PARE

Estonia April 2005

Estonia April 2005

PARE

HUMAN
RESOURCES

?
RETURN ON
INVESTMENT
-

PARE

Key HR Business
Partner
Competencies
-

- Employee
Engagement
- Is all of it visible ?

Estonia April 2005

PARE

Estonia April 2005

ABNAMROBank

GlobalHumanResourcesCompetency
Model
BuildingOrganisationalExcellencethrough
People

TheGlobalHRCompetencyModel
ENABLINGTHEVISION
ChampioningChange
ActingWithEmpathy
BuildingCapability

SHAPINGSOLUTIONS
ThinkingPowerfully
DiggingforInformation
TakingtheInitiative

CREATING
CREATING
SHAREHOLDER
SHAREHOLDER
VALUE
VALUE

PARTNERINGWITH
THEBUSINESS

FocusingonClientService
ApplyingOrganisational
Understanding
CollaboratingwithColleagues

DELIVERINGVALUE
FocusingonResults
ActingCourageously
WinningCommitment
HoldingOthersAccountable

PARE

Estonia April 2005

PartneringwiththeBusiness
Partneringwiththebusinessarisesfromadeepseatedconcerntoaddvalue
toclientsinthebusiness.Thiscallsforunderstandingofthecriticalforces
thatshapeclientsneeds,bothstatedandunexpressed,andisdemonstrated
throughtakingactiontopreemptandrespondtotheseneedsinorderto
provideexceptionalclientservice.Theeffectivenessoftheseactionsis
maximisedthroughaconsideredchoiceofapproachandtheapplicationofa
profoundunderstandingofthewayinwhichtheorganisationoperates.
MaximumvalueisdeliveredtotheBankthroughensuringthatothersarekept
informed,synergiesareharnessedandcrossbusinessworkingisencouraged.

PARE

Estonia April
2005

FocusingonClientService
Concentratingoneseffortsonuncoveringandmeeting
clientneeds
ApplyingOrganisationalUnderstanding
Cultivatingandusingadeepunderstandingofthewaythat
organisationsfunctiontomaximiseeffectivenessandefficiency

PARE

Estonia April 2005

CollaboratingwithColleagues
Workingcooperativelywithotherstomaximisegroup
effectiveness,achieveoptimumperformanceand
minimiseduplicationofeffort

Focusing on Client Service

Concentrating ones efforts on uncovering and meeting client needs
Level 1:
Understands Client and
Responds to Stated
Needs

Level 2:
Suggests Fitting Solutions

Indicators
- Builds awareness of the clients
business area to understand
current issues
- Reacts in a timely fashion to
the clients 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 clients
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

Level 3:
Addresses Underlying Needs
(Differentiating)

Indicators
- Does not stop at the clients 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 clients 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

Level 4:
Acts as Trusted
Partner

Indicators
- Looks for longterm 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 clients 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

PARE

Estonia April 2005

ShapingSolutions
Shaping Solutions is characterised by a welldeveloped ability to create
andshapevaluablesolutionsforthebusiness.Thisisdoneinaflexibleand
pragmatic way, by thinking and acting decisively. The thinking processes
thatunderpinthisabilityarebusinessfocusedandflexible,servingnotasan
intellectual end in themselves, but rather as a means to shed new light on
situations.Suchthinkingisappliedtoshapepossiblecoursesofaction,and
tobringinsight,interpretationandclaritytoissueswhichareoftencomplex
andambiguous.Thisinsightismademorepowerfulthroughtheapplication
of relevant information gathered from within and outside the Bank. This
clustercallsforafarsightedview,lookingforfutureopportunities,whilstat
thesametimeactingresponsivelytocurrentissues.

