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NASSCOM India ITES-BPO Summit 2006

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  • 1. NASSCOM India ITES-BPO Summit 2006 Attracting, Managing and Developing Talent Alexander Campbell UBS AG, Head of Human Capital Management June 2006
  • 2. Content of Presentation 1. About UBS 2. Focus of UBS Group HR 3. UBS in India 4. Challenges 5. Conclusions 1
  • 3. SECTION 1 About UBS
  • 4. About UBS Globally
  • 5. UBS's positioning today UBS CHF 125 billion market capitalization1 CHF 2.7 trillion invested assets CHF 39.0 billion equity (to UBS shareholders) Over 70'502 employees2 Global Wealth Management & Global Asset Management Investment Bank Business Banking World's largest wealth manager Leading institutional and #1 global secondary equity cash CHF 1,822bn in invested assets wholesale asset manager commissions - WM: CHF 944bn CHF 737bn invested assets #1 global equity capital markets - WM USA: CHF 728bn - BB: CHF 150bn - Institutional: CHF 425bn (8.5% market share of volume) Wealth Management Wealth Management - Wholesale: CHF 312bn #2 FX franchise (12.5% market Best global Private Bank Largest fund house in Europe share) (Euromoney) Largest mutual fund manager in #7 global Investment Banking fee Wealth Management USA USA Wealth Management pool (5.0% market share) Switzerland 4th largest full service US broker 2,797 employees located in 20 Leading global FIRC franchise (15 % market share)3 countries Business Banking Switzerland Business Banking Switzerland Broad based product offering 25-35% of Swiss banking market 1 Market capitalisation as per 01.11.2005 2 Financial Businesses only 3 As per 2Q05 4
  • 6. Leveraging the platform for growth This is who we are... Globally focused model Focused on securing global leadership positions in: — Wealth Management — Asset Management — Investment Banking Business Banking Switzerland to exploit economies of scale Targeting above GDP growth businesses Integrated model as key differentiator – "One Firm" approach This is who we are not... Conglomerate Niche firm Horizontally aligned business Narrowly defined markets, Substantial challenges to geographies, or opportunities management resulting from Limited economies of scale complexity of operations Limited diversification benefits 5
  • 7. Reaching for the top Organic Growth through M&A growth SBG Union Bank of Switzerland 1912 1945 1967 1986 1997 Eidgenössische Bank Bank in Winterthur 1862 Interhandel Toggenburger Bank 1863 Phillips & Drew 1998 2000 Schröder Münchmeyer Hengst & Co. Basler BV SBV Swiss Bank Corporation 1872 1897 1990 1994 1995 1997 Frankfurter BV 3 CH Banken O‘Connor & Associates Basler Brinson Partners Bankenkonsortium S.G. Warburg Group Dillon Read 1942 1974 Paine, Webber, Jackson & Curtis PaineWebber Inc. 6
  • 8. Two main phases in corporate development of UBS Establish the Platform Develop the Platform When Up to 2000 Post 2000 Principal Driver M&A Organic growth Examples S.G. Warburg US Investment Banking UBS-SBC European Wealth PaineWebber Management FX repositioning APAC footprint Supplemented with in-fill acquisitions UBS’s cumulative total return to shareholders +94% +145% relative to DJ World Bank index since 1990* * Total Return is based on Datastream data from end of 1990 to 23 September 2005 in CHF and adjusted for stock splits. Dividends are reinvested, share buybacks 7 reflected in the share price. UBS‘s pre-1997 numbers have been combined pro forma for UBS and SBC
  • 9. The integrated business model at work 15–20% of market capitalization is due to the integrated business model Derivatives Trade Global Asset Management Research flows Investment Bank NNM Trade inflow flows Global Wealth Management Structured products Funds Corporate finance & Business Banking advice Corporate Center Risk Human ITI Controlling Communication Treasury Management Resources 8
  • 10. SECTION 2 Focus of UBS Group HR
  • 11. Focus of Group HR Facilitating integrated business model: ―one firm― Balancing HR requirements of the Group with those of the operating divisions High potential identification and development, & senior management succession Managing appraisal and creating a performance culture Managing key incentive programs Setting global recruitment standards and opening the internal labor market Implementing common HR policies & platforms where desirable Management of HR Shared Services & outsourcing/offshoring 10
