Ernst & Young HR Leading Practices Jeddah – Jan 2008
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Agenda • Introduction to E&Y • Recent HR Initiatives • Q&A
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Ernst & Young An Overview
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About Ernst & Young … cont’d
Ernst & Young - Who Are We 110,000 professionals in 132 countries world-wide…... §
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Leading Global Firm All our offices and people, wherever they are located, practice under common professional, ethical and independence standards. We utilize common methodologies that integrate risk analysis and business analysis with statistical techniques and computer tools.
Best People Highly experienced subject-matterexperts who will participate as members of our core team.
Best Practice Recognized as a leading professional services provider with supporting methodologies and tools
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USA / Canada § 110 Offices § 39,000 People
Europe § 350 Offices § 35 Countries § 46,000 People
CIS § 19 Offices § 8 Countries § 2,300 People
Far East / Pacific § 76 Offices § 15 Countries § 15,200 People
Middle East § 18 Offices § 13 Countries § 3,300 People Central /South America § 64 Offices § 26 Countries § 8,000 People
Africa § 52 Offices § 29 Countries § 3,800 People
India Sub § 20 Offices § 3 Countries § 3,200 People Australia / NZ § 15 Offices § 4,800 People
About Ernst & Young Middle East
Ernst & Young - Who Are We §
The Middle East practice is an independent professional firm, which has been present in the region since 1923 and is a member firm of Ernst & Young Consulting International. During the last 79 years, the firm has evolved to meet the developments within the area and today our clients are served by over 3,000 professionals, out of 18 offices in 13 countries in the Middle East. 1. Baghdad 1923
10. Riyadh 1968
2. Bahrain 1928
11. Al Khobar 1969
3. Beirut 1947
12. Sana’a 1971
4. Doha 1950
13. Muscat 1974
5. Kuwait 1952
14. Sharjah 1974
6. Amman 1953
15. Cairo 1985
7. Abu Dhabi 1966
16. Ramallah 1994
8. Dubai 1966
17. Damascus
9. Jeddah 1967
18. Libya 2007
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Ernst & Young - Who Are We O u r S tra teg y… C le ar, a r, F oc us ed B ra n d
S trate g ic O b je c tive
R e l a tio n sh ip s
M a rke t Le ade rsh ip
P E O P L E
S ha re
Q U A L I T Y
G R O W T H
EXECUTION
T hree S trate g ic D rive rs
EXECUTION
R e pu ta ti on
O PE RAT IO NAL E XC EL LE NC E AC C O UNT -CE NT RIC IT Y S HARE D V AL UE S G LO BA L MI ND SE T
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T hree F o und atio nal E lem e nts
Ernst & Young Structure Assurance
TAX
Business Advisory Services Privatization and Restructuring Transaction Advisory Services Technology and Security Risk Services Fraud Investigation and Dispute Services Business Management Advisory Services
Technology Enablement
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Business Improvement
Program Assurance
Finance Functions
Human Capital Services
Performance / Reward
People Strategy
• • • • •
• HR Strategy Articulation • Organization Design • Job Evaluation & Grading
Compensation & Reward Performance Measurement & appraisal Competency & Assessment Centers Training Development Plans HR Policies & Procedures
Ernst & Young Structure Assurance
TAX
Business Advisory Services
Service Lines
Privatization and Restructuring Transaction Advisory Services
Sub Service Lines
tr a tio
n
Technology and Security Risk Services
Ill us
Oil and Gas
Transpor tation
J e d d a h
Human Resources
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Fraud Investigation and Dispute Services Business Management Advisory Services
Financial Services
K h o b a r
R i y a d h
Legal
Governm ent
A m m a n
Health Care
D u b a i
Marketing
M u s c a t
Real Estate
K u w a i t
D o h a
Finance & Acct
Islamic banking
B a h r a i n
Family Business
C a i r o
Risk & Quality
Industries
Geographies
Support
HR Practices Recent Initiatives
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E&Y Recent HR Initiatives Rank Harmonization Competency Framework Accelerated Leadership Plan
EYLeads
Recruiting Incentive
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Personal Learning and Develop Program
Work Smart
Reward and Compensati on
Counseling
SMDC PAC
&
360 Evaluation
EMDC
New Graduate Program
Balance Score Card
Employee Satisfaction Survey
Rank Harmonisation
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Introduction The project 18 global ranks Introduced from 30 June 07 Definition of ranks
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Project Overview – the drivers for change Our clients think and act globally The need for a global mindset Harmonised rank definitions, across borders, are needed to: • drive the consistent standards that will support our promise of providing seamless, consistent, high-quality client service, worldwide; • mobilise our people across borders; • meet increasing regulatory demands; • support better reporting and business management. 13
Rank Harmonisation: The Benefits… For our business…
• The right people in the right place at the right time • Area Effectiveness
• Clearer people definitions and greater transparency around their credentials • Better definition of our core business services, enabling us to appropriately invest in development of this important population.
