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A Structured Framework for Improving Functional Performance
Catapult Your Business
What’s InsideIntroduction • 1What We Did Differently • 2How the Diagnostic Works • 3
Assessing Your Function’s Maturity • 4
Prioritizing Your Improvement Efforts • 5Establishing Your Action Plan • 6
Closing Thoughts • 7Appendix: Function- Specific Activity Maps • 8
Leading companies regularly assess functional performance against a structured framework.We clarify not only how far a function has progressed but also what steps to take next in order to drive impact faster. You don’t just get a score; you get a data-driven action plan and roadmap based on best practices from 6,000+ member organizations.
© 2015 CEB. All rights reserved. 1
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Today’s economic environment has changed in two major ways: change is
constant and data is everywhere.
As a result, making decisions about when, where, and how to adjust strategic
priorities is more challenging than ever.
Aiming for better effectiveness, functional leaders often choose one of two
options—to improve their strategic planning processes or to transform their
function for greater business impact. But even the best-designed strategic
plans don’t stay relevant for long. Here are some examples from across the
C-Suite:
ȕ More than 4 in 10 HR leaders rate their functions as ineffective at strategic
planning processes.
ȕ Two-thirds of marketing leaders have recently updated their strategies, but
just 13% have achieved anticipated results.
ȕ 93% of business partners view IT strategic planning as important, but only
23% believe IT is effective at it.
ȕ 77% of general counsel place importance on spending more time on
strategic planning, but they also struggle with it as day-to-day business
requests crowd out longer-term, high-value planning and support.
And although restructuring the function is a popular approach, it isn’t making
much of a difference. Again, here are some examples:
ȕ 81% of finance functions have recently undergone a redesign or are in the
process of one, but only 30% of transformation projects deliver forecasted
benefits or sustained cost savings.
ȕ Similarly, 81% of HR functions are undergoing or have recently undergone
a redesign, but only 60% of organizations achieved the anticipated
performance results even a year later.
Maturity models offer a successful solution here, because they can help
organizations assess functional performance and improve effectiveness. With
our approach to functional maturity, we’ve taken this type of tool a step further.
Inspired by the Capability Maturity Model developed at Carnegie Mellon
University, we built our solution from our own empirical research (grounded
in the best practices of our members) and designed it to evolve with those
practices.
We have isolated the key ingredients of each maturity level, designing an
approach that enables specific planning for short- and long-term actions.
Introduction
We integrated CEB’s [Functional Maturity] diagnostic into our function’s strategic planning process this year. The results drove consensus around next year’s plans by not only confirming our current priorities but also revealing new priorities that we had not yet fully recognized.”
Chief Human Resource OfficerFortune 500 Oil and Gas Company
© 2015 CEB. All rights reserved. 2
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Our maturity diagnostics have some key differences from other CMM-based
maturity models. Although those models identify reasons behind whether or
not a process is effective, they don’t provide any action-planning support. Our
diagnostics help organizations not only identify the activities that most need
improving but also how to prioritize their efforts accordingly.
To do this, we assess functional processes and activities along two dimensions:
ȕ Maturity—Measuring an organization’s level of development on a functional
activity, compared to CEB best practice research, on a scale of 1 (low)
to 5 (high)
ȕ Importance—Gauging each activity’s relative importance to meeting the
overall business objectives of a function, on a scale of 1 (unimportant)
to 5 (critical)
We then measure the gap between maturity and importance through the
Activity Priority Index (API), which is computed for each activity and then
weighted by its average importance. This index identifies the highest-priority
activities for improvement.
We don’t just deliver a maturity score. Thanks to our focus on activity-level
maturity and the API, our model provides a clear path to maturity and suggests
practical tools and resources (including a data-driven action plan and roadmap)
to get you there—without presuming you need to do or spend more in order
to advance.
In addition, our consultative approach to report delivery connects each
organization with an advisor to provide more help with prioritization and
action planning.
The following pages explain how our maturity diagnostics can help your
specific function realize its most important activities, improve them, and
become more effective as a result.
We are at the beginning of a huge transformation and need tools like this to help along the way.”
VP MarketingTelecommunications Company
What We Did Differently
© 2015 CEB. All rights reserved. 3
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
We help leaders target the critical activities that deliver the largest returns.
1. Assessing Your Function’s Maturity
Assess the maturity of key management activities for the function based on objective, peer-based standards.
3. Establishing Your Action Plan
Establish action steps for advancing to the next maturity level for each activity.
