Post on 23-Jan-2015
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NASSCOM India ITES-BPO Summit 2006
Alexander Campbell
UBS AG, Head of Human Capital Management
Attracting, Managing and Developing Talent
June 2006
2
Content of Presentation
1. About UBS
2. Focus of UBS Group HR
3. UBS in India
4. Challenges
5. Conclusions
SECTION 1
About UBS
About UBS Globally
5
UBS's positioning today
UBS
World's largest wealth manager
CHF 1,822bn in invested assets
- WM: CHF 944bn
- WM USA: CHF 728bn
- BB: CHF 150bn
Wealth Management
Best global Private Bank (Euromoney)
Wealth Management USA
4th largest full service US broker (15 % market share)3
Business Banking Switzerland
25-35% of Swiss banking market
Global Wealth Management & Business Banking
#1 global secondary equity
cash commissions
#1 global equity capital
markets (8.5% market share
of volume)
#2 FX franchise (12.5%
market share)
#7 global Investment
Banking fee pool (5.0%
market share)
Leading global FIRC franchise
Investment Bank
Leading institutional and
wholesale asset manager
CHF 737bn invested assets
- Institutional: CHF
425bn
- Wholesale: CHF
312bn
Largest fund house in Europe
Largest mutual fund manager
in Switzerland
2,797 employees located in
20 countries
Broad based product offering
Global Asset Management
1 Market capitalisation as per 01.11.20052 Financial Businesses only3 As per 2Q05
CHF 2.7 trillion invested assetsOver 70'502 employees2
CHF 125 billion market capitalization1
CHF 39.0 billion equity (to UBS shareholders)
Wealth Management
Wealth Management USA
Business Banking Switzerland
6
This is who we are...
This is who we are not...
Niche firm
Narrowly defined markets, geographies, or opportunities
Limited economies of scale Limited diversification benefits
Conglomerate
Horizontally aligned business Substantial challenges to
management resulting from complexity of operations
Focused on securing global leadership positions in:— Wealth Management— Asset Management— Investment Banking
Business Banking Switzerland to exploit economies of scale
Targeting above GDP growth businesses
Integrated model as key differentiator – "One Firm" approach
Globally focused model
Leveraging the platform for growth
7
Bank in Winterthur
Dillon Read
1997
S.G. Warburg Group
1995
Brinson Partners
1994
O’Connor & Associates
1990
1998Phillips & Drew
1986
Interhandel
1967
Eidgenössische Bank
1945
Swiss Bank Corporation
Union Bank of Switzerland
SBV
3 CH Banken
1897
Toggenburger Bank
1912
1862
1863
Basler BV
Basler Bankenkonsortium
Frankfurter BV
1872
SBG
Paine, Webber, Jackson & Curtis1942
PaineWebber Inc.1974
2000
Schröder Münchmeyer Hengst & Co.
1997
Growth through M&AOrganic growth
Reaching for the top
8
When
Principal Driver
Examples
UBS’s cumulativetotal return toshareholders relative to DJ World Bank index since 1990*
Establish the Platform Develop the Platform
Up to 2000
M&A
S.G. Warburg UBS-SBC PaineWebber
+94%
Post 2000
Organic growth
US Investment Banking European Wealth
Management FX repositioning APAC footprint Supplemented with
in-fill acquisitions
+145%
* Total Return is based on Datastream data from end of 1990 to 23 September 2005 in CHF and adjusted for stock splits. Dividends are reinvested, share buybacks reflected in the share price. UBS’s pre-1997 numbers have been combined pro forma for UBS and SBC
Two main phases in corporate development of UBS
9
RiskManagement
ITI CommunicationControlling TreasuryHuman
Resources
The integrated business model at work15–20% of market capitalization is due to the integrated business model
Global Wealth Management & Business
Banking
Global Asset Management Investment Bank
Corporate Center
Funds
NNM inflow
DerivativesResearch
Trade flows
Trade flows
Structured products Corporate finance advice
SECTION 2
Focus of UBS Group HR
11
Focus of Group HR
Facilitating integrated business model: “one firm“
Balancing HR requirements of the Group with those of the operating divisions
