DOCSLIB.ORG

Human Capital Index®

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Human Capital Index® Watson Wyatt’s Human Capital Index® Human Capital As a Lead Indicator of Shareholder Value 2001/2002 Survey Report WWW.WATSONWYATT.COM “Superior human capital management is a leading — rather than lagging — indicator of improved financial success. This finding is more important now, during times of economic uncertainty, than in boom times. Why? Lead indicators help you get ahead of the curve.” INTRODUCTION Can the way a company manages its they are, in fact, a leading indicator of human capital significantly affect its increased shareholder value. Further, we financial performance? found that superior HR management leads financial performance to a much greater Two years ago our Human Capital Index extent than financial outcomes lead good (HCI) study confirmed that the two are HR. We were also able to identify certain clearly linked. We developed a simple set of HR practices as value drivers and throw a measures quantifying exactly which HR prac- cautionary flag in front of some conventional tices and policies have the greatest correlation practices actually associated with a decrease to shareholder value. Using those to assign a in financial performance. single HCI “score” to each surveyed company allowed us to deliver conclusive, ground- The results of this study are more meaning- breaking results: Where there are superior HR ful now than ever before. While the state of practices, there is higher shareholder value. the economy is largely uncertain, companies cannot escape demographics. There is no Yet a crucial question remained: Do better doubt that the labor shortage will continue people management strategies actually create well into the next decade and that superior higher market value? Or do financially success- HR practices are a key to attraction, retention ful companies simply have more resources to and, more and more, business outcomes. It’s allocate to human capital initiatives? also a certainty that executives will now, more than ever, look to HR to justify expenditures Human Capital Index: As a Lead Indicator of Shareholder Value 1 We now have powerful insight into the and demonstrate the economic value of an answer. Our second Human Capital Index organization’s people practices. study allowed us to compare one set of com- panies at two points in time to analyze the The overriding message: If a company’s goal is correlation. The results are in and they are to improve shareholder value, a key priority dramatic. Superior human capital practices must be its approach to human capital. Wyatt Worldwide Watson are not only correlated with financial returns, ABOUT THE SURVEY In the first HCI study, conducted in 1999, In 2000, a European HCI survey was con- Watson Wyatt surveyed more than 400 U.S.- ducted to gain a more global perspective on and Canada-based companies that were these issues. More than 250 responses from 16 publicly traded, had at least three years of countries were received. The survey included shareholder returns and had a minimum of 200 questions in six languages and covered $100 million in revenue or market value. companies of all sizes and from all sectors of We asked a wide range of questions about the economy — more than a third of partici- how the organizations carried out their human pants were in the Euro 500 and more than a resources practices, including pay, people quarter were in the Global 500. The findings development, communications and staffing. from the European study were similar to the North American results, with improvements Responses were matched to objective financial in 19 key HR practices associated with a measures, including market value, three- and 26 percent increase in market value. five-year total returns to shareholders (TRS), and Tobin’s Q, an economist’s ratio that mea- In early 2001, the HCI research was con- sures an organization’s ability to create value ducted again, this time including responses beyond its physical assets. Publicly available from more than 500 North American com- data from Standard and Poor’s Compustat panies. In this most recent research, the database were used to access the financial participants reflected a broader view of information needed. business and included some larger, more prominent firms — with average annual To investigate the relationship between human sales of $4.68 billion, $8.45 billion in mar- capital practices and value creation, a series ket value and 18,697 employees on average. of multiple regression analyses were conducted, Fifty-one of these companies participated in identifying a clear relationship between the both the 1999 and 2001 surveys. Human Capital Index: As a Lead Indicator of Shareholder Value effectiveness of a company’s human capital practices and shareholder value creation. The European and new North American data Thirty key HR practices were associated were then merged. The result is a complete with a 30 percent increase in market value. respondent base of more than 750 companies Summary HCI scores were created for indi- in the United States, Canada and Europe with vidual organizations so that results could be at least three years of shareholder returns, expressed on a scale of 0 to 100. An HCI 1,000 or more employees and a minimum of score of 0 represents the poorest human capi- $100 million in revenues or market value. tal management, while a score of 100 is ideal. 