  • 12. Resourcing: Our challenges Workforce planning & Attraction Selection Integration controlling Creating a robust resource planning methodology Aligning resourcing model to strategic growth Opening the internal labor market Ensuring consistently high recruiting standards Common processes and policies being developed: eg. internal sourcing policy, unified job advertising, data banks of key skills 11
  • 13. Talent Development & Management Overview UBS Strategy From M&A towards organic growth Talent strategy From talent acquisition towards talent development Talent by Acquisition Talent by Development Recruiting Identification Identification Integrated Approach Talent Pipeline Selection Succession Planning On-Boarding Development 12
  • 14. Identification of High Potentials Performance: Extraordinary performance track GMB record over the last 2 years. In particular, Top Leadership GMB SC Talents (TLT) Key Position they should have demonstrated ALL of the Succession Candidates following competencies: High Potentials  Learning agility – active in the pursuit of and engagement with feedback and alternative perspectives aimed at improving own performance & style  Mastering complexity & change – quickly assimilates complex information, deals with ambiguous situations and engages with change  Awareness of self & others (emotional intelligence) – awareness and management of self and others and ability to use this to lead  Drive and commitment – ambition, capability and determination to succeed  Working in partnership – working collaboratively, high influence, establishing relationships  Resilience and managing stress – coping mechanisms, ability to manage and reduce stress for others 13
  • 15. Integrated key talent management—overview UBS Leadership Insitute Development Architecture Program Target Audience Management of Key Talents: GEB ASF GEB & GMB Development & GMB career review Mentoring GMB SCs process SLC Key Position Holders Key Position Identification of Holders suitable & development GLE 1 Succession opportunities & Selected Succession GLE 2 Candidates career moves Candidates GLE 3 Implementation of agreed Top Talents development measures Accelerated High Top Talents Potentials Leadership Experience all UBS employees 14
  • 16. Leadership Institute: Group-wide Programs On the top level the programs are integrated across BGs. G Annual E Strategi B c Forum & Group Mentoring G M B Senior Leadership Conference K E Y Global Leadership Experience Programs T A L Accelerated Leadership Experience Program1 E N T Investment Global Asset Corporate Wealth Wealth Bank Management Center Management & Management USA Business Banking Note: 1 Focus on high potentials – not top leaders 15
  • 17. Appraisal (PMM) – Process and Benefits ♦ provides a consistent way to define, track and measure objectives and results ♦ reinforces our corporate culture and the ―one firm‖ approach ♦ provides a common performance management architecture whilst respecting & valuing the different businesses and business models across the Group ♦ stimulates organizational commitment ♦ fosters a climate of continuous learning and professional growth 16
  • 18. Global Competencies Managing & Business & Judgement & Developing Problem Analysis Financial Focus Decision Making People Quality & Communication Continuous & Impact Professional Improvement Behaviour Resilience & Developing Self Teamwork Client Focus Stress (Learning) Management Technical / Strategic Drive & Specialist Perspective & Commitment Knowledge Global Awareness Planning & Integrating Innovation Leadership Organising Diversity 17
  • 19. HRIT is critical COMPONENT SIGNIFICANCE FOR HR Unified Foundation Enables HR data management (based on Oracle / People Soft (this includes HR Self Service modules) Firmwide Performance Measure- Allows cross-Business-Group ment and Management System 360° reviews Firmwide Compensation Supports Group Compensation Management System Strategy Global Reporting Warehouse Enables comprehensive reporting and analysis Shared Recruiting System Allows firmwide job boards and shared candidate pools Consolidated Learning Platform Combines learning administration and E-learning capabilities 18