High potential identification and development, & senior management succession
Managing appraisal and creating a performance culture
Managing key incentive programs
Setting global recruitment standards and opening the internal labor market
Implementing common HR policies & platforms where desirable
Management of HR Shared Services & outsourcing/offshoring
12
Resourcing: Our challenges
Workforce planning & controlling
Attraction Selection Integration
Creating a robust resource planning methodology
Aligning resourcing model to strategic growth
Opening the internal labor market
Ensuring consistently high recruiting standards
Common processes and policies being developed: eg. internal sourcing policy, unified job advertising, data banks of key skills
13
Talent Development & Management Overview
UBS Strategy
Talent strategy
From M&A towards organic growth
From talent acquisition towards talent development
Talent by Acquisition
Recruiting
Identification
Selection
On-Boarding
Talent by Development
Identification
Talent Pipeline
Succession Planning
Development
Integrated Approach
14
Identification of High Potentials
Performance: Extraordinary performance track record over the last 2 years. In particular, they should have demonstrated ALL of the following competencies:
Learning agility – active in the pursuit of and engagement with feedback and alternative perspectives aimed at improving own performance & style
Mastering complexity & change – quickly assimilates complex information, deals with ambiguous situations and engages with change
Awareness of self & others (emotional intelligence) – awareness and management of self and others and ability to use this to lead
Drive and commitment – ambition, capability and determination to succeed
Working in partnership – working collaboratively, high influence,establishing relationships
Resilience and managing stress – coping mechanisms, ability to manage and reduce stress for others
Top Leadership
Talents (TLT)
GMB
High Potentials
SuccessionCandidates
Key Position
GMB SC
15
Integrated key talent management—overview
Management of Key Talents:
Succession Candidates
High Potentials
all UBS employees
“UBS Leadership Pipeline”
GMB
Key Position Holders
GMB SCs
GEB
Top
Tale
nts
Development & career review process
Identification of suitable development opportunities & career moves
Implementation of agreed development measuresAccelerated
Leadership Experience
GLE 1GLE 2GLE 3
SLC
ASF
Top Talents
GEB & GMB
Selected Succession Candidates
Key Position Holders
&
Program Target Audience
UBS Leadership Insitute Development Architecture
Mentoring
16
Leadership Institute: Group-wide ProgramsOn the top level the programs are integrated across BGs.
GEB
& GMB
KEY TALENT
Group Mentoring
Annual Strate
gic Forum
Senior Leadership Conference
Global Leadership Experience Programs
Accelerated Leadership Experience Program1
Investment Bank
Global Asset Management
Corporate Center
Wealth Management &
Business Banking
Wealth Management
USA
Note: 1 Focus on high potentials – not top leaders
17
Appraisal (PMM) – Process and Benefits
♦ provides a consistent way to define, track and measure objectives and results
♦ reinforces our corporate culture and the “one firm” approach♦ provides a common performance management architecture whilst
respecting & valuing the different businesses and business models across the Group
♦ stimulates organizational commitment♦ fosters a climate of continuous learning and professional growth
18
Global Competencies
InnovationInnovation LeadershipLeadership Planning & Organising
Planning & Organising
Business & Financial Focus
Business & Financial Focus
Communication & Impact
Communication & Impact
Developing Self (Learning)
Developing Self (Learning)
Drive & Commitment
Drive & Commitment
Judgement & Decision Making
Judgement & Decision Making
Managing & Developing
People
Managing & Developing
PeopleProblem Analysis
Problem Analysis
Quality & Continuous
Improvement