1999 2000 2001 2001/2002 HCI First North First European Second North Survey Report American HCI Study HCI Study American HCI Study 2 Watson Wyatt Worldwide Watson The majority of the combined findings from these surveys were consistent, making it a logical and useful tool from which to draw conclusions. It is important to point out, however, that there were notable differences in emphasis between the European and North American studies. For instance, certain questions about benefits and HR service delivery were included only in the North American survey. In addition, the database is weighted nearly 2 to 1 to North American companies, so the generalized findings should be considered with that in mind. Watson Wyatt will publish more about the similarities and differences between the studies in the future. SURVEY HIGHLIGHTS Results Link Superior Human Capital Practices to Higher Shareholder Return The results from the 2001 HCI study are just FIGURE 1: Five-Year Total Returns to as definitive as those from 1999: The higher Shareholders (April 1996 – April 2001) a company’s HCI score, the higher its share- 64% holder value. In other words, the better an organization is doing in managing its human capital, the better its returns for shareholders. We broke the companies into three groups 39% based on their summary HCI scores. Those in the low group averaged a 21 percent five-year return. The medium group aver- 21% aged 39 percent. Those with high HCI scores returned 64 percent over five years (Figure 1). In addition to providing dramatic evidence Low Medium High HCI Score that good human capital management mat- (0-25) (26-75) (76-100) ters, the HCI study shows precisely which HR practices — amid the ever-increasing FIGURE 2: Key Links Between Human Capital and portfolio of options — have an impact on Shareholder Value Creation the bottom line. This year’s study identifies Practice Impact on Market Value the 49 specific HR practices that play the Total Rewards and Accountability 16.5% greatest role in creating shareholder value. We have divided those practices into six Collegial, Flexible Workplace 9.0% dimensions (Figure 2). The research quanti- fies exactly how much an improvement in Recruiting and Retention Excellence 7.9% each practice could be expected to increase Communications Integrity 7.1% a company’s market value. For example, a company that makes a significant improve- Focused HR Service Technologies 6.5% ment* in all of the practices categorized Prudent Use of Resources -33.9% under “Total Rewards and Accountability” should see its value improve by 16.5 percent Expected change in market value associated with a significant one (Figure 2). And a significant improvement standard deviation (1 SD) improvement in HCI dimension. in 43 key HR practices is associated with an increase of 47 percent in market value. Additionally, one dimension, “Prudent Use of Resources” identifies six practices that * What constitutes a “significant improvement”? A one standard deviation increase. Most answers to HCI questions are on a 1 – 5 scale, so a significant diminish shareholder value. change is a one-scale-point movement from a 1 to a 2, a 2 to a 3, and so on. Human Capital Index: As a Lead Indicator of Shareholder Value 3 Watson Wyatt Worldwide Watson Data Over Time Show Human Capital Practices Lead Value Creation The first HCI study confirmed that there was To see which way the relationship truly runs, a positive relationship between the quality of we simply compared two different correlations: a company’s HR practices and its economic results. But it did not offer resolution to the ❙ Correlation A represents the relationship debate that has raged for years: Do effective between the 1999 HCI score and 2001 HR practices drive positive financial results financial performance. or do positive financial results lead to better HR practices? ❙ Correlation B represents the relationship between 1999 financial performance and Two years ago, we noted that the best- 2001 HCI scores. performing companies did not simply have better-funded programs, they had entirely If better financial performance is what creates different programs than the poorly performing superior HR practices, Correlation B should companies. The high performers employed be larger. If, in fact, the way companies certain programs (e.g., broad-based stock manage their human capital is what drives options) that low performers did not. They financial success, Correlation A should stayed away from certain programs (e.g., be larger.
Load more

Recommended publications
  • September 15, 2009 Ms. Elizabeth M. Murphy Secretary
    September 15, 2009 Ms. Elizabeth M. Murphy Secretary U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549 Subject: Proxy Disclosure and Solicitation Enhancements (File No. S7-13-09) Ladies and Gentlemen: Enclosed are comments under the Securities and Exchange Commission’s (the “Commission”) Proposed Amendments to the Proxy Disclosure Requirements for Executive and Director Compensation, focusing specifically on § 229.407 (Item 407) Corporate Governance, regarding the disclosure requirements on the role of compensation consultants. These comments represent the views of Watson Wyatt Worldwide, an international consulting firm providing executive compensation, actuarial and other consulting services. We have sent a comment on the issue of revising the Summary Compensation Table and expanding the Compensation Discussion and Analysis under separate cover. Please contact Steven Seelig at 703-258-7623 if you have further questions regarding our comments. Best regards, Paul E. Platten, Ph.D. Steven Seelig Vice President, Global Practice Director, Executive Compensation Counsel, Research Human Capital Group and Innovation Center Watson Wyatt Worldwide Watson Wyatt Worldwide 80 William Street | Wellesley Hills, MA 901 N. Glebe Road | Arlington, VA, 22203 02481 Phone: 703.258.7623 | Fax: 703.258.7491 Phone: 781-283-9721 | Fax: 781-930-5446 [email protected] [email protected] Watson Wyatt & Company RESEARCH AND INNOVATION CENTER 901 N. Glebe Road \ A rlington, VA 22203 \ 703 258 8000 Telephone \ 703 258 8585 Fax Ms. Elizabeth M. Murphy, Secretary September 15, 2009 Page 2 I. Introduction Our comment letter begins with an Executive Summary, and then addresses the fact that academic research repeatedly has established that multi-service firms such as Watson Wyatt do not have clients whose executive pay levels are higher than those serviced by firms that provide only compensation consulting services (so-called “boutiques”).