2. Prioritizing Your Improvement Efforts
Identify the critical gaps in maturity, and determine where to prioritize improvement efforts.
How the Diagnostic Works
© 2015 CEB. All rights reserved. 4
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Please see the Appendix for the Activity Map specific to your function, showing the full scope of activities we assess.
1. Assessing Your Function’s Maturity
Our maturity diagnostics measure the function’s
performance across a broad set of management practices
using objective, peer-based standards. Whereas most
vendors focus on a single capability, we provide a
comprehensive assessment that offers a holistic view of
your world.
We gather information through targeted questions based
on our research regarding best practices, covering all of
the common critical objectives and activities.
Sample Activity Map
Functio
nal Activities
Functional Objectives
Engage with Customers
Manage Sales Talent
Manage Sales Operations
Partner with Marketing
Manage the Function
Conduct Account Planning
Build Sales Climate
Forecast Sales
Segment Customers
Manage Sales Budget
Select Global/Key Accounts
Source Sales Talent
Facilitate Sales Process
Partner on Lead Sourcing
Manage Internal Sales Communication
Manage Global/ Key Accounts
Screen and Hire Sales Talent
Organize Sales Collateral and Tools
Develop Value Proposition and Commercial
Messages
Develop Coverage Strategy
Support Channel Partners
Onboard New Talent
Manage CRM
Create Sales Collateral
Reduce Sales Channel Conflict
Qualify Sales Opportunities
Develop Training
Manage Compensation
Design
Manage Opportunity Pursuit Support Coaching Outcomes
© 2015 CEB. All rights reserved. 5
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Man
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20.0
10.0
0.0
(10.0)Lowest Priority
Highest Priority
Sample Gap Analysis
2. Prioritizing Your Improvement Efforts
Participants will learn the maturity level and importance
of all activities in their function. We’ll then combine both
scorings to create a single API measure, providing a view
of which activities the organization should prioritize.
To help pressure-test the results, we will conduct a
consultative advisory call with all participants for a
rich discussion on where their organization should be
focused—applying the context of organizational barriers,
current initiatives already in progress, and stakeholder
agreement about the priorities.
© 2015 CEB. All rights reserved. 6
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Run time-consuming process to produce highly detailed budget.
Align budget with firm strategy by forcing trade-offs.
Teach business about performance drivers during budget process.
Set aside budget dollars for growth funding.
Build scenario plans, and define triggers.
Remove nonessential variables from budget data collection.
At budget process outset, agree with business on assumptions.
Business partners review their budget before making operational decisions.
Follow standard annual budgeting process.
Tailor budget process and systems to serve core budget objectives.
Automate rules-based processes.
Level 2
Level 1
Level 3
Level 4
Level 5
Currently Practiced (Or No Longer Required)
Commence to Achieve Next Maturity Level
Discontinue to Achieve Next Maturity Level
Not Currently Practiced
Sample Pathway to Maturity: Building Operating Budget
3. Establishing Your Action Plan
Lastly, we produce a Pathway to Maturity for each activity
assessed. This stair-step visualization shows participants
their current position and the steps they need to take to
realize both short- and long-term success in each activity.
Each horizontal row of the graphic represents the
sub-activities that represent maturity for that level—
highlighting what our research suggests best differentiates
one maturity level from the next.
As the key indicates... ȕ Items shaded in blue were judged to be presently
practiced and effective.
ȕ Items in orange represent actions needed to fully
achieve the next maturity level. Organizations should
focus on either putting these in place or achieving
consistent effectiveness levels.
ȕ Items in green are practiced and effective but need to
be discontinued or replaced by another sub-activity to
reach the next level.
© 2015 CEB. All rights reserved. 7
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Most companies’ leaders struggle with clearly,
comprehensively understanding how to improve
functional effectiveness. This lack of clarity leads to ad
hoc, disparate, and often unsupported investments and
initiatives. Leaders need a reliable assessment from which
they can structure and communicate plans.
Companies often assess progress toward functional
effectiveness against a structured framework, the results
of which typically provide a roadmap for maturing the
function. Traditional maturity assessments, however, tend
toward a one-size-fits-all approach, focus on the short-
term, and lack concrete, forward-looking guidance.
Our maturity diagnostics measure performance in
critical functional objectives and activities to guide your
transformation program. The tool clarifies critical maturity
gaps and prioritizes areas for improvement, identifying
next steps for each critical area and a long-term path to
the desired maturity level.
