1Ernst & Young HR LeadingPracticesErnst & Young HR LeadingPracticesJeddah – Jan 2008Jeddah – Jan 2008
2AgendaAgenda• Introduction to E&Y• Recent HR Initiatives• Q&A
3An OverviewAn OverviewErnst & YoungErnst & Young
4§ Leading Global Firm All our offices and people,wherever they are located, practice under commonprofessional, ethical and independence standards.We utilize common methodologies that integrate riskanalysis and business analysis with statisticaltechniques and computer tools.§ Best People Highly experienced subject-matter-experts who will participate as members of our coreteam.§ Best Practice Recognized as a leading professionalservices provider with supporting methodologies andtoolsUSA / Canada§ 110 Offices§ 39,000 PeopleEurope§ 350 Offices§ 35 Countries§ 46,000PeopleCIS§ 19 Offices§ 8 Countries§ 2,300People Far East / Pacific§ 76 Offices§ 15 Countries§ 15,200 PeopleIndia Sub§ 20 Offices§ 3 Countries§ 3,200 PeopleMiddle East§ 18 Offices§ 13 Countries§ 3,300 PeopleAfrica§ 52 Offices§ 29 Countries§ 3,800 People Australia / NZ§ 15 Offices§ 4,800PeopleCentral /SouthAmerica§ 64 Offices§ 26 Countries§ 8,000 PeopleAbout Ernst & Young … cont’d110,000 professionals in 132 countries world-wide…...Ernst & Young - Who Are WeErnst & Young - Who Are We
5About Ernst & Young Middle East1. Baghdad 19232. Bahrain 19283. Beirut 19474. Doha 19505. Kuwait 19526. Amman 19537. Abu Dhabi 19668. Dubai 19669. Jeddah 196710. Riyadh 196811. Al Khobar 196912. Sana’a 197113. Muscat 197414. Sharjah 197415. Cairo 198516. Ramallah 199417. Damascus18. Libya 2007§ The Middle East practice is anindependent professional firm, whichhas been present in the region since1923 and is a member firm of Ernst &Young Consulting International.During the last 79 years, the firm hasevolved to meet the developmentswithin the area and today our clientsare served by over 3,000professionals, out of 18 offices in 13countries in the Middle East.Ernst & Young - Who Are WeErnst & Young - Who Are We
6G LOBAL MIND SE TEXECUTIONQQUUAALLIITTYYPPEEOOPPLLEEM arket LeadershipS HARE D VALUE SRe lationsh ip sRe pu ta tion S hareBra ndGGRROOWWTTHHO PERAT IO NAL EXC ELLE NC EACC O UNT -CE NT RIC ITYEXECUTIONThree S trategicThree S trategicD riversD riversS trategicS trategicO bjectiveO bjectiveThreeThreeFoundationalFoundationalE lem entsE lem entsO ur Strategy…O ur Strategy…C lear, F ocusedC lear, FocusedG LOBAL MIND SE TEXECUTIONQQUUAALLIITTYYPPEEOOPPLLEEM arket LeadershipS HARE D VALUE SRe lationsh ip sRe pu ta tion S hareBra ndGGRROOWWTTHHO PERAT IO NAL EXC ELLE NC EACC O UNT -CE NT RIC ITYEXECUTIONG LOBAL MIND SE TEXECUTIONQQUUAALLIITTYYPPEEOOPPLLEEM arket LeadershipS HARE D VALUE SRe lationsh ip sRe pu ta tion S hareBra ndGGRROOWWTTHHO PERAT IO NAL EXC ELLE NC EACC O UNT -CE NT RIC ITYEXECUTIONThree S trategicThree S trategicD riversD riversS trategicS trategicO bjectiveO bjectiveThreeThreeFoundationalFoundationalE lem entsE lem entsO ur Strategy…O ur Strategy…C lear, F ocusedC lear, FocusedErnst & Young - Who Are WeErnst & Young - Who Are We
7Ernst & Young StructureErnst & Young StructureAssurance TAX Business Advisory ServicesPrivatization and RestructuringTransaction Advisory ServicesTechnology and Security Risk ServicesFraud Investigation and Dispute ServicesBusiness Management Advisory ServicesTechnologyEnablementBusinessImprovementProgramAssuranceFinanceFunctionsHuman CapitalServicesPeople Strategy• HR Strategy Articulation• Organization Design• Job Evaluation & GradingPerformance / Reward• Compensation & Reward• Performance Measurement & appraisal• Competency & Assessment Centers• Training Development Plans• HR Policies & Procedures
8Ernst & Young StructureErnst & Young StructureService LinesSub Service LinesIndustriesGeographiesSupportAssurance TAX Business Advisory ServicesPrivatization and RestructuringTransaction Advisory ServicesTechnology and Security Risk ServicesFraud Investigation and Dispute ServicesBusiness Management Advisory ServicesOil andGasTransportationFinancialServicesGovernmentHealthCareRealEstateIslamicbankingFamilyBusinessJeddahKhobarRiyadhAmmanDubaiMuscatKuwaitDohaBahrainCairoHuman Resources Legal Marketing Finance & Acct Risk & QualityIllustration
12IntroductionThe project18 global ranksIntroduced from 30 June 07Definition of ranks
13Project Overview – the drivers for changeHarmonised 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
14Rank 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 theircredentials• Better definition of our core business services, enabling us toappropriately invest in development of this important population.• Greater clarity around career models will help us recruit and retaintalent.
