PEOPLE STRATEGY

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1 AFRICAN DEVELOPMENT BANK PEOPLE STRATEGY CHRM DEPARTMENT April 2013

2 Contents Page Executive Summary 1. Introduction Rationale for a People Strategy Institutional Challenges 2 2. Employee Value Proposition What the Bank needs from its Employees What Employees seek from the Bank 4 3 AfDB s Priorities for Effective People Management Priority One: Leadership Priority Two: Performance and Accountability Priority Three: Employee Engagement and Communication Priority Four: Workforce of the Future 8 4 Implementation and Governance Effective Internal Communication Outcomes for 2013 to 2015 Phase One A Foundation for Phase Two 9 5 Conclusion 10 Annex One AfDB People Strategy - Draft Implementation Plan Annex Two - AfDB People Strategy - Consultation Process

3 Executive Summary The goal of the People Strategy is to position the Bank as the Bank as the Employer of Choice for those working on African Growth and Development. This will enable the Bank to attract and retain the best people to support the delivery of the Long Term Strategy as Africa s Premier Development Institution. The People Strategy has been developed jointly by the Senior Management Team who is collectively responsible for its implementation and has been informed by the views of the staff of the Bank, through focus groups and staff survey results. Successful implementation requires Board commitment and leadership as well as full staff engagement. The paper presents the rationale for a People Strategy and lists the institutional challenges the Bank currently faces: consolidating decentralisation, a tougher fiscal environment, the need to refresh staff skills in line with the Ten Year Strategy (TS), building a productive and contemporary work environment, and strengthening the Bank s knowledge management capacity. To meet these challenges, and continue to attract, motivate and retain top talent, the Bank has rearticulated its Employee Value Proposition (EVP) to highlight what the Bank offers its talented staff and what it expects in return, setting the high standards needed to become the Employer of Choice for those working on African Growth and Development. The People Strategy will be implemented in two phases. During the first phase, expected to be completed by mid-2015, the focus will be on the following four priority areas: Leadership: Transform the leadership culture to one where leaders work as enablers, coaches and mentors, modelling non-hierarchical, open leadership behaviours and hold themselves accountable for grooming the leaders of tomorrow. Performance and Accountability: Overhaul performance management with a greater emphasis on the people management responsibilities of managers, stronger links between performance and rewards; and introduction of clear line of sight between individual and organisational objectives. Employee Engagement and Communication: Strengthen staff engagement through effective and on-going employee communication and outreach by managers, improved induction and integration of staff, and implementation of inclusive policies and leadership styles. Workforce of the Future: Prepare for the workforce of the future by delayering positions, increasing flexibility in the Bank s employment policies, providing greater opportunities for staff learning, enhancing staff employability and developing more friendly work and family policies. Progress on the People Strategy will be tracked by the Senior Management Coordination Committee (SMCC) quarterly, and a report submitted to the CAHR for information. Progress will be reported to the Board twice a year. A full review of the strategy will be undertaken at the half way mark, when midcourse corrections will be made as needed. An agenda based on the challenges then current will be developed for further transformation across all the people management dimensions in the remaining two years of the People Strategy timeframe. SMCC members will take accountability for leading each of the four priority areas of the strategy, including, where necessary, convening groups of Bank staff to develop the associated action plans in greater detail. The Bank will develop a monitoring framework to measure progress. Successful implementation of the People Strategy depends on staff involvement and commitment. To this end the Bank will develop materials that effectively communicate the Bank s People Strategy to every employee. Each Staff member is expected to take personal accountability for making their part of the Strategy a success; deliver high performance, continually invest in their skills and employability and work collaboratively to deliver on the Bank s mission.

