Driving D&I Through Technology and Metrics First Horizon … · 2017-08-09 · Senior HR Leaders...

Diversity Best Practices Follow @NxtGenDiversity at the #DBPMC + join the game-changing diversity and inclusion conversation!

Driving D&I Through Technology and MetricsFirst Horizon National Corporation

David Popwell, President & COO

Diversity Best Practices Follow @NxtGenDiversity at the #DBPMC + join the game-changing diversity and inclusion conversation!2

First Horizon at a Glance

• First Horizon National Corporation,

NYSE: FHN, 153 years

• Headquarters: Memphis, Tennessee

• 4,300 Employees

• 168 Bank Locations; 28 FTN Financial

Offices

• 32nd largest publicly traded BHC in U.S.

• ~$29B of assets, ~$23B of Deposits

• Culture based on Blue ChipsData as of 06.30.2017

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National Industry Recognition Culture, Workplace, Diversity & Inclusion


Moneyball: The Art of Winning an Unfair Game

“People in both fields

operate with beliefs and

biases. To the extent you

can eliminate both and

replace them with data, you

gain a clear advantage.”

Billy Beane, Moneyball: The Art of Winning an Unfair Game, Michael Lewis


Moneyball: The Enlightenment

The Science of Winning an Unfair Game

Traditional Teams

(Circa 1876)Data Focused

“If you compete

with someone who

can outspend you 5

to 1, if you play the

game the same way

– you will lose!”


Diversity Best Practices Follow @DBP_News at the #DBPMC + join the game-changing diversity and inclusion conversation!

Bank

FTB

Super Regional

Money Center

Asset Size

$29B

7X

75X

Est. Marketing

Spend1

$16M

12X

113X

Est. Technology

Budget

$56M

8X

160X

Total Number of

Offices2

168

8X

27X

States of Operation2

7

2X

5X

1Data Source: SNL as of 2013, 2Data Source: SNL as of 2016 year-end

First Tennessee Bank: The Art of Winning an Unfair Game


Winning an Unfair Game

• Phoenix-Hecht Treasury Management Client Experience

• CONSISTENTLY RECEIVES “STRAIGHT A” MARKS

• Greenwich Business Banking Awards

• 42 AWARDS OVER TWO YEARS

• Retail Banking Customer Service Recognition

• TOP 5 RANKING LAST TWO YEARS


Key Takeaways• Diversity executive reports to executive business leader

• FHN uses a 360-degree approach to diversity and inclusion

• Leader and customer input is critical

• Strategically hiring diversifies customer facing roles

• Market data drives customer acquisition strategies

• Vendor diversity reporting ahead of peers

• Staffing maps and talent pipelines mirror business tactics

• De-averaging data prioritizes decisions

8


Diversity & Inclusion Begins at the Top

To create a corporate culture that

promotes, maintains and

sustains a diverse and inclusive

work environment where every

employee is valued, respected,

empowered and enabled to use

their skills and abilities for the

betterment of our employees, our

company, our customers and our

communities.

D. Bryan Jordan, Chairman, President & CEO

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Regional Bank Organizational Structure

Data as of 03.31.2017

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D. Bryan Jordan

President & CEO

Chief HR Officer

David Popwell

Bank President & COO

Regional Market

Presidents

Consumer Products

Consumer Delivery

Lynne Walker

Director of Affinity Strategy

Specialty Lines of Business

Consumer Lending

Core C&I Banking


Evolution of D&I at FTB: A Culture of Learning

11


360-Degree Strategy: Diversity + Affinity = Inclusion

WORKFORCE:Increasing, developing, and

promoting multicultural talent

WORKPLACE:Embedding into the fabric of

our culture

MARKETPLACE:Acquiring multicultural

customers, vendors, and community partners

12

Affinity Strategy

Inclusion & Diversity Council

Marketing

Compliance

Customers

HRHuman Capital

Management

Procurement

Pubic Relations

Data Analytics


Senior HR Leaders who believe they are getting significant returns

on analytics investments2

Challenges with D&I Data

1CEB 2013, Business Barometer, N=1,590, 2CEB 2013, Analytics Survey, n=108, 3CEB 2013, Global Labor Market Survey, N=9,528, 4CEB 2013, HR Survey, n=108

