Estonia April 2005

Estonia April 2005PARE

Estonia April 2005

HUMAN RESOURCES

? RETURN ON INVESTMENT

-

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- Key HR Business Partner Competencies

- Employee Engagement

- Is all of it visible ?

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ABN AMRO Bank

Global Human Resources Competency Global Human Resources Competency ModelModel

Building Organisational Excellence through People

The Global HR Competency ModelThe Global HR Competency Model

ENABLING THE VISION

- Championing Change- Acting With Empathy- Building Capability

DELIVERING VALUE- Focusing on Results- Acting Courageously- Winning Commitment- Holding Others Accountable

PARTNERING WITH THE BUSINESS

- Focusing on Client Service- Applying Organisational Understanding- Collaborating with Colleagues

CREATING SHAREHOLDER

VALUE

CREATING SHAREHOLDER

VALUE

SHAPING SOLUTIONS

- Thinking Powerfully- Digging for Information- Taking the Initiative


“Partnering with the business” arises from a deep-seated concern to add value to clients in the business. This calls for understanding of the critical forces that shape clients’ needs, both stated and unexpressed, and is demonstrated through taking action to pre-empt and respond to these needs in order to provide exceptional client service. The effectiveness of these actions is maximised through a considered choice of approach and the application of a profound understanding of the way in which the organisation operates. Maximum value is delivered to the Bank through ensuring that others are kept informed, synergies are harnessed and cross-business working is encouraged.

Partnering with the Business

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- Focusing on Client Service

- Applying Organisational Understanding

Concentrating one’s efforts on uncovering and meeting client needs

Cultivating and using a deep understanding of the way that organisations function to maximise effectiveness and efficiency


- Collaborating with Colleagues

Working co-operatively with others to maximise group effectiveness, achieve optimum performance and minimise duplication of effort

Focusing on Client Service

Concentrating one’s efforts on uncovering and meeting client needs

Level 1:Understands Client and

Responds to Stated Needs

Level 2:Suggests Fitting Solutions

Level 3:Addresses Underlying Needs

(Differentiating)

Level 4:Acts as Trusted

Partner

Indicators- Builds awareness of the client’s business area to understand current issues- Reacts in a timely fashion to the client’s stated needs- Initiates frequent contact with the client with the aim of providing a better service- Shows concern to meet client expectations and seeks relevant feedback

Indicators- Goes beyond the immediate task to consider how HR can add value to the client- Suggests calling on outside sources of assistance (e.g. consultants or colleagues from other areas) to ensure that the client’s needs are fully met- Recommends contracting with the client to ensure that consistent high quality service is provided that meets needs- Is not constrained by established procedures; works to find the best approach for the client in their situation

Indicators- Does not stop at the client’s stated needs but seeks to uncover their underlying requirements- Adopts a solutions-based approach to address client issues (i.e. rather than a product-based approach)- Initiates diagnostic research to unearth the root causes of the client’s issue- Identifies new solutions to add value to the client and works persistently to win commitment to such recommendations- Takes steps to anticipate likely future client needs

Indicators- Looks for long-term benefits to the client and adjusts approach accordingly even if there is a cost to HR (eg: recommends new approach requiring less HR support)- Makes a critical contribution to clients’ decision-making processes and is seen as a valued source of advice- Acts as a coach to client contacts, working with them to heighten mutual understanding of how HR can work most effectively alongside the business

Contra Indicators

- Adopts a inflexible and unresponsive attitude to client requests- Shows little or no understanding of the client’s business- Does not attempt to add value to the client

- Fails to meet client deadlines- Does not attempt to forge good working relationships with the client- Overpromises and underdelivers


“Shaping Solutions” is characterised by a well-developed ability to create and shape valuable solutions for the business. This is done in a flexible and pragmatic way, by thinking and acting decisively. The thinking processes that underpin this ability are business-focused and flexible, serving not as an intellectual end in themselves, but rather as a means to shed new light on situations. Such thinking is applied to shape possible courses of action, and to bring insight, interpretation and clarity to issues which are often complex and ambiguous. This insight is made more powerful through the application of relevant information gathered from within and outside the Bank. This cluster calls for a far-sighted view, looking for future opportunities, whilst at the same time acting responsively to current issues.

