ernst&young leadingh rpractices
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Ernst & Young HR Leading PracticesErnst & Young HR Leading PracticesJeddah – Jan 2008Jeddah – Jan 2008
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AgendaAgenda• Introduction to E&Y• Recent HR Initiatives• Q&A
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An OverviewAn Overview
Ernst & YoungErnst & Young
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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-matter-experts who will participate as members of our core team.
§ Best Practice Recognized as a leading professional services provider with supporting methodologies and tools
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
India Sub§ 20 Offices§ 3 Countries§ 3,200 People
Middle East§ 18 Offices§ 13 Countries§ 3,300 People
Africa§ 52 Offices§ 29 Countries§ 3,800 People Australia / NZ
§ 15 Offices§ 4,800
People
Central /South America§ 64 Offices§ 26 Countries§ 8,000 People
About Ernst & Young … cont’d
110,000 professionals in 132 countries world-wide…...
Ernst & Young - Who Are WeErnst & Young - Who Are We
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About Ernst & Young Middle East
1. Baghdad 1923
2. Bahrain 1928
3. Beirut 1947
4. Doha 1950
5. Kuwait 1952
6. Amman 1953
7. Abu Dhabi 1966
8. Dubai 1966
9. Jeddah 1967
10. Riyadh 1968
11. Al Khobar 1969
12. Sana’a 1971
13. Muscat 1974
14. Sharjah 1974
15. Cairo 1985
16. Ramallah 1994
17. Damascus
18. Libya 2007
§ 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.
Ernst & Young - Who Are WeErnst & Young - Who Are We
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G LO BAL MIND SE T
EXE
CUTIO
N
QQUUAALLIITTYY
PPEEOOPPLLEE
M arke t Leade rsh ip
S HARE D VALUE S
Re la tionsh ip s
Re pu ta tion S ha re
Bra nd
GGRROOWWTTHH
O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY
EXE
CU
TIO
N
Three S trateg ic Three S trateg ic D rive rsD rive rs
S trate g icS trate g icO b jec tiveO b jec tive
T hree T hree F oundational F oundational
E lem e ntsE lem e nts
O ur S tra tegy… O ur S tra tegy… C lear, F ocusedC lear, F ocus ed
G LO BAL MIND SE T
EXE
CUTIO
N
QQUUAALLIITTYY
PPEEOOPPLLEE
M arke t Leade rsh ip
S HARE D VALUE S
Re la tionsh ip s
Re pu ta tion S ha re
Bra nd
GGRROOWWTTHH
O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY
EXE
CU
TIO
N
G LO BAL MIND SE T
EXE
CUTIO
N
QQUUAALLIITTYY
PPEEOOPPLLEE
M arke t Leade rsh ip
S HARE D VALUE S
Re la tionsh ip s
Re pu ta tion S ha re
Bra nd
GGRROOWWTTHH
O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY
EXE
CU
TIO
N
Three S trateg ic Three S trateg ic D rive rsD rive rs
S trate g icS trate g icO b jec tiveO b jec tive
T hree T hree F oundational F oundational
E lem e ntsE lem e nts
O ur S tra tegy… O ur S tra tegy… C lear, F ocusedC lear, F ocus ed
Ernst & Young - Who Are WeErnst & Young - Who Are We
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Ernst & Young Structure 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
Business Improvement
Program Assurance
Finance Functions
Human Capital Services
People Strategy• HR Strategy Articulation• Organization Design• Job Evaluation & Grading
Performance / Reward• Compensation & Reward• Performance Measurement & appraisal• Competency & Assessment Centers• Training Development Plans• HR Policies & Procedures
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Ernst & Young Structure Ernst & Young Structure
Service Lines
Sub Service Lines
Industries
Geographies
Support
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
Oil and Gas
Transportation
Financial Services
Government
Health Care
Real Estate
Islamic banking
Family Business
Jeddah
Khobar
Riyadh
Amman
Dubai
Muscat
Kuwait
Doha
Bahrain
Cairo
Human Resources Legal Marketing Finance & Acct Risk & Quality
Illustr
ation
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Recent InitiativesRecent Initiatives
HR PracticesHR Practices
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E&Y Recent HR InitiativesE&Y Recent HR Initiatives
Rank Harmonization
Competency Framework
Accelerated Leadership Plan
EYLeads
Recruiting Incentive
New Graduate Program
Balance Score Card
Employee Satisfaction
Survey
Personal Learning
and Develop Program
Work Smart PAC
SMDC
&
EMDC
360 Evaluation
Reward and Compensati
onCounseling
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Rank HarmonisationRank Harmonisation
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Introduction
The project18 global ranksIntroduced from 30 June 07Definition of ranks
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Project Overview – the drivers for change
Harmonised rank definitions, across borders, are needed to:• drive the consistent standards that will support our promise ofproviding seamless, consistent, high-quality client service, worldwide;• mobilise our people across borders;• meet increasing regulatory demands;• support better reporting and business management.
