Ernst & Young: Managing Talent In The Downturn


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Presentation from the CIPD Central London Branch L&D Group: Ernst & Young, Managing Talent in the Downturn. For more information on the L&D Group:

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  • Background on me Who I am Role in the organisation How long I’ve been involved in ALP and wider talent programmes Background on EY Big Four Firm – Globally No.1 130,000 people worldwide in over 140 countries with combined global revenues of $21.1bn In the UK, we have approximately 9,000 people across the UK. Our services to clients include auditing, tax, advisory, and transaction support work. Our structure Our structure is managed on levels 1-5, that is: Level 1 – new graduate Level 2 – qualified accountant Level 3 – manager Level 4 – Senior Manager/Director Level 5 – Partner Where we concentrate with ALP is the Level 2/3 space so that by the time they graduate from the programme, they are at Level 4 and heading towards partnertrack.
  • The EMEIA FSO is the third largest Sub-Area in EY and is the largest of the five FSOs. We have the largest Assurance and the largest Advisory practices in EY, and significant growth plans for both Tax and TAS. EMEIA FSO brings together nearly 400 partners and 5,500 financial services professionals from across 12 markets. EMEIA FSO serves clients across the breadth of our accounts landscape, from core accounts to Office of the Chairman Accounts and across the four FS sectors – Asset Management, Banking and Capital Markets, FS Government and Insurance EMEIA FSO has 206 priority accounts generating $1bn in revenues: 22 Office of the Chairman Accounts 31 Global Accounts 37 prioritized inbound accounts 110 Strategic Growth Market Accounts 43 National Priority Accounts EMEIA FSO is the largest exporter of revenues to other EY Sub-Areas - $500m We offer seamless, consistent, high-quality service across EMEIA and the rest of the World Our business is well connected with the other FSOs (Americas, Japan, Far East and Oceania) as well as the financial services industry (FSI) practices in CSE, CIS, Middle East, Africa, India and the Nordics
  • The 12 month criteria can be practically applied as Managers promoted on or after 1 October 2006 and for Executives (Level 2’s) who it is strongly expected will be promoted to manager on or before 1 October 2008. What about managers who have joined EY externally? Use judgement and common sense to determine whether they are junior managers rather than experienced managers and use ALP eligible peers as comparators. What about those who will now be deemed too senior for ALP but too junior for partner track? Suggest that these are picked up outside of the roundtable via a 3 way development conversation between the individual, their coach and HR.
  • Taken from the Corporate Leadership Council’s Model of Employee Potential ABILITY Combination of innate characteristics & learned skills an employee uses to carry out their day to day work Innate characteristics: Mental/cognitive ability Emotional intelligence Learned skills: Technical/functional Interpersonal ASPIRATION Extent to which employee wants or desires: Prestige & recognition in the organisation Advancement & influence Financial rewards Work life balance Overall job enjoyment ENGAGEMENT Consists of 4 elements: Emotional commitment – extent to which employees value, enjoy & believe in their organisations Rational commitment – extent to which employees believe that staying is in their own self interest Discretionary effort – willingness to go above & beyond call of duty Intent to stay – desire to stay with the organisation
  • Ernst & Young: Managing Talent In The Downturn

    1. 1. Ernst & Young Managing Talent in a Downturn October 24, 2009
    2. 2. Agenda October 24, 2009 Presentation title Page <ul><li>The Accelerated Leadership Programme Journey </li></ul><ul><li>The Partner Track Journey </li></ul><ul><li>Recent Developments (impact of credit crunch) </li></ul><ul><li>Future of Leadership Development? </li></ul>
    3. 3. Ernst & Young October 24, 2009 Presentation title Page Americas EMEIA Far East Japan Oceania Global leader in assurance, tax, transaction, and advisory services <ul><li>130,000 people working together to: </li></ul><ul><li>Help our clients deliver on their promises to their markets and stakeholders </li></ul><ul><li>Help each other develop and succeed personally and professionally </li></ul><ul><li>Make a difference to the communities in which we live and work </li></ul>
