Download as pdf or txt
Download as pdf or txt
You are on page 1of 139







4XDOLWDWLYH$QDO\VLVRI1HXUR/LQJXLVWLF3URJUDPPLQJ&RQFHSWV/HDGHUV0LJKW$SSO\WR
,PSURYH(PSOR\HH(QJDJHPHQW


$'LVVHUWDWLRQ3UHVHQWHGLQ3DUWLDO)XOILOOPHQWRIWKH
5HTXLUHPHQWVIRUWKH'HJUHHRI
'RFWRURI0DQDJHPHQW



E\




6DUDK(/DQH











&RORUDGR7HFKQLFDO8QLYHUVLW\

'HFHPEHU

9HUVLRQ 

 


        

Signature Page

#""$ %!!#  #!"   "!  !" %"


 $ % "

   

Approved by Doctoral Committee:



Dissertation Chair Date



Committee Member Date



Committee Member Date




$EVWUDFW

7KLVTXDOLWDWLYHVWXG\H[SORUHG1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 ²DVHWRIFRPPXQLFDWLRQ

WHFKQLTXHVDQGVWUDWHJLHVGHVLJQHGIRUOHDUQLQJSHUVRQDOFKDQJHDQGUDSSRUWEXLOGLQJ²DVD

SRWHQWLDOVROXWLRQWRDGGUHVVZRUNSODFHGLVHQJDJHPHQWSUREOHPVVWHPPLQJIURPOHDGHUVKLS

EHKDYLRUV7KHVWXG\H[SORUHG1/3FRQFHSWVOHDGHUVPLJKWDSSO\WRLPSURYHHPSOR\HH

HQJDJHPHQWE\LQWHUYLHZLQJFHUWLILHG1/3SUDFWLWLRQHUVORFDWHGLQWKH6RXWKZHVWHUQ8QLWHG

6WDWHV7KHFHQWUDOUHVHDUFKTXHVWLRQH[DPLQLQJWKLV1/3SKHQRPHQRQZDVDVIROORZV%DVHGRQ

WKHH[SHUWNQRZOHGJHRI1/3SUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVWKDWFDQKHOSOHDGHUV

LPSURYHHPSOR\HHHQJDJHPHQWLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV"7KHGDWDUHVXOWVSURGXFHG

IRXUPDLQFDWHJRULHV  KDYLQJDQLPSDFWRQRUJDQL]DWLRQHQJDJHPHQWJRDOV  XVLQJ1/3DVD

OHDGHUVKLSWUDLQLQJWRRO  SURGXFLQJHQJDJHPHQWZLWK1/3DQG  DGGLQJTXHVWLRQVIRU

FROOHFWLYHGDWDSUHVHQWDWLRQ7KHVHIRXUFDWHJRULHVUHSUHVHQWDSSURDFKHVOHDGHUVFDQXVHWREULQJ

SRVLWLYHFKDQJH7KHVWXG\¶VILQGLQJVFRQFOXGHGWKDW1/3FRXOGVHUYHDVDXVHIXORUJDQL]DWLRQDO

WUDLQLQJWRROIRUOHDGHUVWRLPSURYHHPSOR\HHHQJDJHPHQW7KHUHVXOWLQJWKHRU\LGHQWLILHGWKDW

1/3RIIHUVDYDULHW\RIFRQFHSWVOHDGHUVPLJKWDSSO\WRRYHUFRPHRUJDQL]DWLRQDOFKDOOHQJHVZLWK

WDLORUHGVROXWLRQVWRSURGXFHSRVLWLYHLPSDFWVRQHPSOR\HHHQJDJHPHQW

.H\ZRUGV1HXUR/LQJXLVWLF3URJUDPPLQJHPSOR\HHHQJDJHPHQWRUJDQL]DWLRQDOHIIHFWLYHQHVV

OHDGHUVKLSVW\OHOHDGHUVKLSWUDLQLQJTXDOLWDWLYHUHVHDUFK

 

LL



$FNQRZOHGJPHQWV

,ZDQWWRWKDQNP\KXVEDQGEHFDXVH,ZRXOGQRWEHWKHZRPDQ,DPWRGD\RUKDYH

DFKLHYHGWKHDFFRPSOLVKPHQWV,KDYHZLWKRXWKLVORYHVXSSRUWDQGHQFRXUDJHPHQW,DOVRZDQW

WRWKDQNP\VRQZKRVHORYHVHUYHGDVDPRWLYDWRUWRQRWJLYHXSHYHQZKHQLWZDVGLIILFXOW2XU

IDPLO\KDVVDFULILFHGPXFKIRUWKLVGRFWRUDWHDQG,DPIRUHYHUJUDWHIXOIRUWKHP$VSHFLDOWKDQN

\RXLVH[WHQGHGWR&RORUDGR7HFKQLFDO8QLYHUVLW\DQGWKH<HOORZ5LEERQ)XQGIRUWKHLU

SDUWQHUVKLSWKDWSURYLGHGP\ZRXQGHGZDUULRUVFKRODUVKLSDVZHOODVWR'DQ3XOW]ZKRSURYLGHG

WKHOHDGHUVKLSOHWWHURIUHFRPPHQGDWLRQWKDWHQGRUVHGP\DFFHSWDQFHLQWRWKHSURJUDP,DOVR

ZDQWWRSHUVRQDOO\WKDQNWKHIROORZLQJLQGLYLGXDOVP\GLVVHUWDWLRQVXSHUYLVRU'U5REHUW

)LQNHOPHLHUIRUKHOSLQJPHVXFFHVVIXOO\FRPSOHWHWKHGLVVHUWDWLRQ=DFK+DPPRQGIURP7DG

-DPHV&RPSDQ\IRUKLVSDUWLFLSDWLRQLQSURYLGLQJKHOSIXOLQIRUPDWLRQRQ1HXUR/LQJXLVWLF

3URJUDPPLQJ 1/3 DQG'U0LNH$UPRXUIRUVKDULQJKLVYDOXDEOH1/3LQVLJKWVDQG

H[SHULHQFHLQOHDGHUVKLSDQGRUJDQL]DWLRQVHWWLQJV)LQDOO\,ZDQWWRWKDQNP\SDUWLFLSDQWVIRU

PDNLQJWKHGDWDFROOHFWLRQSRVVLEOHDQGDOOWKHRWKHUVZKRVXSSRUWHGDQGHQFRXUDJHGPH

WKURXJKRXWWKLVSURFHVV


 

LLL



7DEOHRI&RQWHQWV

&KDSWHU,QWURGXFWLRQ

3UREOHP6WDWHPHQW

6WXG\3XUSRVH

5HVHDUFK4XHVWLRQ

&RQFHSWXDO)UDPHZRUN

6LJQLILFDQFHRIWKH6WXG\

'HILQLWLRQRI7HUPV

&KDSWHU6XPPDU\

&KDSWHU5HYLHZRIWKH/LWHUDWXUH

/LWHUDWXUH6HDUFK6WUDWHJLHV

*UH\/LWHUDWXUH

([WDQW/LWHUDWXUH

1HXUR/LQJXLVWLF3URJUDPPLQJ

(PSOR\HH(QJDJHPHQW

(PSLULFDO/LWHUDWXUH

1/3(IIHFWLYHQHVV

(PSOR\HH(QJDJHPHQW

/HDGHUVKLSDQG2UJDQL]DWLRQ(IIHFWLYHQHVV

7KHRUHWLFDO/HDGHUVKLS

1/3DQG(QJDJHPHQW

*DSVLQWKH/LWHUDWXUH

&RQFOXVLRQV

LY



&KDSWHU6XPPDU\

&KDSWHU0HWKRG

5HVHDUFK0HWKRGDQG'HVLJQ

3RSXODWLRQDQG6DPSOH

'DWD&ROOHFWLRQ,QVWUXPHQWDWLRQDQG3URFHGXUHV

'DWD$QDO\VLV3URFHGXUHV

$VVXPSWLRQVDQG/LPLWDWLRQV

7UXVWZRUWKLQHVV

(WKLFDO$VVXUDQFHV

&KDSWHU6XPPDU\

&KDSWHU)LQGLQJV

'HVFULSWLRQRIWKH6WXG\6DPSOH

5HVXOWV

'LVFXVVLRQRI6WXG\)LQGLQJV

&KDSWHU6XPPDU\

&KDSWHU'LVFXVVLRQDQG&RQFOXVLRQV

/LPLWDWLRQVRI6WXG\)LQGLQJV

,QWHUSUHWDWLRQRI6WXG\)LQGLQJV

3UDFWLFH,PSOLFDWLRQVRI6WXG\)LQGLQJV

5HFRPPHQGDWLRQVIRU)XUWKHU5HVHDUFK

&RQFOXVLRQ

$SSHQGL[$,QIRUPHG&RQVHQW

$SSHQGL[%,QWHUYLHZ4XHVWLRQV

Y



$SSHQGL[&,QWHUYLHZ3URWRFRO

$SSHQGL['5HFUXLWPHQW(PDLO

$SSHQGL[(&RQILGHQWLDOLW\$JUHHPHQW


 

YL



/LVWRI)LJXUHV

)LJXUH&RQFHSWXDOIUDPHZRUNJUDSKLF

)LJXUH0HUFHGHVPRGHORIFRPPXQLFDWLRQ

)LJXUH(LJKWOHYHOVRIFKDQJH

)LJXUH1/3SUDFWLWLRQHUV

)LJXUH2UJDQL]DWLRQHQJDJHPHQWJRDOV

)LJXUH1/3DVDOHDGHUVKLSWUDLQLQJWRRO

)LJXUH3URGXFLQJHQJDJHPHQWXVLQJ1/3

)LJXUH5HPDLQLQJTXHVWLRQVILQGLQJV

YLL



&KDSWHU,QWURGXFWLRQ

 5HVHDUFKKDVVKRZQWKDWRIOHDGHUVNQRZWKDWHPSOR\HHHQJDJHPHQWLVHVVHQWLDOIRU

RUJDQL]DWLRQDOVXFFHVV *UDQW +RZHYHUPRVWGRQRWXQGHUVWDQGKRZWRLPSOHPHQW

HQJDJHPHQWVWUDWHJLHVZLWKRIRUJDQL]DWLRQVUHSRUWLQJHPSOR\HHHQJDJHPHQWFKDOOHQJHV

6KHQR\ 8FKLO 6DDG6XGLQDQG6KDPVXGGLQ  IRXQGWKDWRUJDQL]DWLRQVIXOILOO

WKHLUYLVLRQDQGDFKLHYHILQDQFLDOVXFFHVVZKHQWKH\FRPELQHVWURQJOHDGHUVKLSZLWKDQHQJDJHG

ZRUNIRUFH7KXVDJDSH[LVWVEHWZHHQWKHOHDGHUV¶DELOLW\WRGHPRQVWUDWHEHKDYLRUVWKDWJHQHUDWH

HQJDJHPHQWDQGWKHOHYHORIHQJDJHPHQWHPSOR\HHVGHVLUH 'DYLV 7KLVUHVHDUFKVRXJKW

WRDGGUHVVWKLVJDSE\IRFXVLQJRQDVHWRIFRPPXQLFDWLRQWHFKQLTXHVDQGVWUDWHJLHVGHVLJQHGIRU

OHDUQLQJSHUVRQDOFKDQJHDQGUDSSRUWEXLOGLQJNQRZQDV1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 

WRKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQW 5RJR]LĔVND 8VLQJTXDOLWDWLYHUHVHDUFK

WKHUHVHDUFKHUH[SORUHGXVLQJ1/3DVDOHDGHUVKLSWUDLQLQJWRROWRDGGUHVVHPSOR\HHHQJDJHPHQW

1/3LVDWRROWKDWFDQEHXVHGWRLQIOXHQFHHPSOR\HHVGHYHORSZRUNLQJUHODWLRQVKLSVDQG

LQFUHDVHFRPSHWLWLYHQHVV 1DKDU 

.QRZLQJKRZWREHDEHWWHUOHDGHUDQGLPSURYHRUJDQL]DWLRQHIIHFWLYHQHVVDQG

HQJDJHPHQWUHTXLUHVDFWLRQ6KRZLQJKRZOHDGHUVFDQXVH1/3FRXOGOHDGWREXVLQHVVHV

FKDQJLQJWKHLUWDOHQWPDQDJHPHQWVWUDWHJLHVLQFOXGLQJLQFRUSRUDWLQJ1/3OHDGHUVKLSWUDLQLQJ

+RZHYHUDV1/3LVVWLOODQHPHUJLQJFRQFHSWPRUHUHVHDUFKQHHGVWRKDSSHQWRIXOO\

FRPSUHKHQGWKHUHODWLRQVKLSEHWZHHQ1/3OHDGHUVKLSDQGHQJDJHPHQW$ODFNRIHPSLULFDOGDWD

H[LVWVFRQQHFWHGWRGDLO\LQHIIHFWLYHOHDGHUVKLSSUDFWLFHV$QHHGH[LVWVWRH[SORUH1/3DVD

OHDGHUVKLSWUDLQLQJWRRO7KLVUHVHDUFKVWXG\VRXJKWWRDGGUHVVWKLVNQRZOHGJHJDSWKDWPD\DOVR

DSSO\WRDQH[HFXWLYHOHDGHUVKLSZRUNHQYLURQPHQWE\SURYLGLQJVFKRODUO\LQIRUPDWLRQ7KLV


 

UHVHDUFKVRXJKWWRDOVREHQHILWWKH'RFWRURI0DQDJHPHQW([HFXWLYH/HDGHUVKLSGHJUHH

SURJUDP

&KDSWHULQWURGXFHVWKHWRSLFDQGEULHIO\HVWDEOLVKHVWKHPDLQLGHDVDQGFRQWH[WDORQJ

ZLWKDWRSLFRYHUYLHZ,WDOVRSUHVHQWVWKHUHVHDUFKSUREOHPWKHSXUSRVHRIWKHTXDOLWDWLYH

GHVLJQDQGWKHFHQWUDOUHVHDUFKTXHVWLRQ,QFOXGHGLVDVXPPDU\RIWKHFRQFHSWXDOIUDPHZRUN

GHILQLWLRQRIWHUPVDQGWKHVWXG\¶VVLJQLILFDQFH)XUWKHUPRUH&KDSWHUHVWDEOLVKHVWKHUHDVRQ

IRUWKHVWXG\DQGWKHRQJRLQJUHVHDUFKRQWKHWRSLF

7KLVWRSLFDGGUHVVHGDFXUUHQWUHOHYDQWLVVXHLQUHVSRQVHWRWKHJURZLQJHPSOR\HH

GLVHQJDJHPHQWOHYHOLQ86RUJDQL]DWLRQV7KHUHVXOWVRI*DOOXS¶V$PHULFDQ:RUNSODFH

6XUYH\RIHPSOR\HHVUHYHDOHGWKDWOHVVWKDQRIHPSOR\HHVH[SHULHQFHHQJDJHPHQW

LQWKH8QLWHG6WDWHVDQG&DQDGDZLWKORZHUQXPEHUVLQRWKHUSDUWVRIWKHZRUOG DVFLWHGLQ%DWHV

:HLJKDUW /DG\VKHZVN\DQG7DSOLQ  HPSKDVL]HGWKDWWKH*DOOXSUHVXOWVVKRZ

GHHSHQLQJGLVHQJDJHPHQWZLWKLQWKHSDVWWHQ\HDUVHYHQWKRXJKHQJDJHPHQWSOD\VDFUXFLDOUROH

LQDQRUJDQL]DWLRQ¶VVXFFHVVDQGFRPSHWLWLYHDGYDQWDJH7KHFRQVLVWHQWDQGJURZLQJ

GLVHQJDJHPHQWSUHVHQWVDQLVVXHWKDWFDQQRWEHLJQRUHGLIDQRUJDQL]DWLRQLVZDQWLQJWRHQVXUH

WKHLUVXFFHVV

/HDGHUVVKRXOGEHLQTXLULQJDERXWKRZWKHLURUJDQL]DWLRQVDUHDGGUHVVLQJWKLVGHHSHQLQJ

GLVHQJDJHPHQW2QHRSWLRQLVWRLQFRUSRUDWH1/3WHFKQLTXHVDQGVWUDWHJLHVLQWROHDGHUVKLS

WUDLQLQJIRUUDSLGDQGORQJWHUPVXFFHVVLQFUHDWLQJDQHQJDJHGZRUNIRUFH$OPHQGDUH]  

QRWHGWKDWWKH1/3SUHPLVHLVWKDWGXSOLFDWLQJRUV\QFKURQL]LQJKRZRWKHUVH[FHOZLOOUHSOLFDWH

VLPLODURXWFRPHVLQRWKHUVZLWKWKHLQWHQWRIHQKDQFLQJSHUIRUPDQFH1/3¶VDSSOLFDWLRQLQ

YDULRXVILHOGVLVJURZLQJEHFDXVHLWDOORZVIRUEXLOGLQJKXPDQFDSLWDOWKURXJKDFWLYHHPSOR\HH



 

GHYHORSPHQWHGXFDWLRQDQGWUDLQLQJ 1DKDU 'HYHORSPHQWHGXFDWLRQDQGWUDLQLQJDUH

HVVHQWLDOLQHQVXULQJDQHQJDJHGZRUNIRUFH

(PSOR\HHHQJDJHPHQWLQWURGXFHGE\.KDQLQIRFXVHVRQZKDWOHDGVWRSHUVRQDO

HQJDJHPHQWDWZRUN DVFLWHGLQ/L 7KHUHLVDORWRISXEOLVKHGUHVHDUFKRQHPSOR\HH

HQJDJHPHQWDQGLWVEHQHILWV+RZHYHUWKHUHODWLRQVKLSEHWZHHQOHDGHUVKLSDQGHQJDJHPHQWLV

VWLOOXQGHUH[SORUDWLRQUHJDUGLQJZKDWLVWKHPRVWHIIHFWLYHPHWKRG$KPDG%LELDQG0DMLG

 FODLPHGWKDWRUJDQL]DWLRQVDUHDZDUHRIWKHVLJQLILFDQFHRIWUDLQLQJLQDUDSLGO\FKDQJLQJ

HQYLURQPHQWDQGDUHRSHQWRLQYHVWLQJLQWUDLQLQJSURJUDPVWKDWLQFUHDVHHPSOR\HHFRPPLWPHQW

:KDWUHVHDUFKHUVDUHQHZO\H[SORULQJLVXVLQJ1/3DVDOHDGHUVKLSWUDLQLQJWRRO$FFRUGLQJWR

'XQN  DQHHGH[LVWVIRUDGGLWLRQDOVFLHQWLILFHYLGHQFHDVPRVWHYLGHQFHVXSSRUWLQJ1/3LV

DQHFGRWDO

1/3UHVHDUFKDGGUHVVHVSUDFWLFDOFRQFHUQVEHFDXVHRUJDQL]DWLRQVZLWKDFRPPLWWHGDQG

SRVLWLYHZRUNIRUFHKDYHDFRPSHWLWLYHDGYDQWDJH &OD\SRRO 7KHUHVSRQVLELOLW\WR

IDFLOLWDWHDGHGLFDWHGDQGSRVLWLYHZRUNIRUFHIDOOVRQOHDGHUVKLS'HQVWHQ  HPSKDVL]HGWKLV

E\VD\LQJWKDWH[HFXWLYHOHDGHUVHVSHFLDOO\QHHGWRSD\FORVHDWWHQWLRQDVH[HFXWLYHOHDGHUV

GLUHFWO\HVWDEOLVKSROLFLHVDQGVWUDWHJLHVDQGLQWHJUDWHEXVLQHVVXQLWV*UHHQ  DJUHHGZLWK

SODFLQJHPSKDVLVRQOHDGHUVEHFDXVHRUJDQL]DWLRQDOOHDGHUVDUHUHVSRQVLEOHIRULPSOHPHQWLQJ

VXVWDLQDEOHHQJDJHPHQWVWUDWHJLHV7KRVHLQOHDGHUVKLSDQGVXSSRUWLQJOHDGHUVKLSSRVLWLRQV

VKRXOGIRFXVRQWKHLURUJDQL]DWLRQ¶VHQJDJHPHQWQHHGV7KLVLVEHFDXVHWKHOHYHORIHPSOR\HH

HQJDJHPHQWGHWHUPLQHVDQRUJDQL]DWLRQ¶VUHWHQWLRQDQGJRDODFKLHYHPHQWZKLFKLVLPSRUWDQWWR

VWDNHKROGHUV 'DYLV ,IOHDGHUVOHDUQWKURXJKWUDLQLQJKRZ1/3PLJKWEHDSSOLHGWKH\ZLOO

KDYHDWRROWRKHOSWKHPWDNHWKHDFWLRQQHHGHGWRDFKLHYHDOHYHORIHPSOR\HHHQJDJHPHQWWKDW

WKHLURUJDQL]DWLRQQHHGVWREHVXFFHVVIXO



 

3UREOHP6WDWHPHQW

7KHSUREOHPVWDWHPHQWLVORZHPSOR\HHHQJDJHPHQWFDQEHKDUPIXOWRDQRUJDQL]DWLRQ

7KLVVWXG\DGGUHVVHGORZHPSOR\HHHQJDJHPHQWWKDWOHIWXQUHVROYHGFDQEHKDUPIXOWRDQ

RUJDQL]DWLRQ/HDGHUVDUHWKHRQHVZKRZRXOGDGGUHVVHQJDJHPHQWLVVXHV([SORULQJ1/3

FRQFHSWVPD\RIIHUDSRWHQWLDOVROXWLRQWRDGGUHVVLQJHPSOR\HHHQJDJHPHQWFKDOOHQJHVZKLOH

DOVRSURYLGLQJSHUVRQDOJURZWKWKDWHQVXUHVPRUHFRPSHWHQWOHDGHUVZKRFDQEHWWHUDGGUHVVWKH

RUJDQL]DWLRQ¶VQHHGV

7RDGGUHVVORZHPSOR\HHHQJDJHPHQWOHDGHUVQHHGWUDLQLQJRSSRUWXQLWLHV,QDVWXG\

HQWLWOHG³7KHUHODWLRQVKLSRIHPSOR\HHHQJDJHPHQWDQGHPSOR\HHMREVDWLVIDFWLRQWR

RUJDQL]DWLRQDOFRPPLWPHQW´-RQHV  LGHQWLILHGWKDWOHDGHUVGRQRWSRVVHVVWKH

FRPSHWHQFLHVUHTXLUHGLQWKHLUUROH$OWKRXJKRIEXVLQHVVOHDGHUVEHOLHYHOHDGHUVKLSLVD

FULWLFDOLVVXHRQO\DUHFRQILGHQWLQWKHLUOHDGHUVKLS %D\DW 3URYLGLQJWUDLQLQJFDQ

KHOSGHYHORSWKHVNLOOVDQGNQRZOHGJHHPSOR\HHVQHHGWRSHUIRUPWKHLUMREDV$KPDGHWDO

 QRWHG.UDJWDQG*XHQWHU  DIILUPHGWKDWWDLORUHGOHDGHUVKLSWUDLQLQJSURGXFHV

SRVLWLYHOHDGHUHIIHFWLYHQHVVEHKDYLRUDQGSHUIRUPDQFHRXWFRPHV7KHFKDOOHQJHVOLHLQ

LPSOHPHQWLQJOHDGHUVKLSWUDLQLQJNQRZLQJZKDWWRWUDLQDQGPHDVXULQJWKHDSSOLFDWLRQ¶VUHVXOWV

/HDGHUVFXUUHQWO\GRQRWSRVVHVVWKHVNLOOVQHHGHGWRDOLJQZLWKWKHRUJDQL]DWLRQDOQHHGV

DQGH[SHFWDWLRQVWRSURGXFHWKHGHVLUHGRUJDQL]DWLRQDOUHVXOWV([LVWLQJNQRZOHGJHGRHVQRWRIIHU

WKHSHUVSHFWLYHVDQGLQVLJKWVOHDGHUVQHHGWRGHYHORSVRIWVNLOOVDQGUHODWLRQVKLSVZLWKRXWRXWVLGH

H[SHUWLVH 'DYLV %H\RQGWKHH[LVWLQJNQRZOHGJHEDVH+HUWOLQJ'HQQLVDQG%DUWOHWW

 DGGHGWKDWGLIIHUHQWLQGXVWULHVIDFHGLIIHUHQWFKDOOHQJHVVRWKHWUDQVIHUHQFHRIWUDLQLQJ

DSSURDFKHVZLOOQRWDOZD\VDGGUHVVUHOHYDQWLVVXHVLQRQHLQGXVWU\DVLWZRXOGDQRWKHU5D\

 SUHVHQWHGDQRWKHUSUREOHPUHJDUGOHVVRIWKHPRQH\RUJDQL]DWLRQVVSHQGRQOHDGHUVKLS



 

WUDLQLQJOLWWOHHYLGHQFHH[LVWVWRSRUWUD\KRZWKHVHOHDUQHGVNLOOVDSSO\LQWKHZRUNSODFH$

FRPSHWLWLYHDGYDQWDJHLVQHFHVVDU\IRUDQRUJDQL]DWLRQWRWKULYHLQWRGD\¶VJOREDOL]HGZRUOGVR

HTXLSSLQJOHDGHUVLVHVVHQWLDOIRUVXFFHVVDVWKH\DUHUHVSRQVLEOHIRUGULYLQJRUJDQL]DWLRQDO

RXWFRPHV

7KHSUREOHPLGHQWLILHGZDVDSUDFWLFDORQHWKDWGLUHFWO\FRQQHFWVWRWKH'RFWRURI

0DQDJHPHQWSURJUDPZLWKDQ([HFXWLYH/HDGHUVKLSFRQFHQWUDWLRQ7KHVWXG\EHQHILWVOHDGHUVE\

WHDFKLQJWKHPKRZWRLPSURYHWKHLUOHDGHUVKLSVNLOOVWKURXJK1/3/HDGHUVQHHGWRGHYHORSVRIW

VNLOOVWKDWEXLOGHPSOR\HHUHODWLRQVKLSVWREHHIIHFWLYH7KHVWXG\KHOSVHPSOR\HHVJHQHUDWHPRUH

HQJDJHPHQWDQGRSHUDWHPRUHHIIHFWLYHO\

6WXG\3XUSRVH

7KHSXUSRVHRIWKHTXDOLWDWLYHUHVHDUFKVWXG\ZDVWRH[SORUH1/3FRQFHSWVWKDWLI

LQFRUSRUDWHGLQWROHDGHUVKLSWUDLQLQJSURJUDPVFDQLPSURYHHPSOR\HHHQJDJHPHQW7KHVWXG\

DLPHGWRGLVFRYHUKRZ1/3FRQFHSWVLPSDFWOHDGHUHIIHFWLYHQHVVWKURXJKLPSURYLQJWKHLUVNLOOV

7KHSXUSRVHGLUHFWO\DOLJQHGZLWKWKHSUREOHPVWDWHPHQWORZHPSOR\HHHQJDJHPHQWFDQEH

KDUPIXOWRDQRUJDQL]DWLRQ7KXVWKLVVWXG\VRXJKWWRDGGUHVVWKHJDSLQOHDGHUVKLSWUDLQLQJWKDW

FRQWULEXWHVWRORZHPSOR\HHHQJDJHPHQWE\RIIHULQJDSRWHQWLDOVROXWLRQIRULPSURYLQJ

RUJDQL]DWLRQDOVXFFHVV7KHUHVHDUFKHUFKRVHDTXDOLWDWLYHUHVHDUFKDSSURDFKXVLQJWUDGLWLRQDO

TXDOLWDWLYHPHWKRGVWRGLVFRYHUDQDEVWUDFWWKHRU\EDVHGRQSDUWLFLSDQWUHVSRQVHV6WXG\

SDUWLFLSDQWVFRPSULVHG1/3SUDFWLWLRQHUVORFDWHGLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV²QRW

VHOHFWHGEDVHGRQJHQGHURUDJH²IDPLOLDUDQGH[SHULHQFHGZLWKRUJDQL]DWLRQDOGHYHORSPHQW

7KHLGHDOSDUWLFLSDQWVDPSOHVL]HIRUWKH1/3VWXG\ZDVZLWKDFRQWLQJHQF\WRLQFUHDVHWKH

VDPSOHLIWKHLQWHUYLHZVFROOHFWHGGLGQRWSURYLGHHQRXJKGDWDIRUDGHTXDWHDQDO\VLV



 

'DWDFROOHFWLRQLQFOXGHGLQWHUYLHZUHFRUGLQJVDQGQRWHVWKHQPRYHGWRWKHLQLWLDOGDWD

DQDO\VLVXVLQJFRGLQJGDWDRUJDQL]DWLRQGDWDUHGXFWLRQV\QWKHVLVWULDQJXODWLRQWKHRU\

GHYHORSPHQWLGHQWLILFDWLRQRIJDSVDQGRSSRUWXQLWLHVDQGHQGHGZLWKDGLVFXVVLRQRIWKH

ILQGLQJV7KHUHVHDUFKHUFRQGXFWHGGDWDDQDO\VLVPDQXDOO\DQGGLGQRWUHO\RQDQDO\VLVVRIWZDUH

5HVHDUFK4XHVWLRQ

7KHVWXG\UHVHDUFKTXHVWLRQZDVDVIROORZV

4%DVHGRQWKHH[SHUWNQRZOHGJHRI1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 

SUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVWKDWFDQKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQWLQ

WKH6RXWKZHVWHUQ8QLWHG6WDWHV"

&RQFHSWXDO)UDPHZRUN

7KHFRQFHSWXDOIUDPHZRUNGHSLFWHGLQ)LJXUHVHUYHGWRH[SORUHWKHUHODWLRQVKLS

EHWZHHQDOHDGHU¶VXVHRI1/3DQGWKHLPSDFWRQHPSOR\HHHQJDJHPHQW7KLVFRQFHSWXDO

IUDPHZRUNZKLFKXVHVDTXDOLWDWLYHWUDGLWLRQDODSSURDFKRIIHUHGDSUDJPDWLFSKLORVRSKLFDO

ZRUOGYLHZ,WVHOHPHQWVSURYLGHGDQRYHUYLHZRI1/3HPSOR\HHHQJDJHPHQWOHDGHUVKLSVNLOOV

DQGQHHGHGOHDGHUVKLSWUDLQLQJIRUHIIHFWLYHQHVV



 

)LJXUH&RQFHSWXDOIUDPHZRUNJUDSKLFRIWKHVWXG\RQWKHUHODWLRQVKLSEHWZHHQ1/3DQG

HPSOR\HHHQJDJHPHQW

7KHSUREOHPWKLVVWXG\DGGUHVVHGZDVORZHPSOR\HHHQJDJHPHQWWKDWOHIWXQUHVROYHG

FDQEHKDUPIXOWRDQRUJDQL]DWLRQ/HDGHUVDUHWKHRQHVZKRZRXOGUHVSRQGWRDGGUHVVWKHQHHG

IRULPSURYLQJORZHPSOR\HHHQJDJHPHQW7KHDVVXPSWLRQZDVWKDWLIOHDGHUVDUHWUDLQHGLQ1/3

FRQFHSWVWKH\ZLOOEHFRPHPRUHHIIHFWLYHOHDGHUVZKRZLOOLQWXUQLPSURYHHPSOR\HH

HQJDJHPHQW7KHLPSURYHGHQJDJHPHQWZLOOWKHQLQFUHDVHRUJDQL]DWLRQDOSHUIRUPDQFH

1/3SUDFWLWLRQHULQWHUYLHZVVHUYHGDVVXSSRUWLQJUHVHDUFKZKLOHWKHOLWHUDWXUHUHYLHZ

SURYLGHGDGGLWLRQDOGDWDFROOHFWLRQRQWKHWRSLF7KHILQGLQJVDGGUHVVHGWKHNQRZOHGJHJDSZLWK

OHDGHUVXVLQJ1/3IRURUJDQL]DWLRQDOSHUIRUPDQFH7KHVWXG\EHQHILWVOHDGHUVE\WHDFKLQJWKHP

KRZWRLPSURYHWKHLUOHDGHUVKLSVNLOOVWKURXJK1/3WUDLQLQJWKDWFDQLQFUHDVHHPSOR\HH

HQJDJHPHQWDQGWKHUHE\LPSURYHRUJDQL]DWLRQDOVXFFHVV



 

7KLVVWXG\¶VFHQWUDOUHVHDUFKTXHVWLRQZDVDVIROORZV%DVHGRQWKHH[SHUWNQRZOHGJHRI

1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 SUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVWKDWFDQKHOS

OHDGHUVLPSURYHHPSOR\HHHQJDJHPHQWLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV"7KLVUHVHDUFK

TXHVWLRQVHUYHGDVWKHIRXQGDWLRQIRUGDWDFROOHFWLRQLQH[DPLQLQJWKH1/3SKHQRPHQRQDVD

OHDGHUVKLSWUDLQLQJWRROWRLPSURYHHPSOR\HHHQJDJHPHQW7KHH[LVWLQJERG\RIOLWHUDWXUH

H[SORUHGWKHFRQQHFWLRQWROHDGHUVKLSVW\OHDQGEHKDYLRUVOHDGHUVKLSWUDLQLQJHPSOR\HH

HQJDJHPHQWDQGRUJDQL]DWLRQDOVXFFHVVZLWKWKHDVVXPSWLRQWKDW1/3LVDZD\IRUOHDGHUVWR

KRQHWKHLULQWHUDFWLYHVNLOOVDQGLQFUHDVHWKHLULQIOXHQFH7KXVLQFUHDVHGVNLOODQGLQIOXHQFHZLOO

EULQJLQFUHDVHGHQJDJHPHQWZKLFKZLOOLQWXUQLQFUHDVHRUJDQL]DWLRQDOVXFFHVVDQGUHVROYHWKH

SUREOHPVRIGLVHQJDJHPHQWDQGLQVXIILFLHQWOHDGHUVKLSFRPSHWHQFLHV

$OWKRXJKH[LVWLQJVWXGLHVVRXJKWLQIRUPDWLRQIURPRWKHUSXEOLVKHGUHVHDUFKRQ1/3

DYDLODEOHLQIRUPDWLRQFDPHIURP1/3SUDFWLWLRQHULQWHUYLHZV7KHUHVHDUFKHUDSSURDFKHGWKH

UHVHDUFKZLWK1/3DVDSRVVLEOHVROXWLRQXVLQJ1/3H[SHUWLQWHUYLHZV,QWHUYLHZVZHUHWKHPRVW

HIIHFWLYHPHDQVRIFDSWXULQJWKHQHHGHGLQIRUPDWLRQ$VVXFKWKHUHVHDUFKHUFRQGXFWHG

LQWHUYLHZVZLWK1/3SUDFWLWLRQHUVWRGRFXPHQWWKHLUILUVWKDQGH[SHULHQFHVFRQFHUQLQJFRQFHSWV

OHDGHUVQHHGWREHHIIHFWLYH7KLVLQFOXGHGFRPSDULQJDQGFRQWUDVWLQJWKHGDWDFROOHFWHGIURP

H[LVWLQJOLWHUDWXUH+RZHYHUWKHUHVHDUFKULVNZDVWKDWWKHUHVXOWVFRXOGEHLQFRQFOXVLYHRU

GLVSURYHWKDW1/3LVXVHIXOLQDEXVLQHVVVHWWLQJ

7KLVUHVHDUFKWRSLFIHOOLQWRWKHLQWHUPHGLDWHILHOGRQWKHVFLHQWLILFFRQWLQXXP

,QWHUPHGLDWHWKHRU\UHVHDUFKEXLOGVRQSUHYLRXVZRUNVWRSURSRVHQHZFRQVWUXFWVDQGWKHRUHWLFDO

UHODWLRQVKLSV (GPRQGVRQ 0F0DQXV 7KHVWXG\RIIHUHGQHZSHUVSHFWLYHVDQGLQVLJKWV

WRDGYDQFHOHDGHUV¶NQRZOHGJHRI1/3DQGKRZLWFDQEHDSSOLHGLQDQRUJDQL]DWLRQDOVHWWLQJWR



 

LPSURYHHQJDJHPHQW7KH1/3SUDFWLWLRQHUSRLQWRIYLHZEXLOGVRQSUHYLRXVZRUNVH[SORULQJWKH

XVHRI1/3LQDQRUJDQL]DWLRQDOVHWWLQJ

6LJQLILFDQFHRIWKH6WXG\

7KLVVWXG\EHQHILWVOHDGHUVDQGWKHRUJDQL]DWLRQ¶VVWDNHKROGHUVZKRDUHORRNLQJWR

LPSURYHOHDGHUVKLSVNLOOVDQGHIIHFWLYHQHVVDVZHOODVLPSURYHWKHRUJDQL]DWLRQ7KLVVWXG\FRXOG

OHDGWREXVLQHVVHVFKDQJLQJWDOHQWPDQDJHPHQWSROLFLHVWRDGRSW1/3WUDLQLQJIRUOHDGHUV

0LQLPDOUHVHDUFKH[LVWVRQ1/3LQDFRUSRUDWHVHWWLQJWRLPSURYHHPSOR\HHHQJDJHPHQWPDNLQJ

WKLVVWXG\XQLTXH$QDQWLFLSDWHGPDQDJHPHQWEHQHILWLVDSRVLWLYHLPSDFWRQHQJDJHPHQWDQG

YDOXHDGGHGWRSURYLGHOHDGHUVGLUHFWLRQRQSRWHQWLDORUJDQL]DWLRQDOVROXWLRQV2UJDQL]DWLRQV

OHDGHUVDQGHPSOR\HHVFRXOGDOOEHQHILWIURPWKHVWXG\¶VUHVXOWVHLWKHUGLUHFWO\RULQGLUHFWO\

'HILQLWLRQRI7HUPV

7KHGHILQLWLRQVRIWHUPVUHSUHVHQWNH\RSHUDWLRQDOZRUGVXQLTXHDQGRUFULWLFDOWRWKH

UHDGHU¶VXQGHUVWDQGLQJ7KHIROORZLQJSUHVHQWVFRPSUHKHQVLYHGHILQLWLRQVRINH\WHUPVXVHGLQ

WKLVVWXG\

(PSOR\HH(QJDJHPHQW(PSOR\HHHQJDJHPHQWLVWKHGULYHUEHKLQGSRVLWLYHHIIHFWVRQ

DQRUJDQL]DWLRQGXHWRWKHSHUFHLYHGKLJKOHYHORIHPSRZHUPHQWWKDWFRPHVIURPDVWDWHRIPLQG

WKDWHPERGLHVSHUVLVWHQWSHUYDVLYHDQGIXOILOOLQJZRUN -LDQJ /XR 

 1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 1/3LVDVHWRIFRPPXQLFDWLRQWHFKQLTXHVDQG

VWUDWHJLHVGHVLJQHGIRUOHDUQLQJSHUVRQDOFKDQJHDQGUDSSRUWEXLOGLQJ 5RJR]LĔVND 

/HDGHUVKLS7UDLQLQJ3URJUDPV/HDGHUVKLSWUDLQLQJSURJUDPVSURYLGHHPSOR\HHVWKH

VNLOOVDQGFRPSHWHQFLHVWRGRWKHLUMREVDQGFRQVLVWRILQWHUQDORURXWVRXUFHGWUDLQLQJSURJUDPV

6LQJK 



 

/HDGHUVKLS'HYHORSPHQW/HDGHUVKLSGHYHORSPHQWLVDG\QDPLFSURFHVVWKDWHTXLSV

ERWKOHDGHUVDQGWKHRUJDQL]DWLRQZLWKWKHNQRZOHGJHDQGWRROVQHHGHGIRUDGDSWLQJWRFKDQJHV

RYHUWLPH 7XUQHU %DNHU 

&KDSWHU6XPPDU\

&KDSWHUSURYLGHGDQRYHUYLHZRIWKHUHVHDUFKWRSLFDGGUHVVLQJWKHIROORZLQJFHQWUDO

UHVHDUFKTXHVWLRQ%DVHGRQWKHH[SHUWNQRZOHGJHRI1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 

SUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVWKDWFDQKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQWLQ

WKH6RXWKZHVWHUQ8QLWHG6WDWHV"7KHDVVXPSWLRQJURXQGLQJWKLVVWXG\ZDVWKDWLIOHDGHUVDGRSW

1/3FRQFHSWVDVWHFKQLTXHVDQGVWUDWHJLHVWKH\ZLOOEHFRPHPRUHHIIHFWLYHOHDGHUVZKRZLOOLQ

WXUQLPSURYHHPSOR\HHHQJDJHPHQW&KDSWHUDOVRVXPPDUL]HGWKHFRQFHSWXDOIUDPHZRUNDQG

LGHQWLILHGWKHUHVHDUFKGHVLJQZKLFKXVHVDWUDGLWLRQDOTXDOLWDWLYHDSSURDFKDORQJZLWKDGDWD

FROOHFWLRQSODQDQGDQDO\VLV

&KDSWHUFRQWDLQVWKHOLWHUDWXUHUHYLHZZKLFKLVLPSRUWDQWIRUFRQQHFWLQJSXEOLFDWLRQV

RQWKHWRSLFDVZHOODVVXEWRSLFVDQGGLIIHULQJSHUVSHFWLYHV&KDSWHULQFOXGHVWKHWRSLFVRI1/3

DQGHPSOR\HHHQJDJHPHQWDQGWKHLULPSDFWRQRUJDQL]DWLRQDOHIIHFWLYHQHVV,QDGGLWLRQ&KDSWHU

GLVFXVVHVWKHUHODWLRQVKLSEHWZHHQ1/3DQGHPSOR\HHHQJDJHPHQWDORQJZLWKRWKHUNH\

HOHPHQWVVXFKDVOHDGHUVKLSVW\OHDQGEHKDYLRUWKHUROHRIOHDGHUVKLSDQGOHDGHUVKLSWUDLQLQJ

(DFKRIWKHOHDGHUVKLSHOHPHQWVGLUHFWO\FRUUHODWHVZLWKHPSOR\HHHQJDJHPHQW&KDSWHU

IROORZVFRYHULQJWKHPHWKRGV&KDSWHUFRYHUVWKHILQGLQJVDQG&KDSWHUZUDSVXSWKH

GLVVHUWDWLRQZLWKWKHGLVFXVVLRQDQGFRQFOXVLRQ

 



 

&KDSWHU5HYLHZRIWKH/LWHUDWXUH

7KHUHYLHZRIWKHOLWHUDWXUHIRFXVHGRQ1/3DQGLWVSRWHQWLDOFRQQHFWLRQWRLPSURYLQJ

HPSOR\HHHQJDJHPHQW7KHSXUSRVHRIWKHOLWHUDWXUHUHYLHZZDVWRH[SORUH1/3DVDOHDGHUVKLS

WUDLQLQJWRROWKDWFDQKHOSOHDGHUVWKURXJKLPSURYLQJWKHLUVNLOOVZKLFKZRXOGWKHQLPSDFW

HPSOR\HHHQJDJHPHQW7KHSUREOHPWKLVVWXG\DGGUHVVHGZDVORZHPSOR\HHHQJDJHPHQWWKDW

OHIWXQUHVROYHGFDQEHKDUPIXOWRDQRUJDQL]DWLRQ7KHVWXG\ VFRQFHSWXDOIUDPHZRUNVKRZVWKH

UHODWLRQVKLSEHWZHHQ1/3DVDOHDGHUVKLSWUDLQLQJWRRODQGLWVLQFUHDVHGHIIHFWLYHQHVVLQ

LPSURYLQJHPSOR\HHHQJDJHPHQWDQGRUJDQL]DWLRQDOSHUIRUPDQFH5HYLHZPHWKRGVLQFOXGH

WKHRUHWLFDOHPSLULFDOH[WDQWDQGJUH\OLWHUDWXUH

7KHOLWHUDWXUHUHYLHZEHJLQVZLWKWKHKLVWRU\DQGH[SODQDWLRQRIDSSO\LQJ1/3,W

FRQWLQXHVZLWKDQH[SODQDWLRQRIHPSOR\HHHQJDJHPHQWDQGWKHLQIOXHQFHRIOHDGHUVKLSVW\OHDQG

EHKDYLRUV)ROORZLQJLVWKHLPSDFWRIHPSOR\HHHQJDJHPHQWRQRUJDQL]DWLRQHIIHFWLYHQHVVDQG

WKHUHVSRQVLELOLWLHVRIOHDGHUVKLS7KHFRQFOXVLRQGUDZQLVWKHQHHGIRUOHDGHUVKLSWUDLQLQJDQG

KRZOHDGHUVKLSWUDLQLQJFDQLPSURYHDOHDGHUVVNLOOVEULQJLQJSRVLWLYHLPSDFWWRHPSOR\HH

HQJDJHPHQW1/3DQGHPSOR\HHHQJDJHPHQWVHUYHDVWKHPDLQWRSLFVDQGWKHVXEWRSLFVDUH

OHDGHUVKLSWUDLQLQJOHDGHUVKLSVW\OHOHDGHUVKLSDQGRUJDQL]DWLRQHIIHFWLYHQHVV6RXUFHVLQFOXGHG

LQWHUYLHZVVFKRODUO\DUWLFOHVERRNVDQGGLVVHUWDWLRQVVRXUFHVIURPWKHFRXUVHFXUULFXOXPRU

GRFWRUDOOLEUDU\$QDQDO\VLVRIWKHOLWHUDWXUHZDVSDUWRIWKHFRQFHSWXDOGLVFXVVLRQDQGGUDZLQJ

RQLQIHUHQFHV7KHOLWHUDWXUHVHDUFKVWUDWHJLHVVHFWLRQRXWOLQHVWKHPHWKRGVIRUFROOHFWLQJWKH

H[LVWLQJLQIRUPDWLRQWRFRPSLOHWKHOLWHUDWXUHUHYLHZ

/LWHUDWXUH6HDUFK6WUDWHJLHV

&KDSWHUXVHGVHYHUDOOLWHUDWXUHVHDUFKVWUDWHJLHV7KHGDWDEDVHVXVHGIRUVRXUFLQJZHUH

%XVLQHVV6RXUFH&RPSOHWH (EVFR $%,,1)250&ROOHFWLRQ 3UR4XHVW DQG3UR4XHVW



 

'LVVHUWDWLRQVDQG7KHVHV*OREDO7KHOLWHUDWXUHUHYLHZFRQVLVWHGRQO\RIVFKRODUO\DUWLFOHVDQG

GLVVHUWDWLRQVIRUWH[WPDWHULDOVFROOHFWHG7KHNH\ZRUGVDQGNH\SKUDVHVXVHGZHUH/HDGHUVKLS

1HXUR/LQJXLVWLF3URJUDPPLQJ1/31HXUR/LQJXLVWLF3URJUDPPLQJKLVWRU\HQJDJHPHQW

HPSOR\HHHQJDJHPHQWGLVHQJDJHPHQWOHDGHUVKLSGHYHORSPHQWOHDGHUVKLSWUDLQLQJHPRWLRQDO

LQWHOOLJHQFHOHDGHUWUDLQLQJSURJUDPOHDGHUVKLSVW\OHHIIHFWLYHOHDGHUVKLSOHDGHUVKLSDQG

HQJDJHPHQW1/3DQGHQJDJHPHQW1/3PRGHO1/3DQGOHDGHUVKLSOHDGHUVKLSOHYHOHQJDJHG

HPSOR\HHHPSOR\HHHQJDJHPHQWKLVWRU\1/3HIIHFWLYHQHVVDQGRUJDQL]DWLRQHIIHFWLYHQHVV7KH

IROORZLQJOLWHUDWXUHUHYLHZSUHVHQWVWKHH[WHQVLYHUHVHDUFKUHVXOWVRIWKHDIRUHPHQWLRQHGVRXUFHV

*UH\/LWHUDWXUH

*UH\OLWHUDWXUHPHDQVDQ\PDWHULDOVDQGUHVHDUFKRXWVLGHWUDGLWLRQDODFDGHPLFSXEOLVKLQJ

PHWKRGV*UH\OLWHUDWXUHFRQVLVWHGRIDYLUWXDOLQWHUYLHZDQGDQHPDLOLQWHUYLHZRIWZR1/3

SUDFWLWLRQHUVDERXW1/3DQGOHDGHUVKLS$QHPDLOLQWHUYLHZRI=DFK+DPPRQG SHUVRQDO

FRPPXQLFDWLRQ0D\ DFHUWLILHG1/3PDVWHUSUDFWLWLRQHUIURP7DG-DPHV&RPSDQ\

KHOSHGEHWWHUFRPSUHKHQG1/3EH\RQGWKDWFRQWDLQHGLQWKHWH[WVRXUFHVUHYLHZHG+DPPRQG

GHILQHG1/3DV³DVHULHVRIPHWKRGVGHVLJQHGWRPRGHODQGUHSOLFDWHVXFFHVVLQRXUOLYHVDVZHOO

DVKHOSWHDFKDQGJXLGHRWKHUVLQWKHVHPHWKRGVVRWKH\WRRFDQDFKLHYHWKHLUXOWLPDWHSRWHQWLDO´

1/3FDQDSSO\WRSHUVRQDODQGLQWHUSHUVRQDOUHODWLRQVKLSV1/3WRROVLQFOXGHVHQVRU\DFXLW\DQG

WKHDELOLW\WRREVHUYHRWKHUVHVWDEOLVKUDSSRUWPDWFKDQGPLUURUWHFKQLTXHVUHSUHVHQWDWLRQDO

V\VWHPVVXEPRGDOLWLHVDQGLQWHUQDOUHSUHVHQWDWLRQV2WKHUWHFKQLTXHVDQGVNLOOVFDQKHOSFUHDWH

FKDQJHVXFKDVWKHIROORZLQJXWLOL]LQJWKHVZLVKSDWWHUQDQFKRULQJDQGFRQVFLRXVO\XVLQJ

ODQJXDJHDQGSUHVXSSRVLWLRQVWKH0LOWRQPRGHOPHWDSKRUVDQGVWRULHVPRWLYDWLRQVWUDWHJLHV

UHIUDPLQJSDUWVLQWHJUDWLRQDQG60$57*RDOLPSOHPHQWDWLRQ



 

+DPPRQG SHUVRQDOFRPPXQLFDWLRQ0D\ H[SODLQHGWKDW1/3KHOSVOHDGHUV

EHFDXVHLWWHDFKHVWKHPLQGVHWRIVXFFHVVDQGKHOSVRWKHUVUHSOLFDWHWKHLUVXFFHVV1/3FDQ

SURYLGHWKHIUDPHZRUNIRUVHWWLQJDFKLHYDEOHRXWFRPHVZKHQOHDGLQJRWKHUVRQDQLQGLYLGXDO

EDVLVRUZKHQZRUNLQJZLWKDWHDP1/3KDVURRWVLQWKHFRQFHSWRIUHVSHFWIRUDQRWKHUSHUVRQ¶V

ZRUOGYLHZDQGWKLVDZDUHQHVVDOORZVOHDGHUVWRFDOLEUDWHWKHQDWXUDOWHQGHQFLHVEHKDYLRU

VWUHQJWKVDQGDELOLWLHVRIHPSOR\HHV1/3FDQKHOSOHDGHUVDGGUHVVORZHQJDJHPHQWLVVXHVEDVHG

RQWKH1/3WUDLQHGOHDGHU VWDOHQWDQGVNLOOVVWDUWLQJZLWKWKHJURXS VPLQGVHWRUWKHLQGLYLGXDOWR

XQFRYHUDQLVVXH VURRWFDXVH7KHURRWFDXVHRIORZHPSOR\HHHQJDJHPHQWPD\VWHPIURPWKH

H[HFXWLYHRUPDQDJHPHQWOHYHOWHDPZLWKDODFNRISURSHUOHDGHUVKLSVW\OHRUFRPPXQLFDWLRQ

PHWKRG/RZHQJDJHPHQWXVXDOO\FRQQHFWVWRDODFNRIUDSSRUW2QHRI1/3¶VSUHVXSSRVLWLRQVLV

WKDWUHVLVWDQFHLVDVLJQRIODFNRIUDSSRUWVRDGLVHQJDJHGHPSOR\HHLVVXHLVVLPLODUWR

UHVLVWDQFH

2QHRIWKHFULWLFDO1/3OHDUQLQJVLVWKHFRQFHSWRIVWDWHPDQDJHPHQW+DPPRQG

SHUVRQDOFRPPXQLFDWLRQ0D\ GHILQHGVWDWHPDQDJHPHQWDVWKHDELOLW\WRFRQWUROWKH

SHUVRQDOVWDWHDQGWKHUHIRUHLQIOXHQFHRWKHUVPHDQLQJLIPDQDJHPHQWGRHVQRWSURSHUO\HQJDJH

WKHUHVSRQVHZLOOEHDQLQDSSURSULDWHO\HQJDJHGZRUNIRUFH7DNLQJUHVSRQVLELOLW\IRUWKHPVHOYHV

DOORZVIRUSURSHUO\LQIOXHQFLQJRWKHUV

9DOXHVDOLJQPHQWLVDQRWKHU1/3PHWKRGWKDWZRUNVE\DOLJQLQJDOOHPSOR\HH¶VYDOXHV

IURPWKH&(2GRZQZDUGVRWKDWHYHU\RQHLQWKHRUJDQL]DWLRQVKDUHVDVWDQGDUGVHWRIYDOXHVDQG

LVZRUNLQJFRKHVLYHO\WRZDUGWKHVDPHJRDO9DOXHVDOLJQPHQWPD\EHDOOWKDWOHDGHUVQHHGWR

IRVWHUDJUHDWHUVHQVHRIJRRGZLOOGHGLFDWLRQDQGIRFXVRQPRYLQJIRUZDUGXQLILHGWKXV

HOLPLQDWLQJRUJDQL]DWLRQDOSUREOHPVDQGLQHIILFLHQFLHV9DOXHVDOLJQPHQWDOORZVHPSOR\HHVWR

IHHOSDUWRIVRPHWKLQJELJJHUZKLOHVLPXOWDQHRXVO\IHHOLQJDOLJQHGZLWKDOORWKHUHPSOR\HHVDW



 

WKHSHUVRQDODQGXQFRQVFLRXVOHYHO7KHYDOXHVDOLJQPHQWSURFHVVLVSRWHQWDWFUHDWLQJV\QHUJ\

DQGHQJDJHPHQWLQDQRUJDQL]DWLRQEHFDXVHLWKHOSVSHRSOHDOLJQZLWKZKDWLVLPSRUWDQWWR

WKHP²WKHLUMREFDUHHUDQGSURMHFWV²VRWKH\DUHRSHUDWLQJZLWKSXUSRVHDQGIHHOLQJLPSRUWDQW

+DPPRQG SHUVRQDOFRPPXQLFDWLRQ0D\ FODLPHGWKDWUDSSRUWVWDWHPDQDJHPHQWDQG

YDOXHVDOLJQPHQWDUHWKUHH1/3PHWKRGVOHDGHUVFDQXVHWRLPSURYHWKHLURUJDQL]DWLRQ¶V

HQJDJHPHQW,QWHQWLRQLVDQLPSRUWDQWFRUQHUVWRQHRI1/3,IOHDGHUVLQWHQGWRXVH1/3PHWKRGV

DQGWHFKQLTXHVIRUJRRGDQGKDYHDVROLGIRXQGDWLRQRIWUDLQLQJDQGVNLOOWKHUHVXOWZLOOEHD

JUHDWVXFFHVVERWKDVLQGLYLGXDOVDQGOHDGHUV

1/3LPSOHPHQWDWLRQFDQRIIHUPDQ\SRVLWLYHRXWFRPHVIRURUJDQL]DWLRQV$FFRUGLQJWR

+DPPRQG SHUVRQDOFRPPXQLFDWLRQ0D\ 1/3FDQDSSO\LQPDQ\ZD\VZLWKLQ

RUJDQL]DWLRQDOVHWWLQJVIURPDPDQDJHPHQWV\VWHPWRZRUNLQJLQWHDPVOHDGHUVKLSIXQFWLRQV

DQGLQGHSHQGHQWDFKLHYHPHQW1/3DOVRLGHQWLILHVPHPEHUV¶VWUHQJWKVZLWKLQDQRUJDQL]DWLRQ

DQGRSWLPL]HVWDOHQWPDQDJHPHQWFUHDWLQJDSRVLWLYHDQGHIILFLHQWHQYLURQPHQW SHUVRQDO

FRPPXQLFDWLRQ0D\ (DFKRUJDQL]DWLRQZLOOQHHGDGLIIHUHQWVHWRIVNLOOVDQG

WHFKQLTXHVWRUHDFKWKHLUIXOOSRWHQWLDO

2QHRIWKH1/3PHWKRGVXVHGLQRUJDQL]DWLRQVZLWKLQWKHSDVWILYHWRWHQ\HDUVLVLQWKH

WUDQVIRUPDWLRQDOFRDFKLQJILHOG+DPPRQG SHUVRQDOFRPPXQLFDWLRQ0D\ H[SODLQHG

WKDWWUDLQLQJKHOSVFRDFKHVWUDQVIRUPHPSOR\HHV¶PLQGVHWVLQWRWKHRUJDQL]DWLRQ¶VPLQGVHWE\

UHPRYLQJDQ\WKLQJIURPWKHSDVWWKDWFRXOGEHFDXVLQJDQXQKHDOWK\PLQGVHWEORFNDJHVRU

EHOLHIVWKDWDUHOLPLWLQJSRWHQWLDODQGJHQXLQHHQMR\PHQWDWZRUN$FFRUGLQJWR+DPPRQG

SHUVRQDOFRPPXQLFDWLRQ0D\ WUDQVIRUPDWLRQDOFRDFKLQJKHOSVFRPSDQLHVJHWWKH

PRVWRXWRIWKHLULQYHVWPHQWSHUHPSOR\HH7KHUHDUHPDQ\EHQHILWVRI1/3WKDWFDQRSWLPL]HDQ

RUJDQL]DWLRQ¶VOHDGHUVKLSDQGHQJDJHPHQWLILPSOHPHQWHGLQWRWKHOHDGHUVKLSWUDLQLQJSURJUDPV



 

1/3¶VRULJLQDOLQWHQWLVZRUWKH[DPLQLQJ$QLQWHUYLHZZLWK'U0LNH$UPRXU SHUVRQDO

FRPPXQLFDWLRQ6HSWHPEHU 3UHVLGHQWRI6WUDWHJLF/HDGHUVKLS'HYHORSPHQW

,QWHUQDWLRQDO,QFDQGDQ1/3SUDFWLWLRQHUVKDUHGWKDWWKHLQLWLDOLQWHQWRI1/3ZDVWKHUDSHXWLF

IRUVHOILPSURYHPHQW+RZHYHUWKHUDS\ZDVQRWRILQWHUHVWWROHDGHUVKLSEHFDXVHLWZDV

LPSRUWDQWIRUSUDFWLWLRQHUVWRSRVVHVVDGYDQFHGFHUWLILFDWLRQVWROHDUQWKHOHDGHUVKLSDSSOLFDWLRQV

IRUDSSURSULDWHWUDQVODWLRQLQWRWKHEXVLQHVVZRUOG+HH[SODLQHGWKDWQRQHRIWKHWKUHHSULQFLSOH

1/3IRXQGHUVFUHDWHGDQ1/3FRXUVHEXWLQVWHDGFRPSLOHGWKHLULQIRUPDWLRQDQGFRQGXFWHG

ZRUNVKRSV6LQFHLWVIRXQGHUVGLGQRWDSSURDFK1/3V\VWHPLFDOO\LWUHPDLQVDQHFGRWDOWRGD\

WKHUHE\FUHDWLQJPDQ\LQWHUQDOFRQWUDGLFWLRQVZKHUHWHFKQLTXHVFDQYLRODWHFHUWDLQSULQFLSOHV

WKXVOHDGLQJWRVRPHRILWVGLVFUHGLWDWLRQ6WLOO'U$UPRXUXVHV1/3VXFFHVVIXOO\LQEXVLQHVV

DQGKDVIRUPDQ\\HDUVRIIHULQJVLJQLILFDQWLQVLJKW:KHQDVNHGDERXW1/3OHDGHUVKLSDQG

HQJDJHPHQW'U$UPRXUVWDWHGWKDWPHWDSURJUDPVDUHYHU\LPSRUWDQWLQSURGXFLQJHQJDJHPHQW

+HDGGHGWKDWYDOXHVFODULILFDWLRQLVDQRWKHUVLJQLILFDQWFRQFHSWIRUOHDGHUV

'U$UPRXUDOVRVKDUHGWZR1/3PRGHOVWKDWKHDGDSWHGIRUOHDGHUVKLSDQG

RUJDQL]DWLRQDOXVH+HDGDSWHGWKH0HUFHGHV0RGHORI&RPPXQLFDWLRQVKRZQLQ)LJXUHWR

SURYLGHDPRUHFRPSUHKHQVLYHGHSLFWLRQRIWKHWKUHH1/3VHFWRUV LQWHUQDOSURFHVVLQWHUQDO

VWDWHDQGREVHUYDEOHEHKDYLRU IURPKLVH[SHULHQFHDVDQ1/3SUDFWLWLRQHUDQGKRZ

RUJDQL]DWLRQVFDQXVHLWWRLPSURYHHQJDJHPHQW+LVYHUVLRQRIWKHPRGHOLQFOXGHVFDWHJRULHV

WKDWH[SODLQWKHPHDQLQJRIHDFKRIWKHWKUHHVHFWRUV7KLVPRGHOGLIIHUHQWLDWHVH[WHUQDOSHUVRQDO

EHKDYLRU YLVLEOHWRDOO IURPWKHWZRLQQHUGRPDLQVRIKXPDQH[LVWHQFH QRWYLVLEOH 7KH

LQWHUQDOSURFHVVLQJLQWHUQDOVWDWHDQGREVHUYDEOHEHKDYLRUPXWXDOO\LQIOXHQFHRQHDQRWKHUEXW

WKHIORZLVDV\PPHWULFDOLQWKDWLWLVPRUHOLNHO\WRDFWDFHUWDLQZD\EHFDXVHRIKRZRQHIHHOVDV

RSSRVHGWRWKHUHYHUVH/HDGHUVFDQXVHWKLVPRGHOWRXQGHUVWDQGDQHPSOR\HH¶VVWDWHPHQWV



 

