JUL_AUG

2 0 04
A MAGAZINE PROVIDING CURRENT CONTENT AND PERTINENT CONTEXT FOR THE PEOPLE OF AMERICAN EXPRESS

Profiles in Leadership
American Express has developed new
competencies to define leadership
across levels. What do they look like in
action? American Express employees
help demonstrate.
 Additional Online
Content for This
Issue of Context
www.express.aexp.com/Context/

LEADERSHIP COMPETENCY MODEL

ONLINE JULY_AUGUST 2004
Learn more about the leadership
competencies for bands 30 and
above.
 ON THE COVER
THIS ISSUE Cover Art_Bernhardt Fudyma Design
Group (photography by George Fetting and
Bill Hayward)

Editor_Ann Dykman
Managing Editor_Cynthia Aquila
IN PRINT

Design_Bernhardt Fudyma Design Group

Printer_Bannon Group Ltd.

2 6 16

AXP Shorts 50 Years of Giving

TIME CAPSULE
American Express’ first feline cardmember
PORTFOLIO VIEW: PRIVATE BANKING SERVICE GIVES CLIENTS
A COMPLETE PICTURE OF THEIR FINANCIAL INFORMATION
A Private Bank team develops an innovative service for clients
THE NUMBERS
Record billed business for the second quarter
GLOBAL COMMERCIAL CARD LINES UP STRATEGIC ALLIES
Bank partners are helping expand American Express’
proprietary Corporate Card business in international markets
American Express Foundation marks
a half-century of good citizenship in
communities where employees live
and work.
Profiles in Leadership
COVER STORY
by Cynthia Aquila, Roberta Di Giorgio and Ann Dykman
Selected American Express employees help demonstrate
the new leadership competencies in action.

PURCHASING CARD SETS SIGHTS ON HOLLYWOOD

Sony Pictures Entertainment reels in production costs with
Purchasing Card solution

DID YOU KNOW?

IDS Life Insurance Company, the No. 1 U.S. provider of
variable universal life

50 YEARS ON THE JOB

Sigrid Smimmo, longest-tenured current American Express
employee
 PAGE _2

{TIME CAPSULE}
Cardmember Fee-line?
AFTER MAYMUN KEENS OF LONDON RECEIVED THREE INVITATIONS IN 1978 TO

APPLY FOR THE AMERICAN EXPRESS® CARD, MRS. VIVIEN KEENS DECIDED TO FILL OUT

AN APPLICATION. NOT SO UNUSUAL, EXCEPT THAT MAYMUN WAS MRS. KEENS’S

CAT, AND THE APPLICATIONS WERE SENT TO HIM BECAUSE OF A COMPUTER ERROR.

THE BRIGHTON OFFICE BECAME SUSPICIOUS WHEN THEY SAW THAT MAYMUN’S EARNINGS WERE

LISTED AS “365–366 CANS OF KIT-E-KAT” PER YEAR AND THAT HE WISHED TO BE BILLED IN “POUNDS
SHORTS

STERLING MICE.” GOING ALONG WITH THE JOKE, THE VICE PRESIDENT OF CUSTOMER SERVICING SENT

MAYMUN A DUMMY CARD WITH A CONGRATULATORY NOTE: “YOUR APPLICATION FORM INDICATES THAT

YOU OBVIOUSLY QUALIFY FOR ENROLLMENT IN OUR SPECIAL FELINE CHAPTER.” MRS. KEENS WROTE

BACK, “YOUR HANDLING OF THIS LITTLE ‘FAUX PAW’ WAS DELIGHTFUL. . . . THEY SAY A CAT CAN LOOK

AT A KING. . . . I WOULD LIKE TO ADD THAT ONLY A GREAT COMPANY CAN WRITE TO A CAT.”

{BEHIND THE SCENES}

PORTFOLIO VIEW: PRIVATE BANKING SERVICE GIVES CLIENTS
A COMPLETE PICTURE OF THEIR FINANCIAL INFORMATION
ITEMS OF INTEREST TO THE PEOPLE OF AMERICAN EXPRESS