    4. 4. EMEIA Financial Services Organization (FSO) October 24, 2009 Presentation title Page Third largest Sub-Area globally and largest of EY’s five FSOs 393 partners and 5,500 people across 12 markets and four industry sectors with revenues of US$1.34bn Tom McGrath EMEIA FSO Sub-Area Managing Partner Some of our clients 3i, ABN Amro, Allianz, Aviva, Bank of England, Bank of Ireland, Barclays, BNP Paribas, HSBC, ING, Intesa Sanpaolo, Goldman Sachs, Lloyds Banking Group, Munich Re, Nomura, Santander, Swiss Re, UBS, Zurich Financial Services Our markets Belgium, Channel Islands, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, Switzerland and the UK
    5. 5. What is the Accelerated Leadership Programme? <ul><li>ALP provides an accelerated but not exclusive route to partnership - there will continue to be other routes, reflecting the fact that people develop at different rates and in different ways. </li></ul>October 24, 2009 Presentation title Page The ALP Purpose Goal The ALP is a firm-wide, three year programme targeted at individuals who are up to 12 months either side of promotion to manager. Its purpose is to accelerate the development of leadership and business skills amongst those whom we believe have the strongest potential to become partners or senior leaders of the firm in the future. Its ultimate goal is to increase the diversity, flexibility and power of our leadership pipeline, underpinning the success of our Market Leadership strategy. Promotion
    6. 6. 70/20/10 Philosophy October 24, 2009 Presentation title Page 70% On-The-Job Learning 20% Enablers 10% Workshops & Events <ul><li>These include: </li></ul><ul><li>The Essence of Competitive Strategy </li></ul><ul><li>Personal Impact & Influence </li></ul><ul><li>Transformational Coaching </li></ul><ul><li>Leadership Network Events </li></ul><ul><li>Support provided by: </li></ul><ul><li>Partner Mentor </li></ul><ul><li>Action Learning Group </li></ul><ul><li>Counselling Manager </li></ul><ul><li>Leadership Development Manager </li></ul><ul><li>Development Portfolio </li></ul><ul><li>For example: </li></ul><ul><li>Secondments </li></ul><ul><li>Overseas Assignments </li></ul><ul><li>Adopt-a-Business </li></ul><ul><li>Stretch Assignments </li></ul><ul><li>‘ Stepping up’ roles </li></ul>
    7. 7. Stakeholders Engaged in the ALP October 24, 2009 Presentation title Page ALP Participant Devotes time to specifically mentor the ALPer with coaching, support, challenge and (when requested) advice. Partner Mentor Designs, manages and evaluates the programme with Partner Champions and wider stakeholder group. Leadership Development Team Sponsors the programme, ensures it is aligned to our strategy and proactively champions ALP in the business Partner Champion Facilitates ALP action learning groups to maximise individual and collective learning Action Learning Group Facilitator Supports the ALPer’s learning and development actively through brokering work experience, coaching on-the-job and managing performance and long-term career potential. Counselor
    8. 8. Evaluating Potential October 24, 2009 Presentation title Page The Corporate Leadership Council’s Model of Employee Potential (2005 Research Programme: 59 blue-chip organisations, 11,000 employees) <ul><li>Single point of entry onto the programme in July </li></ul><ul><li>All participants assessed for ‘continuance’ every 12 months </li></ul><ul><li>Criteria for both Selection and Continuance include: </li></ul><ul><ul><li>Strong Performance · Leadership Potential </li></ul></ul><ul><ul><li>Alignment with Values · Commitment to the programme </li></ul></ul>Ability Engagement Aspiration HIPO
    9. 9. October 24, 2009 Presentation title Page <ul><li>Successes </li></ul><ul><li>Partner Champion Role </li></ul><ul><li>Explicit “2-way Deal” </li></ul><ul><li>Exceptional stretch opportunities </li></ul><ul><li>Differentiated workshops </li></ul><ul><li>Governance Process </li></ul><ul><li>Strong brand </li></ul><ul><li>Challenges </li></ul><ul><li>Action Learning Groups </li></ul><ul><li>Managing work experience </li></ul><ul><li>Selection and Continuance processes, namely: </li></ul><ul><ul><ul><ul><li>Managing ‘reject’ or ‘discontinue’ messages at Selection and Continuance Review </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Educating the business on how to spot potential </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Diversity & Inclusiveness </li></ul></ul></ul></ul>