4 1. Introduction The goal of the People Strategy is to position the Bank as the Employer of Choice for those working on African Growth and Development. This will enable the Bank to attract and retain a high quality work force necessary to deliver on the objectives of the Bank s Ten Year Strategy (TS), of supporting Africa s ambitions to be a stable, integrated and prosperous continent with competitive, diversified and growing economies participating fully in global trade and investment. The People Strategy will ensure that the Bank maintains the work environment of top quality staff that has the necessary skills, focus training and commitment to deliver on the Bank s ambitious agenda for Africa as presented in its Ten Year Strategy (TS). People are at the heart of the work carried out by the Bank. This People Strategy aims to provide a coherent framework and an agenda for the many people challenges that will need to be addressed over the next 5 years to allow the Bank to realise its people vision. The People Strategy builds on progress made thus far and seeks to break new ground in positioning the Bank as the Employer of Choice for those working on African Growth and Development The goal of becoming the Employer of Choice is aspirational and motivating. It requires a multi-year commitment to continuous improvement and organisational transformation. Although people management has improved considerably at the Bank in recent years, there is still a way to go. Staff surveys have shown a need to improve employee engagement levels and reduce current levels of high stress. There is need to reduce bureaucratic procedures and simplify processes and accelerate automation to reduce transactional work and enable staff to be more productive. With changing client demands and expectations and a transforming work program there is need to unleash the innovation and creative potential of the organisation and fully realise the synergies of working multi-sectorally across the organisation. Comparison with other multilaterals show that the Bank s current people management practices sometimes fall short of the norms established in these organisations. There is an opportunity to both catch up and move ahead of our comparators. The Bank has strong values, a clear and energizing mission and a deep sense of purpose which drives its ability to attract experienced, talented and committed professionals. The institution has embraced diversity and inclusion which are key drivers in establishing greater employee engagement, commitment and improved performance. The Bank offers the chance for deeply satisfying work, significant skill development and experience. The Bank is characterised by a strong sense of community values that can be elusive in large international organisations. It is valued for the strong expertise of its workforce, its indepth knowledge of African issues and its responsiveness to its clients. Bank staff are connected to Bank s mission; they find their work interesting and relevant, and appreciate the Bank s diversity; job security and the Bank s generous benefits packages are recognised as a valuable asset. The journey to building the institution as the Employer of Choice has already begun. During the past five years, the Bank has made major strides on an array of Human Resources (HR) policies and practices. The Compensation and Benefits Framework has been updated, a Career Development Framework introduced, policies on Flexible work launched, the Medical Plan reformed, the Performance Management system automated and implemented more effectively, 360 degree feedback launched, Talent Management and Succession Planning commenced. Despite notable improvements, there is a distance to travel from good to excellent. To deliver the TS the Bank needs an excellent workforce that is able to deliver. This requires work across the landscape of institutional effectiveness including leadership and people-management capabilities, strengthening performance and accountability, building staff engagement, modernisation and streamlining of working practices. 1