When a team of American Express Private
Bank employees set out to develop an online
account information service for clients, their
goal was to create a premium product that
surpassed anything the competition had to
offer — and to do it at a fraction of what the
largest competitors spend. “As a small, bou-
tique bank, we couldn’t afford an expensive
failure,” says Gil Schmidt, executive director,
Private Bank, and project sponsor.
The team was up to the task. Portfolio
View, a simple and secure way for clients and
their relationship managers to view account
information online, is proving to be a success.
Within a year of its launch in February 2003,
18 percent of top-tier clients, all of whom
have at least $1 million of investable assets
with the Private Bank, are using the service,
exceeding the first-year enrollment goal of
10 percent. And feedback from both clients
and relationship managers has been
extremely positive.
Unlike competitors’ systems, which gener-
ally give clients access only to account infor-
mation held in a single location, Portfolio
View enables clients to check multiple
accounts held in different Private Bank
investment centers around the world. Each
country — Luxembourg, Monaco, Singapore,
Switzerland, the United Kingdom and the
United States — has its own set of data pro-
tection rules that had to be met.
“These countries have very stringent data
protection laws,” says Helene Zakow, Private
Bank marketing director. But the additional
security measures the team built in to the
 PAGE _3
102.4
BILLION
The first time in American
Express history that billed
business has exceeded
$100 billion in a single
quarter. The previous
record was $98.5 billion in
the fourth quarter of 2003.
>
The Numbers I Billed business for the second quarter 2004
service helped gain the necessary regulatory
approvals: clients do not enter their names or
other personal information to enroll or sign on
— instead they are identified by a proprietary
numerical system; only the data for enrolled
clients are sent to Portfolio View’s servers;
and clients sign agreements that explain in
detail how their data will be handled.
The team’s achievement has not gone
unnoticed. Core team members — Jenna
Nelson, Private Bank manager; Catherine
Burgos, Private Bank Operations manager;
Shuvro Ghose, American Express Bank
Technologies manager; Colin Curtis, senior
director, and Michael Balk, director, American
Express Bank Operations; and Zakow —
received the 2003 Chairman’s Award for the
successful development and implementation
of this innovative tool.
{BEHIND THE SCENES}
Global Commercial Card
Lines Up Strategic Partners
What’s behind a new card partnership between Deutsche Bank and American Express?
It’s not Global Network Services but Global Commercial Card (GCC) that signed this particular
deal, announced in June, with Germany’s largest bank to offer jointly branded American Express®
Corporate Cards. It is the third partnership GCC has created with a bank in the past year.
This strategy gives American Express a cost-
effective way to add corporate accounts in U.S.
and international markets by leveraging the bank
partner’s relationship with clients. But, unlike
many GNS partners, the commercial card partner
does not issue cards or maintain corporate card
accounts. Rather, it secures sales leads for
American Express, particularly in the less pene-
trated middle market, which includes companies
with annual revenues between $10 million and
$1 billion. Businesses of this size have been slower
to adopt corporate cards, preferring instead to provide cash advances or reimburse employees.
Once American Express contacts the bank’s client leads, it’s up to the sales team to demon-
strate the value of its card products — cost savings, better data capture, global reporting capa-
bilities, flexible billing options, fraud prevention and exclusive corporate savings programs.
In addition to generating leads, GCC’s bank partners help American Express to promote
Corporate Card products. In return, they benefit from a percentage of billings and the ability to
offer customers American Express’ superior products and services.
Deutsche Bank, one of the largest and most respected banks in the world, with more than
12,000 corporate clients in Germany, is the newest corporate card distribution deal the company
has struck. Crédit Lyonnais in France was first, in 1998, and Toronto-Dominion Bank in Canada
and Swedbank in Sweden followed (in 2003 and 2004, respectively).
The partnership strategy is generating more charge volume, new referrals, signed contracts
and account conversions. Deutsche Bank, for example, ousted former partner Visa and its
AirPlus Card in favor of American Express’ Corporate Card.
More such deals may be in the offing. GCC has developed a short list of top banks in key
markets to contact in the near term. Considering that midsize companies account for an esti-
mated $215 billion of potential global charge volume, American Express and its competitors are
keen to lay their hands on those untapped dollars.
— Erin R. Robinson-Lis
Purchasing Card Sets Sights on Hollywood
Despite all those sophisticated high-tech effects loaded into summer blockbusters like Spiderman 2, the movie
industry has a rather low-tech approach when it comes to paying for some of its production expenses — checks
and cash. American Express has taken a key step toward changing this tradition with a new Web resource it has
customized for Sony Pictures Entertainment (SPE): Entertainment Production Solutions.
The Web resource, created by Mitch Stevens' product development team and Paul Van Deventer's account
development team, is linked to the American Express® Corporate Purchasing Card, which SPE has used for the
past nine years to buy commodities like office equipment and supplies. However, many costs related to movie
production, such as wardrobe and set construction, had not been expensed to the Card because studios like SPE
needed faster reconciliation of charges. Entertainment Production Solutions enables studio personnel to track
charges online daily, and it also establishes spending and usage limits.
"What we have needed is a standard payment tool that would be accepted and used by production personnel
throughout the industry,” says Charles Falcetti, senior vice president and chief accounting officer of SPE. “We
own and finance a film, but we hire directors and producers, and they hire the people who make the movies. It’s
an intricate system of freelancers, and the process by which they pay for their supplies and materials may vary
from studio to studio. Production personnel might cut a check or they might even tap into petty cash, which
means they’re walking around with a wad of money. That’s not safe or efficient."
For two years, SPE has been testing the new tool for payment of film and television productions, including
Wheel of Fortune and Jeopardy!, and Fox Television shows such as America's Most Wanted and Good Day
Live. With more expenditures captured by cards, SPE gets a clearer picture of production costs and more
ammunition to negotiate with vendors. Even more important, SPE is reducing the security risks asso-
ciated with cash and checks.
"To paraphrase a certain web-slinger who said ‘With great power comes great responsibility,' Sony
Pictures has found that with greater visibility comes greater control," Falcetti says. "In this business, we
spend a huge amount of money in a short amount of time. First and foremost, the production group is
looking for improved control and efficiencies, and we believe this is what the new Web tool gives us.
But the key is for the studios and freelancers to ultimately adopt the system. Together with
American Express, we will push to expand it throughout the entertainment industry."
SPE has endorsed Entertainment Production Solutions to its industry peers, including
Paramount, Disney, UNI, Revolution, Newline and Miramax.
So is Entertainment Production Solutions a real-life superhero to Charles Falcetti?
"Well, it isn’t saving lives yet, but it is making life much easier and manageable," he says.
For questions or to find out more about Entertainment Production Solutions, please e-mail
EPS@aexp.com.
— Phil Leary
 PAGE _5

{DID YOU KNOW?} Zdravstvuite!