    10. 10. FS Class of 2007 October 24, 2009
    11. 11. Class of 2007: context and gap analysis <ul><li>Assessment culture </li></ul><ul><li>PTDW </li></ul><ul><li>SMC </li></ul><ul><li>“ Industry” around preparing for assessment centres </li></ul><ul><li>Consistent messages to business </li></ul><ul><li>Consistent Feedback to candidates </li></ul><ul><li>Commercial </li></ul><ul><li>Think and behave like business owner </li></ul><ul><li>Confidence outside own specialism </li></ul><ul><li>Flexibile </li></ul><ul><li>Curious </li></ul><ul><li>Think and behave like a business leader </li></ul><ul><li>Authentic </li></ul>October 24, 2009 Presentation title Page
    12. 12. What is the Class of 2007? October 24, 2009 Presentation title Page <ul><li>A Best in Class development programme to address development needs identified for the FS Partner Track population. </li></ul><ul><li>Designed around the three core and equally important elements of partnership: </li></ul>Account/Service Line Leadership Business Leadership Technical Leadership
    13. 13. What is the Class of 2007? (cont) October 24, 2009 Presentation title Page <ul><li>Focused on providing you with challenging experiences </li></ul><ul><li>Supported by real investment in developing your leadership capability </li></ul><ul><li>Based on an “Apprentice” model with significant Leadership Team, Counsellor and Super-Counsellor input </li></ul><ul><li>Coherent and integrated - not a series of discrete events. </li></ul>
    14. 14. FS Class of 2007 – Programme Framework October 24, 2009 Presentation title Page Course provider to be confirmed Course provider confirmed Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Launch Event Developing a Leading Mindset Leading in Professional Services Learning to Lead Groups Learning to Lead Business Challenge Breadth Experiences Present to FS Leadership on Breadth Experiences Running Your Own Business Day in the Life of a Partner Inspiring Leadership Learning Events Secondment Opportunities Knowledge Development: Reading List, EY Partner Track Speaker Events/Insight Seminars Programme Close Masterclasses
    15. 15. What Support Will I Get on Class of 2007? October 24, 2009 Presentation title Page Class of 2007 Participant Counsellor Super- Counsellor Learning to Lead Group Class of 2007 “Dream Team”
    16. 16. The Credit Crunch Effect (or how to run a leadership development programme with no resources or budget) <ul><li>The dilemma: </li></ul><ul><li>Significantly less budget and resources to run programmes </li></ul><ul><li>Recognition that engaging and developing talent is still vital for long term growth </li></ul><ul><li>Approach: </li></ul><ul><li>Be imaginative! </li></ul><ul><li>Focus strongly on the 70% (OTJ) and 20% (enablers) </li></ul><ul><li>Increase ownership in the business </li></ul><ul><li>Engage and be honest with participants </li></ul><ul><li>Encourage them to led self-development </li></ul><ul><li>Join forces with other organisations and networks </li></ul>October 24, 2009 Presentation title Page
    17. 17. Discussion <ul><li>What do we mean when we talk about ‘leadership’? </li></ul><ul><ul><ul><ul><ul><li>Current model or future model? </li></ul></ul></ul></ul></ul><ul><li>What do we mean when we talk about ‘potential’? </li></ul><ul><ul><ul><ul><ul><li>How can we help the business identify this? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Issues with recruiting in our own image/unconscious bias? </li></ul></ul></ul></ul></ul><ul><li>What is the future of leadership development/talent management? </li></ul><ul><ul><ul><ul><ul><li>What lessons do we learn from this downturn about our approach to developing potential? </li></ul></ul></ul></ul></ul><ul><li>How do we engage the next generation of leaders? </li></ul><ul><ul><ul><ul><ul><li>The market is now turning - what will they remember about this period that will make them remain with their current employer? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cross-generational issues (e.g. Gen Y/Gen X trends)? </li></ul></ul></ul></ul></ul>October 24, 2009 Presentation title Page
    18. 18. Thank you October 24, 2009