PARE

Estonia April 2005

ThinkingPowerfully
Applyingreasoning,thatwilloftenbebasedonexperience
and/orlearning,tounderstand,clarifyandactuponsituations
encountered
DiggingforInformation
Scanningtheinternalandexternalenvironmenttogatherand
sharebusiness,commercialandprofessionalinsightsthatcanbe
appliedtodeliverorganisationalbenefits

PARE

Estonia April 2005

TakingtheInitiative
Takingdecisiveactiontocapitaliseonopportunitiesor
overcomeproblems,whichrangefromtheimmediatetothe
longerterm

PARE

Estonia April 2005

EnablingtheVision
Enabling the Vision is demonstrated through a concern to facilitate
organisationaldevelopmentandtransformation.Thisinvolvesplayingakey
roleinadvocatinganddrivingchange,buildingcommitmenttoitandputting
inplacetheframeworkwhichallowsthecreationoffuturevalue.Thisalso
calls for understanding of the underlying reasons shaping others behaviour
andtheapplicationofthisknowledgetomouldinteractionsandrelationships
soastoconveymessagesinthemostcompellingfashion.Afinalingredient
is a longterm view of the capability required within HR and the Bank as a
whole, harnessed to ensure that any anticipated gaps are filled and to
maximisetheprofessionaldevelopmentofothers.

PARE

Estonia April 2005

ChampioningChange
Actingasacatalystfororganisationaltransformationby
buildingmomentum,andcreatingtheinfrastructureforlasting
change
ActingwithEmpathy
Demonstratingappreciationofthediverseperspectives,needs
andconcernsofindividualsandusingthistoshapeeffective
workingrelationships

PARE

Estonia April 2005

BuildingCapability
Fosteringotherslongtermdevelopmentinlinewithindividual
prioritiesandthefutureneedsofABNAMRO

PARE

Estonia April 2005

DeliveringValue
Thedesiretodeliverenhancedbusinessperformanceand
shareholdervalueliesattheheartoftheDeliveringValue
cluster.Thisisexemplifiedthroughaclear,commercialand
focuseddesireforresults.Itcallsforprofessionalselfbeliefand
credibilityintheeyesofothers,whichisbuiltbydemonstrating
soundandreasonedjudgement,convictionandintegrity.Itcalls
fortheconsidereddeploymentofarangeofinfluencingstyles,
usedtobringothersfromacrossthebusinesstogetherinpursuit
ofvaluedrivengoals.Theabilitytoworkwithandthrough
otherseffectively(fromwithinandoutsidetheBank)iscrucial;
settingclearaccountabilitiesandstandardsandensuringdelivery
againsttheseisanimportantelementforsuccess.

PARE

Estonia April 2005

FocusingonResults
Settingandworkingtoexceedchallengingandmeasurable
goalsthatareclearlyalignedwithABNAMROstrategy
ActingCourageously
Consistentlydemonstratingbeliefinonesowncapabilityand
judgement,evenwheninunfamiliarenvironmentsorwhen
confrontedwithpowerfulopposition

PARE

Estonia April 2005

WinningCommitment
Applyingthoseinfluencingtechniquesthatgainthenecessary
commitmentandsupportfromothers
HoldingOthersAccountable
Settingclearaccountabilitiesandensuringthatothersdeliver
againstthese

HR Development Programme (PC NGM)

ExampleSummaryReport

HR Professional Name: Simon Taylor

Manager Name: Annemieke van Gaalen

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

Competencies identified for development

focus by Manager in reviewing alternative
sources of performance data:
1: Thinking Powerfully (Strength)
2: Winning Commitment (Development
Need 1)
3: Collaborating with Colleagues
(Development Need 2)

Competencies agreed for development focus at progress

review meeting:
1: Thinking Powerfully (Strength)
2: Collaborating with Colleagues (Development Need 1)
3: Winning Commitment (Development Need 2)

Reasons for discrepancies (if any): 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 further
and making use of them to add value to my team, and bring others around to my way of thinking.

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

Development Actions agreed

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

PleasecompletethisSummaryReportandreturnittoEmmaPollard([email protected])by15November2002

PARE

Estonia April 2005

YourViews,OurFuture
EmployeeEngagementProgramme
WhatisemployeeengagementatABNAMRO
Howemployeeengagementcontributestovaluecreation
fortheorganisation

PARE

Estonia April 2005

WhatisemployeeengagementatABNAMRO?
Commitmenttothejobandthecompany;intentiontoact
inthebestinterestofthecompanyandwillingnesstoinvest
discretionaryeffortinmeetingtheorganisationsbusiness
goals