    [Show full text]
  • 2008 Global Pension Assets Study
    watsonwyatt.com 2008 Global Pension Assets Study Watson Wyatt Worldwide January, 2008 watsonwyatt.com 2008 Global Pension Assets Study Executive Summary Global Pension Assets Study 2008 Key findings Increased pension assets provide some potential relief from adverse demographics The countries in our ‘P11’ Survey – the largest workplace pensions systems (characterised as ‘second pillar savings’ by the World Bank) - have grown their pension assets over the last 10 years at a compound annual rate of 7.1%, leading to pension asset pools of 82% of GDP, up from 64% in 1997. With the exception of France and Germany, these countries will expect these asset pools to provide some resilience to the effects of adverse demographics in which dependency ratios (workforce population/ total population) are set to rise significantly. The Funds in this survey are made up of workforce pensions arrangements and so in general do not include Sovereign Pension and Wealth Funds where the obligations of these funds have no explicit link to individuals. Sovereign Pension Funds by our estimates amount to a figure of around two and a half trillion US dollars at end 2007 Pension fund asset allocation shows signs of becoming more defensive, but slowly Pension funds now have a global average around 56% equities, 28% bonds and 16% other assets (estimated at around 5% in cash and 11% in alternative assets). Funds carry around a 20 percent overweighting to equities and around a significant underweighting to bonds relative to global capital market opportunities. We see in the recent trends a levelling off in the growth of the equity content and anticipate a point of inflexion in which both bond allocations and alternative assets are set to grow.
    [Show full text]
  • Watson Wyatt Worldwide
    Watson Wyatt Worldwide April 18, 2008 RIN 1212-AB01 Legislative and Regulatory Department, Pension Benefit Guaranty Corporation 1200 K Street, NW. Washington, DC 20005-4026 Dear Sir or Madam: This letter is the response of Watson Wyatt Worldwide to Proposed amendments to PBGC's regulation on Annual Financial and Actuarial Information Reporting released in the Federal Register on February 20, 2008. Watson Wyatt Worldwide is a global human capital and financial management consulting firm specializing in employee benefits, human capital strategies, and technology solutions. Founded in 1878 as an actuarial consulting firm, Watson Wyatt combines human capital and financial expertise to deliver business solutions that drive shareholder value. Watson Wyatt employs approximately 7,000 associates on a worldwide basis; with about 350 being Enrolled Actuaries under ERISA. As the company's Resource Actuary in the United States, I have prepared our response with input from others in the firm. We appreciate the opportunity to comment on the proposed regulations. The subject matter is very complicated, and we believe that most of the provisions are well considered. We do have a concern about the potential for one or more small plans within a controlled group triggering a filing for the entire controlled group. Our recommendation is expressed below. 1. We would like to propose one more circumstance where the PBGC should waive filing under ERISA §4010. The technical explanation of PPA 2006 prepared by the Staff of the Joint Committee on Taxation stated, "it is intended that the PBGC may waive the requirement [for reporting under ERISA section 4010 based upon the 80% Funded Gateway Test] in appropriate circumstances, such as in the case of small plans." Under the proposed amendments, PBGC will generally waive reporting for a controlled group if the aggregate plan underfunding does not exceed $15 million.