  • 20. Key Potential Future HR & L Operating Model Outsourcing/ off-shoring Retained HR&L Shared Service Business Group aligned activities potential activities Line Business Client Employee Manager Leaders Tier 0 Self Service – web,IVR and knowledge base Contact Center Business Partners/ Tier 1 HR CRMs Simple Inquiry Inquiry Management & and Operational Cross-functional Administration and Operational Support (ASC) Business Support Leadership Support Operational Activity Recruiting Process Campus Data Comp Delivery & Coach/Advisor CRM Delivery & Admin Recruitment Management Admin to Mgmt Services Tier 2 Prof (Mass) Learning Payroll Delivery Benefits Delivery & People Strategy Complex Inquiry Recruitment Administration and Admin Admin for the business and Operational Support Prof Recruit (Non- Commissions Employee Performance HR Reporting Regular EEs) Admin (WMUS) Relations Management Service Regional HR & Learning Services Business Group Specialists Management Business Group Organization Recruitment Referral Regional HR Strategy & Diversity Specific Prof & Tier 3 Strategy Recruitment Compensation Mgmt Support Campus Recruiting Retained SME, policy and Contract(s) Executive Campus Benefits Talent & Perf Exception Learning Learning Management Recruitment Recruitment Strategy Management Management Employee Relations Contract(s) Manager FA Recruit.. Business Group (Specialist Advice, Legislative and HR Analytics Monitoring Recruitment (WMUS) Compliance) Compensation 19 Learning Operating Model still to be confirmed
  • 21. SECTION 3 UBS in India
  • 22. About UBS in India Investment Banking presence in Mumbai (52 staff) Banking license applied for – Expansion of IB activities – Basis for growing an onshore Wealth Management Business Indian Service Centre, Hyderabad – Both Knowledge Working & BPO – Currently 160 staff in IT Production, IB Analytics and IB documentation – Estimate 500+ staff by end 06; scaleable 2000+ – Managed Services Model (SLA‗s) or offshore Extension Model 21
  • 23. Recruitment challenge in India Sources Deployment Competitors + Knowledge working ISC IIM Global recruitment / KPO ISC IIT Other universities KPO/BPO/ISC Local colleges BPO + MBA, M. Com / B. Com, CA/CFA, B. Eng 22
  • 24. Key Elements of talent management strategy for India Intensive marketing effort to target academic institutions Reinforcement of UBS brand Emphasis on selection testing/high entry standards UQ + total fixed pay KPI based appraisal Significant variable pay driven off KPI‗s Formal job descriptions, KPI‗s and competency framework Competency based career development model Career opportunities in India and elsewhere Part of UBS family/offshore management involvement Effective employee communication 23
  • 25. Sample Job Description: Analyst Job Description Statement of purpose: To support the Investment Banker / Onshore Analyst in preparing pitches / presentations to clients by conducting research within clearly laid-out formats and structure, in areas such as Healthcare, Technology and M&A. • Broad components of the role – Create sector and company analysis for various comparable data – Summarise developments in clearly identified topics for the companies / sectors identified – Update comparables / profiles on a continuous basis for the companies – Create a short profile (1-3 page), long profile (8-10 pages) or specific components of a pitch book 24
  • 26. KPI’s: Analyst KPIs Analyst Managers • Feedback from onshore banker / Feedback from onshore banker / analyst analysts • Throughput in terms of number Quantity of work in terms of number of of profiles profiles • Utilization Quality in terms of number of and type • Manager‘s feedback of revisions • Peer feedback Attitude – flexibility, helping others, stretching, … • Process improvement suggestions Competency enhancement Manager‘s feedback 25