Our clients think and act globallyThe need for a global mindset
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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.
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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 - DefinitionCareer 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
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
Partner/Principal
Senior Manager
Manager
Senior
Staff/Assistant
Intern
Executive DirectorEx
ecut
ives
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4444332211 55
ME BAS Career PathME BAS Career Path
Consultant1&2
Senior Consultant
1&2
Manager
Partner
Fast Track
Director
Senior
Manager1&2
2 years 3 years 2 years 4 years ~12 years to Partner
3 years 4 years 2 years 4 years ~14 years to Partner Interim Track
Rank Code
StaffStaff
PartnerPartner
SeniorSenior
ManagerManager
SeniorManagerSenior
Manager
Ex.Director
Ex.Director
RankRank
GradeGrade
SADCSADC SMDCSMDC EMDCEMDC PACPAC
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Mapping of BAS Grades – Middle EastMapping of BAS Grades – Middle East
Current Role / Business Title
Proposed Global Rank
Proposed Grade
All SSLs (NEMIA)
Proposed GFIS Rank
Today’s Progression
Track *
Interim Progression
Track **
Fast Track ***
Relevant Years of Experience
Partner Partner Partner (5) 111 16+ Track 14+ Track 12+ Track 12+ Director Executive
Director Director (4) 131 2+ 1 1 12+
Executive Manager
(SM2) 212
Senior Manager
Senior Manager
Senior Manager (4)
(SM1) 211 Up to 4 Up to 4 Up to 4 8+
Manager Manager Manager (3) 321 Up to 3 Up to 2 Up to 2 6-8 Supervisor (SC2) 422
(SC1) 421 (Ex.2) 422
Senior Analyst Senior
Senior Consultant (2)
Executive (TAS) (Ex.1 ) 421
Up to 4 Up to 4 Up to 3
2-6
Analyst (C2) 442 (C1) 441
(An.2) 442 Assistant Analyst Staff Consultant (1)
Analyst (TAS) (An.1) 441
Up to 3 Up to 3 Up to 2 0-2
Trainee Interns
Intern Intern 511
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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).
Business Advisory Services
Global BAS Competency Model
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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.
What is a Competency?