Shaping Solutions


- Thinking Powerfully

-Digging for Information

Applying reasoning, that will often be based on experience and/or learning, to understand, clarify and act upon situations encountered

Scanning the internal and external environment to gather and share business, commercial and professional insights that can be applied to deliver organisational benefits


- Taking the Initiative

Taking decisive action to capitalise on opportunities or overcome problems, which range from the immediate to the longer-term


“Enabling the Vision” is demonstrated through a concern to facilitate organisational development and transformation. This involves playing a key role in advocating and driving change, building commitment to it and putting in place the framework which allows the creation of future value. This also calls for understanding of the underlying reasons shaping others’ behaviour and the application of this knowledge to mould interactions and relationships so as to convey messages in the most compelling fashion. A final ingredient is a long-term view of the capability required within HR and the Bank as a whole, harnessed to ensure that any anticipated gaps are filled and to maximise the professional development of others.

Enabling the Vision


- Championing Change

- Acting with Empathy

Acting as a catalyst for organisational transformation by building momentum, and creating the infrastructure for lasting change

Demonstrating appreciation of the diverse perspectives, needs and concerns of individuals and using this to shape effective working relationships


- Building Capability

Fostering others’ long-term development in line with individual priorities and the future needs of ABN AMRO


The desire to deliver enhanced business performance and shareholder value lies at the heart of the “Delivering Value” cluster. This is exemplified through a clear, commercial and focused desire for results. It calls for professional self-belief and credibility in the eyes of others, which is built by demonstrating sound and reasoned judgement, conviction and integrity. It calls for the considered deployment of a range of influencing styles, used to bring others from across the business together in pursuit of value-driven goals. The ability to work with and through others effectively (from within and outside the Bank) is crucial; setting clear accountabilities and standards and ensuring delivery against these is an important element for success.

Delivering Value


- Focusing on Results

- Acting Courageously

Setting and working to exceed challenging and measurable goals that are clearly aligned with ABN AMRO strategy

Consistently demonstrating belief in one’s own capability and judgement, even when in unfamiliar environments or when confronted with powerful opposition


- Winning Commitment

- Holding Others Accountable

Applying those influencing techniques that gain the necessary commitment and support from others

Setting clear accountabilities and ensuring that others deliver against these

Competency Analysis

Development Planning

HR Development Programme (PC NGM)HR Development Programme (PC NGM)Example Summary Report

HR Professional Name: Simon Taylor Manager Name: Annemieke van Gaalen

Competencies identified for Competencies identified for development focus by HR Professional development focus by HR Professional in completing the HR development in completing the HR development workbook: workbook: 1: 1: Digging for InformationDigging for Information (Strength) (Strength)2: 2: Collaborating with ColleaguesCollaborating with Colleagues (Development Need 1)(Development Need 1)3: 3: Winning CommitmentWinning Commitment (Development Need 2)(Development Need 2)

Competencies identified for development Competencies identified for development focus by Manager in reviewing alternative focus by Manager in reviewing alternative sources of performance data:sources of performance data:1: 1: Thinking PowerfullyThinking Powerfully (Strength) (Strength)2: 2: Winning CommitmentWinning Commitment (Development (Development Need 1)Need 1)3: 3: Collaborating with ColleaguesCollaborating with Colleagues (Development Need 2)(Development Need 2)

Competencies agreed for development focus at progress review meeting:1: Thinking PowerfullyThinking Powerfully (Strength)2: Collaborating with ColleaguesCollaborating with Colleagues (Development Need 1)3: Winning CommitmentWinning Commitment (Development Need 2)

Reasons for discrepancies (if any):Reasons for discrepancies (if any): We consider ‘Digging for Information’ and ‘Thinking Powerfully’ to be my key strengths. When considering We consider ‘Digging for Information’ and ‘Thinking Powerfully’ to be my key strengths. When considering these strengths in the context of my development needs, however, we decided that we should focus my energy on developing my thinking skills these strengths in the context of my development needs, however, we decided that we should focus my energy on developing my thinking skills further and making use of them to add value to my team, and bring others around to my way of thinking.further and making use of them to add value to my team, and bring others around to my way of thinking.