  • 27. KPI Weighting: Analyst Example only Eventual KPIs Srl Description Weight 1 Client Feedback 40% Direct structured feedback from onshore analysts / bankers for each deliverable A surrogate could be the buddy gives feedback for each deliverable (Accuracy of Information: Thoroughness / Innovation, Adherence to instructions, Communication, Attention to detail) 2 Weighted average number of profiles completed 15% 3 Number of errors: omissions and mistakes 10% 4 Manager‘s feedback primarily on attitude & flexibility 10% 5 Peer Feedback 20% 6 Competency enhancement 5% Bonus computation 26
  • 28. Competencies: Analyst Personality traits (PT) and Competencies Managers Analyst PT – Number oriented • PT – Detail oriented • Number oriented – Curiosity – Drive & commitment • Systematic – Hard working • High intellect Competencies – Ability to work on comparables and valuation • Competencies – Ability to communicate well with the onshore analyst • Oral and written – Plan work and time well communication skills – – Be flexible and work to client schedules Be a good team player • Analytical skills • Be a good team player 27
  • 29. Training & Development Vertical Operations heads Mngr ISC Level/ Vertical Managers Level Exposure Team Lead Stepping up to Team, Cross functional Leadership UBS Leadership People : Leadership and Operations Institute Foundation program Project management management UBS Policies Interviewer Certification Trainees/ Implementation Interviewer Certification program Program Entrants Interviewer Certification Six sigma Green belt to New domain program Operations Management Refresher on UBS Project based Process based Need based New hire Customer service Need based Leadership Orientation Language & communication Team UBS/ ISC Culture overview UBS/ISC Team work Culture Change UBS Values Extended Management Leadership team Policies & Procedures Managers First time (Cross) Cultural Training- mandatory for all levels: leaders 1. Level One for the first 3 groups and New Agents 2. Level Two for the rest- based on specific need28 Joinees
  • 30. SECTION 4 Challenges
  • 31. Challenges to success in India Global/local interface – Governance – Management via SLA‗s – Effective delegation – Managing matrices Local Labor Market – Competition for key skills – Indian campus recruitment methodology (Day zero etc.) – Cost inflation – the y-o-y increases can shock any overseas client! (despite the denominator) – Language skills – Avoiding over recruitment – Attrition 30
  • 32. Challenges to success in India (cont.) Culture – Anglo Saxon Individualism vs Indian collectivism – Meritocracy vs Hierarchy – Individual accountability vs group loyalty – Explicit communication: conflict and disagreement are acceptable – Different concepts of time – Documentation & approval mechanisms (contract based rather than relationship based) Politico/Economic – Infrastructure (although lots happening) – Legal system (slow) – Data Security (are concerns valid?) – Lack of awareness of India Inc. 31
  • 33. A sustainable strategy… Market growth requires innovative resourcing strategy Parallel ramp-ups by new players can spike attrition – Yes, to some extent it is inevitable; but ‗no poach‘ clauses are not the solution Need concerted effort to INCREASE the employable pool (as differentiated from the available pool).– next slide illustration This is possible by using advanced Assessment & Testing tools; and – building robust Internal Training Engines – Industry-initiatives to bring up Graduate pool to required employable standards – Catch ‗em Young- introducing domain or vocation courses into mainstream education curriculum (this has already been done by technology players, and it is time for the Knowledge players to do the same) 32
  • 34. An Illustration of Expanding the pool 100% 80% 60% Reject 40% Direct Fit 20% 0% KPO Skills BPO Skills CRM 100% 80% 60% Direct Reject 40% Indirect Fit 20% Direct Fit 0% KPO BPO CRM Skills Skills Trainable Pool 33
  • 35. An Illustration of Expanding the pool and Keeping costs low Recruitment Wave Laterals- Direct Exp Laterals- Related Exp 1 70% 0% 30% 2 50% 20% 30% 3 20% 50% 30% Freshers/No Domain Exposure 34
  • 36. SECTION 5 Conclusions
  • 37. Conclusions UBS is committed to India and sees huge opportunities UBS‗ challenges are India‗s challenges NASSCOM has key role particularly in relation to standards and training Questions 36