DFWLRQVDQGERG\ODQJXDJHDWWDLQLQJWKHRSWLPXPLPSDFWRIWKHLUEHKDYLRU7KHLQWHUQDO

SURFHVVLQJILUHVRIIWKHVWDWHDQGWKHVWDWHJHQHUDWHVWKHEHKDYLRU 0&$UPRXUSHUVRQDO

FRPPXQLFDWLRQ6HSWHPEHU 

)LJXUH'U$UPRXU¶VDGDSWDWLRQRIWKH0HUFHGHV0RGHORI&RPPXQLFDWLRQ 0&$UPRXU

SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU &RS\ULJKW0LFKDHO&$UPRXU3K'

1RWKLQJLVPRUHLPSRUWDQWWKDQFUHDWLQJDVWDWHRIHQJDJHPHQW7KHNH\WROHDGHU

HQJDJHPHQWLVWRSXUSRVHIXOO\FUHDWHWKHNLQGVRIVWDWHVLQWKHRUJDQL]DWLRQ¶VFXOWXUHWKDWDUH

FRQGXFLYHWRHQJDJHPHQW 0&$UPRXUSHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU 'U

$UPRXU SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU EHOLHYHVWKHVWDWHRIWUXVWLVWKHPRVW

LPSRUWDQWVWDWHIRUDQ\OHDGHUWRFUHDWH7UXVWEHWZHHQWKHSHRSOHDQGWKHOHDGHUWUXVWEHWZHHQ

OHDGHUVDQGWUXVWEHWZHHQWKHSHRSOH7KXVWUXVWLVQHFHVVDU\IRUHQJDJHPHQW$VWDWHRIWUXVW

ZRXOGEHWKHJURXQGZRUNVWDWHIRUFUHDWLQJDVWDWHRIHQJDJHPHQW7KLVWUXVWEXLOGLQJSULPDULO\

KDVWRGRZLWKWKHUHODWLRQVKLSZLWKWKHLPPHGLDWHPDQDJHU3HRSOHSURMHFWRQWRWKHODUJHU



 

RUJDQL]DWLRQZKDWWKH\VHHLQWKHLUUHODWLRQVKLSZLWKWKHLULPPHGLDWHPDQDJHUVRLIWKH\GRQRW

VKDUHDVWDWHRIWUXVWZLWKWKHLULPPHGLDWHPDQDJHUWKH\ZLOOQRWWUXVWWKHRUJDQL]DWLRQDVD

ZKROH'U$UPRXU SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU SURYLGHGVHYHQLQVLJKWVIRU

OHDGHUVDQGPDQDJHUVDVDV\QRSVLVRIZKDWWKH0HUFHGHVPRGHOVHFWRUVDUHWU\LQJWR

FRPPXQLFDWHDVIROORZV

 )RUSHRSOHWROHDUQPRVWHIIHFWLYHO\WKH\QHHGWREHLQDUHVRXUFHIXOVWDWH

 7REHDVHIIHFWLYHDQGFUHDWLYHDVSRVVLEOHLQDQ\SUHVHQWDWLRQRQHPXVWSODFHKLPRU

KHUVHOILQDUHVRXUFHIXOVWDWHEHIRUHWKHVHVVLRQEHJLQV

 2QHVKRXOGQHYHUORVHVLJKWRIWKHIDFWWKDWSUREOHPEHKDYLRUDOZD\VKDVSUREOHPVWDWHV

EHKLQGLW

 *RRGFRPPXQLFDWRUVDVNSURELQJTXHVWLRQVWR³XQSDFN´WKHLQWHUQDOSURFHVVLQJWKDW

XQGHUOLHVSUREOHPVWDWHVZKLFKLQWXUQOHDGVWRSUREOHPEHKDYLRU*RRGFRPPXQLFDWRUV

XVHYLVXDODQGDXUDODFXLW\WR³VHHWKURXJK´DSHUVRQ¶VEHKDYLRUWRWKHVWDWHWKDWLV

UXQQLQJEHKLQGLW

 :KHQKHOSLQJSHRSOHPDNHFKDQJHVLQEHKDYLRURQHVKRXOGKHOSWKHPLGHQWLI\QRWRQO\

WKHQHZEHKDYLRUVWKDWWKH\GHVLUHEXWDOVRWKHVWDWHVWKH\ZLOOEHUXQQLQJWRVXSSRUWWKHVH

QHZEHKDYLRUV

 :KHQKHOSLQJSHRSOHPDNHFKDQJHVLQEHKDYLRURQHVKRXOGKHOSWKHPLGHQWLI\WKHQHZ

EHKDYLRUVWKDWWKH\GHVLUHDQGWKHVWDWHVWKH\ZLOOEHUXQQLQJWRVXSSRUWWKHVHQHZ

EHKDYLRUV

'U$UPRXU¶VLQVLJKWVZLWKWKLVPRGHOFDQKHOSOHDGHUVXQGHUVWDQGKRZWRHIIHFWLYHO\LQIOXHQFH

HPSOR\HHVLQWKHLURUJDQL]DWLRQWRSRVLWLYHO\LPSDFWHQJDJHPHQW



 

'U$UPRXU SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU DOVRXVHVDQRWKHUPRGHOZLWK

OHDGHUVKLSDGDSWLQJ'LOW]¶VORJLFDOOHYHOVPRGHOWRDQHLJKWOHYHOVRIFKDQJHPRGHOGHSLFWHGLQ

)LJXUHDQGXVHVLWIUHTXHQWO\DVDQDSSOLFDWLRQRI1/3LQEXVLQHVV'LOW]¶VRULJLQDOKLHUDUFK\

ZDVVL[OHYHOVDQGIROORZHGWKHLGHDWKDWWKHOHYHOVDWWKHWRSKDGPXFKOHYHUDJHRQWKHOHYHOV

EHORZEXWZKDWZDVRQWKHERWWRPGLGQRWKDYHPXFKOHYHUDJHRYHUWKHOHYHOVDERYH7KHKLJKHU

XSWKHOLVWWKHPRUHOHYHUDJHWKHUHLVWRPDNHDFKDQJH'U$PRXUVSOLWYDOXHVDQGEHOLHIVVLQFH

WKH\DUHSDUWRIGLIIHUHQWGRPDLQV DIIHFWLYHYHUVXVFRJQLWLYH DQGDGMXVWHGWKHODQJXDJHWRPDNH

WKHPRGHOPRUHHDVLO\XQGHUVWRRGDQGDFFHSWHGLQDEXVLQHVVHQYLURQPHQW+HXVHVWKHPRGHOWR

H[SODLQKRZWKHDIIHFWLYHGRPDLQ YDOXHV LPSDFWVWKHFRJQLWLYHGRPDLQ EHOLHIV 9DOXHVDUHWKH

KHDUWRIPRWLYDWLRQ WRZDUGRUDZD\ +HH[SODLQHGWKDWRQO\DGGUHVVLQJWKHOHYHOVLQWKH

PDQDJHPHQWJURXSZRXOGSURYLGHDWHPSRUDU\VROXWLRQDVWKHOHYHOVLQWKHOHDGHUVKLSJURXS

ZRXOGRYHUULGHWKHPRYHUWLPH/DVWLQJFKDQJHPXVWFRPHIURPWKHOHDGHUVKLSJURXS

WUDQVFHQGHQWFRQQHFWLRQLGHQWLW\YDOXHVEHOLHIVDQGFRQYLFWLRQV )RFXVLQJRQOHDGHUVKLS

OHYHOVFDQKHOSRUJDQL]DWLRQVEHPRUHVWUDWHJLFLQDGGUHVVLQJHQJDJHPHQWLQWKHLURUJDQL]DWLRQ



 

)LJXUH'U$UPRXU¶VDGDSWDWLRQRI'LOW]¶VORJLFDOOHYHOVPRGHOWKDWKHFDOOV(LJKW/HYHOVRI

&KDQJH SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU &RS\ULJKW0LFKDHO&$UPRXU

3K'

([WDQW/LWHUDWXUH

1HXUR/LQJXLVWLF3URJUDPPLQJ

1/3'HILQHG$FFRUGLQJWR)XUGXHVFX  1/3LVWKH³VFLHQFHDQGDUWRISHUVRQDO

HIILFLHQF\´ S $OPXWDLUL  GHILQHG1/3GLIIHUHQWO\DVDFRPSUHKHQVLYHDQDO\VLVRIWKH

WKLQNLQJSURFHVVODQJXDJHDQGEHKDYLRU.RWHUD6KHIILHOGDQG9DQ*RUGRQ  VKDUHGD

VLPLODUGHILQLWLRQWKDW1/3LVDSHUVRQDOGHYHORSPHQWDQGFRPPXQLFDWLRQWDFWLFIRFXVLQJRQ

LQGLYLGXDOV¶ODQJXDJHWKLQNLQJDQGIHHOLQJV5RJR]LĔVND  IXUWKHUGHILQHG1/3DVDVHWRI

FRPPXQLFDWLRQWHFKQLTXHVDQGVWUDWHJLHVGHVLJQHGIRUOHDUQLQJSHUVRQDOFKDQJHDQGUDSSRUW

EXLOGLQJ'LHKO  RIIHUHGDYDU\LQJGHILQLWLRQLQVD\LQJ1/3LVSRVLWLYHFRJQLWLRQXVHGWR



 

UHSURJUDPWKHEUDLQWRFKDQJHVRPDWLFDQGSV\FKRORJLFDOEHKDYLRUV7KHUHDUHPDQ\GLIIHUHQW

ZD\VRIGHILQLQJ1/3EXWWKHYDU\LQJGHILQLWLRQVDOOVKDUHDIRXQGDWLRQLQFRPPXQLFDWLRQ

IRFXVHGRQEHKDYLRUDORXWFRPHV

,QDSSO\LQJ1/3WHFKQLTXHVODQJXDJHDQGFRPPXQLFDWLRQLQIOXHQFHWKHOHDUQHU¶VPLQG

ZKHUHWKHEUDLQFDQUHDFWLQDZD\WKDWVKLIWVWRZDUGSURJUHVVZLWKDQLPSURYHGEHKDYLRUSDWWHUQ

FKDQJH .KDODQGL =RJKL ,QWKHFRPPXQLFDWLRQSURFHVVHPRWLRQVWKRXJKWVODQJXDJH

DQGEHKDYLRUDUHLQWHUUHODWHGDQGLQWHUGHSHQGHQW /DSRVL'DQ )LOLS 6HYHUDO

WUDQVODWLRQVDQGYDULDWLRQVH[LVWRQKRZWRDSSO\1/38QGHUVWDQGLQJ1/3LVYLWDOIRU

UHFRJQL]LQJWKHUHODWLRQVKLSEHWZHHQ1/3HPSOR\HHHQJDJHPHQWDQGLWVRUJDQL]DWLRQDO

GHYHORSPHQWUROH

$FFRUGLQJWR/DSRVLHWDO  1/3LVERWKDQLQWHUQDODQGH[WHUQDOFRPPXQLFDWLRQ

SURFHVVWKDWFRQWLQXHVWKURXJKRXWDOLIHWLPH7KHFRQVFLRXVDQGXQFRQVFLRXVOHYHOVRIWKHWZR

FRPPXQLFDWLRQSURFHVVGLPHQVLRQV²WKHPHWDPRGHODQGWKH0LOWRQPRGHO²EULQJ

XQGHUVWDQGLQJGHVLUHGFKDQJHDFFHOHUDWHGOHDUQLQJDQGLPSURYHPHQW7KHPHWDPRGHO

GHYHORSHGE\5LFKDUG%DQGOHUOLQNV-RKQ*ULQGHU¶VWUDQVIRUPDWLRQDOJUDPPDUZLWKWKH

H[SHULHQFHJHQHUDWHGIURPLQIRUPDWLRQGHOHWLRQGLVWRUWLRQDQGJHQHUDOL]DWLRQ /DSRVLHWDO

 7KHPHWDPRGHOJDWKHUVLQIRUPDWLRQFODULILHVWKHPHDQLQJLGHQWLILHVOLPLWVDQGSURYLGHV

RSWLRQV7KH0LOWRQPRGHOZDVWKHVHFRQG1/3PRGHOFUHDWHGE\ERWK%DQGOHUDQG*ULQGHUDQG

EDVHGRQ0LOWRQ(ULFNVRQ¶VZRUN7KH0LOWRQPRGHOLVDVXEMHFWLYHPLUURULPDJHRIWKHPHWD

PRGHOXVHGWRPDNHODQJXDJHDPELJXRXVWREULQJIRUWKWKHVXEFRQVFLRXV /DSRVLHWDO 

7KHIXQGDPHQWDO1/3SULQFLSOHVDUHWKDWWKHPDSLVQRWWKHWHUULWRU\DQGWKHSURFHVVHV

WKDWRFFXUZLWKLQDQGEHWZHHQSHUVRQVDQGWKHLUHQYLURQPHQWDUHV\VWHPLF )XUGXHVFX 

1/3¶VVWUDWHJ\LVWRDQDO\]HDSHUVRQ¶VVXEMHFWLYHH[SHULHQFH .RWHUDHWDO $FFRUGLQJWR



 

$OPXWDLUL  1/3VRPHWLPHVUHIHUUHGWRDVSV\FKRORJLFDOHQJLQHHULQJSURYLGHVPDQQHUV

DQGPHWKRGVWKDWLPSDFWFRJQLWLRQWKRXJKWVDQGIHHOLQJVIRULQIOXHQFLQJEHKDYLRUVVNLOOVDQG

SHUIRUPDQFH$OPHQGDUH]  H[SODLQHGWKDW1/3¶VSUHPLVHLVWKDWGXSOLFDWLQJRU

V\QFKURQL]LQJKRZRWKHUVH[FHOZLOOUHSOLFDWHV\QRQ\PRXVRXWFRPHVLQRWKHUVZLWKWKHLQWHQWRI

HQKDQFLQJSHUIRUPDQFH.KDODQGLDQG=RJKL  SURYLGHGWKHSXUSRVHRIEULQJLQJSRVLWLYH

FKDQJHE\KHOSLQJSHRSOHXQGHUVWDQGDQGFRQWUROWKHLUWKRXJKWVDQGHPRWLRQV'LHKO  

HODERUDWHGWKDWRQFHXQGHUVWRRGDYHUEDOVWDWHPHQWRIWKHWKRXJKWLVHVVHQWLDOWRKRQHVWO\

EHOLHYHWKHSRVLWLYHWKRXJKW1/3¶VSUHPLVHDQGSXUSRVHVKRZWKDWLWFDQSRVLWLYHO\LQIOXHQFH

HPSOR\HHHQJDJHPHQW7KHJRDORI1/3LVWRHOLFLWSRVLWLYHFKDQJH

&RDFKLQJSHUVRQDOGHYHORSPHQWYDU\LQJWKHUDSLHVDQGVDOHVDUHDOODUHDVFRYHUHGXQGHU

1/3 5RJR]LĔVND .RWHUDHWDO  QRWHGWKDWDZLGHUDQJHRILQGXVWULHVXVHV1/3WR

LQFOXGHVSRUWVHGXFDWLRQEXVLQHVVDQGPDQDJHPHQW.KDODQGLDQG=RJKL  DJUHHGEXW

WRRNLWRQHVWHSIXUWKHUWRVD\1/3FDQJHQHUDOO\DSSO\WRDQ\OLIHDSSURDFK1DKDU  

UHDVRQHGWKDWDSSO\LQJ1/3LQYDULRXVILHOGVLVJURZLQJEHFDXVHLWDOORZVIRUEXLOGLQJKXPDQ

FDSLWDOWKURXJKDFWLYHHPSOR\HHGHYHORSPHQWHGXFDWLRQDQGWUDLQLQJ7KHEURDGDSSOLFDWLRQDQG

VXFFHVVIXOXVHLQYDULRXVLQGXVWULHVVXSSRUW1/3 VLGHDWRDSSO\WRDEXVLQHVVDQGPDQDJHPHQW

VHWWLQJSRVLWLYHO\LPSURYLQJHPSOR\HHHQJDJHPHQW

1/3+LVWRU\DQG2YHUYLHZ1/3RULJLQDWHGLQ6DQWD&UX]&DOLIRUQLDE\WKHOLQJXLVW

-RKQ*ULQGHUDQGPDWKHPDWLFLDQ5LFKDUG%DQGOHULQDVDFRPELQDWLRQRIUHVHDUFKE\

*HVWDOWWKHUDSLVW)ULW]3HUOVK\SQRWKHUDSLVW0LOWRQ(ULFNVRQIDPLO\WKHUDSLVW9LUJLQLD6DWLUDQG

DQWKURSRORJLVW*UHJRU\%DWHV DVFLWHGLQ6XFLX 6PLWK  HODERUDWHGRQ1/3¶V

EXLOGLQJEORFNVWRH[SODLQWKDW%DQGOHUDQG*ULQGHUEXLOWRQ(ULFNVRQ¶VZRUNDVDIRXQGDWLRQDO

HOHPHQWWRDQDO\]HDQGGLVWLOONH\OLQJXLVWLFHOHPHQWVIRUFKDQJHLQWRWKHUDS\ZKLFKGHYHORSHG



 

LQWR1/3$OPHQGDUH]  SURYLGHGPRUHFRQWH[WE\DGGLQJWKDW1/3¶VGHVLJQKHOSHG

GLVFRYHUXQGHUO\LQJSRVLWLYHSDWWHUQV

.RWHUDHWDO  VXSSRUWHG1/3¶VOLQJXLVWLFHOHPHQWWKURXJKDPSOLILFDWLRQ

HVWDEOLVKHGRQFRPPXQLFDWLRQPRGHOVDQGGHVLJQHGWRDSSO\HYLGHQFHLQIRUPHGSHUVRQDODQG

SURIHVVLRQDOGHYHORSPHQWVWUDWHJLHV1DKDU  IRFXVHGRQWKHQHXURORJLFDODQGSURJUDPPLQJ

VLGHWRVD\WKDW1/3LVDFRJQLWLYHEHKDYLRUDOPRGHOWKDWIRFXVHVRQWKHVXEFRQVFLRXVPLQG

2ULJLQDOO\GHVFULEHGDVDPHWKRGRORJ\FDOOHGPRGHOLQJ1/3DWWHPSWVWRPDNHRWKHUV

FRPSUHKHQGKXPDQFDSDELOLWLHV 7RVH\ 0DWKLVRQ $SSUHFLDWLQJRWKHU¶VWKRXJKW

SURFHVVHVFDQKHOSOHDGWKHPEHWWHUDQGSURYLGHDQHQYLURQPHQWFRQGXFLYHWRSRVLWLYH

HQJDJHPHQW

 )XUGXHVFX  KHOSHGXQGHUVWDQG1/3IRUPDWLRQDVWKHSULPDU\VFLHQFHVRI

QHXURORJ\OLQJXLVWLFVDQGSURJUDPPLQJ FRPSXWHU FRPELQHGDVDWULXPYLUDWHWKDWEHFDPH1/3

SLOODUV1DKDU  SURYLGHGWKHWHFKQLFDOGHILQLWLRQWKDW³QHXUR´VWDQGVIRUZKHQWKH

WUDQVODWLRQRIVHQVRU\FRQVFLRXVDQGXQFRQVFLRXVH[SHULHQFHVWKHQHXURORJLFDOV\VWHPDFWLYDWHV

LQWRWKRXJKWSURFHVVHV)XUGXHVFX  DJUHHGEXWGHVFULEHGPRUHSODLQO\WKDW³QHXUR´RUKRZ

WKHPLQGWKLQNVLVUHVSRQVLEOHIRUSURJUDPPLQJWKHEUDLQ¶VHQYLURQPHQWDOSHUFHSWLRQVIRU

VHOHFWLQJWKHGHVLUHGEHKDYLRUIRUDVLWXDWLRQ

/LQJXLVWLFVLQFOXGHYHUEDODQGQRQYHUEDOODQJXDJH $OPXWDLUL )XUGXHVFX  

HODERUDWHGWKDWOLQJXLVWLFVLVKRZODQJXDJHLPSDFWVSHRSOH¶VWKLQNLQJWKDWPDQLIHVWVLQWKHLU

FRPPXQLFDWLRQV\VWHPDVERWKFRQVFLRXVDQGXQFRQVFLRXVFRPPXQLFDWLRQ1DKDU  DJUHHG

DQGH[SDQGHGWRVD\WKHODQJXDJHPHQWDOPDSRUOLQJXLVWLFPDSLQFOXGHVLQWHUQDOLPDJHV

VHQVRU\H[SHULHQFHVOLNHVRXQGVDQGVPHOODQGIHHOLQJVDQGJHWVXVHGWRFRQFHSWXDOL]HDQG

FRPPXQLFDWHWKRVHH[SHULHQFHV3URJUDPPLQJLVWKHFRQFHSWWKDWRXUEUDLQLVSURJUDPPDEOH



 

DQGWKHSDWKVPHWKRGVWHFKQLTXHVDQGVWUDWHJLHVDSHUVRQXVHVWRSHUIRUPWDVNVFDQFKDQJH

)XUGXHVFX $OPXWDLUL  VLPSOLILHGWKLVDVVHUWLRQE\VWDWLQJWKDWSURJUDPPLQJLV

ZKHUHQHZSURJUDPVUHSODFHROGSURJUDPV

5RJR]LĔVND  VXPPDUL]HGDOOWKUHHSLOODUVWRVD\WKDWQHXURLVWKHZD\DSHUVRQ

SURFHVVHVLQIRUPDWLRQWKURXJKWKHXVHRIWKHLUVHQVHVIRUHPSOR\LQJWKHEUDLQDQGQHUYRXV

V\VWHPOLQJXLVWLFVLVWKHYHUEDODQGQRQYHUEDOPHDQVRIFRPPXQLFDWLQJDQGSURJUDPPLQJLV

WKHZD\WKHQHXURDQGOLQJXLVWLFHOHPHQWVLQWHUQDOO\FRPELQHLQWRDSHUVRQ¶VLQGLYLGXDOSURJUDP

6SLURLX  UHLWHUDWHGWKHVXPPDU\LQH[SODLQLQJWKDWQHXURLVWKHZD\RXUFHQWUDOQHUYRXV

V\VWHPGHYHORSVWKLQNLQJSDWWHUQVDQGSURFHVVHVVHQVRU\LQIRUPDWLRQ/LQJXLVWLFLVWKHPHDQLQJ

WKDWFRPHVIURPWKHODQJXDJHV\VWHPVDQGYHUEDOH[SUHVVLRQVDQGWKHPHWKRGE\ZKLFK

LQIRUPDWLRQJHWVHQFRGHGVWRUHGDQGUHWULHYHGWRGHWHUPLQHEHKDYLRURXWFRPHVLQSURJUDPPLQJ

,WLVWKHFRPELQDWLRQRIWKHHOHPHQWV QHXUROLQJXLVWLFVDQGSURJUDPPLQJ LQVLPXOWDQHRXVXVH

WKDWPDNH1/3HIIHFWLYHLQEULQJLQJDERXWFKDQJH

 7KH1/3PRGHOFODLPVWKDWDOOSHUVRQVKDYHDQXQFRQVFLRXVSUHIHUUHGUHSUHVHQWDWLRQDO

V\VWHPWKDWVXEFRQVFLRXVO\VKDSHVWKHLUYLVLRQKHDULQJDQGIHHOLQJH[SHULHQFHV 6SLURLX 

7RVH\DQG0DWKLVRQ  DJUHHGDQGHODERUDWHGWKDWLQ1/3WKHLQQHUH[SHULHQFHFRPSULVHV

YLVXDODXGLWRU\NLQHVWKHWLFDQGROIDFWRU\JXVWDWRU\SURFHVVHVWKDWWUDQVIRUPLQWRFRJQLWLYH

LQWHUQDOVHQVRU\UHSUHVHQWDWLRQVZKHUHDSHUVRQFDQUHOLYHRUUHLPDJLQHDQH[SHULHQFH6SLURLX

 DGGHGWKDWHDFKSHUVRQKDVDGRPLQDQWVHQVRU\PRGDOLW\WKDWVKDSHVKRZWKH\

FRPPXQLFDWH,QDUHVHDUFKVWXG\RQXQLYHUVDOODQJXDJH$OPXWDLUL  VKRZHGWKHEHQHILWRI

DSSO\LQJ1/3WRYLVXDODXGLWRU\DQGNLQHVWKHWLFSUHIHUHQFHVZKLFKLQFUHDVHVWKHDELOLW\WR

FRQWUROLPDJHVYRLFHVWKRXJKWVDQGHPRWLRQVWRLPSURYHDOODVSHFWVRIOLIH9HQNDWHVKDQG

.DQH  RIIHUHGDGGLWLRQDOEHQHILWVE\H[SODLQLQJWKDWDQFKRULQJPRGHOLQJQHZEHKDYLRU



 

JHQHUDWRUDQGVZLVKWHFKQLTXHDUHVRPHRIWKH1/3WHFKQLTXHVWKDWFDQDVVLVWZLWKXQFRYHULQJ

WKHVXEFRQVFLRXVDQGUHOD[DWLRQ3DVVPRUHDQG5RZVRQ  WLHGXVLQJ1/3EDFNWR

UHVSRQVLELOLW\LQFODLPLQJWKDWSHRSOH¶VYLVXDONLQHVWKHWLFDXGLWRU\ROIDFWRU\DQGJXVWDWRU\

H[SHULHQFHVVKDSHWKHLUSHUFHSWLRQVRIWKHZRUOGRUWKHLU³PDS´DQGLWLVWKHWKHUDSLVW¶V

UHVSRQVLELOLW\WRKHOSWKHPQDYLJDWHWKURXJKWKHLUH[SHULHQFHVWRSURGXFHDSRVLWLYHUHVXOW,I

OHDGHUVFDQOHDUQDQHPSOR\HH¶VSUHIHUUHGUHSUHVHQWDWLRQDOV\VWHPWKH\ZLOOEHDEOHWRXVHWKHLU

H[SHULHQFHVWRVKDSHDSRVLWLYHUHVXOW1/3DOORZVIRUDWDLORUHGH[SHULHQFH

(PSOR\HH(QJDJHPHQW

(PSOR\HH(QJDJHPHQW'HILQHG-RKQVRQ  QRWHGWKDWWKHFRQFHSWRIHQJDJHPHQW

H[SORUHVERWKWKHHPSOR\HUDQGHPSOR\HHSHUVSHFWLYHV(PSOR\HHHQJDJHPHQWQRZKDVPDQ\

GHILQLWLRQVDQGFRQFHSWV :DVKLQJWRQ 2QHGHILQLWLRQRIZRUNHQJDJHPHQWLVDSRVLWLYH

DIIHFWLYHPRWLYDWLRQDOIXOILOOLQJVWDWHDWZRUNWKDWPDQLIHVWVDVDEVRUSWLRQYLJRUDQGGHGLFDWLRQ

:DQJ/L /L $FFRUGLQJWR*LOSLQ-DFNVRQ)DONQHU0LQDQG%ORFN*ODVV  WKH

YLJRUDEVRUSWLRQDQGGHGLFDWLRQRIDSRVLWLYHPLQGVHWPDNHXSHQJDJHPHQW%DUPRUH¶V  

FDVHVWXG\RQHQJDJHPHQWIURPWKHHPSOR\HHSHUVSHFWLYHSURGXFHGDVLPLODUGHILQLWLRQWKDW

HQJDJHPHQWLVDSV\FKRORJLFDOSKHQRPHQRQZKHUHWKHHPSOR\HHLVYLJRURXVDQGVKRZV

GHGLFDWLRQDQGLPPHUVLRQLQWRWKHLUWDVNV&HQNFLDQGg]oHOLN  SRVLWHGWKDWHPSOR\HH

HQJDJHPHQWLVWKHYLJRUGHGLFDWLRQDQGDEVRUSWLRQHPSOR\HHVH[SHULHQFHZKHQWKH\KDYHD

SRVLWLYHIXOILOOLQJDQGZRUNUHODWHGVWDWHRIPLQG(DFKRIWKHVHUHVHDUFKHUVVKDUHVLQWKHLU

GHILQLWLRQRIZKDWLWPHDQVWREHDQHQJDJHGHPSOR\HH

1XJURKR  H[SODLQHGHPSOR\HHHQJDJHPHQWGLIIHUHQWO\WRVD\HQJDJHPHQW

HQFRPSDVVHVHPSOR\HHV¶HQWKXVLDVPIRURUJDQL]DWLRQDODFWLYLWLHVUHIOHFWLQJKRZWKHLU

HQWKXVLDVPPDQLIHVWVDVDVWURQJFRPPLWPHQWDQGZRUNVDWLVIDFWLRQ&OD\SRRO  DJUHHGWKDW



 

HPSOR\HHHQJDJHPHQWPHDVXUHVHPSOR\HHV¶HPRWLRQDODWWDFKPHQWWRWKHLUMREFRZRUNHUVDQG

RUJDQL]DWLRQZLWKWKHLUZLOOLQJQHVVWROHDUQDQGSHUIRUPDWZRUN-XHQDUD:DVKLQJWRQ¶V  

ILQGLQJVIURPKHUVWXG\RQHPSOR\HHHQJDJHPHQWVXSSRUWHGWKHVHGHILQLWLRQVEXWDGGHGWKH

SHUIRUPDQFHHOHPHQWWRH[SDQGWKDWHPSOR\HHHQJDJHPHQWLVWKHDWWDFKPHQWHPSOR\HHVIHHOWR

WKHLUMREVDQGWKHUHVXOWLQJSK\VLFDOHPRWLRQDODQGFRJQLWLYHUHVSRQVHLQSHUIRUPDQFH-LDQJ

DQG/XR  WRRNWKHPDQ\GHILQLWLRQVRIHQJDJHPHQWDQGFRPELQHGWKHPWRVWDWHWKDW

HPSOR\HHHQJDJHPHQWLVWKHGULYHUEHKLQGSRVLWLYHHIIHFWVRQDQRUJDQL]DWLRQGXHWRWKH

SHUFHLYHGKLJKOHYHORIHPSRZHUPHQWWKDWFRPHVIURPDVWDWHRIPLQGHPERG\LQJSHUVLVWHQW

SHUYDVLYHDQGIXOILOOLQJZRUN6KURWU\LDDQG'KDQGD  ZHQWEH\RQGWKHGHILQLWLRQWR

SURYLGHWKHWKUHHIDFHWVRIHQJDJHPHQWDIIHFWLYHVRFLDODQGLQWHOOHFWXDO2QDVLPLODUQRWH

6DKX3DWKDUGLNDUDQG.XPDU  SURYLGHGWKHWKUHHIDFHVRIHQJDJHPHQWDQHPSOR\HH

GLVSOD\VLQWKHZRUNSODFHYLHZVRIOLIH LQGLYLGXDOWUDLW IHHOLQJVRIHQHUJ\ VWDWH DQGH[WUD

UROH EHKDYLRU &RPSUHKHQGLQJHPSOR\HHHQJDJHPHQWDOORZVIRUUHFRJQL]LQJLWDQGGHYHORSLQJ

LW

(PSOR\HH(QJDJHPHQW+LVWRU\.KDQLQWURGXFHGWKHFRQFHSWRIHPSOR\HHHQJDJHPHQWLQ

DVDUHVXOWRIKLVVWXG\RQZKDWOHGWRDSHUVRQDOHQJDJHPHQWDWZRUN DVFLWHGLQ/L 

(PSOR\HHHQJDJHPHQWVWDUWHGZLWKDIRFXVRQHPSOR\HHRSLQLRQDERXWMREVDWLVIDFWLRQDQG

GHYHORSHGLQWRDIRFXVRQHQJDJHPHQWLQFRQQHFWLRQVWRRWKHUSHRSOHILQDQFLDOVDQGPDUNHWLQJ

FRQVHTXHQFHV 6FKQHLGHU %ODQNHQVKLS $FFRUGLQJWR6KURWU\LDDQG'KDQGD  

*DOOXSZDVUHVSRQVLEOHIRUVKLIWLQJWKHIRFXVRQHQJDJHPHQWIURPQHJDWLYHWRSRVLWLYH

SV\FKRORJ\E\ORRNLQJDWLWIURPSRVLWLYHDVSHFWV

(PSOR\HHHQJDJHPHQWKDVEHFRPHDJOREDORUJDQL]DWLRQDOIRFXVWU\LQJWRPDLQWDLQD

FRPSHWLWLYHDGYDQWDJH$FRPSHWLWLYHDGYDQWDJHLQFOXGHVLQFUHDVHGSURGXFWLYLW\DQGUHGXFHG



 

HPSOR\HHWXUQRYHU ,PUDQ .KDWWDN 6KURWU\LDDQG'KDQGD  VXSSRUWHGWKDW

FRQWHPSRUDU\RUJDQL]DWLRQVZRUOGZLGHDUHIRFXVLQJRQFUHDWLQJHQJDJHGHPSOR\HHVWRVXUSDVV

WKHFRPSHWLWLRQ(PSOR\HHHQJDJHPHQWLVDSRSXODUVXEMHFWEHFDXVHKLJKOHYHOVRIHPSOR\HH

HQJDJHPHQWOHDGWRLPSURYHGILQDQFLDOSHUIRUPDQFHDQGSRVLWLYHHPSOR\HHRXWFRPHVWKDW

FRQWHPSRUDU\RUJDQL]DWLRQVDUHORRNLQJIRU 5D]D 1DGHHP 

7KHDVSHFWVRIHPSOR\HHHQJDJHPHQWFRPHLQPXOWLSOHVHWVRIWKUHH$QWRQ\  

SURYLGHGWKUHHOHYHOVRIHQJDJHPHQWHQJDJHGQRWHQJDJHGDQGGLVHQJDJHG$FFRUGLQJWR6DDG

HWDO  WKHWKUHHYDULDEOHVWKDWLPSDFWHPSOR\HHHQJDJHPHQWDUHSHUVRQDOLW\DWWULEXWHV

FRPPXQLFDWLRQDQGOHDGHUVKLSVW\OH3V\FKRORJLFDOPHDQLQJIXOQHVVSV\FKRORJLFDOVDIHW\DQG

SV\FKRORJLFDODYDLODELOLW\DUHWKHWKUHHGLPHQVLRQVRIHPSOR\HHHQJDJHPHQW 6KURWU\LD 

'KDQGD 1XJURKR  HODERUDWHGWKDWWKHGLPHQVLRQVRIHPSOR\HHHQJDJHPHQW

FRUUHODWHZLWKWKHOHYHOVRIHPSOR\HHIXOILOOPHQWZKLFKLQFOXGHJLYLQJHPSOR\HHV¶FRQWULEXWLRQV

WKHFKDQFHRIFDUHHUJURZWKDQGDVHQVHRIEHORQJLQJ/HDGHUVDUHWKHRQHVZKRGULYHWKH

GLPHQVLRQVWKDWLPSDFWWKHOHYHORIHQJDJHPHQW

(PSLULFDO/LWHUDWXUH

1/3(IIHFWLYHQHVV

.DPS  H[SODLQHGKRZRUJDQL]DWLRQVFRXOGXVH1/3WRFODULI\DFKLHYDEOH

REMHFWLYHVGHYHORSFRPSHWHQWPDQDJHPHQWWHDPVPRWLYDWHVWDIIDQGHQKDQFHHIIHFWLYHQHVVE\

LGHQWLI\LQJRSWLPDOSUDFWLFHVDQGLQVSLULQJWKHRUJDQL]DWLRQWRZRUNZLWKWKHGHYHORSPHQWDO

FKDQJHV6RPH)RUWXQHFRPSDQLHVXVH1/3DVWKHLUWHFKQRORJ\RIFKRLFH&RXFK 

$FFRUGLQJWRGH5LMN  1/3LVSRSXODUEHFDXVHRILWVJRDORULHQWHGIRFXV1DKDU  

SURYLGHGFRQWH[WWKDWWKHSRVLWLYHFKDQJHFRPLQJIURPXVLQJ1/3VWHPVIURPXVLQJ

FRPPXQLFDWLRQWHFKQLTXHVDQGVWUDWHJLHVDVDFDWDO\VWIRUOHDUQLQJ.DPS  H[SODLQHGKRZ



 

LWLVDFDWDO\VWIRUOHDUQLQJE\DLGLQJLQLGHQWLI\LQJWKHDVSHFWWKDWJHQHUDWHGSUHYLRXVVXFFHVVDQG

XVLQJLWWRJHWUHVXOWVIURPFXUUHQWLQWHUDFWLRQV

%H\RQGDFWLQJDVDFDWDO\VWIRUOHDUQLQJ1/3LVXVHIXOZKHQLWFRPHVWRFRPPXQLFDWLRQ

1RUDK$OPXWDLUL  VXSSRUWHGFRPPXQLFDWLRQEHQHILWE\H[SODLQLQJKRZ1/3LPSURYHV

FRPPXQLFDWLRQVNLOOVWKURXJKDJUHDWHUXQGHUVWDQGLQJRIQRQYHUEDOFRPPXQLFDWLRQVNLOOV1/3

DVDFRDFKLQJWRROLVXVHIXOLQFKDQJLQJEHKDYLRUEHFDXVHLWLGHQWLILHVWKHFOLHQW¶VZRUOGPRGHO

WKURXJKWKHODQJXDJHWKH\XVH %ODQNHQVKLS 1DKDU  FODULILHGWKDWWDUJHWHGODQJXDJH

DQGEHKDYLRUIRUGHVLUHGUHVXOWVFRPHWKURXJKSHUFHLYLQJKRZRWKHUVWKLQNDQGIHHO)XUGXHVFX

 RIIHUHGDPRUHVFLHQWLILFH[SODQDWLRQRIKRZFRPPXQLFDWLRQDQG1/3ZRUNE\WDNLQJWKH

PHQWDOV\QWD[DQGEHOLHYLQJWKDWLQGLYLGXDOVFDQDFKLHYHDQ\WKLQJWKH\WKLQNLVSRVVLEOHDQG

VWLPXODWLQJWKHEUDLQWRDFFRPSOLVKWKDWUHVXOWE\FRPPXQLFDWLQJWKHWKRXJKWZLWKWKHQHUYRXV

V\VWHP8VLQJ1/3WRLPSURYHFRPPXQLFDWLRQVNLOOVFDQLPSURYHFRPPXQLFDWLRQLQOHDGHU

IROORZHUUHODWLRQVKLSVZKLFKZRXOGOHDGWRLQFUHDVHGJRDODFFRPSOLVKPHQW

 7KH1/3IUDPHZRUNH[DPLQHVKXPDQEHKDYLRUKROLVWLFDOO\²DSSO\LQJWRDOOSHUVRQV

FXOWXUHVDQGFRQWH[WV²LQZKLFKLQGLYLGXDOVRURUJDQL]DWLRQVFDQXVHWRHQKDQFHHIIHFWLYHQHVVRU

ZRUNRQVLJQLILFDQWSUREOHPV .DPS :DWVRQ  VXSSRUWHG1/3¶VH[SDQVLYHUHDFK

QRWLQJWKDW1/3DSSOLHVWRPRUHODQJXDJHVWKDQ(QJOLVKEXWFDXWLRQHGWKHUHLVDFKDOOHQJHZLWK

WUDQVODWLRQ'HVSLWHWKHWUDQVODWLRQFKDOOHQJHV1/3DSSOLFDWLRQFRQWLQXHVZRUOGZLGH

1/3LVGLYHUVHLQDYDLODEOHDSSURDFKHVDQGDSSOLFDWLRQVDQGFDQEHDGDSWDEOHGHSHQGLQJ

RQWKHGHVLUHGRXWFRPH+LJKOLJKWLQJPRGHOLQJDQGIRFXVLQJRQJRDOVDUHHVVHQWLDOIRUVXFFHVVLQ

1/3FRDFKLQJ 6LPRQV .RWHUDHWDO  FRQGXFWHGDVWXG\RIWLWOHVDQGIRXQG

WKDW1/3FDQEHHIIHFWLYHLQDQRUJDQL]DWLRQDOVHWWLQJIRULPSURYLQJDZLGHUDQJHRIZRUNUHODWHG

SV\FKRORJLFDORXWFRPHV.DPS  H[SODLQHGVRPHRIWKHZLGHUDQJHRIRXWFRPHV



 

RUJDQL]DWLRQVFDQXVH1/3WRFODULI\DFKLHYDEOHREMHFWLYHVGHYHORSFRPSHWHQWPDQDJHPHQW

WHDPVPRWLYDWHVWDIIHQKDQFHHIIHFWLYHQHVVWKURXJKLGHQWLI\LQJRSWLPDOSUDFWLFHVDQGLQVSLUH

WKHRUJDQL]DWLRQWRZRUNZLWKWKHGHYHORSPHQWDOFKDQJHV1/3WDNHVZKDWLVPLVVLQJIURP

WUDGLWLRQDOPHWKRGVDQGWHFKQLTXHVDQGEULQJVDZDUHQHVVRIZKDWPDNHVWKHGLIIHUHQFH 6LPRQV

 1/3ILOOVLQWKHJDSVLQH[LVWLQJSURJUDPVDQGDOORZVIRUJUHDWHUPRWLYDWLRQWRZDUG

DFKLHYLQJRUJDQL]DWLRQDOVXFFHVV.RWHUDHWDO  HPSKDVL]HGWKDWIRUEHVWUHVXOWVDSSO\LQJ

1/3VNLOOVVKRXOGEHSDUWRIDFRPSOHWHIUDPHZRUNLQVWHDGRILQGLYLGXDOO\

 (IIHFWLYHJRDOVHWWLQJDQGVWUDWHJLHVIRUPD[LPL]LQJJRDODWWDLQPHQWDUHNH\7KHXQLTXH

IHDWXUHVRI1/3¶VZHOOIRUPHGRXWFRPHXVLQJWKHILYHVHQVRU\GRPDLQVZLWKERG\PRYHPHQW

LPSURYHJRDORZQHUVKLSDQGPRWLYDWLRQLQDGGLWLRQWRIDFLOLWDWLQJPRUHDGDSWLYHJRDOIRFXVHG

SV\FKRORJLFDOVWUDWHJLHV .RWHUDHWDO 0DQDJHUVDQGOHDGHUVKDYHKDGVXFFHVVXVLQJ1/3

LQFRDFKLQJFROODERUDWLYHWHDPZRUNFRPPXQLFDWLQJWKHZD\IRUZDUGDQGPRWLYDWLQJRWKHUV

1/3GHYHORSPHQWVUHYHDOHGDFRQYHUJHQFHEHWZHHQNQRZLQJDQGGRLQJSURGXFLQJQRWHZRUWK\

DOOHJDWLRQVRIHQDEOLQJEHKDYLRUDOFKDQJH <HDGRQ/HH <HPP  DJUHHGWKDW1/3LV

DXVHIXOWRROIRUSUREOHPVROYLQJDQGPDQDJLQJFKDQJH.RWHUDHWDO  OLVWHGVRPHDUHDV

ZKHUHRUJDQL]DWLRQVXVHG1/3IRUSUREOHPVROYLQJDQGPDQDJLQJFKDQJHWRDGGUHVV

LQWHUYLHZLQJWHDPEXLOGLQJOHDGHUVKLSVHOIPDQDJHPHQWVHOIDSSUDLVDOSUHVHQWDWLRQDQG

QHJRWLDWLRQFRQFHUQV

1/3FDQEHXVHIXOIRUEXVLQHVVDSSOLFDWLRQVEXWUHVHDUFKSURYHV1/3WREHPRVWKHOSIXO

LQVHOILPSURYHPHQWWKURXJKGHYHORSLQJLQWHUSHUVRQDOVNLOOVVHOIPDQDJHPHQWDQG

FRPPXQLFDWLRQ <HPP 'H5LMN  H[SODLQHGWKDWLWLVPRVWKHOSIXOLQVHOI

LPSURYHPHQWEHFDXVH1/3XVHVDFRFUHDWHGVRFLDOUHDOLW\WRIDFLOLWDWHFKDQJHZKLFKFDQEH

WKHUDSHXWLF:DNH  DJUHHGDQGH[SDQGHGWKDWDSSO\LQJ1/3FDQEHVXEMHFWLYHEDVHGRQ



 

LQGLYLGXDOH[SHULHQFHLQDZD\WKDWXVHVWKHVWUHQJWKVRIDZRUNIRUFHWRHOLFLWWKHPRVWEHQHILWV

1DKDU  QRWHGWKHEHQHILWLVWKDWDSRVLWLYHHQYLURQPHQWIRUOHDUQLQJRFFXUVZKHQXVLQJ

1/37KLVLVEHFDXVHLWDOORZVIRUNQRZOHGJHDQGLQIRUPDWLRQVKDULQJQDWXUDOO\ZKLFKIDFLOLWDWHV

DQDWPRVSKHUHRIWUXVWDQGFRKHVLYHZRUNLQJ7KHUHDUHVL[IDFHVRI1/3LQRUJDQL]DWLRQDO

GHYHORSPHQWSUDFWLFHPHWKRGRORJ\SKLORVRSK\WHFKQRORJ\SURGXFWDQGSURIHVVLRQDOVHUYLFH

:DNH &RKHVLYHILQGLQJVVKRZHGWKDW1/3FRXOGSURGXFHHIIHFWLYHUHVXOWVLQERWK

LQGLYLGXDOVHOILPSURYHPHQWDQGRUJDQL]DWLRQDOLPSURYHPHQW

(PSOR\HH(QJDJHPHQW

7KH(QJDJHG(PSOR\HH(PSOR\HHHQJDJHPHQWLVDSDUDPRXQWFRQFHUQIRU

RUJDQL]DWLRQV:DQJHWDO  H[SODLQHGWKDWZRUNHQJDJHPHQWEHQHILWVERWKWKHHPSOR\HHV

DQGWKHRUJDQL]DWLRQ(QJDJHGZRUNHUVFDQEHWWHUFRSHZLWKWKHGLIILFXOWLHVDQGGHPDQGVRID

MREZKLFKJHQHUDWHVEHWWHUSHUIRUPDQFH$QHQJDJHGZRUNIRUFHLVHVVHQWLDOIRUZRUNSODFH

UHVLOLHQFH/HDGHUVKLSLVDMREUHVRXUFHWKDWFULWLFDOO\LPSDFWVWKHHQYLURQPHQWDQGDIIHFWVZRUN

HQJDJHPHQW :DQJHWDO ,QKLVDUWLFOHRQNH\DWWULEXWHVRIOHDGHUVKLS5HHG  

DJUHHGZLWKWKLVYLHZSRLQWLQVWDWLQJWKDWOHDGHUVIRVWHUDQHQYLURQPHQWRIHQJDJHPHQWZKHQWKH\

KHOSHPSOR\HHVIHHOZDQWHGDQGDSSUHFLDWHG-RKQVRQ  WRRNLWDVWHSEH\RQGOHDGHUVKLS

DQGHODERUDWHGWKDWSHUVRQDOHPSRZHUPHQWFRPPXQLFDWLRQLQQRYDWLRQFRPSDQ\LQWHJULW\D

FDULQJDWPRVSKHUHDQGRSSRUWXQLWLHVIRUJURZWKDQGGHYHORSPHQWDUHWKHGULYHUVRIHQJDJHPHQW

EHFDXVHWKH\LQIOXHQFHKRZDQHPSOR\HHIHHOVWKLQNVDQGDFWV&RWHOQLFDQG7LPEDOLXF  

VLPSOLILHGWKLVE\VD\LQJWKDWZKHQHPSOR\HHVEHOLHYHWKH\DUHIXOILOOLQJWKHLUVRFLDOHPRWLRQDO

DQGPDWHULDOQHHGVHIILFLHQWO\WKLVUHVXOWVLQLQFUHDVLQJHPSOR\HHHQJDJHPHQW

(QJDJHGHPSOR\HHVH[KLELWWKHSDVVLRQDQGHQHUJ\WKDWWKH\GHYRWHWRWKHRUJDQL]DWLRQ

'DYLV 6KHQR\DQG8FKLO  DJUHHGWKDWHQJDJHGHPSOR\HHVDUHSDVVLRQDWHDERXW



 

WKHLUMREVDQGWKDWSDVVLRQH[FHHGVFRPPLWPHQWUHIOHFWHGLQWKHLUEHKDYLRUDQGDFWLRQV6D\

VWD\DQGVWULYHDUHWKHWKUHHEHKDYLRUVRIDQHQJDJHGHPSOR\HHWKDWGULYHRUJDQL]DWLRQ

SHUIRUPDQFH *DQJDL $JUDZDO 6D\LVZKHQDQHPSOR\HHSURPRWHVWKHRUJDQL]DWLRQWR

FROOHDJXHVDQGSRWHQWLDOFOLHQWVRUFDQGLGDWHVVWD\LVOR\DOW\WRWKHRUJDQL]DWLRQDPRQJVW

FRPSHWLWLYHRSWLRQVDQGVWULYHLVWKHPRWLYDWLRQWREROVWHUWKHEXVLQHVVWKURXJKDGGLWLRQDOWLPH

HQHUJ\DQGDFWLYLW\

$QHQJDJHGHPSOR\HHH[KLELWVDFRQWLQXRXVSV\FKRORJLFDOVWDWHRIPLQGWKDWGULYHV

PRWLYDWLRQDFWLYLW\LQGHSHQGHQFHDQGHIIHFWLYHQHVV 0RUHQR .QLJKW3DWWHUVRQDQG

'DZVRQ  GHILQHGDSV\FKRORJLFDOVWDWHRIPLQGDVH[SHULHQFLQJFRJQLWLYHHPRWLRQDODQG

SK\VLFDOLQYROYHPHQWLQZRUNUROHVKDYLQJDVHQVHRIPHDQLQJIHHOLQJSV\FKRORJLFDOO\VDIHDQG

EHLQJDYDLODEOH-LDQJDQG/XR  H[SODLQHGWKDWHQJDJHGHPSOR\HHVH[KLELWDSRVLWLYH

SV\FKRORJLFDOPLQGVHWWKDWWUDQVODWHVWRDVWURQJVHQVHRIGHYRWLRQDQGHQMR\PHQWRIZRUNZLWK

PRUHHIILFLHQF\DQGLQYROYHPHQWZLWKWDVNV+LJKO\HQJDJHGHPSOR\HHVDUHPRUHHQHUJHWLF

KDYHDSRVLWLYHSHUFHSWLRQRIWKHLUMREDQGDUHZLOOLQJWRJRDERYHDQGEH\RQG *XWHUPDQQ

/HKPDQQ%RHU%RUQ 9RHOSHO :DVKLQJWRQ  SDUWLDOO\DJUHHGEXWDGGHGWRWKH

FRQYHUVDWLRQE\VD\LQJWKDWHQJDJHGHPSOR\HHVKDYHDSRVLWLYHSHUFHSWLRQRIWKHLURUJDQL]DWLRQ¶V

HIIHFWLYHQHVVDQGDQDZDUHQHVVRIKRZWKHHQJDJHPHQWGLPHQVLRQVLPSDFWWKDWHIIHFWLYHQHVV

(QJDJHGHPSOR\HHVZRUNKDUGHUDQGVKRZDPRUHSRVLWLYHDWWDFKPHQWWRWKHRUJDQL]DWLRQ

$KPDGHWDO 6WR\DQRYDDQG,OLHY  H[SODLQHGWKDWSRVLWLYHDWWDFKPHQWDQGILUP

FRPPLWPHQWFRPHIURPVHHLQJWKHRUJDQL]DWLRQ¶VVXFFHVVDVWKHLUVXFFHVV

 $FFXUDWHPHDVXUHPHQWRIHQJDJHPHQWFRPHVIURPUHVHDUFKLQJDFRPELQDWLRQRI

HQJDJHPHQWLQWKHZRUNLWVHOIDQGHQJDJHPHQWLQWKHRUJDQL]DWLRQRYHUDOO 6FKQHLGHU 

%ODQNHQVKLS 7KHOHYHORIHQJDJHPHQWUHIHUVWRWKHGHJUHHRIEHKDYLRUDOHPRWLRQDODQG



 

FRJQLWLYHLQYROYHPHQWLQDSRVLWLRQWKHHIIRUWH[HUWHGIRUWKHUROHDQGWKHZRUNUHODWHGDQG

SHUVRQDOLQWHUDFWLRQVZLWKRWKHUVIURPEHLQJLQWKHSRVLWLRQ &HQNFL g]oHOLN $VWXG\

FRQGXFWHGE\:RUNPDQ  VKRZHGQRJHQHUDWLRQDOYDULDWLRQLQHQJDJHPHQWOHYHOEHWZHHQ

%DE\%RRPHUV*HQHUDWLRQ;DQG*HQHUDWLRQ<2UJDQL]DWLRQVIXOILOOWKHLUYLVLRQDQGDFKLHYH

ILQDQFLDOVXFFHVVZKHQWKH\FRPELQHVWURQJOHDGHUVKLSDQGDQHQJDJHGZRUNIRUFH 6DDGHWDO

 $FFRUGLQJWRUHVHDUFKFRQGXFWHGE\:DVKLQJWRQ  WUXVWLQVHQLRUOHDGHUVKLSDQGWKH

SURFHGXUDOMXVWLFHRIWKHRUJDQL]DWLRQKDYHDGLUHFWLPSDFWRQHQJDJHPHQWOHYHOV6KHQR\DQG

8FKLO  DJUHHGWKDWDVLJQLILFDQWFRQQHFWLRQH[LVWVEHWZHHQWKHOHYHORIHQJDJHPHQWDQG

LQWHUQDOSROLF\OHDGHUVKLSDQGRUJDQL]DWLRQDOFOLPDWHEHFDXVHRIKRZWKHVHYDULDEOHVLQIOXHQFH

WKHHPSOR\HHH[SHULHQFH3HU:DVKLQJWRQ  VHQLRUOHDGHUVDUHWKHRQHVWDVNHGZLWK

VROXWLRQVIRULPSURYLQJHPSOR\HHHQJDJHPHQWWRPDLQWDLQSRVLWLYHPRUDOHDQGSURGXFWLYLW\

/HDGHUVJHWWDVNHGZLWKLPSURYLQJHQJDJHPHQWEXWHPSOR\HHVFDQFKDQJHWKHLUSHUVSHFWLYHRQ

ZHDNQHVV7KXVERRVWLQJWKHLUHQJDJHPHQWWKURXJKUHIUDPLQJXVLQJDQ1/3FRQFHSWFDQKHOS

WKHPWUDQVIRUPWKHLUKXPDQSV\FKRORJLFDOIUDPHZRUNE\EXLOGLQJUHODWLRQVKLSVZLWKFRZRUNHUV

UHVSHFWLQJRWKHUVIRFXVLQJRQRWKHUV¶SRVLWLYHVDQGFXOWLYDWLQJVHOIHIILFDF\VHOIHVWHHP

+DPDPRWR.RED\DVKL 6KLUDVDND 

,PSDFWRI(PSOR\HH(QJDJHPHQW7KHUHDUHWZRGLPHQVLRQVRIHQJDJHPHQWWR

PHDVXUHRUJDQL]DWLRQDQGMREHQJDJHPHQW 6KURWU\LD 'KDQGD 7KHHYLGHQFHRI

HQJDJHPHQWH[SDQGVEH\RQGHPSOR\HHEHKDYLRUDQGDFWLRQVWRPDQLIHVWDWLRQWKURXJK

RUJDQL]DWLRQDOUHVXOWV:DVKLQJWRQ  VWDWHGWKDWHPSOR\HHHQJDJHPHQWGLUHFWO\LPSDFWV

LQGLYLGXDODQGRUJDQL]DWLRQDOSHUIRUPDQFH.HUQV  WRRNLWDVWHSIXUWKHUWRFODLPIRVWHULQJ

HQJDJHPHQWSURGXFHVSRVLWLYHUHVXOWVDFURVVDOOIXQFWLRQDODUHDVDQGRUJDQL]DWLRQOHYHOV;L

=KDRDQG;X  DJUHHGWKDWHPSOR\HHVZKRSHUIRUPGHWDLOHGWDVNVRUGHUVDQGSODQVKDYHD



 

FHQWUDOUROHLQDGYDQFLQJDQRUJDQL]DWLRQ¶VSHUIRUPDQFH(PSOR\HHHQJDJHPHQWSRVLWLYHO\

LPSDFWVFULWLFDORUJDQL]DWLRQDORXWFRPHVDQGHPSOR\HHSV\FKRORJLFDOZHOOEHLQJ GX3OHVVLV 

%RVKRII 

$QHQJDJHGZRUNIRUFHEHQHILWVDQRUJDQL]DWLRQLQPDQ\ZD\V2UJDQL]DWLRQVZLWKD

FRPPLWWHGDQGSRVLWLYHZRUNIRUFHKDYHDFRPSHWLWLYHDGYDQWDJH &OD\SRRO /L  

H[SODLQHGWKHFRPSHWLWLYHDGYDQWDJHDVFRPSDQLHVZLWKKLJKHQJDJHPHQWDUHEHWWHUDEOHWR

ZLWKVWDQGDQHFRQRPLFFULVLVDQGKDYHKLJKHUVKDUHKROGHUUHWXUQV6KHQR\DQG8FKLO  

SURYLGHGWKHGHWDLOVDVHPSOR\HHHQJDJHPHQWGLUHFWO\LQIOXHQFHVLPSURYHGILQDQFLDOV

HIILFLHQFLHVSURGXFWLYLW\DQGVWDELOLW\WKURXJKLPSURYHGFXVWRPHUVDWLVIDFWLRQ+DOH  

SURYLGHGDVLPLODUVWDQFHWKDWDQHQJDJHGZRUNIRUFHFUHDWHVDGHFUHDVHLQDEVHQWHHLVPDQG

WXUQRYHUDQGDQLQFUHDVHLQVDIHW\FXVWRPHUVDWLVIDFWLRQSURGXFWLYLW\DQGSURILWDELOLW\$Q

HQJDJHGZRUNIRUFHDOVRDWWUDFWVRWKHUVWRWKHRUJDQL]DWLRQ *UDQW %H\RQGWKHSRVLWLYH

LQWHUQDODVSHFWVDWWUDFWLQJRWKHUVWRWKHRUJDQL]DWLRQLVDQH[WHUQDOVWUDWHJ\WKDWFDQLPSURYH

VXVWDLQDELOLW\

 'DYLV  LQIRUPHGWKDWHPSOR\HHHQJDJHPHQWOHYHOGHWHUPLQHVDQRUJDQL]DWLRQ¶V

UHWHQWLRQDQGJRDODFKLHYHPHQW5D]DDQG1DGHHP  SDUWLDOO\DJUHHGWKURXJKWKHLUVWDQFH

WKDWHPSOR\HHHQJDJHPHQWLVRQHPHGLDWRUEHWZHHQWKHSUHGLFWRUVRISHUIRUPDQFHUHODWHG

UHZDUGVFRPPXQLFDWLRQGHFLVLRQPDNLQJMREVDWLVIDFWLRQRXWFRPHVDQGWXUQRYHULQWHQWLRQV

$KPDGHWDO  VXSSRUWHG'DYLVE\VD\LQJWKDWZKHQDQRUJDQL]DWLRQRIIHUVDGHTXDWH

VXSSRUWWRLWVHPSOR\HHVWKHHPSOR\HHVUHVSRQGWKURXJKGHYRWLRQDQGFRPPLWPHQW&OD\SRRO

 HPSKDVL]HGWKDWHPSOR\HHVKDYHWKHSRZHUWRPDNHDQRUJDQL]DWLRQVXFFHHGRUIDLO

2UJDQL]DWLRQVQHHGWRWDNHHQJDJHPHQWVHULRXVO\LIWKH\ZDQWWREHVXFFHVVIXO6RFLDOH[FKDQJH



 