15Rank Harmonisation: The Benefits…For our people…• Greater clarity around their career path and what is required tomove from one rank to another. This supports our efforts to promotepeople 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 anddevelopment opportunities, enabling us to better share and leveragematerials (eg Intro to Manager).
16Career Path - DefinitionCareer Path - Definition4EY Global has 5 career ranks for client serviceemployees and are primary career milestones4A change in rank means a change inresponsibility, competency level and authority4Promotion is a movement from one rank toanother4There will be a ‘grow or go’ ethos at each rank4EY Global has 5 career ranks for client serviceemployees and are primary career milestones4A change in rank means a change inresponsibility, competency level and authority4Promotion is a movement from one rank toanother4There will be a ‘grow or go’ ethos at each rank
17Client Service RanksPartner/PrincipalSenior ManagerManagerSeniorStaff/AssistantInternExecutive DirectorExecutives
184444332211 55ME BAS Career PathME BAS Career PathConsultant1&2SeniorConsultant1&2ManagerPartnerFast TrackDirectorSeniorManager1&22 years 3 years 2 years 4 years ~12 years to Partner3 years 4 years 2 years 4 years ~14 years to Partner Interim TrackRankCodeStaffStaffPartnerPartnerSeniorSeniorManagerManagerSeniorManagerSeniorManagerEx.DirectorEx.DirectorRankRankGradeGradeSADCSADC SMDCSMDC EMDCEMDC PACPAC
19Mapping of BAS Grades – Middle EastMapping of BAS Grades – Middle EastCurrent Role /Business TitleProposedGlobal RankProposedGradeAll SSLs(NEMIA)ProposedGFISRankToday’sProgressionTrack*InterimProgressionTrack**Fast Track***Relevant Yearsof ExperiencePartner Partner Partner (5) 111 16+ Track 14+ Track 12+ Track 12+Director ExecutiveDirectorDirector (4) 1312+ 1 1 12+ExecutiveManager(SM2) 212Senior ManagerSeniorManagerSenior Manager(4)(SM1) 211Up to 4 Up to 4 Up to 4 8+Manager Manager Manager (3) 321 Up to 3 Up to 2 Up to 2 6-8Supervisor (SC2) 422(SC1) 421(Ex.2) 422Senior Analyst SeniorSeniorConsultant (2)Executive(TAS) (Ex.1 ) 421Up to 4 Up to 4Up to 3 2-6Analyst (C2) 442(C1) 441(An.2) 442Assistant AnalystStaffConsultant (1)Analyst (TAS)(An.1) 441Up to 3 Up to 3 Up to 2 0-2TraineeInternsInternIntern 511
20Language and Terminology• Ranks – our primary career milestones internally – they are notexternal job titles.• Grades – subdivisions of ranks that represent the way we measurethe 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 thecompetency levels required.• Promotion – movement from one rank to another.• Progression – movement between grades (within a rank).