LIFE LEADER
IDS Life Insurance Company (an affiliate of American
Express Financial Advisors, which distributes IDS
Life products) is the No. 1 provider of variable uni-
versal life in the United States, according to the
Tillinghast Towers-Perrin Value Survey of Q1 2004
{QUOTABLE}
variable insurance product sales. This survey,
published in May, included 46 variable life compa-
nies — 92 percent of the industry. IDS Life VUL sales “Can you find me a parrot
premiums in the first quarter outpaced competitors
such as Pacific Life, Hartford, ING Life, Nationwide that speaks Russian to keep me
and Equitable, and sales through midyear have
increased 25 percent over 2003. company on the road?”
You should consider the investment objectives, risks,
charges and expenses of the variable life insurance policy — Question posed to Platinum Concierge from Russian
carefully before investing. For a free copy of the prospectus, cardmember living in the U.K. [The concierge delivered.]
which contains this and other information, call 800-437-
4332. Read the prospectus carefully before you invest.

50 Years on the Job

Fifty years ago, 17-year-old
Sigrid Smimmo walked into
the American Express Military
Banking office in Frankfurt,
Germany, to apply for a job in
the payroll office. She’s been
with the company ever since.
Sigrid today; the Frankfurt office Sigrid now has the distinction
in the early 1950s (right).
of being the longest-tenured
current American Express employee, and in
the company’s history, only a handful of others
have reached or exceeded this milestone
(including president James C. Fargo, who was
employed from 1850-1914). A credit analyst in
Photography_Bill Hayward
the Risk, Information and Banking group in
New York — not to mention a heavy metal fan
and hospital volunteer — Sigrid took a little
time with Context to reflect on her career.
What are some of your most vivid memories
of those early days at American Express?
In 1960, I came to New York on vacation,
and I walked into the American Express office
on Fifth Avenue. It was so beautiful! The
doors opened automatically, I remember, and
it felt very prestigious. My boss, Herman
Richter, had given me a letter of recommen-
dation, and they gave me a job as a cashier.
I knew English because I had worked in
London as an au pair for a year, but I didn’t
know anyone in the United States. I stayed at
the YWCA. It was a very lonely time, but I was
happy to be here.
What is the most remarkable change you’ve
witnessed in your decades with the company?
Computers. Everything was manual until the
late 1960s. When I worked in Establishment
Services at the operating center [in New
York], we used to cut checks for merchants
every day. They would line up with their paper
receipts in envelopes. After a holiday week-
end, there would be a line out the door. When
I saw that computers were the way of the
future, I took every opportunity to learn what
I could about technology. I took courses
through the Cornell program — thank you,
American Express!
Do you think of retiring?
Don’t get me wrong. There are times when I
have thought about doing something else. But
I love my job and am very proud to be working
for American Express. I always have been.
Fifty years is an amazing milestone.
Congratulations.
Thank you. I guess I’ve outlasted everyone!
Selected American Express employees
help illustrate the company’s new
leadership competency model.
What makes a leader? Is it command of strategy? Achieving outstanding
results? The ability to inspire employees?
It’s all this and more, according to American Express’ new leader-
ship competency model, developed as part of the company’s renewal of
its Blue Box Values.
“Now more than ever, we need strong leaders,” says American
Express Chairman and Chief Executive Officer Ken Chenault. “The
new competencies will set a strong foundation for successful leadership
performance at all levels.”
The Global Leadership Team, with support from Human Resources
and input from employees, has streamlined the competencies and Drives innovation and change
refined them to place a greater emphasis on risk taking, innovation
and personal accountability. (See sidebar, right.) Implementation began
in 2003 with senior leaders and continued with bands 30 to 40 this
Develops winning strategies
year. New competencies for associates will be launched in early 2005.
Ursie Fairbairn, executive vice president, Human Resources and
Quality, calls the new competencies “more clearly defined, more Focuses on the customer and client
focused and more actionable. They apply to all employees regardless of Builds diverse talent
whether they have direct reports.”
Each competency includes sets of behaviors geared to leaders at
different levels (for example, bands 45 and above, bands 30 to 40) [Leadership Competencies]
that describe both high and low performance. (For a detailed explana-
tion of the competencies, visit AmexWeb. Click on “My Life and Career,”
Builds and leverages relationships
then “Training and Career Growth,” then “Performance Management Communicates effectively
Process, then the “Competencies” tab on top.)
What do the leadership competencies look like in action? The Demonstrates personal excellence
people of American Express bring them to life in many different ways.
On the following pages, nine stories provide just a glimpse into how Drives results

some high-performing employees, representing various parts of the

business in offices across the United States and around the world,
have demonstrated aspects of good leadership.
Global Talent has developed a program (available on CD-ROM or videotape)
titled Lead to Win, in which Chairman and CEO Ken Chenault describes
important leadership behaviors and employees around the world share stories
about what leadership means to them. The Blue Box Leadership Curriculum
also is available to help employees develop their leadership skills. To order
the program or register for a course, go to Performance Management Process
(under My Life and Career/Training & Career Growth on AmexWeb) and click
on the Learn More tab.

Photography_Scott Baxter, Matt Cooke, Bruce DeBoer, Ron Fehling, George Fetting, Bill Hayward and Tiffany Manning
 PAGE _7

“I’m a big believer in stretching yourself and seeking feedback.

You can’t change what you don’t know. I can add the most value as a leader
by helping my teammates know what they need to do
to reach their goals and then supporting them on that journey.”
How do you take one of the poorer performing financial advisor
market groups and turn it into a leader? For Walter Booker,
head of AEFA’s New Jersey market group, not without some
growing pains. Paramus, N E W JERSEY

When Walter joined AEFA in 1995 as group vice president for

the region, New Jersey was in the bottom third of the then 45
market groups in terms of overall performance — and had
been for several years. Last year, the group ranked No. 2 and

[Builds Diverse Talent]

is in the top three so far this year. The group’s performance
more than a decade ago was a by-product of the culture, in
Walter’s view. “There was no single vision. People were out to
win only for themselves, not for the betterment of the team.
That had to change.”