5 1.1 Rationale for a People Strategy Organisational transformation to enable the Bank to deliver the TS and to remain relevant and effective within the next decade is a multi-year commitment, and requires a five year strategy on the people dimension that supports it. With the continuation of the decentralisation agenda, relocation to Abidjan and increasing difficult economic climate, this is an opportune time to articulate the importance of the Bank s most important asset, its people. The People Strategy identifies the significant shifts needed in the leadership and management of people in the institution to position the Bank as the Employer of Choice, and a magnet to attract the best development professionals to meet the future challenges that Africa faces. The People Strategy identifies the levers for change, sets out what needs to be done and what success would look like. The Strategy applies to all staff of the Bank. Key questions raised in the People Strategy include: What types of policies and practices are needed to attract and retain high quality staff? How will the Bank develop, empower and motivate its staff in delivering on the TS? What type of culture and values will the Bank need in future? What type of leaders will the Bank require? 2 How will the Bank encourage sustained performance and results? How will the Bank recognise and reward its people? How can the Bank significantly improve the quality of its staff communication making the best use of available technology in a decentralised institution? What are the Bank s existing strengths and how should it build on these? The recommendations outlined herein comprise an analysis of the people and workforce implications of the Long-term Strategy; evidentiary data extracted from the June 2012 Mercer s Review of the Implementation of HR Strategy Report and the research on benchmarks. Consultations with staff through focus groups, employee surveys and stakeholder interviews have revealed that management and employees would welcome a shift in people leadership practices. Employees cite concerns about the legacy of a hierarchical culture, which can give rise to cumbersome processes and a management style with a tendency to analyse rather than take action, blame rather than praise. They cite a risk adverse culture where innovation is often discouraged, so the workforce, though highly educated and talented, may deliver below its potential. This strategy recognises the centrality of employees knowledge, skills, attitudes and behaviour and sets out the Bank s commitment towards investing in staff. Staff are the Bank s most valuable asset and the Bank is committed to building on and improving each and every employee s capacity to contribute to deliver of the TS. Once endorsed, the next step will be to translate the People Strategy into a prioritised action plan for delivery, including a Human Resources (HR) Strategy; which will outline the Bank s HR policies and programmes needed to deliver the right workforce. The People Strategy will be reviewed quarterly by the SMCC to support continuous improvement and ensure alignment to the changing priorities of the Bank. 1.2 Institutional Challenges In the ten years since the Bank moved its headquarters temporarily to Tunis the Bank has expanded almost three times, with a much broader mandate and resources base. Around eighty five per cent of the Bank s staff is drawn from the continent. Over the past decade the Bank has steadily increased the representation of women which now stands at 28% in the professional cadre. Decentralisation has been an important component of the Bank s business strategy; the Bank currently has 32 active field locations of which 2 are regional resource centres and around 20% of the Bank s staff is field-based. The Bank is committed to continued decentralisation, moving staff, work and decision-making closer to clients. While

6 decentralisation, particularly presence in fragile and conflict affected countries is important, it raises new challenges in organisational management. Internal communication, managing staff virtually and securing organisational cohesion require greater effort, while ensuring uniformity of client engagement and quality standards requires more focus. Managing the expectations of almost 400 locally recruited staff with differential compensation and benefits and fewer career opportunities relative to their international counterparts makes it a challenge to maintain the goal of One Bank ; and working in much more difficult country environments raises a new set of issues of staff well-being and security. Being based in Africa, the Bank cannot take for granted the availability and quality of social infrastructure (transport, medical, education, etc.) that the majority of other multilaterals assume. This requires a greater investment and engagement by managers in supporting staff welfare than most other similar organisations. In 2003 the Bank was forced to relocate its headquarters temporarily to Tunis: a challenge that no other multilateral has confronted. This major shift was made by the institution while still continuing to deliver quality services to clients and retaining its AAA credit rating. The Temporary Relocation Agency (TRA) base in Tunis has lasted for over a decade. Given this context it has not been possible for the Bank to consider long term commitments in terms of staff facilities and infrastructure. At the same time the sustained uncertainty has made it difficult for staff to exercise long term personal choices and options including the location of their families, schooling for their children, and employment for their spouses. A sizeable proportion of Bank staff has chosen to live on single status, avoiding disruption to children s education and spousal employment though this causes considerable personal stress. In the past three years the political instability and related security concerns in Tunis have added further to staff concerns and anxiety. The resilience, flexibility and adaptability demonstrated by staff in managing themselves and their families through a long period of uncertainty punctuated by more recent crises cannot be underestimated. The return to Headquarters in Abidjan provides the Bank with the opportunity to address some of these challenges. Uncertainty will be lessened and the Bank will be able to provide staff with predictability on a number of critical dimensions of personal and family well-being. Furthermore, the Bank will be able to make longer term investments in the infrastructure for staff welfare. Nevertheless, in the near term the Bank and its staff will face significant transitional challenges: logistical, economic and cultural, which will need to be managed with care and understanding to ensure staff motivation and retention. In summary, the Bank faces a number of internal and external business challenges that affect its People Strategy: The consolidation of the Bank s decentralised organisational model, and evolution of the relationship between Headquarters (HQ) and local offices while maintaining the One Bank approach across all field offices. The need to manage the movement of staff between one assignment and another; between different offices and locations. Return to HQ is a significant logistical challenge but also can be a catalyst for changing working practices. An increasingly tougher fiscal environment for the Institution requires greater focus on Value for Money and effectiveness and efficiency. The TS will require the Bank to bring in fresh and additional skills in a zero-based budget context. At the same time growth in Africa will increase the demand for talented and skilled workers and increase the competition for recruiting the best talent. Maintaining a sustainable and skilled workforce and leadership continuity recognising that a sizeable number of staff will reach retirement age in the next five years. This will require a coordinated approach to succession planning, talent management and growing leaders internally. Increasing challenges for our people to balance the demands of their professional and personal lives, building and maintaining their personal resilience and improving their health and wellbeing. The importance of acquiring and developing skills sets required to deliver on the TS and to respond to clients demands for help with the how of development, alongside the what. 3