Business Advisory ServicesGlobal BAS CompetencyModel
2222Each competency includes, with equal weight and importance:Skills Consulting and technical skills we need toeffectively deliver the BAS value proposition toclients and to sustain the BAS business. E.g.Networking.Behaviours The way in which we deliver to our clients and worktogether – 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 thecommercial relevancy and innovation of our workwith clients. E.g. Informed opinions to driveconversation/dialogue.What is a Competency?
2323BAS Competency Model OverviewThe BAS Model contains following clusters:TechnicalSkillsCustomerDomainKnowledgeSupplyChainDomainKnowledgeFinanceDomainKnowledgeLevers ofChangeThe competencies we expect all of ourBAS consultants to develop duringtheir career as a BAS consultantindependent of the part of theorganisation they ‘belong to’CoreBusinessAdvisoryFinance - Finance Process EffectivenessFinance - Forecasting, Planning, BudgetingFinance - Performance ManagementFinance - Financial Statement CloseFinance - Finance Transformation / SSCFinance - Finance Rapid AssessmentFinanceDomainKnowledgeThe BAS Clusters and Associated Competencies
2424The BAS DNAValued RelationshipsWe are at our best when we;• are both committed to along term relationship• etcSustainable ImprovementWe are at our best when we;• Make good and lastingchange happen in ourclients• etcTeam ChemistryWe are at our best when;• The EY team and clientteam become a high-performance team• We develop highly capableand very flexibleconsultants• We live our valuesReal InsightWe are at our best when we;• dedicate ourselves tocreating innovative andactionable insight for ourclients• etc31 24We can become more distinctive in theAdvisory market by emphasising 4 keycharacteristics
2525BAS Competency ModelDevelop Team Chemistry:How we attract, grow and retain ourpeople and develop highperformance teamsDeliver Measurable SustainableImprovement:How we develop and delivervaluable and sustainable solutionswith our clients that have a lastingimprovement on performanceBuild Valued Relationships:How we work with our clients tocreate mutually valuablerelationshipsCreate Real Insight:How we create, develop and captureinnovative and relevant knowledgeand solutionsMaximiseBusinessOperations:How we buildand operate ourbusiness todeliver bestvalue for EY,BAS our clientsand our peopleTechnical:The industry andofferingknowledge, skillsand experiencewe bring to bearin working withour clients
2626BAS Core CompetenciesDevelopDevelopTeamTeamChemistryChemistryCreate and direct high-performing teams acrossEY service lines andbusiness units andintegrating senior clientstakeholdersBuild and manage high-performing teams, across EYservice lines and with client people, living the BASDNA consistentlyRole model BAS Values, counsel junior team members and manage BAS andclient team dynamicsActively extend your EY network, buddy with new hires and build your personal brand with seniorcolleaguesBuild your peer network and take an active and supportive role inthe team to enhance team effectivenessDeliverDeliverMeasurableMeasurableSustainableSustainableImprovementImprovementCreateCreateReal InsightReal InsightUse deep understanding tocreate innovative,strategically important,client-focused solutionsacross service lines andbusiness unitsContribute to BAS insightsthrough research andactive participation indevelopment sessions,build technical knowledgeBuildBuildValuedValuedRelationshipsRelationshipsLeverage networks tomaximise benefit for bothEY and clients, crystalliseand shape opportunities todrive long-term valueLeverage relationshipsbased on keen insight intoclient value drivers andBAS strategy, be adept atcommercialisingrelationshipsBuild and strengthenrelationships that can beleveraged to create valuefor EY and clients, identifyand explore areas ofopportunityBuild strong relationshipswith BAS and client peoplethrough personal integrity,begin to identify areas ofmutual opportunityKey focus on internal relationships and gaining understandingof client relationship managementMaximiseMaximiseBusinessBusinessOperationsOperationsLeverage experience to influence BAS insights, ownclient deliverables that demonstrate strong, currentinsight and awareness of environmentChannel experience into innovative BAS insights and be adept at tailoring forspecific client needs, demonstrating real empathy and understandingLead development of fresh insights to build internal and marketprofile as an SME, anticipate changing client needs to ensurecutting-edge point of viewUnderstand, interpretand evaluate client andteam needsEngage with client andteamBuild ValuedBuild ValuedRelationshipsRelationshipsShape solutionsGenerate ideasCreate RealCreate RealInsightInsightMaximiseMaximiseBusinessBusinessOperationsOperationsDevelop TeamDevelop TeamChemistryChemistryDeliverDeliverMeasurableMeasurableSustainableSustainableImprovement:Improvement:Strategic andoperational planningCoach self and othersAnalyse dataDemonstratecommercial awarenessand rigourCommunicateeffectivelyConduct researchSkills Summary for Core Competencies