WKHRU\VXSSRUWVWKHFRQFHSWRILQYHVWLQJLQHPSOR\HHVIRULQFUHDVHGHQJDJHPHQWDQG

RUJDQL]DWLRQDOEHQHILW .KRUHYD 

7KH'LVHQJDJHPHQW3UREOHP0LOKHP0XGDDQG.KDOLO  LPSUHVVHGWKHEURDG

UHDFKRIHPSOR\HHHQJDJHPHQWE\UHYHDOLQJWKDWWKHOHYHORIHPSOR\HHHQJDJHPHQWLPSDFWV

LQGLYLGXDORUJDQL]DWLRQDODQGPDFURHFRQRPLFOHYHOV7KXVGLVHQJDJHGHPSOR\HHVQHJDWLYHO\

LPSDFWWKHVHDUHDV:RUNPDQ  SURYLGHGWKHKLVWRULFDOFRQWH[WWKDWWKHWRSLFRI

GLVHQJDJHPHQWVWDUWHGZLWKDUHYLHZRIHQJDJHPHQWDQGGLVHQJDJHPHQWLQ.DKQ¶VHPSLULFDO

HQJDJHPHQWVWXGLHV,QKLVDUWLFOH*UDQW  UHYHDOHGWKHZLGHVSUHDGSUREOHPDVDFFRUGLQJ

WRUHVHDUFKRIOHDGHUVNQRZWKDWHQJDJHPHQWLVHVVHQWLDOIRUVXFFHVVEXWGRQRWXQGHUVWDQG

KRZWRWDNHDSSURSULDWHDFWLRQWRLPSOHPHQWVWUDWHJLHVQHHGHGIRUHQJDJHPHQW7KHUHDUHQRZ

GHFDGHVRIWRSLFDZDUHQHVVDQGYDULRXVPHDVXUHPHQWWRROVEXWWKHUHLVQRFKDQJHGULYHQE\WKH

FROOHFWLRQRIVXUYH\VDORQH 6KURWU\LD 'KDQGD 7KHODFNRIFKDQJHLVZK\WKHSUREOHP

VWLOOH[LVWVZKLFKSUHVHQWVWKHRSSRUWXQLW\WRLPSURYHOHDGHUVKLSWUDLQLQJSURJUDPVQDPHO\

LPSOHPHQWLQJ1/3

$FFRUGLQJWR6KHQR\DQG8FKLO  RIRUJDQL]DWLRQVH[SHULHQFHFKDOOHQJHVZLWK

HQJDJHPHQW%DWHVDQG:HLJKDUW¶V  UHVHDUFKUHYLHZHGWKHUHVXOWVRI*DOOXS¶V

$PHULFDQ:RUNSODFH6XUYH\RIHPSOR\HHVWKDWUHYHDOHGWKDWOHVVWKDQRI

HPSOR\HHVFODVVLI\DVHQJDJHGLQWKH8QLWHG6WDWHVDQG&DQDGDZLWKORZHUQXPEHUVLQRWKHU

SDUWVRIWKHZRUOG6KURWU\LDDQG'KDQGD  WRRNWKHGDWDDVWHSIXUWKHULQVWDWLQJWKDWD

JOREDOHQJDJHPHQWVXUYH\UHYHDOHGWKDWRQHLQWKUHHHPSOR\HHVGHPRQVWUDWHHQJDJHPHQW

ZRUOGZLGH

7KHSDVWWHQ\HDUVUHYHDOVDGHHSHQLQJGLVHQJDJHPHQWHYHQZLWKHQJDJHPHQWSOD\LQJD

FUXFLDOUROHLQDQRUJDQL]DWLRQ¶VVXFFHVVDQGFRPSHWLWLYHDGYDQWDJH /DG\VKHZVN\ 7DSOLQ



 

 0LOKHPHWDO  UHLWHUDWHGWKHSUREOHPZLWKORZHQJDJHPHQWEHFDXVHORZ

HQJDJHPHQWSHUFHQWDJHVPHDQZDVWHGDQGXQWDSSHGWDOHQWDQGWKHGUDLQLQJRIFRPSDQ\

UHVRXUFHV(PSOR\HHHQJDJHPHQWLPSDFWVDOOOHYHOVRIDQRUJDQL]DWLRQVRZKHQHQJDJHPHQWLV

ORZLWKDVDVLJQLILFDQWGHWULPHQWDOLPSDFWRQWKHRUJDQL]DWLRQ

%DUPRUH  PDGHDVHULRXVSRLQWWKDWWKHFRVWRIGLVHQJDJHPHQWFDQEHHPSOR\HH

KDUP ZKHQDQLQMXU\RFFXUVGXHWRQHJOLJHQFH RURUJDQL]DWLRQDOKDUP%H\RQGSK\VLFDOKDUPLV

ILQDQFLDOKDUP-DPDQ  H[SODLQVWKDWELOOLRQLVORVWDQQXDOO\LQUHYHQXHIRU86

RUJDQL]DWLRQVGXHWRGLVHQJDJHGHPSOR\HHV+DOH  GHWDLOHGRUJDQL]DWLRQDOKDUPDV

SURILWDELOLW\LPSDFWHGE\SURGXFWLYLW\WXUQRYHUZRUNHUUHODWHGFRQIOLFWDQGHQJDJHPHQW

:DVKLQJWRQ  H[SDQGHGRQWKHRUJDQL]DWLRQDOKDUPWRGHILQHDVWXUQRYHUSURILWDELOLW\

GHFOLQHUHGXFHGUHJDUGIRUVDIHW\GHFUHDVHGRUJDQL]DWLRQDOFRPPLWPHQWDQGORZPRWLYDWLRQ

5HHG  WRXFKHGRQWKHHPSOR\HHSHUVSHFWLYHLQVD\LQJWKDWZKHQHPSOR\HHVGRQRWIHHO

UHFRJQL]HGDQGDSSUHFLDWHGWKH\EHJLQRQO\PHHWLQJPLQLPXPUHTXLUHPHQWVZKLFKGHWUDFWV

IURPWKHRUJDQL]DWLRQ¶VPLVVLRQYLVLRQYDOXHVJRDOVDQGSULRULWLHV%DUPRUH  SUHVHQWHG

WKHHPSOR\HHSHUVSHFWLYH¶VEHKDYLRUDORXWFRPHVLQWKDWGLVHQJDJHGHPSOR\HHVDUHVNHSWLFDO

DYRLGDQWFRJQLWLYHO\GLVWDQWXQSURGXFWLYHDQGKDYHKLJKDEVHQWHHUDWHV$GLVHQJDJHG

HPSOR\HHVKRZVWKHLUGLVSOHDVXUHDQGGLVVDWLVIDFWLRQZLWKRWKHUV¶DFKLHYHPHQWVWRZKHUHLWFDQ

ZHDNHQWKHRUJDQL]DWLRQ 1XJURKR $FFRUGLQJWR,PUDQDQG.KDWWDN  HPSOR\HHV

ZKRH[KLELWDORZZRUNHQJDJHPHQWOHYHODUHPRUHOLNHO\WRTXLW5D\  HPSKDVL]HGWKDW

WKHELOOLRQVRIGROODUVLQORVWSURGXFWLYLW\HYHU\\HDUVKRXOGSUHVVXUHRUJDQL]DWLRQVWRLQQRYDWH

IRULPSURYLQJHQJDJHPHQWDQGLGHQWLI\WKHRULJLQVRIGLVHQJDJHPHQW:DQJHWDO  DJUHHG

WKDWRUJDQL]DWLRQVVKRXOGILQGZD\VWRLPSURYHHPSOR\HHV¶SRVLWLYHDIIHFWDVDZD\WRDGGUHVV



 

GLVHQJDJHPHQWDQGDGGWKDWLWLQFUHDVHVVDWLVIDFWLRQLPSURYHVZRUNHQJDJHPHQWDQGOHDGVWR

LPSURYHGRUJDQL]DWLRQDOHIIHFWLYHQHVV

'LVHQJDJHPHQWEXUGHQVRUJDQL]DWLRQVVROHDGHUVQHHGWRXQGHUVWDQGWKHFXUUHQW

RUJDQL]DWLRQDOHQYLURQPHQWDQGDVVHVVHQJDJHPHQWJRDOV %DUPRUH '\H  DJUHHG

WKDWGLVHQJDJHPHQWLVWKHOHDGHUVKLS¶VUHVSRQVLELOLW\EHFDXVHGLVHQJDJHPHQWLVWKHV\PSWRPRID

SUREOHPDQGOHDGHUVQHHGWRLGHQWLI\WKHSUREOHPDQGDGGUHVVLWZLWKWKHFRUUHFWVROXWLRQ

/HDGHUVRIWHQODFNVWUDWHJLHVWRRYHUFRPHGLVHQJDJHPHQW *UDQW 7KHGLVHQJDJHPHQW

SUREOHPDQGODFNRIOHDGHUVWUDWHJLHVVXSSRUWWKHQHHGIRUOHDGHUVKLSWUDLQLQJRQKRZWRLPSURYH

HQJDJHPHQW

/HDGHUVKLSDQG2UJDQL]DWLRQ(IIHFWLYHQHVV

/HDGHUVKLS/HYHO/HDGHUVKLSVKRXOGLQVSLUHRWKHUVUDLVLQJVXSSRUWWRVWHHUWKH

RUJDQL]DWLRQLQWKHGHVLUHGGLUHFWLRQ 6DGOHU*LEVRQ 5H\VHQ ,RQHVFXDQG%ROFDV

 LQIRUPHGWKDWOHDGHUVKLSLVSDUWRIDOOWKUHHRUJDQL]DWLRQDOOHYHOV WHDPVWUDWHJLFDQG

RSHUDWLRQDO DQGLVQHFHVVDU\IRUEXLOGLQJDQGGHYHORSLQJDFXOWXUHDQGDQRUJDQL]DWLRQDOFKDQJH

SURFHVV+ROW+DOODQG*LOOH\  SURYLGHGWKDWDOOOHYHOVRIOHDGHUVKLSLQIOXHQFHDQ

RUJDQL]DWLRQ¶VSHUIRUPDQFHVRFRPSDQLHVQHHGWRFRQVLGHUOHDGHUHIIHFWLYHQHVVDWDOOOHYHOV

7KRXJKDOOOHDGHUVKLSOHYHOVKDYHLQIOXHQFHWKHWRSOHYHOOHDGHUVRIWHQKDYHDPRUHVXEVWDQWLDO

LPSDFW$FFRUGLQJWR=DKDULD  RUJDQL]DWLRQDOVXFFHVVFRPHVZKHQWRSOHYHOOHDGHUV

UHPRYHWKHULVNIRUHPSOR\HHXQSURGXFWLYLW\([HFXWLYHOHDGHUVKLSGHYHORSPHQWSURJUDPVDOORZ

RUJDQL]DWLRQVWRH[SHULHQFHSRVLWLYHWUDQVIRUPDWLRQWKURXJKLGHQWLILFDWLRQHTXLSPHQWDQG

XQOHDVKLQJOHDGHUV *ULGHU/RIJUHQ :HLFNHO 

%DWHVDQG:HLJKDUW  UHPLQGHGWKDWDOOOHDGHUVKDYHERWKVWUHQJWKVDQGDUHDVIRU

GHYHORSPHQW&DQJHPL%XUFKDQG0LOOHU  SUHVHQWHGDQRSSRUWXQLW\QRWLQJWKDWRIWHQ



 

OHDGHUVZRUNRQWHDPVZLWKWKHDVVXPSWLRQWKDWWKH\DUHFDSDEOHRIFRPSOHWLQJWKHMREDQGKDYH

DFDSDFLW\IRUJURZWKEXWIHZSHUIRUPDWDQRSWLPXPOHYHOZLWKRXWVRPHRSSRUWXQLW\IRUJURZWK

DQGDFFOLPDWLRQWRWKHUROHVW\OHH[SHFWDWLRQVDQGFXOWXUHRIWKHWHDP7KHJRRGQHZVLVWKDW

OHDGHUVDWDOOOHYHOVFDQUHFHLYHWUDLQLQJ7KLVWUDLQLQJFRPELQHGZLWKDQHIIHFWLYHOHDGHUVKLS

VW\OHFDQSRVLWLYHO\LQIOXHQFHWKHRUJDQL]DWLRQ 6DGOHUHWDO &XDGUD3HUDOWD9HORVR

%HVLR,ULEDUHQDQG3LQWR  HPSKDVL]HGDQHHGIRUVRFLDOVNLOOVWUDLQLQJPRUHIRULPPHGLDWH

PDQDJHUVWKDQH[HFXWLYHOHDGHUVKLSEHFDXVHWKHVHPDQDJHUVKDYHGLUHFWLQWHUDFWLRQVZLWKWKHLU

IROORZHUV&RQVLGHULQJHQJDJHPHQWJRDOVLVHVVHQWLDOZKHQGHVLJQLQJWUDLQLQJSURJUDPVIRU

PDQDJHUVDWDOOOHYHOV $QWRQ\ 7KHDPRXQWRIUHVSRQVLELOLW\SODFHGRQOHDGHUV

QHFHVVLWDWHVWUDLQLQJWRHQVXUHWKH\FDQSHUIRUPDWWKHOHYHOH[SHFWHG

/HDGHUVKLSDQG(QJDJHPHQW$GLUHFWFRUUHODWLRQH[LVWVEHWZHHQOHDGHUVKLSSUDFWLFHV

DQGHPSOR\HHVDWLVIDFWLRQ 'DYLV *LOSLQ-DFNVRQHWDO  VXSSRUWHG'DYLV¶V

FRQQHFWLRQEHWZHHQOHDGHUVKLSDQGHQJDJHPHQWDQGH[SODLQHGWKDWHDUO\EHOLHIVZHUHWKDW

SHUVRQDODWWLWXGHVDQGPRWLYDWLRQFDXVHGHQJDJHPHQWEXWFXUUHQWXQGHUVWDQGLQJLQFOXGHVWKHUROH

OHDGHUVKLSSOD\VLQPRWLYDWLQJDQGHQJDJLQJHPSOR\HHV+DOH  DJUHHGWKDWWKHTXDOLW\RI

ZRUNLQJUHODWLRQVKLSVEHWZHHQVXSHUYLVRUVDQGVXERUGLQDWHVSRVLWLYHO\LPSDFWVMREVDWLVIDFWLRQ

ZKLFKLPSURYHVHPSOR\HHHQJDJHPHQWVXSSRUWLQJWKHFRQFHSWWKDWWKHUHODWLRQVKLSEHWZHHQ

VXSHUYLVRUVDQGVXERUGLQDWHVUHODWHVWRDQHPSOR\HH¶VOHYHORIHQJDJHPHQW(PSOR\HH

HQJDJHPHQWFRQQHFWVWROHDGHUVKLS¶VDELOLW\WRFODULI\GLUHFWLRQLQVSLUHZLWKDYLVLRQDOLJQWRD

PLVVLRQDQGJXLGHSXUSRVHIXODFWLRQ %DWHV :HLJKDUW $FFRUGLQJWRGX3OHVVLVDQG

%RVKRII  OHDGHUEHKDYLRUVFDQFUHDWHXSWRRIWKHYDULDQFHLQHQJDJHPHQWVFRUHV$

*DOOXSVWXG\IRXQGWKDWRISHRSOHZKROHIWWKHLUMREVQHDUO\OHIWGXHWREDG

PDQDJHPHQW *DQGROIL 6WRQH .HUQV  EHOLHYHGWKDWWKHDFWLRQVOHDGHUVWDNHFDQ



 

SRVLWLYHO\RUQHJDWLYHO\LPSDFWWKHLUZHOOEHLQJDQGRWKHUV ZHOOEHLQJDWZRUN:HOOEHLQJ

LQFOXGHVSRVLWLYHHPRWLRQHQJDJHPHQWUHODWLRQVKLSVPHDQLQJDQGDFFRPSOLVKPHQWVDOORI

ZKLFKDUHLQWHUDFWLYH$KLJKHQJDJHPHQWOHYHOKDSSHQVZKHQOHDGHUVVXSSRUWHQFRXUDJHDQG

GHYHORSWKHLUHPSOR\HHV GX3OHVVLV %RVKRII 

7KHFRPPXQLFDWLRQEHWZHHQOHDGHUDQGHPSOR\HHLVHVVHQWLDOLQIRUPLQJSURGXFWLYH

ZRUNLQJUHODWLRQVKLSVZKLFKLVLPSRUWDQWIRUGLVWLQJXLVKLQJWKHVLJQVRIGLVHQJDJHPHQWDQG

GLVFRYHULQJZKDWZRXOGPDNHHPSOR\HHVPRUHHQJDJHG 5D]D 1DGHHP ,PUDQDQG

.KDWWDN  VKDUHGDVLPLODUVWDQFHWR'DYLVEXWH[SDQGHGE\VD\LQJWKDWDFRQQHFWLRQH[LVWV

EHWZHHQVXSHUYLVRUJXLGDQFHDQGEHKDYLRURXWFRPHV7KHEHKDYLRURXWFRPHLVDUHVXOWRID

OHDGHU¶VLQIOXHQFHRQHPSOR\HHHQJDJHPHQW7KHSULPDU\UHDVRQIRUWXUQRYHULVGLVVDWLVIDFWLRQLQ

WKHOHDGHU¶VSHUFHLYHGEHKDYLRUDQGWKHHPSOR\HHV 'DYLV .HUQV  SURYLGHGLQVLJKWV

LQWRG\VIXQFWLRQDOOHDGHUEHKDYLRUVZKLFKUDQJHIURPDQQR\LQJWRWUDXPDWL]LQJDQGQHJDWLYHO\

LPSDFWLQJSHUIRUPDQFHWKURXJKJHQHUDOKHDOWKDQ[LHW\EXUQRXWDQGWXUQRYHU)RUOHDGHUVWR

EHKDYHDSSURSULDWHO\DQGGHYHORSUHODWLRQVKLSVWKH\QHHGWRSRVVHVVVHOIDZDUHQHVVRI

SHUFHSWLRQVFRQFHUQLQJWKHLUGHFLVLRQVDQGDFWLRQVE\WKHLUSHHUVDQGVXERUGLQDWHV 5XL]

+DPOLQ &DULRQL 

$VXFFHVVIXOOHDGHU¶VPDQDJHPHQWDSSURDFKLVYLWDOIRULQFUHDVLQJHPSOR\HHHQJDJHPHQW

6WR\DQRYD ,OLHY $IRXQGDWLRQRIWUXVWPXVWVXSSRUWWKHDSSURDFK<XUL$NLDWH¶V

 VWXG\RQHPSOR\HHWUXVWWRZDUGPDQDJHPHQWIRXQGWKDWWKHOHYHORIWUXVWDQHPSOR\HHKDV

IRUPDQDJHPHQWGLUHFWO\LPSDFWVWKHLUOHYHORIMREVDWLVIDFWLRQDQGWKHLUFRPPLWPHQWWRWKH

RUJDQL]DWLRQ-LDQJDQG/XR  DJUHHGWKDWHPSOR\HHLQWHUDFWLRQZLWKWKHLUOHDGHUV

GHWHUPLQHVZKHWKHURUQRWWKH\WUXVWWKHLURUJDQL]DWLRQ)RUDYLVLRQWREHVXFFHVVIXOHPSOR\HHV

QHHGWRWUXVWWKHOHDGHUDQGXQGHUVWDQGWKH³ZK\´EHKLQGDYLVLRQ .RHVWHUV6KHD 6DWLDQL



 

 0RUHWKDQNQRZLQJWKDWDJRRGOHDGHUDQGHPSOR\HHUHODWLRQVKLSLVQHFHVVDU\LV

FRQVLGHULQJKRZWRIDFLOLWDWHWKDWUHODWLRQVKLSWRFUHDWHHQJDJHPHQW7KHOHDGHUHPSOR\HH

UHODWLRQVKLSHIIHFWLYHLQWHUQDOFRPPXQLFDWLRQDQGIHHGEDFNDQGSURIHVVLRQDOWUDLQLQJDQG

GHYHORSPHQWDORQJZLWKFRPSHQVDWLRQDZDUGVEHQHILWVDQGLQFHQWLYHVDUHWKHQHFHVVDU\

HOHPHQWVOHDGHUVQHHGWRFRQVLGHUIRUHQJDJHPHQW *UDQW 

7KHHQJDJHPHQWMRXUQH\VWDUWVZLWKWKHRUJDQL]DWLRQ¶VOHDGHUVKLSDQGJHWVWUDQVIHUUHG

WKURXJKHPSOR\HHVWHFKQRORJ\SURFHVVHVDQGRUJDQL]DWLRQSURJUDPV $QWRQ\ 

$FFRUGLQJWR0RUHQR  HQJDJHPHQWUHTXLUHVDFRPELQHGXQGHUVWDQGLQJRILWVYDOXHE\WKH

LQGLYLGXDOOHDGHUDQGRUJDQL]DWLRQ6KHQR\DQG8FKLO  DGGHGWRWKHRUJDQL]DWLRQDO

HOHPHQWWKDWHQJDJHPHQWLVWKHUHVXOWRIDKHDOWK\RUJDQL]DWLRQDOFXOWXUHNH\WRRUJDQL]DWLRQDO

SHUIRUPDQFH%DUPRUH  SXWWKHUHVSRQVLELOLW\RQWKHRUJDQL]DWLRQDVDQHHGH[LVWVIRU

RUJDQL]DWLRQVWREHDZDUHRIWKHLUHPSOR\HHSHUFHSWLRQVVRWKDWWKH\FDQXVHWKHLQVLJKWVIRU

RUJDQL]DWLRQDOHQJDJHPHQWVWUDWHJLHV

*UHHQ  FDXWLRQHGWKDWVWUDWHJLHVWKDWGRQRWHQJDJHHPSOR\HHVFRXOGFUHDWHDQ

DGYHUVHUHDFWLRQVRPDQDJHUVVKRXOGEHNQRZOHGJHDEOHDERXWHQJDJHPHQWHIIHFWLYHOHDGHUVKLS

VWUDWHJLHVWKDWGHYHORSSROLFLHVDQGSURFHGXUHV$FOHDUFRQQHFWLRQH[LVWVEHWZHHQDOHDGHU¶V

VWUDWHJ\DQGWKHHQJDJHPHQWUHVSRQVH7KHGLIIHUHQFHEHWZHHQDQDYHUDJHDQGDKLJKO\HQJDJHG

RUJDQL]DWLRQFRPHVGRZQWROHDGHUVKLSWDOHQW 0LOKHPHWDO 3DUU/DQ]DDQG%HUQWKDO

 HODERUDWHGWKDWWDOHQWHGOHDGHUVRYHUFRPHRUJDQL]DWLRQDOFKDOOHQJHVE\JXLGLQJ

HPSOR\HHVWRZDUGVXFFHVVWKURXJKLQIOXHQFLQJEHKDYLRU1/3LVDWRROFHQWHUHGDURXQG

LQIOXHQFLQJEHKDYLRU7KHUHDUHRSSRUWXQLWLHVIRU1/3WRGHYHORSOHDGHUVKLSWDOHQWZLWKWKH

SXUSRVHRIEHWWHULQIOXHQFLQJHPSOR\HHV1/3NQRZQWRSURGXFHSRVLWLYHLQIOXHQFHLVD

SRWHQWLDOVWUDWHJ\WKDWOHDGHUVFDQHPSOR\WREXLOGWUXVWDQGFRPPXQLFDWHPRUHHIIHFWLYHO\



 

0DQDJHPHQWKDVWKHUHVSRQVLELOLW\WRIRFXVRQPHWKRGVIRUHQKDQFLQJWKHDVSHFWVRIWKHMREWKDW

ZLOOFDXVHHPSOR\HHVWRIHHOGHGLFDWHGHQHUJHWLFDQGHQJDJHG GX3OHVVLV %RVKRII 

.HUQV  DJUHHGWKDWPDQDJHPHQWIXOILOOLQJWKLVUHVSRQVLELOLW\KDVDSRVLWLYHLPSDFWDQGWKDW

OHDGHUVZKRHIIHFWLYHO\IDFLOLWDWHHQJDJHPHQWJHQHUDWHLQFUHDVHGOHYHOVRIZHOOEHLQJLPSURYHG

UHWXUQRQLQYHVWPHQWDQGHQKDQFHGFXVWRPHUOR\DOW\

(IIHFWLYH/HDGHUVKLS&KDUDFWHULVWLFV,QHIIHFWLYHOHDGHUVKLSFDQFDXVHGHYDVWDWLQJ

LPSDFWVRQSHRSOHRUJDQL]DWLRQVFRPPXQLWLHVDQGHYHQHQWLUHVRFLHWLHV *DQGROIL 6WRQH

 $SSUHFLDWLQJZKDWPDNHVDOHDGHUHIIHFWLYHVWDUWVZLWKFRPSUHKHQGLQJOHDGHUVKLSDQGWKH

UROHLWSOD\V5DYLQGUDQDWK  GHILQHGOHDGHUVKLSDVWKHVNLOOVDELOLWLHVDQGLQIOXHQFHD

OHDGHUKDVRQPRWLYDWLQJRWKHUWKRXJKWVRUDFWLRQVWRGRVRPHWKLQJWKH\ZRXOGQRWRWKHUZLVHGR

/DUVVRQ  SURYLGHGWKDWWKHSXUSRVHRIOHDGHUVKLSLVIRUPDQDJHUVWRLQIOXHQFHDQ

RUJDQL]DWLRQWKURXJKGLUHFWEHKDYLRUZLWKVXERUGLQDWHVRULQGLUHFWO\WKURXJKPDNLQJGHFLVLRQV

WKDWVKDSHWKHZRUNLQJHQYLURQPHQW$FFRUGLQJWR.RHVWHUVHWDO  OHDGHUVKLSLVDERXW

VKDULQJNQRZOHGJHDQGGLUHFWLRQWRKHOSLQJRWKHUVUHDFKWKHLUSRWHQWLDO

1XJURKR  GHILQHGDOHDGHUDVRQHZKRFDQHQFRXUDJHDQGKDUPRQL]HVXERUGLQDWH¶V

QHHGVZLWKRUJDQL]DWLRQDOQHHGV6HFXUHOHDGHUVIRVWHUDFXOWXUHWKDWHQDEOHVHQHUJHWLFSRZHUIXO

WHDPVWRVSXUWKHRUJDQL]DWLRQIRUZDUG .RHVWHUVHWDO 6WUDWHJLVW&\QWKLD*DYLQ  

DGGHGWKDWOHDGHUVDUHLQIOXHQWLDOLQEXIIHULQJHQYLURQPHQWDOLPSDFWLQQRYDWLQJDQGPDQDJLQJ

FKDQJH.UDJWDQG*XHQWHU  IXUWKHUHODERUDWHGWRVD\OHDGHUVZLWKDVWURQJOHDGHUVKLS

LGHQWLW\DUHEHWWHUDEOHWRPRWLYDWHRWKHUVWRHQJDJHZLWKOHDGHUVKLSZKLFKWUDQVIHUVOHDUQHG

NQRZOHGJHDQGVNLOOVLQWRRUJDQL]DWLRQDOSHUIRUPDQFH/HDGHUVGLUHFWO\LPSDFWRUJDQL]DWLRQDO

SHUIRUPDQFH



 

,RQHVFXDQG%ROFDV  SURYLGHGHYLGHQFHRIHIIHFWLYHOHDGHUVKLSDVLPSURYHG

RUJDQL]DWLRQDOGHYHORSPHQWSURFHVVHVDQGDFWLYLWLHV$GLJX]HO  VKDUHGDGLIIHUHQW

SHUVSHFWLYHEHOLHYLQJWKDWXQGHUVWDQGLQJDQGLQFOXGLQJHPSOR\HHVDQGWKHLUFRPPLWPHQWWR

HQVXULQJREMHFWLYHDFKLHYHPHQWGHWHUPLQHVDOHDGHU¶VHIIHFWLYHQHVV1RWHYHU\RQHLQD

PDQDJHPHQWSRVLWLRQSRVVHVVHVWKHVNLOOVDQGFKDUDFWHULVWLFVQHHGHGWREHDQHIIHFWLYHOHDGHU

3DUUHWDO  H[SODLQHGWKDWDOHDGHU¶VHIIHFWLYHQHVVGHSHQGVRQWKHLUFKDUDFWHULVWLFVDQG

SHUVRQDOLW\WUDLWV$GLJX]HO  SURYLGHGFRQWH[WE\VD\LQJWKDWDOHDGHU¶VDELOLW\WRXVH

SHUVRQDOLQIOXHQFHDELOLWLHVDQGVNLOOVIRUJRDODQGREMHFWLYHDFKLHYHPHQWGHILQHVOHDGHU

HIIHFWLYHQHVV

6XIILFLHQWOHDGHUVKLSDELOLW\DQGVNLOOVEUHDNGRZQLQWRWUDLWVDQGFKDUDFWHULVWLFV.RHVWHUV

HWDO  VWDWHGWKDWKRQHVW\DQGEHLQJIRUZDUGWKLQNLQJDUHDOHDGHU¶VPRVWLPSRUWDQWWUDLWV

6DGOHUHWDO  VXJJHVWHGWKDWRQHRIWKHPRVWLPSRUWDQWOHDGHUVKLSFKDUDFWHULVWLFVLVKDYLQJ

DYLVLRQIRUWKHIXWXUHDQGDSODQWRJHWWKHUH&HQNFLDQGg]oHOLN  SURYLGHGDGGLWLRQDO

GHWDLOVRQFKDUDFWHULVWLFVWKDWLQFOXGHGWKHLPSRUWDQFHRIFOHDUFRPPXQLFDWLRQ7KLVLQFOXGHV

SURYLGLQJDOOWKHMREGHWDLOVDQGDKDQGVRQDSSURDFKWRSUREOHPVROYLQJ5XL]HWDO  

GHVFULEHGVRPHSHUFHLYHGHIIHFWLYHOHDGHUVKLSFKDUDFWHULVWLFVWKDWLQFOXGHEHLQJVXSSRUWLYH

DSSURDFKDEOHFROODERUDWLYHFRQVLGHUDWHPRWLYDWLQJLQYROYHGWKRXJKWIXOJRRGGHFLVLRQ

PDNHUVIDLUFRPPXQLFDWLYHDQGVHUYHDVDQH[DPSOH=DKDULD  SURYLGHGPRUHFODLPLQJ

WKDWHIIHFWLYHOHDGHUVKDYHLQWHJULW\YDOXHWHDPVHOIZRUWKDQGKDUGZRUNDQGFUHDWHDFXOWXUH

EDVHGRQFROODERUDWLRQ/HDGHUVZLWKWKHVHHIIHFWLYHWUDLWVDQGFKDUDFWHULVWLFVJHQHUDWHSRVLWLYH

LPSDFWVRQWKHRUJDQL]DWLRQ:KHQOHDGHUVDFWLYHO\LQYROYHHPSOR\HHVLQDFFRPSOLVKLQJWDVNV

WKLVUHVXOWVLQLQFUHDVHGSURGXFWLYLW\DQGLPSURYHGHQJDJHPHQW %DWHV :HLJKDUW 



 

2UJDQL]DWLRQVEHQHILWIURPHQJDJHGHQWKXVLDVWLFHPSOR\HHVZKHQOHDGHUVVKDUHLGHDVDQGFUHGLW

IRVWHULQJDZRUNFXOWXUHZKHUHSRZHUIXOWHDPVWKULYH .RHVWHUVHWDO 

6SHFLILFOHDGHUVKLSFKDUDFWHULVWLFVKDYHDQLQIOXHQWLDOLPSDFWRQLPSURYLQJOHDGHUVKLS

HIIHFWLYHQHVVWKURXJKDSRVLWLYHHIIHFWRQRWKHU¶VRUJDQL]DWLRQDOJRDODFKLHYHPHQW $O$EGRXOL

 ,QWHOOLJHQFHVSHFLILFDOO\HPRWLRQDOLQWHOOLJHQFHLVRQHRIWKRVHVSHFLILFFKDUDFWHULVWLFV

0DOLN  H[SODLQHGWKDWLQWHOOLJHQFHJRHVEH\RQGPHQWDODELOLW\DQGDVLQJXODUSHUVSHFWLYH

DQGFRQVLVWVRIVHYHQLQGHSHQGHQWIDFWRUVVSDWLDOPXVLFDOOLQJXLVWLFORJLFDOPDWKHPDWLFDO

ERGLO\NLQHVWKHWLFLQWUDSHUVRQDODQGLQWHUSHUVRQDO6FURJJLQV  SURYLGHGLQVLJKWLQWR

HPRWLRQDOLQWHOOLJHQFHVSHFLILFDOO\VD\LQJWKDWLWFDQEUHDNGRZQLQWRWKHVXEJURXSVHPRWLRQDO

VHOIUHIOHFWLRQFRQIOLFWPDQDJHPHQWDQGLQWHUSHUVRQDOFRPPXQLFDWLRQ(PRWLRQDOLQWHOOLJHQFH

VKDUHVILYHFRPSHWHQFLHVVHOIDZDUHQHVVVHOIUHJXODWLRQPRWLYDWLRQHPSDWK\DQGVRFLDOVNLOOV

0DOLN &RWHOQLFDQG7LPEDOLXF  GHILQHGHPRWLRQDOO\LQWHOOLJHQWOHDGHUVDVOHDGHUV

ZKRKDYHDJUHDWHUSHUFHSWLRQRIFULWLFDOGHFLVLRQPDNLQJWKURXJKFUHDWLYHLGHDVDQGYLDEOH

SUREOHPVROYLQJWKDWFDQFRQWUROWKHLUHPRWLRQVWRPDNHVRXQGDQGREMHFWLYHGHFLVLRQV%HFNOHV

 VWDWHGWKDWHIIHFWLYHOHDGHUVDFNQRZOHGJHWKHLUIHHOLQJVDQGKDUQHVVWKHPIRUHQJDJLQJ

LQGLYLGXDOV$QHQJDJHPHQWDGYRFDWHLVDFRQYHUVDWLRQDFWLYDWRUZKRKDVH[FHOOHQW

FRPPXQLFDWLRQDQGIDFLOLWDWLRQVNLOOVFDUHVDERXWSHRSOHDQGVXSSRUWVWKHLUSRWHQWLDOVKRZV

FRPPLWPHQWWRLPSURYHPHQWUHPDLQVFRQQHFWHGWRWKHPRUHH[WHQVLYHQHWZRUNDQGRIIHUVDQG

DFFHSWVFRQVWUXFWLYHIHHGEDFN *LOSLQ-DFNVRQHWDO 1/3VNLOOVFDQWUDQVODWHLQWR

HPRWLRQDOLQWHOOLJHQFHLQWKDW1/3KHOSVWRDSSUHKHQGDSHUVRQ¶VWKRXJKWSURFHVVHVDQGKRZ

H[SHULHQFHVVKDSHWKHPVRWKH\FDQEHWWHUFRPPXQLFDWHDQGSRVLWLYHO\LQIOXHQFHWKHLURZQ

HPRWLRQVDQGWKRVHRIRWKHUV



 

/HDGHUVKLS6W\OH(IIHFWLYHOHDGHUVXQGHUVWDQGWKHLPSDFWOHDGHUVKLSVW\OHKDVRQ

IROORZHUVDQGKRZWRXVHNQRZOHGJHWRPRWLYDWHIROORZHUVLQDFKLHYLQJRUJDQL]DWLRQDOVXFFHVV

%HFNOHV 'DYLV  GHILQHGOHDGHUVKLSVW\OHDVWKHDSSURDFKDQGEHKDYLRUDOHDGHU

WDNHVWRPRWLYDWHIROORZHUVLQUHDFKLQJGHVLUHGJRDOV&HQNFLDQGg]oHOLN  DJUHHGEXW

H[SDQGHGRQWKHLPSDFWRIWKHFRUUHODWLRQDVHPSRZHULQJOHDGHUEHKDYLRUVWRZDUGHPSOR\HHV

ERRVWVHPSOR\HHHQJDJHPHQWSK\VLFDOO\HPRWLRQDOO\DQGFRJQLWLYHO\5DYLQGUDQDWK  

H[SODLQHGWKDWPDQ\OHDGHUVKLSVW\OHVH[LVWDQGFDQEHXVHIXOLQGLIIHUHQWVLWXDWLRQV'DYLV  

IXUWKHUHODERUDWHGWKDWEXUHDXFUDWLFDXWRFUDWLFWUDQVDFWLRQDOWUDQVIRUPDWLRQDOFKDULVPDWLF

ODLVVH]IDLUHDQGVHUYDQWOHDGHUVKLSDUHWKHVW\OHVFRQWDLQHGLQWKHIRXUPDLQOHDGHUVKLSWKHRULHV

:KHQDSSO\LQJWRRQHRIWKHVHVW\OHVWKHOHDGHUFDQSRVLWLYHO\DOWHUHPSOR\HHVDWLVIDFWLRQ

SHUIRUPDQFHDQGFRPPLWPHQWWKXVLQFUHDVLQJRUJDQL]DWLRQDOSURGXFWLYLW\$GLUHFWDQG

VLJQLILFDQWFRUUHODWLRQH[LVWVEHWZHHQOHDGHUVKLSVW\OHDQGHPSOR\HHHQJDJHPHQW *DQJDL 

$JUDZDO 

7KHFKDOOHQJHWKDWFRPHVZLWKWKHUHODWLRQVKLSEHWZHHQOHDGHUVKLSVW\OHDQGHQJDJHPHQW

LVWKDWWKHUHLVQRRQHVWDQGDUGDSSURDFKWKDWZRUNVIRUHYHU\RQH'X3OHVVLVDQG%RVKRII  

VXSSRUWHGWKLVVWDWHPHQWDQGH[SODLQHGWKDWVSHFLILFOHDGHUVKLSVW\OHVPLJKWEHPRUHHIIHFWLYHIRU

VRPHHPSOR\HHVWKDQRWKHUV$FFRUGLQJWR'DYLV  HDFKJHQHUDWLRQKDVDIDYRUHG

OHDGHUVKLSVW\OHVROHDGHUVVKRXOGDGDSWWRHDFKJHQHUDWLRQ¶VFRQWLQXHGRUJDQL]DWLRQDOJURZWK

SUHIHUHQFHV=XQHG  FRQVLGHUHGDGDSWDWLRQEXWFRXQWHUHGWKDWVRPHWLPHVDQHHGH[LVWVWR

FRPELQHGLIIHUHQWVW\OHVGHSHQGLQJRQWKHFRQWH[WVROHDGHUVKLSPXVWH[KLELWWKHDSSURSULDWH

VW\OHIRUWKHEXVLQHVVFRQWH[W&XDGUD3HUDOWDHWDO  QRWHGWKH\VXSSRUWFRPELQLQJVW\OHV

VWDWLQJWKDWOHDGHUVFDQHPSOR\PRUHWKDQRQHVW\OHDWGLIIHUHQWWLPHVDQGWRGLIIHUHQWGHJUHHVIRU

PD[LPXPEHQHILW=XQHG  UHDOL]HGWKDWHDFKOHDGHUVKLSVW\OH¶VHIIHFWLYHQHVVYDULHVIURP



 

FRXQWU\WRFRXQWU\ZKLFKLVZK\OHDGHUVQHHGWRDGRSWDFRPELQDWLRQRIVW\OHVWRHQVXUHDOOSDUWV

RIWKHRUJDQL]DWLRQDUHIXQFWLRQLQJDWWKHPD[LPXPSHUIRUPDQFHOHYHO:RUNPDQ  

UHPLQGHGWKDWLGHQWLI\LQJHIIHFWLYHOHDGHUVKLSVW\OHVLVLPSRUWDQWIRUDGGUHVVLQJGLVHQJDJHPHQW

DQGSUHYHQWLQJEXUQRXW

 ,GHQWLI\LQJHIIHFWLYHOHDGHUVKLSVW\OHVDQGWKHLUSRWHQWLDOFRPELQDWLRQVFRPHIURP

OHDUQLQJWKHGLIIHUHQWVW\OHVDQGWKHLPSDFWWKH\JHQHUDWH'HPRFUDWLFVHUYDQWFKDULVPDWLF

DXWKHQWLFDQGWUDQVIRUPDWLRQDOOHDGHUVKLSVW\OHVDUHDOOHIIHFWLYHOHDGHUVKLSVW\OHV=XQHG  

GHILQHGWKHGHPRFUDWLFOHDGHUVKLSVW\OHDVDOHDGHUWKDWDOORZVHYHU\RQHWRSDUWLFLSDWHLQ

GHFLVLRQPDNLQJZKLFKDOORZVWKHOHDGHUWRXQGHUVWDQGHPSOR\HHFRQFHUQVDQGNHHSPRUDOH

KLJK*UHHQ  GHILQHGVXSSRUWLYHOHDGHUVDVWKRVHZKRIDFLOLWDWHDQHQYLURQPHQWRIWUXVW

ZKHUHHPSOR\HHVFDQEHRSHQDERXWWKHLUVWUHQJWKVDQGZHDNQHVVHVZKLFKDOORZVWKHPWRUHDFK

WKHLUIXOOSRWHQWLDO6KHQR\DQG8FKLO  FODLPHGWKDWVXSSRUWLYHOHDGHUVDUHHVVHQWLDOIRU

HQJDJHPHQW6HUYDQWOHDGHUVFRQFHSWXDOL]HDUHVHQVLWLYHWRRWKHUV¶ZHOOEHLQJSXWIROORZHUV

ILUVWGHYHORSIROORZHUVEHKDYHHWKLFDOO\HPSRZHURWKHUVDQGFUHDWHYDOXHIRUWKHFRPPXQLW\

5RVV*UDQW *DQGROILDQG6WRQH  SURYLGHGIXUWKHULQVLJKWLQWRVHUYDQWOHDGHU

FKDUDFWHULVWLFVDVKDYLQJVNLOOVRIOLVWHQLQJHPSDWK\IRUHVLJKWKHDOLQJFRPPLWPHQWWRSHRSOH¶V

JURZWKDZDUHQHVVSHUVXDVLRQFRQFHSWXDOL]DWLRQDQGEXLOGLQJFRPPXQLW\&XDGUD3HUDOWDHWDO

 GHILQHGDFKDULVPDWLFOHDGHUDVRQHZKRFDQUHODWHWRIROORZHUVDQGWDNHSRVLWLRQVRQDQ

HPRWLRQDOOHYHODQGVKRZFRQYLFWLRQ&KDULVPDWLFOHDGHUVVKRZVXEVWDQWLDOH[SHUWLVHDQGHQJDJH

ZLWKHPSOR\HHVLQH[WUDRUGLQDU\EHKDYLRU =XQHG 5RVV*UDQW  GHILQHGDXWKHQWLF

OHDGHUVDVVHOIDZDUHWKRVHZKRLQWHUQDOL]HPRUDOSHUVSHFWLYHVEDODQFHSURFHVVLQJDQGKDYH

WUDQVSDUHQWUHODWLRQVKLSV'X3OHVVLVDQG%RVKRII  VKRZHGWKHDGDSWDELOLW\RIDXWKHQWLF

OHDGHUVWRDGMXVWWKHLUOHDGHUVKLSEHKDYLRUVWRHPSOR\HHSUHIHUHQFHVZKLOHPDLQWDLQLQJWKHLU



 

SHUVRQDOLGHQWLW\$XWKHQWLFOHDGHUVSRVLWLYHO\LQIOXHQFHHPSOR\HHWKLQNLQJDQGEHKDYLRUVZKLFK

OHDGVWRKLJKHUOHYHOVRIZHOOEHLQJDQGHQJDJHPHQW

2UJDQL]DWLRQVFDQXVHWKHWUDQVIRUPDWLRQDOOHDGHUVKLSVW\OHWRLPSURYHSHUIRUPDQFHDQG

LQFUHDVHRUJDQL]DWLRQDOFRPPLWPHQW $KPDGHWDO 7UDQVIRUPDWLRQDOOHDGHUVGHYHORS

IROORZHUVWKURXJKFRQVLGHUDWLRQLQWHOOHFWXDOVWLPXODWLRQPRWLYDWLRQDQGLGHDOL]HGLQIOXHQFHWR

FKDQJHLQGLYLGXDOVDQGVRFLDOV\VWHPV$FFRUGLQJWR:DQJHWDO  WUDQVIRUPDWLRQDO

OHDGHUVKLSJHQHUDWHVDSRVLWLYHHIIHFWE\IRFXVLQJRQHPRWLRQDODVSHFWVHPSOR\HHQHHGVDQG

VRFLDOVXSSRUW&OD\SRRO  SURYLGHGWKDWWUDQVIRUPDWLRQDOOHDGHUVKLSHIIHFWLYHO\FODULILHVWKH

RUJDQL]DWLRQ¶VPLVVLRQDQGHQKDQFHVVXERUGLQDWHVDWLVIDFWLRQ$KPDGHWDO  DJUHHGWKDW

WUDQVIRUPDWLRQDOOHDGHUVKLSEXLOGVFRPPLWPHQWWRWKHRUJDQL]DWLRQ¶VPLVVLRQDQGREMHFWLYHVE\

LQIOXHQFLQJVLJQLILFDQWFKDQJHVLQHPSOR\HHV DWWLWXGHVDQGDVVXPSWLRQV

5RVV*UDQW  VXPPDUL]HGWKHGLIIHUHQWOHDGHUVKLSVW\OHVVD\LQJWKDWUHVHDUFKVKRZV

DSRVLWLYHFRUUHODWLRQEHWZHHQWKHWUDQVIRUPDWLRQDOVHUYDQWDQGDXWKHQWLFOHDGHUVKLSVW\OHVDQG

MREVDWLVIDFWLRQ&HQNFLDQGg]oHOLN  RIIHUHGWKHRSSRVLWHHQGRIWKHVSHFWUXPWKDW

UHVHDUFKVKRZVDQHJDWLYHDVVRFLDWLRQZLWKDXWKRULWDULDQOHDGHUVKLSVW\OHVDQGHPSOR\HH

HQJDJHPHQW%HOLDVDQG.RXVWHOLRV  SURYLGHGWKDWRYHUDOOHPSOR\HHVSUHIHUDFRQVLGHUDWH

OHDGHUZKROLVWHQVWRWKHLURSLQLRQDQGHQFRXUDJHVFUHDWLYHH[SUHVVLRQDQGSHUVRQDOJURZWKZKLOH

VWLOODOLJQLQJZLWKWKHRUJDQL]DWLRQ¶VFXOWXUH1/3KHOSVOHDGHUVNQRZWKHPVHOYHVZKLFKFDQ

OHDGWRPRGLI\LQJWKHLUOHDGHUVKLSVW\OHEXWPRUHUHVHDUFKQHHGVWRRFFXUWRUHYHDODQ\LQIOXHQFH

RQHKDVRQWKHRWKHU¶VHIIHFWLYHQHVVUHJDUGLQJOHDGHUVKLSVW\OH%H\RQGOHDGHUVKLSVW\OHOHDGHUV

VKRXOGFRQVLGHU1/3HPSOR\HHV¶OHDUQLQJVXEPRGDOLWLHVWRHQVXUHUHVSRQVLYHQHVVWKDWDOLJQV

ZLWKWKHLUSUHIHUHQFHDQGVW\OH 7KDNXU6KUL 9LM 



 

/HDGHUVKLS'HYHORSPHQW6HHPD6LQJK  ZURWHDMRXUQDODUWLFOHDERXW

RUJDQL]DWLRQDOFKDOOHQJHVZLWKWDOHQWDQGFRPSHWHQFHPDQDJHPHQW¶VVWUDWHJLFLVVXH+DPLOWRQ

 SUHVHQWHGWKHSUREOHPWKDWOHDGHUVPRVWFRPPRQO\JHWSURPRWHGWRPDQDJHPHQWUROHV

GXHWRIXQFWLRQDOH[SHUWLVHDQGWHFKQLFDOFRPSHWHQFHEXWKDYHOLWWOHWRQRGHYHORSPHQWRQKRZWR

VXFFHHGLQWKHLUQHZUROH&RPSHWHQFHPDQDJHPHQWLVZKHUHOHDGHUVKLSGHYHORSPHQWFRPHVLQ

7XUQHUDQG%DNHU  GHILQHGOHDGHUVKLSGHYHORSPHQWDVDG\QDPLFSURFHVVWKDWHTXLSVERWK

OHDGHUVDQGWKHRUJDQL]DWLRQZLWKWKHNQRZOHGJHDQGWRROVQHHGHGWRDGDSWWRFKDQJHVRYHUWLPH

DQGYLHZOHDGHUVKLSDVDFROOHFWLYHFRQVWUXFW7KLVLVEHFDXVHLWLQYROYHVPXOWLSOHLQGLYLGXDOVLV

QRQOLQHDUDQGLQFOXGHVFRPSOH[LQWHUDFWLRQVEHWZHHQSHRSOHVRFLDOHQWLWLHVDQGRUJDQL]DWLRQDO

HQYLURQPHQWV*DYLQ  SURYLGHGWKDWWKHSXUSRVHRIOHDGHUVKLSGHYHORSPHQWLVWRFORVHWKH

NQRZQDQGXQNQRZQJDSZKLOH%HFNHUDQG%LVK  H[SODLQHGWKHLPSRUWDQFHRIOHDGHUVKLS

GHYHORSPHQWSURJUDPVLVWKDWWKH\SURYLGHDZD\WRGHYHORSDQGHQKDQFHWKHVNLOOVDQG

FDSDELOLWLHVHVVHQWLDOIRURUJDQL]DWLRQVLQWRGD\¶VUDSLGO\FKDQJLQJHQYLURQPHQW2UJDQL]DWLRQDO

HIIHFWLYHQHVVFRQQHFWVWROHDGHUVKLSVNLOOVDQGVRFLDOVNLOOVDFKLHYHGWKURXJKOHDGHUVKLS

GHYHORSPHQWSURJUDPVHVSHFLDOO\WKRVHWKDWLQFOXGHSUDFWLFHDQGIHHGEDFN &XDGUD3HUDOWDHWDO

 

,QKHUMRXUQDODUWLFOH³7KH,PSDFWRI/HDGHUVKLS'HYHORSPHQW8VLQJ&RDFKLQJ´*DYLQ

 FRQVWUXHGWKDWOHDGHUVKLSGHYHORSPHQWJRHVEH\RQGPHUHO\OHDGHURUJDQL]DWLRQDO

DOLJQPHQWWRLQFOXGHLQQHUSHUVRQDODOLJQPHQWVNLOOFKDUDFWHUDQGFRPSRUWPHQW.KRUHYD

 DJUHHGDQGH[SDQGHGWKDWOHDGHUVKLSGHYHORSPHQWSURJUDPVGHYHORSNQRZOHGJHVNLOOV

DELOLWLHVDQGSRWHQWLDOUHVXOWLQJLQWKHFRPSHWLWLYHDGYDQWDJHVRIHQKDQFHGFRPSHWLWLYHQHVV

GHYHORSPHQWRISRWHQWLDOOHDGHUVSHUIRUPDQFHDQGVSUHDGLQJRUJDQL]DWLRQDOYDOXHVDQG

DWWLWXGHV%DWHVDQG:HLJKDUW  UHOHDVHGDOHDGHUGHYHORSPHQWWLPHOLQHWKDWVWDUWVZLWK



 

JHQHUDWLQJDZDUHQHVVDERXWH[LVWLQJVWUHQJWKVDQGDUHDVUHTXLUHGIRUIXUWKHUGHYHORSPHQW

/HDGHUVKLSGHYHORSPHQWLQFOXGHVUHFRJQL]LQJLQGLYLGXDOOHDUQHUQHHGVDORQJVLGHWKHFXUUHQWDQG

GHVLUHGH[SHULHQFHVNLOOOHYHOVSHUVRQDOLW\DQGEHKDYLRUVQHHGHGIRUVXFFHVV +ROWHWDO 

$FFRUGLQJWR$O$EGRXOL  OHDGHUVKLSHIIHFWLYHQHVVGHSHQGVRQLPSURYLQJVHQLRUOHDGHUV¶

NQRZOHGJHDQGSHUVRQDOGHYHORSPHQWWKURXJKWUDLQLQJDQGHGXFDWLRQDOSURJUDPV6HLGOH

)HUQDQGH]DQG3HUU\  VSHFLILHGWKDWOHDGHUVZKRUHFHLYHWUDLQLQJDQGGHYHORSPHQWWKDW

LQFOXGHVHOIDZDUHQHVVDQGSHUVRQDOIHHGEDFNREWDLQKLJKHUOHDGHUVKLSHIIHFWLYHQHVVOHYHOV

*ULGHUHWDO  H[SOLFDWHGWKDWOHDGHUVKLSGHYHORSPHQWEULQJVDFRPSHWLWLYH

DGYDQWDJHWRDQRUJDQL]DWLRQ$KPDGHWDO  VXSSRUWHGWKHFRPSHWLWLYHDGYDQWDJHFODLPE\

H[SODLQLQJWKDWDGLUHFWFRUUHODWLRQH[LVWVEHWZHHQWUDLQLQJGHYHORSPHQWDQGRUJDQL]DWLRQDO

FRPPLWPHQW-RQHV  H[SODLQHGWKDWOHDGHUVKLSGHYHORSPHQWSURJUDPVFUHDWHLQFUHDVHG

FRPPLWPHQWVDWLVIDFWLRQDQGHQJDJHPHQW$KPDGHWDO  DVFHUWDLQHGWKDWRUJDQL]DWLRQV

DUHDZDUHRIWKHVLJQLILFDQFHRIWUDLQLQJLQDUDSLGO\FKDQJLQJHQYLURQPHQWDQGDUHRSHQWR

LQYHVWLQJLQWUDLQLQJSURJUDPVWRLQFUHDVHHPSOR\HHFRPPLWPHQW(QJDJHPHQWVKRXOGIRFXVRQ

OHDGHUVKLSGHYHORSPHQWHIIRUWVEHFDXVHPDQDJHULDOFRPPLWPHQWFDVFDGHVGRZQWKURXJKWKH

OHDGHUPHPEHUH[FKDQJHJHQHUDWLQJLQGLYLGXDOZRUNHQJDJHPHQW *XWHUPDQQHWDO 

 /HDGHUVKLSGHYHORSPHQWSURJUDPVFUHDWHJUHDWOHDGHUVZKRIDFLOLWDWHDQHQYLURQPHQWIRU

RWKHUVWRIORXULVK +DPLOWRQ 2UJDQL]DWLRQVNQRZWKH\QHHGOHDGHUVKLSGHYHORSPHQW

SURJUDPVWRJHQHUDWHWKDWIORXULVKLQJHQYLURQPHQWEXWWKHFKDOOHQJHFRPHVIURPGLVFHUQLQJ

ZKLFKDSSURDFKHVWRWDNH0DQ\OHDGHUVKLSGHYHORSPHQWPRGHOVDUHXVHIXOIRUWKHLUGHVLJQHG

SXUSRVHEXWQRRQHFRPSUHKHQVLYHPRGHODSSOLHVWRDOOVLWXDWLRQV 9LU]L 7XUQHUDQG

%DNHU  GLVWLQJXLVKHGWKDWLWLVQRWXQWLODQRUJDQL]DWLRQGHWHUPLQHVLWVGHYHORSPHQWQHHGV

WKDWLWFDQGHWHUPLQHZKLFKGHYHORSPHQWWHFKQLTXHEHVWPHHWVWKRVHQHHGV1/3LVZRUWK



 

H[SORULQJIRULQFOXVLRQLQDOHDGHUVKLSGHYHORSPHQWSURJUDPGXHWRWKHVHOIDZDUHQHVVLWEULQJV

ZKLFKFDQWKHQLQWXUQLPSURYHOHDGHUHIIHFWLYHQHVV

/HDGHU7UDLQLQJ3URJUDPV/HDGHUVDUHWKHRQHVZKRLQLWLDWHDQGFRRUGLQDWH

RUJDQL]DWLRQDOFKDQJH ,RQHVFX %ROFDV *DQGROILDQG6WRQH  HPSKDVL]HGWKDW

OHDGHUWUDLQLQJSURJUDPVDUHLPSRUWDQWEHFDXVHOHDGHUVKLSKDVEHFRPHLQFUHDVLQJO\FRPSOH[DQG

PXOWLIDFHWHGIRUDOOW\SHVRIRUJDQL]DWLRQVDURXQGWKHZRUOGPDNLQJLWGLIILFXOWWRGHWHUPLQH

ZKLFKW\SHRIOHDGHULVWKHEHVW$VWXG\FRQGXFWHGE\-RQHV  IRXQGWKDWWKHXSFRPLQJ

JHQHUDWLRQRIOHDGHUVGRHVQRWKDYHWKHQHHGHGFRPSHWHQFLHV%D\DW  VXSSRUWHGWKH

VWDWLVWLFWKDWRIEXVLQHVVOHDGHUVEHOLHYHOHDGHUVKLSLVDFULWLFDOLVVXHEXWRQO\DUH

FRQILGHQWLQWKHLURUJDQL]DWLRQ VOHDGHUVKLS

*DQGROILDQG6WRQH  HQOLJKWHQHGWKDWSRRUOHDGHUVKLSKDVEHFRPHDJOREDOV\VWHPLF

LVVXH$GGUHVVLQJSRRUOHDGHUVKLSLVVRPHWKLQJDOORUJDQL]DWLRQVDQGLQGXVWULHVDUHVXEMHFWWRGR

/HDGHUVKLSWUDLQLQJVKRXOGDGGUHVVWKHODFNRIOHDGHUFRPSHWHQF\DQGVWUHQJWKHQOHDGHULGHQWLW\

ZKLFKSRVLWLYHO\DQGPRWLYDWLRQDOO\LPSDFWVRUJDQL]DWLRQHIIHFWLYHQHVV .UDJW *XHQWHU 

=XQHG  SURSRVHGWKDWWUDLQLQJDQGH[SHULHQFHFUHDWHHIIHFWLYHOHDGHUV6DKXHWDO  

DJUHHGDQGVXJJHVWHGOHDGHUVKLSWUDLQLQJWRDGGUHVVHPSOR\HHWXUQRYHU.UDJWDQG*XHQWHU

 HODERUDWHGWKDWOHDGHUVKLSWUDLQLQJSURGXFHVSRVLWLYHRXWFRPHVLQOHDGHUHIIHFWLYHQHVVDQG

EHKDYLRUDODQGSHUIRUPDQFHRXWFRPHV2UJDQL]DWLRQVFDQVXUYLYHWKHH[WHUQDOHQYLURQPHQW¶V

YRODWLOLW\DQGWXUEXOHQFHWKURXJKWUDLQLQJDQGGHYHORSLQJOHDGHUVZLWKWKHVNLOOVWKH\QHHGWR

PDQDJH =XQHG $QWRQ\  SUHVHQWHGWKDWLPSOHPHQWLQJDOHDUQLQJDQGGHYHORSPHQW

VWUDWHJ\LPSURYHVRUJDQL]DWLRQDOHQJDJHPHQWRYHUDOO$FFRUGLQJWR/HHGV5RDFK%XUWQLFNDQG

0RRG\  IDYRUDEOHZRUNSODFHDWWLWXGHVLQFUHDVHWKHPRUHFRQFHQWUDWHGWKHQXPEHURIZHOO

WUDLQHGOHDGHUVLQDQRUJDQL]DWLRQ(QVXULQJOHDGHUVKDYHWKHQHHGHGWUDLQLQJWREHHIIHFWLYHDQG



 