American Express Financial Advisors

Group Vice President,
Walter admits the first few years were a struggle: He didn’t
act quickly enough on some staff issues, and he wasn’t par-
ticularly effective at getting people’s buy-in. “I basically told
them that they had the opportunity to be a part of what I wanted
to do, but I was going to make it happen even if I had to build
around them. That pretty much ticked everyone off, and not
surprisingly, our profile didn’t change much.”
On the advice of his leaders, Walter began to invest in his own
development and change his approach to leading the group.
Field Vice President Craig Laday, who has been with the group
since Walter took charge, can attest to that change. “Walter
has tremendous analytical skills and knows how to grow a business. He truly likes and cares about people, but he
had to learn how to deliver the tough messages. Today, he’s a great coach who challenges us to use our judgment
to make better decisions and to focus on successful execution. He holds us accountable and acknowledges our
achievements. I credit a large part of my success to his leadership.”
Walter has instilled the importance of regular feedback. The entire group participates in the leadership feedback
process every year. He also uses the annual employee and advisor survey as his personal client satisfaction barom-
eter. After the survey period, employees and advisors are nominated by their peers to serve on response teams,
which review results and identify the top three management priorities for the year. Field vice presidents are not
involved in this feedback process but are accountable for responding to results. “Our job is to act on the concerns of
our advisors — just like advisors are responsive to their own clients,” Walter says.
An emphasis on professional development has also contributed to the group’s success. “As long as advisors are willing
to make the changes necessary to increase productivity, we will invest in their development,” he promises.
But those results need to be qualitative as well as quantitative. “If I don’t feel comfortable recommending you to my
friends and family, you’re not going to be recognized in this market group,” Walter says. “Our top sales performers
have improved both quantitatively and qualitatively over time because they realize that’s what it takes to be
successful here.” _Cynthia Aquila
 PAGE _8

“Motivating people is so important when you are a leader.

You need to show people there is a purpose,
a greater good, in coming to work every day.”
Greensboro, N O R T H C A R O L I N A

Scott Carter believes leadership can be reduced to Vice President, Risk Operations
two key steps — establishing a clear vision of what
you want to accomplish and then understanding what
the people on your team need to get there. “Success [Communicates Effectively]
will follow,” insists Scott, and he speaks from experi-
ence. He was promoted this past July to vice president
after about a year as a service delivery leader.
Scott formed his philosophy early, as a 12-year-old
picking tomatoes on the Virginia farm his family then
owned, fending off the gnats and mosquitoes under
the broiling sun.
“Whenever things got hard in school, I’d remind
myself that it wasn’t harder than picking tomatoes,”
Scott says. “I always held on to an image of where I
wanted to be.”
A decade later, Scott’s focus had led him to a bache-
lor’s degree from George Mason University and a job
in restaurant management. Later, he managed a
collections team for Capital One. One of the most
important things Scott learned along the way is not
to rule by decree: “You have to think about how you
will accomplish goals together with your team.”
In 2003, Scott put that theory to the test when he
joined American Express to lead a start-up called
Collections Optimization Receivable Experts. CORE is charged with resolving a percentage of cardmember accounts that are
more than 120 days past due. His vision was ambitious: to be the premier call center group of all of the service centers. Instead
of a prescriptive list of tasks, he offered guiding principles for team leaders — performance is king; personal accountability is
essential; the workplace should be fun; and employees should have frequent opportunities to learn new skills. Then he gave
his team latitude to achieve results.
“Scott wants everyone’s input,” says Yolanda Tate, who was a team leader reporting to Scott until this past spring, when she
was promoted. “Even when he knows the answers, he’ll ask you questions so you have the opportunity to reason it out, do your
own research and come to your own conclusions. And he’s always clear with everyone — you know where you stand.”
It’s hard to be in the dark when your monthly metrics, like calls made and amounts collected, are posted in plain sight. Scott
used this approach with his CORE team to foster personal accountability and motivate the team. He also is a fan of team-building
contests, like one that culminated in a role reversal — he and a team leader switched jobs for a week, which enabled Scott to
better identify with the day-to-day work of his staff and to create a development opportunity for a direct report.
“Scott fosters an ownership mind-set that enables his team to excel,” says Scott’s former supervisor, Business Leader John
Chung. “And that’s reflected in CORE’s 2003 employee survey results, which were well above point of arrival in every dimension,
including leadership.” _Ann Dykman
PAGE _9

Negotiating acquisitions was not part of Beatriz Sajon’s responsibilities as manager for travel franchises in Latin
America and the Caribbean. But last year, when she learned a high-profile travel company was interested in
becoming an American Express franchisee, Beatriz saw an opportunity to help the business — and challenge herself.
At that time, the travel acquisitions manager position for the region was open.
Beatriz went to her leader and volunteered to handle the negotiation with Viajes

