Performance with Integrity Executive Overview

Transcription

1 Performace with Itegrity Executive Overview

2 PERFORMANCE WITH INTEGRITY EXECUTIVE OVERVIEW Cotets Page Itroductio 01 The Busiess Case 01 The Toolkit Cotet 02 Establishig a Culture Likig People ad 03 Performace Maagemet to Values The Performace Roadmap 03 The Values-drive Performace 04 Maagemet Programme The Values-based Performace Cycle 04 The Gold Stadard: Evaluatio of Progress 05 Measurig the Effectiveess of the Values 06 Key Fidigs ad Coclusio 06 Ageda for Chage 07 Refereces ad Readig 07 The values-drive orgaisatio i practice 08 The Gold Stadard 10 The greatest challeges we face today are crises of ethics. What are our moral values? How do we decide what s right ad fid the courage to do it? How do we display leadership with itegrity? How do we urture busiess ad corporate cultures where doig the right thig becomes part of our orgaisatioal DNA? How do we build a fair ad sustaiable future for all? Ethics is o loger optioal, it is absolutely crucial to the sustaiability ad success of our busiesses, our public-sector services ad every other istitutio ad eterprise. 1 Professor Roger Steare, The Corporate Philospher

3 PERFORMANCE WITH INTEGRITY 01 Itroductio Extesive work is beig udertake withi the fiacial services sector, ad other idustries, to re-direct or ehace orgaisatioal culture through embeddig values ad associated behaviours ad likig these to every elemet of people maagemet. This short guide provides a overview of a larger City HR toolkit etitled Performace with Itegrity which specifically explores the likage betwee corporate values ad idividual performace. It serves as a oversight documet for the Board ad Seior Maagemet. Developed by the City HR Associatio o behalf of the City Values Forum, the toolkit is oe of a series of itervetios which looks at how City Orgaisatios ca re-build trust with customers ad employees as well as stakeholders i Govermet, the regulators ad the broader busiess ad social commuity. Aimed at the Board from a strategic perspective, ad fuctios such as Huma Resources from a developmet ad maagemet perspective, the toolkit covers every facet of creatig a values-drive culture ad likig this to performace ad reward. It is recogised that may orgaisatios have made sigificat i-roads o their jourey i this respect, whilst others are just takig their first steps. The toolkit has bee structured i a way that provides a detailed overview of every stage of the jourey for those gettig started whilst providig a checklist ad self-evaluatio tool for those at a more advaced stage. The busiess case Each orgaisatio will have its ow reasos for creatig a values-drive culture. I light of the recet fiacial crisis, the majority of City orgaisatios recogise that this is oe way to restore trust with their customers ad wider stakeholders. For may the key objectives will be to:- Create a sustaiable busiess by egatig losses icurred by idividual risk-takig, iappropriate advice ad the loss of good custom; Maage people risk by buildig a successio pipelie of leaders ad producers who behave i accordace with the orgaisatio ethos ad who uderstad their persoal accoutability for dischargig their resposibilities; Operate withi the rules ad priciples of the regulator, corporate goverace ad stadards set by professioal bodies as well as withi the law; Measure the effectiveess of idividual performace ad people maagemet policies agaist corporate values; Esure that decisios behid idividual progressio ad reward are trasparet, cosistet ad appropriately applied ad uderstood by the employee ad wider stakeholders. Above all, may just simply believe that it is the right thig to do for the customer, employee, shareholder ad society as a whole.