IDFLOLWDWHDQHQJDJHGZRUNIRUFHIDOOVRQWKHOHDGHUVWKHPVHOYHVSULPDULO\H[HFXWLYHVDQG&(2V

WRLGHQWLI\DQGDGGUHVVJDSV

,QWKHVDPHZD\WKHUHDUHVHYHUDOSRWHQWLDOOHDGHUVKLSGHYHORSPHQWSURJUDPVWKHUHDUH

VHYHUDOOHDGHUVKLSWUDLQLQJDSSURDFKHV+DPDPRWRHWDO  H[SODLQHGWKDWPXOWLSOHHIIHFWLYH

WUDLQLQJSURJUDPVDFFRPPRGDWHVSHFLILFFRPSDQ\FKDUDFWHULVWLFVDQGSDUWLFLSDQWGLYHUVLW\WR

FRQWULEXWHWRHQJDJHPHQW/DUVVRQ  HPSKDVL]HGWKHLPSRUWDQFHRIOHDGHUVKLSWUDLQLQJ

SURJUDPVWRHQKDQFHDQGGHYHORSSRVLWLYHOHDGHUVKLSEHKDYLRUVEHFDXVHOHDGHUVKLSLVDOHDUQHG

EHKDYLRU6HHPD6LQJK  DGGHGWKDWWUDLQLQJSURJUDPVVKRXOGDOORZHPSOR\HHVWRUHFHLYH

WKHVNLOOVDQGFRPSHWHQFLHVWRSHUIRUPWKHLUMREVDQGFRQVLVWRILQWHUQDORURXWVRXUFHGWUDLQLQJ

SURJUDPV$KPDGHWDO  DJUHHGWKDWWUDLQLQJGHYHORSVHPSOR\HHV¶VNLOOVDQGNQRZOHGJH

IRUWKHLUMRE6FURJJLQV  UHYHDOHGWKDWDSRVLWLYHFRQQHFWLRQH[LVWVEHWZHHQMREVDWLVIDFWLRQ

DQGHPRWLRQDOLQWHOOLJHQFHVRRUJDQL]DWLRQVVKRXOGLQFOXGHWUDLQLQJSURJUDPVWRLQFUHDVH

HPRWLRQDOLQWHOOLJHQFH3HUIRUPDQFHLPSURYLQJOHDGHUVKLSWUDLQLQJSURJUDPVLQFOXGHH[SHULHQWLDO

WUDLQLQJIHHGEDFNFRDFKLQJDQGFODVVURRPLQVWUXFWLRQ 6HLGOHHWDO $VWXG\FRPSOHWHG

E\%HFNHUDQG%LVK  UHYHDOHGWKDWPDQDJHUVZDQWHGPRUHIRUPDOOHDUQLQJEHFDXVHLWDGGV

YDOXHLQVLWXDWLRQVZKHUHDQHHGH[LVWVIRUIDFWXDONQRZOHGJHRUWKHUHDUHVSHFLILFSURFHVVHVDQG

PHWKRGVWRDSSURDFKLQJWDVNVHVSHFLDOO\LQWKHDUHDRIVRFLDOOHDUQLQJ1/3LVDXVHIXOWUDLQLQJ

WRROWKDWKHOSVSHUVRQVEHWWHUWKHPVHOYHVSURYHQWREHVXFFHVVIXODVDFRDFKLQJPHWKRG

 *DQGROILDQG6WRQH  VWDWHGDQHHGH[LVWVIRULQWHQWLRQDOOHDGHUVKLSVNLOOVFXOWLYDWLRQ

WRUHDFKPD[LPXPSRWHQWLDOOHDGHUVKLSRXWSXW$FFRUGLQJWR-RQHV¶  UHVHDUFKILQGLQJV

IXWXUHOHDGHUVQHHGQHZVNLOOVWRLQFOXGHFULWLFDOWKLQNLQJIOH[LELOLW\DQGWROHUDQFHEH\RQG

PDQDJLQJWHDPV¶IXQGDPHQWDOVNLOOVPDQDJLQJZRUNFUHDWLQJDYLVLRQDQGGULYLQJUHVXOWV

$EX-EDUDDQG:RUOH\  RIIHUHGLQVLJKWQRWLQJWKDWOHDGHUVKLSGHYHORSPHQWSURJUDPVRIWHQ



 

H[FOXGHWUDLQLQJRQGHYHORSLQJVRIWVNLOOVZKLFKLVDQLVVXHEHFDXVHWKHFRPSOH[LW\RI

LQWHUSHUVRQDOUHODWLRQVKLSVDQGZRUNHQYLURQPHQWVPDNHVRIWVNLOOVDGULYHURIVXFFHVVIRU

GHYHORSLQJDYDOXHFHQWHUHGOHDGHUVKLSDSSURDFK1/3WHFKQLTXHVFDQLPSURYHVRIWVNLOOV

WKURXJKEHWWHUODQJXDJHSDWWHUQVDQGVHOIPDQDJHPHQW 1DKDU &XDGUD3HUDOWDHWDO

 DGGHGWKDWWUDLQLQJSURJUDPVVKRXOGLQFOXGHVRFLDOVNLOOVEHFDXVHWKH\DUHFULWLFDOIRU

OHDGHUVKLSVXFFHVVDQGHIIHFWLYHQHVVDQGSURYLGHDQRYHUDOOFRPSHWLWLYHDGYDQWDJH

/DG\VKHZVN\DQG7DSOLQ  LQVHUWHGDQRWKHUSHUVSHFWLYHWKDWRUJDQL]DWLRQVFDQHQKDQFHWKH

RUJDQL]DWLRQDOOHDUQLQJFXOWXUHDQGHPSOR\HHHQJDJHPHQWWKURXJKGHYHORSLQJDPDQDJHU¶V

FRDFKLQJVNLOOV6RIWVNLOOVVRFLDOVNLOOVDQGFRDFKLQJVNLOOVDUHDOOHVVHQWLDOLQHQVXULQJHIIHFWLYH

OHDGHUVKLS

7KHRUHWLFDO/HDGHUVKLS

1/3DQG(QJDJHPHQW

5DYLQGUDQDWK  VWDWHGWKDWHIIHFWLYHRUJDQL]DWLRQVDUHOHDUQLQJRUJDQL]DWLRQV5D\

 SDUWLDOO\DJUHHGEXWH[SDQGHGWKDWHPSOR\HHHQJDJHPHQWOHDGHUVKLSWUDLQLQJDQG

GHYHORSPHQWDQGWKHLQWHUQDOWUDQVIHUHQFHRINQRZOHGJHDUHHVVHQWLDOIRFXVDUHDVIRU

RUJDQL]DWLRQVWRGD\/L  IRFXVHGRQKRZHPSOR\HHHQJDJHPHQWFDQLPSURYHWKHWDOHQW

PDQDJHPHQWVWUDWHJ\ZKLOH*UHHQ  UHPLQGHGWKDWRUJDQL]DWLRQDOOHDGHUVDUHUHVSRQVLEOH

IRULPSOHPHQWLQJVXVWDLQDEOHHQJDJHPHQWVWUDWHJLHV-RXUQDODUWLFOHILQGLQJVE\6LQJK  

LGHQWLILHGWKDWDQDGHTXDWHDSSURDFKWROHDGHUVKLSLQYROYHVWKHIROORZLQJWUDLQLQJDLGVLQUDSLG

LQQRYDWLRQDQGLPSOHPHQWDWLRQRIQHZSURGXFWVDQGVHUYLFHVXQGHUVWDQGLQJWKHPDUNHWDQGLWV

FXVWRPHUVLPSURYHGFXVWRPHURSSRUWXQLWLHVDQGVDWLVIDFWLRQDQGLQFUHDVHGHPSOR\HH

SURGXFWLYLW\DQGHQJDJHPHQW



 

1/3LVRQHVWUDWHJ\WRFRQVLGHUIRUVXVWDLQDEOHHQJDJHPHQW1DKDU  SURYLGHGWKDW

1/3¶VSXUSRVHDVDWUDLQLQJWRROLVWRIRFXVRQFRPPXQLFDWLRQDQGEHKDYLRUFKDQJHVWRLQIOXHQFH

HPSOR\HHVLPSURYHZRUNLQJUHODWLRQVKLSVDQGLQFUHDVHFRPSHWLWLYHQHVV,WVXVHDVDQDFFHVVLEOH

WHFKQRORJ\WUDLQLQJWRROLVJURZLQJEHFDXVHLWKHOSVHPSOR\HHVJDLQDZDUHQHVVRIWKHPVHOYHV

RWKHUVLQWKHRUJDQL]DWLRQDQGFXVWRPHUVIURPERWKDSHUVRQDODQGSURIHVVLRQDOVWDQGSRLQW

$FFRUGLQJWR.RWHUDHWDO  1/3KDVDPXOWLFRPSRQHQWDSSURDFKVLPLODUWRRWKHUFRDFKLQJ

DSSURDFKHVZKLFKH[SODLQVKRZLPSURYHPHQWVLQFRJQLWLYHRUVNLOOEDVHGRXWFRPHVJHQHUDWH

LPSURYHGHIIHFWLYHQHVVDFURVVDUDQJHRIZRUNVLWXDWLRQV5DYLQGUDQDWK  H[SODLQHGWKDW

PDQDJHUVXQGHUVWDQGWKHQHHGIRU1/3LQWKHOHDUQLQJSURFHVVEHFDXVHLWHVWDEOLVKHVHIIHFWLYH

FRPPXQLFDWLRQSDWWHUQVLQWHUQDOO\DQGH[WHUQDOO\2UJDQL]DWLRQVWKDWXVH1/3SURGXFHG

DQHFGRWDOUHSRUWVWKDWVKRZKRZ1/3LPSURYHGHQJDJHPHQWPRWLYDWLRQVDQGMRESHUIRUPDQFH

ZLWKLQWKHLURUJDQL]DWLRQ .RWHUDHWDO 

*DSVLQWKH/LWHUDWXUH

7KHUHZHUHVHYHUDOJDSVLQWKHOLWHUDWXUHUHJDUGLQJWKHFRQQHFWLRQEHWZHHQOHDGHUVKLS

HQJDJHPHQWDQG1/3.RWHUDHWDO  VWDWHGWKDWGHVSLWH1/3¶VSRSXODULW\LWUHFHLYHVPXFK

FULWLFLVPIRUEHLQJDQXQGHUGHYHORSHGDSSURDFK'H5LMN'HUNV*ULPOH\DQG+ROODQGHU  

SURYLGHGDGGLWLRQDOFRQWH[WDVHDODVUHVHDUFKEDVHGHYLGHQFHIRUHIIHFWLYHQHVVHOXGHV1/3

EHFDXVHRIWKHPDQ\GHILQLWLRQVFULWHULDIRUWRROVDQGIRXQGDWLRQSULQFLSOHVDQGWHFKQLTXHV

FDXVLQJWKHWRSLFWRUHPDLQYDJXH6XFLX  DGGHGWKDWWKHQXPEHURI1/3FRQFHSWVLV

DOZD\VLQFUHDVLQJVLQFHLWLVDQHYROYLQJILHOGPDNLQJLWLPSRVVLEOHWRSUHVHQWIXOO\

$FFRUGLQJWR'XQN  PRVWHYLGHQFHVXSSRUWLQJ1/3LVDQHFGRWDO*ULPOH\  

H[SODLQHGWKDW1/3¶VVXFFHVVLVVXEMHFWLYHUHJDUGLQJWKHPRGHO¶VXVHIXOQHVVDVLWGRHVQRW

FRPPLWWRWKHRU\EHFDXVHLWLVFRPPHUFLDOO\PRWLYDWHGZLWKQRFRKHUHQWHSLVWHPRORJ\RQWRORJ\



 

RUPHWKRGRORJ\ODFNVHPSLULFDOHYLGHQFHDQGFRQWDLQVPXFKKLVWRULFDODQGFXUUHQW

GLVDJUHHPHQW7KHFRQFHSWRIPRGDOLWLHVDQGVXEPRGDOLWLHVWKDWPDNHXS1/3DUHXQVFLHQWLILF

VRWKHUHIRUHPDQ\ZLGHO\FRQVLGHUWKHHQWLUHILHOGXQVFLHQWLILF 6XFLX <HPP  

LQVHUWHGWKDWPDQ\RIWHQDFFXVH1/3RIEHLQJPDQLSXODWLYHEXWLWVLQIOXHQFHGHSHQGVRQWKH

XVHU¶VLQWHJULW\DQGLQWHQWLRQ'H5LMNHWDO  H[SODLQHGWKDWPXFKRIWKHFODLPVPDGH

DJDLQVW1/3DUHSHUSHWXDWLRQVPDGHIURPP\WKVRIIODZHGGDWDSUHVHQWHG\HDUVDJRDQGGR

QRWFRQVLGHUFRQVLVWHQWUHVHDUFKH[LVWVVXSSRUWLQJWKHIXQGDPHQWDOFRQFHSWVRI1/39DOXHH[LVWV

LQWKHRXWFRPHVRYHUZKDWLVSURRI,QKLVMRXUQDODUWLFOHRQ1/3LQEXVLQHVV'XQN  

VXSSRUWHGWKHRXWFRPHSHUVSHFWLYHDQGVWDWHGWKDWZKHQFRQVLGHULQJ1/3IURPDEXVLQHVV

SHUVSHFWLYHWKHIRFXVVKRXOGEHRQWKHEHQHILWLWEULQJVWRWKHRUJDQL]DWLRQRYHUKRZRUZK\LW

ZRUNV

*DSVH[LVWHGZLWKLQWKHNQRZOHGJHRIHPSOR\HHHQJDJHPHQW2QHRIWKHPRVWVLJQLILFDQW

JDSVLQHPSOR\HHHQJDJHPHQWNQRZOHGJHFRPHVZLWKPHDVXUHPHQWEHFDXVH.DKQGLGQRWRIIHU

DQ\RSHUDWLRQDOL]DWLRQVRGLIIHUHQWDXWKRUVDSSO\GLIIHUHQWYDULDEOHVWRPHDVXUHWKHHPSOR\HH

HQJDJHPHQWFRQVWUXFW 6KURWU\LD 'KDQGD /L  DJUHHGWKDWLQFRQVLVWHQW

PHDVXUHPHQWVH[LVWZKLFKOHDGVWRLQFRQFOXVLYHGHILQLWLRQV6KHQR\DQG8FKLO  DGGHGWKDW

PHDVXULQJHPSOR\HHHQJDJHPHQWWKURXJKUHVSRQGHQWDQVZHUVFDQSURGXFHELDVHGUHVXOWV7KH

FKDOOHQJHVLQPHDVXULQJHPSOR\HHHQJDJHPHQWFRQWLQXHLQWRPHDVXULQJ1/3¶VLPSDFWRQ

HQJDJHPHQW%H\RQGPHDVXUHPHQW'DYLV  H[SODLQHGDJDSH[LVWVEHWZHHQDOHDGHU¶V

DELOLW\WRGHPRQVWUDWHEHKDYLRUVWKDWJHQHUDWHHQJDJHPHQWDQGWKHOHYHORIHQJDJHPHQW

HPSOR\HHVGHVLUH:LGHO\XQNQRZQLVWKHOHYHORISHUVRQDOHPRWLRQDOLQWHOOLJHQFHQHHGHGIRU

SHUVRQDOVXFFHVVDQGKRZLWLPSDFWVOR\DOW\DQGUHWHQWLRQDVWKHUHDUHVHYHUDOHPSOR\HH



 

HQJDJHPHQWDQWHFHGHQWVDQGRUJDQL]DWLRQDOEHKDYLRUVUHTXLUHVLPXOWDQHRXVFRQVLGHUDWLRQIRUDQ

DFFXUDWHDVVHVVPHQW :DVKLQJWRQ 

5HVHDUFKDOVRXQFRYHUHGH[LVWLQJJDSVLQDYDLODEOHOHDGHUVKLSNQRZOHGJH%HFNOHV  

SURYLGHGOHDGHUVKLSVW\OHLQVLJKWVQRWLQJWKDWQRTXDQWLWDWLYHHPRWLRQDOLQWHOOLJHQFH

GHWHUPLQDWLRQWROHDGHUVKLSVW\OHDQGOHDGHUHIIHFWLYHQHVVH[LVWVVRHPRWLRQDOLQWHOOLJHQFHVNLOOV

DUHQRWSDUWRIIRFXVHGLPSURYHPHQWVWRZDUGOHDGHUHIIHFWLYHQHVV'DYLV  FRYHUHGKRZ

VRIWVNLOOVDUHQRQWHFKQLFDOFRPSHWHQFLHVWKDWLQVSLUHDFWLYHHQJDJHPHQWZLWKRWKHUVDQGDUH

QHFHVVDU\DVWKHUHLVQRZDWHFKQRORJLFDOZRUNIRUFHVKLIW+HQFHDODFNRIGHYHORSHGVRIWVNLOOV

LQWKHQHZJHQHUDWLRQGHVHUYHVDWWHQWLRQPDLQO\EHFDXVHWKHH[LVWLQJNQRZOHGJHEDVHGRHVQRW

RIIHUOHDGHUVSHUVSHFWLYHVDQGLQVLJKWVQHHGHGIRUGHYHORSLQJVRIWVNLOOVDQGUHODWLRQVKLSVZLWKRXW

DGGLQJRXWVLGHNQRZOHGJH*DSVFDQH[LVWLQOHDGHUVKLSWUDLQLQJEHFDXVHH[HFXWLYHOHDGHUVRIWHQ

KDYHDVNHZHGSHUFHSWLRQRIWKHLUVXFFHVVLQLPSUHVVLRQPDQDJHPHQWSUDFWLFHVEHFDXVHWKH\

XVXDOO\GRQRWUHFHLYHFRQVWUXFWLYHIHHGEDFNIURPSHHUVDQGVXERUGLQDWHV 'HQVWHQ 

7KHUHDUHJDSVWRFRQVLGHUZKHQH[SORULQJOHDGHUVKLSGHYHORSPHQW+HUWOLQJHWDO

 FODLPHGDXQLYHUVDODSSURDFKGRHVQRWH[LVWE\VD\LQJWKDWGLIIHUHQWLQGXVWULHVIDFH

GLIIHUHQWFKDOOHQJHVVRWKHWUDQVIHUHQFHRIWUDLQLQJDSSURDFKHVZLOOQRWDOZD\VDGGUHVVUHOHYDQW

LVVXHVLQRQHLQGXVWU\DVLWZRXOGDQRWKHU/HHGVHWDO  DGGHGWKDWDQHHGH[LVWVIRUPRUH

LQIRUPDWLRQWRXQGHUVWDQGWKHUHODWLRQVKLSEHWZHHQWUDLQLQJDQGRUJDQL]DWLRQRXWFRPHVUHJDUGLQJ

WKHSDWWHUQVRIVHOIGHYHORSPHQWDODFWLYLWLHVWKDWOHDGHUVFKRRVHWRLPSOHPHQWIURPWKHLUWUDLQLQJ

DQGGHYHORSPHQW6HLGOHHWDO  DJUHHGWKDWDQHHGH[LVWVIRUPRUHLQIRUPDWLRQEHFDXVH

RUJDQL]DWLRQVXVHOHDGHUVKLSUHVHDUFKWRPDNHEHWWHUGHFLVLRQVEXWOLPLWHGHPSLULFDOHYLGHQFH

H[LVWVWRVXSSRUWOHDGHUVKLSWUDLQLQJDQGGHYHORSPHQWSURJUDPV¶HIIHFWLYHQHVV$OPRVWDOOW\SHV

RIRUJDQL]DWLRQVKDYHOHDGHUVKLSGHYHORSPHQWSURJUDPVEXWWKHLUDSSURDFKHVYDU\FRVWVYDU\



 

DQGWKHUHDUHLQFRQVLVWHQWRXWFRPHVGXHWROHDGHUDWWULEXWHVDQGFRPSHWHQFLHVDORQJVLGHWHDP

SHUIRUPDQFHDQGRUJDQL]DWLRQDOREMHFWLYHVDQGFXOWXUH +HUWOLQJHWDO %D\DW  

DGGHGWKDWGHYHORSPHQWLVFRPSOH[LQFUHPHQWDODQGRQJRLQJZLWKIHZDWWHPSWVWRSURGXFH

OHDGHUVKLSGHYHORSPHQWSURJUDPVWKDWLQFOXGHDFRPSOH[OHDGHUVKLSSHUVSHFWLYH%RDNDQG

&UDEEH  VXPPDUL]HGE\VD\LQJWKDWWKRXJKDJUHHPHQWH[LVWVWKDWH[SHULHQFHVFDQEHD

FDWDO\VWIRUOHDGHUVKLSGHYHORSPHQWWKHUHLVOLWWOHSULPDU\UHVHDUFKUHJDUGLQJWKHLPSDFW

SUDFWLFHVDQGH[SHULHQFHVKDYHRQGHYHORSLQJOHDGHUVKLSFDSDELOLWLHV

&RQFOXVLRQV

7KHUHDUHVHYHUDOSRLQWVWRFRQVLGHUZKHQHYDOXDWLQJWKHXVHRI1/3*ULPOH\  

HPSKDVL]HGWKDWHYHQWKRXJKWKHSULQFLSOHVDUHQRWDPHQDEOHWRUHVHDUFKHYDOXDWLRQ1/3LVVWLOO

ZRUWKXVLQJIRUSV\FKRDQDO\VLVEHFDXVHFOLQLFLDQVVWURQJO\VXSSRUWLWHYHQLILQVXIILFLHQWGDWD

H[LVWVWRVXSSRUWDSDUWLFXODUWKHRU\RISURIHVVLRQDODFFRXQWDELOLW\$OPHQGDUH]  DGPLWWHG

WKDWOLWWOHVXSSRUWH[LVWVIRU1/3WHQHWVEXWWKHUHLVVXSSRUWIRUXVLQJ1/3WRDSSO\WR

RUJDQL]DWLRQDOVHWWLQJVWKDWRIWHQSURGXFHSRVLWLYHUHVXOWV.RWHUDHWDO  GLVDJUHHGDQGVDLG

WKDW1/3JHQHUDWHVERWKRYHUSURPLVHGDQGXQGHUVXSSRUWHGEHQHILWV&RXFK  LGHQWLILHG

FRPSURPLVHVEHWZHHQWKHVHWZRYLHZSRLQWVQRWLQJWKDWSXEOLVKHG1/3LQWHUYHQWLRQVFDQVHUYHDV

DFKHFNOLVWLQVWHDGRIEOLQGDFFHSWDQFHRUGLVPLVVDO'XQN  VWDWHGWKDWZKHQFRQVLGHULQJ

)URPDEXVLQHVVSHUVSHFWLYH1/3VKRXOGIRFXVRQWKHEHQHILWLWEULQJVWRWKHRUJDQL]DWLRQRYHU

KRZRUZK\LWZRUNVEHFDXVHLWLVQRWDEODQNHWVROXWLRQKRZHYHULWFDQEHVXFFHVVIXOZKHQ

DSSOLHGZLWKRWKHUPDQDJHPHQWWHFKQLTXHV'DPDJHVXVWDLQHGWRWKH1/3EUDQGGXHWR

PLVUHSUHVHQWDWLRQVLVQRWHZRUWK\$QHHGH[LVWVIRUDGGLWLRQDOH[SORUDWLRQRIWKHFOLHQW¶V

VXEMHFWLYHH[SHULHQFHDQGWKDW1/3¶VH[WHQVLYHRUJDQL]DWLRQDOXVHGHPDQGVDWWHQWLRQ *UDQW

 



 

7KHERDUGVRIGLUHFWRUVDQGWRSPDQDJHPHQWQHHGWRDGGUHVVWKHFKDOOHQJHVWKDWFRPH

IURPLQHIIHFWLYHPDQDJHUVLQWKHLURUJDQL]DWLRQ .HUQV /HDGHUVKLSGHYHORSPHQW

SURJUDPVKHOSSURYLGHDPRUHSRVLWLYHLPSDFWEXWPDQ\XVHGLIIHUHQWPHDVXULQJZKLFKFUHDWHV

VHOHFWLRQFKDOOHQJHV+HUWOLQJHWDO  UHPLQGHGWKDWGLIIHUHQWLQGXVWULHVIDFHGLIIHUHQW

FKDOOHQJHVVRWKHWUDQVIHUHQFHRIWUDLQLQJDSSURDFKHVZLOOQRWDOZD\VDGGUHVVUHOHYDQWLVVXHVLQ

RQHLQGXVWU\DVLWZRXOGDQRWKHU:LJJLQVDQG6PDOOZRRG  DJUHHGWKDWWKHUHLVQRULJKW

DQVZHUWRVXSSO\LQJOHDGHUVKLSGHYHORSPHQWEHFDXVHZKDWZRUNVLQRQHFRQWH[WPD\QRWZRUNLQ

DQRWKHU5HJDUGOHVVRIWKHPRQH\RUJDQL]DWLRQVVSHQGRQOHDGHUVKLSWUDLQLQJWKHUHLVOLWWOH

HYLGHQFHWRSRUWUD\KRZOHDUQHGVNLOOVDSSO\WRWKHZRUNSODFH 5D\ 6LQFHPDQ\H[LVWLQJ

OHDGHUVKLSWUDLQLQJDQGGHYHORSPHQWSURJUDPVH[LVWDQGPRUHWKDQRQHSRWHQWLDOO\VXFFHVVIXO

RSWLRQPRUHUHVHDUFKQHHGVWRKDSSHQRQDSSO\LQJ1/3$GGLWLRQDOUHVHDUFKFDQGHWHUPLQH

ZKHWKHU1/3ZRXOGEHDQHIIHFWLYHDSSURDFKWRDGGUHVVWKHGLVHQJDJHPHQWSUREOHP

&KDSWHU6XPPDU\

&KDSWHUGLVFXVVHGWKH1/3LPSDFWRQHPSOR\HHHQJDJHPHQWDQGRUJDQL]DWLRQDO

HIIHFWLYHQHVV,WDOVRGLVFXVVHGWKHUHODWLRQVKLSEHWZHHQ1/3DQGHPSOR\HHHQJDJHPHQWDORQJ

ZLWKRWKHUHOHPHQWVRIOHDGHUVKLSVW\OHWKHUROHRIOHDGHUVKLSDQGOHDGHUVKLSWUDLQLQJ(DFKRI

WKHOHDGHUVKLSHOHPHQWVGLUHFWO\FRUUHODWHGZLWKHPSOR\HHHQJDJHPHQW%DWHVDQG:HLJKDUW

 VXSSRUWHGWKHYLHZWKDWHPSOR\HHHQJDJHPHQWFRQQHFWVZLWKOHDGHUVKLS¶VDELOLW\WR

FODULI\GLUHFWLRQLQVSLUHZLWKDYLVLRQDOLJQWRDPLVVLRQDQGJXLGHSXUSRVHIXODFWLRQ6LQFH

XQFRYHULQJWKHFRQQHFWLRQEHWZHHQWKHWRSLFVDQGVXEWRSLFVEXLOGLQJDFDVHIRU1/3DVD

OHDGHUVKLSWUDLQLQJWRROLVYLDEOH8VLQJ1/3DVDWUDLQLQJWRROIRFXVHVRQFRPPXQLFDWLRQDQG

EHKDYLRUFKDQJHVWKDWFDQLQIOXHQFHHPSOR\HHVDQGLPSURYHZRUNLQJUHODWLRQVKLSVDFKLHYLQJ

GHVLUHGRXWFRPHVWKDWLQFUHDVHFRPSHWLWLYHQHVV 1DKDU 



 

&KDSWHU0HWKRG

7KHSXUSRVHRIWKLVTXDOLWDWLYHGHVLJQVWXG\ZDVWRH[SORUH1/3FRQFHSWVOHDGHUVFDQXVH

WRLPSURYHHPSOR\HHHQJDJHPHQW7KHSUREOHPWKLVVWXG\DGGUHVVHGZDVORZHPSOR\HH

HQJDJHPHQWWKDWOHIWXQUHVROYHGFDQEHKDUPIXOWRDQRUJDQL]DWLRQ7KHEHQHILWRIDGGUHVVLQJ

WKLVSUREOHPLPSDFWVOHDGHUVE\WHDFKLQJWKHPKRZWRLPSURYHWKHLUOHDGHUVKLSVNLOOVDQG

DSSURDFKHVWKURXJK1/3DQGHPSOR\HHVE\JHQHUDWLQJPRUHHQJDJHPHQWDQGFUHDWLQJPRUH

VXFFHVVIURPKLJKHUHPSOR\HHHQJDJHPHQW$VLGHQWLILHGLQWKHOLWHUDWXUHUHYLHZWKHXSFRPLQJ

JHQHUDWLRQRIOHDGHUVGRHVQRWSRVVHVVWKHQHHGHGFRPSHWHQFLHVIRUWKHLUUROHVRWKHLU

GHYHORSPHQWLVFUXFLDOIRURUJDQL]DWLRQVXUYLYDODQGFRPSHWLWLYHQHVV -RQHV 6LPRQV

 FODLPHGWKDW1/3FRXOGHTXLSWKHXSFRPLQJJHQHUDWLRQRIOHDGHUVDV1/3WDNHVZKDWLV

PLVVLQJIURPWUDGLWLRQDOPHWKRGVDQGWHFKQLTXHVDQGEULQJVDZDUHQHVVRIZKDWPDNHVWKH

GLIIHUHQFH7KHVWXG\¶VDSSURDFKZDVWRLQWHUYLHZFHUWLILHG1/3SUDFWLWLRQHUVUHJDUGLQJWKHLU

LQVLJKWVDQGLGHDVRQZKLFK1/3FRQFHSWVDQGWHFKQLTXHVZRXOGEHEHVWIRUOHDGHUVWRDGRSWDQG

KRZ1/3FDQEHQHILWOHDGHUVDQGRUJDQL]DWLRQV&KDSWHUSUHVHQWVDUHYLHZRIWKHFKRVHQ

UHVHDUFKPHWKRGDQGGHVLJQSRSXODWLRQDQGVDPSOHGDWDFROOHFWLRQLQVWUXPHQWDWLRQDQG

SURFHGXUHVGDWDDQDO\VLVSURFHGXUHVDVVXPSWLRQVDQGOLPLWDWLRQVWUXVWZRUWKLQHVVDQGHWKLFDO

DVVXUDQFHV

5HVHDUFK0HWKRGDQG'HVLJQ

7KHUHVHDUFKPHWKRGVHOHFWHGIRUWKLVVWXG\ZDVDTXDOLWDWLYHUHVHDUFKDSSURDFKXVLQJ

WUDGLWLRQDOTXDOLWDWLYHPHWKRGV7KHSXUSRVHRIXVLQJWKLVPHWKRGRORJ\LVWRHQVXUHWKHUHVHDUFK

DOLJQVZLWKWKHVSHFLILFUHVHDUFKPHWKRGQDWXUHRIWKHUHVHDUFKSUREOHPSHUVRQDOH[SHULHQFH

IRXQGDWLRQDQGWKHDXGLHQFH,QTXDOLWDWLYHUHVHDUFKWKHSXUSRVHLVWRGHVFULEHH[SORUHDQG

EXLOGWKHRU\WKHQDWXUHLVKROLVWLFZLWKXQNQRZQYDULDEOHVDQGDSHUVRQDOYLHZWKHGDWDLV



 

WH[WXDOLQIRUPDWLYHDQGRIDVPDOOVDPSOHDQGFRPPXQLFDWHILQGLQJVWKURXJKZRUGVSHUVRQDO

YRLFHDQGOLWHUDU\VW\OH /HHG\ 2UPURG 7KHTXDOLWDWLYHUHVHDUFKDSSURDFKZDVDJRRG

ILWRIIHULQJWKHRSSRUWXQLW\WRJDLQDXQLTXHGHSWKRILQVLJKWZKHUHSDUWLFLSDQWVFDQIUHHO\

H[SUHVVWKRXJKWVDQGRSLQLRQVDQGJHQHUDWLQJYDOXDEOHLQIRUPDWLRQRQDWRSLFWKDWFDQIRUPXODWH

DWKHRU\7KHUHVHDUFKIDOOVXQGHUWKHLQGXFWLYHWHQDQWRITXDOLWDWLYHUHVHDUFKDQGVHHNVWRILQGD

QHZVHWRINQRZOHGJHPHDQLQJRUWKHRULHVDVDUHVXOWRIWKHVWXG\7KHVWXG\GLGQRWXVHRWKHU

GHVLJQRSWLRQVEHFDXVHWKH\ZHUHQRWDSSURSULDWHIRUWKHUHVHDUFKFXUUHQWO\FRQGXFWHG7KH

UHVHDUFKHUGLGQRWXVHDTXDQWLWDWLYHUHVHDUFKGHVLJQEHFDXVHWKHUHVHDUFKZDVVWULFWO\TXDOLWDWLYH

DQGFHQWHUHGRQZRUGVRYHUQXPEHUV7KHUHZDVQRWHQRXJKWLPHWRFRPSOHWHDPL[HGPHWKRGV

VWXG\WRLQFOXGHERWKTXDOLWDWLYHDQGTXDQWLWDWLYHGDWDRQWKHWRSLF$PL[HGPHWKRGVDSSURDFK

ZDVWKHPRVWLGHDOIRUWKHVWXG\EHFDXVHTXDOLWDWLYHGDWDFDQVHUYHDVDIRXQGDWLRQIRUWKH

TXDQWLWDWLYHLQIRUPDWLRQJDLQHGZKLFKWKHQDFWVWRVXSSRUWRUGLVSURYHWKHTXDOLWDWLYHILQGLQJV

+RZHYHUGXHWRWKHODFNRIWLPHWKHVWXG\XVHGDTXDOLWDWLYHDSSURDFKZLWKWKHRSWLRQWR

FRQGXFWDTXDQWLWDWLYHSLHFHDVSRVWGRFWRUDOUHVHDUFK

7KLVVWXG\VRXJKWWRGLVFRYHUKRZOHDGHUVXVLQJ1/3FRQFHSWVFDQLPSURYHHPSOR\HH

HQJDJHPHQW$Q\WKHRU\WKDWHPHUJHGIURPWKHGDWDJURXQGHGLQSUDFWLFDOUHDOZRUOGUHVHDUFK

FDQDSSO\WRRUJDQL]DWLRQDOVHWWLQJVRUXVHGWRLQIRUPOHDGHUV7KHUHVHDUFKXVHGWKHFHUWLILHG

1/3SUDFWLWLRQHUV YLHZVWRGHULYHDWKHRU\RIWKHLQWHUDFWLRQEHWZHHQOHDGHUVXVLQJ1/3DQGWKH

LPSDFWRQHQJDJHPHQWOHYHOV6HOHFWHGLQGLYLGXDOVSDUWLFLSDWHGLQDSLORWVWXG\LQWKHVWXG\

LWVHOIDQGIRUPHPEHUFKHFNLQJZKHQWKHVWXG\ZDVFRPSOHWH

7KHSULPDU\GDWDFROOHFWLRQPHWKRGFKRVHQIRUWKLVVWXG\LQFOXGHGLQWHUYLHZVDQG

REVHUYDWLRQV*ODWWKRUQ-R\QHUDQG5RXVH  EHOLHYHLQWHUYLHZVDUHRQHRIWKHEHVWZD\VWR

DVFHUWDLQLQGLYLGXDOSHUFHSWLRQVRUJURXSV6LQFH1/3SUDFWLWLRQHUVDUHVXEMHFWPDWWHUH[SHUWV



 

LQWHUYLHZVZHUHWKHPRVWHIIHFWLYHPHDQVRIFDSWXULQJWKHQHHGHGLQIRUPDWLRQ%R\FHDQG

0XQG\  VXSSRUWHGXVLQJLQWHUYLHZVEHFDXVHLQWHUYLHZVKHOSLGHQWLI\NH\WKHPHV

2EVHUYDWLRQVDUHDQHFHVVDU\SDUWRIDQDO\]LQJLQWHUYLHZVWRHQVXUHWKDWGDWDDFFXUDWHO\FDSWXUHV

SDUWLFLSDQWLQWHUYLHZV$SDUWLFLSDQW¶VWRQHRIYRLFHRUQRQYHUEDOJHVWXUHVPD\UHYHDOVRPHWKLQJ

PRUH7KHUHVHDUFKHUWKHQWULDQJXODWHVYDULDQFHVLQREVHUYDWLRQV7KHGDWDDQDO\VLVPHWKRG

LQYROYHVDQDO\]LQJFRQWHQWVDQGH[SORUDWRU\VWDWLVWLFVIURPSXEOLVKHGDUWLFOHVDQGVHWWLQJXSDQ

DSSURDFKIRUSUHOLPLQDU\WHVWV (GPRQGVRQ 0F0DQXV 

7KHUHVHDUFKGHVLJQZDVDWUDGLWLRQDOTXDOLWDWLYHDSSURDFKZLWKWKHUHVHDUFKDLPHGDW

SURGXFLQJDWKHRU\RUWKHRULHVWKURXJKPHWKRGLFDOJDWKHULQJDQGGDWDDQDO\VLV7KHUHVHDUFK

GHVLJQ¶VRUJDQL]DWLRQEHJDQZLWKDQDEVWUDFWWKHRU\RIDSURFHVVJURXQGHGLQWKHSDUWLFLSDQWV¶

YLHZPXOWLSOHVWDJHVRIGDWDFROOHFWLRQDQGWKHQWKHUHILQHPHQWDQGLQWHUUHODWLRQVKLSRI

LQIRUPDWLRQFDWHJRULHV5HVHDUFKGHVLJQVHFWLRQVDGGUHVVHGZHUHWKHGLVFXVVLRQRIWKHSRSXODWLRQ

DQGVDPSOHVDPSOLQJSURFHGXUHLQVWUXPHQWDWLRQYDOLGLW\UHOLDELOLW\GDWDFROOHFWLRQGDWD

DQDO\VLVDQGHWKLFDOFRQVLGHUDWLRQV7KHGHVLJQFORVHO\DOLJQVZLWKWKHDSSURDFKQHHGHGIRU

DSSURSULDWHGDWDFROOHFWLRQDQGDQDO\VLVWRDFFRPSOLVKWKLVVWXG\¶VJRDODQDO\]LQJ1/3¶VXVHDV

DOHDGHUVKLSWUDLQLQJWRROWRLPSURYHHPSOR\HHHQJDJHPHQW7KHTXDOLWDWLYHDSSURDFKDOLJQVZLWK

WKH'RFWRURI0DQDJHPHQWH[HFXWLYHOHDGHUVKLSGLVFLSOLQHE\GLVFRYHULQJKRZDSURFHVVDQG

LQWHUDFWLRQFDQFRQWULEXWHWRDQRUJDQL]DWLRQ¶VOHDGHUVKLS

3RSXODWLRQDQG6DPSOH

$SRSXODWLRQFRPSULVHVLQWHUYLHZHGRUREVHUYHGLQGLYLGXDOVGXULQJGDWDFROOHFWLRQ

/HY\/LYLQJRRG 0DUDQJD 7KLVVWXG\¶VUHVHDUFKSRSXODWLRQFRQVLVWHGRIFHUWLILHG

1/3SUDFWLWLRQHUVZKRSRVVHVVDZDUHQHVVRUH[SHULHQFHZLWKRUJDQL]DWLRQDOGHYHORSPHQWORFDWHG

LQWKH6RXWKZHVWHUQ8QLWHG6WDWHV1/3SUDFWLWLRQHUV¶VRXUFHVHOHFWLRQZDVSRVVLEOHWKURXJKDQ



 

RQOLQHVHDUFKIRULQGLYLGXDO1/3SUDFWLWLRQHUVZLWKLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV $UL]RQD

1HZ0H[LFR2NODKRPD7H[DV&DOLIRUQLD&RORUDGR1HYDGDDQG8WDK %HFDXVHWKH

SDUWLFLSDQWVZHUHLQGHSHQGHQW1/3SUDFWLWLRQHUVVLWHSHUPLVVLRQVZHUHQRWDUHTXLUHPHQW

*HQGHUDJHRUFHUWLILFDWLRQOHYHOZHUHQRWIDFWRUVFRQVLGHUHGLQSDUWLFLSDQWVHOHFWLRQ7KHJRDO

ZDVWRVWXG\SDUWLFLSDQWVEDVHGRQWKHGDWDVDWXUDWLRQQHHG7KHUHVHDUFKVWXG\VHWWLQJZDV

YLUWXDOGXHWRWKHFXUUHQWLPSDFWRIWKHFRURQDYLUXVSDQGHPLF7KHUHVHDUFKHUSURYLGHGQR

LQFHQWLYHVWRJDLQSDUWLFLSDWLRQLQWKHVWXG\

7KHH[SHFWHGSDUWLFLSDQWVL]HZDVSHRSOHPLQLPXPDQGXSWRSHRSOHPD[LPXP

EDVHGRQWKHPHGLDQVDPSOHVL]HIRUDTXDOLWDWLYHLQWHUYLHZWKDWVXSSRUWVUHVHDUFKSUHVHQWHGE\

.LQGVLNRDQG3ROWLPlH  7KHLUUHVHDUFKIRXQGWKDWWKHPHGLDQVDPSOHVL]HIRUTXDOLWDWLYH

LQWHUYLHZVLVEHWZHHQWRLQWHUYLHZVSHUVWXG\7KLVVWXG\FRQVLVWHGRISDUWLFLSDQWVZLWK

DFRQWLQJHQF\WRLQFUHDVHWKHVDPSOHLIWKHLQWHUYLHZVFROOHFWHGGLGQRWSURYLGHHQRXJKGDWDIRU

DGHTXDWHDQDO\VLV)LIW\LQWHUYLHZVZRXOGEHWKHPD[LPXPDPRXQWFROOHFWHGEHFDXVHLIGDWD

VDWXUDWLRQGRHVQRWRFFXUDWWKDWSRLQWWKHUHVXOWVZRXOGEHLQFRQFOXVLYH7KHSUREDELOLW\H[LVWHG

WKDWOHVVWKDQSDUWLFLSDQWLQWHUYLHZVZRXOGEHDFKLHYDEOHLIGDWDVDWXUDWLRQRFFXUUHG6KDZ

 JXLGHGWKDWLIWKHWKHPHVDQGLVVXHVEHFRPHVDWXUDWHGWKHUHVHDUFKHUVKRXOGGLVFRQWLQXH

WKHGDWDFROOHFWLRQSURFHVVZLWKQRQHZGDWDGLVFRYHU\2VREDMRDQG0RRUH  H[SODLQHG

KRZVDPSOHVL]HVYDU\EHFDXVHWKHLQGXVWU\¶VGDWDFROOHFWLRQPHWKRGVDQGSRSXODWLRQVL]HFDQ

LQIOXHQFHWKHSURFHVV

$VDPSOLQJSURFHGXUHLVDSURFHVVIRUGHWHUPLQLQJSRSXODWLRQVL]HDQGLGHQWLI\LQJ

LQGLYLGXDOVLQWKHSRSXODWLRQ &UHVZHOO 7KHVDPSOLQJSURFHGXUHFKRVHQIRUWKLV

TXDOLWDWLYHVWXG\ZDVSXUSRVLYHVDPSOLQJ%HFDXVHWKHUHZDVQRVHWQXPEHUUHTXLUHGIRUWKH

SRSXODWLRQEXWDQDSSURDFKIRFXVHGRQGDWDVDWXUDWLRQWKHUHVHDUFKHUFKRVHDSXUSRVLYH



 

DSSURDFK$FFRUGLQJWR6KDZ  LQSXUSRVLYHVDPSOLQJWKHUHVHDUFKHUGRHVQRWGHWHUPLQH

WKHQXPEHURISDUWLFLSDQWVLQDGYDQFHEXWVL]HGHWHUPLQDWLRQSURJUHVVHVWKURXJKLQGXFWLYHGDWD

DQDO\VLVE\LGHQWLI\LQJFRPPRQWKHPHVDQGSDWWHUQVIRUXQGHUVWDQGLQJWKHUHVHDUFKSUREOHP

XQWLOGDWDVDWXUDWLRQRFFXUV:KHQGDWDVDWXUDWLRQRFFXUVWKHUHLVQRORQJHUDQHHGIRUDGGLWLRQDO

SDUWLFLSDQWVZKLFKLVZK\WKHH[DFWQXPEHURISDUWLFLSDQWVLQWHUYLHZHGDGMXVWVWRWKHGDWD

FROOHFWLRQILQGLQJVDQGVDWXUDWLRQ5HLV$PRULPDQG0HOmR  DGGHGWKDWLQ

SXUSRVLYHVDPSOLQJSDUWLFLSDQWVHOHFWLRQKDSSHQVEHFDXVHWKH\PHHWVSHFLILFSUHGHWHUPLQHG

FULWHULDUHOHYDQWWRDGGUHVVLQJWKHUHVHDUFKTXHVWLRQ7KLVVWXG\XVHGSXUSRVLYHVDPSOLQJEHFDXVH

WKHWDUJHWHGSRSXODWLRQQHHGHGWRPHHWWKHVSHFLILFFULWHULDRIEHLQJDFHUWLILHG1/3SUDFWLWLRQHU

'DWD&ROOHFWLRQ,QVWUXPHQWDWLRQDQG3URFHGXUHV

7KHIROORZLQJSUHVHQWVWKHGDWDFROOHFWLRQPHWKRGVDQGLQVWUXPHQWVIRUWKLVWUDGLWLRQDO

TXDOLWDWLYHVWXG\7KHUHVHDUFKHUILOOVWKHUROHRIWKHPRVWLPSRUWDQWLQVWUXPHQWLQTXDOLWDWLYH

UHVHDUFK7KLVVWXG\LQFOXGHGRWKHULQVWUXPHQWVIRUGDWDFROOHFWLRQLQDGGLWLRQWRWKHUHVHDUFKHU¶V

LQWHUYLHZVREVHUYDWLRQVDQGGRFXPHQWDQDO\VLV7KHUHVHDUFKHUFROOHFWHGIHHGEDFNIURPRWKHU

VFKRODUVDQGVXEMHFWPDWWHUH[SHUWVEHIRUHPRYLQJIRUZDUGZLWKGDWDFROOHFWLRQ

'DWDFROOHFWLRQVWDUWVZLWKLGHQWLI\LQJDQGFRQWDFWLQJWKHSDUWLFLSDQWV3DUWLFLSDQW

VRXUFLQJVWDUWHGZLWKFDOOLQJ1/3SUDFWLWLRQHUVDQGFRPSDQLHVRUVHQGLQJDUHFUXLWPHQWHPDLO

IRXQGLQ$SSHQGL[' 7KHUHVHDUFKSRUWLRQRIWKHGDWDFROOHFWLRQEHJDQDIWHUHDFKSDUWLFLSDQW

VLJQHGWKHLQIRUPHGFRQVHQWIRUP SUHVHQWHGLQ$SSHQGL[$ *DLQLQJSDUWLFLSDQWV¶YHUEDODQG

ZULWWHQLQIRUPHGFRQVHQWHQVXUHVWKH\UHFRJQL]HWKHUHVHDUFKDQGWKHSRWHQWLDOULVNVLQYROYHG

1XQDQDQG<HQLFLRJOX  GHILQHGLQIRUPHGFRQVHQWDVSDUWLFLSDQWVDJUHHLQJWRSURYLGHGDWD

IRUUHVHDUFKSXUSRVHVLQDJUHHDQFHWKDWWKH\XQGHUVWDQGWKHLPSOLFDWLRQVRISURYLGLQJVXFKGDWD



 

(PDLODQGSKRQHFDOOVZHUHWKHPHWKRGVXVHGWRFRQWDFWSDUWLFLSDQWVWRUHTXHVWWKHLU

SDUWLFLSDWLRQ

7KHSULPDU\GDWDFROOHFWLRQLQVWUXPHQWZDVVHPLVWUXFWXUHGLQWHUYLHZV,QWHUYLHZVILW

ZLWKWKHSURJUDPGLVFLSOLQHRIH[HFXWLYHOHDGHUVKLSEHFDXVHWKH\DOORZIRUSDUWLFLSDQWLQVLJKWV

DERXWOHDGHUVKLSRULQIRUPDWLRQWKDWLVEHQHILFLDOWROHDGHUVKLS,QSUHSDUDWLRQIRUWKLVIXOOVFDOH

VWXG\DQGDQ\QHHGHGUHILQHPHQWVWKHUHVHDUFKHUFRQGXFWHGDSLORWVWXG\RIWKUHHSDUWLFLSDQWV

3LORWWHVWLQJLVLPSRUWDQWIRUHVWDEOLVKLQJFRQWHQWYDOLGLW\LQVFRULQJDQGLPSURYLQJTXHVWLRQV

VFDOHVDQGIRUPDW &UHVZHOO 7KHWKUHHSHUVRQVZHUHWKUHHDGGLWLRQDOSDUWLFLSDQWVVHOHFWHG

RXWVLGHRIWKHVHOHFWHGIRUWKHDFWXDOGDWDFROOHFWLRQSURFHVV

7KHLQWHUYLHZVXVHGDOLVWRIVWUXFWXUHGRSHQHQGHGUHVHDUFKTXHVWLRQV IRXQGLQ

$SSHQGL[% WRFROOHFWLQIRUPDWLRQ(DFKVWXG\SDUWLFLSDQWUHFHLYHGWKHVDPHUHVHDUFKTXHVWLRQV

JHDUHGWRZDUGFDSWXULQJWKHSDUWLFLSDQW¶VSHUFHSWLRQV7KHLQWHUYLHZSURWRFROWHPSODWHVKRZQLQ

$SSHQGL[&HQVXUHGWKHLQWHUYLHZVIROORZHGWKHJXLGHOLQHV7KHLQWHUYLHZSURWRFROWHPSODWH

LQFOXGHGDQRSHQLQJLQWURGXFWLRQDQGLGHQWLILHGSDUWLFLSDQWVHOHFWLRQWKHUHVHDUFKTXHVWLRQVD

FORVLQJDQGDVHFWLRQIRULQWHUYLHZHUFRPPHQWVDQGREVHUYDWLRQVDVPHPRZULWLQJ7KH

UHVHDUFKHUFRQGXFWHGLQWHUYLHZVDWWKHSDUWLFLSDQW¶VFRQYHQLHQFH(DFKLQWHUYLHZZDV

DSSUR[LPDWHO\PLQXWHVZLWKDFRXSOHUXQQLQJORQJHUWKDQDQKRXU

7KHUHVHDUFKHUUHFRUGHGDQGWUDQVOLWHUDWHGWKHYLUWXDOLQWHUYLHZVIRUHDVLHUDQGPRUH

HIILFLHQWFRGLQJRINH\ZRUGVLGHQWLI\LQJWKHPHVDQGREVHUYLQJ$GLJLWDOYRLFHUHFRUGHUVHUYHG

DVWKHSULPDU\GDWDFROOHFWLRQWRROIRUUHFRUGLQJWKHLQWHUYLHZVLQSHUVRQDQGRYHUWHOHFRQIHUHQFH

PHGLD=RRPZDVWKHWHOHFRQIHUHQFHPHGLDFKRVHQWRFRQGXFWWKHLQWHUYLHZVZKLFKDPHHWLQJ

UHFRUGLQJRSWLRQDYDLODEOH7KHUHVHDUFKHUDOVRXVHGWKLVUHFRUGLQJRSWLRQDVDVHFRQGDU\



 

UHFRUGLQJVRXUFH$KDQGKHOGDXGLRUHFRUGLQJGHYLFHDQGL0DF3URZHUHWKHGDWDFROOHFWLRQWRROV

XVHGZLWKWKHDXGLRLQIRUPDWLRQWUDQVFULEHGWRD0LFURVRIW:RUGILOH

'XULQJWKHLQWHUYLHZVWKHUHVHDUFKHUXVHGWKHVHFRQGREVHUYDWLRQLQVWUXPHQWZLWKPHPR

QRWHVRIHDFKSDUWLFLSDQW¶VLQWHUYLHZFDSWXULQJREVHUYDWLRQLQIRUPDWLRQ LHERG\ODQJXDJH 

0HPRZULWLQJVWDUWHGZLWKWKHILUVWLQWHUYLHZDQGVHUYHGDGXDOSXUSRVHRIDZDUHQHVVJURXQGLQJ

WKHUHVHDUFKHUZKLOHSURYLGLQJDQRSSRUWXQLW\WRGHYHORSH[SODQDWLRQVRIHPHUJLQJFRQFHSWVIRU

GLVFRYHULQJH[LVWLQJLQWHUUHODWLRQVKLSV /DZUHQFH 7DU 7KHREVHUYDWLRQVSHFWUXPOLHVLQ

WKHPLGGOHRIQRQSDUWLFLSDQWREVHUYDWLRQDQGSDUWLFLSDQWREVHUYDWLRQ7KHLQWHUYLHZHU

SDUWLFLSDWHGWRWKHH[WHQWRIUHFRUGLQJDQGLQWHUYLHZLQJWKHSDUWLFLSDQWVEXWQRWJRLQJVRIDUDVDQ

HWKQRJUDSK\

'RFXPHQWDQDO\VLVZDVDQRWKHULQVWUXPHQWVXSSRUWLQJWKHLQWHUYLHZVSUHSDULQJWKH

UHVHDUFKHURQWKHWRSLFDQGGHYHORSLQJLQWHUYLHZTXHVWLRQV7KHOLWHUDWXUHUHYLHZSUHVHQWHGLQ

&KDSWHUVHUYHGDVWKHGRFXPHQWDQDO\VLVWKDWH[DPLQHGH[LVWLQJVRXUFHVWKHPDMRULW\ZLWKLQ

WKHSDVWILYH\HDUVVXFKDVMRXUQDODUWLFOHVDQGSXEOLVKHGGLVVHUWDWLRQV7KHGRFXPHQWDQDO\VLV

DFWHGDVDIRXQGDWLRQRIH[LVWLQJUHVHDUFKRQWKHWRSLFFRPSDUHGZLWKQHZILQGLQJVXQFRYHUHGE\

WKHLQWHUYLHZVREVHUYDWLRQVDQGSRWHQWLDOVXUYH\V7KHILQDOVWHSLQWKHGDWDFROOHFWLRQSURFHVV

ZDVPHPEHUFKHFNLQJZKHUHWKHSDUWLFLSDQWVUHFHLYHGWKHILQGLQJVWRYDOLGDWHDFFXUDF\$IWHU

FRPSOHWLQJWKHGDWDFROOHFWLRQVWDJHVSUHSDUDWLRQIRUDQDO\VLVWRRNSODFH

'DWD$QDO\VLV3URFHGXUHV

'DWDDQDO\VLVSURYLGHVDVWHSE\VWHSSURFHVVIRUDQDO\]LQJWKHFROOHFWHGLQIRUPDWLRQDQG

DUULYLQJDWWKHVWXG\¶VFRQFOXVLRQV7KHGDWDDQDO\VLVPHWKRGXVHGWRDQDO\]HWKHGDWDZDV

TXDOLWDWLYH4XDOLWDWLYHDQDO\VLVDOORZVWKHUHVHDUFKHUWRJDWKHULQIRUPDWLRQDQGLQVLJKWVWKDW

WUDGLWLRQDOGDWDDQDO\VLVWHFKQLTXHVZRXOGRWKHUZLVHPLVV /DZUHQFH 7DU 7KH



 

UHVHDUFKHUFKRVHDTXDOLWDWLYHDQDO\VLVPHWKRGEHFDXVHLWXVHVDQLQGXFWLYHDSSURDFKWKDWEHVW

DOLJQHGZLWKWKHSURJUDPGLVFLSOLQHRIGLVFRYHULQJLQWHUDFWLRQVWKURXJKLQWHUYLHZVDQGILWZLWK

WKHUHVHDUFK¶VSXUSRVH7KHSXUSRVHZDVWRGHWHUPLQHWKHSDUWVWKHUHODWLRQVKLSEHWZHHQWKH

SDUWVDQGWKHUHODWLRQVKLSZLWKWKHZKROH$QDO\]LQJWKHGDWDIURPWKHSDUWLFLSDQWV¶OLYHG

H[SHULHQFHVDOORZVWKHUHVHDUFKHUWRXQGHUVWDQGKRZWKH\FRQVWUXFWWKHLUZRUOG /DZUHQFH 

7DU 7KH1/3SUDFWLWLRQHUV¶SHUVSHFWLYHVVHUYHGWRIRFXVRQDQHPHUJLQJWKHRU\DERXWWKH

SDUWLFXODUUHDOLW\RIHQJDJHPHQW3URFHGXUHVVKRXOGDFWDVJXLGHOLQHVEXWDOORZIRUIOH[LELOLW\WR

QRWKLQGHUWKHDQDO\WLFSURFHVVDQGIRVWHUFUHDWLYLW\7KHUHZHUHVHYHUDOVWHSVXVHGWRGHULYHWKH

VWXG\¶VILQGLQJVDQGFRQFOXVLRQV7KHGDWDDQDO\VLVSURFHVVRXWOLQHGLQDOLVWIRUPDWRI

FRQVHFXWLYHVWHSVDOVRXVHGHODERUDWLRQRQWKHDSSURDFKDQGDFWLRQDVIROORZV

 'DWDFROOHFWLRQWRLQFOXGHUHFRUGLQJV&ROOHFWLQJGDWD²VHPLVWUXFWXUHGLQWHUYLHZV

REVHUYDWLRQVDQGSUHYLRXVSXEOLFDWLRQVRQWKHWRSLF

 ,QLWLDOGDWDDQDO\VLVDQGFRGLQJ8VLQJWKUHHDQDO\VLVOHYHOVSUHVHQWLQJWKHSDUWLFLSDQW¶V

VWRU\ZLWKRXWLQWHUSUHWDWLRQRUDEVWUDFWLRQXVLQJILHOGQRWHVLQWHUYLHZWUDQVFULSWVDQG

UHVHDUFKHULQWHUSUHWDWLRQVWRFUHDWHDGHVFULSWLYHQDUUDWLYHDQGXVLQJKLJKOHYHOVRI

LQWHUSUHWDWLRQDQGDEVWUDFWLRQWREXLOGDWKHRU\ /DZUHQFH 7DU 7KHTXDOLWDWLYH

DQDO\VLVLQYROYHGFRGLQJWKHDVVLJQPHQWEDVHGRQWKHPHVDQGFRQFHSWVIRXQGDQG

FRPELQLQJWKHPLQWRUHODWHGFDWHJRULHVZKLFKWKHUHVHDUFKHUWKHQLGHQWLILHGDQGYHULILHG

DJDLQVWWKHGDWDDQGXVLQJVHOHFWLYHFRGLQJDWWHPSWVWRLQWHJUDWHWKHFDWHJRULHVLQWRD

WKHRU\ZKLFKDFFRXQWVIRUWKHSKHQRPHQRQXQGHULQYHVWLJDWLRQ

 'DWDRUJDQL]DWLRQ8VLQJFRPSDUDWLYHDQDO\VLVFRPSDUHVWKHGDWDFDWHJRULHVDQG

FRQVWUXFWVWKDWHPHUJHGWRXQFRYHUWKHYDULRXVFDVHVLPLODULWLHVDQGGLIIHUHQFHV

/DZUHQFH 7DU 



 