Senior Relationship Manager, Travel Franchise Network Operations and Training, Latin America and Caribbean
Falabella, a large travel company well positioned in Chile, Peru and Argentina.
“Beatriz is very customer focused, has good decision-making skills and follows
through on her commitments. I knew she’d do a good job,” says Olga Fernandez,
director, LAC Travel Franchise Program.
Beatriz led an acquisitions team that included the local Travel Franchise Network
managers for those countries and the regional general counsel. She met with Viajes
Falabella’s general manager several times in Chile to discuss the company’s needs
and expectations, and what American Express could offer.
The deal was closed in four months — record time for projects like this, which can take
up to a year to complete. Olga attributes this to Beatriz’s persistence and her knowl-
edge of the industry and American Express, which helped her establish credibility with
the company’s principals. Beatriz’s success led to a promotion to her current position
managing American Express’ relationships with the region’s travel offices.
“It was extremely gratifying to have an opportunity to take a risk and be successful,”
Beatriz says. “But what is equally important to me is that my manager trusted me
and fully supported my efforts to grow.”
Beatriz apparently extends that same level of trust to her direct reports. When
Training Team Leader Juan Carlos Lemus first began reporting to Beatriz, she relied
on him to interview job candidates and make recommendations. “I felt she trusted
[Demonstrates Personal Excellence]

me and valued my judgment,” he says.

Having Beatriz’s trust gives Cristina Helou, an operations specialist in
Argentina, more confidence to meet her goals. “She allows you the free-
dom to do the job but is always available to help. Once the assignment is
complete, she offers immediate feedback.”
Trusting her direct reports to get the job done didn’t always come easily. “I
was a control freak,” Beatriz says. Constructive feedback from one of her
first direct reports helped her see the effect she was having. “Because I
was constantly checking up on her, she felt that I thought she was going
to fail.” Beatriz observed other leaders and took advantage of training and
development opportunities to improve her skills. “I’ll always be grateful to
that employee for being so honest with me,” she says. _Cynthia Aquila

Miami Lakes, F L O R I D A

“Trust is key. I want my team to feel they can come to me

and know the world won’t fall apart if they make a mistake.
And I’m up front with them when a decision I’ve made may not have been the best.”
PAGE _10

Michael Lim’s job is systems development, including the resolution of card-embossing issues in the Japan/Asia Pacific
region, and he performs it well. But, fortunately for American Express, Michael isn’t content to stay inside the lines.
“You never hear ‘That’s not my job’ from Michael,” says his leader, David Mackay, director, Technologies
Development. “He doesn’t think twice about taking on extra work if he feels it will benefit a business partner.”
According to David, Michael is the type of employee who not only provides the quick fix but also eyes the systemic
problem and comes up with solutions. For example, if a company’s cards are embossed incorrectly, it’s Michael’s
responsibility to ensure that the client gets the right product with minimum interruptions to the business. Meanwhile,
though, he digs deeper to locate the source of the process breakdown and pose long-term solutions.
And if, during the course of his data analysis, he spots a red flag that’s outside
his area of expertise, he’ll forward the information and follow up. When Michael
was looking into a system glitch during one recent product launch, he discovered
that a cardmember had applied for an American Express credit card multiple
times. Intrigued, he delved a bit further and found that the customer had used
variations of his name and differing birth dates — a red alert for fraud. Michael
notified his colleagues responsible for risk management and data capture.
“It’s just about doing what makes sense and not confining yourself to a rigid
checklist,” Michael says, describing his actions as an outgrowth of his basic
curiosity and desire to make a contribution to the company’s success in whatever
way he can.
That spirit also carries over to his work as a member of a Sydney Technologies
Employee Satisfaction Action Team. During a food drive the team organized,
Senior Analyst Programmer, Technologies

Michael spent some time talking with the founder of a charity to aid the home-
less and was inspired to do more. He thought about all the American Express
[Drives Innovation and Change]

employees who travel for business and who receive complimentary “wet packs”
from the airlines that contain items like shampoo and toothbrushes. Could the
charity use these? The answer was an emphatic yes. Michael took charge of an
effort to collect the kits and so far has distributed more than 150 to homeless
men and women in Australia.
“I’ve worked other places, and I think American Express treats employees
very well,” says Michael, who has been with the company for about five
years. “I thought it was baffling that we were focused on ‘improving’
our own satisfaction. Getting out and helping people who really had
something to complain about gives us perspective.” _ Ann Dykman