Quality & Continuous
Improvement
Resilience & Stress
Management
Resilience & Stress
Management
Strategic Perspective &
Global Awareness
Strategic Perspective &
Global Awareness
Integrating Diversity
Integrating Diversity
Professional Behaviour
Teamwork
Technical / Specialist
Knowledge
Client Focus
19
HRIT is critical COMPONENT SIGNIFICANCE FOR HR
Unified Foundation (based on Oracle / People Soft
Firmwide Performance Measure-ment and Management System
Firmwide Compensation Management System
Global Reporting Warehouse
Shared Recruiting System
Consolidated Learning Platform
Enables HR data management (this includes HR Self Service modules)
Allows cross-Business-Group 360° reviews
Supports Group Compensation Strategy
Enables comprehensive reportingand analysis
Allows firmwide job boards and shared candidate pools
Combines learning administrationand E-learning capabilities
20
Tier 0Self Service – web,IVR and knowledge
base
Potential Future HR & L Operating Model
Client EmployeeBusiness Leaders
Retained HR&L Shared Service activities
Business Group aligned activities
Key
Outsourcing/ off-shoring potential
CRM Service
s
Tier 1Simple Inquiry
and Operational
Support
Tier 2Complex
Inquiry and Operational
Support
Line Manager
Tier 3Retained SME,
policy and Exception
Management
Talent & Perf Management
HR Strategy & Mgmt Support
HR Analytics
Business Group
Compensation
Business Group Specific Prof &
Campus Recruiting
Learning
Business Group Specialists
Contract(s) Management
Service Management Organization
Contract(s) Monitoring
Regional HR & Learning Services
DiversityRecruitment
Strategy
Employee Relations(Specialist Advice, Legislative and
Compliance)
Benefits Strategy
Regional Compensation
LearningExecutive
Recruitment
Manager Recruitment
Referral Recruitment
Campus Recruitment
FA Recruit.. (WMUS)
Payroll Delivery and
Admin
Benefits Delivery & Admin
Learning Administration
Data Management
Prof (Mass) Recruitment
Prof Recruit (Non-Regular
EEs)
Employee Relations
Operational Activity
Comp Delivery & Admin
Commissions Admin (WMUS)
Recruiting Process Delivery
& Admin
Campus Recruitment
HR Reporting
Inquiry Management & Cross-functional Administration and Operational Support (ASC)
Contact Center
Performance Management
Coach/Advisor to Mgmt
People Strategy for the
business
Business Leadership
Support
Business Partners/ HR
CRMs
Learning Operating Model still to be confirmed
SECTION 3
UBS in India
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About UBS in India
Investment Banking presence in Mumbai (52 staff)
Banking license applied for– Expansion of IB activities
– Basis for growing an onshore Wealth Management Business
Indian Service Centre, Hyderabad– Both Knowledge Working & BPO
– Currently 160 staff in IT Production, IB Analytics and IB documentation
– Estimate 500+ staff by end 06; scaleable 2000+
– Managed Services Model (SLA‘s) or offshore Extension Model
23
Recruitment challenge in India
Sources Deployment
Competitors + Knowledge working ISC
IIM Global recruitment / KPO ISC
IIT
Other universities KPO/BPO/ISC
Local colleges BPO
+ MBA, M. Com / B. Com, CA/CFA, B. Eng
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Key Elements of talent management strategy for India
Intensive marketing effort to target academic institutions
Reinforcement of UBS brand
Emphasis on selection testing/high entry standards
UQ + total fixed pay
KPI based appraisal
Significant variable pay driven off KPI‘s
Formal job descriptions, KPI‘s and competency framework
Competency based career development model
Career opportunities in India and elsewhere
Part of UBS family/offshore management involvement
Effective employee communication
25
Sample Job Description: Analyst
Statement of purpose: To support the Investment Banker / Onshore Analyst in preparing pitches / presentations to clients by conducting research within clearly laid-out formats and structure, in areas such as Healthcare, Technology and M&A.