7 2. Employee Value Proposition The Bank s Employee Value Proposition (EVP) represents a pact between the institution and current and prospective staff, setting out the rights and responsibilities of both parties. It comprises much more than salaries and benefits; reflecting the entire employment experience that a staff member can expect, including work environment, managerial style and organisational culture; rewards and recognition, compensation and benefits; opportunities for learning and skills development, and career opportunities. For the Bank to become the Employer of Choice, the EVP needs to be attractive and competitive in all its aspects. The People Strategy seeks to articulate a stimulating and attractive EVP that balances what the Bank offers to current and potential staff with what it expects in return. 2.1 What the Bank needs from employees The Bank needs to have a motivated and diverse workforce with relevant skills that demonstrate Bank values and expected behaviours: 1. Excellence Commitment to the highest level of performance. Continuous investment in skills and competencies to remain cutting edge 2. Team Spirit Working together in a spirit of creativity and mutual respect to achieve common objectives. Working seamlessly across units and disciplines to provide integrated development solutions to clients. 3. Integrity Observing the highest standards of ethics, honesty and accountability at all times. 4. Professionalism Delivering the best quality service to our clients with utmost rigour and efficiency. 5. Transparency Acting with clarity, respect, equity and objectivity in designing, interpreting and applying Bank s policies and procedures. 6. Accountability and Innovation - Demonstrating a strong sense of personal accountability for delivery, with a focus on value for money, effectiveness and efficiency. Being open to developing and supporting innovative practices. The Bank s EVP is designed to attract, retain, engage and motivate staff to drive business success. In order for the Bank to be effective, it needs to create a culture of excellence and improvement and a commitment to action, results and high performance, where people are included and accountable for their work. The working environment therefore needs to be more devolved, horizontal, and streamlined, with faster processes, with a culture that is more open to challenge and innovation whilst valuing diversity. It is essential that Bank leadership inspire and prioritise the development of their staff. 2.2 What Employees will seek from the Bank In return, employees will expect to work with the best Employer in Africa. They should expect to see the Bank provide an opportunity for them to maintain cutting edge skills, provide experience and opportunities to make a difference that is hard to find in any other organisations, and a place to strengthen their employability. Bank employees should be sought after in the development marketplace as the most expert practitioners in African Growth and Development. Staff should expect rewards for high performance, rather than for tenure or entitlement. The Bank will be the Employer of Choice on the continent, offering a rich professional context for their work. 4

8 1. Making a Difference: The opportunity to work in a mission driven organisation: contributing to poverty alleviation and sustainable socioeconomic growth in Africa. 2. Competitive Rewards: A compensation and benefits structure designed to attract and retain top talent and reward individual and group contributions. Contemporary recognition programmes that celebrate success. 3. Skills Mastery: On-going investment in staff learning and development so that employees deepen their expertise and maintain their employability. 4. World Class Working Environment: Flexible, nonhierarchical, respectful and supportive working environment with family friendly employment policies that make the Bank an attractive and safe place to work. 5. Leadership Excellence: Leaders, who respect diversity, build trust, provide coaching and mentoring, are open to challenge, encouraging staff to think and act creatively, in ways that challenge convention and yield new and effective solutions. 6. Personal Autonomy: A culture that encourages staff to act, take risks, to take the initiative and to challenge, while also taking accountability for ensuring results and impact. 3. AfDB s Priorities for Effective People Management The People Strategy has identified 4 main priority areas, which balance both organisational needs against individual expectations to deliver the new EVP: Leadership Employee Engagement People Strategy Workforce of the Future Performance and Accountability 3.1 Priority One: Leadership The SMCC has taken accountability for transforming the leadership culture of the Bank, and has set out a new leadership proposition: The Bank s People Strategy of is its response to the crucial task of attracting and retaining staff of the very highest quality, and empowering them to carry out their mandate of transforming Africa. The Senior Management team is committed to offering leadership that creates an environment of openness and sharing, ensuring that individuals and groups are all involved, work in tandem, communicate freely and efficiently across the organisation. It pledges to put in place structures and systems which allow real flexibility and the flowering of talent, in an environment where management nurtures staff, and creates future leaders. It commits to monitoring, motivating and mentoring staff as they aspire to this goal. 5