Strategic planning and functional transformation are clearly strong use cases for our maturity diagnostics, but the tool can be adapted to get a comprehensive read on the health of any department or function.
Closing Thoughts
Using our diagnostic: ȕ A newly appointed head of Sales at a pharmaceutical
company identified the function’s current maturity across key sales activities and drove consensus around strategic priorities.
ȕ The HR team at a government agency drove strategic planning conversations with the agency president.
ȕ A decentralized company undergoing a finance transformation pinpointed where to invest limited resources to meet key business objectives.
ȕ The marketing function of a network equipment manufacturer combined the results of the Marketing Maturity Diagnostic and its Marketing Excellence Survey for a comprehensive picture of the function’s maturity and talent.
ȕ The CIO at a medical device company drove alignment in his leadership team for a multi-year global transformation journey, and they plan to participate yearly to measure their progress during and after the transformation.
ȕ A head of Recruiting built team consensus and compared his priorities to those of the CHRO.
© 2015 CEB. All rights reserved. 8
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Appendix
Function-Specific Activity Maps
© 2015 CEB. All rights reserved. 9
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Develop Service Organization
StrategyCreate Customer
Service ExperienceManage Frontline
Rep Talent
Measure and Manage Performance
Utilize Service Organization Information
Manage the Function
Create Service Model
Design Multichannel Service
Experience
Hire Talent
Design Dashboard
Build Knowledge Management
Design Organizational
Structure
Develop Talent Strategy
Design Live Channel Service
Experience
Onboard Talent
Evaluate Customer Service
Experience
Manage Customer Information
Communicate with Staff
Partner with Cross-Functional
Stakeholders
Develop Talent
Measure Frontline Performance
Metrics
Support Managers and Leaders
Develop Service Organization Value
Proposition
Engage Talent
Track and Improve Efficiency
Manage Technology
Build Service Organization
Climate
Manage Budget
Adhere to Industry Regulations
Manage Vendors
Collaborate with Outsource/Offshore
Partners
Our customer contact maturity diagnostic measures the contact center’s maturity across 25 key management activities.
Activity Map: Customer Contact
© 2015 CEB. All rights reserved. 10
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Conduct Financial Accounting and
ReportingManage
RiskSecure and
Manage Funding
Measure and Guide Financial
PerformanceAllocate
ResourcesManage the
Function
Process Transactions
Monitor Enterprise Risk
Set and Manage the Capital Structure
Manage Target Setting Process
Provide Financial Input and Funding
for Strategy
Design Finance Team Strategy
Govern Financial
Data
Design and Maintain Internal Controls
Secure and Cultivate Equity
Investors
Forecast Performance
Build Operating Budget
Set Finance Organizational
Structure
Close the Books
Mitigate Financial Risk
Return Cash to Shareholders
Draft Management Reports
Set and Manage the Capital
Budget
Manage Finance
Staff
Work with External Auditor
Create and Execute the Audit Plan
Secure and Cultivate Debt
Investors
Review Business Performance
Support M&A Activity
Allocate Functional Resources
Report Financial Performance
Forecast and Manage Cash
Flows
Advise on Critical Business Partner
Decisions
Plan Tax Structure
Manage Finance Technology
Comply with Tax Regulations
Guide Working Capital
Communicate Financial
Performance to the Board
Our finance maturity diagnostic measures the finance department’s maturity across 32 key management activities.
Activity Map: Finance
Other maturity diagnostics available for the finance function:
ȕ FP&A ȕ Accounting and Reporting
ȕ Tax
ȕ Shared Services ȕ Finance for Midsized Companies ȕ FP&A for Midsized Companies
© 2015 CEB. All rights reserved. 11
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Our HR maturity diagnostic measures the HR department’s maturity across 38 key management activities.
Activity Map: Human Resources
Other maturity diagnostics available for the HR function:
ȕ Talent Management ȕ Learning and Development ȕ Recruiting ȕ Total Rewards
ȕ Compensation ȕ Benefits ȕ HR for Midsized Companies
Manage Workforce Strategy
Recruit New Employees
Develop Employees
Manage Existing
Employees
Manage Employee
Rewards and Benefits
Enable Organizational Effectiveness
Manage the Function
Identify and Manage
Competencies
Source Talent
Analyze L&D Needs and
Investments
Manage Employee
Performance
Design Compensation
Manage Organization
Design
Build HR Strategic
Plans
Review Talent
Assess and Hire Talent
Design and Build L&D Solutions
Manage Employee
Engagement
Deliver Compensation
Manage Organizational Development
Manage HR Functional
Design
Develop a Workforce
Plan
Acquire Critical Talent Segments
Implement L&D
Solutions
Manage Mobility and Career Paths
Design Benefits
Manage Change
Manage HR Staff
Manage EVP
Recruit Executives
Develop Critical Talent Segments
Manage Succession
Deliver Benefits
Manage HR Technology
Manage Talent
Analytics
Develop Leaders
Manage High-Potential
Employees
Build Total Rewards Strategy
Manage the HR Budget
Partner with the Business
Manage Diversity and
Inclusion
Compensate Executives
Manage HR Vendors
Interact with the CEO and
Board
Manage Employee Relations
© 2015 CEB. All rights reserved. 12
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Our IT maturity diagnostic measures the IT department’s maturity across 40 key management activities.