Sydney, A U S T R A L I A

“Every leader should be able to admit mistakes and to recognize

when a decision wasn’t necessarily the best one.
That lets you get on the right course more quickly.”
 When the task seems overwhelming and the challenges insur-
mountable, the Global Implementation project team has a pretty
good idea of what director Gennye Feldman will say: “How about
if we phase it in?”
“She’s ingrained that in me,” Implementation Manager Theresa
Goetz says with a laugh. “Now if I have problem with a big issue, I’ll
think about how I can break it down. She has helped me prioritize.”
Gennye calls that the 80/20 approach: “If there’s too much on
someone’s plate, what piece can give a little bit and still enable us
to stay on target?”
Steady, focused, flexible, enthusiastic — these are all adjectives
that keep coming up when Gennye’s colleagues talk about her
leadership. And they are qualities that have equipped her well to
guide a team on a challenging mission: building the infrastructure
that enables American Express to sell its Gift Card in retail out-
lets, which is an entirely new distribution channel.
Historically, American Express’ prepaid products have been sold
[Develops Winning Strategies] either through its proprietary channels or agents such as bank
partners. Widening their availability would make it more convenient
Director, Global Implementation,
Travelers Cheque and Prepaid for consumers to buy them. But that scenario presented two
Services Group instant obstacles. First, loaded cards hanging on store displays
would be very attractive to thieves, so the Travelers Cheque and
Prepaid Services (TCPS) Group had to build in extra layers of
New York, N E W Y O R K
security. Second, the bar-coded sales systems of retail stores
complicated the production and distribution of plastic.
“We had to create a blueprint for this new way of doing business,”
“Rely on the expertise of the people on your team
says Gennye, who joined the TCPS team from Global Establishment
instead of feeling like you need to get involved in every task. Services. She describes her first weeks on the job as a “deep
That frees you up to see the big picture and dive” into the business to familiarize herself with the key players
provide leadership for the team.” in finance, risk management, technologies, acquisitions and mar-
keting, whose cooperation she would need.
Gennye also researched competitors’ prepaid cards and learned that many retailers use third-party software vendors to
process prepaid card transactions. If American Express partnered with those vendors, at least initially, Gift Cards would
wind up in store displays a whole lot faster, and that has indeed been the case. Two major mall owners and three retail
chains are slated to begin selling cards by fall 2004 — just a little over a year after Gennye’s team was first assembled.
“If we told merchants ‘To sell our one item, you have to build a whole new railroad,’ they wouldn’t be interested,” says
her leader, Vice President Scott Scovel. “But when we said we could offer them a turnkey solution — that we could run
our product on their existing railroad — they listened. Gennye has been instrumental in selecting our vendor partners,
providing input for the contracts with them and customizing the systems.”
Aligning people in different functions inside and outside the company to bring about change is the essence of Gennye’s
job. She ultimately succeeds by keeping the ship on course. Scott calls her a lighthouse, a notion that colleague
Carolyn Shapiro, a director on the acquisitions side, seconds: “When there’s a stalemate, she reminds us of what the
customer would want. And when there’s no clearly defined path, she gets things going.”
“She puts ideas in your head, and then you’re off and running,” Theresa adds. “It’s motivating to be around her.” _Ann Dykman
 PAGE _12

“I try to be a good listener and adaptable. I regularly ask for feedback

to help me understand what’s important to each person,
what motivates them, and then to adapt my style to what they need.”
Trina Lynch and her third-shift team of 17 customer service
reps were faced with a significant challenge: handle the addi-
tional call volume and provide after-hours support for such
areas as Credit, New Accounts and Membership Rewards when
the company introduced 24/7 access to OPEN: The Small
Business Network. Phoenix, ARIZONA

[Focuses on the Customer and Client]

During regular business hours, customers who call about their
credit or who want to open new accounts are routed to those
departments. Between the hours of 6 p.m. and 9 a.m., however,
those callers are connected to the third shift: Trina’s team. “The
first task was to figure out exactly what resources and training
we needed to ensure a positive interaction with cardmembers,”
she says. “We weren’t there just to take a message.”

Team Leader, American Express Service Center

Trina was instrumental in creating and implementing the “after-
hours” New Accounts and Membership Rewards curriculum,
which all third-shift new hires now undergo. She enlisted the
help of each department to better understand the skills needed, the types of
situations that normally arise and the options available. “Reps primarily
trained for customer service require a different mind-set when handling
credit calls,” she says. “They need to understand where to draw the line
when handling questions about declined charges, credit limits and requests
for additional spending.”
The new responsibilities also created another issue for Trina to resolve —
how to measure results. Average handling time is a key metric for Customer
Service, but Credit measures funds collected. Trina consulted with business
and service delivery leaders, and asked her team to keep records on different
types of calls for a trial period. She then partnered with the Chronicle Team,
which helps create and report metrics across the service delivery network,
to develop an average handling time that covers both customer service and
credit calls.
Trina also managed the third-shift inbound phone operations, which is not
normally a team leader’s responsibility. She consulted with Centralized Call
Management regarding rep skills and shift scheduling to maintain service
levels and ensure efficient support for the OPEN network.
Throughout the transition, Trina coached the team, listened in on their calls,
gave feedback and recognized their achievements, recalls Glenda Benson,
who has reported to Trina for three and a half years. “She kept us informed, got our input and addressed our concerns.
There were no surprises. We knew what was expected of us, and she supported us every step of the way.”
Trina’s effective coaching and the team’s outstanding employee satisfaction results placed the team among the
Phoenix service center’s top 5 percent for overall performance. “I believe that’s because the team can answer
almost any question cardmembers have about their accounts without going to other departments for the answers,”
she says. “They can explain the information and advise the cardmember about next steps.” _Cynthia Aquila
 PAGE _13