9 Leaders as enablers: Deliver a transformation of the corporate culture from a control orientation to an enabling orientation that has employee engagement at its centre. Mentoring and coaching: Embody an enabling leadership style that mentors and coaches staff and aims for a win-win outcome. Role Modelling: Be role models, who will actively urge staff to work beyond sector silos, support other teams in their work, and celebrate institutional successes especially the success of other teams. Accountable leaders: Be leaders who welcome being evaluated by the number and quality of the leaders they groom. These leadership behaviours will be translated into specific behavioural requirements, and progress will be measured through management effectiveness and employee engagement indices and 360 feedback, and supported by development interventions. Each leader and manager will have clear people management goals in their annual objectives that link to these standards and goals. Some of the specific initiatives include: Transform the leadership statement into tangible actions that managers can enact with staff on an on-going basis. Review the quality of management and leadership training in the Bank, and re-orient it to more effectively build skills. Provide managers with coaches or mentors to provide confidential help to become more effective. Realign the dual career track to more clearly delineate the differing requirements of technical leaders vs. people leaders, and ensure the Bank is developing appropriate numbers of each, as required. Accelerate the development of potential future leaders, putting in place an on-going talent management system. Provide managers with the necessary tools, structure and support to manage and develop staff, in a decentralised environment. 3.2 Priority Two: Performance and Accountability Performance management will be deeply embedded in the Bank s culture and people management practices, and a stronger focus given to results and outcomes, and to team performance as well as individual performance. The performance of an individual will be assessed by how they achieve results, as well as, what they achieve. Performance expectations will continue to be raised, promoting a culture of continuous improvement. Personal accountability will be encouraged, and upward delegation will be discouraged. A fundamental review of the Bank s approach to performance management will be undertaken to support improved business performance. This will go beyond the mechanics of the process and will examine the whole system and culture of performance management, with stronger linkages to rewarding high performers and dealing with weaker ones. The Bank will annually set business objectives, which will be cascaded into complex, departmental, division, team and eventually individual objectives, to ensure that there is a clear line of sight between every employee and that results are reflective of the Bank s vision and overall mandate. Whilst a fair and rigorous performance management process is essential to protect the interests of both managers and employees, there is a sense that the current performance management process encourages adversarial relationships and lengthy litigious processes which reduce the effectiveness of the performance management system. The Bank will, identify best practice, and better monitor and collect lessons learned so that preventative strategies and a culture change (from entitlement to a focus on merit) can be put in place. The Bank will develop an approach to performance management such that it that adds value and improves performance at all levels: 6