4 02 PERFORMANCE WITH INTEGRITY The toolkit cotet I buildig this toolkit, City HR coducted structured iterviews with 20 fiacial istitutios ad 5 blue chip compaies to research approaches to performace liked to values, may of whom provided case studies o the key features of their programme. Furthermore, bechmarkig data was provided by over 50 leadig baks ad asset maagemet firms o the existece of their values ad behaviours; the style, process ad compoets of their performace maagemet programme; ad the extet to which this was liked to reward. This research was supplemeted by referece to a umber of leadig fiacial sector reports icludig the Salz Review 2, the Parliametary Commissio o Bakig Stadards 3, the Walker Report 4 ad the Associatio of British Isurers Report o Board Effectiveess 5 all of which proved essetial readig o the role of leadership i creatig the right culture ad addressig the issues arisig from the fiacial services crisis. These sources also provided may isights ito the factors which cotribute to a values-drive culture. I terms of a Performace with Itegrity programme, the key elemets idetified by City HR correlated with those of the FCA which are: the toe set from the top regardig values ad behaviours; esurig this is commuicated ad cascaded throughout the orgaisatio ad promoted by the leadership; the havig the right performace ad reward programmes to embed the desired behaviours. 6 To this ed, two publicatios have bee produced. 1. This short guide which looks at what the Board ad Seior Maagemet might like to cosider ad is the purpose of this publicatio. 2. A larger toolkit which provides detailed guidace o how to facilitate people ad performace maagemet liked to values. Both publicatios aim to help: Those gettig started: A message to the Board* as to why cosideratio should be give to a values-led eterprise i the overall busiess model; A Performace Roadmap o how to avigate the process; The Busiess Case for adoptig such a programme; Guidace otes, templates, examples ad case studies for those startig out*. Those already o the jourey: Bechmarkig data o the philosophy ad progress beig made i fiacial istitutios as well as the style ad key compoets of their performace maagemet process*; The Ageda for Chage: Critical Questios for Performace with Itegrity which is a overview of the questios that the Board ad HR might like to cosider; The Gold Stadard for Performace with Itegrity. *The items deoted above appear i the larger toolkit, available from ifo@cityhr.co.uk

5 PERFORMANCE WITH INTEGRITY 03 Establishig a culture likig values to performace ad reward The toolkit provides guidace to assist seior maagemet: To take the temperature of their orgaisatio i order to decide the extet to which the prevailig values: hold good; eed to be redefied; or eed to be created from scratch. To commuicate the values ad associated behaviours to all employees i a way which is supportive ad ispiratioal. To embed the values by idetifyig ad traiig leaders who live the values. To provide leaders with the ecessary tools by aligig all people maagemet policies to the values. Some of the existig people maagemet policies may eed to be re-defied, particularly those relatig to recruitmet, iductio, maagemet traiig, performace maagemet, successio plaig, career developmet ad reward. To reiforce the values by developig mechaisms for addressig poor behaviour as well as ways of ecouragig employees to speak up i icideces where values are beig udermied. Recommeded readig ad leadig academic philosophies o orgaisatioal culture are cotaied i the larger toolkit. The Performace Roadmap: How to lik performace to values The Performace Roadmap illustrates a cotiuous cycle comprisig five essetial steps to likig performace to values. 2. LEAD & EMBED VALUES - Alig culture ad people processes to values - Idetify ad develop values-drive leaders 5. REINFORCEMENT - Esure policies are values-drive - Support supervisors - Protect whistle blowers - Act o poor behaviour - Exit iterviews 1. IDENTIFY VALUES - Visualise - Cosult ad validate - Commuicate - Egage 3. SELECT FOR VALUES - Values as a employee offerig - Assess appoitmets for skills ad cultural fit - Assist ew hires i trasitio - Iductio ad ogoig traiig 4. MEASURE FOR VALUES - Assess performace o how as well as what - Implemet values-drive progressio, reward ad recogitio Fig. 1 THE PERFORMANCE ROADMAP: LINKING PERFORMANCE TO VALUES

6 04 PERFORMANCE WITH INTEGRITY The values-drive performace maagemet programme The culture of a orgaisatio is equally iflueced by what it says ad does as well as what it chooses to measure ad reward. The performace appraisal is the lychpi i the formatio of the psychological cotract betwee the orgaisatio ad the employee. It is essetial, therefore, that the system reflects the orgaisatio s values. The research udertake idicates that orgaisatios that are serious about beig values-drive regard the performace maagemet system as a essetial leadership tool. It is the meas whereby the orgaisatio evaluates ad plas to make the most of its key asset - its people - ad has the followig characteristics: The CEO iitiates the aual appraisal process ad takes a active iterest i the performace maagemet process ad output. The CEO acts as a role model, by demostratig the desired behaviours ad, the ivokig these as the appraiser of the executive team. The process of agreeig the year s objectives is see as a primary meas of structurig each employee s work to achieve maximum cotributio while creatig opportuities for persoal developmet. The challeges set for the employee at the begiig of the year iclude opportuities to assess the degree to which the employee adheres to the values by demostratig the desired behaviours. The regular dialogue o performace throughout the year is see as a pricipal meas whereby team leaders fulfill their resposibility to coach ad guide idividual team members. The appraisal process assesses both what was doe ad how it was doe. The output of the process is see as drivig sigificat fiacial ivestmet o the part of the orgaisatio i terms of effective use of the compesatio sped ad other forms of recogitio. The output of the appraisal process is a key cotributor to the orgaisatio s risk maagemet process by drivig decisios o the placemet of persoel i key roles ad highlightig issues relatig to the availability of resources. I a values-drive appraisal system, both the appraiser ad the employee treat the appraisal process with respect as a major part of their obligatio to live the values. This meas that they put i the ecessary commitmet ad effort to optimise the performace review process. The values-drive performace cycle As with all people maagemet processes, the performace cycle ad process will be determied by the busiess ad the size ad complexity of the orgaisatio. The larger toolkit provides guidace ad examples of performace maagemet schemes from the most simple through to the more sophisticated.