Job Description
• Broad components of the role– Create sector and company analysis for various comparable data – Summarise developments in clearly identified topics for the companies /
sectors identified – Update comparables / profiles on a continuous basis for the companies – Create a short profile (1-3 page), long profile (8-10 pages) or specific
components of a pitch book
26
KPI’s: Analyst
Managers
Feedback from onshore banker / analysts
Quantity of work in terms of number of profiles
Quality in terms of number of and type of revisions
Attitude – flexibility, helping others, stretching, …
Competency enhancement
Manager’s feedback
Analyst
• Feedback from onshore banker / analyst
• Throughput in terms of number of profiles
• Utilization• Manager’s feedback• Peer feedback• Process improvement
suggestions
KPIs
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KPI Weighting: Analyst Example only
Eventual KPIs
Srl Description Weight
Client Feedback Direct structured feedback from onshore analysts / bankers for each deliverable A surrogate could be the buddy gives feedback for each deliverable (Accuracy of Information: Thoroughness / Innovation, Adherence to instructions, Communication, Attention to detail)
2 Weighted average number of profiles completed 15%
4 Manager’s feedback primarily on attitude & flexibility 10%
6 Competency enhancement 5%
5 Peer Feedback 20%
1 40%
3 Number of errors: omissions and mistakes 10%
Bonus computation
28
Competencies: Analyst
Personality traits (PT) and CompetenciesManagers
PT– Number oriented
– Detail oriented
– Curiosity
– Drive & commitment
– Hard working
Competencies– Ability to work on comparables and
valuation
– Ability to communicate well with the onshore analyst
– Plan work and time well
– Be flexible and work to client schedules
– Be a good team player
Analyst
• PT• Number oriented• Systematic• High intellect
• Competencies• Oral and written
communication skills• Analytical skills• Be a good team player
29
Training & Development
UBS/ ISC
overview
UBS/ISC
Culture
UBS Values
Policies & Procedures
ISC Level/ Vertical Level Exposure
UBS Leadership Institute
Refresher on UBS
Customer service
Language & communication
Culture
Team work
Change
Management
People : Leadership Foundation program
UBS Policies Implementation
Interviewer Certification program
Operations Management
Process based
Need based
Team, Cross functional and Operations management
Interviewer Certification Program
Six sigma Green belt
Project based
Need based
Stepping up to Leadership
Project management
Interviewer Certification programNew hire
Orientation
Trainees/ Entrants to New domain
Team LeadManagers
Operations Mngr
Vertical heads
New Joinees
Agents
First time leaders
Managers
Extended Leadership team
Leadership Team
(Cross) Cultural Training- mandatory for all levels:
1. Level One for the first 3 groups and
2. Level Two for the rest- based on specific need
SECTION 4
Challenges
31
Challenges to success in India
Global/local interface– Governance
– Management via SLA‘s
– Effective delegation
– Managing matrices
Local Labor Market– Competition for key skills
– Indian campus recruitment methodology (Day zero etc.)
– Cost inflation – the y-o-y increases can shock any overseas client! (despite the denominator)
– Language skills
– Avoiding over recruitment
– Attrition
32
Challenges to success in India (cont.)
Culture– Anglo Saxon Individualism vs Indian collectivism
– Meritocracy vs Hierarchy
– Individual accountability vs group loyalty
– Explicit communication: conflict and disagreement are acceptable
– Different concepts of time
– Documentation & approval mechanisms (contract based rather than relationship based)
Politico/Economic– Infrastructure (although lots happening)
– Legal system (slow)
– Data Security (are concerns valid?)
– Lack of awareness of India Inc.
33
A sustainable strategy…
Market growth requires innovative resourcing strategy
Parallel ramp-ups by new players can spike attrition– Yes, to some extent it is inevitable; but ‘no poach’ clauses are not the solution
Need concerted effort to INCREASE the employable pool (as differentiated from the available pool).– next slide illustration
This is possible by using advanced Assessment & Testing tools; and – building robust Internal Training Engines
– Industry-initiatives to bring up Graduate pool to required employable standards
– Catch ‘em Young- introducing domain or vocation courses into mainstream education curriculum (this has already been done by technology players, and it is time for the Knowledge players to do the same)
34
An Illustration of Expanding the pool
0%
20%
40%
60%
80%
100%
KPOSkills
BPOSkills
CRM
Direct Reject
Indirect Fit
Direct Fit
0%
20%
40%
60%
80%
100%
KPO Skills BPO Skills CRM
Reject
Direct Fit
Trainable Pool
35
An Illustration of Expanding the pool and Keeping costs low
1
2
3
Laterals- Direct Exp
Freshers/No Domain Exposure
70%
50%
20%
0%
20%
50%
30%
30%
30%
Laterals- Related ExpRecruitment Wave
SECTION 5
Conclusions
37
Conclusions
UBS is committed to India and sees huge opportunities
UBS‘ challenges are India‘s challenges
NASSCOM has key role particularly in relation to standards and training
Questions