    [Show full text]
  • Hybrid Pension Plans: a Comprehensive Look at Their History, Economics and Features
    Hybrid Pension Plans: A Comprehensive Look at Their History, Economics and Features By Tomeka Hill, Gaobo Pang and Mark Warshawsky November 2010 their current hybrid plans into compliance. Moreover, Section 1: the lack of regulatory clarity appears to have changed some sponsors’ minds about converting their Introduction traditional pension plans to hybrid plans. A few other employers, however, have gone ahead with conversions. Among employers in the private sector, the shift Section 3 discusses trends in hybrid plan away from traditional defined benefit (DB) plans is sponsorship, participation and assets. The report well-documented. While there are many contributing uses information from three data sources: the Form factors, surveys identify employers’ desire to reduce 5500 Series database and two Towers Watson their exposure to risks, such as cost volatility and data sets. Plan sponsors use Form 5500 to report long liability durations, as paramount. Other information about their retirement, health and motivations include enhancing employee welfare plans to the U.S. Department of Labor (DOL) understanding and appreciation of benefits and and Internal Revenue Service (IRS). The first Towers providing more age-neutral benefit accruals. Watson data set tracks the changes in retirement Some companies have turned to defined contribution plan sponsorship among the 2009 Fortune 100 (DC) plans, but others have sought out alternative from 1998 to 2009. The second Towers Watson DB plans like hybrid plans. These plans share data set holds information about provisions and some design features with DC plans, such as conversion methods for 414 mostly large active accommodating worker mobility. But hybrid plans and inactive hybrid plans, which was collected in allocate the risks between sponsor and workers summer 2009.
    [Show full text]
  • 2009/2010 Communication ROI Study™
    2009/2010 Communication ROI Study™ Originally published by Watson Wyatt Worldwide Capitalizing on Effective Communication How Courage, Innovation and Discipline Drive Business Results in Challenging Times A presentation to IABC San Diego by Christine Infante, Kathleen Drummond September 15, 2010 © 2010 Towers Watson. All rights reserved. What We’ll Cover Today How companies with highly effective communication: z Have the courage to talk about what employees want to hear in challenging times. z Focus on innovation and use new tools to keep employees engaged in the business. z Have the discipline to plan and measure success. But first, some background on our study towerswatson.com 2 © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. About the Study z Links effective communication and financial performance z Fielded April through June, 2009 z 328 companies participated, representing 5 million employees 2009/2010 Participation Australia, 20 Canada, 40 United States, 141 Middle East, 62 Europe, 65 towerswatson.com 3 © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. Defining Communication Effectiveness Companies get a communication effectiveness score based on survey responses Companies are ranked Communication and grouped Effectiveness Score Look at 5-year financial High, 25% performance Regression shows firms 50% with high scores are also best financial performers Low, 25% towerswatson.com 4 © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. Key Findings: Highly Effective Communicating Firms Better financial performance • A 47% higher total return to shareholders (2004-2009) Invest in employee communication • Spend 28% more per employee ($257 high vs.
    [Show full text]
  • Towers Watson Capital – Empire State Economic Development Fund – General Development Financing (Capital Grant)
    FOR CONSIDERATION August 18, 2011 TO: The Directors FROM: Kenneth Adams SUBJECT: White Plains (Mid-Hudson Region – Westchester County) – Towers Watson Capital – Empire State Economic Development Fund – General Development Financing (Capital Grant) REQUEST FOR: Findings and Determinations Pursuant to Sections 16-m and 10 (g) of the Act; Authorization to Adopt the Proposed General Project Plan; Authorization to Make a Grant and to Take Related Actions General Project Plan I. Project Summary Grantee: Towers Watson Pennsylvania Inc. (“Towers Watson PA”) ESD* Investment: A grant of up to $500,000 to be used for a portion of the cost of renovations. * The New York State Urban Development Corporation doing business as the Empire State Development Corporation (“ESD” or the “Corporation”) Project Location: 44 South Broadway, White Plains, Westchester County Proposed Project: Lease and renovate new office space and purchase machinery and equipment. ESD Incentive Offer Accepted: October 6, 2009 Project Completion: November 2010 Number of Employees at Project Location: Initial employment at time of ESD Incentive Offer: 140 Current employment level: 160 Minimum employment through January 1, 2016: 140 Grantee Contact: Denise M. DeAngelis, Tax Planning & Compliance Manager 1500 Market Street, Centre Square East Philadelphia, PA 19102-4790 Phone: (215) 246-6818 Fax: (215) 246-6529 Anticipated Appropriation Source: Empire State Economic Development Fund ESD Project No.: W785 Project Team: Origination Paul Taxter Project Management Brendan Healey Affirmative Action Denise Ross Finance Ross Freeman Environmental Soo Kang Regional Council: The Mid-Hudson Regional Council has been made aware of this item. II. Project Cost and Financing Sources Financing Uses Amount Renovations $2,500,000 Furniture and Equipment 1,280,000 Soft Costs 535,000 Total Project Costs $4,315,000 Financing Sources Amount Percent ESD-Grant $500,000 12% Towers Watson PA Equity 3,815,000 88% Total Project Financing $4,315,000 100% 2 III.
