per day to
cover any out of pocket expenses; but no other expenses
apart from travel to the course location will be
reimbursed. All necessary meals will be included in the
conference rate, and thus no reimbursement will be made
for any additional meals.
Receipts for the �4 daily allowance are not required.
Any business phone calls made during the course can be
charged, and would not be part of the �4 daily
allowance.
Tax note: An employee should be aware that any
reimbursement of other payments may give rise to a
personal tax liability.
19. Course Breaks
Course breaks are usually built into the course if
training is to be for more than six continuous weeks.
During the course break period, travel expenses home
incurred by the employee will be paid; should an
employee elect not to travel home, normal subsistence
expenses will be paid during the break.
Employees in training in the USA for a minimum of twelve
consecutive weeks, are allowed one week's home leave.
Travel expenses associated with the leave are
reimbursed. Again, subsistence expenses are paid during
the leave period if an employee chooses not to travel
home. An employees may, with the manager's consent,
exchange the return ticket for a round trip ticket for
an employees spouse.
Employees who travel home on holiday do so at their own
expense, unless it coincides with a course break built
into the course.
Holidays are normally those of the country in which the
training takes place.
To Distribution List:
DAVID LLOYD@UVO,
CHRIS LOANE@UVO,
STEVEN LOAT@UVO,
JASVIR LOTA@UVO,
CLARE LOUNTON@UVO,
SIMON LOWTHER@UVO,
STEPHEN LYNE@UVO,
SANDY MACLEAN@UVO,
TOMMY MAGUIRE@UVO,
GARRY MARSH@UVO,
DUNCAN MCCOMBE@UVO,
IAN MCGAUGHRIN@UVO,
PETER MCGOWAN@UVO,
ALISTAIR MCINTOSH@UVO,
JOHN MCNULTY@UVO,
ALISON MCVITTIE@UVO,
IAN MEGARITY@UVO,
GREG MENDELSOHN@UVO,
DAVID MILNE@UVO,
BIPIN MISTRY@UVO,
IDRIS MORGAN@UVO,
KEVIN MORIARTY@UVO,
JON MORRIS@UVO,
RICHARD MOUNTFORD@UVO,
ANNA MOYNIHAN@UVO,
BRUCE MUIR@UVO,
ANDY MUNSLOW@UVO,
PAULA NEWMAN@UVO,
DAVID NIBLOCK@UVO,
JOHN NORTHAM@UVO,
RORY O'DONNELL@UVO,
TERRY O'KEEFE@UVO,
PAT OLIVER@UVO,
DEBORAH ORAM@UVO,
HELEN OSBORN@UVO,
DAVID OSBORNE@UVO,
ALISON OSMOND@UVO,
NEIL OSMOND@UVO,
JOANNE PAICE@UVO,
DANNY PARKER@UVO,
TREVOR PARRY@UVO,
TONY PARSONS@UVO,
ANUP PATEL@UVO,
STEPHEN PEAKE@UVO,
WILLIAM PENDERGRAST@UVO,
ROD PEPLOE@UVO,
NORMAN PETTET@UVO,
KAREN PEWTER@UVO,
JULIE LAURA PHILLIPS@UVO,
IAN PRICE@UVO
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