Development Objectives agreedDevelopment Objectives agreed (including proposed (including proposed timescales)timescales)Competency 1:Competency 1: By the end of June 2003 design a best practice By the end of June 2003 design a best practice recruitment skills training programme framework for use recruitment skills training programme framework for use within BU.within BU.Competency 2: Competency 2: By the end of March 2003 identify each By the end of March 2003 identify each function’s current recruitment skills training practices (if function’s current recruitment skills training practices (if any) and likely future requirements, and obtain suggestions any) and likely future requirements, and obtain suggestions for a recruitment skills training programme framework.for a recruitment skills training programme framework.Competency 3: Competency 3: By the end of December 2003 ensure that at By the end of December 2003 ensure that at least 2 functions/departments have made use of the best least 2 functions/departments have made use of the best practice recruitment skills training programme framework practice recruitment skills training programme framework designed.designed.

Development Actions agreedDevelopment Actions agreedCompetency 1:Competency 1: Benchmark current practices against those used in comparable Benchmark current practices against those used in comparable organisations/our competitors, conduct an up-to-date literature review on best organisations/our competitors, conduct an up-to-date literature review on best practice recruitment/skills training and its business benefits.practice recruitment/skills training and its business benefits.Competency 2:Competency 2: Identify and meet with key stakeholders, recruitment/training Identify and meet with key stakeholders, recruitment/training specialists and representative line managers in each function; identify current specialists and representative line managers in each function; identify current recruitment skills training practices, previous experiences, likely future recruitment skills training practices, previous experiences, likely future requirements and suggestions.requirements and suggestions. Competency 3:Competency 3: Obtain senior management sponsorship for process, obtain Obtain senior management sponsorship for process, obtain feedback from key stakeholders, recruitment/training specialists and feedback from key stakeholders, recruitment/training specialists and representative line managers in each function/department on the framework representative line managers in each function/department on the framework produced and make associated changes, develop a produced and make associated changes, develop a communication/implementation plan, identify target departments.communication/implementation plan, identify target departments.

Please complete this Summary Report and return it to Emma Pollard ([email protected]) by 15 November 2002.


Your Views, Our Future

Employee Engagement Programme

- What is employee engagement at ABN AMRO - How employee engagement contributes to value creation for the organisation


“Commitment to the job and the company; intention to act

in the best interest of the company and willingness to invest

discretionary effort in meeting the organisation’s business

goals”

What is employee engagement at ABN AMRO ?


To support the achievement of our strategy

- Proven link between employee engagement, customer satisfaction and financial performance - Aligning people processes with our Corporate Values and Business Principles - Increasing number of rating agencies use employees’ opinion to rate organisational performance

Why does ABN AMRO measure employee engagement ?


Who measures employee engagement ?

- The majority of global banks measure engagement using a consistent global process

Citigroup, Wells Fargo, Fleet Boston, Lloyds TSB, Barclays, RBS, Nordea, J P Morgan Chase

- High performing companies tend to measure engagement Shell, Unilever, Merck, AstraZeneca, Nokia, Vanguard

- Employee attitude data is regularly communicated to investors and analysts

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Stage 1

Stage 2

Stage 3

Glad to come into work each day and do this

job

Happy to be doing this job at this company

Motivated to go above and beyond the call of duty for this

company

EMPLOYEE SATISFACTION

EMPLOYEE ENGAGEMENT

Work Experiences

Supervision

Working Relationships

Training and development

Working conditions

Organisational Functioning

Strategic direction

Leadership

Company image

Communication

Customer focus

The difference between satisfaction and engagement

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Cognitive

THINK

Support for goalsand values of organisation

Affective

FEEL

Emotionalattachment toorganisation

Behavioural

Willingness to strive

ACT

Intentional

Reluctance to leave

STAY

Employee Engagement at ABN AMRO

PAREFinding out what drives Employee Engagement

Leadership

Vision, Values & Business Principles

Decision-making & Accountability

Talent-Management & Personal Development

Empowerment & Innovation

Communication

Customer focus

Competitiveness

Resources.