7 PERFORMANCE WITH INTEGRITY 05 Lloyds Bakig Group is oe orgaisatio which operates a values-drive performace cycle: Lloyds Bakig Group Overview of the Performace Framework Cycle Colleague self-iput/ Lie Maager performace commetary Year Ed Review focusig o whats ad hows Fial Performace Ratig Calibratio sessios At the ed of the year Oct Nov Dec Ja Set Ed of Year Review Objectives Values At the begiig of the year Feb Mar Agree objectives aliged to overall team/dept/busiess uit ad Group strategy Agree effective developmet pla Documet i Balaced Scorecard Throughout the year Sep Behaviours Apr Throughout the year Effective performace coversatios Review/update objectives ad developmet pla Aug Mid Year Review Regularly Discuss Performace Jul Ju May Effective performace coversatios Review/update objectives ad developmet pla At the mid-year poit Colleague self-iput/lie Maager performace commetary Mid Year Review focusig o whats ad hows Idicative Performace Ratig Calibratio sessios Evaluatig progress agaist the Gold Stadard The Gold Stadard has bee developed to help orgaisatios to moitor ad evaluate their jourey i becomig a values-drive busiess ad esurig that this is upheld through the performace maagemet scheme ad wider people processes. To see how orgaisatios are puttig performace liked to values ito practice, excerpts from their case studies cotaied i the larger toolkit - are preseted o page 8 to 9 ad refereced withi the Gold Stadard. At Board level, the Gold Stadard is provided for oversight purposes. However, at the maagemet ad operatio levels the Gold Stadard:- i) Acts as a checklist for those who are embarkig o the jourey or ii) Acts as a self-assessmet tool for those who are advaced agaist the Roadmap. For orgaisatios seekig validatio of their success i this field, a ew accreditatio has bee lauched to recogise this achievemet. To see the full Gold Stadard, please refer to pages 10 to 12.

8 06 PERFORMANCE WITH INTEGRITY Measurig the effectiveess of the values The view that what gets measured gets doe is drivig the icreased use of HR ad other orgaisatioal metrics. Each orgaisatio will have its ow must-have suite of metrics. However, every other year, the City HR Associatio coducts a market survey o every facet of people maagemet. The two graphs below show curret treds i appraisal style ad cotet withi 44 fiacial istitutios. What type of performace maagemet or appraisal scheme do you operate? 100% Does your performace assessmet scheme iclude Maagemet by objectives Competecy based 75% 61% 80% 60% 40% 360 feedback or a variatio 32% 20% Iteral scheme or other Balaced scorecard 23% 16% 0% 20% 40% 60% 80% 0% 100% 77% 75% 72% 70% 61% 57% 57% 45% 34% Performace agaist set objectives Maagerial/ leadership skills Techical skills Assessmet of cotributio to the busiess Behaviours Performace aliged to fiacial cotributio Compliace Performace aliged to corporate values Employee coachig/metorig Service delivery 23% People risk 23% Customer feedback 5% 5% 5% 0% Other Support of diversity iitiative Commuity related work Ivolvemet i graduate recruitmet Key fidigs ad coclusio The research for this Performace with Itegrity Toolkit shows that the degree to which a orgaisatio succeeds i becomig values-drive depeds o a rage of factors, icludig:- The commitmet of the Board to creatig a values-drive culture, ad how this resolve is commuicated ad embedded throughout the orgaisatio by seior maagemet. Gettig orgaisatioal culture right, through likig people ad performace maagemet to values is ot oly the right thig to do but is essetial for: i) the egagemet, performace maagemet, successio plaig, reward ad recogitio of employees; ii) restorig the trust of all stakeholders icludig customers ad ivestors iii) providig a positive respose to cocers expressed by the Govermet, regulators, professioal stadards bodies ad the public at large. The ability of the orgaisatio to recruit ad idetify leaders who will live the values ad act as role models ad i doig so, will create ad assess the desired behaviours. As a oversight tool for the Board ad a operatioal guide for maagemet, the key issues to be addressed i becomig a valuesdrive orgaisatio are summarised i the Ageda for Chage Critical Questios for Performace with Itegrity which cocludes this Executive Overview.