 'DWDUHGXFWLRQ5HPRYLQJDQ\LUUHOHYDQWGDWD

 6\QWKHVLV8VLQJWKHRUHWLFDOVDPSOLQJWRGHWHUPLQHHPHUJLQJFDWHJRULHV

 7ULDQJXODWLRQ7ULDQJXODWLQJWRREVHUYHVYDULDQFHVE\ORRNLQJIRUNH\ZRUGVDQGWUHQGV

 'HYHORSPHQWRIDWKHRU\8VLQJWKHSDUWLFLSDQWVYLHZVDQGGDWDDQDO\VLVWRGHYHORSD

WKHRU\

 *DSVDQGRSSRUWXQLWLHVDVVHVVPHQW$QDO\]LQJDQ\JDSVDQGDVVHVVLQJRSSRUWXQLWLHV

 'LVFXVVLRQRQILQGLQJV6XPPDUL]LQJWKHUHVXOWVRIWKHVWXG\

7KHUHVHDUFKHUPDQXDOO\WUDQVFULEHGWKHLQWHUYLHZVPDQXDOO\DQDO\]HGWKHWUDQVFULSWV

UHYLHZHGWKHWKHPHVDQGFDSWXUHGWKHPDMRULGHDV7KHUHVHDUFKHUGLGQRWXVHDFRPSXWHU

DVVLVWHGTXDOLWDWLYHGDWDDQDO\VLVVRIWZDUHSURJUDPWRDQDO\]HWKHVWXG\¶VGDWD3DUWLFLSDQWV

UHFHLYHGWKHWKHPHVWRVXSSRUWYDOLGDWLQJWKHLUWUXVWZRUWKLQHVVWKURXJKPHPEHUFKHFNLQJ/HY\

HWDO  VXJJHVWHGWKDWWKHGHVFULSWLRQRIWKHWKHPHVQHHGVWRSURYLGHFOHDUH[SODQDWLRQV

7KHIUHTXHQF\RIDWKHPHGHWHUPLQHVLWVLQFOXVLRQLQWKHILQGLQJV)RUWKLVVWXG\WKHUHVHDUFKHU

UHFRUGHGHPRWLRQVWRGHWHUPLQHWKHVLJQLILFDQFHRIWKHPHVWKDWLQYROYHGFDSWXULQJSDUWLFLSDQW

TXRWHVDGGLQJGHSWKDQGEUHDGWKWRWKHWKHPHV

'DWDFRGLQJLQYROYHVRUJDQL]LQJWKHGDWDE\EUDFNHWLQJFKXQNVDQGGHILQLQJDZRUGWR

UHSUHVHQWWKHFDWHJRU\ &UHVZHOO 7H[WGDWDEURNHGRZQLQWRFDWHJRULHVXVLQJD

FRPELQDWLRQRIHPHUJLQJDQGSUHGHWHUPLQHGFRGHV$QHLJKWVWHSPHWKRGEDVHGRQ7HVFK¶V

 PRGHORIWKHFRGLQJSURFHVVKHOSHGPDSWH[WXDOXQLWVLQWRGDWDWHUPVWKDWFRQVLVWHGRIWKH

IROORZLQJJHWWLQJDVHQVHRIWKHZKROHFKRRVLQJRQHLQWHUYLHZDQGORRNLQJIRUXQGHUO\LQJ

PHDQLQJFRPSOHWLQJRWKHULQWHUYLHZVDQGPDNLQJDOLVWRIDOOWRSLFVFRPSDULQJWKHOLVWZLWKWKH

GDWDWRORRNIRUQHZFDWHJRULHVDQGFRGHVUHGXFLQJWKHOLVWRIFDWHJRULHVWKURXJKJURXSLQJ



 

PDNLQJDILQDOVHOHFWLRQRIFDWHJRULHVDQGDOSKDEHWL]LQJWKHPDVVHPEOLQJWKHGDWDPDWHULDODQG

SHUIRUPLQJSUHOLPLQDU\DQDO\VLVDQGWKHQLIQHFHVVDU\UHFRGLQJWKHH[LVWLQJGDWD

7UDQVODWLQJGDWDWHUPVLQWRWKHPHVVWDUWVZLWKJDWKHULQJGHWDLOHGLQIRUPDWLRQDQGIRUPLQJ

WKHPLQWRFDWHJRULHV &UHVZHOO &RGHVFDQIDOOLQWRWKUHHFDWHJRULHVFRGHVRQH[SHFWHG

WRSLFVEDVHGRQFRPPRQVHQVHDQGH[LVWLQJOLWHUDWXUHXQDQWLFLSDWHGFRGHVDQGXQXVXDOFRGHV

WKDWDUHRIFRQFHSWXDOLQWHUHVWWRUHDGHUV7KHFDWHJRULHVEHFRPHWKHPHVWKDWGHYHORSLQWR

SDWWHUQVWKHRULHVRUJHQHUDOL]DWLRQVLQZKLFKWKHUHVHDUFKHUFRPSDUHVDJDLQVWWKHH[LVWLQJ

OLWHUDWXUH7KHPHVFRQVLVWRILQWHUFRQQHFWHGWKRXJKWVRUSDUWVOLQNHGWRDZKROH7KHWKHPHVDQG

FRPELQDWLRQVRIWKHPHVVHUYHDVWKHVWXG\¶VILQGLQJVDQGGHYHORSLQWRDWKHRUHWLFDOSURFHVV

PRGHO%H\RQGGHVFULSWLRQWKHPHLGHQWLILFDWLRQIRUPVFRPSOH[WKHPHFRQQHFWLRQV$IWHU

WUDQVFULELQJDQGWULDQJXODWLQJWKHLQWHUYLHZVWKHUHVHDUFKHUFRPSOHWHGPHPEHUFKHFNLQJWR

YDOLGDWHWKHDQDO\VLVWRHQVXUHWUXVWZRUWKLQHVV7KHUHVHDUFKHUGLGQRWDSSO\YDULDWLRQVWRWKH

WUDGLWLRQDOTXDOLWDWLYHGHVLJQ

$VVXPSWLRQVDQG/LPLWDWLRQV

$QDVVXPSWLRQLVDFRQGLWLRQRQHWDNHVIRUJUDQWHGWKDWDFWVDVDIRXQGDWLRQIRUWKHVWXG\

/HHG\ 2UPURG $VVXPSWLRQVDUHZKDWDGGVPHDQLQJWRDUHVHDUFKSURMHFWDQGDOORZ

WKHUHVHDUFKSUREOHPWRH[LVW%DVLFDVVXPSWLRQVXQGHUOLHWKHUHVHDUFKWRSLF$VVXPSWLRQVDUH

EHOLHIVDVVXPHGWREHWUXHEXWUHPDLQXQYHULILHG0DNLQJDVVXPSWLRQVNQRZQDOORZVIRUEHWWHU

HYDOXDWLRQVRIWKHFRQFOXVLRQVWKDWUHVXOWIURPVXFKDVVXPSWLRQV7KHSHUVRQDOH[SHULHQFHRI

UHYLHZLQJPXFKGDWDVXSSRUWLQJWKHDVVXPSWLRQVDQGSHUVRQDOWHVWLPRQ\RIVHYHUDOIDPRXV

PRWLYDWRUVRQWKHLUXVHRI1/3OHGWRVHYHUDODVVXPSWLRQVWKDW1/3FDQEHHIIHFWLYHLQDQ

RUJDQL]DWLRQDOVHWWLQJ7KHUHVHDUFKHU¶VDVVXPSWLRQVIRUWKLVVWXG\ZHUHDVIROORZV7KHILUVW

DVVXPSWLRQZDVWKDWOHDGHUVZLWK1/3WUDLQLQJZRXOGEHPRUHHIIHFWLYHDQGZRXOGEHDEOHWR



 

LQFUHDVHHPSOR\HHHQJDJHPHQWPRUHHIIHFWLYHO\7KHVHFRQGDVVXPSWLRQZDVWKDW1/3FRQFHSWV

DUHDWUDLQLQJWRROWKDWLVPRUHHIIHFWLYHWKDQWUDGLWLRQDOOHDGHUVKLSWUDLQLQJWRROV7KHWKLUG

DVVXPSWLRQZDVWKDW1/3SUDFWLWLRQHUVDUHWKHH[SHUWVZKRZLOONQRZZKLFKWDUJHWHG1/3

FRQFHSWVOHDGHUVVKRXOGDGRSWIRUVXFFHVV7KHIRXUWKDVVXPSWLRQZDVWKDWLIDQRUJDQL]DWLRQ

WUDLQVDOOLWVOHDGHUVZLWK1/3WKHQWKH\ZLOOEHPRUHVXFFHVVIXOWKDQFRPSHWLQJRUJDQL]DWLRQV

7KHILIWKDVVXPSWLRQZDVWKDW1/3FRQFHSWVVWDQGWKHWHVWRIWLPHDQGFDQFRQWLQXHWRDSSO\

HYHQDVRUJDQL]DWLRQVDQGWHFKQRORJ\GHYHORS7KHDVVXPSWLRQVWKDWIHOOVSHFLILFDOO\XQGHUWKH

TXDOLWDWLYHPHWKRGRORJ\ZHUHWKDW1/3SUDFWLWLRQHUVDUHWKHH[SHUWVZKRZLOONQRZZKLFK

WDUJHWHG1/3FRQFHSWVOHDGHUVVKRXOGDGRSWIRUVXFFHVVWKDW1/3FRQFHSWVDUHDWUDLQLQJWRRO

WKDWLVPRUHHIIHFWLYHWKDQWUDGLWLRQDOOHDGHUVKLSWUDLQLQJWRROVDQGWKDWOHDGHUVZLWK1/3

WUDLQLQJZRXOGEHPRUHHIIHFWLYHDQGDEOHWRLQFUHDVHHPSOR\HHHQJDJHPHQWPRUHHIIHFWLYHO\

7KHVHLQKHUHQWDVVXPSWLRQVQHHGHGDGGLWLRQDOUHVHDUFKIRUYHULILFDWLRQ(DFKDVVXPSWLRQUHODWHV

WRWKHRWKHUVWDUWLQJZLWKWKHSUDFWLWLRQHUVDQGHQGLQJZLWKORQJWHUPVXFFHVV7KHUHVHDUFKHU

QRWHGWKDWWKHVWXG\ZRXOGQRWDGGUHVVDOOWKHDVVXPSWLRQVEXWWKHVHDVVXPSWLRQVPD\VHUYHDV

OLPLWDWLRQVDQGVXJJHVWLRQVIRUIXWXUHUHVHDUFK

7ZRWHQDQWVUHPDLQHGRSHQWRYDULHGGDWDH[SODQDWLRQVRULQWHUSUHWDWLRQVPLQLPL]LQJ

SUHFRQFHLYHGLGHDVDERXWWKHUHVHDUFKSUREOHPDQGGDWD7RHQVXUHDSSO\LQJWKHVHWZRWHQDQWV

WKHUHVHDUFKHUQHHGHGWRDGGUHVVDQ\ELDVHVWKDWFRXOGLPSRVHFORVHGPLQGHGQHVVRUJHQHUDWH

SUHFRQFHLYHGLGHDV%LDVLVWKHSRVVLEOHEHOLHIVH[SHFWDWLRQVDQGFXOWXUDOYDOXHVWKDWSUHGLVSRVH

WKHUHVHDUFKHUWRLQWHUSUHWGDWDLQDVSHFLILFZD\ /HHG\ 2UPURG %LDVHVH[LVWLQDOO

UHVHDUFKVRWKHUHVHDUFKHUVKRXOGEHKRQHVWDQGWUDQVSDUHQW

$SUHOLPLQDU\ELDVWKDWH[LVWHGZDVWKDW1/3SURGXFHVHIIHFWLYHUHVXOWV6LQFHELDVH[LVWV

WKHFRQVFLRXVQHVVRIWKHVRXUFHVVHOHFWHGDQGPDWHULDOVUHYLHZHGDUHLPSRUWDQW7KH



 

SUHFRQFHLYHGQRWLRQZDVWKDW1/3FRXOGEHDQHIIHFWLYHWUDLQLQJWRROIRUOHDGHUVKLS

HIIHFWLYHQHVV$ELDVH[LVWHGWKDWOHDGHUVXVLQJ1/3ZLOOEULQJRUJDQL]DWLRQDOVXFFHVV0DQ\

UHVRXUFHVFROOHFWHGVHHPHGWRDJUHHZLWKWKLVFRQFHSWDVGDWDFROOHFWHGIURPSDUWLFLSDQWV

SURYLGHGPRUHLQVLJKWDERXW1/3$SRVVLELOLW\H[LVWHGWKDWWKHUHVHDUFKHUPD\ILQGWKDW1/3

FDQQRWEHXVHIXODVDOHDGHUVKLSWUDLQLQJWRRORUWKDWLWPD\QRWSURYHHIIHFWLYHLQOHDGHU

DSSOLFDWLRQVRURUJDQL]DWLRQDOVHWWLQJV

7KHUHVHDUFKHULPSOHPHQWHGDFRQVFLRXVHIIRUWWRUHPDLQRSHQPLQGHGIRUDGLVFRYHU\

FHQWHUHGDSSURDFKWRWKHILQGLQJVQRRWKHUELDVH[LVWHGLQWKLVVWXG\5HYLHZLQJVWXG\

OLPLWDWLRQVDQGDFNQRZOHGJLQJUHVHDUFKJDSVDUHLPSRUWDQWIRUPDLQWDLQLQJFUHGLELOLW\WKURXJK

UHVHDUFKHUELDV:KHQFRQGXFWLQJUHVHDUFKWKHUHVHDUFKHUFROOHFWHGDOOVRXUFHVUHJDUGOHVVRIWKH

VWDQFHRQWKHWRSLF0DQ\VRXUFHVERWKLQIDYRURIDQGDFNQRZOHGJLQJWKHOLPLWDWLRQVRI1/3VR

WKHOLWHUDWXUHUHYLHZUHIOHFWHGQRELDVPHHWLQJWKHLQKHUHQWJRDORIFROOHFWLQJGDWDEH\RQGWKH

UHVHDUFKHU¶VOHQV7KHKRSHZDVWKDWWKHDVVXPSWLRQVZHUHFRUUHFWZLWKILQGLQJVSUHVHQWHG

REMHFWLYHO\FRQVLGHULQJDOOYDULDWLRQVRIGDWDH[SODQDWLRQ

/LPLWDWLRQVDUHZHDNQHVVHVWKDWFDQFDVWGRXEWRQWKHVWXG\¶VUHVXOWVDQGFRQFOXVLRQV

/HHG\ 2UPURG /LPLWDWLRQVDUHWKHUHVHDUFKDVSHFWVRXWVLGHWKHUHVHDUFKHU¶VFRQWURO

DQGLGHQWLILHGE\FRQVLGHULQJZKDWPD\RFFXUWKDWFRXOGJHQHUDWHZHDNQHVVHVLQWKHVWXG\)RU

WKLVVWXG\WKHILUVWOLPLWDWLRQZDVXVLQJWKHWHOHFRPPXQLFDWLRQPHWKRGVWKDWPD\SURYLGH

GLIIHUHQWUHVXOWVIURPLQSHUVRQREVHUYDWLRQV7KHWHOHFRPPXQLFDWLRQUHFRUGLQJFRXOGIDLO

UHVXOWLQJLQRQO\WKHWUDQVFULSWLRQIRUREVHUYDWLRQV$QDXGLRUHFRUGLQJGHYLFHRIIHUHGDEDFNXS

IRUUHFRUGLQJWKHLQWHUYLHZV7KHVHFRQGOLPLWDWLRQZDVWKH1/3SUDFWLWLRQHU¶VELDVYDULDEOH

7KHUHZDVQRFRQWURORUPHDVXUHPHQWDV1/3SUDFWLWLRQHUVVSRNHIURPSURYHQH[SHULHQFHVRU

ELDVHGRSLQLRQV5HVHDUFKTXHVWLRQVKHOSHGGHWHUPLQHDSUDFWLWLRQHU¶VH[SHULHQFHZLWKDSSO\LQJ



 

1/3LQRUJDQL]DWLRQDOVHWWLQJVZKLOHDFFXUDWHO\PHDVXULQJWKHYDOLGLW\RIWKHLULQIRUPDWLRQ

([SHFWDWLRQVZHUHWKDWWKHPHDVXUHVZRXOGEHDFFXUDWHHQRXJKWRIRUPXODWHDJHQHUDODJUHHPHQW

LQIDYRURIRUDJDLQVWXVLQJ1/3WRLPSURYHHQJDJHPHQW7KHWKLUGOLPLWDWLRQLQYROYHG

SUHFRQFHLYHGSHUVRQDOELDV7KHUHVHDUFKHUEHOLHYHGWKHDVVXPSWLRQVWREHWUXHVRDGGLWLRQDO

PHDVXUHVFRQVLVWHGRIHQVXULQJPLQLPDOGDWDFROOHFWLRQLQIOXHQFH7KHIRXUWKOLPLWDWLRQZDV

LQVWUXPHQWUHOLDELOLW\EHFDXVHWKHUHVHDUFKHUSHUIRUPHGWKHFRGLQJDQGGDWDDQDO\VLVGHSHQGHG

RQWKHFRGLQJ0HPEHUFKHFNLQJLQYROYHGWKHSDUWLFLSDQWVYHULI\LQJWKDWWKHUHVHDUFKHU

FRPSOHWHGWKHFRGLQJDFFXUDWHO\UHSUHVHQWLQJZKDWWKH\VDLG$ZDUHQHVVRIDVVXPSWLRQVDQG

OLPLWDWLRQVHQVXUHVWKHUHVHDUFKHUFDQPDNHDFRQVFLRXVHIIRUWWRPHGLDWHSRWHQWLDOOLPLWDWLRQV

DQGHQVXUHWKHWUXVWZRUWKLQHVVRIWKHGDWDSUHVHQWHG

7UXVWZRUWKLQHVV

7UXVWZRUWKLQHVVLQWKLVTXDOLWDWLYHUHVHDUFKVWXG\HQFRPSDVVHGGHSHQGDELOLW\FUHGLELOLW\

WUDQVIHUDELOLW\DQGFRQILUPDELOLW\$FFRUGLQJWR/HY\HWDO  WUXVWZRUWKLQHVVFUHGLELOLW\

FRQILGHQWLDOLW\DQGGDWDGHSHQGDELOLW\HQVXUHGWKHTXDOLW\RIHPSLULFDOUHVHDUFK)UHQFK  

HPSKDVL]HGWKDWWKHUHVHDUFKHU¶VUHVSRQVLELOLW\LVWRHQVXUHWKHUHVHDUFKKDVFUHGLELOLW\YDOLGLW\

UHOLDELOLW\DQGWULDQJXODWLRQ7KHIROORZLQJRXWOLQHVWKHVWHSVWKHUHVHDUFKHUWRRNWRVHFXUH

WUXVWZRUWKLQHVVLQWKHILQGLQJVSURGXFHGE\WKHVWXG\

&UHGLELOLW\GHPRQVWUDWHVWKHGHJUHHRIPDWFKLQJEHWZHHQWKHUHDOLWLHVRIWKHVWXG\

SDUWLFLSDQWV /HY\HWDO )UHQFK  H[SODLQHGWKHLPSRUWDQFHRIUHVHDUFKHUFUHGLELOLW\

EHFDXVHDQ\SHUVRQDOFKDQJHVELDVLQFRPSHWHQFHRUUHMHFWLRQE\WKHSDUWLFLSDQWVFDQQHJDWLYHO\

LPSDFWDQGGLVFUHGLWWKHUHVHDUFK&UHGLELOLW\LQYROYHVSHHUEULHILQJVPHPEHUFKHFNVRQJRLQJ

UHFRUGLQJVRIH[SHFWDWLRQVDQGWKHGHJUHHRIHQJDJHPHQW,QWKLVVWXG\PHPEHUFKHFNLQJDQG

WULDQJXODWLRQHQVXUHGWKHFUHGLELOLW\RIWKHILQGLQJV2QFHWKHPHLGHQWLILFDWLRQWRRNSODFHWKH



 

UHVHDUFKHUVKDUHGWKHILQGLQJVZLWKSDUWLFLSDQWVWRYDOLGDWHWKHLUWUXVWZRUWKLQHVVWKURXJKPHPEHU

FKHFNLQJ

0HPEHUFKHFNLQJRFFXUVZKHQSDUWLFLSDQWVYDOLGDWHWKHILQDOUHSRUW¶VDFFXUDF\VSHFLILF

GHVFULSWLRQVRUWKHPHVLQWKHILQGLQJV &UHVZHOO 0HPEHUFKHFNLQJLQWKLVVWXG\

FRQWDLQHGDIROORZXSHPDLOWRSUHVHQWWKHILQGLQJVDQGDOORZSDUWLFLSDQWVWKHRSSRUWXQLW\WR

FRPPHQW'DWDDQDO\VLVLQFOXGHGWULDQJXODWLRQWRHQVXUHWKHVWXG\¶VILQGLQJVZHUHFUHGLEOHDQG

WKHUHVHDUFKHUFRXOGEHFRQILGHQWLQWKHILQGLQJV7ULDQJXODWLRQLQYROYHVFRPSDULQJPXOWLSOHGDWD

VRXUFHVLQVHDUFKRIFRPPRQWKHPHVWRJLYHFUHGLELOLW\WRWKHILQGLQJV /HHG\ 2UPURG 

7KLVVWXG\XVHGWULDQJXODWLRQWRVXSSRUWWKHLQWHUYLHZUHVXOWVDQGREVHUYDWLRQV7ULDQJXODWLQJWKH

LQWHUYLHZVKHOSHGLGHQWLI\WKHPHVEHWZHHQWKHSDUWLFLSDQW¶VLQIRUPDWLRQZKLFKHVWDEOLVKHG

FUHGLELOLW\

7UDQVIHUDELOLW\IRFXVHVRQWKHGHJUHHWRZKLFKUHVXOWVDSSO\LQGLIIHUHQWVHWWLQJVRU

FRQWH[WV /HY\HWDO 5HFRJQL]LQJWKHFRQWH[WDQGUHYLHZLQJWKHDVVXPSWLRQVFHQWUDOWR

WKHUHVHDUFKHQVXUHGWUDQVIHUDELOLW\IRUWKLVVWXG\%HFDXVHGDWDFROOHFWLRQLQYROYHGDVDPSOH

FRQVLVWLQJRQO\RIFHUWLILHG1/3SUDFWLWLRQHUVWKLVWUDQVODWHGWRPLQLPXPYDULDWLRQVIURPSHUVRQ

WRSHUVRQZLWKWKHVDPHPLQLPXPYDULDWLRQWUDQVODWHGZLWKDODUJHUSRSXODWLRQSURGXFLQJVLPLODU

UHVXOWV7KHUHVHDUFKHUDSSOLHGWKHVDPHLQWHUYLHZSURWRFRODQGSURFHVVWRWKHSDUWLFLSDQWVDVLW

ZRXOGLIWKDWQXPEHULQFUHDVHGWRSDUWLFLSDQWVRUEH\RQGWRHQVXUHDFRQVLVWHQWDQG

WUDQVIHUDEOHSURFHVV8QGHUVWDQGLQJWUDQVIHUDELOLW\UHVXOWVGHSHQGVXSRQLQVWLWXWLRQDO

FKDUDFWHULVWLFVRUJHRJUDSKLFDODUHDWRDVVHVVWKHH[WHQWWRZKLFKWKHILQGLQJVPD\DSSO\LQD

GLIIHUHQWVHWWLQJ7KRXJKWKHJHRJUDSKLFUHJLRQIRFXVHGH[FOXVLYHO\RQWKH6RXWKZHVWHUQ8QLWHG

6WDWHVWKLVVWXG\FDQUHDOLVWLFDOO\VFDOHZLWKGLIIHUHQWILQGLQJVSURGXFHGE\LQWHUYLHZLQJ1/3

SUDFWLWLRQHUVRXWVLGHRIWKHUHJLRQ



 

'HSHQGDELOLW\UHTXLUHVWKDWUHSHWLWLRQRIWKHVWXG\XVLQJWKHVDPHPHWKRGVDQG

SRSXODWLRQSURGXFHVVLPLODUUHVXOWV /HY\HWDO )RUUHVHDUFKWREHGHSHQGDEOHLWVKRXOG

GHVFULEHWKHVWXG\¶VSODQQLQJDQGH[HFXWLRQDQGWKDWWKHGDWDFROOHFWLRQIROORZVDQDSSURDFKIRU

WUXVWZRUWKLQHVV/LOOLV  UHFRPPHQGHGDQLQWHUYLHZJXLGHIRUFRQVLVWHQF\DQGDQHXWUDO

DSSURDFKWRTXHVWLRQVDQGSUREHVWRDYRLGELDV7KHLQWHUYLHZSURWRFROHQVXUHGDFRQVLVWHQW

LQWHUYLHZSURFHVVEHWZHHQSDUWLFLSDQWVZLWKWKHVDPHUHVHDUFKTXHVWLRQVDVNHGIRU

GHSHQGDELOLW\7KHGLVVHUWDWLRQVXSHUYLVRUDFWHGDVDQLQTXLU\DXGLWWRUHYLHZDQGH[DPLQHWKH

UHVHDUFKSURFHVVDVDQRXWVLGHSHUVRQWRHQVXUHFRQVLVWHQWDQGUHSOLFDEOHILQGLQJV2WKHUWKDQWKH

GLIIHUHQFHVEHWZHHQHDFK1/3SUDFWLWLRQHU¶VRSLQLRQWKHH[SHFWDWLRQZDVWKDWWKHVWXG\

SURGXFHGGHSHQGDEOHUHVXOWVDQGFRXOGRFFXUZLWKDQRWKHUVDPSOH

4XDOLWDWLYHUHVHDUFKUHTXLUHVRWKHUVWRFRQILUPRUFRUURERUDWHFUHGLELOLW\*LOO*LOODQG

5RXOHW  GHILQHGFRQILUPDELOLW\DVZKHQWKHUHVHDUFKHULGHQWLILHVDVVXPSWLRQVDQG

SUHGLOHFWLRQVLQWKHLUVWXG\¶VILQGLQJVWKURXJKGDWDLQWHUSUHWDWLRQ&RQILUPDELOLW\DOORZVWKH

UHVHDUFKHUWRUHFRJQL]HWKHDVVXPSWLRQVRUYDOXHVVKDSLQJWKHLUUHVHDUFK7ZRFRQILUPDELOLW\

SULQFLSOHVKHOSHGH[SORUHDVVXPSWLRQVUHYHDOXQGHUO\LQJHSLVWHPRORJLFDODVVXPSWLRQVDQG

HQVXUHLQWHUSUHWDWLRQVDUHJURXQGHGLQHYLGHQFH *LOOHWDO 7KHHSLVWHPRORJLFDO

DVVXPSWLRQLQWKLVVWXG\ZDVWKDWVLQFH1/3KHOSVWRLPSURYHDSHUVRQ¶VFRPPXQLFDWLRQVNLOOV

DQGDELOLW\WRLQIOXHQFHRWKHUVLIOHDGHUVUHFHLYH1/3WUDLQLQJWKH\ZLOOEHFRPHPRUHHIIHFWLYH

OHDGHUVZKLFKZLOOLQWXUQLPSURYHHPSOR\HHHQJDJHPHQW'DWDDQDO\VLVLQFOXGHGFKHFNLQJDQG

UHFKHFNLQJWKHGDWDWKURXJKRXWWKHVWXG\WRHQVXUHFRQILUPDELOLW\$FRQGXFWHGDXGLWWUDLO

HVWDEOLVKHGFRQILUPDELOLW\E\UHFRUGLQJLQWHUHVWLQJWRSLFVZULWLQJGRZQWKRXJKWVRQFRGLQJZLWK

WKHUDWLRQDOHIRUPHUJLQJVRPHRIWKHPDQGH[SODLQLQJWKHPHDQLQJRIWKHWKHPHV7KH

UHVHDUFKHUFRQGXFWHGDVHDUFKWRLGHQWLI\QHJDWLYHLQVWDQFHVWKDWFRQWUDGLFWSULRUREVHUYDWLRQV



 

PDLQWDLQLQJFRQILUPDEOHUHVXOWV(DFKRIWKHFUHGLEOHWUDQVIHUDEOHGHSHQGDEOHDQGFRQILUPDEOH

HOHPHQWVHQVXUHGWUXVWZRUWKLQHVVLQUHVHDUFK

(WKLFDO$VVXUDQFHV

)HGHUDOSXEOLFSROLF\UHTXLUHVUHVHDUFKLQYROYLQJKXPDQVXEMHFWVWRXQGHUJRDQ

,QVWLWXWLRQDO5HYLHZ%RDUG +RWWHQVWHLQ 7KH&RORUDGR7HFKQLFDO8QLYHUVLW\,QVWLWXWLRQDO

5HYLHZ%RDUG &78,5% UHTXLUHVHWKLFDODVVXUDQFHVIRUUHVSRQVLEOHUHVHDUFKWKDWDOLJQVZLWKWKH

%HOPRQW5HSRUW7KH%HOPRQW5HSRUWPDQGDWHVWKDWUHVHDUFKHUVLQIRUPVXEMHFWVRIWKHVWXG\

VXEMHFWVSDUWLFLSDWHYROXQWDULO\WKHEHQHILWVPXVWRXWZHLJKWKHULVNVDQGWKHVHOHFWLRQRI

VXEMHFWVPXVWEHHTXLWDEOH7KHUHVHDUFKHUDSSOLHGHWKLFDOSULQFLSOHVWKURXJKRXWWKHUHVHDUFK

SURFHVVWRHQVXUHDOLJQPHQWZLWKWKH&78,5%VWDQGDUGV

'DWDFROOHFWLRQEHJLQVZLWK,5%DSSURYDOIROORZHGE\REWDLQLQJQHFHVVDU\SHUPLVVLRQV

DQGFROOHFWLQJLQIRUPHGFRQVHQWIRUPV7KHRYHUDOOULVNIRUKDUPWRSDUWLFLSDQWVZDVPLQLPDOWR

QRQH7KHUHVHDUFKHUIROORZHGWKH%HOPRQW5HSRUWSURWRFROSULQFLSOHVGXULQJWKHVWXG\WRHQVXUH

QRKDUPFDPHWRWKHSDUWLFLSDQWV7KLVUHSRUWHQVXUHVWKDWKXPDQVXEMHFWUHVHDUFKDOLJQVZLWKWKH

WKUHHHWKLFDOSULQFLSOHVRIUHVSHFWIRUSHUVRQVEHQHILFHQFHDQGMXVWLFH %HUNRZLW] 7KH

UHVHDUFKHUHQVXUHGUHVSHFWIRUSHUVRQVE\QRWSUHVVXULQJLQIRUPHGFRQVHQWDQGHQVXULQJ

SDUWLFLSDQWVIXOO\JUDVSWKHUHVHDUFK¶VSXUSRVH7KHSDUWLFLSDQWV¶ZHOIDUHZDVDSULRULW\VRDQ\

UHVHDUFKQRWSHUFHLYHGDVEHQHILFLDOZRXOGQRWFRQWLQXH3DUWLFLSDQWVGLGQRWKDYHWRVKDUH

DQ\WKLQJWRRSHUVRQDORUPDGHWKHPIHHOXQFRPIRUWDEOH)DLUSDUWLFLSDQWVHOHFWLRQRFFXUUHGZLWK

WKHLGHDOGLVWULEXWLRQRIULVNDQGEHQHILWVGXULQJUHVHDUFKWRRNSODFHHQVXULQJMXVWLFH7KH

UHVHDUFKHUIROORZHGDFRQVLVWHQWDQGDSSURYHGLQWHUYLHZSURFHVVIRUHDFKSDUWLFLSDQWWRHQVXUH

HTXDOLW\DQGUHGXFHULVN



 

,QDGGLWLRQWRHQGLQJGDWDFROOHFWLRQLIWKHSDUWLFLSDQWZDVXQFRPIRUWDEOHRUSHUFHLYHG

LQMXVWLFHWRRNSODFHWKHUHZHUHPHDVXUHVSXWLQSODFHWRSURWHFWWKHSDUWLFLSDQWVLQWKH

GRFXPHQWDWLRQ7KH3ULYDF\$FWRIUHTXLUHVWKHSURWHFWLRQRISHUVRQDOLQIRUPDWLRQXVHGLQ

UHVHDUFK DVFLWHGLQ6WUDQJHU&KDOPHUV 1LFRO 3VHXGRQ\PODEHOLQJRIWKHFDSWXUHG

GDWDDQGWKHSDUWLFLSDQW¶VLGHQWLW\HQVXUHGDQRQ\PLW\ HJSDUWLFLSDQWVODEHOHG333«

DQG3 DQGWKDWWKHUHVHDUFKHUGLGQRWGLVFORVHSHUVRQDOLGHQWLILFDWLRQLQIRUPDWLRQ3XEOLF

ILQGLQJVVKRZHGWKDWDQ\QDPHUHSODFHPHQWVZLWKJHQHUDOWLWOHVHQVXUHGSDUWLFLSDQWDQRQ\PLW\

7KHUHVHDUFKHUGHOHWHGLQIRUPDWLRQWKDWZDVXQQHFHVVDU\WRLQFOXGHWRHQVXUHDQHWKLFDOUHVHDUFK

SUHVHQWDWLRQDQGRYHUVKDULQJGLGQRWRFFXU7KHUHVHDUFKVWXG\GLGQRWFDSWXUHRUFROOHFW

GHPRJUDSKLFLQIRUPDWLRQ7KHUHVHDUFKHUZLOOVWRUHWKH=RRPUHFRUGLQJV=RRPWUDQVFULSWLRQV

DQGDOOSDUWLFLSDQWGDWDFROOHFWHGLQSDVVZRUGSURWHFWHGILOHVIRUVHYHQ\HDUVIRUIROORZRQ

GHVWUXFWLRQ7KHKDQGKHOGUHFRUGLQJGHYLFHLVLQDORFNHGILOLQJFDELQHWNHSWVDIHIRUVHYHQ\HDUV

LQWKHUHVHDUFKHU¶VKRPH$IWHUVHYHQ\HDUVWKHUHVHDUFKHUZLOOWKHQZLSHFOHDQDOOWKHGDWD7KH

UHVHDUFKHUKDVVROHDFFHVVWRWKHSDVVZRUGSURWHFWHGILOHVHQVXULQJWKHVDIHJXDUGLQJRI

LQIRUPDWLRQ

7KHUHZHUHPHDVXUHVSXWLQSODFHWRSURWHFWWKHSDUWLFLSDQWVGXULQJLQWHUYLHZV7KH

LQIRUPHGFRQVHQWZDVLPSRUWDQWEHFDXVHLWFRQWDLQHGDVWDQGDUGVHWRIHOHPHQWVWKDW

DFNQRZOHGJHVSURWHFWLRQRIKXPDQULJKWVWRLQFOXGHLGHQWLILFDWLRQRIWKHUHVHDUFKHUWKH

VSRQVRULQJLQVWLWXWLRQWKHSXUSRVHRIWKHVWXG\WKHEHQHILWVIRUSDUWLFLSDWLQJWKHOHYHODQGW\SH

RISDUWLFLSDQWLQYROYHPHQWQRWDWLRQRIULVNVWRWKHSDUWLFLSDQWDJXDUDQWHHRIFRQILGHQWLDOLW\WR

WKHSDUWLFLSDQWDVVXUDQFHWKDWWKHSDUWLFLSDQWFDQZLWKGUDZDWDQ\WLPHDQGSURYLVLRQRIQDPHV

RISHUVRQVWRFRQWDFWLITXHVWLRQVDULVH &UHVZHOO 7KHUHVHDUFKHUFROOHFWHGWKH

SDUWLFLSDQWV¶LQIRUPHGFRQVHQWEHIRUHEHJLQQLQJWKHILUVWPHHWLQJ3DUWLFLSDQWVUHFHLYHGD



 

SUHOLPLQDU\RYHUYLHZRXWOLQLQJWKHUHVHDUFKSURMHFW&OHDUH[SHFWDWLRQVHQVXUHGWKDWWKH

SDUWLFLSDQWVZHUHDZDUHRIZKDWWKHSURMHFWHQWDLOHG7LPHSURYLVLRQVDOORZHGGLVFXVVLRQRIDQ\

SRWHQWLDOULVNVDQGUHVHUYDWLRQVWRHQVXUHSDUWLFLSDQWVIHOWSURWHFWHGDQGVDWLVILHGWRPRYH

IRUZDUG

7KHUHVHDUFKDOLJQHGZLWKHWKLFDOUHVHDUFKH[SHFWHGZLWKLQWKHSURJUDPGLVFLSOLQHRI

OHDGHUVKLSEHFDXVHLWVSXUSRVHZDVWRDGGEHQHILWWRWKDWGHPRJUDSKLFDQGRUJDQL]DWLRQV

2UJDQL]DWLRQVZLOOEHDZDUHRIDQDGGLWLRQDOWRROWRFUHDWHPRUHHIIHFWLYHOHDGHUVDQGLPSURYH

WKHLURUJDQL]DWLRQ VHQJDJHPHQW/HDGHUVPD\LPSURYHWKHLUDELOLW\WRSRVLWLYHO\LQIOXHQFHE\

OHDUQLQJQHZVNLOOVWHFKQLTXHVDQGVWUDWHJLHV6WXG\ILQGLQJVEHQHILWWKHGLVFLSOLQHE\

DGGUHVVLQJDJDSLQNQRZOHGJHXVLQJ1/3WRLPSURYHHPSOR\HHHQJDJHPHQW6RFLHW\PLJKW

EHQHILWWKURXJKLQFUHDVHGHPSOR\HHHQJDJHPHQWZKLFKZRXOGPHDQKDSSLHUSHRSOHLI

RUJDQL]DWLRQVDFURVVLQGXVWULHVDGRSWHGDPRUHFRPSUHKHQVLYHHIIHFWLYHOHDGHUVKLSDSSURDFK

&KDSWHU6XPPDU\

7KHUHVHDUFKPHWKRGRORJ\XVHGDWUDGLWLRQDOTXDOLWDWLYHDSSURDFK7KHUHVHDUFKGHVLJQ

VHFWLRQVDGGUHVVHGWKHGLVFXVVLRQRIWKHSRSXODWLRQDQGVDPSOHVDPSOLQJSURFHGXUH

LQVWUXPHQWDWLRQYDOLGLW\UHOLDELOLW\GDWDFROOHFWLRQGDWDDQDO\VLVDQGHWKLFDOFRQVLGHUDWLRQV

7KHVWXG\GDWDFROOHFWLRQSODQLQYROYHGREWDLQLQJ,5%DSSURYDOEHIRUHGDWDFROOHFWLRQLQYROYLQJ

KXPDQVXEMHFWVWKHQLGHQWLI\LQJDQGFRQWDFWLQJWKHSDUWLFLSDQWVJDLQLQJSDUWLFLSDQWV¶YHUEDODQG

ZULWWHQLQIRUPHGFRQVHQWWRHQVXUHWKH\DFFHSWHGWKHUHVHDUFKXQGHUVWXG\DQGWKHSRWHQWLDOULVNV

LQYROYHGFRQGXFWLQJDSLORWVWXG\IRUIHHGEDFNVFKHGXOLQJDQGFRQGXFWLQJWKHLQWHUYLHZV

REVHUYDWLRQVPHPRZULWLQJPHPEHUFKHFNLQJDQGHQGLQJZLWKSUHSDUDWLRQIRUDQDO\VLV7KH

VWXG\GDWDDQDO\VLVSODQLQFOXGHGFROOHFWLQJGDWDWRLQFOXGHUHFRUGHGLQWHUYLHZV,QLWLDOGDWD

DQDO\VLVWRRNSODFHWKDWLQYROYHGFRGLQJGDWDRUJDQL]DWLRQGDWDUHGXFWLRQV\QWKHVLV



 

WULDQJXODWLRQGHYHORSPHQWRIWKHRU\LGHQWLI\LQJJDSVDQGRSSRUWXQLWLHVDQGHQGHGZLWKD

GLVFXVVLRQRQILQGLQJV7KHQH[WFKDSWHU&KDSWHURIIHUVDGHVFULSWLRQRIWKHVWXG\VDPSOH

,QFOXGHGDUHUHVXOWVDQGDGLVFXVVLRQRIWKHVWXG\¶VILQGLQJV7KHOLWHUDWXUHUHYLHZSURYLGHGWKH

FRQWH[WIRUWKHUHVHDUFKDSSOLFDWLRQ



 

&KDSWHU)LQGLQJV

&KDSWHUSURYLGHVDUHVWDWHPHQWRIWKHVWXG\SXUSRVHSUREOHPDQGFRQFHSWXDO

IUDPHZRUNWRFRQQHFWWKHQHHGIRUWKHVWXG\¶VILQGLQJV7KLVTXDOLWDWLYHUHVHDUFKVWXG\DLPHGWR

H[SORUHWKH1/3FRQFHSWVOHDGHUVPLJKWDSSO\WRLPSURYHHPSOR\HHHQJDJHPHQWLQWKH

6RXWKZHVWHUQ8QLWHG6WDWHV7KHSUREOHPDGGUHVVHGZDVWKDWOHDGHUVQHHGWRLPSURYHORZ

HPSOR\HHHQJDJHPHQW7KHFRQFHSWXDOIUDPHZRUN GHSLFWHGLQ)LJXUH&KDSWHU H[SORUHGWKH

UHODWLRQVKLSEHWZHHQOHDGHUV¶XVHRI1/3DQGWKHLPSDFWRQHPSOR\HHHQJDJHPHQW7KH

FRQFHSWXDOIUDPHZRUNHOHPHQWVDUHDQRYHUYLHZRI1/3HPSOR\HHHQJDJHPHQWOHDGHUVKLS

VNLOOVDQGQHHGHGOHDGHUVKLSWUDLQLQJIRUHIIHFWLYHQHVV

7KHUHDUHVHYHUDOHOHPHQWVRIWKLVFKDSWHUEH\RQGDOLJQPHQWZLWK&KDSWHU7KHFKDSWHU

RIIHUVDGHVFULSWLRQRIWKHVWXG\VDPSOHZKLFKSUHVHQWVWKHSRSXODWLRQDQGVDPSOHLQIRUPDWLRQ

7KHUHVXOWVFRYHUWKHSLORWVWXG\DQGWKHGDWDDQDO\VLVSURFHVV6WXG\ILQGLQJVSUHVHQWWKHIDFWV

RUJDQL]HGLQWRWKHPHV7KHFKDSWHUFRQFOXGHVZLWKDWUDQVLWLRQWR&KDSWHUZKLFKSURYLGHVWKH

GLVFXVVLRQDQGFRQFOXVLRQZKHUHOLPLWDWLRQVLQWHUSUHWDWLRQVDQGSUDFWLFHLPSOLFDWLRQVRIVWXG\

ILQGLQJVDQGSUHVHQWVUHFRPPHQGDWLRQVIRUIXWXUHUHVHDUFK

'HVFULSWLRQRIWKH6WXG\6DPSOH

7KHWDUJHWSRSXODWLRQFRQVLVWHGRIFHUWLILHG1/3SUDFWLWLRQHUVORFDWHGLQWKH6RXWKZHVWHUQ

8QLWHG6WDWHVZLWKIDPLOLDULW\RUH[SHULHQFHLQRUJDQL]DWLRQDOGHYHORSPHQW1/3SUDFWLWLRQHUV¶

VRXUFHVHOHFWLRQZDVSRVVLEOHWKURXJKDQRQOLQHVHDUFKIRULQGLYLGXDO1/3SUDFWLWLRQHUVZLWKLQ

WKH6RXWKZHVWHUQ8QLWHG6WDWHV $UL]RQD1HZ0H[LFR2NODKRPD7H[DV&DOLIRUQLD&RORUDGR

1HYDGDDQG8WDK 

7KHUHVHDUFKHUFRQWDFWHGSDUWLFLSDQWVWKURXJKRQHRUPRUHPHWKRGVXVLQJWKHZHEHPDLO

RUSKRQH6WXG\SDUWLFLSDQWVFRQVLVWHGRIERWKPDOHVDQGIHPDOHVDQGYDULHGLQDJH$OO



 

SDUWLFLSDQWVZHUHRYHUWKHDJHRI,QDGGLWLRQDOOSDUWLFLSDQWVKHOGPDVWHUSUDFWLWLRQHU1/3

FHUWLILFDWLRQV7KHSDUWLFLSDQWVZHUHIURPYDU\LQJVWDWHVRFFXSDWLRQDOUROHVSUDFWLWLRQHUOHYHO

DQGGHPRJUDSKLFEDFNJURXQGV7KHVDPSOLQJPHWKRGXVHGZDVSXUSRVLYHVDPSOLQJ$SXUSRVLYH

VDPSOLQJPHWKRGZDVLGHDOEHFDXVHWKHUHZDVQRVHWQXPEHUUHTXLUHGRIWKHSRSXODWLRQEXW

UDWKHUDQDSSURDFKIRFXVHGRQGDWDVDWXUDWLRQ5HLVHWDO  DGGHGWKDWSDUWLFLSDQWVHOHFWLRQ

LQSXUSRVLYHVDPSOLQJPHDQVWKH\PHHWVSHFLILFSUHGHWHUPLQHGFULWHULDUHOHYDQWWRDGGUHVVLQJWKH

UHVHDUFKTXHVWLRQ6LQFHWKHWDUJHWHGSRSXODWLRQPXVWPHHWWKHVSHFLILFVWDQGDUGVRIEHLQJD

FHUWLILHG1/3SUDFWLWLRQHUWKHVDPSOLQJZDVSXUSRVLYH

)LJXUHSURYLGHVDFKDUWDVDYLVXDORIWKHQXPEHURI1/3SUDFWLWLRQHUVZKRSDUWLFLSDWHG

LQWKHVWXG\7KHILQDOVDPSOHVL]HZDVDWRWDORISDUWLFLSDQWV(DFKSDUWLFLSDQWSURYLGHGD

VLJQHGLQIRUPHGFRQVHQWIRUPDQGJDYHDYHUEDODJUHHPHQWEHIRUHEHJLQQLQJWKHLQWHUYLHZ7KH

UHVHDUFKHUFRQWDFWHGFRPSDQLHVRULQGLYLGXDOSDUWLFLSDQWVWRUHTXHVWSDUWLFLSDWLRQ7KH

ERWWRPOLQHVWDUWHGDWDQGLQFUHDVHGLQLQFUHPHQWVRIXQWLOWKHYHU\WRSOLQHZKLFKVLJQLILHV

WKHWRWDOQXPEHURISDUWLFLSDQWVFRQWDFWHGDW2IWKRVHFRQWDFWHGDJUHHGWRSDUWLFLSDWHLQ

WKHVWXG\7KUHHSUDFWLWLRQHUVZHUHSDUWRIWKHSLORWDQGLQWHUYLHZHGIRUWKHVWXG\7KHRWKHU

ZKRDJUHHGWRSDUWLFLSDWHZHUHXQDEOHWRFRPSOHWHWKHLULQWHUYLHZ



 

"     




  


 !







             





)LJXUH*UDSKLFRIWKH1/3SUDFWLWLRQHUVWXG\SDUWLFLSDWLRQGLVSOD\LQJWKHSDUWLFLSDQWV

LQWHUYLHZHGRIWKHFRQWDFWHG

5HVXOWV

7KHSLORWVWXG\SURFHVVODLGWKHIRXQGDWLRQIRUIXWXUHSDUWLFLSDQWLQWHUYLHZV7KH

UHVHDUFKHUVHOHFWHGWKHILUVWWKUHHDYDLODEOH1/3SUDFWLWLRQHUVDVWKHSLORWSDUWLFLSDQWV$OOWKUHH

SLORWSDUWLFLSDQWVFRPSOHWHGWKHLULQWHUYLHZVRQWKHVDPHGD\IROORZLQJWKHSUHVHWLQWHUYLHZ

SURWRFRODVH[SHFWHGIRUIXWXUHSDUWLFLSDQWV$WWKHHQGRIHDFKLQWHUYLHZWKHSULPDU\

LQYHVWLJDWRUUHTXHVWHGIHHGEDFNRQWKHVHOHFWLRQSURFHVVDQGLQWHUYLHZ7KHSLORWJURXS¶V

IHHGEDFNZDVWKDWWKHUHVHDUFKTXHVWLRQVZHUHH[FHOOHQWEXWWKDWLWZRXOGEHKHOSIXOWRSURYLGHD

FRQWH[WRIWKHFRQFHSWVLQWKHTXHVWLRQEHIRUHDVNLQJWKHTXHVWLRQWRPDNHLWFOHDUHU7KH

UHVHDUFKHUDSSOLHGWKHSLORWJURXS¶VIHHGEDFNDQGGHYHORSHGDGHVFULSWLRQRIWKHFRQFHSWVSRVW

SLORWVWXG\WKDWSURGXFHGDVPRRWKHULQWHUYLHZH[SHULHQFH

7KHDQVZHUVJHQHUDWHGIURPWKHLQWHUYLHZTXHVWLRQVGURYHWKHVWXG\¶VUHVXOWV7KHVWXG\

LQWHUYLHZFRQVLVWHGRITXHVWLRQVJHDUHGDWDVFHUWDLQLQJWKHDSSOLFDWLRQRI1/3FRQFHSWVDQG



 

WKHLPSDFWRIWKHLUXVH2SHQHQGHGTXHVWLRQV IRXQGLQ$SSHQGL[% DOORZHGWKHSDUWLFLSDQWVWR

VKDUHWKHLUSHUVSHFWLYHVDQGH[SHULHQFH

7KHUHVHDUFKHUXVHGDULJRURXVGDWDDQDO\VLVSURFHVV7KHGDWDFROOHFWLRQEHJLQVZLWKGDWD

UHVXOWLQJIURPDTXHVWLRQDVRSSRVHGWRWHVWLQJDK\SRWKHVLV7KHUHVHDUFKHUDQDO\]HGDOOGDWD

PDQXDOO\LQFOXGLQJWDNLQJPHPRVGXULQJWKHLQWHUYLHZVRINH\ZRUGVRULWHPVWKDWWKH

SDUWLFLSDQWVFDOOHGLPSRUWDQW$IWHUUHYLHZLQJWKHWUDQVFULSWLRQVIRULQWHUSUHWDWLRQRIPHDQLQJ

WKHUHVHDUFKHUEHJDQORRNLQJIRUUHSHDWLQJWKHPHVLQWKHLQWHUYLHZDQVZHUVDQGFRGLQJWKHPLQWR

NH\ZRUGVDQGSKUDVHV&RGLQJFRQVLVWHGRIRUJDQL]LQJNH\WKHPHVLQWRFDWHJRULHVWKDWVKRZHG

WKHUHODWLRQVKLSVEHWZHHQWKHFRQFHSWVDQGWKHLUVLPLODULWLHVDQGGLIIHUHQFHV'DWDUHGXFWLRQ

UHPRYHGDQ\LUUHOHYDQWGDWDRUGXSOLFDWHGLQIRUPDWLRQ6\QWKHVLVKHOSHGWRGHWHUPLQHNH\WKHPHV

IURPWKHLQWHUYLHZV7ULDQJXODWLRQRIWKHGLYHUVHSDUWLFLSDQWLQWHUYLHZVUHVHDUFKHUREVHUYDWLRQV

DQGOLWHUDWXUHUHYLHZLQIRUPDWLRQHQVXUHGPDQ\GLIIHUHQWUHVHDUFKSHUVSHFWLYHVWRDQDO\]H

YDULDQFHVNH\ZRUGVDQGWUHQGV

'LVFXVVLRQRI6WXG\)LQGLQJV

5HSRUWLQJWKHGDWDDQDO\VLVILQGLQJVLQDQDUUDWLYHDOORZVIRUGHULYLQJPHDQLQJ7KHGDWD

DQDO\VLVJURXSHGWKHILQGLQJVLQWRIRXUPDLQFDWHJRULHV  KDYLQJDQLPSDFWRQRUJDQL]DWLRQ

HQJDJHPHQWJRDOV  XVLQJ1/3DVDOHDGHUVKLSWUDLQLQJWRRO  SURGXFLQJHQJDJHPHQWZLWK

1/3DQG  DGGLQJTXHVWLRQVIRUFROOHFWLYHGDWDSUHVHQWDWLRQ7KHVWXG\¶VILQGLQJVSURYLGHGWKH

UHDGHUZLWKDQRSSRUWXQLW\WRLQGHSHQGHQWO\GHFLGHZKHWKHU1/3LVDXVHIXOOHDGHUVKLSWUDLQLQJ

WRROIRURUJDQL]DWLRQVWRLPSURYHHPSOR\HHHQJDJHPHQW7KHIROORZLQJILJXUHVSUHVHQWHGKHUHLQ

VKRZWKHDJJUHJDWHGWKHPHGDWDIURPDOOWKHLQWHUYLHZTXHVWLRQV

7KHVWXG\¶VILQGLQJVUHIOHFWHGLQ)LJXUHEHORZVKRZHGWKDW1/3FRQFHSWVFRXOG

LQIOXHQFHRUJDQL]DWLRQHQJDJHPHQWJRDOV7KHFRQFHSWVJURXSHGLQWRIRXUFDWHJRULHVUHSUHVHQW



 

WKHIROORZLQJTXHVWLRQVDVVRFLDWHGZLWKWKHDQVZHUVSURYLGHG4XHVWLRQV+RZFDQOHDGHUV

XVLQJ1/3WRVWULYHIRUH[FHOOHQFHLPSDFWWKHHQJDJHPHQWRIDQRUJDQL]DWLRQ"4XHVWLRQ

+RZFDQSUDFWLFLQJWKHILYHSULQFLSOHVIRUVXFFHVVKHOSOHDGHUVDFKLHYHRUJDQL]DWLRQHQJDJHPHQW

JRDOV"4XHVWLRQ+RZFDQ1/3DVDZKROHV\VWHPVDSSURDFKFKDQJHWRSURGXFHIDVWHUUHVXOWV

WKDQDQRUJDQL]DWLRQQRWXVLQJ1/3LQWKHOHDGHUVKLSWUDLQLQJRIOHDGHUV"DQG4XHVWLRQ+RZ

GR\RXWKLQNWKH³GRZLWK´SURFHVVZLOOOLPLWLIDWDOOOHDGHULQIOXHQFHRQHPSOR\HHVWKDWDUHQRW

GLUHFWO\UHSRUWLQJWRWKHP"7KHIRXUFDWHJRULHVUHSUHVHQWWKHILYHSULQFLSOHVIRUVXFFHVV NQRZ

\RXURXWFRPHWDNHDFWLRQKDYHVHQVRU\DFXLW\KDYHEHKDYLRUDOIOH[LELOLW\DQGRSHUDWHIURPD

SK\VLRORJ\DQGSV\FKRORJ\RIH[FHOOHQFH VWULYLQJIRUH[FHOOHQFH1/3DVDZKROHV\VWHPV

DSSURDFKDQGWKH³GRZLWK´DSSURDFK DFROODERUDWLYHDSSURDFK &RQVLGHUDWLRQDQG

LPSOHPHQWDWLRQRIWKHVHIRXUFDWHJRULHVZLOOKHOSRUJDQL]DWLRQVDFKLHYHWKHLURUJDQL]DWLRQ

HQJDJHPHQWJRDOV7KHIRXUFDWHJRULHVUHSUHVHQWDSSURDFKHVOHDGHUVFDQXVHWREULQJSRVLWLYH

FKDQJH

)LYH3ULQFLSOHVIRU6XFFHVVLVDQ1/3FRQFHSWFRPSULVHGRIILYHRWKHU1/3FRQFHSWV

SDLUHGWRJHWKHUIRUPD[LPXPVXFFHVV4XHVWLRQDVNHGSDUWLFLSDQWVDERXWWKHLPSDFWOHDGHU¶V

XVLQJWKLVFRQFHSWZRXOGKDYH7KH)LYH3ULQFLSOHVIRU6XFFHVVVHFWLRQRI)LJXUHUHIOHFWVWKH

GDWDWKHSDUWLFLSDQWLQWHUYLHZVSURGXFHGRIKRZWKHILYHSULQFLSOHVIRUVXFFHVVLPSDFWWKH

HQJDJHPHQWJRDOVRIDQRUJDQL]DWLRQ:KHQSUDFWLFLQJWKHILYHSULQFLSOHVIRUVXFFHVVLWLV

HVVHQWLDOWRFRQVLVWHQWO\WDONDERXWWKHPWRLQVWLWXWLRQDOL]HWKHPLQWRWKHFXOWXUH7KHFRQJUXHQW

SUDFWLFHRIWKHILYHSULQFLSOHVZLOOSURGXFHHQJDJHPHQW3UDFWLFLQJWKHILYHSULQFLSOHVRIVXFFHVV

FUHDWHVHPSDWK\DVWDWHRIHPSRZHUPHQWDQGH[FHOOHQFHDQH[SHFWDWLRQIRUVXFFHVVDFXOWXUH

ZKHUHSHRSOHIHHOFKDOOHQJHVWKDWUHFHLYHVXSSRUWDQGYDOXHDQGPRUHIRFXVDZDUHQHVV

DGDSWDELOLW\VWDELOLW\IOH[LELOLW\FODULW\DQGEDODQFH7KHILYHSULQFLSOHVKHOSWRFRJQL]HWKDW



 

HPSOR\HHVDUHKXPDQEHLQJVIRFXVRQSRVVLELOLWLHVRYHUSUREOHPVPDNHDFWLRQVPRUH

SXUSRVHIXODQGHIILFLHQWPDNHH[FHOOHQFHIHHODFKLHYDEOHILOWHUWRDSSUHKHQGZKDWLVZRUWK

DSSO\LQJIUHHSHRSOHWRZDQWWRZRUNWRZDUGJRDOVDQGSXWWKHULJKWSHRSOHLQWKHULJKW

SRVLWLRQV7KHVHFKDQJHVKDSSHQE\PRGHOLQJVXFFHVVIRUDOLJQPHQWDSSURDFKLQJGXULQJXSWLPH

DFFHVVLQJDSRVLWLYHVWDWHYLHZLQJWKHRUJDQL]DWLRQDVDV\VWHPDQGHFRORJ\ZRUNLQJWRJHWKHU

5HDFKLQJRUJDQL]DWLRQHQJDJHPHQWJRDOVLVSRVVLEOHEHFDXVHSUDFWLFLQJWKHILYHSULQFLSOHVDOORZV

IRUPRUHFRQWURORIWKHHQYLURQPHQWEHLQJPRUHUHFHSWLYHWRIHHGEDFNDQGEHLQJPRUHRSHQ

DZDUHFRQQHFWHGH[SDQVLYHDQGLPSDFWIXO7KH

([FHOOHQFHDQGHQJDJHPHQWJRKDQGLQKDQG4XHVWLRQDGGUHVVHVOHDGHU¶VXVLQJ1/3

WRVWULYHIRUH[FHOOHQFHDQGWKHLPSDFW7KH6WULYHIRU([FHOOHQFHVHFWLRQRI)LJXUHLVWKH

FROOHFWLYHUHVSRQVHVRIWKHSDUWLFLSDQWVDQGKRZWKHVWULYHIRUH[FHOOHQFHFRQFHSWFDQLPSDFWWKH

HQJDJHPHQWJRDOVRIDQRUJDQL]DWLRQWRLQFOXGHWKHQXPEHURIZD\VVWULYLQJIRUH[FHOOHQFHFDQ

EULQJEHQHILWVDQGVRPHDSSURDFKHVIRULPSOHPHQWDWLRQRIWKLVFRQFHSW/HDGHUVZKRXVH1/3WR

VWULYHIRUH[FHOOHQFHZLOOKDYHDVLJQLILFDQWSRVLWLYHLPSDFWRQWKHRUJDQL]DWLRQ/DQJXDJHLV

VLJQLILFDQWZKHQLWFRPHVWRVWULYLQJIRUH[FHOOHQFHEHFDXVHLWKHOSVWRVSHDNDFURVVGLIIHUHQFHV

6WULYLQJIRUH[FHOOHQFHWDNHVDQDSSURDFKRIIRFXVLQJRQSRVVLELOLWLHVLQVWHDGRIREVWDFOHV

2XWFRPHIUDPHVKHOSFUHDWHDFKLHYDEOHRXWFRPHVDQGKRZWRUHSOLFDWHH[LVWLQJH[FHOOHQFHWR

UHDFKJRDODFFRPSOLVKPHQW6WULYLQJIRUH[FHOOHQFHZLOOWHDFKOHDGHUVUHVSRQVLELOLW\IRUWKHLURZQ

SHUVRQDOFKDQJHDQGKHLJKWHQHPRWLRQDOLQWHOOLJHQFH6WULYLQJIRUH[FHOOHQFHUHPRYHVWKH

OHDGHUV¶EORFNVDQGKHOSVWKHPUHDOL]HKRZWRPRGHOHIIHFWLYHO\0RGHOLQJH[FHOOHQFHSURGXFHV

H[FHOOHQFHVRWKLVLVHVSHFLDOO\LPSRUWDQW6WULYLQJIRUH[FHOOHQFHSURGXFHVFRQWLQXRXVTXDOLW\

DQGIRFXVHVRQVXFFHVVVRHYHU\OHDGHUVKRXOGVWULYHIRUH[FHOOHQFH7KHUHVXOWLVDQDOLJQHG

RUJDQL]DWLRQZKLFKZLOOFRQVHTXHQWO\UHPRYHWKRVHQRWDOLJQHGZLWKWKHGHVLUHGGLUHFWLRQ



 