Senior Business Leaders who believe HR analytics has led to a change in

business decisions in the past year1

Agree

15%

Agree

8%

13

Senior HR Leaders who believe staff who conduct talent analytics

understand the operations of the business4

Business Leaders who believe staff who conduct talent analytics

understand the business3

Agree

19%Agree

24%

• Organizations not

yet realizing value

from analytics

• Few business

leaders have data

and analytics

support

• Poor understanding


FHN Faced Challenges with D&I Data

• Data “siloed” in HR

• Inconsistent reporting periods

• Need to “tick and tie”

• Trend analysis and insights needed to build strategies

• Manual pulls and reports

• Limited visibility and distribution

• Lack of leader input

• No action or accountability required by leaders

• Averaging vs. de-averaging

14


55%75%

15%

• 7 active ERGs, 12

chapters, 5 markets

• 20% employee

participation as of

year-end 2016

Traditional D&I Data Tracked

15

ERG Growth in 2016 vs. 2015ELP Overall Graduate

Retention RateDiverse Mentoring Matches

• 95 graduates in 4

classes since 2010

• 4 action learning

projects will be in

production in 2017

• 205 corporate

mentoring

relationships in 2016

• 10% YoY growth


Metrics: Diversity Staffing Maps• Various Race/Gender/Generation Cuts by Leader:

• Overall

• Position

• Salary grade

• Hiring trends

• Customer market

• Inclusion Deficiencies

• Talent Movement Report (hired, promoted, terminated)

• Inclusion Report (open positions, interviewed, hired)

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Female of Color

22%

Male of Color9%

White Male34%

White Female

34%

Female of Color

20%

Male of Color11%

White Male31%

White Female

38%

Annual Trends Reveal Leader Impact

Race/Gender by Sample Leader 2016Race/Gender by Sample Leader 2015

Total staff at

higher vs. lower

levels are 51%

Female or

People of Color

17

• People of Color: African American, Hispanic, Asian, Native Hawaiian, Other

Pacific Islander, American Indian, Alaskan Native, and two or more races.


Salary Levels Show Equity or Disparity

18

Level 2: Senior

Managers &

Professionals

Level 3: Managers

& Professionals

Level 4: Entry

Level Managers &

Support

Salary Level White Male White Female Males of Color Females of Color

Sample Leader: Strong representation for Women

and People of Color in lower levels vs. higher levels


De-averaging Allows for a More Focused View

Sample Leader’s

direct line lacks

diversity

• Maps are utilized as

tools for hiring decisions

Sample Leader’s

direct report

displays inclusion

Direct Line Leader 1 Leader 2 Leader 3 Leader 4

19


Level 1: Executives

Level 2: Senior

Managers &

Professionals

Level 3: Managers &

Professionals

Level 4: Entry Level

Managers & Support

Maps Depict Challenges Across Salary Levels

20

Salary Level Event

Current Year

Prior Year

Current Year

Prior Year

Current Year

Prior Year

Current Year

Prior Year

Sample Leader:

Challenges exist

with diversity in

higher salary

levels


• Talent “scouting”

• Talent pipeline

• Recruiting events targeting diverse candidates

• Key hires & promotions

• Strategic Hire program

• Leader competition

• Lunch with a Leader

Data Outcomes

21


1

1

1

2

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

- 1 2 3 4 5

Leader 10

Leader 9

Leader 8

Leader 7

Leader 6

Leader 5

Leader 4

Leader 3

Leader 2

Leader 1

2

2

2

2

3

2

1

2

2

1

1

3

1

2

1

4

1

2

1

3

1

3

1

2

- 1 2 3 4 5 6 7

Leader 10

Leader 9

Leader 8

Leader 7

Leader 6

Leader 5

Leader 4

Leader 3

Leader 2

Leader 1

The Rooney RuleInterviewed Hired

Example: Sample Leader 7 hired 3 employees:

• 1 White Male

• 1 Female of Color

• 1 Male of Color

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Example: Sample Leader 7: 3 open positions, 5

people interviewed:

• 1 White Male

• 2 Females of Color

• 2 Males of Color


0%

10%

20%

30%

40%

50%

60%

70%

80%

2014 2015 2016

White Males Women & People of Color

It’s All Relative

Beware: Selective comparisons

can give a false sense of success

Name Ethnicity Gender Job Title

Employee White Male Job Title



Employee Black or African American Female Job Title


Employee Black or African American Female Job Title


Employee White Female Job Title


Employee Hispanic or Latino Male Job Title

Hires, Promotions, & Career Movement,

Top 3 Salary Levels

Italics: Promotion, Bold: Women & People of Color

Snapshot of Key Hires & Promotions

Trend analysis tracks

progress in key areas

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Strategic Hiring: Creating Opportunities to Close Gaps