10 Overhaul Performance Management: Underpinned by a review which looks at the whole system of performance management within the Bank, including process, culture and the enablers and barriers to achieving change. It will also provide for a stronger focus on continuous assessment and coaching, rather than form filling and compliance. Differentiate Performance: Create value by differentiating more strongly between effective and ineffective performance and encouraging positive action to address performance review outcomes, with a stronger connection between performance ratings, reward and progression in the organisation. Establish Line of Sight: A clear line of sight for every individual in the organisation to the Bank s overall objectives in delivering the TS. Track Managerial Performance: People management skills of managers will be an essential part of performance reviews. Additionally, feedback will be tracked through a Managerial Effectiveness Index and Employee Engagement index) that will provide information on performance and development needs. 3.3 Priority Three: Employee Engagement and Communication Staff contributes best when they are fully committed to the vision and mission of the organisation, are imbued with its values, recognise how their work contributes to the overall performance of the Bank and its work program and are involved in the decisions that affect their professional lives. An organisation that values and recognises staff contributions evokes a higher level of commitment and contribution. Employee engagement is a key priority for the achievement of building a high performance organisation. Previous Staff Surveys have shown that there is considerable room for improvement on this dimension. Employees report relatively low engagement in the Bank and many employees feel undervalued and under-utilised. During times of significant change effective communication is critical so that staff is made aware of the direction that the institution is taking and its underlying rationale. Clear communication that identifies the areas where the Bank welcomes constructive and honest engagement, make for more effective implementation. If endorsed, the return to HQ will be an important staff communication and engagement challenge. Employee engagement is critical to the success of all the other pillars of the People Strategy. In addition to mainstreaming employee engagement across the board, the Bank will focus on the following additional tasks to increase employee engagement: Support Newcomers and Staff in Transition: The Bank will improve on-boarding of new staff to encourage stronger absorption of Bank values and for faster integration. Increased support also for staff in transition between jobs, completing field assignments and returning from leave of absence. Regular Communication: Greater attention to regular staff meetings, sharing of professional knowledge and information within and across units, reinforcing the One Bank approach by leveraging the power of technology based on a location-neutral IT platform to reach everyone. Build a more Inclusive Organisation: Bank leaders will build a more inclusive organisation respecting varied perspectives, listening to different voices, engaging staff on issues which affect them, and encouraging honest and constructive discussion, particularly in areas where fundamental change is needed. Track Employee Engagement: The Bank will measure the success of units, departments and VP Complexes in building employee engagement, through a Staff Engagement Index in the annual staff survey. 7

11 3.4 Priority Four: Workforce of the Future The Bank has to compete effectively in the global labour market place to recruit and retain staff and to be the Employer of Choice. There are several trends worldwide as demographics and technology are transforming the world of work. Workplaces are changing to become increasingly democratic, with flatter organisation structures and significantly devolved levels of delegation of authority and accountability. Organisations offer flexible work arrangements with a focus on results and outcomes and less on inputs and working hours. Research shows that knowledge workers are primarily concerned about doing meaningful work; having greater autonomy; deepening their skills and maintaining their employability; and in receiving recognition for their work and contributions. Most comparable organisations are concerned with eliminating repetitive clerical job roles through process simplification and automation. Organisations are increasingly providing employees with flexibility in choosing benefits that best suit their needs. Organisations are grappling with concerns of dual career families and are working to create policies that support them. All these trends need to be taken into account as the Bank reviews its policies and processes in the context of the transforming workplace. The Bank will need to put in place in a phased manner, action to respond to the evolving nature of the workforce of the future: Delayering of Grades: Re-examination of the grading structure to provide more flexibility and encourage a less hierarchical work culture. Strengthen Rewards, and recognition: Build a robust reward, recognition programme, focusing on both monetary and nonmonetary awards with strong focus on delivering results, both individual and team, and incentives to encourage collaboration across complexes, departments and divisions. Support Work and Family: Develop flexible working practices that support the achievement of Work Life balance and/or support different ways of working. Review policy on employment of dual career families and promote health and wellbeing strategies. Rethink the Bank s Workforce architecture: The Bank will review its organisation structure to strengthen its ability to change its skills mix and find a better balance between core and contingent workforce. The Bank will also benchmark with similar organisations to review employment ratios, for example, of support roles to professional roles. Enhance Employability and staff skills: Significantly increased focus on staff development and management of talent (including on the job learning; mentoring and coaching, stretch assignments; staff rotations; field placements; investment in staff training). Consolidation of the Bank s decentralised delivery model that supports the delegation of responsibilities; working practices across spatial divides; and evolution of the relationship between HQ and local offices while maintaining the same one bank look and feel across all field offices. 8