4XHVWLRQSURGXFHGILQGLQJVUHIOHFWHGLQWKH:KROH6\VWHPV$SSURDFKVHFWLRQRI

)LJXUHWKDWVKRZHGWKHEHQHILWRIWKHDSSOLFDWLRQRI1/3LQDQRUJDQL]DWLRQGXHWR1/3EHLQJ

DZKROHV\VWHPVDSSURDFKWRFKDQJHDVRSSRVHGWRIRFXVLQJRQDVLQJOHDUHDRUWHDPLQWKH

FRPSDQ\1/3DVDZKROHV\VWHPVDSSURDFKGLGQRWUHYHDOWREHDQ1/3FRQFHSWKRZHYHUWKHUH

LVEHQHILWWRSUHVHQWLQJWKHILQGLQJVDVWKH\SUHVHQWXVHIXOGDWDRQXQGHUVWDQGLQJKRZWKH

DSSOLFDWLRQRI1/3FDQLPSDFWDQRUJDQL]DWLRQ$FFRUGLQJWRRQHSDUWLFLSDQWDOORUJDQL]DWLRQV

XVHVRPHWHQHWVRI1/3WKRXJKQRWQHFHVVDULO\FDOOHGWKDWRUQRWFRQVFLRXVO\GRQH$ZKROH

V\VWHPVDSSURDFKLVWKHRQO\ZD\WRSURGXFHODVWLQJFKDQJHDQGDOLJQPHQWZLWKLQDQ

RUJDQL]DWLRQ$VDZKROHV\VWHPVDSSURDFK1/3FUHDWHVV\QHUJ\DQGDOLJQPHQWPRUHUDSLG

FKDQJHE\VDYLQJWLPHPDNLQJPLVWDNHVRUXQSURGXFWLYLW\LQWHQWLRQDODFWLRQDV\VWHPRI

PDVWHU\ FRQWLQXRXVLPSURYHPHQW DZLQZLQRUJDQL]DWLRQDQGSDVVLRQDERXWRXWFRPHVWKURXJK

YLVXDOL]DWLRQ1/3KHOSVWRFKDPSLRQSHUVRQDOH[FHOOHQFHDQGDFFRXQWDELOLW\ZKLFKSURGXFHV

HQJDJHGWHDPVZLWKHPRWLRQDOLQWHOOLJHQFH7KLVRFFXUVWKURXJKXVLQJDFRPSUHKHQVLYH

FROOHFWLRQRIWRROVFRPPXQLFDWLRQDQGH[FHOOHQFHWKDWUHSUHVHQWVDVWUXFWXUHGDQGVSHFLILF

DSSURDFKDQGRIIHUVDQDSSUHKHQVLRQRIKRZHDFKHOHPHQWRIWKHRUJDQL]DWLRQLPSDFWVHYHU\

RWKHUHOHPHQW$ZKROHV\VWHPVDSSURDFKDOORZVIRUNQRZLQJFRPPXQLFDWLRQEUDLQIXQFWLRQ

YDOXHVZKDWPRWLYDWHVSHRSOHVHHLQJWKHELJJHUSLFWXUHDQGFRPPXQLFDWLQJDQ\PHVVDJHLQD

ZD\DOOLQGLYLGXDOVXQGHUVWDQG6LQFH1/3RIIHUVDZKROHV\VWHPVDSSURDFKWRFKDQJHWKDW

SURGXFHVUDSLGFKDQJHVDYHVWLPHERRVWVSURGXFWLYLW\DQGDOLJQVWKHRUJDQL]DWLRQ

RUJDQL]DWLRQVVKRXOGSXWVHULRXVWKRXJKWLQWRDGGLQJLWWRWKHLUWRROEHOW

4XHVWLRQ +RZGR\RXWKLQNWKH³GRZLWK´SURFHVVZLOOOLPLWLIDWDOOOHDGHU

LQIOXHQFHRQHPSOR\HHVWKDWDUHQRWGLUHFWO\UHSRUWLQJWRWKHP" ILQGLQJVDUHSUHVHQWHGLQWKH'R

:LWK$SSURDFKVHFWLRQRI)LJXUH7KH'R:LWK$SSURDFKFDQRWKHUZLVHEHGHVFULEHGDVD



 

FROODERUDWLYHDSSURDFKRUVRPHWKLQJ\RXGRZLWKVRPHRQHDVRSSRVHGWRGRLQJVRPHWKLQJWR

WKHPDQGHQGHGXSEHLQJPRUHRIDFKDUDFWHULVWLFRI1/3UDWKHUWKDQDFRQFHSW/LNHWKHZKROH

V\VWHPVDSSURDFKFKDUDFWHULVWLFWKHILQGLQJVRQ1/3DVD'R:LWK$SSURDFKDUHZRUWKQRWLQJ

EHFDXVHWKHILQGLQJVVKRZWKDWUHJDUGOHVVRIORFDWLRQRUOHYHO1/3FDQEHLPSOHPHQWHG

HIIHFWLYHO\DQGSURGXFHSRVLWLYHUHVXOWVPDNLQJLWDQLPSRUWDQWILQGLQJIURPWKLVVWXG\,Q

UHVSRQVHWR4XHVWLRQWKHSDUWLFLSDQWFRQVHQVXVZDVWKDWLWGLGQRWPDWWHULIHPSOR\HHV

GLUHFWO\UHSRUWWRDOHDGHUEHFDXVH1/3SURPRWHVWKHDELOLW\WRLQIOXHQFHRXWVLGHRIWKH

RUJDQL]DWLRQDOFKDUW7KHEDVLVRILQIOXHQWLDOLPSDFWLVQRWDQHPSOR\HHGLUHFWO\UHSRUWLQJWRWKHP

EXWUDWKHURQWKHLQIRUPDWLRQFKDQQHOVWKDWWKHLQIOXHQFHIORZVWKURXJK/HDGHUVFDQLQIOXHQFH

WKRVHDURXQGDQGEHORZWKHPEHFDXVH1/3DVD³GRZLWK´SURFHVVFUHDWHVDULSSOHHIIHFWRU

WULFNOHVGRZQSRVLWLYHO\LPSDFWLQJWKHRUJDQL]DWLRQ¶VHQYLURQPHQW1/3DVD³GRZLWK´RU

FROODERUDWLYHDQGLQFOXVLYHDSSURDFKKDVDSRVLWLYHLQIOXHQFHRQRWKHUVDQGWKHHQYLURQPHQW

/HDGHUVFUHDWHWKHFXOWXUHDQGVHWWKHWRQHIRUWKHRUJDQL]DWLRQVRWKH\PXVWHPERG\WKLV

DSSURDFK7RDSSURDFKWKH³GRZLWK´SURFHVVHIIHFWLYHO\OHDGHUVQHHGWRJUDVSWKHERXQGDULHVRI

WKHLULQIOXHQFH



 

)LJXUH$QVZHULQJLQWHUYLHZTXHVWLRQVDQGWKHILJXUHVKRZVWKDWWKH1/3

FRQFHSWVRIWKHILYHSULQFLSOHVIRUVXFFHVVVWULYHIRUH[FHOOHQFH1/3DVDZKROHV\VWHPV

DSSURDFKWRFKDQJHDQGD³GRZLWK´DSSURDFKDUHZKDWLPSDFWRUJDQL]DWLRQDOJRDOV

)LJXUHVKRZQEHORZLVWKHFROOHFWLYHILQGLQJVIURPLQWHUYLHZTXHVWLRQV³+RZFDQ

1/3FRQFHSWVEHXVHGDVDOHDGHUVKLSWUDLQLQJWRROIRUOHDGHUVORRNLQJWRLPSURYHHPSOR\HH

HQJDJHPHQW"´ZKLFKLVVKRZQLQWKHWRSVHFWLRQ³+RZGR\RXWKLQNOHDGHUVFDQVKDSH

HPSOR\HHEHKDYLRUVDQGSHUVSHFWLYHVXVLQJ1/3"´UHSUHVHQWHGLQWKHPLGGOHVHFWLRQDQG

³:KDWFKDOOHQJHVGR\RXVHHDULVLQJIURPOHDGHUVXVLQJ1/3WRLPSURYHHPSOR\HH

HQJDJHPHQW"´GLVSOD\HGLQWKHERWWRPURZRIWKHILJXUH)LJXUHH[SODLQVWKHXVHRI1/3DVD

OHDGHUVKLSWUDLQLQJWRROIRULPSURYLQJHPSOR\HHHQJDJHPHQWDVIDUDVPHWKRGVKRZLWVKDSHV

HPSOR\HHEHOLHIVDQGSHUVSHFWLYHVDQGWKHFKDOOHQJHVWKDWFRPHDORQJZLWKXVLQJ1/3DFFRUGLQJ

WRWKHYLHZVRIWKHSDUWLFLSDQWV:KHQUHYLHZLQJWKHFHQWUDOUHVHDUFKTXHVWLRQ²%DVHGRQWKH

H[SHUWNQRZOHGJHRI1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 SUDFWLWLRQHUVZKDWDUHWKH1/3




 

FRQFHSWVQHHGHGWRKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQW"²LQFRQQHFWLRQWRWKHILQGLQJV

RIWKLVVWXG\WKHDQVZHULVGHULYHGLQPDMRULW\IURPWKHFRQFHSWVSURYLGHGLQUHVSRQVHWR

TXHVWLRQVDQG7KHFRQFHSWVQHHGHGWRKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQWDUHWKH

IROORZLQJPRGHOLQJFRPPXQLFDWLRQPHWDSURJUDPVUHSURJUDPPLQJIRUH[FHOOHQFHPDWFKLQ

SODFHYLVLRQDQGYDOXHVUDSSRUWVWUHVVPDQDJHPHQWUHDFKLQJUHVRXUFHIXOVWDWHVSDWWHUQVIRU

EHKDYLRURXWFRPHVRSHUDWLQJDWDFRQVFLRXVDQGXQFRQVFLRXVOHYHOFRUHWUDQVIRUPDWLRQ

EHKDYLRUDOIOH[LELOLW\VWUDWHJ\PLUURULQJHPRWLRQDOLQWHOOLJHQFHSUHIHUUHGVHTXHQFHVRI

UHSUHVHQWDWLRQODESURILOHORFXVRIFRQWUROPDSSLQJDFURVVLQWLPHRUWKURXJKWLPHVHQVRU\

ODQJXDJHZLQZLQDQFKRULQJSUHVXSSRVLWLRQVHIIHFWLYHXVHRIODQJXDJHLQVWDQWLQGXFWLRQZHOO

IRUPHGRXWFRPHFRDFKLQJPHWDPRGHOTXHVWLRQLQJODQJXDJHSDWWHUQVODQJXDJHIUDPLQJ

UHIUDPLQJH[SHULHQFHVXQGHUVWDQGLQJPRWLYDWLRQVSHUFHSWXDOSRVLWLRQLQJIHHGEDFNPHWDSKRUV

LGHQWLW\DQGYDOXHVFKDQJHPLVVLRQDQGYLVLRQVWDWHPHQWVV\VWHPLFDSSURDFKWRUROHSRUWUD\DO

FOHDULQJEORFNVUHZDUGGHVLUHGEHKDYLRUFRQJUXHQF\DQGFRPSOLDQF\IRFXVRQGHVLUHRYHUZKDW

LVXQGHVLUDEOHORJLFDOOHYHOVRIOHDUQLQJDQGVHQVRU\DFXLW\7KHVHFRQFHSWVFDQDSSO\LQD

WDLORUHGZD\XVLQJRQHRUPRUHRIWKHPGHSHQGLQJRQWKHVSHFLILFVLWXDWLRQ VQHHGV'LIIHUHQW

FRQFHSWVFDQDSSO\DWGLIIHUHQWWLPHVRUIRUGLIIHUHQWSXUSRVHV$SSO\LQJWKHVHFRQFHSWVUHVXOWVLQ

OHDGHUVZKREHWWHUXQGHUVWDQGWKHPVHOYHVDQGRWKHUVIRUPRUHHIIHFWLYHFRPPXQLFDWLRQWR

RYHUFRPHOLPLWDWLRQVDQGUHDFKRXWFRPHV

8VLQJVRPHVSHFLILFFRQFHSWVDQGDSSURDFKHVFDQVKDSHHPSOR\HHEHOLHIVDQG

SHUVSHFWLYHVWRLPSURYHHPSOR\HHHQJDJHPHQW(DFKRIWKHGLIIHUHQWFRQFHSWVIHDWXUHGLQWKH

PLGGOHURZRI)LJXUHDQVZHUVWKHIROORZLQJTXHVWLRQ+RZGR\RXWKLQNOHDGHUVFDQVKDSH

HPSOR\HHEHKDYLRUVDQGSHUVSHFWLYHVXVLQJ1/3"7KHUHVSRQVHVLQGLFDWHGWKDWOHDGHUVFRXOG

NQRZZKLFKWRROVZRXOGPRVWEHQHILWWKHPZKHQWU\LQJWRVKLIWHPSOR\HHVLQDGLIIHUHQW



 

GLUHFWLRQ7KHGLIIHUHQWFRQFHSWVFHQWHUDURXQGODQJXDJHPRGHOLQJFRPPXQLFDWLRQDQG

HPRWLRQDOLQWHOOLJHQFH,QWHQWLRQDOFRPPXQLFDWLRQDSSURDFKHVDQGOLYLQJRXWRWKHUV H[SHFWDWLRQV

DUHWKHWZRSULPDU\DFWLRQVWKDWZLOOVKDSHHPSOR\HHEHOLHIVDQGSHUVSHFWLYHV7KHOHDGHULV

UHVSRQVLEOHIRUHQVXULQJDOLJQPHQWEHWZHHQHPSOR\HHV¶YDOXHVDQGWKHRUJDQL]DWLRQ¶VPLVVLRQ

DQGYLVLRQVWDWHPHQWV+DYLQJDV\VWHPLFDSSURDFKWRUROHSRUWUD\DODQGOHDUQLQJWKHHPSOR\HHV¶

LQGLYLGXDOYDOXHVZLOOKHOSFUHDWHWKHQHHGHGDOLJQPHQW

)LJXUH)LJXUHGHSLFWVXVLQJ1/3DVDOHDGHUVKLSWUDLQLQJWRROIRUHQJDJHPHQWE\OLVWLQJWKH

FRQFHSWVWKDWFDQEHRIXVHKRZLWFDQVKDSHHPSOR\HHEHOLHIVDQGSHUVSHFWLYHVDQGWKH

FKDOOHQJHVWKDWFRPHZLWKXVLQJ1/3DFFRUGLQJWRWKHGDWDFROOHFWHGIURPSDUWLFLSDQWLQWHUYLHZV

7KHSDUWLFLSDQWVSUHVHQWHGVHYHUDOFKDOOHQJHVWKDWFRPHZLWKXVLQJ1/3DVVKRZQLQWKH

&KDOOHQJHVVHFWLRQRI)LJXUHVRDQRUJDQL]DWLRQRUOHDGHUVVKRXOGFRQVLGHUWKHPEHIRUH

GHFLGLQJZKHWKHULWZLOOEHDEHQHILFLDOPRGDOLW\WRUHDFKWKHLUHPSOR\HHHQJDJHPHQWJRDOV1/3

KDVDEDGUHSXWDWLRQLQWKH8QLWHG6WDWHVRIWHQDVVRFLDWHGZLWKEHLQJPDQLSXODWLYHEHFDXVHRI



 

PLVXVHRUOHDGHUVQRWSUDFWLFLQJZKDWWKH\SUHDFK3XVKEDFNPD\FRPHIURPDODFNRID

UHDOL]DWLRQRIZKDW1/3LVDVLWLVYHU\MDUJRQKHDY\/HDGHUHJRDQGJHWWLQJOHDGHUFRPPLWPHQW

RU³EX\LQ´ZLOOEHDPRQJWKHJUHDWHVWFKDOOHQJHVEHFDXVHOHDGHUVPXVWKDYHLQWHUQDO

HPSRZHUPHQWIRU1/3WRZRUN1/3PD\QRWZRUNRIWKHWLPHZKLFKLVZK\LWFRXOG

EHFRPHDSUREOHPLIXVHGWRRPXFKLQSODFHRIRWKHUPRGDOLWLHVRUDVDWHFKQLTXHLQVWHDGRID

ZKROHV\VWHPDSSURDFK%HJLQQHUVPD\VWUXJJOHZLWK1/3DQGJHWORVWLQWKHPHFKDQLFVRYHUWKH

LQWHQWLRQV/HDGHUVZKRWU\WRXVH1/3WKHUDSHXWLFDOO\LQDQRUJDQL]DWLRQDOVHWWLQJFRXOG

RYHUUHDFKHPSDWK\DQGHPRWLRQDOLQWHOOLJHQFHERXQGDULHV1/3UHTXLUHVHGXFDWLRQPDVWHU\

WDNHVWLPHRUJDQL]DWLRQZLGHDFFHSWDQFHDQGFKDQJHWDNHVWLPHDQGWKHQXPEHURIWRROVFDQEH

RYHUZKHOPLQJ

)LJXUHH[SODLQVWKDWWKHWZRNH\HOHPHQWVRIWKHUHVHDUFKILQGLQJVIRULPSURYLQJ

HPSOR\HHHQJDJHPHQWZHUHWRVKLIWHPSOR\HHWKLQNLQJWREHLQJ³DWFDXVH´ GHILQHGDVEHLQJ

RSHQWRWKHSRVVLELOLWLHVRIOLIHDQGWDNLQJUHVSRQVLELOLW\IRUFRQWURORYHUUHVSRQVHV DQGFKDQJLQJ

WKHOHDGHUV¶EHOLHIV\VWHPV)LJXUHH[SODLQVZKDWEHVWSURGXFHVHQJDJHPHQWDQGWKHPHWKRGV

WKDWZLOOEULQJLPSDFW7KHGDWDVKRZKRZWKHSURFHVVSURYLGHVUHVXOWV)LUVWWKHOHDGHU¶VEHOLHI

V\VWHPVPXVWFKDQJH&KDQJLQJOHDGHUV¶EHOLHIV\VWHPVLVQHFHVVDU\IRUJHWWLQJWKHLUEX\LQDQG

HQVXULQJWKH\FDQOHDGHIIHFWLYHO\2QFHOHDGHUVDUHRSHUDWLQJRXWRIHPSRZHULQJEHOLHIVDQGD

VXFFHVVPLQGVHWWKH\FDQWKHQIRFXVRQFRPPXQLFDWLQJZLWKHPSOR\HHVLQDZD\WKDWZLOOVKLIW

WKHLUWKLQNLQJWREHLQJ³DWFDXVH´:KHQERWKWKHOHDGHU¶VEHOLHIV\VWHPVDQGHPSOR\HH¶V

SHUVSHFWLYHVUHPDLQXQFKDQJHGWKHUHVXOWLVDQHQJDJHGRUJDQL]DWLRQWKDWZLOOLQFUHDVH

SURGXFWLYLW\DQGSURVSHULW\



 


3URGXFLQJ(QJDJHPHQW

  
6KLIWLQJHPSOR\HHVWR³DWFDXVH´ &KDQJLQJEHOLHIV\VWHPVRIOHDGHUV
SHUVSHFWLYH 
0HWKRGV  ,PSDFWV 0HWKRGV  ,PSDFWV
8QGHUVWDQG &ODULILHVZKDWFDQ &ODULI\LQJEHOLHIV (PSRZHULQJEHOLHIV
SHUFHSWXDO DQGFDQQRWEH UHPRYH KHOSSHRSOHOHDG
SRVLWLRQV FKDQJHG DVVXPSWLRQV 
7HDFKWKHPZKDWLW (PSRZHUVE\ 6KRZOHDGHUVWKH /HDGHUEX\LQLV
PHDQVWREHDW UHPRYLQJYLFWLP ULSSOHVWKH\SXWRXW QHFHVVDU\
FDXVH PHQWDOLW\ %UHDNVOLPLWDWLRQVRI
  FRPSDQ\DVDZKROH
+DYHHPSOR\HHV (QJDJHPHQW %HOLHIDXGLW :LOOIHHOOHVV
H[SHULHQFH LPSURYHVZLWK LGHQWLI\FRQVFLRXV WUDSSHGLQQRYDWLYH
FRQVHTXHQFHVWR IHHOLQJLQFKDUJHRI DQGXQFRQVFLRXV WKLQNLQJLQFUHDVHG
WKHLUEHKDYLRU WKHLUUHDOLW\DQG EHOLHIVWKHQ SURGXFWLYLW\
 H[SHULHQFH DGGUHVVLQHIIHFWLYH
RUOLPLWLQJEHOLHI
8VHFRQYHUVDWLRQDO (PSRZHUVFKDQJH V\VWHPV  %ULQJVDOLJQPHQWWR
UHIUDPHV DQGFKRLFH WKHRUJDQL]DWLRQ
/HDUQHPSOR\HH $WFDXVHLVDPDLQ (IIHFWLYH ,PSDFWVRUJDQL]DWLRQ
PHWDSURJUDPV NH\WRHQJDJHPHQW TXHVWLRQLQJ FXOWXUH
  
)RFXVRQLQILQLWH 3URGXFHVDPRUH 6KRZZKDWFDQ (QKDQFHVJHQHUDO
SRVVLELOLWLHV SURGXFWLYHVWDWH KDSSHQ SURVSHULW\
 SRVVLELOLWLHV 
&UHDWHODESURILOH &UHDWHVORFXVRI 0HWDSKRUV ,PSDFWVWULFNOHGRZQ
&UHDWHHPSOR\HH FRQWUROZKLFK .QRZLQJVHOIDQG %HVWWRKLUHWKRVH
HPSRZHUPHQWDQG LQFUHDVHV XQGHUVWDQG ZKRVKDUH
ERXQGDULHV VDWLVIDFWLRQ RUJDQL]DWLRQYDOXHV RUJDQL]DWLRQEHOLHI
  V\VWHP
2IIHUVXJJHVWLRQV 5HPRYHVOLPLWLQJ +HOSOHDGHUV ,PSDFWV
WKURXJKHIIHFWLYH PHWDSURJUDPVDQG UHDOL]HZK\LWLV HQYLURQPHQWOHDGHU
TXHVWLRQLQJ LPSRYHULVKHGYLHZV LPSRUWDQWWR EHKDYLRU
  FKDQJHWKHLUEHOLHIV LQWHUDFWLRQVEXLOGLQJ
&RPPXQLFDWH (PSOR\HHVWDNH WUXVWUHVRXUFHIXO
 PRUHUHVSRQVLELOLW\ VWDWHV
/HDGHUV³ZDONWKH ,PSDFWVHPSOR\HHV +LUHWKRVHZKR /HDGHUVZKROHDUQ
WDON´ SHUVRQDOO\DQG VKDUHEHOLHIV\VWHP PHWDSURJUDPV
 SURIHVVLRQDOO\ RIRUJDQL]DWLRQ DSSURDFKSHRSOH



 

7HDFKHVSHUVRQDO *HQHUDWHVSHUVRQDO +HOSOHDGHUV GLIIHUHQWO\LQDZD\


UHVSRQVLELOLW\ PRWLYDWLRQIRUEX\ FRJQL]HHPSOR\HHV WKDWLVHPSRZHULQJ
 LQ DUHDVVHWV DQGFRQQHFWVYLVLRQ
 RIOHDGHUWRYDOXHVRI
5HGXFHVWUHVV   SHRSOH
7HDFKVWUHVV 
PDQDJHPHQW
/HDUQLQJDQG  
GLUHFWIHHGEDFN 
6SHDNWRD *HQHUDWHVDPLQGVHW
SHUVRQ¶VOLVWHQLQJ RIVXFFHVVZKHUH
 DQ\WKLQJDQG
8VHRXWFRPH HYHU\WKLQJLV
)UDPHV SRVVLEOH
$OLJQYDOXHVWR 5HPRYHVOLPLWLQJ
RUJDQL]DWLRQ EHOLHIV\VWHPVWR
 RSHQXS
 RSSRUWXQLWLHV
&KDQJLQJOHDGHUV
EHOLHIV\VWHPVDOORZV
IRUFKDQJLQJ
RUJDQL]DWLRQDO
VWUXFWXUH
2UJDQL]DWLRQOLYHV
RXWRIH[FHOOHQFHLQ
DOODUHDV




)LJXUH$ILJXUHGHSLFWLQJWKDWWKHWZRNH\HOHPHQWVWRSURGXFLQJHPSOR\HHHQJDJHPHQWXVLQJ

1/3DUHFKDQJLQJOHDGHUEHOLHIV\VWHPVDQGVKLIWLQJHPSOR\HH¶VWREHLQJDWFDXVHZLWKWKH

PHWKRGVDQGLPSDFWVRIERWK

)LJXUHVKRZVDFROOHFWLYHWDEOHWKDWSUHVHQWVWKHGDWDILQGLQJVIURPWKHUHPDLQLQJ

TXHVWLRQVWKDW\LHOGHGUHODWLYHO\VLPSOHUHVSRQVHV7KHTXHVWLRQVUHSUHVHQWHGLQWKLVILJXUHDUH

4XHVWLRQ+RZLVHIIHFWLYHQHVVRI1/3LPSDFWHGE\OHDGHUVKLSVW\OH"4XHVWLRQ+RZGR

\RXWKLQNWKH³GRZLWK´SURFHVVZLOOOLPLWLIDWDOOOHDGHULQIOXHQFHRQHPSOR\HHVWKDWDUHQRW

GLUHFWO\UHSRUWLQJWRWKHP"4XHVWLRQ:KDWH[SHULHQFHVKDYH\RXKDGZKHUH1/3ZDVXVHG



 

E\OHDGHUVKLSDQGZKDWZDVWKHRXWFRPH"4XHVWLRQ'R\RXWKLQNWKHUHLVDGLIIHUHQFHLQ

WKHDSSOLFDWLRQRI1/3DVDOHDGHUVKLSWUDLQLQJWRROEHWZHHQQRQH[HFXWLYHPDQDJHPHQWDQG

H[HFXWLYHPDQDJHPHQW"DQG4XHVWLRQ%DVHGRQ\RXUNQRZOHGJHDQGH[SHULHQFHZRXOG

\RXUHFRPPHQGRUJDQL]DWLRQVXVH1/3"5HVSRQVHVWRWKHVHTXHVWLRQVZHUHVLPSOHDQGFRQFLVH

FRPSDUHGWRUHVSRQVHVWRWKHRWKHUTXHVWLRQV7KHFROXPQOLVWVHDFKSDUWLFLSDQW¶VVSHFLILF

UHVSRQVH

)LJXUH7KHILYHUHPDLQLQJLQWHUYLHZTXHVWLRQVILQGLQJVSUHVHQWHGLQDFROOHFWLYHWDEOH

UHSUHVHQWLQJWKHQXPEHURISDUWLFLSDQW¶VZKRFKRVHWKDWVSHFLILFUHVSRQVH

:KHQLWFDPHWROHDGHUVKLSVW\OHDOOSDUWLFLSDQWVVWDWHGWKDWDQ\OHDGHUVKLSVW\OHFRXOG

XVH1/3HIIHFWLYHO\6RPHVLGHEDUFRPPHQWVDERXWOHDGHUVKLSVW\OHDQG1/3QRWHGWKDW1/3

KHOSVSHRSOHEHPRUHZHOOURXQGHGHQKDQFLQJWKHLULQHTXDOLWLHVDQGJLYLQJWKHPWKHTXDOLWLHV

WKH\QHHGWROHDGZKLFKLVKRZDQ\OHDGHU VVW\OHFDQLPSURYHE\XVLQJLW'LIIHUHQWVW\OHVPD\

FKRRVHWRDSSO\GLIIHUHQWFRQFHSWVRUKDYHDQHDVLHUWLPHXVLQJ1/3EXWDVORQJDVWKHOHDGHULV

ZLOOLQJWKH\FDQXVH1/3HIIHFWLYHO\UHJDUGOHVVRIWKHLUIRXQGDWLRQDOVW\OH2QHSDUWLFLSDQWIHOW

WKDWOHDGHUVPRUHDXWKRULWDULDQKDYHWKHSRWHQWLDOWRXVH1/3QHJDWLYHO\IRUPDQLSXODWLRQDQG

DQRWKHUIHOWWKDWWKRVHZKRDUHDXWKRULWDULDQPLJKWQRWEHZLOOLQJWRZRUNZLWK1/3DWDOO



 

:KHQDVNHGLIWKHUHLVDGLIIHUHQFHLQDSSO\LQJ1/3DVDOHDGHUVKLSWUDLQLQJWRROEHWZHHQ

H[HFXWLYHPDQDJHPHQWRUQRQH[HFXWLYHPDQDJHPHQWWKHUHZDVXQDQLPRXVFRQVHQVXVWKDW

OHDGHUVKLSOHYHOKDVQRLPSDFWRQWKHHIIHFWLYHQHVVRI1/3EXWKRZWKH\XVHLWRUWKHFRQWH[WLQ

ZKLFKDOHDGHUXVHVLWPD\EHGLIIHUHQWGHSHQGLQJRQWKHOHDGHUVKLSOHYHO,QVXPPDU\WKH

OHDGHUVKLSOHYHOGRHVQRWLPSDFWWKHWRROVDQGSXUSRVHRI1/3$GGLWLRQDOO\WKHUHSRUWLQJ

VWUXFWXUHGRHVQRWLPSDFW1/3EHFDXVHRILWV³GRZLWK´DSSURDFK7KLVLVEHFDXVHWKHOHDGHU¶V

LQIOXHQFHWULFNOHVGRZQRULPSDFWVWKHRYHUDOOHQYLURQPHQWWKURXJKDULSSOHHIIHFWZKHUHLWFDQ

VWLOOSRVLWLYHO\LQIOXHQFHHPSOR\HHVZKRDUHQRWGLUHFWUHSRUWV7KHIORZRILQIRUPDWLRQFKDQQHOV

KDVPRUHLPSDFWDQGLQIOXHQFHRQDOHDGHUXVLQJ1/3WKDQWKHRUJDQL]DWLRQDOUHSRUWLQJVWUXFWXUH

2IWKHSDUWLFLSDQWVUHSRUWHGRQO\SRVLWLYHH[SHULHQFHVIRXUUHSRUWHGERWKSRVLWLYH

DQGQHJDWLYHH[SHULHQFHVDQGRQHUHSRUWHGRQO\DQHJDWLYHH[SHULHQFHRI1/3XVHGE\

OHDGHUVKLS7ZRUHSRUWHGQRH[SHULHQFHVZKHUHOHDGHUVKLSXVHG1/32YHUDOOWKHPDMRULW\RI

SDUWLFLSDQWVH[SHULHQFHGSRVLWLYHRUPRVWO\SRVLWLYHH[SHULHQFHVZLWK1/3DQGVSRNHRISRVLWLYH

RXWFRPHVDVDUHVXOW,QUHVSRQVHWRZKHWKHUSDUWLFLSDQWVZRXOGUHFRPPHQG1/3WKHZRUGPRVW

FRPPRQO\VWDWHGZDV³DEVROXWHO\´2QHSDUWLFLSDQWZRXOGRQO\UHFRPPHQG1/3EHIRUFHUWDLQ

RUJDQL]DWLRQVEHFDXVHVRPHPD\KDYHLQWHQWLRQVWRXVHLWIRUXQHWKLFDOSXUSRVHVRUPDQLSXODWLRQ

DQGDVVXFKWKHSDUWLFLSDQWFRXOGQRWVXSSRUWLW$QRWKHUSDUWLFLSDQWZKRXVHV1/3VWDWHGWKDW

RUJDQL]DWLRQVVKRXOGXVHLWEXWZRXOGQRWRXWULJKWUHFRPPHQGLWRUXVHLWLQLVRODWLRQZLWKRXW

DSSO\LQJRWKHUPRGDOLWLHV,QDWOHDVWVRPHDVSHFWVDOOSDUWLFLSDQWVZRXOGUHFRPPHQG

RUJDQL]DWLRQVXVH1/3WRLPSURYHHPSOR\HHHQJDJHPHQWHYHQLILWLVQRWLQDIRUPDOFRQWH[WRU

VSHFLILFDOO\ODEHOHGDV1/3

1RWHVFDSWXUHGDGGLWLRQDOSDUWLFLSDQWFRPPHQWVDERXW1/3LQUHODWLRQWROHDGHUVKLSXVH

DQGWKHSXUSRVHRILPSURYLQJHPSOR\HHHQJDJHPHQW²WKHLQWHUYLHZ VILQDOLQWHUYLHZTXHVWLRQ



 

6RPHZRUGVXVHGWRGHVFULEH1/3ZHUH³SRZHUIXO´³SXUSRVHIXO´DQG³SUHFLVH´1/3KDVWKH

SRZHUWRRYHUULGHUHVWULFWLRQVWKDWFDQFDXVHDODFNRIHQJDJHPHQWFKDQJHEHKDYLRUWKURXJK

HQKDQFLQJHPRWLRQDOLQWHOOLJHQFHDQGLPSURYHHPSOR\HHHQJDJHPHQWWKURXJKVWULYLQJIRU

H[FHOOHQFH1/3DOORZVIRUDSRVLWLYHVKLIWWKURXJKVHOIDZDUHQHVVEHWWHUFRJQLWLRQHIIHFWLYH

OLVWHQLQJDQGUHDFKLQJSHDNSHUIRUPDQFHVWDWHV1/3SRVLWLYHO\LPSDFWVSHUVRQDODQG

RUJDQL]DWLRQHQJDJHPHQWE\EULQJLQJHIIHFWLYHOLVWHQLQJFRPPXQLFDWLRQLPSURYHGFRJQLWLRQ

XQGHUVWDQGLQJRWKHUVDQGVHOIDZDUHQHVV&RPPXQLFDWLRQLVWKHHDVLHVWFRQFHSWWRDSSO\WR

LPSURYHHQJDJHPHQWDQGWKHPRVWLPSRUWDQWDVWKH1/3PRGHORIFRPPXQLFDWLRQHQFRPSDVVHV

DXWKHQWLFOLVWHQLQJVHQVRU\DFXLW\DQGEHKDYLRUDOIOH[LELOLW\

0RUHWKDQRQHSDUWLFLSDQWFRPPHQWHGWKDWWUDLQLQJNH\OHDGHUVLQWKHRUJDQL]DWLRQFRXOG

KHOSVKDSHWKHRUJDQL]DWLRQ¶VFXOWXUH7KHUHDVRQIRUWUDLQLQJNH\OHDGHUVLVEHFDXVHDVWKH\

HPERG\1/3LWZRXOGLPSDFWWKRVHDURXQGWKHPDQGWULFNOHGRZQDFURVVWKHRUJDQL]DWLRQ

7UDLQLQJHYHU\OHDGHURUHPSOR\HHLVQRWQHFHVVDU\WRH[SHULHQFHWKHEHQHILWVRI1/3LQDQ

RUJDQL]DWLRQ3DUWLFLSDQWVPDGHPXOWLSOHUHFRPPHQGDWLRQVWRPDNH1/3DYDLODEOHWRDOO

HPSOR\HHVZKRZDQWWRWDNHLWQRWMXVWWKHOHDGHUVWRWUDQVIRUPWKHHQWLUHRUJDQL]DWLRQIRUJRRG

7KHWUDQVIRUPDWLRQGRHVQRWKDYHWRFRPHIURPWKHWRSGRZQEHFDXVHSRVLWLYHLPSDFWVFDQVWLOO

FRPHIURPDFURVVUHODWLRQVKLSVRUWKHERWWRPXSWKRXJKLWPD\WDNHORQJHURUKDYHOHVVLPSDFW

WKDQWUDLQLQJNH\OHDGHUVIRUDWRSGRZQDSSURDFK

$SSO\LQJ1/3FDQDOZD\VEHKHOSIXO,WSURYLGHVPRUHDZDUHQHVVDQGHYDOXDWHVH[LVWLQJ

LQIRUPDWLRQIRUILOOLQJLQJDSV1RKDUPFRPHVIURPWHDFKLQJ1/3DVDQ\ERG\FDQEHQHILWIURP

1/3$QLPSRUWDQWUHPLQGHULVWKDW1/3LVDQRXWFRPHPRGHOQRWDSUREOHPVROYLQJPRGHO

WKXVDQRUJDQL]DWLRQPXVWNQRZWKHGHVLUHGRXWFRPHIRU1/3WRZRUN$QRWKHUUHPLQGHULVWKDW

WKH1/3XVHUKDVWRHQJDJHIRURWKHUVWRHQJDJH7KHHIIHFWLYHQHVVRI1/3GHSHQGVRQKRZ



 

UHFHSWLYHSHRSOHDUH7KHPRUHUHFHSWLYHSHRSOHDUHWRFRPPXQLFDWHWKHPRUHHIIHFWLYH1/3

ZLOOEH0RVWLPSRUWDQWO\1/3VKRXOGEHHFRORJLFDOIRUWKHEHQHILWRIDOOLQYROYHG

'DWDDQDO\VLV\LHOGHGVHYHUDOWKHPHVDOLJQHGZLWKWKHOLWHUDWXUHUHYLHZ7KHILUVWWKHPH

ZDVWKDWOHDGHUVDUHUHVSRQVLEOHIRURUJDQL]DWLRQHQJDJHPHQWDQGWKHLUDFWLRQVKDYHWKHSRZHUWR

FDXVHVKLIWV+DYLQJOHDGHUVIRFXVRQEHLQJIXOO\VHOIDZDUHWRRYHUFRPHEORFNVDQGOLPLWDWLRQV

ZLOOKHOSOHDGWKHLUHPSOR\HHVDQGSRVLWLYHO\LPSDFWWKHRUJDQL]DWLRQ&RPPXQLFDWLRQDQG

UDSSRUWZHUHWZRFRQFHSWVWKDWHPSOR\HHVPRVWYDOXHGLQVSHFLILFOHDGHUVKLSVW\OHVVHHLQJWKRVH

DVKDYLQJWKHEHVWHQJDJHPHQWRXWFRPHV&RPPXQLFDWLRQDQGUDSSRUWZHUHNH\1/3HOHPHQWV

ZKHUHDOHDGHUFDQOHDUQWRPDVWHUWKHVHFRQFHSWV(PRWLRQDOLQWHOOLJHQFHVXUIDFHGLQWKH

OLWHUDWXUHUHYLHZDQGLQWKHSDUWLFLSDQWLQWHUYLHZVDVDSLHFHRIWKHHQJDJHPHQWSX]]OHIRUOHDGHUV

EHVWDSSUHFLDWLQJWKHLUHPSOR\HHV(PRWLRQDOLQWHOOLJHQFHSURGXFHVEHWWHUOHDGHUVDQG

HQJDJHPHQW,IOHDGHUVKDYHHPRWLRQDOLQWHOOLJHQFHWKHQWKHLUOHDGHUVKLSVW\OHGRHVQRWPDWWHU

$SSO\LQJ1/3FDQKHOSWKHPUHFRJQL]HKRZWREHVWFRPPXQLFDWHGHVSLWHWKHLUGHIDXOWOHDGHUVKLS

VW\OHWREXLOGUDSSRUWDQGGHYHORSHPSOR\HHHQJDJHPHQW

(YHQWKRURXJKUHVHDUFKLVQRWZLWKRXWLWVJDSVDQGRSSRUWXQLWLHV$JDSH[LVWHGLQWKH

QXPEHURISDUWLFLSDQWVWKDWGLGQRWPHHWWKHPLQLPXPUHFRPPHQGDWLRQIRUTXDOLWDWLYHDQDO\VLV

VRWKHILQGLQJVFRXOGSURGXFHDGLIIHUHQWRXWFRPHZLWKDQRWKHURUPRUHSHUVSHFWLYHV$QRWKHU

JDSZDVWKDWWKHUHVHDUFKLQFOXGHG1/3SUDFWLWLRQHUV SHUVSHFWLYHVEXWQRWEXVLQHVVOHDGHUV

WUDLQHGLQXVLQJ1/3WKDWFDQVSHDNWRWKHRXWFRPH$QRSSRUWXQLW\H[LVWVWRWDNHWKHILQGLQJV

DQGUHFRPPHQGDWLRQVRIWKHFROOHFWLYHSDUWLFLSDQWVLPSOHPHQWWKHPLQDQRUJDQL]DWLRQDQGWKHQ

PHDVXUHWKHRXWFRPHWRYDOLGDWHWKH1/3SUDFWLWLRQHUV RSLQLRQVDQGH[SHULHQFHV$QRWKHU

RSSRUWXQLW\ZRXOGEHWRH[SORUH1/3 VDSSOLFDWLRQIURPWKHERWWRPXSDVRSSRVHGWRWKHWRS

GRZQWKURXJKOHDGHUVKLSRUDVDPL[HGOHYHODQGUROHDSSURDFKWRREVHUYHLIWKHLPSDFWWR



 

RUJDQL]DWLRQDOHQJDJHPHQWYDULHVZLWKZKRLQWKHRUJDQL]DWLRQUHFHLYHVWUDLQHGRQXVLQJ1/3

&KDSWHUZLOOFRYHUDGGLWLRQDOLQIRUPDWLRQRQOLPLWDWLRQVLQWHUSUHWDWLRQVLPSOLFDWLRQVDQG

UHFRPPHQGDWLRQV'DWDILQGLQJVDOORZWKHUHDGHUWRDVVHVVDQGGHWHUPLQHLI1/3LVDYLDEOH

VROXWLRQIRULPSURYLQJHPSOR\HHHQJDJHPHQWLQDQRUJDQL]DWLRQ

&KDSWHU6XPPDU\

&KDSWHUSURYLGHGGHWDLOVRQWKHVWXG\VDPSOHDQGUHVXOWV,WDOVRFRYHUHGWKHSLORWVWXG\

SURFHVVDQGRXWFRPHVKRZLQJLWVXVHIXOQHVVLQODXQFKLQJWKHGDWDFROOHFWLRQSURFHVV7KHGDWD

DQDO\VLVSURFHVVH[SODLQHGLQGHWDLOWKHVWHSVOHDGLQJWRWKHRU\GHYHORSPHQW7KHFKDSWHUWKHQ

FRQFOXGHGZLWKDGLVFXVVLRQRIWKHVWXG\¶VILQGLQJVZLWKILJXUHVSUHVHQWHGWRUHIOHFWWKHPHDQLQJ

RIWKHILQGLQJV:KHQORRNLQJDWWKHVWXG\¶VILQGLQJVLQUHODWLRQWRWKHLULPSRUWDQFHWRWKHFHQWUDO

UHVHDUFKTXHVWLRQ²%DVHGRQWKHH[SHUWNQRZOHGJHRI1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 

SUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVQHHGHGWRKHOSOHDGHUVLPSURYHHPSOR\HH

HQJDJHPHQW"²WKHILQGLQJVVKRZHGWKDWWKHWZRNH\VWRSURGXFLQJHQJDJHPHQWZLWK1/3DUHWR

FKDQJHOHDGHUEHOLHIV\VWHPVDQGVKLIWHPSOR\HHSHUVSHFWLYHVWREHLQJ³DWFDXVH´E\XVLQJ1/3

FRQFHSWVDVOHDGHUVKLSWUDLQLQJWRROV8VLQJ1/3FRQFHSWVDVOHDGHUVKLSWUDLQLQJWRROVFDQVKDSH

EHOLHIVDQGSHUVSHFWLYHVDQGRYHUFRPHFKDOOHQJHV7KRXJKVRPHFKDOOHQJHVH[LVWZLWKXVLQJ

1/3DVDOHDGHUVKLSWUDLQLQJWRROWKHRYHUDOOUHFRPPHQGDWLRQRIFHUWLILHG1/3SUDFWLWLRQHUVZDV

WRXVH1/3FRQFHSWVEHFDXVHLWFDQLPSURYHHPSOR\HHHQJDJHPHQW

7KHIROORZLQJFKDSWHU&KDSWHUSUHVHQWVWKHGLVFXVVLRQDQGFRQFOXVLRQ,WDOVRUHYLHZV

OLPLWDWLRQVLQWHUSUHWDWLRQVDQGSUDFWLFHLPSOLFDWLRQVRIWKHVWXG\¶VILQGLQJVDQGSURYLGHV

UHFRPPHQGDWLRQVIRUIXWXUHUHVHDUFK5HFRPPHQGDWLRQVH[SODLQKRZWKHUHVXOWVFDQDSSO\WR

RWKHUSRVWGRFWRUDOUHVHDUFKDQGOD\WKHIRXQGDWLRQIRUSRWHQWLDOWRSLFH[SDQVLRQ 



 

&KDSWHU'LVFXVVLRQDQG&RQFOXVLRQV

7KHSXUSRVHRIWKHTXDOLWDWLYHUHVHDUFKVWXG\ZDVWRH[SORUH1/3DVDOHDGHUVKLSWUDLQLQJ

WRROWROHDUQZKLFKFRQFHSWVOHDGHUVPLJKWDSSO\WRLPSURYHHPSOR\HHHQJDJHPHQWLQWKH

6RXWKZHVWHUQ8QLWHG6WDWHV$FFRUGLQJWR5HEHFFD-RQHV  OHDGHUVGRQRWSRVVHVVWKH

QHHGHGFRPSHWHQFLHVIRUWKHLUUROHV0RVWFRPPRQO\OHDGHUVJHWSURPRWHGWRPDQDJHPHQWUROHV

GXHWRIXQFWLRQDOH[SHUWLVHDQGWHFKQLFDOFRPSHWHQFHEXWKDYHOLWWOHWRQRGHYHORSPHQWWR

VXFFHHGLQWKHLUQHZUROH +DPLOWRQ 7KHOHDGHU¶VODFNRIFRPSHWHQFHOHDGVWRHPSOR\HH

HQJDJHPHQWLVVXHV7KHSUREOHPWKLVVWXG\DGGUHVVHGZDVOHDGHUVQHHGLQJWRLPSURYHORZ

HPSOR\HHHQJDJHPHQW7KHFRQFHSWXDOIUDPHZRUNGHSLFWHGLQ)LJXUH&KDSWHUH[SORUHGWKH

UHODWLRQVKLSEHWZHHQDOHDGHU¶VXVHRI1/3DQGWKHLPSDFWRQHPSOR\HHHQJDJHPHQW7KH

FRQFHSWXDOIUDPHZRUNHOHPHQWVFRQVLVWHGRIDQRYHUYLHZRI1/3HPSOR\HHHQJDJHPHQW

OHDGHUVKLSVNLOOVDQGQHHGHGOHDGHUVKLSWUDLQLQJIRUHIIHFWLYHQHVV

&KDSWHUFRQWLQXHVZLWKDGLVFXVVLRQDQGFRQFOXVLRQRQWKLVVWXG\¶VILQGLQJV7KHUHZDV

QRK\SRWKHVLVDVWKHUHVHDUFKZDVDTXDOLWDWLYHVWXG\7KHWKHRU\GHYHORSHGIURPWKHILQGLQJV

VKRZHGWKDWZKHUHHPSOR\HHHQJDJHPHQWFRQFHUQVH[LVWWKHUHLVDQ1/3FRQFHSWWKDWOHDGHUVKLS

FDQXVHWRRYHUFRPHFKDOOHQJHVWDLORULQJVROXWLRQVWRSURGXFHSRVLWLYHHPSOR\HHHQJDJHPHQW

LPSURYHPHQWV&KDSWHUGLVFXVVHVWKHOLPLWDWLRQVLQWHUSUHWDWLRQDQGSUDFWLFHLPSOLFDWLRQVRI

WKHVWXG\¶VILQGLQJVDVZHOODVSURYLGHVUHFRPPHQGDWLRQVIRUIXWXUHUHVHDUFK7KLVFKDSWHUDFWV

DVDFRQFOXVLRQLWSUHVHQWVDFRQFLVHVXPPDU\RIWKHVWXG\¶VILQGLQJVGLVFXVVHVDSSOLFDELOLW\WR

WKHVWXG\¶VILQGLQJVLQWRSUDFWLFHDQGSURYLGHVIXWXUHUHVHDUFKUHFRPPHQGDWLRQV

/LPLWDWLRQVRI6WXG\)LQGLQJV

7KLVVWXG\¶VILQGLQJVFRQVLGHUHGPDQ\OLPLWDWLRQV+RZHYHUWKHVWXG\GLGQRWDGGUHVVDOO

RIWKHPZKHQLWFDPHWRDVVXPSWLRQVZKLFKZDVWKHH[SHFWDWLRQ7KHILQGLQJVFRQILUPHGWKH



 

IROORZLQJWKUHHDVVXPSWLRQVOHDGHUVZLWK1/3WUDLQLQJZRXOGEHPRUHHIIHFWLYHDQGZRXOGEH

DEOHWRLQFUHDVHHPSOR\HHHQJDJHPHQWPRUHHIIHFWLYHO\1/3SUDFWLWLRQHUVDUHWKHH[SHUWVZKR

ZLOONQRZZKLFKWDUJHWHG1/3FRQFHSWVOHDGHUVVKRXOGDGRSWIRUVXFFHVVDQGLIDQRUJDQL]DWLRQ

WUDLQVDOOLWVOHDGHUVZLWK1/3WKHQWKH\ZLOOEHPRUHVXFFHVVIXOWKDQFRPSHWLQJRUJDQL]DWLRQV

7KHIROORZLQJWZRDVVXPSWLRQVGLGQRWFRQQHFWWRWKHGDWDFROOHFWLRQDQGILQGLQJVLQWKLV

UHVHDUFKVWXG\1/3FRQFHSWVDUHDWUDLQLQJWRROWKDWLVPRUHHIIHFWLYHWKDQWUDGLWLRQDOOHDGHUVKLS

WUDLQLQJWRROVDQG1/3FRQFHSWVVWDQGWKHWHVWRIWLPHDQGFDQFRQWLQXHWRDSSO\HYHQDV

RUJDQL]DWLRQVDQGWHFKQRORJ\GHYHORSPHQWV

7RDGGUHVVUHVWULFWLRQVGXHWRJHRJUDSKLFDOORFDWLRQDQG&29,'WKHUHVHDUFKHU

FRQGXFWHGDOOLQWHUYLHZVYLUWXDOO\RYHU=RRPZKLFKOLPLWHGDQ\QRQYHUEDOREVHUYDWLRQV

RFFXUULQJRXWVLGHRIWKHFDPHUDIUDPH6HYHUDOOLPLWDWLRQVH[LVWHGIURPWKHVDPSOLQJFKDOOHQJHV

7KHUHVHDUFKHUILUVWFRQWDFWHGSURVSHFWLYHSDUWLFLSDQWVE\XVLQJWKHZHERUWKURXJKVWXGHQWHPDLO

$IWHUWZRZHHNVWKHUHVHDUFKHUFRQWDFWHGSURVSHFWLYHSDUWLFLSDQWVRYHUWKHZHERUWKURXJK

SHUVRQDOHPDLOLIWKHUHZDVQRUHVSRQVH,IWKHUHZDVQRUHVSRQVHJHQHUDWHGDIWHUWKHVHFRQG

FRQWDFWWKHUHVHDUFKHUPDGHSKRQHFDOOVWZRZHHNVODWHUOHDYLQJDYRLFHPDLOZKHUHDSSURSULDWH

0DQ\GLGQRWUHVSRQGHYHQDIWHUHPSOR\LQJDOOWKUHHRIWKHVHFRPPXQLFDWLRQPHWKRGV

&KDOOHQJHVZLWKHPDLOLQYROYHGLQFOXGHGLQYDOLGHPDLOUHWXUQQRWLILFDWLRQVRULQDFWLYHSKRQH

QXPEHUV6HYHUDOSUDFWLWLRQHUVUHVSRQGHGWKDWWKH\GLGQRWKDYHWLPHIRUYDULRXVUHDVRQVRUWKDW

WKHLU1/3NQRZOHGJHZDVQRWWKHULJKWIRFXVRUH[SHULHQFHIRUWKHVWXG\$FRXSOHRIWKH

SUDFWLWLRQHUVFRQWDFWHGPHQWLRQHGWKH&29,'SDQGHPLFFDXVHGWKHPWREHWRREXV\WR

SDUWLFLSDWHZKLFKSRWHQWLDOO\VHUYHGDVDQLQGLFDWRURIZK\PDQ\RWKHUSUDFWLWLRQHUVQHYHU

UHVSRQGHGWRWKHSDUWLFLSDWLRQUHTXHVW$IHZSUDFWLWLRQHUVUHSOLHGWKDWWKRXJKWKH\GLGUHJLVWHU

RQDVHDUFKIRU1/3SUDFWLWLRQHUVLQDVSHFLILFVWDWHWKH\ZHUHQRWLQWKH6RXWKZHVWHUQ8QLWHG



 

6WDWHVZKLFKWRRNWKHPRXWVLGHRIWKHUHVHDUFKVDPSOHUHJLRQ$QDGGLWLRQDOFKDOOHQJHZLWK

UHFUXLWPHQWZDVLQIROORZWKURXJKRIWKRVHZKRVDLGWKH\ZRXOGSDUWLFLSDWHQRWFRPPLWWLQJWR

DQLQWHUYLHZDIWHUDOO

/LPLWDWLRQVH[LVWHGRQWKHJHQHUDOL]DELOLW\RIWKHVWXG\7KHVWXG\GHVLJQIRFXVHGRQ

OHDGHUVKLSXVLQJ1/3WRLPSURYHHPSOR\HHHQJDJHPHQW7KHVWXG\DQGILQGLQJVZHUHQRW

SHUWLQHQWRXWVLGHRIRUJDQL]DWLRQVOHDGHUVKLSRUHPSOR\HHHQJDJHPHQWFRQFHUQVDVWKHILQGLQJV

RQO\H[SORUHG1/3LPSDFWZLWKLQDQRUJDQL]DWLRQDOHQYLURQPHQW7KHVWXG\RIIHUHGVRPH

JHQHUDOL]DELOLW\KHOSIXODFURVVDQ\RUJDQL]DWLRQIRUDOOOHDGHUVDQGDQ\HPSOR\HHHQJDJHPHQW

FRQFHUQV7KHXQLYHUVDOJHQHUDOL]DELOLW\RIWKHVWXG\IRUWKRVHWKUHHDUHDVOHGWRWUDQVIHUDELOLW\

7KH1/3SUDFWLWLRQHUVZHUHIURPYDU\LQJEDFNJURXQGVDQGKDGGLIIHULQJH[SHULHQFHVZLWKWKH

XVHRI1/37KRXJKPRVWRIWKHPGLGQRWVKDUHWKHVDPHVLWXDWLRQVDQGFLUFXPVWDQFHVPRVW

H[SHULHQFHGWKHVDPHVXFFHVVDV1/3OHDGHUV8VLQJ1/3FRQFHSWVWUDQVFHQGDVSHFLILF

RUJDQL]DWLRQW\SHRUVL]HOHDGHUVKLSVW\OHDQGOHDGHUVKLSSRVLWLRQ7KHSURFHVVRIOHDGHUVXVLQJ

1/3WRLPSURYHHPSOR\HHHQJDJHPHQWFDQDSSO\WRGLIIHUHQWFRQWH[WVVXFFHVVIXOO\7KH

ILQGLQJV H[SHFWDWLRQZDVWKDWUHSOLFDWLQJWKLVVWXG\LQRWKHUJHRJUDSKLFUHJLRQVRUZLWKDODUJHU

QXPEHURI1/3SUDFWLWLRQHUVZRXOGSURGXFHVLPLODUUHVXOWV

2YHUDOOWKHUHZHUHIHZOLPLWDWLRQVWRGDWDWUXVWZRUWKLQHVV7KHUHVHDUFKHUDVNHGRSHQ

HQGHGTXHVWLRQVWRDOORZSDUWLFLSDQWVRSSRUWXQLWLHVWRSURYLGHERWKSRVLWLYHDQGQHJDWLYH

IHHGEDFNRQXVLQJ1/30HPEHUFKHFNLQJLQYROYHGVHQGLQJDFRS\RIWKHVWXG\¶VILQGLQJVWRDOO

SDUWLFLSDQWVEXWWKHOLPLWDWLRQH[LVWHGLQWKDWQRWDOOSDUWLFLSDQWVSURYLGHGIHHGEDFN

'XULQJWKHLQWHUYLHZVVRPHWHFKQLFDOGLIILFXOWLHVRFFXUUHGDIIHFWLQJGDWDFROOHFWLRQ

ZKHUHWKHDXGLRUHFRUGLQJ QRYLGHRUHFRUGLQJXVHG ODJJHG2QHSDUWLFLSDQWKDGWRXVHD

VSHDNHUSKRQHGXULQJWKHLQWHUYLHZZKLFKUHVXOWHGLQVOLJKWOLPLWDWLRQVRQWKHYHUEDOUHOLDELOLW\



 

EXWQRPLVLQWHUSUHWDWLRQVRFFXUUHG7KHUHVHDUFKHUIROORZHGWKHLQWHUYLHZSURWRFROHQVXULQJD

FRQVLVWHQWLQWHUYLHZSURFHVVEHWZHHQSDUWLFLSDQWV7RHQVXUHGHSHQGDELOLW\SDUWLFLSDQWVDOO

UHFHLYHGWKHVDPHUHVHDUFKTXHVWLRQV7KHRQO\GHYLDWLRQIURPWKHSURWRFRODQGH[DFWTXHVWLRQV

SRVHGZDVLIWKHUHVHDUFKHUQHHGHGFODULILFDWLRQRQWKHSDUWLFLSDQW¶VDQVZHURUWRFRQILUPWKH

TXHVWLRQ

'HVSLWHWKHOLPLWDWLRQVQRWHGKHUHLQWKHUHZDVMXVWLILFDWLRQIRUWKHVWXG\ VILQGLQJV YDOXH

DQGULJRU$OWKRXJKLQWHUYLHZLQJSDUWLFLSDQWVZDVQRWSRVVLEOHDVGHVLUHGWKHUHVHDUFKHU

JDWKHUHGHQRXJKGDWDIRUVDWXUDWLRQWRRFFXUDQGWRFRQVLGHUWKHTXDOLWDWLYHUHVHDUFKVXIILFLHQW

&RQVLVWHQWPDWFKLQJDQGWKHPHVEHWZHHQSDUWLFLSDQWUHVSRQVHVVXSSRUWHGWKHILQGLQJ¶V

FUHGLELOLW\ZLWKDKLJKSDUWLFLSDQWHQJDJHPHQWOHYHO7ULDQJXODWLRQUHYHDOHGFRQQHFWLRQVWR1/3

HPRWLRQDOLQWHOOLJHQFHDQGHPSOR\HHHQJDJHPHQWIURPPXOWLSOHVRXUFHVDQGSDUWLFLSDQWV1R

QHJDWLYHLQVWDQFHVFRQWUDGLFWHGSULRUREVHUYDWLRQVFRQILUPLQJWKHUHVXOWV3DUWLFLSDQWVUHFHLYHG

LQWHUYLHZWUDQVFULSWVDOORZLQJWKHPDQRSSRUWXQLW\WRUHVSRQGWRDQ\WKLQJWKDWZDVQRWFOHDU$OO

H[SUHVVHGVDWLVIDFWLRQZLWKWKHGDWDRIIHULQJQRFRUUHFWLRQV7KHHSLVWHPRORJLFDODVVXPSWLRQLQ

WKLVVWXG\ZDVWKDWVLQFH1/3LPSURYHVDSHUVRQ¶VFRPPXQLFDWLRQVNLOOVDQGDELOLW\WRLQIOXHQFH

RWKHUVLIOHDGHUVUHFHLYH1/3WUDLQLQJWKH\ZLOOEHFRPHPRUHHIIHFWLYHOHDGHUVDQGZLOOLQWXUQ

LPSURYHHPSOR\HHHQJDJHPHQW7KHILQGLQJVVXSSRUWHGWKLVDVVXPSWLRQDVDOORIWKHSDUWLFLSDQWV

DJUHHGWKDWOHDGHUVFRXOGXVHPDQ\1/3FRQFHSWVWRRYHUFRPHFKDOOHQJHVDQGEORFNVERWK

SHUVRQDODQGSURIHVVLRQDOWKDWKLQGHUHPSOR\HHHQJDJHPHQW

,QWHUSUHWDWLRQRI6WXG\)LQGLQJV

7KHIROORZLQJGHVFULEHVWKHLQIHUHQFHVGUDZQIURPWKHVWXG\¶VILQGLQJVUHJDUGLQJ1/3¶V

LPSDFWRQOHDGHUVKLSDQGHPSOR\HHHQJDJHPHQWLQRUJDQL]DWLRQVDQGKRZWKDWFRPSDUHVZLWKWKH

FXUUHQWVFKRODUVKLS7KHLQWHUSUHWDWLRQVLQFOXGHGWKHVWXG\¶VFRQWULEXWLRQVWROHDUQLQJKRZ



 