Business Advisory ServicesAccelerated LeadershipProgram
28The ALP is an exclusive programme for ourstrongest leadership talentThe ALP is an exclusive programme for ourstrongest leadership talentAn accelerated but not exclusive route topartnershipAn accelerated but not exclusive route topartnershipThe ALPPurposeGoalA firm-wide, three year programmeAccelerating the development of leadershipand business skillsIncrease the diversity and power of ourleadership strengthAcceleration
29Overview of the ALPOverview of the ALPFormal learning(skills workshops)Informal learning(on-the-jobexperiences)
32The ALP is a 2-way dealThe ALP is a 2-way dealVALUEEXCHANGE• Partner Sponsorship• On the job challenge• World-class training• High quality supportand coaching• Ownership of personaldevelopment plan• Courage to moveoutside comfort zone• Professionalcommitment to theprogramme• Mindset whichembraces ambiguityand new challengesFirm Individual
332007 Selection Process2007 Selection Process
34PerformancePotentialValues• 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 actionAssessed against three dimensionsAssessed against three dimensionsThe ALP is now open to individuals in both client-facing and businesssupport roles who are up to 12 months either side of promotion to manager
35Dimensions of Leadership PotentialDimensions of Leadership PotentialAbility EngagementAspirationHIPOAlthough only 29% of current high performers are also high-potentials, 93% of high-potentials are high performers
36Three ways in which high performers fall shortThree ways in which high performers fall shortAspirationEngagementAbilityMisaligned StarsMisaligned StarsEngaged DreamersEngaged DreamersUnengaged StarsUnengaged StarsEngagementAspirationAbilityAbilityAspirationEngagement
37Is your counselee really demonstrating high potential?Is your counselee really demonstrating high potential?ABILITYSkill to operate at a higher andmore complex level ofperformance than required inthe current roleASPIRATIONHigh need for achievement and/orexpressed desire to influence theorganisationENGAGEMENTStrong commitment to andidentification with the organisation,combined with a willingness to putadditional effort into workAnalytical rigourSelf-awarenessHigh performancein current roleSelf confidenceMaturityStrongintellect InitiativeCommitment toself-developmentThirst for learningAppetite for newexperiencesChallengesstatus quoTrack record ofasking for, andlearning from,feedbackMakesa differenceBraveryAlignmentwith ourvaluesGoes theextramileInclusivenessPassionateabout EYPositiveinfluencer ofpeer groupEnthusiasticsupporter ofchangeEnergy++Developsand buildsinfluentialrelationships
38Selection criteria for ‘07 ALPSelection criteria for ‘07 ALP12 months pre/postpromotion to manager(determined w.r.t1 October 2007)Nine Box Model ratingmust be ‘High Potential’or ‘Best in Class’Open to client-facingand businesssupport staffPerformance ratingmust be 5 or 4
39The 2007 selection process combines bothindividual self-selection and BU nomination andsponsorshipThe 2007 selection process combines bothindividual self-selection and BU nomination andsponsorshipSTEP 4BU Invitation to Selection(by 31 July)STEP 5Selection(August/September)STEP 6BU Nomination(By 14 September)STEP 7National Review(By 25 September)STEP 8Mike Cullen Confirmation(28 September)STEP 9ALP Conference(29/30 October)STEP 1Firm-Wide Communication(May)STEP 2Counselor Notification(June)STEP 3Round Tables(July)
40Questions to help counselors with selectionQuestions to help counselors with selectionDoes your counselee meet thebaseline selection criteria atthis stage?ALP participants will gainexposure to Mark Otty andthe UK Leadership Team.What would Mark think of thisindividual and those whoselected them?If a client asked for a Managerfrom your group to work on a keyproject, would you immediatelythink of this person?Is your counselee ready to focuson developing their leadershipskills and is ALP the rightenvironment for them to do so?Do the partners believe thatthis person is demonstratingstrong potential now to be asenior leader of the future?