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BAS Competency Model OverviewThe BAS Model contains following clusters:
Technical Skills
Customer Domain Knowledge
Supply Chain Domain Knowledge
Finance Domain Knowledge
Levers of Change
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’
Core Business Advisory
Finance - Finance Process Effectiveness
Finance - Forecasting, Planning, Budgeting
Finance - Performance Management
Finance - Financial Statement Close
Finance - Finance Transformation / SSC
Finance - Finance Rapid Assessment
Finance Domain
Knowledge
The BAS Clusters and Associated Competencies
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The BAS DNA
Valued RelationshipsWe are at our best when we;
• are both committed to a long term relationship
• etc
Sustainable ImprovementWe are at our best when we;
• Make good and lasting change happen in our clients
• etc
Team ChemistryWe are at our best when;
• The EY team and client team become a high-performance team
• We develop highly capable and very flexible consultants
• We live our values
Real InsightWe are at our best when we;
• dedicate ourselves to creating innovative and actionable insight for our clients
• etc
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1 2
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We can become more distinctive in the Advisory market by emphasising 4 key
characteristics
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BAS Competency ModelDevelop Team Chemistry:How we attract, grow and retain our people and develop high performance teams
Deliver Measurable Sustainable Improvement:How we develop and deliver valuable and sustainable solutions with our clients that have a lasting improvement on performance
Build Valued Relationships:How we work with our clients to create mutually valuable relationships
Create Real Insight:How we create, develop and capture innovative and relevant knowledge and solutions
Maximise Business Operations:How we build and operate our business to deliver best value for EY, BAS our clients and our people
Technical:The industry and offering knowledge, skills and experience we bring to bear in working with our clients
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BAS Core Competencies
Develop Develop Team Team
ChemistryChemistry
Create and direct high-performing teams across
EY service lines and business units and
integrating senior client stakeholders
Build and manage high-performing teams, across EY service lines and with client people, living the BAS
DNA consistently
Role model BAS Values, counsel junior team members and manage BAS and client team dynamics
Actively extend your EY network, buddy with new hires and build your personal brand with senior colleagues
Build your peer network and take an active and supportive role in the team to enhance team effectiveness
Deliver Deliver Measurable Measurable Sustainable Sustainable
ImprovementImprovement
Create Create Real InsightReal Insight
Use deep understanding to create innovative,
strategically important, client-focused solutions across service lines and
business units
Contribute to BAS insights through research and active participation in
development sessions, build technical knowledge
Build Build Valued Valued
RelationshipsRelationships
Leverage networks to maximise benefit for both EY and clients, crystallise and shape opportunities to
drive long-term value
Leverage relationships based on keen insight into
client value drivers and BAS strategy, be adept at
commercialising relationships
Build and strengthen relationships that can be leveraged to create value
for EY and clients, identify and explore areas of
opportunity
Build strong relationships with BAS and client people through personal integrity, begin to identify areas of
mutual opportunity
Key focus on internal relationships and gaining understanding of client relationship management
Maximise Maximise Business Business
OperationsOperations
Leverage experience to influence BAS insights, own client deliverables that demonstrate strong, current
insight and awareness of environment
Channel experience into innovative BAS insights and be adept at tailoring for specific client needs, demonstrating real empathy and understanding
Lead development of fresh insights to build internal and market profile as an SME, anticipate changing client needs to ensure
cutting-edge point of view
Understand, interpret and evaluate client and team needs
Engage with client and team
Build Valued Build Valued RelationshipsRelationships
Shape solutions
Generate ideas
Create Real Create Real InsightInsight
Maximise Maximise Business Business
OperationsOperations
Develop Team Develop Team ChemistryChemistry
Deliver Deliver Measurable Measurable Sustainable Sustainable
Improvement:Improvement:
Strategic and operational planning
Coach self and others Analyse data
Demonstrate commercial awareness and rigour
Communicate effectively
Conduct research
Skills Summary for Core Competencies
Business Advisory Services
Accelerated Leadership Program
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The ALP is an exclusive programme for our strongest leadership talentThe ALP is an exclusive programme for our strongest leadership talent
An accelerated but not exclusive route to partnershipAn accelerated but not exclusive route to partnership