• Greater clarity around career models will help us recruit and retain talent. 14
Rank Harmonisation: The Benefits… For our people…
• Greater clarity around their career path and what is required to move from one rank to another. This supports our efforts to promote people on a fair and equitable basis. • Easier for us to identify and define mobility opportunities
• It will also help all our people take advantage of learning and development opportunities, enabling us to better share and leverage materials (eg Intro to Manager).
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Career Path - Definition 4EY Global has 5 career ranks for client service employees and are primary career milestones 4A change in rank means a change in responsibility, competency level and authority 4Promotion is a movement from one rank to another 4There will be a ‘grow or go’ ethos at each rank
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Client Service Ranks Executives
Partner/Principal Executive Director Senior Manager Manager Senior Staff/Assistant Intern 17
ME BAS Career Path
Partner Partner
Ex. Ex. Director Director Senior Senior Manager Manager Manager Manager Senior Senior Staff Staff Consultant 1&2
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Manager
Grade Grade
Director
Senior Manager 1&2
Senior Consultant 1&2
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SADC SADC
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Partner
Rank Rank
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44
SMDC SMDC EMDC EMDC
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Rank Code
PAC PAC
2 years
3 years
2 years
4 years
~12 years to Partner
Fast Track
3 years
4 years
2 years
4 years
~14 years to Partner
Interim Track
Mapping of BAS Grades – Middle East Current Role / Business Title
Proposed Global Rank
Partner Director
Partner Executive Director Senior Manager
Executive Manager Senior Manager Manager Supervisor Senior Analyst
Analyst Assistant Analyst
Trainee Interns
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Manager
Proposed Grade All SSLs (NEMIA) Partner (5) Director (4) Senior Manager (4)
Senior
Manager (3) Senior Consultant (2) Executive (TAS)
Staff
Consultant (1) Analyst (TAS)
Intern
Intern
Proposed GFIS Rank 111 131
Today’s Progression Track * 16+ Track
Interim Progression Track ** 14+ Track
2+
Fast Track ***
Relevant Years of Experience
12+ Track
12+
1
1
12+
Up to 4
Up to 4
Up to 4
8+
Up to 3
Up to 2
Up to 2
6-8
Up to 4
Up to 4
Up to 3
2-6
Up to 3
Up to 3
Up to 2
0-2
(SM2) 212 (SM1) 211 321 (SC2) 422 (SC1) 421 (Ex.2) 422 (Ex.1 ) 421 (C2) 442 (C1) 441 (An.2) 442 (An.1) 441 511
Language and Terminology • Ranks – our primary career milestones internally – they are not external job titles. • Grades – subdivisions of ranks that represent the way we measure the skills and experience of, for example, one Senior against another. Maximum of four grades per rank •Roles – responsibilities carried out by a person defined by the competency levels required. • Promotion – movement from one rank to another. • Progression – movement between grades (within a rank). 20
Business Advisory Services
Global BAS Competency Model
What is a Competency? Each competency includes, with equal weight and importance: Skills
Consulting and technical skills we need to effectively deliver the BAS value proposition to clients and to sustain the BAS business. E.g. Networking.
Behaviours
The way in which we deliver to our clients and work together – the way clients immediately recognise, and we demonstrate, that we are BAS consultants. E.g. Consistently demonstrating BAS values.