    [Show full text]
  • Towers Perrin/ Watson Wyatt
    EN Case No COMP/M.5597 - TOWERS PERRIN/ WATSON WYATT Only the English text is available and authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 6(1)(b) in conjunction with Art 6(2) Date: 03/12/2009 In electronic form on the EUR-Lex website under document number 32009M5597 Office for Publications of the European Union L-2985 Luxembourg EUROPEAN COMMISSION Brussels, 3.12.2009 SG-Greffe(2009) D/10938-10939 C(2009) 9893 In the published version of this decision, some information has been omitted pursuant to Article PUBLIC VERSION 17(2) of Council Regulation (EC) No 139/2004 concerning non-disclosure of business secrets and other confidential information. The omissions are MERGER PROCEDURE shown thus […]. Where possible the information ARTICLE 6(1)(b) DECISION IN omitted has been replaced by ranges of figures or a CONJUNCTION WITH general description. ARTICLE 6(2) To the notifying parties: Dear Sir/Madam, Subject: Case No COMP/M.5597 – Towers Perrin/ Watson Wyatt Notification of 14.10.2009 pursuant to Article 4 of Council Regulation No 139/20041 1. On 14 October 2009, the European Commission ("the Commission") received a notification of a proposed concentration pursuant to Article 4, and following a referral pursuant to Article 4(5), of Council Regulation (EC) No 139/2004 (the "Merger Regulation") by which the undertaking Towers, Perrin, Forster & Crosby, Inc., ("Towers Perrin", U.S.) enters into a full merger within the meaning of Article 3(1)(a) of the Merger Regulation with Watson Wyatt Worldwide, Inc. ("Watson Wyatt", U.S.). I. THE PARTIES AND THE OPERATION 2.
    [Show full text]
  • Contributors, Index
    Prospects for Socia. Security Reform Edited by Olivia S. Mitchell, RobertJ. Myers, and Howard Young Pension Research Council The Wharton School ofthe University ofPennsylvania PENN University of Pennsylvania Press Philadelphia Pension Research Council Publications A complete list of books in the series appears at the back of this volume. Copyright © 1999 The Pension Research Council ofthe Wharton School of the University of Pennsylvania All rights reserved Printed in the United Stales ofAmerica on acid·free paper 10 9 8 7 6 5 4 3 2 Published by University ofPennsylvania Press Philadelphia, Pennsylvania 1910+4011 Library ofCongress Cataloging-in-Publication Data Prospects for social security reform / edited by Olivia S. Mitchell. RobcrtJ. Myers, and Howard Young. p. em. "Pension Research Council Publications." Includes bibliographical references. ISBN 0-8122-3479-0 (alk. paper) 1. Social security- United States. I. Mitchell, Olivia S. II. Myers, RobertJ. (RobertJulius), 1912- Ill. Young, Howard, 1932- IV. "''harton School. Pension Research Council. HD7125.P733 1998 368.4'3'00973-dc21 9841908 CIP Frontispiece: Special Treasury securities, smrcd in a federal government filing cabinet in West Virginia, represent $700 billion in Social Security Trust Fund assets. Photo:JeffBaughan. Contributors David S. Blitzstein is the Director of the United Food and Commercial Workers International Union (UFCW) Office ofNegotiated Benefits, ad­ vising UFCW local unions in collective bargaining on pension and health insurance issues and strategic planning for the UFCW. In addition, he acts as an advisor to the Union's 150jointly trusted health and welfare and pension plans nationwide and is a trustee ofthe $2.2 billion UFCW Indus­ try Pension Fund and the UFCW National Health and Welfare Fund.