Source Transferable Skillsets

Tailor Training, Coaching, and Mentoring for Success

New Role

Wealth Advisor Business Banker

Financial Center Manager

Private Client Banker

Sr. Business Banker

Specialty Lender

Affinity Marketplace Manager

Specialty Lender

Financial Analyst

Financial Center Manager

Business Banker

Credit Analyst

Non-traditional Lending

Manufacturing Sales Rep

Former Role

24

Credit Analyst to BankerTBD

Credit Analyst to BankerTBD

• 10 Positions

Approved

• 7 Hired

• 1 Terminated

• 2 In Process

• Several in Pipeline

Within 10 Months:


Data Trends Reveal Decision Impacts

25

Region 1 Region 3

8% 7%

50% 49%

27%25%

15% 19%

0%

20%

40%

60%

80%

100%

120%

3Q 2015 1Q 2017

Region 2

6% 7%

12% 14%

54% 46%

28% 33%

0%

20%

40%

60%

80%

100%

120%

3Q 2015 1Q 2017

3% 5%

15% 11%

43% 50%

39% 34%

0%

20%

40%

60%

80%

100%

120%

3Q 2015 1Q 2017


Customer, Vendor, & Community Strategies Utilize Data

26

Executive Conversations with Customers & Key Consultants

African-American RoundtableMulti-Cultural Customer

Expansion

Women & Wealth Executive Steering Committee with

Industry ExpertsWomen & Wealth Strategy

Young Professionals Roundtable

Future Young Professional Strategy

Supplier DiversityReporting, Sourcing

Database, & Local Market Spend

Community, Government Relations, & Social

ResponsibilityD&I Marketing & PR Strategy


Leveraging Data Moves Spend Needle

• Spend Percent• Minority-Owned

• Women-Owned

• Other (Veterans, Small Business, Etc.)

• Spend Composition• Construction & Furniture

• Other

• Count of Tier 1 & Tier 2 Vendors

• Cost of Diversity

• RFP’s• Performed

• Qualified Diverse Vendors

• Diverse Vendors Responding

• Awarded

• Vendor database purchased to

identify diverse vendors

• Market local sourcing for select

categories has been created

Vendor Metrics Tracked

0%

2%

4%

6%

8%

10%

12%

14%

2014 2015 2016 1Q 2017

Diversity

spend has

more than

doubled

from Q1 ‘15

to Q1 ’17

27


$- $4.00 $8.00 $12.00

Closed

Pipeline

$ in MillionsData as of 08.01.2016 to 06.30.2017, *www.businessinsider.com/women-now-control-more-than-half-of-us-personal-wealth-2015-4 , **www.businessinsider.com/women-now-control-more-than-half-

of-us-personal-wealth-2015-4 , ***www.forbes.com/sites/bridgetbrennan/2017/01/31/why-has-womens-economic-power-surged-five-stats-you-need-to-know/#611b1a6c9562

Women & Wealth: Engage, Empower, Enrich

Data Strategy Results

2 soft launch markets are

showing closed business results

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The Future of Data• Constant evolution

• Automate report creation

• Easier access for leaders

• Integration of customer data

Leveraging data to create a long-term, sustainable plan

Awareness & Engagement2016

Accountability & Results2017 Expansion2018 Sustainability2019+

360-degree:Workforce, Workplace, Marketplace

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Key Takeaways

30

• Diversity executive reports to executive

business leader

• FHN uses a 360-degree approach to diversity

and inclusion

• Leader and customer input is critical

• Strategically hiring diversifies customer facing roles

• Market data drives customer acquisition strategies

• Vendor diversity reporting ahead of peers

• Staffing maps and talent pipelines mirror business

tactics

• De-averaging data prioritizes decisions

“People in both fields

operate with beliefs

and biases. To the

extent you can

eliminate both and

replace them with

data, you gain a clear

advantage.”



31

Driving D&I Through Technology and Metrics First Horizon … · 2017-08-09 · Senior HR Leaders...

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