VKDSLQJOHDGHUVWREHPRUHHIIHFWLYHWKURXJK1/3WUDLQLQJFDQLPSURYHHPSOR\HHV 

RUJDQL]DWLRQV HQJDJHPHQW7KHGDWDDQDO\VLV\LHOGHGVHYHUDOWKHPHVDQGLQWHUSUHWDWLRQVWKDW

DOLJQHGZLWKFXUUHQWVFKRODUVKLS7KHILUVWWKHPHZDVWKDWOHDGHUVDUHUHVSRQVLEOHIRU

RUJDQL]DWLRQHQJDJHPHQWDQGWKHLUDFWLRQVKDYHWKHSRZHUWRFDXVHVKLIWVSURPRWLQJDFXOWXUHRI

HQJDJHPHQW'DYLV  VXSSRUWHGWKDWDGLUHFWFRUUHODWLRQH[LVWVEHWZHHQOHDGHUVKLSSUDFWLFHV

DQGHPSOR\HHVDWLVIDFWLRQ2UJDQL]DWLRQDOHQJDJHPHQWVWDUWVZLWKVHQLRUOHDGHUVKLS $QWRQ\

 )XOO\VHOIDZDUHOHDGHUVFDQEHWWHURYHUFRPHEORFNVDQGOLPLWDWLRQVLQOHDGLQJWKHLU

HPSOR\HHVDQGSRVLWLYHO\LPSDFWWKHRUJDQL]DWLRQ/HDGHUVVWULYLQJIRUH[FHOOHQFHDQGSUDFWLFLQJ

WKHILYHSULQFLSOHVIRUVXFFHVVZLOOEHDEOHWRVKLIWWKHRUJDQL]DWLRQDOFXOWXUHWRH[FHOOHQFH

(IIHFWLYHVHQLRUOHDGHUVFDQLQFUHDVHRUJDQL]DWLRQHIIHFWLYHQHVVE\IDFLOLWDWLQJDFXOWXUHWKDW

FXOWLYDWHVHPSOR\HHHPRWLRQDOZHOOEHLQJ :DVKLQJWRQ 

 $QRWKHULQWHUSUHWDWLRQRIWKHVWXG\¶VILQGLQJVZDVWKDWDQ\OHDGHUFRXOGEHVXFFHVVIXO

XVLQJ1/3+ROW+DOODQG*LOOH\  SURYLGHGWKDWDOOOHYHOVRIOHDGHUVKLSLQIOXHQFHDQ

RUJDQL]DWLRQ¶VSHUIRUPDQFHVRFRPSDQLHVQHHGWRFRQVLGHUOHDGHUHIIHFWLYHQHVVDWDOOOHYHOV

/HDGHUVKLSOHYHODQGOHDGHUVKLSVW\OHGRHVQRWPDWWHUZKHQXVLQJ1/3DQGLVQRWDUHTXLUHPHQW

WRSURGXFHLQIOXHQFH$OHDGHU¶VHIIHFWLYHQHVVDQGDELOLW\WRIDFLOLWDWHHQJDJHPHQWFRPHVZLWK

WKHLUDSSURDFK(IIHFWLYHOHDGHUVSHUFHLYHWKHLPSDFWRIOHDGHUVKLSVW\OHRQIROORZHUVDQGKRZWR

XVHWKHNQRZOHGJHWRPRWLYDWHIROORZHUVWRDFKLHYHRUJDQL]DWLRQDOVXFFHVV %HFNOHV ,ID

OHDGHULVWUDLQHGLQ1/3WKH\FDQLPSURYHWKHLUVNLOOVIRUEHWWHULQIOXHQFHDQGEHFRPHPRUH

HIIHFWLYHUHJDUGOHVVRIWKHLUSRVLWLRQLQWKHFRPSDQ\DQGWKHLUGHIDXOWOHDGHUVKLSVW\OH7ZRRI

WKHFRQFHSWVWKDWHPHUJHGWKHPRVWGXULQJLQWHUYLHZVIRUSURGXFLQJHQJDJHPHQWZHUH

FRPPXQLFDWLRQDQGUDSSRUW&RPPXQLFDWLRQDQGUDSSRUWDUHNH\1/3HOHPHQWVZKHUHDOHDGHU

OHDUQVWRPDVWHUWKHVHFRQFHSWV1/3RIIHUVDVHWRIFRPPXQLFDWLRQWHFKQLTXHVDQGVWUDWHJLHV



 

GHVLJQHGIRUOHDUQLQJSHUVRQDOFKDQJHDQGUDSSRUWEXLOGLQJ 5RJR]LĔVND 1/3FDQDSSO\

WRDQ\OHDGHUVKLSVW\OHDQGEHHIIHFWLYHO\XVHGEHFDXVHLWWHDFKHVWKHPKRZWRKDYHPRUHVHOI

DZDUHQHVVDQGFRPPXQLFDWHEHWWHUZKLFKDUHLPSRUWDQWVNLOOVIRUSURGXFLQJHQJDJHPHQW

7KHVNLOOVEHKDYLRUFKDUDFWHULVWLFVDQGVW\OHRIOHDGHUVDUHZKDWGHWHUPLQHWKHOHYHORI

HQJDJHPHQWLQDQRUJDQL]DWLRQ7KHUHLVDJDSEHWZHHQWKHOHDGHUV¶DELOLW\WRGHPRQVWUDWH

EHKDYLRUVWKDWJHQHUDWHHQJDJHPHQWDQGWKHOHYHORIHQJDJHPHQWGHVLUHGE\HPSOR\HHV 'DYLV

 1/3LPSURYHVFRPPXQLFDWLRQVNLOOVWKURXJKDJUHDWHUXQGHUVWDQGLQJRIQRQYHUEDO

FRPPXQLFDWLRQVNLOOV $OPXWDLUL $UHYLHZRIWKHOLWHUDWXUHUHYHDOHGWKDWFRPPXQLFDWLRQ

DQGUDSSRUWDUHWZRFRQFHSWVWKDWHPSOR\HHVPRVWYDOXHLQVSHFLILFOHDGHUVKLSVW\OHVVHHLQJ

WKRVHDVKDYLQJWKHEHVWHQJDJHPHQWRXWFRPHV,GHDOOHDGHUFKDUDFWHULVWLFVLQFOXGHFOHDU

FRPPXQLFDWLRQDERXWDOOWKHGHWDLOVRIWKHMREDQGDKDQGVRQDSSURDFKWRSUREOHPVROYLQJ

&HQNFL g]oHOLN 1/3FRPPXQLFDWLRQDOORZVIRUGHOLYHULQJDPHVVDJHLQDZD\

VRPHERG\FDQUHFHLYHLWDQGLWLVWKHDZDUHQHVVRIVHOIDQGRWKHUVWKDWEXLOGVUDSSRUW7KH

SXUSRVHRI1/3DVDWUDLQLQJWRROLVWRIRFXVRQFRPPXQLFDWLRQDQGEHKDYLRUFKDQJHVWR

LQIOXHQFHHPSOR\HHVDQGLPSURYHZRUNLQJUHODWLRQVKLSVWRZDUGDFKLHYLQJGHVLUHGRXWFRPHVWKDW

LQFUHDVHFRPSHWLWLYHQHVV 1DKDU 3DUWLFLSDQWVWDWHGWKDWDQ\WUDLQLQJZRXOGKHOS

OHDGHUVEHEHWWHUFRPPXQLFDWRUVEHFDXVH1/3WHDFKHVSHRSOHKRZWRFRPPXQLFDWH7KH

LPSURYHGVNLOOVZLWK1/3WUDLQLQJRIIHUVDVROXWLRQWRDGGUHVVODFNLQJOHDGHUFRPSHWHQFLHVDQG

SURPRWHVOHDGHUEHKDYLRUDQGVW\OHWKDWSRVLWLYHO\LPSDFWVHQJDJHPHQW

%HIRUHFRPSOHWLQJWKLVVWXG\WKHUHVHDUFKHUZDVQRWFOHDULILWZDVSRVVLEOHWRFKDQJH

OHDGHUV¶EHOLHIV\VWHPVDQGVKLIWHPSOR\HHSHUVSHFWLYHVXVLQJ1/3,QWHUYLHZVZLWKSDUWLFLSDQWV

UHYHDOHGLWZDVSRVVLEOH&KDQJLQJOHDGHUEHOLHIV\VWHPVLVLPSRUWDQWIRUUHPRYLQJEORFNVWKDW

ZRXOGFUHDWHHQJDJHPHQWLVVXHV6KLIWLQJHPSOR\HHSHUVSHFWLYHVLVLPSRUWDQWIRUJHWWLQJ



 

HPSOR\HHVWRKDYHDPRUHSRVLWLYHRXWORRNIRUHQJDJHPHQW/DQJXDJHLVLPSRUWDQWIRUFKDQJLQJ

WKHEHOLHIV\VWHPVRIOHDGHUVDQGVKLIWLQJHPSOR\HHSHUVSHFWLYHV3DUWLFLSDQWH[SODLQHGWKDW

FKDQJLQJWKHODQJXDJHFKDQJHVKRZRQHVHHVWKHZRUOG:KHQDSSO\LQJ1/3WHFKQLTXHV

ODQJXDJHDQGFRPPXQLFDWLRQLQIOXHQFHWKHOHDUQHU¶VPLQGVRWKDWWKHEUDLQFDQUHDFWE\

LPSURYLQJRUFKDQJLQJEHKDYLRUSDWWHUQV .KDODQGL =RJKL 7KHUHDUHZD\VWRRYHUFRPH

UHVLVWDQFHWRFKDQJHEXWKDYLQJOHDGHUEX\LQLVLPSRUWDQW3DUWLFLSDQWVDLGWKDWVKLIWLQJWKH

OHDGHU¶VEHOLHIV\VWHPVVKLIWVWKHHQWLUHRUJDQL]DWLRQ6HYHUDOSDUWLFLSDQWVHPSKDVL]HGOHDGHUV

OHDGLQJE\H[DPSOHDVDZD\WRVKLIWHPSOR\HHV3DUWLFLSDQWH[SODLQHGWKDWWKHOHDGHUVQHHGWR

KDYHDSURJUDPPHUSUHVHQFHDQGSURJUDPPHUVWDQFHEHFDXVHWKLVFDQLPSDFWZKHWKHUHPSOR\HHV

IHHOWKH\DUHDWFDXVHRUDWHIIHFW(PSRZHULQJOHDGHUEHKDYLRUVWRZDUGHPSOR\HHVERRVWV

HPSOR\HHHQJDJHPHQWSK\VLFDOO\HPRWLRQDOO\DQGFRJQLWLYHO\ &HQNFL g]oHOLN 7KH

OHDGHUHPSOR\HHUHODWLRQVKLSHIIHFWLYHLQWHUQDOFRPPXQLFDWLRQDQGIHHGEDFNDQGSURIHVVLRQDO

WUDLQLQJDQGGHYHORSPHQWDORQJZLWKFRPSHQVDWLRQDZDUGVEHQHILWVDQGLQFHQWLYHVDUHWKH

QHFHVVDU\HOHPHQWVOHDGHUVQHHGWRFRQVLGHUIRUHQJDJHPHQW *UDQW /HDGHUVVKRXOG

FRQVLGHUWKH1/3HPSOR\HHV¶OHDUQLQJVXEPRGDOLWLHVWRHQVXUHWKH\UHVSRQGLQDZD\WKDWDOLJQV

ZLWKWKHLUSUHIHUHQFHDQGVW\OH 7KDNXUHWDO $SSURDFKLQJFKDQJHWKURXJKHPSOR\HH

DSSUHFLDWLRQZLOOSURGXFHEHWWHUUHVXOWVDQGHQJDJHPHQW

$QRWKHULQWHUSUHWDWLRQIURPWKHVWXG\ZDVWKDWHPRWLRQDOLQWHOOLJHQFHLVLPSRUWDQWIRU

HQJDJHPHQWDQG1/3GHYHORSVHPRWLRQDOLQWHOOLJHQFHZKLFKVXSSRUWVWKDW1/3FDQLPSURYH

HQJDJHPHQW(PRWLRQDOLQWHOOLJHQFHVXUIDFHGLQWKHOLWHUDWXUHUHYLHZDQGLQWKHSDUWLFLSDQW

LQWHUYLHZVDVDSLHFHRIWKHHQJDJHPHQWSX]]OHIRUOHDGHUVEHVWUHFRJQL]LQJWKHLUHPSOR\HHV

/HDGHUVZLWKRXWHPRWLRQDOLQWHOOLJHQFHPD\KDYHXQGHVLUDEOHEHKDYLRUVWKDWFDXVHHQJDJHPHQW

LVVXHVZKLFKLVKRZ1/3WUDLQLQJFDQKHOSWKHPGHYHORSWKDWVNLOO6WULYLQJIRUH[FHOOHQFH






WHDFKHVDOHDGHUUHVSRQVLELOLW\IRUWKHLURZQSHUVRQDOFKDQJHDQGKHLJKWHQHPRWLRQDO

LQWHOOLJHQFH/HDGHUVZLWKKLJKHUHPRWLRQDOLQWHOOLJHQFHKDYHDJUHDWHUXQGHUVWDQGLQJRI

LPSRUWDQWGHFLVLRQPDNLQJWKURXJKFUHDWLYHLGHDVDQGYLDEOHSUREOHPVROYLQJ &RWHOQLF 

7LPEDOLXF (PRWLRQDOO\LQWHOOLJHQWOHDGHUVFDQFRQWUROWKHLUHPRWLRQVWRPDNHVRXQGDQG

REMHFWLYHGHFLVLRQV &RWHOQLF 7LPEDOLXF ,IOHDGHUVKDYHHPRWLRQDOLQWHOOLJHQFHWKH\

ZLOOKDYHPRUHHIIHFWLYHFRPPXQLFDWLRQVNLOOVLQOHDGHUHPSOR\HHLQWHUDFWLRQVZKLFKSRVLWLYHO\

LQIOXHQFHVHPSOR\HHHQJDJHPHQW

$QLPSRUWDQWVWXG\LQWHUSUHWDWLRQZDVWKDWDQ1/3FRQFHSWH[LVWVIRUHYHU\VFHQDULREXW

1/3LVQRWDRQHVL]HILWVDOOVROXWLRQWKDWRYHUUXOHVDOORWKHUPRGDOLWLHV1/3LVQRWDEODQNHW

VROXWLRQEXWFDQEHVXFFHVVIXOZKHQDSSO\LQJWRRWKHUPDQDJHPHQWWHFKQLTXHV 'XQN 

3DUWLFLSDQWH[SODLQHGWKDWXVLQJ1/3FDQSURGXFHFKDOOHQJHVLIXVHGWRRPXFKLQSODFHRI

RWKHUWHFKQLTXHVRULQDQDQWLTXDWHGZD\3XEOLVKHGDYDLODEOH1/3LQWHUYHQWLRQVFDQVHUYHDVD

FKHFNOLVWLQVWHDGRIEOLQGDFFHSWDQFHRUGLVPLVVDO &RXFK 3DUWLFLSDQWFDXWLRQHGWKDW

1/3GRHVQRWFRQVLVWRI³DEXQFKRI´WHDFKLQJWHFKQLTXHVVROHO\WHDFKLQJLVRODWHGWHFKQLTXHV

GRHVQRWZRUN/HDGHUVQHHGWRIXOO\JUDVSDOOWKHWRROVDYDLODEOHDQGQRWMXVWSLFNDQGFKRRVH

IURPWKHP)RUEHVWUHVXOWVOHDGHUVKLSWUDLQLQJSURJUDPVVKRXOGIXOO\FHUWLI\OHDGHUVDV1/3

SUDFWLWLRQHUVIRUWKHFRUUHFWDQGPRVWHIIHFWLYHDSSOLFDWLRQRI1/3LQWKHRUJDQL]DWLRQ

3DUWLFLSDQWIHOWWKDW1/3VKRXOGFRPELQHZLWKRWKHUIUDPHZRUNVDQGWHFKQLTXHVXVLQJLWLQ

FRPELQDWLRQDQGQRWDVDSULPDU\DSSURDFK3DUWLFLSDQWDGPLWWHGWKDWFRPSDQLHVFRXOGEH

VXFFHVVIXOZLWKRXW1/3EXWFODLPHGWKDW1/3H[LVWVLQGLIIHUHQWSLHFHVRIH[LVWLQJFXOWXUHZLWKLQ

RUJDQL]DWLRQVDVPXFKEXVLQHVVGHYHORSPHQWFRQWDLQV1/3HYHQLILWLVXQGHUDGLIIHUHQWQDPH

:KHQLWFRPHVWRDVVHVVLQJWKHPDJQLWXGHRIWKHVWXG\¶VUHVXOWV1/3FDQRIIHUVPDOO

UHVXOWVXVHIXOIRUUHILQLQJH[LVWLQJLQIRUPDWLRQRULQIRUPLQJPDQDJHPHQWDQGQRWDVDPHDQVRI






PDNLQJODUJHSUDFWLFHLPSURYHPHQWV1/3FDQSURGXFHLQFUHDVHGRUJDQL]DWLRQHIIHFWLYHQHVV

WKURXJKLPSURYHGHQJDJHPHQWZKHQEXWZRXOGEHVWEHLQFRUSRUDWHGLQWROHDGHUVKLSWUDLQLQJ

KROLVWLFDOO\DVDFHUWLILFDWLRQLQVWHDGRIRQO\VSHFLILFFRQFHSWVRUWHQHWVLQLVRODWLRQ1/3VKRXOG

QRWEHWKHVROHVROXWLRQIRULPSURYLQJHPSOR\HHHQJDJHPHQWEXWDVDQHIIHFWLYHWRROEHVWXVHGLQ

FRPELQDWLRQZLWKRWKHUPRGDOLWLHVIRUPD[LPXPUHVXOWV3DUWLFLSDQWSRLQWHGRXWWKDWLWLV

LPSRUWDQWWRH[SHULPHQWZLWKXVLQJ1/3LQDQRUJDQL]DWLRQDVWKHUHLVQRKDUPLQWHDFKLQJ1/3

SUDFWLFHV7RTXRWH3DUWLFLSDQW³1/3LVQRWPDJLFLW¶VMXVWUHDOO\XVHIXO´

3UDFWLFH,PSOLFDWLRQVRI6WXG\)LQGLQJV

7KHSUREOHPDGGUHVVHGLQWKLVVWXG\ZDVORZHPSOR\HHHQJDJHPHQWWKDWOHIWXQUHVROYHG

FDQEHKDUPIXOWRDQRUJDQL]DWLRQ1LQHW\SHUFHQWRIOHDGHUVNQRZWKDWHQJDJHPHQWLVHVVHQWLDO

IRUVXFFHVVEXWGRQRWXQGHUVWDQGKRZWRRUWDNHDSSURSULDWHDFWLRQWRLPSOHPHQWVWUDWHJLHV

QHHGHGIRUHQJDJHPHQW *UDQW ,QWKLVVWXG\WKHUHVHDUFKHUH[DPLQHG1/3DVDOHDGHUVKLS

WRROWRLPSURYHHPSOR\HHHQJDJHPHQW,QWHUYLHZLQJ1/3SUDFWLWLRQHUVSURYLGHGLQVLJKWVRQ

ZKHWKHU1/3LVDQHIIHFWLYHDSSURDFK$VDUHVXOWWKHVWXG\¶VILQGLQJVZLOOEHQHILWRUJDQL]DWLRQV

DQGOHDGHUVORRNLQJIRUVWUDWHJLHVWRDGGUHVVWKHLUHPSOR\HHHQJDJHPHQWFRQFHUQV,IXVLQJ1/3

EHFDPHVWDQGDUGSUDFWLFHWRLQFOXGHLQOHDGHUVKLSWUDLQLQJSURJUDPVWKHSHUFHQWDJHVRIXQVXUH

OHDGHUVDQGORZHQJDJHPHQWLQRUJDQL]DWLRQVFRXOGVKLIWGUDPDWLFDOO\WRKLJKHUSHUFHQWDJHV7KH

SDUWLFLSDQWVVKDUHGLQVLJKWVWKDWOHGWRLGHQWLILHGWKHPHVUHJDUGLQJ1/3DSSOLFDWLRQDQGKRZ

LWLPSDFWVHPSOR\HHHQJDJHPHQW)URPWKHLULQWHUYLHZVDQGWKHGDWDFROOHFWHGFRPHLQIHUHQFHV

IRUDSSO\LQJWKHVWXG\¶VILQGLQJV

7KHILUVWILQGLQJWKDWHPHUJHGIURPWKLVTXDOLWDWLYHUHVHDUFKZDVWKHSRWHQWLDO1/3

LPSDFWVRQRUJDQL]DWLRQHQJDJHPHQWJRDOV2IWKHTXHVWLRQVIRXUFRYHUHG1/3FRQFHSWV

FHQWHUHGDURXQGUHDFKLQJRUJDQL]DWLRQHQJDJHPHQWJRDOV3UDFWLFLQJWKHILYHSULQFLSOHVIRU






VXFFHVVVWULYLQJIRUH[FHOOHQFH1/3DVDZKROHV\VWHPVDSSURDFKDQGWKH³GRZLWK´1/3

DSSURDFKDOOFRQWULEXWHGGLUHFWO\WRDFKLHYLQJRUJDQL]DWLRQHQJDJHPHQWJRDOV'DWDFROOHFWHG

DERXWWKHVHIRXU1/3FRQFHSWVSURYLGHGDUHDOL]DWLRQRIWKHRYHUDUFKLQJZD\WKDW1/3FDQ

LPSDFWLWVHQJDJHPHQWJRDOV7KHIRXU1/3FRQFHSWVVKRZHGKRZHQJDJHPHQWOHDGVWRVXFFHVV

RIIHULQJDEHWWHUFRPSUHKHQVLRQRIDFWLRQOHDGHUVFDQWDNHWRJHWWKHUH8VLQJWKLVLQIRUPDWLRQ

FDQKHOSJLYHOHDGHUVGLUHFWLRQIRULPSOHPHQWLQJRUJDQL]DWLRQVWUDWHJLHVQHHGHGIRUHQJDJHPHQW

7KHILYHSULQFLSOHVIRUVXFFHVVFDQVKLIWDQRUJDQL]DWLRQ¶VFXOWXUHIURPRQHWKDWGRHVQRW

UHSUHVHQWHQJDJHPHQWWRRQHRIDVXFFHVVPLQGVHWZKLFKZRXOGKDYHSRVLWLYHLPSDFWVRQERWK

WKHHPSOR\HHVDQGWKHRUJDQL]DWLRQ6WULYLQJIRUH[FHOOHQFHWDNHVDQDSSURDFKRIIRFXVLQJRQ

SRVVLELOLWLHVLQVWHDGRIREVWDFOHVZKLFKLVHVVHQWLDOIRURYHUFRPLQJREVWDFOHVEORFNVDQGDOLJQLQJ

WKHRUJDQL]DWLRQ1/3RIIHUVDZKROHV\VWHPVDSSURDFKWRFKDQJHWKDWSURGXFHVUDSLGFKDQJH

VDYHVWLPHDQGERRVWVSURGXFWLYLW\PDNLQJIRUPRUHHIILFLHQWDFKLHYHPHQWRIRUJDQL]DWLRQ

HQJDJHPHQWJRDOV1/3DVD³GRZLWK´RUFROODERUDWLYHDQGLQFOXVLYHDSSURDFKKDVDSRVLWLYH

LQIOXHQFHRQRWKHUVDQGWKHHQYLURQPHQWUHJDUGOHVVRIUHSRUWLQJVWUXFWXUHEHFDXVHLWFDQIORZ

WKURXJKGLIIHUHQWFKDQQHOVRILQIRUPDWLRQDQGFUHDWHULSSOHVRUZDWHUIDOOVRISRVLWLYHLPSDFWWR

WKHRUJDQL]DWLRQHQYLURQPHQW2UJDQL]DWLRQVORRNLQJIRUDZKROHV\VWHPVDSSURDFKWKDWDOORZV

WKHPWRIDFLOLWDWHDQDOLJQHGFXOWXUHWKDWFROODERUDWHVWRRYHUFRPHREVWDFOHVDQGIXQFWLRQVRXWRI

DSRVLWLYHPLQGVHWVKRXOGORRNQRIXUWKHUWKDQ1/3

7KHVHFRQGILQGLQJVUHYHDOHGWKHRXWFRPHVRIXVLQJ1/3DVDOHDGHUVKLSWUDLQLQJWRRO

=XQHG  SURSRVHGWKDWHIIHFWLYHOHDGHUVKLSFDQKDSSHQWKURXJKWUDLQLQJDQGH[SHULHQFH

7KHGDWDDQDO\VLVVKRZVWKDW1/3DVDOHDGHUVKLSWUDLQLQJWRROFDQSURGXFHPRUHHIIHFWLYH

OHDGHUV$Q\OHDGHUFDQUHFHLYHWUDLQLQJWREHDQHIIHFWLYHOHDGHUUHJDUGOHVVRIWKHLUOHDGHUVKLS

VW\OHEHFDXVH1/3ILOOVLQWKHJDSVRIWKHLUFXUUHQWVW\OHE\WHDFKLQJWKHPKRZWREHPRUH






HIIHFWLYHFRPPXQLFDWRUVDQGJLYHEHWWHUIHHGEDFNWRRWKHUV1/3KHOSVOHDGHUVRYHUFRPHWKH

EORFNVWKDWFRXOGKROGWKHPEDFNIURPJRDODFKLHYHPHQW/HDGHUVDWDQ\OHYHOFDQEHQHILWIURP

XVLQJ1/3DQGXVHLWLQDQ\FRQWH[WZKLFKPDNHVLWDYHUVDWLOHWRRO/HDGHUVFDQWDLORU1/3WR

XVLQJWKHVSHFLILFPRGDOLWLHVDQGVXEPRGDOLWLHVWKDWZLOODGGUHVVWKHLVVXHVWKH\DUHKDYLQJ

SURGXFLQJDPRUHHIILFLHQWZD\RIKDQGOLQJEXVLQHVVQHHGVEHFDXVHLWGRHVQRWZDVWHWLPHWU\LQJ

WRDSSO\XQLYHUVDODSSURDFKHVWKDWPD\EHLQHIIHFWLYH7KHILQGLQJVVXSSRUWWUDLQLQJOHDGHUVRQ

1/3VRWKH\OHDUQKRZWROHDGHIIHFWLYHO\

7KHVWUDWHJ\RILQWHJUDWLQJ1/3LQWROHDGHUVKLSWUDLQLQJDOORZVRUJDQL]DWLRQVWRSURGXFH

EHWWHUOHDGHUVZKLFKWKHQSURGXFHVPRUHHQJDJHGHPSOR\HHV/HDGHU¶VEHOLHIV\VWHPVFDQ

FKDQJHUHPRYLQJEORFNVWKDWZRXOGSUHYHQWWKHPIURPRSHUDWLQJRXWRIH[FHOOHQFH7KRVH

OHDGHUVFDQWKHQZRUNWRVKLIWHPSOR\HHSHUVSHFWLYHVWREHLQJDWFDXVHZKLFKZLOOSURGXFHD

PRUHHQJDJHGHPSOR\HHEDVH7KHILQGLQJVDOLJQHGZLWKWKHOLWHUDWXUHUHYLHZRQWKHFRQQHFWLRQ

EHWZHHQOHDGHULQIOXHQFHDQGHQJDJHPHQWLQDQRUJDQL]DWLRQVXSSRUWLQJZK\1/3VKRXOGEHSDUW

RIOHDGHUVKLSWUDLQLQJ$GLUHFWFRUUHODWLRQH[LVWVEHWZHHQOHDGHUVKLSSUDFWLFHVDQGHPSOR\HH

VDWLVIDFWLRQ 'DYLV 'U$UPRXU SHUVRQDOFRPPXQLFDWLRQ6HSWHPEHU H[SODLQHG

ZLWKKLV1/3PRGHOVWKDWPHWDSURJUDPVYDOXHVFODULILFDWLRQDQGFUHDWLQJVWDWHVRIHQJDJHPHQW

DQGWUXVWZHUHKRZOHDGHUVFRXOGVKDSHHQJDJHPHQWLQDQRUJDQL]DWLRQ7KH1/3PRGHOVXVHG

E\'U$UPRXUKHOSRUJDQL]DWLRQVZLWKHQJDJHPHQWDVSDUWRIOHDGHUVKLSWUDLQLQJ

(DFKSDUWLFLSDQWUHFRPPHQGHGRUJDQL]DWLRQVSUDFWLFH1/3HYHQLIWKH\GLGQRW

VSHFLILFDOO\XVHWKHWHUP1/3RUXVH1/3LQDIRUPDOL]HGZD\0RVWUHFRPPHQGHGVWDUWLQJZLWK

NH\OHDGHUVZKRSRVVHVVWKHPRVWLQIOXHQFHRUH[HFXWLYHOHDGHUVKLSIRUPD[LPXPFXOWXUHVKLIW

DQGLQIOXHQFH6L[WHHQRXWRISDUWLFLSDQWVH[SUHVVHGSRVLWLYHH[SHULHQFHVZLWK1/3PDNLQJLW

ZRUWKFRQVLGHULQJIRUDQRUJDQL]DWLRQWKDWZDQWVWRDGGUHVVWKHLUHQJDJHPHQWLVVXHV7KH






LQIHUHQFHVFDQKHOSDQRUJDQL]DWLRQGHWHUPLQHLI1/3LVWKHULJKWVROXWLRQWRDGGUHVVWKHLU

HQJDJHPHQWQHHGV

5HFRPPHQGDWLRQVIRU)XUWKHU5HVHDUFK

7KLVVWXG\RIIHUVVHYHUDOUHFRPPHQGDWLRQVUHJDUGLQJWKHQH[WVWHSVIRUIXWXUHUHVHDUFK

7KHVWXG\GLGQRWDGGUHVVDOOWKHDVVXPSWLRQVVRWKLVRIIHUVDQRSSRUWXQLW\WRH[SORUHUHVHDUFK

DURXQGWKRVHDVVXPSWLRQV2WKHUZLVHWKHILUVWUHFRPPHQGDWLRQIRUIXWXUHUHVHDUFKLVWRUHFUHDWH

WKLVTXDOLWDWLYHDSSURDFKEXWZLWKDODUJHUSRSXODWLRQ7KLVZLOOKHOSXQGHUVWDQGLIWKLVVWXG\¶V

GDWDUHVXOWVFKDQJHGZLWKSHRSOHRUPRUHLIWKH\FDQKHOSEHWWHUXQGHUVWDQGIDFWRUVWKDW

JHQHUDWHQHJDWLYHH[SHULHQFHVRYHUSRVLWLYHRQHV2QHRIWKHJDSVLQWKLVVWXG\ZDVWKDWWKH

QXPEHURISDUWLFLSDQWVGLGQRWPHHWWKHPLQLPXPUHFRPPHQGDWLRQIRUTXDOLWDWLYHDQDO\VLVVR

WKHILQGLQJVFRXOGSURGXFHDGLIIHUHQWRXWFRPHZLWKDQRWKHURUPRUHSHUVSHFWLYHV([SDQGLQJ

WRDEURDGHUJHRJUDSKLFDUHDZRXOGLGHQWLI\DQ\LQIOXHQFHVSHUFHSWLRQVRUUHVXOWVEDVHGRQ

ORFDWLRQ$SRVVLEOHOLPLWDWLRQRIWKLVUHFRPPHQGHGVWXG\LVWKDWWKHUHVXOWV\LHOGVLPLODUUHVXOWV

HYHQLIUHSOLFDWHGRQDODUJHUEURDGHUVFDOH7KHVDPHFKDOOHQJHVLQJDWKHULQJSDUWLFLSDQWVZRXOG

OLNHO\H[LVWDVEHIRUHEXWLWPD\EHHDVLHUWRILQGWKHGHVLUHGQXPEHUZLWKDEURDGHUJHRJUDSKLF

DUHDWRVHOHFWIURP7KHSRVVLELOLW\H[LVWVWKDWZLWKPRUHSDUWLFLSDQWVWKHILQGLQJVUHYHUVHWR

SURGXFHDPRUHQHJDWLYHSHUVSHFWLYHRI1/3XVHLQRUJDQL]DWLRQVDVRSSRVHGWRWKHSRVLWLYH

SURGXFHGIURPWKLVVWXG\+DYLQJDODUJHUSDUWLFLSDQWSRROZRXOGHLWKHUUHLQIRUFHWKLVVWXG\¶V

ILQGLQJVRUSURGXFHDPRUHDFFXUDWHUHSUHVHQWDWLRQRI1/3¶VLPSDFW

7KHVHFRQGUHFRPPHQGDWLRQLQYROYHVXVLQJDTXDQWLWDWLYHUHVHDUFKVWXG\2QHRIWKH

JDSVRIWKLVUHVHDUFKVWXG\ZDVWKDWLWRQO\LQFOXGHGWKHSHUVSHFWLYHVRI1/3SUDFWLWLRQHUVEXW

QRWOHDGHUVWUDLQHGWRXVH1/3LQEXVLQHVVZKRFDQVSHDNWRWKHRXWFRPH$QRSSRUWXQLW\H[LVWV

WRWDNHWKHFROOHFWLYHSDUWLFLSDQWV ILQGLQJVDQGUHFRPPHQGDWLRQVLPSOHPHQWWKHPLQDQ






RUJDQL]DWLRQDQGWKHQPHDVXUHWKHRXWFRPHWRYDOLGDWH1/3SUDFWLWLRQHUV¶RSLQLRQVDQG

H[SHULHQFHVDJDLQVWOHDGHUVH[SHULHQFHGLQ1/3LPSOHPHQWDWLRQZKRFDQVSHDNWRWKHRXWFRPH

7KHLGHDLVQRWWRWDNHWKLVVWXG\¶VILQGLQJVVHOHFWDQRUJDQL]DWLRQWUDLQOHDGHUVRQKRZWRXVH

WKH1/3FRQFHSWVLGHQWLILHGWRKHOSZLWKHQJDJHPHQWDQGPHDVXUHWKHLPSDFWVWRHQJDJHPHQW

RYHUDPRQWKWLPHOLQHWROHDUQWKHHIIHFWLYHQHVV$UHFRPPHQGDWLRQRIWKLVVWXG\¶V

DSSURDFKZRXOGEHWRLPSOHPHQWDFURVVPXOWLSOHRUJDQL]DWLRQVDQGPHDVXUHLIDQ\GLIIHUHQFH

H[LVWVEHWZHHQHDFKRUJDQL]DWLRQ¶VILQGLQJV,QDGGLWLRQWRVLPXOWDQHRXVO\VWXG\LQJPXOWLSOH

RUJDQL]DWLRQVWKHVFRSHZRXOGWDNHDQHQRUPRXVDPRXQWRIUHVRXUFHVWRSHUIRUP$QH[SHFWHG

FKDOOHQJHZRXOGEHJHWWLQJOHDGHUEX\LQWRUHFHLYH1/3WUDLQLQJDQGSUDFWLFHLWLQWHQWLRQDOO\

GXULQJWKDWWLPH$QLPSOLFDWLRQFRXOGEHWKDWWKHHIIRUWVHQGXSEHLQJDZDVWHRIWLPHWKDWWKHUH

LVWRRPXFKUHVLVWDQFHGXULQJLPSOHPHQWDWLRQRUWKDWWKHUHVXOWVGRQRWKDYHDODVWLQJLPSDFWWR

PDNHWKHHIIRUWZRUWKLW7KHUHVHDUFKHUKRSHVWREHDEOHFRQGXFWSRVWGRFWRUDWHUHVHDUFKIRUWKLV

VWXG\DWVRPHSRLQW

7KHWKLUGUHFRPPHQGDWLRQLVDTXDOLWDWLYHUHVHDUFKVWXG\WRH[SORUHXVLQJ1/3WR

LPSURYHHPSOR\HHHQJDJHPHQWVSHFLILFDOO\LQYLUWXDOHQYLURQPHQWV7KH&29,'SDQGHPLF

SUHVHQWHGQHZSUREOHPVZLWKHQWLUHFRPSDQLHVIRUFHGWRZRUNUHPRWHO\IRUH[WHQGHGSHULRGV

1HYHUEHIRUHKDYHRUJDQL]DWLRQVKDGWRIXQFWLRQHQWLUHO\LQYLUWXDOHQYLURQPHQWVXQGHUSDQGHPLF

UHVWULFWLRQV:LWKHPSOR\HHHQJDJHPHQWDOUHDG\EHLQJDQLVVXHLQPRVWRUJDQL]DWLRQVWKH

WUDQVLWLRQWRDYLUWXDOHQYLURQPHQWFRXOGOLNHO\H[DVSHUDWHH[LVWLQJFRQFHUQV&XUUHQWWHFKQRORJ\

DOORZVIRUGLIIHUHQWDSSURDFKHVWKDQSUHYLRXVO\DYDLODEOH$FFRUGLQJWR$EHO+XQW  

FRPSDQLHVVXFFHVVIXOLQGLJLWDOOHDGHUVKLSKDYHEHWWHUPDUNHWSODFHSHUIRUPDQFHDQGPRUH

HQJDJHGHPSOR\HHV,Q-XOLH$EHO+XQW¶VDUWLFOHVKHPHQWLRQHGEXLOGLQJWUXVWDVIRXQGDWLRQDOWR

EHFRPLQJDQLQVSLULQJDQGFDSDEOHOHDGHUIRUSRVLWLYHHQJDJHPHQWDORQJZLWKQHHGLQJWR






FRPPXQLFDWHFOHDUO\GHYHORSLQJRWKHUVDQGPDQDJLQJGLUHFWUHSRUW¶VSHUIRUPDQFHDVHVVHQWLDOV

IRUHQVXULQJHQJDJHPHQWLQWKHYLUWXDOZRUNHQYLURQPHQW1/3LVDWRROIRUEXLOGLQJWUXVW

FRPPXQLFDWLQJVXFFHVVIXOO\DQGGHYHORSLQJRWKHUVWKURXJKIHHGEDFNZKLFKPDNHVLW

ZRUWKZKLOHWRH[SORUHXVLQJ1/3LQWKHYLUWXDOHQYLURQPHQW2QHSDUWLFLSDQWPHQWLRQHGKDYLQJD

FOLHQWZKRVXFFHVVIXOO\XVHG1/3WRKHOSZLWKDVPRRWKHUWUDQVLWLRQLQPRYLQJKLVFRPSDQ\LQWR

DYLUWXDOHQYLURQPHQW8VHIXOLQIRUPDWLRQFDQDOVRFRPHIURPDQHQJDJHPHQWVWXG\FHQWHUHGRQ

XVLQJ1/3LQYLUWXDOHQYLURQPHQWV$FKDOOHQJHZRXOGEHWKDWHQJDJHPHQWLQDYLUWXDO

HQYLURQPHQWFDQEHPRUHGLIILFXOWWRPHDVXUH

$ILQDOUHFRPPHQGDWLRQLVXVLQJTXDQWLWDWLYHDQDO\VLVWRH[SORUHDSSO\LQJ1/3IURPWKH

ERWWRPXSDVRSSRVHGWRWKHWRSGRZQWKURXJKOHDGHUVKLSRUDVDPL[HGOHYHODQGUROHDSSURDFK

7KLVFRXOGKHOSDVFHUWDLQLIWKHLPSDFWRQRUJDQL]DWLRQDOHQJDJHPHQWYDULHVZLWKZKRLQWKH

RUJDQL]DWLRQUHFHLYHV1/3WUDLQLQJ0RUHWKDQRQHSDUWLFLSDQWFRPPHQWHGWKDWWUDLQLQJNH\

RUJDQL]DWLRQDOOHDGHUVFRXOGKHOSVKDSHWKHLUFXOWXUH7KHUHDVRQIRUWUDLQLQJNH\OHDGHUVLV

EHFDXVHDVWKH\HPERG\1/3LWZRXOGLPSDFWWKRVHDURXQGWKHPDQGWULFNOHGRZQDFURVVWKH

RUJDQL]DWLRQ7KHOLWHUDWXUHVXSSRUWVWKHFRQFHSWRINH\OHDGHUVVKDSLQJHQJDJHPHQW$FFRUGLQJ

WR.LP=KDQJ:DQJDQG=KX  WRSPDQDJHPHQWKDVDYLWDOUROHLQRUJDQL]DWLRQ

SHUIRUPDQFHGXHWRLWVLQWHJUDOUROHLQJXLGLQJRUJDQL]DWLRQDOGLUHFWLRQ

(IIHFWLYHVHQLRUOHDGHUVFDQLQFUHDVHRUJDQL]DWLRQHIIHFWLYHQHVVE\IDFLOLWDWLQJDFXOWXUH

WKDWFXOWLYDWHVHPSOR\HHHPRWLRQDOZHOOEHLQJ :DVKLQJWRQ :KHQVHQLRUOHDGHUVKLS

XQGHUVWDQGVWKHDQWHFHGHQWVRIHQJDJHPHQWWKH\FDQEHWWHUPDNHGDWDGULYHQGHFLVLRQVWR

LPSURYHHQJDJHPHQW +DOH (YHQZLWKWKHLQIRUPDWLRQWKDWWRSOHYHOOHDGHUVDUH

RUJDQL]DWLRQDOGULYHUVVRPHRIWKHSDUWLFLSDQWVPDGHPXOWLSOHUHFRPPHQGDWLRQVWRPDNH1/3

DYDLODEOHWRDOOHPSOR\HHVQRWMXVWWKHOHDGHUVWRWUDQVIRUPWKHHQWLUHRUJDQL]DWLRQIRUJRRG






7KH\IHOWWUDLQLQJHYHU\OHDGHURUHPSOR\HHLVQRWQHFHVVDU\WRH[SHULHQFH1/3 VEHQHILWVLQDQ

RUJDQL]DWLRQ7KRVHSDUWLFLSDQWVIHOWWKDWWUDQVIRUPDWLRQGRHVQRWKDYHWRFRPHIURPWKHWRS

GRZQEHFDXVHSRVLWLYHLPSDFWVFDQVWLOOFRPHIURPDFURVVUHODWLRQVKLSVRUWKHERWWRPXS$Q

DQWLFLSDWHGOLPLWDWLRQLVWKDWLWPD\WDNHORQJHURUKDYHOHVVLPSDFWWKDQWUDLQLQJNH\OHDGHUVIRUD

WRSGRZQDSSURDFK

&RQFOXVLRQ

7KHSUREOHPWKHVWXG\DGGUHVVHGZDVORZHPSOR\HHHQJDJHPHQWWKDWOHIWXQUHVROYHG

FDQEHKDUPIXOWRDQRUJDQL]DWLRQ'LVHQJDJHPHQWLVDOHDGHU¶VUHVSRQVLELOLW\GLVHQJDJHPHQWLV

WKHV\PSWRPRIDSUREOHPDQGOHDGHUVQHHGWRLGHQWLI\WKHSUREOHPDQGDGGUHVVLWZLWKWKH

FRUUHFWVROXWLRQ '\H *UDQW  H[SODLQHGWKDWOHDGHUVRIWHQODFNVWUDWHJLHVWR

RYHUFRPHGLVHQJDJHPHQW7KHVWXG\UHYHDOHGWKDW1/3DVOHDGHUVKLSWUDLQLQJKHOSVOHDGHUV

LPSURYHWKHLUVNLOOVZKLFKFDQDGGUHVVORZHPSOR\HHHQJDJHPHQW7UDLQLQJOHDGHUVLQ1/3

LPSURYHVWKHLUHPRWLRQDOLQWHOOLJHQFHDQGKHOSVWKHPEHWWHUFRPPXQLFDWHDQGWKDWLPSURYHG

FRPPXQLFDWLRQKHOSVLPSURYHHQJDJHPHQWZKLFKUHVROYHVWKHSUREOHPRIOHDGHUVQRWKDYLQJWKH

WUDLQLQJDQGVNLOOVWREHHIIHFWLYHDQGHQJDJLQJOHDGHUV7KHVWXG\RIIHUVEHQHILWWROHDGHUVE\

WHDFKLQJWKHPDPHWKRGIRULPSURYLQJWKHLUOHDGHUVKLSVNLOOVWKURXJK1/3WRKHOSHPSOR\HHV

JHQHUDWHPRUHHQJDJHPHQWDQGKHOSWKHRUJDQL]DWLRQRSHUDWHPRUHHIIHFWLYHO\E\FUHDWLQJPRUH

VXFFHVVIURPKLJKHUHPSOR\HHHQJDJHPHQW

7KHVWXG\¶VFRQFHSWXDOIUDPHZRUNKHOSHGH[SORUHWKHUHODWLRQVKLSEHWZHHQ1/3XVHE\

OHDGHUVDQGWKHLPSDFWRQHPSOR\HHHQJDJHPHQWE\UHYLHZLQJ1/3HPSOR\HHHQJDJHPHQW

OHDGHUVKLSVNLOOVDQGQHHGHGOHDGHUVKLSWUDLQLQJIRUHIIHFWLYHQHVV7KHDVVXPSWLRQZDVWKDWLI

OHDGHUVDGRSW1/3FRQFHSWVWKH\ZLOOEHFRPHPRUHHIIHFWLYHOHDGHUVZKRZLOOLQWXUQLPSURYH

HPSOR\HHHQJDJHPHQWSRVLWLYHO\LPSDFWLQJRUJDQL]DWLRQDOSHUIRUPDQFH7KHILQGLQJVVXSSRUWHG






WKHDVVXPSWLRQWKDWDSSO\LQJ1/3FRQFHSWVFDQPDNHOHDGHUVPRUHHIIHFWLYHOHDGHUVSURGXFLQJD

SRVLWLYHLQIOXHQFHRQHQJDJHPHQW:KHQUHYLHZLQJWKHFHQWUDOUHVHDUFKTXHVWLRQ²%DVHGRQWKH

H[SHUWNQRZOHGJHRI1HXUR/LQJXLVWLF3URJUDPPLQJSUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWV

WKDWFDQKHOSOHDGHUVLPSURYHHPSOR\HHHQJDJHPHQW"²WKHDQVZHUUHYHDOHGWKHUHFRXOGEHD

ZLGHYDULHW\RIFRQFHSWVXVHG$FFRUGLQJWRSDUWLFLSDQWVOHDGHUVFDQXVH1/3FRQFHSWV

LQGHSHQGHQWO\RULQFRPELQDWLRQIRUSURGXFLQJDSRVLWLYHLPSDFWRQHQJDJHPHQW&RQFHSWV

LQFOXGHPRGHOLQJFRPPXQLFDWLRQPHWDSURJUDPVUHSURJUDPPLQJIRUH[FHOOHQFHPDWFKLQ

SODFHYLVLRQDQGYDOXHVUDSSRUWVWUHVVPDQDJHPHQWUHDFKLQJUHVRXUFHIXOVWDWHVSDWWHUQVIRU

EHKDYLRURXWFRPHVRSHUDWLQJDWDFRQVFLRXVDQGXQFRQVFLRXVOHYHOFRUHWUDQVIRUPDWLRQ

EHKDYLRUDOIOH[LELOLW\VWUDWHJ\PLUURULQJHPRWLRQDOLQWHOOLJHQFHSUHIHUUHGVHTXHQFHVRI

UHSUHVHQWDWLRQODESURILOHORFXVRIFRQWUROPDSSLQJDFURVVLQWLPHRUWKURXJKWLPHVHQVRU\

ODQJXDJHZLQZLQDQFKRULQJSUHVXSSRVLWLRQVHIIHFWLYHXVHRIODQJXDJHLQVWDQWLQGXFWLRQZHOO

IRUPHGRXWFRPHFRDFKLQJPHWDPRGHOTXHVWLRQLQJODQJXDJHSDWWHUQVODQJXDJHIUDPLQJ

UHIUDPLQJH[SHULHQFHVXQGHUVWDQGLQJPRWLYDWLRQVSHUFHSWXDOSRVLWLRQLQJIHHGEDFNPHWDSKRUV

LGHQWLW\DQGYDOXHVFKDQJHPLVVLRQDQGYLVLRQVWDWHPHQWVV\VWHPLFDSSURDFKWRUROHSRUWUD\DO

FOHDULQJEORFNVUHZDUGGHVLUHGEHKDYLRUFRQJUXHQF\DQGFRPSOLDQF\IRFXVRQGHVLUHRYHUZKDW

LVXQGHVLUDEOHORJLFDOOHYHOVRIOHDUQLQJDQGVHQVRU\DFXLW\7KHVHFRQFHSWVODUJHO\PDNHXSWKH

HOHPHQWVDQGGHVLJQRIWKHILYHSULQFLSOHVIRUVXFFHVVVWULYLQJIRUH[FHOOHQFHDQGWKH³GRZLWK´

DSSURDFK3UDFWLFLQJWKHILYHSULQFLSOHVIRUVXFFHVVVWULYLQJIRUH[FHOOHQFHDQGWKH³GRZLWK´

DSSURDFKDUHDGGLWLRQDO1/3FRQFHSWVWKDWZLOOKHOSDFKLHYHRUJDQL]DWLRQDOHQJDJHPHQWJRDOV

7KHUHVXOWLQJWKHRU\GHYHORSHGZDVWKDWZKHUHDQHPSOR\HHHQJDJHPHQWFRQFHUQH[LVWVWKHUHLV

DQ1/3FRQFHSWWKDWOHDGHUVKLSFDQXVHWRRYHUFRPHFKDOOHQJHVDQGWDLORUVROXWLRQVWRSURGXFH

SRVLWLYHLPSDFWVRQHPSOR\HHHQJDJHPHQW






7KHUHVXOWVPHDQWKDWEDVHGRQH[SHUWRSLQLRQVRI1/3SUDFWLWLRQHUV1/3FDQDQGVKRXOG

VHUYHDVDOHDGHUVKLSWUDLQLQJWRROIRURUJDQL]DWLRQVORRNLQJWRLPSURYHHPSOR\HHHQJDJHPHQW

7KHUHVXOWVGRQRWPHDQWKDW1/3LVWKHRQO\VROXWLRQRUXVHGLQLVRODWLRQLQVWHDGRISDLULQJLW

ZLWKRWKHUHIIHFWLYHVWUDWHJLHV7KHVWXG\UHVXOWVVXSSRUWHGH[LVWLQJOLWHUDWXUHWKDW1/3FDQ

LPSURYHOHDGHUHIIHFWLYHQHVVE\GHYHORSLQJWKHLUVNLOOVOLNHKRZWREHEHWWHUFRPPXQLFDWRUVDQG

KDYHHPRWLRQDOLQWHOOLJHQFHOHDGLQJWRPRUHHQJDJHGHPSOR\HHV7KHSXUSRVHRI1/3DVD

WUDLQLQJWRROLVWRIRFXVRQFRPPXQLFDWLRQDQGEHKDYLRUFKDQJHVWRLQIOXHQFHHPSOR\HHVDQG

GHYHORSZRUNLQJUHODWLRQVKLSVWRDFKLHYHGHVLUHGRXWFRPHVWKDWZRXOGLQFUHDVHFRPSHWLWLYHQHVV

1DKDU 1DKDU  SURYLGHGFRQWH[WWKDWWKHSRVLWLYHFKDQJHIURPXVLQJ1/3VWHPV

IURPXVLQJFRPPXQLFDWLRQWHFKQLTXHVDQGVWUDWHJLHVDVDFDWDO\VWIRUOHDUQLQJ1DKDU  

FRQQHFWHGWRHPRWLRQDOLQWHOOLJHQFHLQH[SODLQLQJWKDWWDUJHWHGODQJXDJHDQGEHKDYLRUIRUGHVLUHG

UHVXOWVFRPHWKURXJKUHDOL]LQJKRZRWKHUVWKLQNDQGIHHO7KHFRQVHTXHQFHVRIWKHUHVXOWVFDQEH

VSOLWLQWRWZRVFHQDULRV7KHILUVWLVWKDWDQRUJDQL]DWLRQLGHQWLILHVWKHYDOXH1/3FDQEULQJDQG

FKRRVHVWRLPSOHPHQWLWZLWKVRPHRUDOOOHDGHUVWRVKLIWWRHQJDJHPHQWLQWKHLUZRUNIRUFH7KH

VHFRQGFRQVHTXHQFHLVWKDWDQRUJDQL]DWLRQGHWHUPLQHV1/3 VFKDOOHQJHVRXWZHLJKWKHEHQHILW

DQGFKRRVHQRWWRLPSOHPHQWLWLQWRWKHLURUJDQL]DWLRQDOVWUDWHJ\

$QRWHZRUWK\OLPLWDWLRQH[LVWHGRQWKHVWXG\¶VJHQHUDOL]DELOLW\DVWKHILQGLQJVZRXOGQRW

EHDSSOLFDEOHRXWVLGHRIRUJDQL]DWLRQVOHDGHUVKLSLQIRUPDWLRQRUHPSOR\HHHQJDJHPHQW

FRQFHUQV$QRWKHUOLPLWDWLRQZDVWKDWHYHQDIWHUWKHUHVHDUFKWKHILQGLQJVDUHVWLOODQHFGRWDODVD

QHHGH[LVWVIRUVWDWLVWLFDOHYLGHQFHWRPDNHWKHLPSDFWVRI1/3IRUPDODQGVFLHQWLILF+RZHYHU

WKLVVWXG\GLGQRWH[DPLQH1/3DVDV\VWHPLFDSSURDFKDQGDQDO\]HGWKHGDWDV\VWHPLFDOO\IRU

HYLGHQFHWKDW1/3ZRUNVZLWKYDOLGDWLRQ1/3SUDFWLWLRQHUV¶H[SHULHQFHV:KDWWKLVVWXG\

UHYHDOHGLVWKDW1/3SUDFWLWLRQHUH[SHUWVFDQSHUVRQDOO\WHVWLI\WKDWWKHLUH[SHULHQFHVKDYHVKRZQ






1/3WREHDQHIIHFWLYHOHDGHUVKLSWUDLQLQJWRROWKDWFDQSURGXFHSRVLWLYHHQJDJHPHQWDQGKHOSLQ

UHDFKLQJRUJDQL]DWLRQDOJRDOV2UJDQL]DWLRQVXVLQJ1/3SURGXFHGDQHFGRWDOUHSRUWVWKDWVKRZ

KRZ1/3LPSURYHGHQJDJHPHQWPRWLYDWLRQVDQGMRESHUIRUPDQFHZLWKLQWKHLURUJDQL]DWLRQ

.RWHUDHWDO 7KHSHUVRQDOWHVWLPRQ\RI1/3SUDFWLWLRQHUVFRPELQHGZLWKWKHH[LVWLQJ

OLWHUDWXUHQRWLQJRUJDQL]DWLRQDOVXFFHVVXVLQJ1/3RIIHUVVWURQJVXSSRUWIRUDGRSWLQJ1/3DVD

OHDGHUVKLSWUDLQLQJWRRO

7KLVVWXG\GLGQRWSURYLGHLQVLJKWLQWROHDGHUSHUVSHFWLYHVDQGH[SHULHQFHVLPSOHPHQWLQJ

1/3LQWRWKHLUOHDGHUVKLSSUDFWLFHVDQGWKHHIIHFWVRQHPSOR\HHHQJDJHPHQWLQWKHLURUJDQL]DWLRQ

RUVWDWLVWLFDOGDWDPHDVXULQJ1/3LPSDFWRQDQRUJDQL]DWLRQ7KHFRQFOXVLRQGUDZQZLWK

UHDVRQDEOHDVVXUDQFHZDVWKDW1/3LVDQHIIHFWLYHOHDGHUVKLSWUDLQLQJWRROWKDWOHDGHUVFDQXVHWR

LPSURYHHPSOR\HHHQJDJHPHQWEXWWKDWLWZLOOWDNHWKHLUFRPPLWPHQWDQGWLPHIRUSRVLWLYH

UHVXOWV7KHUHVXOWVVXJJHVWHGWKDWLIDQRUJDQL]DWLRQLVZLOOLQJWRDFFHSWDQGZRUNWKURXJKWKH

FKDOOHQJHVRIXVLQJ1/3WKDW1/3FDQKHOSDFKLHYHRUJDQL]DWLRQDOHQJDJHPHQWJRDOVDQGGRVR

PRUHHIILFLHQWO\WKDQDQRWKHUDSSURDFK

7KHVWXG\¶VILQGLQJVRIIHUPXFKDSSOLFDELOLW\DVHQJDJHPHQWLVLPSRUWDQWIRUDOO

RUJDQL]DWLRQVDQGDOOOHDGHUVFDQOHDUQIURPWKH1/3FRQFHSWVWRKDYHJUHDWHUFRJQLWLRQRIKRZ

WREHDQHIIHFWLYHOHDGHU2QHUHFRPPHQGDWLRQIRUIXWXUHUHVHDUFKRQ1/3DQGHQJDJHPHQWLVWR

FRPSOHWHDTXDQWLWDWLYHUHVHDUFKVWXG\WKDWXVHVWKLVVWXG\¶VILQGLQJV7KLVVWXG\ZRXOGLQYROYH

VHOHFWLQJDQRUJDQL]DWLRQWUDLQLQJOHDGHUVRQKRZWRXVHWKH1/3FRQFHSWVLGHQWLILHGWRKHOSZLWK

HQJDJHPHQWDQGPHDVXULQJWKHLPSDFWVWRHQJDJHPHQWRYHUDPRQWKWLPHOLQHWROHDUQLWV

HIIHFWLYHQHVV WKLVZRXOGEHWRDLPDWSURGXFLQJVWDWLVWLFDOHYLGHQFHRIWKHLPSDFW $QRWKHU

UHFRPPHQGDWLRQLVWRFRQGXFWDTXDOLWDWLYHUHVHDUFKVWXG\WKDWH[SORUHVXVLQJ1/3WRLPSURYH

HPSOR\HHHQJDJHPHQWVSHFLILFDOO\LQYLUWXDOHQYLURQPHQWV/DVWO\DQRWKHUUHFRPPHQGDWLRQLV






WRFRQGXFWDTXDQWLWDWLYHDQDO\VLVWRH[SORUHDSSO\LQJ1/3IURPWKHERWWRPXSDVRSSRVHGWRWKH

WRSGRZQWKURXJKOHDGHUVKLSRUDVDPL[HGOHYHODQGUROHDSSURDFKDQGUROHDSSURDFKWRREVHUYH

LIWKHLPSDFWRQRUJDQL]DWLRQDOHQJDJHPHQWYDULHVZLWKZKRUHFHLYHV1/3WUDLQLQJ7KHUHLV

PRUHWRH[SORUHZKHQLWFRPHVWR1/3OHDGHUVKLSDQGHPSOR\HHHQJDJHPHQWEXWWKLVVWXG\KDV

RIIHUHGDVROLGIRXQGDWLRQIRUVXSSRUWLQJWKHXVHRI1/3E\OHDGHUVKLSLQRUJDQL]DWLRQVORRNLQJ

WRLPSURYHHPSOR\HHHQJDJHPHQW



 






5HIHUHQFHV

$EHO+XQW-  ZD\VWRERRVWHPSOR\HHHQJDJHPHQWLQWKHGLJLWDOHUD&KLHI/HDUQLQJ


2IILFHU  ±

$EX-EDUD1 :RUOH\-  /HDGLQJWRZDUGQHZKRUL]RQVZLWKVRIWVNLOOV2QWKH
+RUL]RQ  ±GRL27+

$GLJX]HO=  5HODWLRQVKLSVDPRQJOHDGHUHIIHFWLYHQHVVOHDUQLQJRULHQWDWLRQHIIHFWLYH
FRPPXQLFDWLRQWHDPFUHDWLYLW\DQGVHUYLFHLQQRYDWLRQLQWKHVHUYLFHVHFWRU%XVLQHVVDQG
(FRQRPLFV5HVHDUFK-RXUQDO  ±GRLEHUM