12 The Bank is committed to ensure the progress of the four priority areas in the People Strategy with a view of moving purposefully to become the Employer of Choice. This strategy will take account of on-going pressures for efficiencies, cost reductions, value for money. It will deliver a modern organisation, fit for purpose that will attract, recruit and retain highly skilled and talented people, with the right skills to function in the right roles at the right time. 4. Implementation and Governance The People Strategy has been developed by the senior management of the Bank in response to the feedback of staff. Its implementation will be overseen by the SMCC, tracked quarterly, and will be reported to the CAHR on a for information basis thereafter. Progress on the implementation of the People Strategy will be reported to the Board twice a year. At the half way mark, a review will be undertaken, when mid-course corrections will be made as needed. The People Strategy action steps outlined in this document create the framework for implementation. It is recognised that the real challenge is in steady and committed implementation over several years. 4.1 Effective Internal Communication Significant cultural transformation of the type envisaged cannot be achieved without staff involvement and commitment. To this end the Bank will develop an internal communications strategy designed to ensure that all staff including those located in the field receives a thorough briefing on the People Strategy and its implications. Materials that effectively present the Bank s People Strategy will be sent to every employee. The Bank will use webcasts, Town Hall meetings with top management and departmental staff meetings to communicate the strategy. Employee involvement and suggestions will be sought for example through the intranet. Each Staff member is expected to take personal accountability for making their part of the Strategy successful, deliver high performance, and continually invest in their skills and employability and work collaboratively to deliver on the Bank s mission. 4.2 Outcomes for 2013 to 2015 Phase One The delivery of the People Strategy work programme is planned for the period 2013 to The development and implementation of the People Strategy will be done in two phases, with Phase One providing the foundation for further transformational change in the years beyond. Individual SMCC members will champion each of the four thematic areas of Leadership; Performance and Accountability; Staff Engagement and Communication; and the Workforce of the Future. CHRM working with staff across the Bank will develop an implementation plan for the next two years. The implementation plans will be underpinned by annual staff surveys on managerial effectiveness and employee engagement providing a robust a monitoring framework for both reviewing progress on delivering the strategy and its impact. 4.3 A foundation for Phase Two Phase two will take stock of the progress made in Phase one; adjust the goals in light of current realities, update, re-sequence and if needed, adjust priorities to deliver sustainable improvement across all people management dimensions within the 5 year timeframe. 9

13 5. Conclusion The People Strategy has endorsement at the highest level of management. It is a dynamic agenda for the Bank. Fundamentally it is about enabling a modern, efficient and fully effective Bank that can flexibly deploy talented people to deliver services in an increasingly tailored and customer centric manner, within an ethos of high performance, continuous improvement, innovation and high quality at all times. This will be set within the context of prudent use of funding to deliver value for money, efficiency and effectiveness. The SMCC is committed to sponsoring and delivering these key initiatives designed to position the African Development Bank as the Employer of Choice for those working on African Growth and Development and the premier development institution in Africa. In light of the above, the Board of Directors is invited to approve the present Strategy. 10

14 Annex One AfDB People Strategy - Draft Implementation Programme Advancement of the People Strategy will be tracked by the SMCC Progress will be reported to the Board twice a year. A full review of the strategy will be undertaken at the half way mark when mid-course modifications will be made as needed. An agenda based on the challenges will be developed for further transformation in the remaining two years of the People Strategy timeframe. The delivery of the People Strategy work programme is planned for the period 2013 to 2017, the development and implementation of the People Strategy will be done in two phases. Phase One 2013 to 2015 Phase one is the foundation for further transformational change in the years beyond. Individual SMCC members will lead the implementation in each of the four thematic areas of Leadership; Performance and Accountability; Staff Engagement and Communication; and the Workforce of the Future. Phase one will also develop an integrated internal communications and change management strategy aimed at all staff. Priority Action Time Frame SMCC Lead Leadership Development and launch of training and development programmes for: 3rd Quarter 2013 Capacity and capability in people management. - Skills and behavioural capabilities to support operational delivery, including those to support cross cutting project working and change management. - Realigned training and development programmes reflected in complexes training priorities, including a new development strategy for people managers Revised proposal for the Dual Career track with associated development programme. Mentoring and coaching programme, to enable learning and development to improve performance; and to make significant transitions in knowledge, work and thinking. Management effectiveness index established through staff survey. I