Activity Map: Information Technology
Other maturity diagnostics available for the IT function:
ȕ Applications ȕ Enterprise Architecture ȕ Information Risk
ȕ Infrastructure ȕ PMO ȕ IT for Midsized Companies
Engage Business Partners
Define Strategy and Architecture
Manage the Project
Portfolio
Deliver Capabilities and Services
Manage Information
RiskDevelop and
Manage TalentManage the
Function
Structure Business
Engagement
Manage Business Architecture
Assess Project Proposals and Business Cases
Gather Business Requirements
Assess Information
Risk
Plan Workforce Strategy
Manage IT Functional
Design
Communicate Strategy and Performance
Plan Future State Architecture
Manage the Project Prioritization
Process
Build Applications
Manage Risk Policies
Assess and Manage Employee
Performance
Manage the IT Budget
Manage Employee Adoption
Drive Reuse and Standards
Adherence
Manage and Forecast Project
Resources
Integrate Applications
Manage User Awareness
Develop Critical Skills and
Competencies
Measure IT Performance
Support Business Partner
Technology Decision Making
Manage and Maintain
Information
Manage Projects
Manage and Refresh Systems and Technology
Manage Regulatory Compliance
Guide Employee Development and
Career Paths
Design Sourcing Strategy
Evaluate New Technologies
Monitor Portfolio Health
Manage Infrastructure
Operations
Manage Security
Operations
Develop Leaders
Manage IT Vendors
Manage Organizational
Change
Manage Infrastructure
Architecture and Engineering
Manage Sourcing
Relationships
Define IT Services
Design IT Strategic Plan
Govern Services
© 2015 CEB. All rights reserved. 13
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Our legal maturity diagnostic measures the legal department’s maturity across 36 key management activities.
Activity Map: Legal
Other maturity diagnostics available:
ȕ Data Privacy ȕ Risk Management ȕ Legal for Midsized Companies
Define Legal Work and Strategy
Promote Corporate
Compliance and Ethics
Support Business Goals
Ensure Regulatory Compliance
Protect Company
Information
Maintain Corporate
GovernanceManage the
Function
Assess Legal and Regulatory
Risks
Build a Compliance and Ethics Program
Manage Contract
Risks
Comply with Core
Regulations
Classify Information
Advise the Board
Select Outside Counsel
Determine Legal Risk Tolerance
Oversee Allegations and Investigations
Advise IP Strategy
Communicate Regulatory
Issues
Manage Company
Information
Support Board Processes and
Oversight
Manage Outside Counsel
Set Functional Strategy
Deploy Training and
Communications
Advise Product
Development
Manage Government
Relations
Ensure Appropriate
Retention
Monitor Governance
Practices
Manage Litigation
Set Legal Resourcing
Strategy
Monitor Program Performance
Advise Marketing and
Communications
Advise Labor and Employment
Issues
Manage Privacy Risk
Oversee Securities and
Filings
Manage Legal Talent
Partner with Business Clients
Manage Third-Party
Risk
Advise Sales and After-Sales
Support
Comply with Tax
Regulations
Manage Legal
Technology
Measure Department Performance
Advise M&A and Transactions
Manage Legal
Budget
14© 2015 CEB. All rights reserved.