Knowledge
The understanding of the BAS practices, client, business and industry context that drives the commercial relevancy and innovation of our work with clients. E.g. Informed opinions to drive conversation/dialogue.
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BAS Competency Model Overview The BAS Model contains following clusters: Core Business Advisory
Levers of Change Finance Domain Knowledge Supply Chain Domain Knowledge
The competencies we expect all of our BAS consultants to develop during their career as a BAS consultant independent of the part of the organisation they ‘belong to’
The BAS Clusters and Associated Competencies Finance - Finance Rapid Assessment Finance - Finance Transformation / SSC
Finance Domain Knowledge
Finance - Financial Statement Close Finance - Performance Management Finance - Forecasting, Planning, Budgeting Finance - Finance Process Effectiveness
Customer Domain Knowledge Technical Skills
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The BAS DNA We can become more distinctive in the Advisory market by emphasising 4 key characteristics 2
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Valued Relationships We are at our best when we;
Team Chemistry We are at our best when;
• are both committed to a long term relationship
• The EY team and client team become a highperformance team
• etc
• We develop highly capable and very flexible consultants • We live our values
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4 Real Insight We are at our best when we;
Sustainable Improvement We are at our best when we;
• dedicate ourselves to creating innovative and actionable insight for our clients
• Make good and lasting change happen in our clients • etc
• etc
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BAS Competency Model Build Valued Relationships: How we work with our clients to create mutually valuable relationships
Technical: The industry and offering knowledge, skills and experience we bring to bear in working with our clients
Create Real Insight: How we create, develop and capture innovative and relevant knowledge and solutions 25
Develop Team Chemistry: How we attract, grow and retain our people and develop high performance teams
Maximise Business Operations: How we build and operate our business to deliver best value for EY, BAS our clients and our people
Deliver Measurable Sustainable Improvement: How we develop and deliver valuable and sustainable solutions with our clients that have a lasting improvement on performance 25
BAS Core Competencies Build Valued Relationships
Develop Team Chemistry
Create Real Insight
Deliver Measurable Sustainable Improvement
Maximise Business Operations
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Build and Leverage strengthen relationships Build strong relationships Leverage networks to relationships basedthat on keen can be insight into with BAS and client people maximise benefit for both leveragedclient to create value value drivers and through personal integrity, EY and clients, crystallise for EY and BAS clients, strategy, identify be adept at begin to identify areas of and shape opportunities to and explore commercialising areas of mutual opportunity drive long-term value opportunity relationships
Key focus on internal relationships and gaining understanding of client relationship management
Create and direct highperforming teams across Build and manage high-performing teams, across EY Actively extend your EY network, Role buddy model with BAS new Values, hires and counsel buildjunior your personal team members brand with and manage senior BAS EYand service lines and service lines and with client people, living the BAS colleagues client team dynamics business units and DNA consistently integrating senior client stakeholders
Build your peer network and take an active and supportive role in the team to enhance team effectiveness
Use deep understanding to Lead development of fresh insights to build internal and market create innovative, strategically important, profile as an SME, anticipate changing client needs to ensure client-focused solutions across service lines and cutting-edge point of view business units
Contribute to BAS insights through research and Leverage experience to influence BAS insights, own Channel experience into innovative BAS insights and be adept at tailoring for active client participation in deliverables that demonstrate strong, current specific client needs, demonstrating real empathy and understanding development sessions, insight and awareness of environment build technical knowledge
Skills Summary for Core Competencies Deliver Measurable Sustainable Improvement:
Create Real Insight
Develop Team Chemistry
Build Valued Relationships
Maximise Business Operations
Conduct research
Generate ideas
Communicate effectively
Engage with client and team
Demonstrate commercial awareness and rigour
Analyse data
Shape solutions
Coach self and others
Understand, interpret and evaluate client and team needs
Strategic and operational planning 26
Business Advisory Services
Accelerated Leadership Program