When he was a part owner of a travel incentive business in the 1990s, Niall Mackin would come up with an idea on a Monday
and implement it no later than Tuesday. Then American Express acquired the business and Niall joined the corporate world,
where he had to learn all about influencing by committee.
“Here, you have to present an idea to your boss and then get it on someone else’s agenda, which is a totally different
experience,” he says.
Niall spent his first seven years in American Express’ London office as a manager heading Corporate Groups and Events.
During that time, he impressed Pearse Reynolds, general manager, U.K. Corporate Travel, with his entrepreneurial skills and
commitment to high-quality service delivery. So when Pearse needed a leader to direct the Europe launch of American Express
One®, a travel unit that would cater to smaller businesses, Niall was the right choice.
“Attacking the middle market is a high priority for American Express in the U.K.,” Pearse says. “We need people who will act
quickly and get results every day. I saw how Niall worked his client list to build his business, and I knew he could lead by example.”
In just over a year, Niall has been instrumental in transforming a white paper into a living, breathing business that is meeting
and even exceeding expectations.
Any such effort requires something of a jack-of-all-trades mentality. You must oversee tasks from the mundane (designing
office space) to the monumental (creating a brand, building a staff, developing sales strategies). At the same time, you’re still
working with the infrastructure of a big business that
“If you admire certain leaders, get to know them has been designed to serve multinational companies,
not the needs of smaller shops.
and find a reason to ask for their input or work with them.
Take advantage of tools like the mentor program, “Our work has required us to go to various parts of the
organization and ask for things to be done a bit differ-
360-degree feedback and the talent assessment.” ently,” Niall says, “which often means we need our
colleagues to do another job they weren’t doing before.
London, E N G L A N D
For example, our system wasn’t set up to serve clients
unless they had a corporate account with us, but smaller
Director, Global Corporate Travel
businesses often want to book a few trips before they
commit to anything like a long-term account. That
[Builds and Leverages Relationships] meant we had to ask our colleagues in Technologies to
create a solution. But I have found that as long as we
take the time to explain what we need and why we need
it, people are usually happy to comply.”
Iain Lawrence, sales manager for American Express
One, says Niall’s infectious enthusiasm and clear
communication style win people over. “First and fore-
most, his focus is on the performance and profitability
of his business, which is everyone’s objective.”
Pearse notes that Niall generally brings added value to
every meeting: “How can you not help a guy who starts
the conversation with a jam doughnut?” _Ann Dykman
 Transform procurement. Sounds like a straightforward goal.
But turning these words into action represented a project of
enormous complexity and scope for Darin Herring, who in
early 2001 was a director charged with leading the implemen-
tation of a new, Web-based procurement system. Creating a
winning strategy essentially meant overhauling years-old sys-
tems and procedures for processing purchases and replacing
them with an online tool known as Ariba BuyerTM.
Darin, now a vice president, played a key role in getting the
Ariba project off the ground and keeping it on track.
He and his team partnered with Global Procurement to
implement a system that promised to help control spending.
The tool would channel purchases to approved suppliers
that have pre-negotiated prices and, through its tracking
capabilities, give users data to influence future supplier
negotiations. But it wouldn’t be worth much unless
employees throughout the organization actually used the
system, and this didn’t happen overnight.
“At the end of 2001, users were having difficulty adapting to
the new system, particularly the approval process,” Darin
explains. “It was easier to just go back to the old way of
doing things, which was picking up the phone and placing
orders directly with our vendors. One of the lessons learned
[Develops Winning Strategies] was that we needed to increase our focus on training and
improve the customer experience. We looked at feedback
Vice President, Global from users and refined the tools and processes accordingly.”
Reengineering and Six Sigma
In 2002, the team set a year-end target of channeling $1 billion
in purchases through the system in the United States — a
bold step, given that usage was low during the previous
Phoenix, A R I Z O N A
year. But by the end of 2002, American Express employees
ran more than $1.5 billion in purchases through Ariba.
“It’s important to be results oriented, but that doesn’t mean “These were really good results,” says Darin. “We bench-
you should try to run the show single-handedly. marked ourselves against others and found that no one in
Forging relationships is what really makes you successful.” the industry had ever come close to reaching this level of
volume and users on Ariba.”
Getting everyone in the organization to understand why and
how they could benefit from the change was critical. “We tailored our communications to people at all levels — from
the associates who needed to run orders through the new system on a daily basis to leaders who wanted to under-
stand the potential cost savings that would result from adopting the new tool,” Darin says.
Having observed Darin take the Ariba project from start to finish, his leader, Vice President Ian Lundberg, says Darin
has a knack for working with business partners. “He’s one of those people who can make employees from all differ-
ent areas feel like one project team,” Ian explains. “Darin puts the facts on the table in an unassuming, yet confident
and energizing, way. He’s a great communicator and has this natural ability to bring an idea to an organization and
really be a catalyst for change.” _Roberta Di Giorgio
 PAGE _15

Brevity is the soul of Jennifer Hawkins’ leadership philosophy.

“I believe you should never have more than five priorities,” asserts Jennifer, who is the director in charge of American Express
Canada’s Aeroplan cobrand portfolio. “I should be able to tell anyone, on the spot, the top three things my team is focusing on.”
What are her team’s top priorities? Without missing a beat, Jennifer recites her mantra: “Drive high-value cardmember acquisition,
ensure we have excellent customer service delivery and build loyalty.”
Jennifer’s team of four managers, two analysts and one associate — all dedicated to the Aeroplan portfolio — has so far
delivered against those priorities in a highly charged, competitive environment. Just last summer, American Express won the
partnership with Air Canada’s frequent-flier program during the airline’s court-supervised restructuring.
As final contract negotiations proceeded over the next several months, and as the cobrand launch date became a moving target,
the American Express and Aeroplan teams got to work on product development, marketing strategies and operations issues.
Three American Express® AeroplanPlusTM consumer cards launched in January, and the corporate card launched in March.
“The team’s work was tremendous,” says Shawn Klerer, American Express Canada’s chief financial officer and the vice presi-
dent who leads the Aeroplan relationship. “And I can’t say enough about Jennifer’s leadership. Her experience managing our
Air Miles relationship and our lending portfolio certainly helped
her hit the ground running. But, even more important, she has a
“The more senior you get, the less willing people
reputation for clearing obstacles in her way by finding alternatives
and workable compromises. When you have a cobrand, you can’t
are to volunteer feedback about your leadership.
always do everything you want because there’s a partner involved.” That’s why it is so important to ask for it continuously.”
Jennifer says empathy and the ability to listen — which she has
developed over 10 years with American Express — are the skills
most critical to moving projects forward. “At the start of any rela-
tionship, whether internal or external, I ask partners to help me
understand their priorities,” Jennifer says. “What are the five
things they want to accomplish? Are they similar to my five things?
From there on, it’s just a matter of being objective, listening effec-
tively and treating people with respect. ” Markham, C A N A D A