15 Performance and Accountability Inculcating people management goals, in managerial performance evaluation objectives. Refreshed KPI s for people management, providing a means for measuring the quality and performance of services. 4 th Quarter 2013 Continuing to embed the performance management process, and train and support managers in giving regular feedback and recognition. Overhaul performance management to ensure relevance, practicality and simplicity. Reward and recognition programme targeted at team achievements. Employee Engagement and Communication Communication of the People Strategy to all staff Integrated health and wellness programme. 2 nd Quarter 2013 On-going Improved induction on boarding programmes for new employees and managers and staff in transition. Regular meetings and open forums for staff to share knowledge, developmental issues and common issues. 2 nd Quarter nd Quarter 2015 Triennial staff engagement survey to determine level of employee engagement: i) their understanding of the Bank s goals and values, ii) level of satisfaction,, iii) increasing staff retention rates and enhancing staff relations, iv) increasing efficiency and improving productivity. Yearly staff engagement index to provide trend analysis to be used for evaluation to inform organisational development. Workforce of the Future Introducing flexible Total Compensation Framework for that balances the constraints within which the Bank operates, and providing foundations for longer term development of an integrated performance, reward and recognition strategy and incentives for working in fragile states. Review Learning and Development programme to ensure it is equipping staff with the right skills for their work in a timely and VFM manner. 3 rd Quarter st and 2 nd Quarter 2014 II

16 Continuing to streamline and improve recruitment processes Fully embedded approach to diversity and inclusion. Delayering of grades, reducing the number of levels in the Bank s job structure create broad bands rather than several pay grades, Rethink the Bank s workforce architecture organisation structure to strengthen its ability to change its skills mix and find a better balance between core and contingent workforce. Reward and recognition programme to help motivate staff to continually improve; to be innovative and manage resources creatively; build esteem; create workplace loyalty and build a sense of community. Introduction of a better approach to work-life balance, to ensure the right combination of participation in paid work and other aspects of staff lives Improve working arrangements and investing more in the work environment Employee mobility to allow employees to learn about themselves, develop new skills and extend their organisational networks. Development of the Human Resources Strategy Aligned with the TS and People Strategies Detailed analysis and action plans to transform / develop / implement HR policies and practices needed to deliver the People Strategy. Prioritisation and sequencing to achieve effective implementation Monitoring and evaluation framework to measure and assess results and impact of HR reforms. Staff engagement activities and general communication will commence after Board approval. Phase Two nd and 3 rd Quarter 2013 CHRM Phase two will take stock of the progress made in Phase one; adjust the goals in light of current realities, update, re-sequence and if needed, adjust priorities to deliver sustainable improvement across all people management dimensions within the 5 year timeframe. III

17 Annex Two AfDB People Strategy - Consultation Process The consultation process taken to develop the Bank s People Strategy is as follows: Input from staff focus groups, on the implementation of the Human Resources Strategic Framework and Action Plan : HQ Focus group discussions with Mercer December Discussions Vice Presidents, Directors and Managers December Input from SCO and recourse mechanisms December Input from CHRM staff December Input from selected ED s January Focus group discussions with FO s February Discussion session at the SMCC Retreat in the Movenpick Hotel July Input from the People Strategy Working Group August Feedback from discussion sessions held with complex management teams on the structure and possible areas of concentration of the People Strategy (conducted by HRBP s) October Input on SMCC People Strategy workshop January Consultation with SCO 3. Informal SMCC session on the draft People Strategy Feedback from 2010 staff survey that identified the following priority areas for development and improvement: i) Creating an environment of openness and trust to support a high performance organisation ii) Improving reward and recognition iii) Facilitating and improving upward communication iv) Improving staff retention IV

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