9 PERFORMANCE WITH INTEGRITY 07 AGENDA FOR CHANGE CRITICAL QUESTIONS FOR PERFORMANCE WITH INTEGRITY Some questios that Boards, Seior Maagemet, HR ad their Advisors ca cosider i likig people ad performace maagemet to values. Idetify Values 1. Are the values curret ad have they bee reviewed by the Board i the last 24 moths? 2. Do they meet the expectatios of all stakeholders? 3.Are the values i lie with the purpose of the orgaisatio? 4.Do the values have behaviours attached to them? 5. Is it clear what behaviours are expected of leaders? Uderstadig the culture 1. What iformatio has bee collated ad aalysed to uderstad the curret culture ad its aligmet with the values? 2. Is the culture regularly measured to check o aligmet? 3. Are leaders selected, promoted ad recogised for their values-drive behaviours? 4.Do leaders demostrate the values i everythig they do? 5.Are sactios cosistetly applied for ay employee who behaves i a way that is ot values-drive? 6.Is performace defied as what has bee achieved ad how i terms of work output ad behaviour? 7. Are suppliers ad cotractors expected to behave i accordace with the values? 8. Have the Chairma ad Board discussed the City Values Forum Goverig Values guide? Recruit, select ad iduct for values 1. Are exteral ad iteral appoitmets assessed agaist the orgaisatio s values ad behaviours? Are exteral headhuters ad agecies briefed o the values ad behaviours required of all staff? Do iteral recruiters assess people i accordace with these values ad behaviours? 2. Are itegrity testig techiques used i the selectio process for iteral ad exteral appoitmets as as part of successio plaig? 3. Are all ew hires (ad cotractors) iducted o the corporate values ad expected to behave accordigly? Measure for Values 1. Are the values ad resultig culture regularly reviewed ad measured? 2. Are misaligmets actively maaged? 3.Is idividual behaviour reviewed, assessed ad rated i the performace maagemet process? 4.Do the Audit/Compliace/People sub committees of the Board actively maage culture ad risk ad moitor these through employee surveys, successio plas ad other relevat sources? 5.Are metrics udertake o the effectiveess of likig people ad performace maagemet to values ad are these reported to the Board or cotaied withi the Aual Report? Reiforcemet 1. Are all people processes regularly assessed for their aligmet with the values? 2. Does the Talet Maagemet Programme attract, retai, develop ad promote employees who exhibit values-drive behaviour? 3. Is reward allocated with referece to desired behaviours as well as fiacial cotributio delivered? 4.Is the speak up mechaism workig effectively? 5. Are exit iterviews used to elicit isights ito how the values ad desired behaviours are perceived ad practiced? Refereces: 1. Professor Roger Steare: Ethicability: () How to Decide What s Right ad Fid the Courage to Do It (2013) 2. Salz Review, A Idepedet Review of Barclays Busiess Practice (2013) 3.Parliametary Commissio o Bakig Stadards (2013) 4.Sir David Walker, A Review of Corporate Goverace i UK Baks ad Other Fiacial Idustry Etities Fial Recommedatios (2009) 5.Associatio of British Isurers, Report o Board Effectiveess (2012) 6.Clive Adamso Speech, Fiacial Coduct Authority, (2013).