    [Show full text]
  • Towers Watson: Capitalizing on Effective Communication 2009
    Capitalizing on Effective Communication How Courage, Innovation and Discipline Drive Business Results in Challenging Times 2009/2010 Communication ROI Study Report Originally published by Watson Wyatt Worldwide 2009/2010 Communication ROI Study Report Table of Contents Executive Summary 2 Key Findings 2 Introduction 3 About the Participants 4 Have courage. 5 Innovate. 9 Be disciplined. 14 Conclusion 17 Featured Figures Figure 5. Few companies are taking the opportunity to revise their employee value proposition 6 Figure 9. Highly effective communicators help managers address employee needs and concerns 8 Figure 17. Highly effective communicators are using social media more often to reach all employee audiences 12 At a Glance Figure 21. Phase at which communication function Communicating with employees helps boost engagement during became involved in the change process 14 tough times. Figure 22. High-effectiveness companies are Many companies aren’t explaining to workers how the employment deal more likely to have a documented strategy 14 has changed in response to challenging economic times. To best position themselves to succeed in an uncertain future, employers need internal communication programs that are courageous, innovative and disciplined. Executive Summary Companies that communicate with courage, innovation and discipline, especially during times of economic challenge and change, are more effective at engaging employees and achieving desired business results. Our research has consistently found the firms that communicate effectively with employees are also the best financial performers. When it comes to communication, successful companies pay close attention to articulating their employee value proposition. In times of change, they use social media and other, time-tested tools to communicate with an increasingly diverse and dispersed audience.
    [Show full text]
  • Phased Retirement: a Sloan Work and Family Research Network Fact Sheet
    Questions and Answers about Phased Retirement: A Sloan Work and Family Research Network Fact Sheet Introduction The Sloan Work and Family Research Network has prepared Fact Sheets that provide statistical answers to some important questions about work-family and work-life issues. This Fact Sheet includes statistics about Phased Retirement. (Last updated: August 2009) Who has access to phased retirement? Fact 1 Only 14% of respondents though that if a secure full-time white-collar employee who is age 55 or over requested to shift to part-time employment it could not be worked out in a way that would be acceptable to your establishment? (Hutchens, 2007, p. 533). Fact 2 “More than 80 percent of white-collar workers are employed in an establishment that permits some form of phased retirement” (Hutchens & Chen, 2004, p. 20). Fact 3 When employers were asked if their respective organizations would allow an older white-collar employee to reduce hours, most (73%) said “Yes, something could be worked out” while 13% said no and 14% said that they would allow it “in some cases” (Hutchens & Chen, 2004, p. 22). Fact 4 “ Older people appear to have more flexible work arrangements than do younger people as suggested by the increasing proportion with age of those who are self-employed (85% of 90 year olds versus 18% of 55 year olds) and the significant percentage of older workers saying they could reduce their work hours if they wanted” (National Institute on Aging, 2009, p. 46). Fact 5 “ The research suggests that less than 10% of white collar employees have an opportunity for phased retirement that does not necessitate a loss of, or change in, health insurance; does not require taking on a different job; and does not entail retiring and subsequent rehiring” (Chen & Hutchens, 2006, p.
    [Show full text]
  • WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY (Exact Name of Registrant As Specified in Its Charter)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-16503 WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) Ireland 98-0352587 (Jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) c/o Willis Group Limited 51 Lime Street, London EC3M 7DQ, England (011) 44-20-3124-6000 (Address of principal executive offices) (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each Class Name of each exchange on which registered Ordinary Shares, nominal value $0.000304635 per share NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • The Role of the Chief Operating Officer (COO) Mort Downey, COO of the U.S
    the Business of Government Best Practices 3 Improving the Business of Government: Defense Automated Printing Service Outstanding Leaders 4 The Role of the Chief Operating Officer (COO) Mort Downey, COO of the U.S. Department of Transportation Paul Daoust, COO of Watson Wyatt Worldwide Stimulating Ideas 7 Book Review The Quest for Efficiency: The One Best Way and The Tides of Reform 8 Article Abstracts “The Myth of the Top Management Team” by Jon R. Katzenbach, Harvard Business Review “How Microsoft Makes Large Teams Work Like Small Teams” by Michael A. Cusumano, Sloan Management Review “Performance-Based Organizations: Assessing the Gore Plan” by Alasdair Roberts, Public Administration Review 11 New from the National Performance Review 12 Book Excerpt Straight from the CEO: The World’s Top Business Leaders Reveal Ideas That Every Manager Can Use Volume 1 January/FeBruary Issue 1 1998 At the Editor’s Keyboard Paul R. Lawrence usiness and government are becoming more similar. Savvy Best Practices consumers, trained by the very best companies in the pri- “Improving the Business of Government” tells of the changes that vate sector, are partly responsible for this trend. As the pri- took place at the Defense Automated Printing Service (DAPS). In Bvate sector raises standards for customer service, citizens 1994, Mike Cocchiola became the director of this worldwide organiza- are demanding and receiving better service from government. tion that handles the printing, duplicating, and electronic conversion needs of the Department of Defense. Rather than enforcing rules that Government has recognized the advantages of learning from private require all defense organizations to use DAPS, Cocchiola challenged sector practices.
    [Show full text]