The ALP
Purpose
Goal
A firm-wide, three year programme
Accelerating the development of leadership and business skills
Increase the diversity and power of our leadership strength
Acceleration
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Overview of the ALPOverview of the ALP
Formal learning(skills workshops)
Informal learning(on-the-job
experiences)
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BU specificBU-specific Leadership Development Workshops
4Insight Seminars
4Speaker Events
2 x 2 daysNational Leadership Development Workshops
2 daysAnnual Conference
Annual FrequencyActivity
Formal LearningFormal Learning
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ALG FacilitatorAction Learning Group (ALG)
Partner MentorMentoring
Counselor/MentorDevelopment Contract
Partners/ClientsFormal workshadowing scheme
CounselorStretching ‘on-the-job’ work experience
SupportActivity
Informal LearningInformal Learning
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The ALP is a 2-way dealThe ALP is a 2-way deal
VALUE EXCHANGE
• Partner Sponsorship• On the job challenge• World-class training• High quality support
and coaching
• Ownership of personal development plan
• Courage to move outside comfort zone
• Professional commitment to the programme
• Mindset which embraces ambiguity and new challenges
Firm Individual
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2007 Selection Process2007 Selection Process
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Performance
Potential
Values
• Continued rating as ‘5’ or ‘4’
• Significantly outperforming peers
• ‘High Potential’ or ‘Best in Class’
• Recognised for their learning agility
• Personal alignment with our values
• Role model of our values in action
Assessed against three dimensionsAssessed against three dimensions
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
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Dimensions of Leadership PotentialDimensions of Leadership Potential
Ability Engagement
Aspiration
HIPO
Although only 29% of current high performers are also high-potentials, 93% of high-potentials are high performers
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Three ways in which high performers fall shortThree ways in which high performers fall short
Aspiration
EngagementAbility
Misaligned StarsMisaligned StarsEngaged DreamersEngaged Dreamers
Unengaged StarsUnengaged Stars
Engagement
Aspiration
Ability
Ability
Aspiration
Engagement
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Is your counselee really demonstrating high potential?Is your counselee really demonstrating high potential?
ABILITYSkill to operate at a higher and
more complex level of performance than required in
the current role
ASPIRATIONHigh need for achievement and/or expressed desire to influence the
organisation
ENGAGEMENTStrong commitment to and
identification with the organisation, combined with a willingness to put
additional effort into work
Analytical rigour
Self-awareness
High performance
in current role
Self confidence
Maturity
Strong
intellect Initiative
Commitment to
self-development
Thirst for learning
Appetite for new experiences
Challenges status quo
Track record of asking for, and learning from, feedbackMakes a difference
Bravery
Alignment
with our
values
Goes the extra mile
Inclusiveness
Passionate
about EY
Positive
influencer of
peer groupEnthusiastic supporter of
change
Energy
++
Develops
and builds
influential
relationships
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Selection criteria for ‘07 ALPSelection criteria for ‘07 ALP
12 months pre/post promotion to manager
(determined w.r.t1 October 2007)
Nine Box Model rating must be ‘High Potential’
or ‘Best in Class’
Open to client-facing and business support staff
Performance rating must be 5 or 4
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The 2007 selection process combines both individual self-selection and BU nomination and sponsorship
The 2007 selection process combines both individual self-selection and BU nomination and sponsorship
STEP 4 BU Invitation to Selection
(by 31 July)
STEP 5 Selection
(August/September)
STEP 6 BU Nomination
(By 14 September)
STEP 7 National Review
(By 25 September)
STEP 8 Mike Cullen Confirmation
(28 September)
STEP 9 ALP Conference(29/30 October)
STEP 1 Firm-Wide Communication
(May)
STEP 2 Counselor Notification
(June)
STEP 3 Round Tables
(July)
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Questions to help counselors with selectionQuestions to help counselors with selection
Does your counselee meet the baseline selection criteria at
this stage?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?If a client asked for a Manager from your group to work on a key project, would you immediately
think of this person?Is your counselee ready to focus on developing their leadership
skills and is ALP the right environment for them to do so?Do the partners believe that
this person is demonstrating strong potential now to be a senior leader of the future?
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THANK YOUTHANK YOUQuestions?Questions?
EYLeads
Recruiting Incentive
New Graduate Program
Balance Score Card
Employee Satisfaction
Survey
Personal Learning
and Develop Program
Work Smart PAC
SMDC
&
EMDC
360 Evaluation
Reward and Compensati
onCounseling