This is the same game plan she uses to manage the Aeroplan
team, her direct reports say. “What blows me away about
[Drives Results]

Jennifer is that she really does practice leadership impeccably,”

says Project Manager Sonia Ramoul-DaSilva. “You know how you
always hear how effective leaders are supposed to give you timely
feedback and constantly praise your strengths to grow your con-
fidence level? My God, does she ever do this. And if she’s hired
Director, Aeroplan Portfolio

you to be the marketing expert, she empowers you to speak to

the marketing issues in meetings. She makes us feel our opinions
matter, so we’re not afraid to speak up.”
That wasn’t always easy for Jennifer, though. “Over time, I’d gotten
feedback that I should step back and let my team have more
space to demonstrate their abilities,” she acknowledges. “I had a
way of talking for people, and I thought I was doing them a favor.
Now I know better.” _Ann Dykman
 PAGE _16

Years of Giving
50 American Express Foundation celebrates its golden anniversary

1954: Dwight D. Eisenhower is president of the United States. Dr. Jonas Salk begins
inoculating children against polio. From Here to Eternity wins the Oscar for Best Picture.
American Express, more than 100 years old, employs 8,000 people in 66 offices around
the world and is four years away from introducing the American Express® Card.
It’s also the year the company formalizes its charitable giving by creating the American
Express Foundation with a gift of $30,000. Up until then, it had been making ad hoc
grants and contributions. The foundation grants a total of $950 to three organizations,
all of which it has continued to support over the past 50 years.
Today, the company’s philanthropic budget exceeds $32 million, which will benefit
thousands of nonprofit charitable organizations in communities where employees and
advisors around the world live and work.

GRANTS MADE IN 1954
✉ Foundation for Infantile Paralysis (now called
the March of Dimes) $200
✉ Boys’ Club of America (now the Boys’ and Girls’
Clubs of America) $500
✉ New York Public Library $250
FO U N DAT I O N B Y T H E N U M B E R S
$30.9 million_Total dollar amount of grants made
in 2003
$451 million_Total amount of grants and contri-
butions made over 50 years
1,252_Organizations that received grants in 2003
42_Countries where grants were made last year
Pictured above, left to right_Italy's Temple of Hercules,
restored through the World Monuments Fund; the New
York Public Library, one of the first American Express
Foundation grantees; children helped through the Boys’
and Girls’ Clubs of America
S I G N I F I CA N T DAT E S I N A M E R I CA N 1994_Global Volunteer Action Fund created in the
E X P R E S S FO U N DAT I O N ’ S H I S TO R Y
U.S. To date, $3.1 million granted to 2,124
1962_ Employee gift-matching program estab-
organizations. In 1996, GVAF is extended
lished — $3,783 of employees’ charitable
donations matched (2003: $4.5 million
internationally — $1.3 million granted to
more than 1,000 organizations.
matched).
1995_The company, partnering with the World
1972_First Employee Giving Campaign — 3,629
Monuments Fund, inaugurates World
employees; $52,573 raised [2003: $3.9 mil-
Monuments Watch, helping to save a total
lion raised, 18,000 employees participated].
of 110 sites in 59 countries.
1986_American Express and industry partners
2000_Founded Economic Independence Fund to
create the Academy of Travel and Tourism in
help educate new workforce entrants from
the U.S. and the first Travel & Tourism
disadvantaged backgrounds about managing
Program internationally. This high school
their personal finances. Nearly 35,000
curriculum educates students about the
people have been served.
industry. Total grants in the U.S. — $25
2001_The foundation contributes $1 million to
million; 37,800 students enrolled to date;
establish the American Express World
internationally — $10.5 million and more
Trade Center Disaster Relief Fund.
than 380,000 students enrolled to date.
Employees, advisors, retirees and others
1992_Articles of incorporation amended to per-
donate $1.5 million to the fund, matched
mit grants outside the United States. Each
by the company. The company separately
year, about 15 percent of the foundation’s
commits $1 million to assist affected
total grant dollars goes to international
employees and their families.
recipients.
 CORRESPONDENTS
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Office 54.11.4310.3511 Office 649.367.4370
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Office 612.9271.2070 Office 632.840.6851
Fax 612.9271.2554 Fax 632.840.6830

CONTEXT
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UNITED STATES
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and people we cover in Context features Office 91.124.680.1590
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and in the following departments: Fax 91.124.639.8304
Office 336.668.5824
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Office 62.21.521.6655
Behind the Scenes_How did we score MINNEAPOLIS, MN_Kellie Due
Fax 62.21.521.6363
that big win? Weiland
ITALY_Luciana B Strippoli Office 612.671.2841
At Work_American Express employees
Office 39.06.722.80.756 Fax 612.671.5112
and the jobs they do
Fax 39.06.722.80.424
NEW YORK, NY_Cynthia Aquila
Corporate Citizens_Putting a face
JAPAN_Sakiko A Kasegawa Office 212.640.5917
on philanthropy
Office 81.3.3220.6229 Fax 212.640.0331
The Numbers_Quantifying our success Fax 81.3.3220.6717
PHOENIX, AZ_Christa K Burkhalter
In Partnership_A listing of our newest Office 623.492.7061
MALAYSIA_Donna K Lee
business partners and occasional profiles Fax 623.492.7411
Office 60.3.2050.0801
Time Capsule_Mining the archives Fax 60.3.2026.2425
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Copyright 2004 American Express Company. All rights reserved.

AMERICAN EXPRESS TOWER _ WORLD FINANCIAL CENTER _ NEW YORK, NY 10285