Cooperation.

Work-Life Balance

Rewards

Managing People & Performance

PARE Details of the categories:

1 – Leadership: refers to the way BU Leadership is perceived, whether

they are effective leaders, how effective they communicate, and the degree

to which they are seen to show empathy.

2 – Vision, Values & Business Principles: refers to the clarity of Senior

Management’s Vision, the consistency of actions with the ABN AMRO

Business Principles, fairness of management towards employees and the

organisation’s reputation and social responsibility.

3 – Decision-making & Accountability: refers to the way people perceive

decision-making to take place and the level of accountability as they

experience it in their environment.

4 – Talent-Management & Personal Development: refers to training,

personal development/growth and career advancement opportunities, as

well as perceptions of ABN AMRO’s ability to recruit, develop and retain

talent.

5 – Empowerment & Innovation: refers to people’s perceived involvement

in decisions and the climate of openness, trust and challenge that exists.

6 – Communication: refers to the availability of information, knowledge of

department/BU objectives and ABN AMRO’s values and business

principles, the quality of top-down communications.

7 – Customer focus: refers to the importance given to the servicing of

internal and external customers, as well as the flexibility and information

given to the employee to be able to do so.

8 – Competitiveness: refers to the perceived quality of

products and services, innovation, professionalism and speed

of response to the market, when compared to competitors,

and its perceived external image amongst peers.

9 – Resources: measures to what degree people feel they

have access to the resources they need, such as working

environment, computer systems and applications, information

to do their job.

10 – Cooperation: refers to cooperation at the department,

BU and ABN AMRO level, as well as knowledge sharing

within and between BU’s.

11 – Work-Life Balance: refers to the pressure as

experienced in the job, as well as a suitable work-life balance.

12 – Rewards: refers to the fairness of pay compared to

other staff and to similar organisations, whether benefits

meets one’s needs, matching pay to performance.

13 –Managing People & Performance: refers to one’s

manager’s ability to communicate, strengthen teamwork,

provide good feedback on performance and coach, as well as

local level leadership style.

14 -Engagement index: includes 13 questions that refer to

the individual’s belief in the goals and values of the

organisation, their sense of pride, willingness to go the extra

mile and intention to stay with the Bank.

PARE Importance of Employee Engagement

Engagement

Sales

OperatingEfficiency

CustomerLoyalty

CustomerSatisfaction

EmployeeTurnover

-.49

.27

.19

.18

.35

* This data is derived from a series of other ISR clients (‘case studies’), but it does not include ABN AMRO data

PARE Service-Profit Chain: Guiding Theoretical Framework

Internal Stakeholder

s

External Stakeholder

s

Business Performance

Employee Opinion

Staff Turnover

Absenteeism

Customer Satisfaction

Customer Retention

Company Brand/Image

Sales Versus Target

Profitability

Efficiency

The Service-Profit Chain posits a chain of effects running from employee opinions to customer satisfaction to business performance.

What are the links for ABN AMRO?

Examples:

PARE Benefit of Linkage Research In Practice

Similar to finding the key drivers of employee engagement, linkage analysis identifies the areas where focused attention will have the greatest impact on business performance.

Employee Opinion

Key Drivers of Engagement

Linkage Analysis

Priority Areas

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Some of the links ABN AMRO has already been able to identify

A research carried out in 2003 and in partnership with ISR Research

showed that a 2% difference in employee opinion led to :

• a 14% difference in customer opinion

• a 49% difference in chances to exceed sales vs. targets

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Employee Opinion

Customer Opinion

Sales vs. Target

Turnover

Key Predictors: Ethics & Integrity Empowerment & Innovation Engagement: Stay Engagement: Feel Engagement: Act

Key Predictors: Communication Rewards Engagement: Act Work-Life Balance

Key Predictors: Communication Engagement: Act Engagement: Think

Which components of employee opinion……


It is hard to measure

and the

invisible savings

? ? ?

Estonia April 2005

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