$KPDG$%LEL3 0DMLG$+$  7KHLPSDFWRIWUDLQLQJDQGGHYHORSPHQWDQG
WUDQVIRUPDWLRQDOOHDGHUVKLSRYHURUJDQL]DWLRQDOFRPPLWPHQWDPRQJDFDGHPLFVWDIILQ
SXEOLFWHUWLDU\LQVWLWXWLRQV7KHEXIIHULQJUROHRIFRZRUNHUVXSSRUW,QWHUQDWLRQDO-RXUQDO
RI(FRQRPLF3HUVSHFWLYHV  ±

$NLDWH<:'  (PSOR\HHV¶WUXVWWRZDUGVPDQDJHPHQWDQGRUJDQL]DWLRQDOFRPPLWPHQW
DIWHUDEDQN¶VPHUJHUDQGDFTXLVLWLRQ0HGLDWHGE\SURFHGXUDOMXVWLFH,QWHUQDWLRQDO
-RXUQDORI%XVLQHVV 0DQDJHPHQW6FLHQFH  ±

$O$EGRXOL6$.6  .H\VHQLRUOHDGHUVKLSFKDUDFWHULVWLFVDQGWKHLULPSDFWRQ
OHDGHUVKLSHIIHFWLYHQHVV$FDVHVWXG\RIWKHPLQLVWU\RILQWHULRULQWKH8QLWHG$UDE
(PLUDWHVSROLFH 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG
7KHVHVGDWDEDVH 80,1R 

$OPHQGDUH]0  7HVWLQJPDWFKLQJDQGPLUURULQJZLWKKRPRSKLO\LQRQERDUGLQJ
OHDGHUVKLSVRFLDOL]DWLRQ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQV
DQG7KHVHVGDWDEDVH 80,1R 

$OPXWDLUL1  8QLYHUVDOODQJXDJH 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

$QWRQ\05  3DUDGLJPVKLIWLQHPSOR\HHHQJDJHPHQW²$FULWLFDODQDO\VLVRQWKH
GULYHUVRIHPSOR\HHHQJDJHPHQW,QWHUQDWLRQDO-RXUQDORI,QIRUPDWLRQ%XVLQHVVDQG
0DQDJHPHQW  ±

$UPRXU0'U  7KH0HUFHGHV0RGHORI&RPPXQLFDWLRQ>3')@7;

%DUPRUH+5  ([SORULQJHPSOR\HHHQJDJHPHQWVWUDWHJLHVIURPWKHHPSOR\HH
SHUVSHFWLYH$FDVHVWXG\ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQV
DQG7KHVHVGDWDEDVH 80,1R 

%DWHV6 :HLJKDUW6  ([HFXWLYHSUHVHQFH7KH;IDFWRULQHPSOR\HHHQJDJHPHQW
(PSOR\PHQW5HODWLRQV7RGD\ :LOH\   ±GRLHUW







%D\DW1  6XSSRUWLQJOHDGHUVKLSVXFFHVVLQDFRPSOH[JOREDOHFRQRP\%HVWSUDFWLFHVLQ


H[HFXWLYHFRDFKLQJ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG
7KHVHVGDWDEDVH 80,1R 
%HFNHU. %LVK$  0DQDJHPHQWGHYHORSPHQWH[SHULHQFHVDQGH[SHFWDWLRQV
,QIRUPDOYVIRUPDOOHDUQLQJ(GXFDWLRQDQG7UDLQLQJ  GRL(7


%HFNOHV$3  7KHUHODWLRQVKLSEHWZHHQHPRWLRQDOLQWHOOLJHQFHOHDGHUVKLSVW\OHDQG
OHDGHUHIIHFWLYHQHVV$TXDQWLWDWLYHFRUUHODWLRQVWXG\ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOH
IURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

%HOLDV' .RXVWHOLRV$  /HDGHUVKLSVW\OHMREVDWLVIDFWLRQDQGRUJDQL]DWLRQDOFXOWXUH
LQWKH*UHHNEDQNLQJRUJDQL]DWLRQ-RXUQDORI0DQDJHPHQW5HVHDUFK  ±

%HUNRZLW]9  &RPPRQFRXUWHV\+RZWKHQHZFRPPRQUXOHVWUHQJWKHQVKXPDQVXEMHFW
SURWHFWLRQ+RXVWRQ/DZ5HYLHZ  ±5HWULHYHGIRUP
KWWSVKRXVWRQODZUHYLHZRUJDUWLFOHFRPPRQFRXUWHV\KRZWKHQHZFRPPRQUXOH
VWUHQJWKHQVKXPDQVXEMHFWSURWHFWLRQV

%ODQNHQVKLS0  $QH[DPLQDWLRQRIDXQLYHUVLW\VXFFHVVFRDFKLQJSURJUDP 'RFWRUDO
GLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R
 

%RDN* &UDEEH6  ([SHULHQFHVWKDWGHYHORSOHDGHUVKLSFDSDELOLWLHV/HDGHUVKLSDQG
2UJDQL]DWLRQ'HYHORSPHQW-RXUQDO  ±GRL/2'-

%R\FH:6 0XQG\5$  3UDFWLFHRUOLSVHUYLFH([SORULQJFROODERUDWLRQ
SHUVSHFWLYHVLQSXUFKDVLQJ,03-RXUQDO  ±GRL,03


&DQJHPL-%XUFK% 0LOOHU'  -XGJLQJWKHH[HFXWLYHOHDGHUVKLSWHDP²$SURSRVDO
2UJDQL]DWLRQ'HYHORSPHQW-RXUQDO  ±

&HQNFL$7 g]oHOLN*  /HDGHUVKLSVW\OHVDQGVXERUGLQDWHZRUNHQJDJHPHQW7KH
PRGHUDWLQJLPSDFWRIOHDGHUJHQGHU*OREDO%XVLQHVVDQG0DQDJHPHQW5HVHDUFK  
±

&OD\SRRO..  2UJDQL]DWLRQDOVXFFHVV+RZWKHSUHVHQFHRIKDSSLQHVVLQWKH
ZRUNSODFHDIIHFWVHPSOR\HHHQJDJHPHQWWKDWOHDGVWRRUJDQL]DWLRQDOVXFFHVV 'RFWRUDO
GLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R
 

&RWHOQLF$ 7LPEDOLXF1  (PRWLRQDOLQWHOOLJHQFHDQGWKHLUUROHLQPDQDJHULDO
SURFHVV5HYLHZRI*HQHUDO0DQDJHPHQW  ±5HWULHYHGIURP
KWWSZZZPDQDJHPHQWJHQHUDOURSGISGI







&RXFK6  ,QWURGXFLQJ1/33V\FKRORJLFDOVNLOOVIRUXQGHUVWDQGLQJDQGLQIOXHQFLQJ


SHRSOH,QWHUQDWLRQDO&RDFKLQJ3V\FKRORJ\5HYLHZ  ±

&UHVZHOO-:  5HVHDUFKGHVLJQ4XDOLWDWLYHTXDQWLWDWLYHDQGPL[HGPHWKRGV
DSSURDFKHV WKHG 7KRXVDQG2DNV &DOLI 6$*(

&XDGUD3HUDOWD$9HORVR%HVLR&,ULEDUHQ- 3LQWR5  ,QWHUYHQWLRQIRU
VXSHUYLVRUVEDVHGRQVRFLDOVNLOOVDQGOHDGHUVKLSLQRUGHUWRLPSURYHRUJDQL]DWLRQDO
FOLPDWHSHUFHSWLRQDQGRUJDQL]DWLRQDOSHUIRUPDQFHRXWFRPHV-RXUQDORI2UJDQL]DWLRQDO
&KDQJH0DQDJHPHQW  ±GRL-2&0

'DYLV*  ([SORULQJWKHVWUDWHJLHVH[HFXWLYHOHDGHUVQHHGWRUHGXFHLQWHUJHQHUDWLRQDO
IULFWLRQLQDEXVLQHVVRUJDQL]DWLRQ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

'DYLV/  0DQDJHUV OHDGHUVKLSEHKDYLRUVHPSOR\HHV MREVDWLVIDFWLRQDQGWXUQRYHU
ZLWKLQWKHIHGHUDOJRYHUQPHQW 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

'HQVWHQ,  :KDWLVKDSSHQLQJMXVWEHORZWKH&(2"/HDGHUVKLSDQG2UJDQL]DWLRQ
'HYHORSPHQW-RXUQDO  ±GRL/2'-

GH5LMN/  0DUJLQDOLVHGIURPPDLQVWUHDPKHDOWKDQGVRFLDOFDUHVHUYLFHV$JURXQGHG
WKHRU\VWXG\RIWKHWKHUDS\UHODWLRQVKLSLQQRQWKHUDS\WUDLQHGZRUNHUVDQGYXOQHUDEOH
FOLHQWV 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHV
GDWDEDVH 80,1R 

GH5LMN/'HUNV/$&*ULPOH\% +ROODQGHU-  7KHHYLGHQFHIRU1/3
,QWHUQDWLRQDO&RDFKLQJ3V\FKRORJ\5HYLHZ  ±5HWULHYHGIURP
KWWSVZZZQOSWDWUHVSGI

'LHKO-$  6WDJHIULJKW$WRSLFDOJXLGHIRUVLQJHUVFRQFHUQLQJPXVLFSHUIRUPDQFH
DQ[LHW\OLWHUDWXUH 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG
7KHVHVGDWDEDVH 80,1R 

'XQN7  1/3%XVLQHVVDVDIRUHLJQODQJXDJH7UDLQLQJ-RXUQDO±

GX3OHVVLV0 %RVKRII$%  7KHUROHRISV\FKRORJLFDOFDSLWDOLQWKHUHODWLRQVKLS


EHWZHHQDXWKHQWLFOHDGHUVKLSDQGZRUNHQJDJHPHQW6RXWK$IULFDQ-RXUQDORI+XPDQ
5HVRXUFH0DQDJHPHQW  GRLVDMKUPYL

'\H'  (PSOR\HHHQJDJHPHQW$YRLGWKLVWUHPHQGRXVOHDGHUVKLSPLVWDNH3URIHVVLRQDO
6DIHW\  

(GPRQGVRQ$& 0F0DQXV6(  0HWKRGRORJLFDOILWLQPDQDJHPHQWILHOGUHVHDUFK
$FDGHP\RI0DQDJHPHQW5HYLHZ  GRLDPU







)UHQFK6  $FWLRQUHVHDUFKIRUSUDFWLFLQJPDQDJHUV7KH-RXUQDORI0DQDJHPHQW
'HYHORSPHQW  ±GRL
)XUGXHVFX%$  1HXUROLQJXLVWLFSURJUDPPLQJ+LVWRU\FRQFHSWLRQIXQGDPHQWDOVDQG
REMHFWLYHV9DODKLDQ-RXUQDORI(FRQRPLF6WXGLHV  ±GRLYMHV


*DQGROIL) 6WRQH6  /HDGHUVKLSOHDGHUVKLSVW\OHVDQGVHUYDQWOHDGHUVKLS-RXUQDO
RI0DQDJHPHQW5HVHDUFK  ±

*DQJDL.1 $JUDZDO6  5HODWLRQVKLSEHWZHHQSHUFHLYHGOHDGHUVKLSVW\OHDQG
HPSOR\HHHQJDJHPHQWLQVHUYLFHVHFWRU$QHPSLULFDOVWXG\-RXUQDORI2UJDQLVDWLRQDQG
+XPDQ%HKDYLRXU  ±

*DYLQ&6  7KHLPSDFWRIOHDGHUVKLSGHYHORSPHQWXVLQJFRDFKLQJ-RXUQDORI3UDFWLFDO
&RQVXOWLQJ  ±

*LOO0-*LOO'- 5RXOHW7-  &RQVWUXFWLQJWUXVWZRUWK\KLVWRULFDOQDUUDWLYHV
&ULWHULDSULQFLSOHVDQGWHFKQLTXHV%ULWLVK-RXUQDORI0DQDJHPHQW  ±GRL


*LOSLQ-DFNVRQ<)DONQHU&0LQ' %ORFN*ODVV-  $QLQQRYDWLYHDSSURDFKWR
HQJDJHPHQWLQDFRPSOH[QHWZRUN$KHDOWKFDUHFDVHVWXG\2'3UDFWLWLRQHU  ±
5HWULHYHGIURP
KWWSVVWDWLFVTXDUHVSDFHFRPVWDWLFFIHIHEFGEDWFEGFHFFG
GGIHERUJDQL]DWLRQGHYHORSPHQWUHYLHZVSULQJSGISDJH 

*ODWWKRUQ$$-R\QHU5/ 5RXVH:$  :ULWLQJWKHZLQQLQJWKHVLVRU
GLVVHUWDWLRQ$VWHSE\VWHSJXLGH7KRXVDQG2DNV&$&RUZLQ

*UDQW.2  /HDGHUVKLSVWUDWHJLHVDQGHPSOR\HHHQJDJHPHQW 'RFWRUDOGLVVHUWDWLRQ 
$YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

*UHHQ(  7KHLQIOXHQFHRIOHDGHUVKLSHQJDJHPHQWVWUDWHJLHVRQHPSOR\HHHQJDJHPHQW
'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH
80,1R 

*ULGHU-6/RIJUHQ5 :HLFNHO5  7KHLPSDFWRIDQH[HFXWLYHOHDGHUVKLS
GHYHORSPHQWSURJUDP3K\VLFLDQ/HDGHUVKLS-RXUQDO  ±5HWULHYHGIURP
KWWSHXURSRVLWLYHFKDQJHFRPZRUGSUHVVZSFRQWHQWXSORDGVWKHLPSDFWRIDQ
H[HFXWLYHOHDGHUVKLSGHYHORSPHQWSURJUDPSGI

*ULPOH\%  :KDWLV1HXUROLQJXLVWLF3URJUDPPLQJ 1/3 "7KHGHYHORSPHQWRID
JURXQGHGWKHRU\RI1/3ZLWKLQDQDFWLRQUHVHDUFKMRXUQH\,QWHUQDWLRQDO&RDFKLQJ
3V\FKRORJ\5HYLHZ  ±GRL5*







*ULPOH\%  7KHQHHGIRUQHXUROLQJXLVWLFSURJUDPPLQJWRGHYHORSJUHDWHUFRQVWUXFW


YDOLGLW\,QWHUQDWLRQDO&RDFKLQJ3V\FKRORJ\5HYLHZ  ±5HWULHYHGIURP
KWWSVZZZQHQOSFRPUHVRXUFHV,&35BFRQVWUXFWYDOLGLW\SGI

*XWHUPDQQ'/HKPDQQ:1%RHU'%RUQ0 9RHOSHO6&  +RZOHDGHUV
DIIHFWIROORZHUV¶ZRUNHQJDJHPHQWDQGSHUIRUPDQFH,QWHJUDWLQJOHDGHU²0HPEHU
H[FKDQJHDQGFURVVRYHUWKHRU\%ULWLVK-RXUQDORI0DQDJHPHQW  ±GRL


+DOH57  7RZDUGVDEHWWHUXQGHUVWDQGLQJRIHPSOR\HHHQJDJHPHQW)DFWRUVWKDW
H[SODLQHPSOR\HHHQJDJHPHQW 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

+DPDPRWR$.RED\DVKL1 6KLUDVDND6  (GXFDWLRQDOSURJUDPVDQGSUDFWLFDO
H[DPSOHVIRUFRQWULEXWLQJWRZRUNHQJDJHPHQW5HYLHZRI,QWHJUDWLYH%XVLQHVVDQG
(FRQRPLFV5HVHDUFK  ±5HWULHYHGIURP
KWWSVZZZUHVHDUFKJDWHQHWSURILOH1REX\XNLB.RED\DVKLSXEOLFDWLRQB(GX
FDWLRQDOB3URJUDPVBDQGB3UDFWLFDOB([DPSOHVBIRUB&RQWULEXWLQJBWRB:RUNB(QJDJHPHQWOL
QNVDGEGDIGFFHII(GXFDWLRQDO3URJUDPVDQG3UDFWLFDO([DPSOHVIRU
&RQWULEXWLQJWR:RUN(QJDJHPHQWSGI

+DPLOWRQ'  /HDGHUVKLSGHYHORSPHQW$EOXHSULQWIRUEXLOGLQJDFRDFKLQJFXOWXUH2'
3UDFWLWLRQHU  ±

+HUWOLQJ0'HQQLV0 %DUWOHWW5  7UDLQLQJ:KDWWKHWRSQRQSURILWVGR3K\VLFLDQ
/HDGHUVKLS-RXUQDO  ±

+ROW6+DOO$ *LOOH\$  (VVHQWLDOFRPSRQHQWVRIOHDGHUVKLSGHYHORSPHQW
SURJUDPV-RXUQDORI0DQDJHULDO,VVXHV  ±

+RWWHQVWHLQ.1  3URWHFWLQJWKHWHDFKLQJDQGOHDUQLQJHQYLURQPHQW$K\EULGPRGHOIRU
KXPDQVXEMHFWUHVHDUFKSXEOLFSROLF\LPSOHPHQWDWLRQ-RXUQDORI5HVHDUFK
$GPLQLVWUDWLRQ  ±5HWULHYHGIURP
KWWSVILOHVHULFHGJRYIXOOWH[W(-SGI

,PUDQ0 .KDWWDN65  7KHEXIIHULQJHIIHFWRIVXSHUYLVRUVXSSRUWRQWKH
UHODWLRQVKLSEHWZHHQZRUNHQJDJHPHQWDQGEHKDYLRUDORXWFRPHV-RXUQDORI0DQDJHULDO
6FLHQFHV  ±5HWULHYHGIURP
KWWSVZZZTXUWXEDHGXSNMPVGHIDXOWBILOHV-06B5HKPDQSGI

,RQHVFX9& %ROFDV&  /HDGHUVKLSDQGRUJDQL]DWLRQDOGHYHORSPHQW5HYLHZRI
,QWHUQDWLRQDO&RPSDUDWLYH0DQDJHPHQW5HYLVWDGH0DQDJHPHQW&RPSDUDW
,QWHUQDWLRQDO  ±GRL50&,

-DPDQ6+  5HWDLOEXVLQHVVOHDGHUV¶VWUDWHJLHVWRLQFUHDVHHPSOR\HHHQJDJHPHQWDQG
ZRUNIRUFHSURGXFWLYLW\ 2UGHU1R $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQV 






7KHVHV*OREDO  5HWULHYHGIURP


KWWSVSUR[\FHF\EUDU\FRPORJLQ"XUO KWWSVZZZSURTXHVW
FRPSUR[\FHF\EUDU\FRPGRFYLHZ"DFFRXQWLG 

-LDQJ+ /XR<  &UDIWLQJHPSOR\HHWUXVW)URPDXWKHQWLFLW\WUDQVSDUHQF\WR
HQJDJHPHQW-RXUQDORI&RPPXQLFDWLRQ0DQDJHPHQW  ±
GRL-&20

-RKQVRQ'  $TXDOLWDWLYHDQDO\VLVRIWKHGULYHUVRIHPSOR\HHGLVHQJDJHPHQWDFURVVIRXU
JHQHUDWLRQVRI86HPSOR\HHV 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

-RQHV5/  7KHUHODWLRQVKLSRIHPSOR\HHHQJDJHPHQWDQGHPSOR\HHMREVDWLVIDFWLRQWR
RUJDQL]DWLRQDOFRPPLWPHQW 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

.DPS'  7DSSLQJ\RXURZQH[FHOOHQFHXVLQJ1/3([HFXWLYH'HYHORSPHQW  
GRL

.HUQV&'  ,PSDFWLQJZHOOEHLQJDWZRUN$NH\PDQDJHULDOOHDGHUDFWLRQUROH-RXUQDO
RI0DQDJHPHQW3ROLF\ 3UDFWLFH  ±GRLMPSSYL

.KDODQGL& =RJKL5  7KHHIIHFWRI1/3 DFFHOHUDWHGOHDUQLQJ RQ,UDQLDQ()/
OHDUQHU VOLVWHQLQJFRPSUHKHQVLRQ7KHRU\DQG3UDFWLFHLQ/DQJXDJH6WXGLHV  GRL
WSOV

.KRUHYD9  /HDGHUVKLSGHYHORSPHQWSUDFWLFHVDVGULYHUVRIHPSOR\HHDWWLWXGHV-RXUQDO
RI0DQDJHULDO3V\FKRORJ\  GRL-03

.LP.=KDQJ::DQJ6 =KX<  7KHPRGHUDWLQJHIIHFWRIHPRWLRQDO
LQWHOOLJHQFHRQWKHSHUIRUPDQFHRIWRSPDQDJHPHQWWHDP,QWHUQDWLRQDO-RXUQDORI
%XVLQHVV 3XEOLF$GPLQLVWUDWLRQ  ±

.LQGVLNR( 3ROWLPlH+  7KHSRRUDQGHPEDUUDVVLQJFRXVLQWRWKHJHQWULILHG
TXDQWLWDWLYHDFDGHPLFV:KDWGHWHUPLQHVWKHVDPSOHVL]HLQTXDOLWDWLYHLQWHUYLHZEDVHG
RUJDQL]DWLRQVWXGLHV")RUXP4XDOLWDWLYH6RFLDO5HVHDUFK  ±GRL
ITV

.QLJKW&3DWWHUVRQ0 'DZVRQ-  %XLOGLQJZRUNHQJDJHPHQW$V\VWHPDWLFUHYLHZ
DQGPHWDDQDO\VLVLQYHVWLJDWLQJWKHHIIHFWLYHQHVVRIZRUNHQJDJHPHQWLQWHUYHQWLRQV
-RXUQDORI2UJDQL]DWLRQDO%HKDYLRU  ±GRLMRE

.RHVWHUV6&6KHD7 6DWLDQL%  ,W¶VDERXWWKHSHRSOHQRWEHLQJWKH
ERVV3K\VLFLDQ/HDGHUVKLS-RXUQDO  ±







.RWHUD<6KHIILHOG' 9DQ*RUGRQ:  7KHDSSOLFDWLRQVRIQHXURǦOLQJXLVWLF


SURJUDPPLQJLQRUJDQL]DWLRQDOVHWWLQJV$V\VWHPDWLFUHYLHZRISV\FKRORJLFDO
RXWFRPHV+XPDQ5HVRXUFH'HYHORSPHQW4XDUWHUO\  GRLKUGT

.UDJW' *XHQWHU+  :K\DQGZKHQOHDGHUVKLSWUDLQLQJSUHGLFWVHIIHFWLYHQHVV7KH
UROHRIOHDGHULGHQWLW\DQGOHDGHUVKLSH[SHULHQFH/HDGHUVKLS 2UJDQL]DWLRQ
'HYHORSPHQW-RXUQDO  GRL/2'-

/DG\VKHZVN\5. 7DSOLQ5  7KHLQWHUSOD\EHWZHHQRUJDQL]DWLRQDOOHDUQLQJFXOWXUH
WKHPDQDJHUDVFRDFKVHOIHIILFDF\DQGZRUNORDGRQHPSOR\HHZRUN
HQJDJHPHQW,QWHUQDWLRQDO-RXUQDORI(YLGHQFH%DVHG&RDFKLQJ 0HQWRULQJ  ±
GRL

/DSRVL(2'DQ6 )LOLS'  (IIHFWLYHFRPPXQLFDWLRQ5HYLHZRI0DQDJHPHQWDQG
(FRQRPLF(QJLQHHULQJ  ±

/DUVVRQ-  +HDOWK\DQGHIIHFWLYHOHDGHUVKLSEHKDYLRUWKURXJKDOHDGHUVKLSGHYHORSPHQW
SURJUDP7RWDO4XDOLW\0DQDJHPHQW %XVLQHVV([FHOOHQFH  ±GRL


/DZUHQFH- 7DU8  7KHXVHRIJURXQGHGWKHRU\WHFKQLTXHDVDSUDFWLFDOWRROIRU
TXDOLWDWLYHGDWDFROOHFWLRQDQGDQDO\VLV(OHFWURQLF-RXUQDORI%XVLQHVV5HVHDUFK
0HWKRGV  ±

/HHGV-5RDFK.%XUWQLFN6 0RRG\+  'HYHORSPHQWDQGYDOLGDWLRQRIDQ
H[HFXWLYHWUDLQLQJDQGGHYHORSPHQWW\SHWD[RQRP\-RXUQDORI:RUNSODFH/HDUQLQJ
  GRL-:/

/HHG\3' 2UPURG-(  3UDFWLFDOUHVHDUFK3ODQQLQJDQGGHVLJQ%RVWRQ3HDUVRQ

/HY\'/LYLQJRRG5 0DUDQJD.  3HUVSHFWLYHVRITXDOLWDWLYHUHVHDUFKPHWKRGV
VWHG 6FKDXPEXUJ,/:RUGVRI:LVGRP//&

/L<  7KHLPSDFWRIOHDGHUVKLSEHKDYLRURQHPSOR\HHHQJDJHPHQW 'RFWRUDO
GLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R
 

/LOOLV$0  $IUDPHZRUNIRUWKHDQDO\VLVRILQWHUYLHZGDWDIURPPXOWLSOHILHOGUHVHDUFK
VLWHV$FFRXQWLQJ )LQDQFH  GRL[

0DOLN6  7KHUHODWLRQVKLSRIVSLULWXDODQGHPRWLRQDOLQWHOOLJHQFHHPSOR\HHHQJDJHPHQW
DQGHPSOR\HHEXUQRXW GRFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG
7KHVHVGDWDEDVH 80,1R 







0LOKHP00XGD+ .KDOLO$  7KHHIIHFWRISHUFHLYHGWUDQVIRUPDWLRQDOOHDGHUVKLS


VW\OHRQHPSOR\HHHQJDJHPHQW7KHPHGLDWLQJHIIHFWRIOHDGHU¶VHPRWLRQDO
LQWHOOLJHQFH)RXQGDWLRQVRI0DQDJHPHQW  ±GRLIPDQ

0RUHQR1  (PSOR\HHSHUFHSWLRQVRIWUDQVIRUPDWLRQDOOHDGHUVKLSRQHPSOR\HH
HQJDJHPHQW 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHV
GDWDEDVH 80,1R 

1DKDU$  5ROHRIQHXUROLQJXLVWLFSURJUDPPLQJ 1/3 LQWUDLQLQJDQGGHYHORSPHQWRI
HPSOR\HHV*OREDO-RXUQDORI(QWHUSULVH,QIRUPDWLRQ6\VWHP  ±GRL
JMHLV

1XJURKR5(  $QDO\VLVRIWDOHQWPDQDJHPHQWHPSOR\HHHQJDJHPHQWDQG
OHDGHUVKLS,QWHUQDWLRQDO-RXUQDORI(FRQRPLF3HUVSHFWLYHV  ±

1XQDQ' <HQLFLRJOX%  ,QIRUPHGXQLQIRUPHGDQGSDUWLFLSDWLYHFRQVHQWLQVRFLDO
PHGLDUHVHDUFK,QWHUQDWLRQDO-RXUQDORI0DUNHW5HVHDUFK  ±GRL
,-05

2VREDMR2$ 0RRUH'  0HWKRGRORJLFDOFKRLFHVLQUHODWLRQVKLSTXDOLW\ 54 
5HVHDUFKWR$V\VWHPDWLFOLWHUDWXUHUHYLHZ-RXUQDORI5HODWLRQVKLS
0DUNHWLQJ  ±GRL

3DUU$'/DQ]D67 %HUQWKDO3  3HUVRQDOLW\SURILOHVRIHIIHFWLYHOHDGHUVKLS
SHUIRUPDQFHLQDVVHVVPHQWFHQWHUV+XPDQ3HUIRUPDQFH  ±GRL


3DVVPRUH- 5RZVRQ7  1HXUROLQJXLVWLFSURJUDPPLQJ$UHYLHZRIQOSUHVHDUFKDQG
WKHDSSOLFDWLRQRI1/3LQFRDFKLQJ,QWHUQDWLRQDO&RDFKLQJ3V\FKRORJ\5HYLHZ  
±5HWULHYHGIURPKWWSVZZZSHUVRQDOJURZWKFKDQQHOFRPZS
FRQWHQWXSORDGV,&35B1/3BFRDFKLQJBUHYLHZSGI

5DYLQGUDQDWK6  6RIWVNLOOVLQSURMHFWPDQDJHPHQW$UHYLHZ,83-RXUQDORI6RIW
6NLOOV  ±

5D\7  7KHFRQQHFWLRQEHWZHHQOHDGHUVKLSWUDLQLQJDQGHPSOR\HHHQJDJHPHQW$
TXDOLWDWLYHFDVHVWXG\ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG
7KHVHVGDWDEDVH 80,1R 

5D]D0 1DGHHP6  'ULYHUVRIHPSOR\HHHQJDJHPHQWDQGWKHLULPSDFWRQMRE
VDWLVIDFWLRQDQGWXUQRYHULQWHQWLRQV-RXUQDORI0DQDJHULDO6FLHQFHV  ±
5HWULHYHGIURP
KWWSVZZZTXUWXEDHGXSNMPVGHIDXOWBILOHV-06B-06-06
;,,6DGLD1DGHHP1%($&SGI







5HHG6%  )LYHNH\DWWULEXWHVRIOHDGHUVKLS+)0$ +HDOWKFDUH)LQDQFLDO0DQDJHPHQW


$VVRFLDWLRQ ±5HWULHYHGIURPKWWSVZZZKIPDRUJWRSLFVDUWLFOHKWPO

5HLV-$PRULP0 0HOmR1  *XLGHOLQHVIRUTXDOLWDWLYHFDVHUHVHDUFKLQRSHUDWLRQV
PDQDJHPHQW$EDQNLQJVHUYLFHLQGXVWU\SHUVSHFWLYH.LGPRUH(QG$FDGHPLF
&RQIHUHQFHV,QWHUQDWLRQDO/LPLWHG

5RJR]LĔVND(  1HXUROLQJXLVWLFSURJUDPPLQJIRUWHDFKLQJDQGOHDUQLQJ7KH-RXUQDORI
/LQJXLVWLFDQG,QWHUFXOWXUDO(GXFDWLRQ±

5RVV*UDQW/  ([SORULQJWKHUHODWLRQVKLSVEHWZHHQOHDGHUVKLSVW\OHVDQGMREVDWLVIDFWLRQ
DPRQJHPSOR\HHVRIQRQSURILWRUJDQL]DWLRQV 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP
3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

5XL]&(+DPOLQ5* &DULRQL$  %HKDYLRUDOGHWHUPLQDQWVRISHUFHLYHG
PDQDJHULDODQGOHDGHUVKLSHIIHFWLYHQHVVLQ$UJHQWLQD+XPDQ5HVRXUFH'HYHORSPHQW
,QWHUQDWLRQDO  ±GRL

6DDG=06XGLQ6 6KDPVXGGLQ1  7KHLQIOXHQFHRIOHDGHUVKLSVW\OHSHUVRQDOLW\
DWWULEXWHVDQGHPSOR\HHFRPPXQLFDWLRQRQHPSOR\HHHQJDJHPHQW*OREDO%XVLQHVVDQG
0DQDJHPHQW5HVHDUFK  

6DGOHU7'*LEVRQ6 5H\VHQ6  7KHHIIHFWRIDOHDGHUVKLSWUDLQLQJSURJUDPRQ
FRQVLGHUDWLRQRIIXWXUHFRQVHTXHQFHV-RXUQDORI/HDGHUVKLS6WXGLHV  ±GRL
MOV

6DKX63DWKDUGLNDU$ .XPDU$  7UDQVIRUPDWLRQDOOHDGHUVKLSDQGWXUQRYHU
0HGLDWLQJHIIHFWVRIHPSOR\HHHQJDJHPHQWHPSOR\HUEUDQGLQJDQGSV\FKRORJLFDO
DWWDFKPHQW/HDGHUVKLS 2UJDQL]DWLRQ'HYHORSPHQW-RXUQDO  ±GRL
/2'-

6FKQHLGHU% %ODQNHQVKLS0+  (PSOR\HHHQJDJHPHQW:KDWZHNQRZDQGKRZWR
SURILWIURPGRLQJLW(PSOR\PHQW5HODWLRQV7RGD\  ±GRLHUW

6FURJJLQV7  -REVDWLVIDFWLRQDQGHPRWLRQDOLQWHOOLJHQFHLQWKHFOLQLFDOODERUDWRU\$
TXDQWLWDWLYHTXDVLH[SHULPHQWDOVWXG\ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW
'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R 

6HLGOH%)HUQDQGH]6 3HUU\-/  'ROHDGHUVKLSWUDLQLQJDQGGHYHORSPHQWPDNHD
GLIIHUHQFHLQWKHSXEOLFVHFWRU"$SDQHOVWXG\3XEOLF$GPLQLVWUDWLRQ5HYLHZ  ±
GRLSXDU

6KDZ(  $JXLGHWRWKHTXDOLWDWLYHUHVHDUFKSURFHVV(YLGHQFHIURPDVPDOOILUPVWXG\
4XDOLWDWLYH0DUNHW5HVHDUFK  ±GRL







6KHQR\9 8FKLO5  ,QIOXHQFHRIFXOWXUDOHQYLURQPHQWIDFWRUVLQFUHDWLQJHPSOR\HH


H[SHULHQFHDQGLWVLPSDFWRQHPSOR\HHHQJDJHPHQW$QHPSOR\HHSHUVSHFWLYH
,QWHUQDWLRQDO-RXUQDORI%XVLQHVV,QVLJKWV 7UDQVIRUPDWLRQ  ±

6KURWU\LD9. 'KDQGD8  0HDVXULQJHPSOR\HHHQJDJHPHQW3HUVSHFWLYHVIURP
OLWHUDWXUH,83-RXUQDORI2UJDQL]DWLRQDO%HKDYLRU  ±

6LPRQV-  1/3FRDFKLQJ$QHYLGHQFHEDVHGDSSURDFKIRUSUDFWLWLRQHUVOHDGHUVDQG
LQGLYLGXDOV,QWHUQDWLRQDO&RDFKLQJ3V\FKRORJ\5HYLHZ  ±

6LQJK6  ,PSDFWDQGHIIHFWLYHQHVVRIFRUSRUDWHWUDLQLQJSURJUDPVWKURXJKLQGXVWU\
DFDGHPLDWLHXSV-RXUQDORI&RPPHUFH 0DQDJHPHQW7KRXJKW  ±GRL
;

6PLWK'/  *HWWLQJRXWRIDXWRSLORW0LQGIXOQHVVEUHDWKDQGGHSWK 'RFWRUDO
GLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R
 

6SLURLX)  7KHLPSDFWRIEHOLHIVFRQFHUQLQJGHFHSWLRQRQSHUFHSWLRQVRIQRQYHUEDO
EHKDYLRU,PSOLFDWLRQVIRUQHXUROLQJXLVWLFSURJUDPPLQJEDVHGOLHGHWHFWLRQ-RXUQDORI
3ROLFHDQG&ULPLQDO3V\FKRORJ\  ±GRLV

6WR\DQRYD7 ,OLHY,  (PSOR\HHHQJDJHPHQWIDFWRUIRURUJDQL]DWLRQDOH[FHOOHQFH
,QWHUQDWLRQDO-RXUQDORI%XVLQHVV (FRQRPLF6FLHQFHV$SSOLHG5HVHDUFK  ±

6WUDQJHU0&KDOPHUV' 1LFRO'  &DSLWDOWUXVWDQGFRQVXOWDWLRQ'DWDEDQNVDQG
UHJXODWLRQLQ$XVWUDOLD&ULWLFDO3XEOLF+HDOWK  ±GRL


6XFLX*5  1/3²2ULJLQVFRQFHSWVDQGFRQWURYHUVLHV7DPDUD-RXUQDOIRU&ULWLFDO
2UJDQL]DWLRQ,QTXLU\  ±

7HVFK5  4XDOLWDWLYHUHVHDUFK$QDO\VLVW\SHVDQGVRIWZDUHWRROV1HZ<RUN)DOPHU

7KDNXU'6KUL& 9LM$.  1&5,QGLDYDNLQJXSDQGUDJRJLFDO
UHFRPPHQGDWLRQV-RXUQDORI&RQWHPSRUDU\5HVHDUFKLQ0DQDJHPHQW  ±

7RVH\3 0DWKLVRQ-  ([SORULQJLQQHUODQGVFDSHVWKURXJKSV\FKRSKHQRPHQRORJ\
7KHFRQWULEXWLRQRIQHXUROLQJXLVWLFSURJUDPPLQJWRLQQRYDWLRQVLQUHVHDUFKLQJILUVW
SHUVRQH[SHULHQFH4XDOLWDWLYH5HVHDUFKLQ2UJDQL]DWLRQVDQG0DQDJHPHQW  ±
'RL

7XUQHU-5 %DNHU5  3HGDJRJ\OHDGHUVKLSDQGOHDGHUVKLSGHYHORSPHQW
3HUIRUPDQFH,PSURYHPHQW  ±GRLSIL







9HQNDWHVK56 .DQH5$  +RZWREHDZLQQHULQWKHJDPHRIOLIHDQGEHKDSS\


WKURXJK1/3 QHXUROLQJXLVWLFSURJUDPPLQJ 3DLQWLQGLD  ±

9LU]L.  $QH[DPLQDWLRQRIJOREDOOHDGHUVKLSGHYHORSPHQWVWUDWHJLHVIRUPXOWLQDWLRQDO
FRUSRUDWLRQV-RXUQDORI(FRQRPLF'HYHORSPHQW0DQDJHPHQW,7)LQDQFH 
0DUNHWLQJ  ±5HWULHYHGIURPKWWSVJVPLLMJEFRPZS
FRQWHQWXSORDGV-('0,7)0913.DWKU\Q9LU]L*OREDO/HDGHUVKLS
'HYHORSPHQWSGI

:DNH/  1HXUROLQJXLVWLFSURJUDPPLQJ'RHVLWKDYHDUROHLQVXSSRUWLQJOHDUQLQJRURG
LQWHUYHQWLRQV"'HYHORSPHQWDQG/HDUQLQJLQ2UJDQL]DWLRQV  ±GRL


:DQJ=/L& /L;  5HVLOLHQFHOHDGHUVKLSDQGZRUNHQJDJHPHQW7KHPHGLDWLQJ
UROHRISRVLWLYHDIIHFW6RFLDO,QGLFDWRUV5HVHDUFK  ±GRL
V

:DVKLQJWRQ-'  7KHFRUUHODWLRQEHWZHHQHPRWLRQDOLQWHOOLJHQFHDQGHPSOR\HH
HQJDJHPHQWZLWKLQWKHKXPDQVHUYLFHVLQGXVWU\ 'RFWRUDOGLVVHUWDWLRQ $YDLODEOHIURP
3UR4XHVW'LVVHUWDWLRQV 7KHVHV*OREDO 80,1R 

:DWVRQ.  0LQGJDPHV7UDLQLQJ &RDFKLQJ7RGD\±

:LJJLQV/ 6PDOOZRRG-  $Q2'DSSURDFKWROHDGHUVKLSGHYHORSPHQW4XHVWLRQV
DQGFRQVHTXHQFHV-RXUQDORI0DQDJHPHQW'HYHORSPHQW  ±GRL
-0'

:RUNPDQ--  (IIHFWRIOHDGHUVKLSVW\OHDQGHPSOR\HHGHPRJUDSKLFVRQHPSOR\HH
GLVHQJDJHPHQWDQGHPSOR\HHEXUQRXWLQDPLG$WODQWLFRUJDQL]DWLRQ 'RFWRUDO
GLVVHUWDWLRQ $YDLODEOHIURP3UR4XHVW'LVVHUWDWLRQVDQG7KHVHVGDWDEDVH 80,1R
 

;L0=KDR6 ;X4  7KHLQIOXHQFHRI&(2UHODWLRQVKLSIRFXVHGEHKDYLRUVRQILUP
SHUIRUPDQFH$FKDLQPHGLDWLQJUROHRIHPSOR\HHUHODWLRQVFOLPDWHDQGHPSOR\HHV 
DWWLWXGHV$3-0$3-0$VLD3DFLILF-RXUQDORI0DQDJHPHQW  ±GRL
V

<HDGRQ/HH$  5HIOHFWLYHYLFDULRXVOHDUQLQJ 59/ DVDQHQKDQFHPHQWIRUDFWLRQ
OHDUQLQJ7KH-RXUQDORI0DQDJHPHQW'HYHORSPHQW  ±GRL-0'


<HPP*  &DQ1/3KHOSRUKDUP\RXUEXVLQHVV",QGXVWULDODQG&RPPHUFLDO7UDLQLQJ
  ±GRL

=DKDULD'(  7KHHIIHFWLYHOHDGHU¶VTXDOLWLHV9DODKLDQ-RXUQDORI(FRQRPLF6WXGLHV
  ±







=XQHG$0$  (IIHFWLYHEXVLQHVVOHDGHUVKLSVW\OHV$FDVHVWXG\RI%DUULHW
*UHHQ0LGGOH(DVW-RXUQDORI%XVLQHVV  ±GRLPHME



 






$SSHQGL[$,QIRUPHG&RQVHQW





7LWOHRI6WXG\4XDOLWDWLYH$QDO\VLVRI1HXUR/LQJXLVWLF3URJUDPPLQJ&RQFHSWV/HDGHUV0LJKW
$SSO\WR,PSURYH(PSOR\HH(QJDJHPHQW

3ULQFLSDO,QYHVWLJDWRU1DPH6DUDK/DQH
&78(PDLO$GGUHVV
&RQWDFW3KRQH1XPEHU

3XUSRVHRIWKH6WXG\

<RXDUHLQYLWHGWRSDUWLFLSDWHLQDYLUWXDOUHVHDUFKVWXG\7KHSXUSRVHRIWKLVVWXG\LVWRGLVFRYHU
WKH1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 LGHDVOHDGHUVPLJKWDSSO\WRLPSURYHWKHKDSSLQHVVRI
HPSOR\HHV7KHLQIRUPDWLRQFRYHUVOHDGHUVXQGHUVWDQGLQJKRZWRFRPPXQLFDWHPRUHHIIHFWLYHO\
ZLWKHPSOR\HHV7KHLQIRUPDWLRQZLOOKHOSWREHWWHUXQGHUVWDQGKRZRUJDQL]DWLRQVFDQRSHUDWH
PRUHHIILFLHQWO\7KLVLVDGLVVHUWDWLRQVWXG\

,QFOXVLRQ&ULWHULD

<RXDUHLQYLWHGWRSDUWLFLSDWHLQWKHVWXG\EHFDXVH\RXPHHWWKHIROORZLQJLQFOXVLRQFULWHULD
ƒ <RXDUHDFHUWLILHG1/3SUDFWLWLRQHU
ƒ <RXDUHORFDWHGLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV
ƒ <RXULQVLJKWVZLOOKHOSOHDUQKRZ1/3FDQEHXVHG
ƒ <RXKDYHSUDFWLFHRQWKHXVHRI1/3LQEXVLQHVV

7KLVLQIRUPHGFRQVHQWIRUPPD\KHOS\RXGHWHUPLQHZKHWKHURUQRW\RXGHVLUHWRSDUWLFLSDWHLQ
WKLVVWXG\

6WXG\$FWLYLWLHVDQG'XUDWLRQ

,I\RXYROXQWHHUWRSDUWLFLSDWHLQWKLVVWXG\\RXZLOOEHDVNHGWRGRWKHIROORZLQJ

ƒ <RXZLOOQHHGWRVLJQWKHLQIRUPHGFRQVHQWIRUP
ƒ 6HWDVLGHWLPHIRUDQLQWHUYLHZGXULQJDOLPLWHGZLQGRZ
ƒ <RXZLOOQHHGWRFRPSOHWHDQLQWHUYLHZ
ƒ <RXZLOOQHHGWREHDYDLODEOHIRUDIROORZXSDVQHHGHG
ƒ 7KHVWXG\ZLOOWDNHDSSUR[LPDWHO\PLQXWHVRILQWHUYLHZWLPH
ƒ 6RPHPD\EHDVNHGWRUHYLHZWKHILQGLQJVIRUDFFXUDF\

%HQHILWVWR<RXRU2WKHUV







7KHUHLVOLNHO\QRGLUHFWEHQHILWWR\RXIRUVWXG\SDUWLFLSDWLRQ+RZHYHUWKHRYHUDOOEHQHILWVRI
WKHVWXG\PD\LQFOXGHKHOSLQJEXVLQHVVHVOHDUQPRUHDERXWWKHXVHRI1/3%XVLQHVVHVFDQOHDUQ
DERXWWRROVWKH\PD\QRWKDYHWKRXJKWRIWRKHOSWKHPEHVXFFHVVIXO<RXZLOOPDNHD
FRQWULEXWLRQWRWKHNQRZQLQIRUPDWLRQRQWKHWRSLF

5LVNVRU'LVFRPIRUW

7KHUHLVVRPHOHYHORIULVNRUGLVFRPIRUWLQYROYHGLQDOOUHVHDUFKVWXGLHV7KLVVWXG\LVHVWLPDWHG
WRLQYROYHQRPRUHWKDQPLQLPDOULVN7KHUHVHDUFKHUKDVWDNHQVWHSVWRUHGXFHDQ\SRVVLEOHULVN
7KHULVNRIWKLVVWXG\ZRXOGEHSRVVLEO\IHHOLQJXQFRPIRUWDEOHZKHQDQVZHULQJTXHVWLRQV

,QFHQWLYHVWR3DUWLFLSDWLRQ

7KLVZLOOEHQRILQDQFLDOFRVWWR\RXWRSDUWLFLSDWHLQWKLVVWXG\7KHUHDUHQRLQFHQWLYHVWRMRLQ
WKLVVWXG\<RXZLOOQRWUHFHLYHDQ\PRQH\RUJLIWV1RFUHGLWDVDUHIHUHQFHFDQEHJLYHQVLQFH
QDPHVRULGHQWLI\LQJLQIRUPDWLRQDUHQRWSURYLGHGLQWKHUHVXOWV

9ROXQWDU\3DUWLFLSDWLRQ

<RXUSDUWLFLSDWLRQLQWKLVVWXG\LVVWULFWO\YROXQWDU\<RXPD\FKRRVHQRWWRSDUWLFLSDWHLQWKLV
VWXG\DQGPD\ZLWKGUDZDWDQ\WLPHRUVXVSHQGUHVSRQVHVDWDQ\WLPHZLWKRXWSHQDOW\RU
FRQVHTXHQFH<RXDUHDOVRHQFRXUDJHGWRDVNTXHVWLRQVDERXWWKLVVWXG\DWWKHDQ\WLPH

3ULYDF\DQG&RQILGHQWLDOLW\

7KHLQWHUYLHZZLOOEHUHFRUGHGDQGFRSLHGLQWRWH[W7KHQDPHVRISDUWLFLSDQWVZLOOQRWEH
SURYLGHG7KLVLQFOXGHVLQWKHVWXG\GHVLJQDQGSXEOLVKHGUHVXOWV3HQQDPHVZLOONHHSLGHQWLWLHV
DQRQ\PRXV1RLGHQWLI\LQJGDWDZLOOEHLQFOXGHGLQWKHVWXG\RUUHOHDVHG$OOLQIRUPDWLRQZLOOEH
NHSWLQSDVVZRUGSURWHFWHGILOHV$OOILOHVZLOOEHGHVWUR\HGDIWHUVHYHQ\HDUV

,I\RXKDYHDQ\TXHVWLRQVRUFRQFHUQVDERXWWKHVWXG\\RXPD\FRQWDFWWKH3ULQFLSDO,QYHVWLJDWRU
QRWHGDERYH<RXPD\DOVRFRQWDFWWKH5HVHDUFK6XSHUYLVRU'U5REHUW)LQNHOPHLHU)RU
DGGLWLRQDOTXHVWLRQV\RXPD\FRQWDFWWKH&78,5%DW&78,5%#FRORUDGRWHFKHGXRUYLVLW,5%
UHVRXUFHVDWKWWSVFDUHHUHGOLEJXLGHVFRPFWXGRFWRUDOBVWXGHQWVLUE

3DUWLFLSDQW&RQVHQW

,KDYHUHDGWKHDERYHLQIRUPDWLRQDQGDJUHHWRSDUWLFLSDWHLQWKLVVWXG\0\VLJQDWXUHEHORZ
FHUWLILHV,DPDWOHDVW\HDUVRIDJHDQGDJUHHWRVWXG\SDUWLFLSDWLRQ$FRS\RIWKLVIRUPKDV
EHHQJLYHQWRPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBB

6LJQDWXUHRI3DUWLFLSDQW    'DWH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

3DUWLFLSDQW1DPH 3OHDVH3ULQW  






$SSHQGL[%,QWHUYLHZ4XHVWLRQV

7KHIROORZLQJDUHWKHLQWHUYLHZUHVHDUFKTXHVWLRQV

 +RZFDQ1/3FRQFHSWVEHXVHGDVDOHDGHUVKLSWUDLQLQJWRROIRUOHDGHUVORRNLQJWRLPSURYH
HPSOR\HHHQJDJHPHQW"
 +RZFDQOHDGHUVXVLQJ1/3WRVWULYHIRUH[FHOOHQFHLPSDFWWKHHQJDJHPHQWRIDQ
RUJDQL]DWLRQ"
 +RZLVHIIHFWLYHQHVVRI1/3LPSDFWHGE\OHDGHUVKLSVW\OH"
 +RZGR\RXWKLQNOHDGHUVFDQVKDSHHPSOR\HHEHKDYLRUVDQGSHUVSHFWLYHVXVLQJ1/3"
 +RZFDQVKLIWLQJHPSOR\HHWKLQNLQJWRWKH³FDXVH´SHUVSHFWLYHLPSDFWHPSOR\HH
HQJDJHPHQW"
 +RZFDQFKDQJLQJWKHEHOLHIV\VWHPVRIOHDGHUVKHOSDFKLHYHRUJDQL]DWLRQDOHQJDJHPHQW
JRDOV"
 +RZFDQSUDFWLFLQJWKHILYHSULQFLSOHVIRUVXFFHVVKHOSOHDGHUVDFKLHYHRUJDQL]DWLRQ
HQJDJHPHQWJRDOV"
 +RZFDQ1/3DVDZKROHV\VWHPVDSSURDFKWRFKDQJHSURGXFHIDVWHUUHVXOWVWKDQDQ
RUJDQL]DWLRQQRWXVLQJ1/3LQWKHOHDGHUVKLSWUDLQLQJRIOHDGHUV"
 +RZGR\RXWKLQNWKH³GRZLWK´SURFHVVZLOOOLPLWLIDWDOOOHDGHULQIOXHQFHRQHPSOR\HHV
WKDWDUHQRWGLUHFWO\UHSRUWLQJWRWKHP"
:KDWFKDOOHQJHVGR\RXVHHDULVLQJIURPOHDGHUVXVLQJ1/3WRLPSURYHHPSOR\HH
HQJDJHPHQW"
:KDWH[SHULHQFHVKDYH\RXKDGZKHUH1/3ZDVXVHGE\OHDGHUVKLSDQGZKDWZDVWKH
RXWFRPH"
'R\RXWKLQNWKHUHLVDGLIIHUHQFHLQWKHDSSOLFDWLRQRI1/3DVDOHDGHUVKLSWUDLQLQJWRRO
EHWZHHQQRQH[HFXWLYHPDQDJHPHQWDQGH[HFXWLYHPDQDJHPHQW"
%DVHGRQ\RXUNQRZOHGJHDQGH[SHULHQFHZRXOG\RXUHFRPPHQGRUJDQL]DWLRQVXVH1/3"
$UHWKHUHDQ\DGGLWLRQDOFRPPHQWV\RXZRXOGOLNHWRDGGUHJDUGLQJ1/3RU1/3LQUHODWLRQ
WRXVHE\OHDGHUVKLSRUIRUWKHSXUSRVHRILPSURYLQJHPSOR\HHHQJDJHPHQW"


 






$SSHQGL[&,QWHUYLHZ3URWRFRO

,QWHUYLHZVRI1/33UDFWLWLRQHUV

'DWH3DUWLFLSDQW3

2SHQLQJ6WDWHPHQW

0\QDPHLV6DUDK/DQHDQG,DPFRQGXFWLQJDYLUWXDOVWXG\IRUP\GLVVHUWDWLRQWRFRPSOHWHD
'RFWRURI0DQDJHPHQWZLWKDQ([HFXWLYH/HDGHUVKLSIRFXVIURP&RORUDGR7HFKQLFDO8QLYHUVLW\
7KHFHQWUDOUHVHDUFKTXHVWLRQRIWKHVWXG\LV³%DVHGRQWKHH[SHUWNQRZOHGJHRI1HXUR
/LQJXLVWLF3URJUDPPLQJSUDFWLWLRQHUVZKDWDUHWKH1/3FRQFHSWVWKDWFDQKHOSOHDGHUVLPSURYH
HPSOR\HHHQJDJHPHQW´,DPIRFXVLQJP\VWXG\WR1/3SUDFWLWLRQHUVLQWKH6RXWKZHVWHUQ8QLWHG
6WDWHV<RXKDYHEHHQVHOHFWHGIRUWKLVLQWHUYLHZIRU\RXUH[SHUWRSLQLRQDVDFHUWLILHG1HXUR
/LQJXLVWLF3URJUDPPLQJSUDFWLWLRQHU

5HVHDUFK4XHVWLRQV

 +RZFDQ1/3FRQFHSWVEHXVHGDVDOHDGHUVKLSWUDLQLQJWRROIRUOHDGHUVORRNLQJWR
LPSURYHHPSOR\HHHQJDJHPHQW"
 +RZFDQOHDGHUVXVLQJ1/3WRVWULYHIRUH[FHOOHQFHLPSDFWWKHHQJDJHPHQWRIDQ
RUJDQL]DWLRQ"
 +RZLVHIIHFWLYHQHVVRI1/3LPSDFWHGE\OHDGHUVKLSVW\OH"
 +RZGR\RXWKLQNOHDGHUVFDQVKDSHHPSOR\HHEHKDYLRUVDQGSHUVSHFWLYHVXVLQJ1/3"
 +RZFDQVKLIWLQJHPSOR\HHWKLQNLQJWRWKH³FDXVH´SHUVSHFWLYHLPSDFWHPSOR\HH
HQJDJHPHQW"
 +RZFDQFKDQJLQJWKHEHOLHIV\VWHPVRIOHDGHUVKHOSDFKLHYHRUJDQL]DWLRQDOHQJDJHPHQW
JRDOV"
 +RZFDQSUDFWLFLQJWKHILYHSULQFLSOHVIRUVXFFHVVKHOSOHDGHUVDFKLHYHRUJDQL]DWLRQ
HQJDJHPHQWJRDOV"
 +RZFDQ1/3DVDZKROHV\VWHPVDSSURDFKFKDQJHWRSURGXFHIDVWHUUHVXOWVWKDQDQ
RUJDQL]DWLRQQRWXVLQJ1/3LQWKHOHDGHUVKLSWUDLQLQJRIOHDGHUV"
 +RZGR\RXWKLQNWKH³GRZLWK´SURFHVVZLOOOLPLWLIDWDOOOHDGHULQIOXHQFHRQ
HPSOR\HHVWKDWDUHQRWGLUHFWO\UHSRUWLQJWRWKHP"
:KDWFKDOOHQJHVGR\RXVHHDULVLQJIURPOHDGHUVXVLQJ1/3WRLPSURYHHPSOR\HH
HQJDJHPHQW"
:KDWH[SHULHQFHVKDYH\RXKDGZKHUH1/3ZDVXVHGE\OHDGHUVKLSDQGZKDWZDVWKH
RXWFRPH"
'R\RXWKLQNWKHUHLVDGLIIHUHQFHLQWKHDSSOLFDWLRQRI1/3DVDOHDGHUVKLSWUDLQLQJWRRO
EHWZHHQQRQH[HFXWLYHPDQDJHPHQWDQGH[HFXWLYHPDQDJHPHQW"
%DVHGRQ\RXUNQRZOHGJHDQGH[SHULHQFHZRXOG\RXUHFRPPHQGRUJDQL]DWLRQVXVH
1/3"
$UHWKHUHDQ\DGGLWLRQDOFRPPHQWV\RXZRXOGOLNHWRDGGUHJDUGLQJ1/3RU1/3LQ
UHODWLRQWRXVHE\OHDGHUVKLSRUIRUWKHSXUSRVHRILPSURYLQJHPSOR\HHHQJDJHPHQW"








&ORVLQJ6WDWHPHQW

7KDQN\RXIRUWDNLQJWKHWLPHWRVKDUH\RXUNQRZOHGJHDQGLQVLJKWVRQWKHWRSLFRI1/3<RXU
WLPHLVDSSUHFLDWHGDQGZLOOKHOSWROHDUQPRUHDERXWKRZOHDGHUVFDQXVH1/3WRLPSURYH
HPSOR\HHHQJDJHPHQW

,QWHUYLHZHU&RPPHQWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

5HIOHFWLYH1RWHV2EVHUYDWLRQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB


 



 
  
$SSHQGL['5HFUXLWPHQW(PDLO

'DWH

+HOOR

,DPFRQWDFWLQJ\RXWRLQTXLUHLI\RXZRXOGEHLQWHUHVWHGLQSDUWLFLSDWLQJLQDYLUWXDOUHVHDUFK
VWXG\DVSDUWRID'RFWRURI0DQDJHPHQW([HFXWLYH/HDGHUVKLSSURJUDPZLWK&RORUDGR
7HFKQLFDO8QLYHUVLW\

7KHSXUSRVHRIWKHVWXG\LVWRH[SORUHWKH1HXUR/LQJXLVWLF3URJUDPPLQJ 1/3 FRQFHSWV
OHDGHUVPLJKWDSSO\WRLPSURYHHPSOR\HHHQJDJHPHQWLQWKH6RXWKZHVWHUQ8QLWHG6WDWHV,DP
VHHNLQJSDUWLFLSDQWVWKDWDUHFHUWLILHG1/3SUDFWLWLRQHUV3DUWLFLSDQWVZLOOUHPDLQDQRQ\PRXVLQ
WKHSUHVHQWDWLRQRIWKHUHVHDUFKILQGLQJV

3OHDVHOHWPHNQRZLI\RXDUHLQWHUHVWHGLQSDUWLFLSDWLQJRULI\RXKDYHDQ\TXHVWLRQV

6LQFHUHO\

6DUDK/DQH

'LVVHUWDWLRQ7LWOH
4XDOLWDWLYH$QDO\VLVRI1HXUR/LQJXLVWLF3URJUDPPLQJ&RQFHSWV/HDGHUV0LJKW$SSO\WR
,PSURYH(PSOR\HH(QJDJHPHQW

7LPH&RPPLWPHQW
7KHWLPHFRPPLWPHQWFRQVLVWVRIVLJQLQJDQGUHWXUQLQJDQLQIRUPHGFRQVHQWIRUPSDUWLFLSDWLQJ
LQDQDSSUR[LPDWHO\PLQXWHLQWHUYLHZDQGUHPDLQLQJDYDLODEOHIRUDSRWHQWLDOIROORZXS
LQWHUYLHZLIQHHGHG

3ULPDU\,QYHVWLJDWRU&RQWDFW,QIRUPDWLRQ

6DUDK/DQH
&RORUDGR7HFKQLFDO8QLYHUVLW\86


 


 
  
$SSHQGL[(&RQILGHQWLDOLW\$JUHHPHQW




3UR4XHVW1XPEHU 28263652

$OOULJKWVUHVHUYHG

,1)250$7,2172$//86(56
7KHTXDOLW\RIWKLVUHSURGXFWLRQLVGHSHQGHQWRQWKHTXDOLW\RIWKHFRS\VXEPLWWHG

,QWKHXQOLNHO\HYHQWWKDWWKHDXWKRUGLGQRWVHQGDFRPSOHWHPDQXVFULSW
DQGWKHUHDUHPLVVLQJSDJHVWKHVHZLOOEHQRWHG$OVRLIPDWHULDOKDGWREHUHPRYHG
DQRWHZLOOLQGLFDWHWKHGHOHWLRQ

3UR4XHVW 28263652

3XEOLVKHGE\3UR4XHVW//& 2021 &RS\ULJKWRIWKH'LVVHUWDWLRQLVKHOGE\WKH$XWKRU

$OO5LJKWV5HVHUYHG
7KLVZRUNLVSURWHFWHGDJDLQVWXQDXWKRUL]HGFRS\LQJXQGHU7LWOH8QLWHG6WDWHV&RGH
0LFURIRUP(GLWLRQ‹3UR4XHVW//&

3UR4XHVW//&
(DVW(LVHQKRZHU3DUNZD\
32%R[
$QQ$UERU0,

You might also like