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Develop Brand and Market
StrategyAcquire New
ClientsSupport Cross-Sell and Up-Sell
Promote Customer
Retention and Advocacy
Partner with Sales
Foster Enterprise-
Wide Customer Focus
Manage the Function
Identify and Prioritize Market
Opportunities
Develop Demand-
Generation Plans
Identify Solution-Selling Opportunities
Engage Existing Client
Base
Understand Buying
Dynamics
Inform Company Innovation
Manage Marketing Functional
Design
Develop Strategic Marketing
Plan
Prioritize Prospect Segments
Prioritize Solution-Selling Opportunities
Mine Voice of the Customer
Data
Develop Sales Support and
Collateral
Steward Customer
Experience
Manage Marketing
Staff
Create and Manage Brand
Strategy
Source Leads
Develop Solutions
Monitor Customer Loyalty
Manage Lead
Pipeline
Guide Pricing and Profitability
Models
Manage Market Research and
Analytics
Develop Company Value
Propositions
Qualify Leads
Identify and Support
Customer Advocates
Support External Channel Partners
Enable Customer- Focused IT Strategies
Manage Marketing
Technology
Review Product and Service
Portfolio
Nurture Leads
Influence Distribution
Strategy
Manage the Marketing
Budget
Partner with P&L Owners
Launch New Products and
Services
Champion Market- Oriented Culture
Manage Marketing Vendors
Manage Marketing Content
Measure and Communicate Performance
Our B2B marketing maturity diagnostic measures the marketing department’s maturity across 37 key management activities.
Activity Map: B2B Marketing
Other maturity diagnostics available for the B2B marketing function:
ȕ Communications ȕ Market Insights ȕ B2B Marketing for Midsized Companies
15© 2015 CEB. All rights reserved.
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Manage Market
Insights and Analytics
Manage Market and Brand Strategy
Acquire New Customers
Grow Share of Wallet
Drive Product/Brand
Availability
Foster Enterprise-
Wide Customer Focus
Manage the Function
Manage Data Asset
Prioritize Market Opportunities
Prioritize Consumer Segments
Engage Existing Customers
Partner with Trade Marketing/
Sales
Guide Innovation
Manage Marketing Functional
Design
Identify Market Opportunities
Develop Product and Brand Positioning
Build Market Awareness
Identify New Product Use
Opportunities
Manage Direct-to-Consumer Distribution
Steward Customer
Experience
Manage Marketing Staff
Generate Consumer
Insights
Develop Integrated
Marcomm Plans
Drive Consumer Consideration
Identify Up- and Cross-Sell Opportunities
Support External Channel Partners
Inform Pricing and Profitability
Models
Manage Marketing
Technology
Understand Shoppers
Partner with P&L Owners
Elicit Consumer Preference
Launch New Products or
Brand
Enable Consumer-Focused IT Strategies
Manage the Marketing Budget
Activate Insights
Drive Conversion
Champion Market-
Orientated Culture
Manage Agencies and Vendors
Identify and Support Brand
Advocates
Measure and Communicate Performance
Our B2C marketing maturity diagnostic measures the marketing department’s maturity across 34 key management activities.
Activity Map: B2C Marketing
Other maturity diagnostics available for the B2C marketing function:
ȕ Communications ȕ Market Insights ȕ B2C Marketing for Midsized Companies
16© 2015 CEB. All rights reserved.
Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome
Engage with Customers
Manage Sales Talent
Manage Sales Operations
Partner with Marketing
Manage the Function
Conduct Account Planning
Build Sales Climate
Forecast Sales
Segment Customers
Manage Sales Budget
Select Global/Key Accounts
Source Sales Talent
Facilitate Sales Process
Partner on Lead Sourcing
Manage Internal Sales Communication
Manage Global/ Key Accounts
Screen and Hire Sales Talent
Organize Sales Collateral and Tools
Develop Value Proposition and
Commercial Messages
Develop Coverage Strategy
Support Channel Partners
Onboard New Talent
Manage CRM
Create Sales Collateral
Reduce Sales Channel Conflict
Qualify Sales Opportunities
Develop Training
Manage Compensation
Design
Manage Opportunity Pursuit
Support Coaching Outcomes
Our sales maturity diagnostic measures the sales department’s maturity across 25 key management activities.
Activity Map: Sales
Other maturity diagnostics available for the sales function:
ȕ Sales for Midsized Companies
CEB, the leading member-based advisory company, equips more than 10,000 organizations
around the globe with insights, tools and actionable solutions to transform enterprise performance.
By combining advanced research and analytics with best practices from member companies,
CEB helps leaders realize outsized returns by more effectively managing talent, information,
customers and risk. Member companies include 90% of the Fortune 500, nearly 75% of the Dow
Jones Asian Titans, and more than 85% of the FTSE 100. More at cebglobal.com.
+1-866-913-2632 | CEB.Support@executiveboard.com | www.cebglobal.com
© 2015 CEB. All rights reserved. CEB151549GD
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