Having regularly worked with clients to update and improve their travel policy, I have to say that it is always an interesting and valuable exercise. A travel policy review and/or re-write can identify some really quite alarming results.
The first step in the process is to review the content and effectiveness of the current policy. A travel policy should cover the full comprehensive range of topics and provide a solid framework of guidelines for all travel-related subjects which leaves no doubt as to what behaviour is expected. During the review it is equally important to evaluate both what the policy says and what is does not say.
As a specific example of that point, the topic of traveller safety and security is increasingly important nowadays and a fundamental element of any self-respecting travel programme. But the number of travel policies that either completely miss the topic or only give it a passing mention is truly remarkable. How confident are you that your travel policy comprehensively provides up to date, accurate security information and guidance for your travelling population? In my experience there are many policies out there which would benefit from a bit of remedial work on this important subject.
Travel + finance = the perfect match
It has to be said that the travel policy can be a political hot potato and as such it can be tricky to decide who actually 'owns' the policy. The travel manager is undoubtedly the expert on the content of the policy and should unquestionably be the 'manager' but who should own it? Standard practice dictates travel management normally fits into an organisation's structure under a small range of different functions: HR, procurement, finance or facilities management.
In saying that, it is not general practice that the travel policy is actually owned by procurement or facilities management. The more natural fit is under HR or finance depending on the culture and focus of the organisation and the priority of the policy — traveller guidance or cost control.
A travel policy should actually always be a T&E policy covering both travel and expense. The two topics are intrinsically linked and it makes practical sense for their rules and guidance to be published within the same document. Most companies ultimately wish to simplify their processes and procedures which should mean minimising the number of documents and communication sites which set out their policies and rules. Therefore a T&E policy makes perfect sense.
Policies that contain multiple links and references to complementary documents and addendums are unwieldy, difficult to read and comprehend. Such policies are mostly disregarded as a direct consequence. A T&E policy should be clear, direct, sharp and completely transparent in its expectations.
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Travel and finance easily sit together ©Pogonici/iStockBest practice for aligning stakeholders
The highest compliance results are achieved by policies whose owners have the most seniority. A policy that is sharp and clear in its expectation and has the CEO as its owner is proven to result in higher compliance that those which are complex, unclear and have an owner with limited or unknown authority.
Writing a T&E policy involves significant stakeholder engagement and should include the following groups at the minimum.
- Human resources
- Finance (essential for expense rules and approval)
- Workers Councils or equivalent (where applicable)
- Security
- Insurance
- Communications
- Senior executives
To give a word of warning to the wise, it can be extremely tricky, complex and time-consuming to manage and can be compared to herding cats. Gaining consensus across a large group of stakeholders, each with their own agenda and area of focus, can be extremely challenging and produce negative results because of either
- Halting the process because inertia prevails and no agreement can be reached or
- Creating a policy which is ultimately not fit for purpose because it is so bland and incoherent and has no clear rules or guidance
Creating a best-in-class travel policy:
- Conduct a formal review of the current policy identifying strengths, weaknesses and gaps
- Create a clear strategy of what needs to be achieved, what needs to be done and who needs to be involved to achieve it
- Gain senior management support at the highest level possible; the rewards are worth it
- Be clear and concise in the policy wording and incorporate both T&E rules in one policy
- Ensure that the consequences for non-compliance are clearly stated and that these consequences are actionable by senior management in order to be taken seriously
Supplier parameters, such as those about lowest logical fare (see box), need to be clearly defined and incorporated within the policy document so the rules engine of an online booking tool can be configured correctly. Travel managers also need to provide the same clear advice to a TMC for offline service.
An effective policy must include clear and comprehensive rules on behavioural expectations for each of these elements. It sounds simple but in practice there are few who achieve the clarity level needed.
The positive and necessary consequence of clarity within a T&E policy is the ability to produce reports including both accurate information and evidence-based non-compliance. Most travel manager's nirvana would be to have a policy which:
- Monitors and identifies instances of non-compliance
- Identifies repeat offenders
- Provides senior management support to encourage (enforce) necessary changes in behaviour
How good does that sound? It all starts with the quality of the policy wording. The onset of 'personalisation' means that travel suppliers are going to be actively targeting travellers directly and with more frequency, trying to convince them to book outside of their programme and to buy ancillary products at extra cost. A clear and tight travel policy is becoming more and more critically important in the management of travel programmes.