The ALP is an exclusive programme for our strongest leadership talent The ALP
A firm-wide, three year programme
Purpose
Accelerating the development of leadership and business skills
Goal
Acceleration 28
Increase the diversity and power of our leadership strength An accelerated but not exclusive route to partnership
Overview of the ALP
Formal learning (skills workshops)
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Informal learning (on-the-job experiences)
Formal Learning Activity
Annual Frequency
Annual Conference
2 days
National Leadership Development Workshops
2 x 2 days
BU-specific Leadership Development BU specific Workshops Speaker Events
4
Insight Seminars
4
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Informal Learning Activity
Support
Stretching ‘on-the-job’ work experience
Counselor
Formal workshadowing scheme
Partners/Clients
Action Learning Group (ALG)
ALG Facilitator
Development Contract
Counselor/Mentor
Mentoring
Partner Mentor
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The ALP is a 2-way deal Firm • • • •
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Individual
• Ownership of personal Partner Sponsorship development plan On the job challenge • Courage to move VALUE World-class training outside comfort zone High quality support EXCHANGE • Professional and coaching commitment to the programme • Mindset which embraces ambiguity and new challenges
2007 Selection Process
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Assessed against three dimensions Potential
Performance
Values
• ‘High Potential’ or ‘Best in Class’ • Recognised for their learning agility • Continued rating as ‘5’ or ‘4’ • Significantly outperforming peers • Personal alignment with our values • Role model of our values in action
The ALP is now open to individuals in both client-facing and business support roles who are up to 12 months either side of promotion to manager 34
Dimensions of Leadership Potential
Aspiration
HIPO
Ability
Engagement
Although only 29% of current high performers are also highpotentials, 93% of high-potentials are high performers 35
Three ways in which high performers fall short Aspiration Ability Aspiration Engagement
Aspiration Engagement
Unengaged Stars
Ability
Engagement
Ability Engaged Dreamers
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Misaligned Stars
Is your counselee really demonstrating high potential? ABILITY Skill to operate at a higher and more complex level of performance than required in the current role
e anc m r o perf role High urrent in c Analytical rigo
ur
Selfawaren ess
s elop Dev uilds b and ntial e influ nships ti o rela
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ent Alignm r with ou values
Appetite for n ew experiences
+ Self
ENGAGEMENT Strong commitment to and identification with the organisation, combined with a willingness to put additional effort into work
ment to Commit t elopmen self-dev
i ty M a tur
g Stron ct intelle
ASPIRATION High need for achievement and/or expressed desire to influence the organisation
Brav
ery
Energy
Cha ll stat enges us q uo
+
te na o i EY ss Pa b o u t a
Initiative c o nf
iden c
e
g learnin r o f t Thirs
Makes a difference
T rack reco rd of asking for, and learning fro m, feedback
e Positiv of ncer influe roup peer g
In
clu
s iv
en
es
s
Goes the extra mile
Enthusiastic supporter of change
Selection criteria for ‘07 ALP Performance rating must be 5 or 4
12 months pre/post promotion to manager (determined w.r.t 1 October 2007)
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Nine Box Model rating must be ‘High Potential’ or ‘Best in Class’
Open to client-facing and business support staff
The 2007 selection process combines both individual self-selection and BU nomination and sponsorship STEP 1 Firm-Wide Communication (May)
STEP 2 Counselor Notification (June)
STEP 3 Round Tables (July)
STEP 6 BU Nomination (By 14 September)
STEP 5 Selection (August/September)
STEP 4 BU Invitation to Selection (by 31 July)
STEP 7 National Review (By 25 September)
STEP 8 Mike Cullen Confirmation (28 September)
STEP 9 ALP Conference (29/30 October)
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Questions to help counselors with selection Does your counselee meet the baseline selection criteria at this stage?
If a client asked for a Manager from your group to work on a key project, would you immediately think of this person?
Do the partners believe that this person is demonstrating strong potential now to be a senior leader of the future?
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ALP participants will gain exposure to Mark Otty and the UK Leadership Team. What would Mark think of this individual and those who selected them?
Is your counselee ready to focus on developing their leadership skills and is ALP the right environment for them to do so?
EYLeads
Recruiting Incentive
Personal Learning and Develop Program
Reward and Compensati on
THANK YOU Questions?
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SMDC Work Smart
PAC
&
360 Evaluation
EMDC
Counseling
New Graduate Program
Balance Score Card
Employee Satisfaction Survey