PARE

Estonia April 2005

WhydoesABNAMROmeasureemployeeengagement?
Tosupporttheachievementofourstrategy
Provenlinkbetweenemployeeengagement,customer
satisfactionandfinancialperformance
AligningpeopleprocesseswithourCorporateValuesand
BusinessPrinciples
Increasingnumberofratingagenciesuseemployees
opiniontorateorganisationalperformance

PARE

Estonia April 2005

Whomeasuresemployeeengagement?
Themajorityofglobalbanksmeasureengagementusinga
consistentglobalprocess

Citigroup,WellsFargo,FleetBoston,Lloyds
TSB, Barclays,RBS,Nordea,JPMorganChase
Highperformingcompaniestendtomeasureengagement

Shell,Unilever,Merck,AstraZeneca,Nokia,
Vanguard
Employeeattitudedataisregularlycommunicatedto
investorsandanalysts

PARE

The difference between satisfaction and engage

Work Experiences

Stage 1

Supervision
Working Relationships

Glad to come into work

each day and do this
job

Stage 2

EM

E
OY
L
P

Happy to be doing this job at

this company

Stage 3 EMPLO

Motivated to go above and

beyond the call of duty for this
company

TI
SA

N
O
I
T
AC
F
S

A
G
EN
E
YE

Training and development

Working conditions

Organisational Functioning
Strategic direction
Leadership
Company image
Communication
Customer focus

NT
E
M
E
G

PARE

Employee Engagement at ABN

AMRO
Behavioural

ACT
Cognitive

Affective

THINK

FEEL

Support for goals

and values of
organisation

Emotional
attachment to
organisation

Willingness to strive

Intentional

STAY
Reluctance to leave

PARE

Finding out what drives Employee

Engagement

Leadership
Vision, Values & Business
Principles

Competitiveness
Resources.
Cooperation.

Decision-making &
Accountability

Work-Life Balance

Talent-Management & Personal

Development

Managing People & Performance

Empowerment & Innovation

Communication
Customer focus

Rewards

PARE

Details of the categories:

8 Competitiveness: refers to the perceived quality of

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

products and services, innovation, professionalism and speed

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

of response to the market, when compared to competitors,

to which they are seen to show empathy.

and its perceived external image amongst peers.

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

9 Resources: measures to what degree people feel they

Managements Vision, the consistency of actions with the ABN AMRO

have access to the resources they need, such as working

Business Principles, fairness of management towards employees and the

environment, computer systems and applications, information

organisations reputation and social responsibility.

to do their job.

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

10 Cooperation: refers to cooperation at the department,

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

BU and ABN AMRO level, as well as knowledge sharing

experience it in their environment.

within and between BUs.

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

11 Work-Life Balance: refers to the pressure as

personal development/growth and career advancement opportunities, as

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

well as perceptions of ABN AMROs ability to recruit, develop and retain

talent.

12 Rewards: refers to the fairness of pay compared to

other staff and to similar organisations, whether benefits

5 Empowerment & Innovation: refers to peoples perceived involvement

meets ones needs, matching pay to performance.

in decisions and the climate of openness, trust and challenge that exists.
13 Managing People & Performance: refers to ones
6 Communication: refers to the availability of information, knowledge of

managers ability to communicate, strengthen teamwork,

department/BU objectives and ABN AMROs values and business

provide good feedback on performance and coach, as well as

principles, the quality of top-down communications.

local level leadership style.

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.

14 -Engagement index: includes 13 questions that refer to

the individuals 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

Employee
Turnover

-.49
Sales

.35
Engagement
.18

Operating
Efficiency

.19
Customer
Loyalty

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

.27

Customer
Satisfaction

PARE

Service-Profit Chain: Guiding Theoretical

Framework

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?
Internal
Stakeholder
s

External
Stakeholder
s

Business
Performance

Examples:
Employee Opinion

Customer Satisfaction

Sales Versus Target

Staff Turnover

Customer Retention

Profitability

Absenteeism

Company Brand/Image

Efficiency

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.
Key Drivers of
Engagement

Employee
Opinion

Priority
Areas
Linkage
Analysis

PARE

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

PARE

Which components of employee opinion

Sales vs.
Target

Employe
e Opinion

Turnover

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

Customer
Opinion

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

Key Predictors:
Communication
Engagement: Act
Engagement: Think

PARE

Estonia April 2005

Itishardtomeasure
andthe
invisiblesavings

???