10 08 PERFORMANCE WITH INTEGRITY The Values-Drive Orgaisatio I Practice RBC Capital Markets The RBC Values defie our culture ad what we stad for as a compay. They are reflected i our behaviour ad form the foudatio of how we build relatioships ad deliver value to all our stakeholders cliets, employees, shareholders, ad commuities. However, Values oly come to life whe employees uderstad them, adopt them ad live ad breathe them. May firms develop ad publish a statemet of values ad expect employees to read ad follow them. At RBC, we have goe oe step further i embeddig our Values through the formulatio ad commuicatio of our Code of Coduct. The employee s first experiece of the Code comes i the offer of employmet pack. This icludes a detailed explaatio of the Code ad a cotractual commitmet that the employee must successfully complete the RBC Code of Coduct test withi 30 days of joiig, ad bieially thereafter. Prior to takig the test, the employee atteds a i-depth olie learig programme. This experiece is supplemeted at the ew employee orietatio sessio, which highlights The Joh Lewis Partership The Partership recruits about 13,000 employees (Parters) a year across its divisios ad wated to esure those who were joiig - what is a uique coowed busiess - uderstood both the advatages this brigs ad the resposibilities. The Costitutio states: The Partership seeks to recruit oly those who share its values ad will cotribute to its success. I seior maagemet appoitmets the Partership, for may years, has cocetrated o selectig for values ad behaviours rather tha merely techical competece ad it wished to exted this emphasis to its olie recruitmet. Therefore i 2011 a project was iitiated to make cadidates aware of the Partership s core values, ad eable Resourcig to idetify those cadidates whose ow values were least likely to match these. The Partership worked with cosultacy SHL to deliver a tool that was part of the o-lie applicatio process. Mitsubishi UFJ Securities Iteratioal I early 2012, followig a extesive cliet/employee cosultatio process, the MUSI idetity was re-lauched. Results of the research coducted as part of the brad developmet programme, foud our values to have bee itegral to the success of the firm ad i drivig cultural chage; however, a clear visio for the future was cosidered ecessary to esure cotiued success i the firm's challegig ad competitive marketplace. With this i mid, we sought to further embed the values i the culture of the firm through employee educatio ad awareess iitiatives. Each value was idividually promoted iterally via the followig meas: Maagemet Committee sposorship; tow halls; case studies; a microsite; workshops; ad a photography competitio. All of these were reiforced by visual compoets, such as a ew desktop screesaver, to brig them to life ad make them more tagible for employees. the critical importace of the Code ad RBC Values.

11 PERFORMANCE WITH INTEGRITY 09 Direct Lie Group Ahead of separatio from Royal Bak of Scotlad i 2011, Direct Lie Group recogised the uique opportuity afforded by lauchig as a ew corporate idetity. They wated their employees to become ad stay egaged through the process of separatio, ad recogised that the most effective way of doig that was givig every employee the chace to be part of co-creatig the ew culture of the busiess. A employee egagemet programme - Best - was lauched, facilitatig a three-part series of workshops, led by employees, for employees that everyoe was ivited to. The purpose of these was to give everyoe a opportuity to say what they thought our ew compay should be, how it should feel like to work here, ad what eeds to chage to make that a reality. After the workshops, these coversatios ad suggestios were cotiued through a ew olie umoderated forum called Best Quest. The iput from all of these workshops was take by a employee workig group, to distill dow ito a fial set of corporate values, which were the preseted by the workig group to the Executive for approval. Whe this was agreed, the values were lauched to great success i March 2012, ad have sice bee icorporated ito key HR processes such as performace maagemet ad recruitmet to esure the culture the employees chose is reiforced ad embedded i the orgaisatio. Citi Durig the fiacial crises, the leadership at Citi took steps to redefie its busiess strategy ad core values. These steps were later traslated ito several key iitiatives aimed at aligig Citi s people ad culture with the ew visio for the orgaisatio. To further embed the strategy, Citi s Priciples, ad Leadership Stadards, Citi ivested i egagig its global Maagig Director (MD) populatio through two-day, iteractive sessios called the Citi Leadership Forum. The purpose of these sessios was to egage key leaders ad build aligmet aroud the directio of the orgaisatio its strategy ad five executio priorities, kow as the 5Cs. I 2012, Citi ra 19 sessios that reached over 3,100 MDs. The sessios were led by 46 of the most seior leaders i the orgaisatio, icludig the CEO. Attedees of the program were provided with a cascade toolkit ad expected to host a meetig with their teams to commuicate key messages from the sessios. Stadard Chartered Bak At Stadard Chartered Bak our 5 values uderpi who we are, so it is importat we esure our people are clear about the way we do busiess ad our commitmet to our cliets ad commuities from the very start of our relatioship with them. To support this, our resourcig, talet ad performace maagemet processes are desiged to select, promote ad reward people i lie with our values. To make sure we apply this i practice, we track a umber of metrics o a aual basis that measure how embedded our values are across the group for example, how may employees have had a coversatio with their maager about how they live the bak s values. Ad that there s a correlatio betwee the values ratig give to each employee ad how they are rewarded.

12 10 PERFORMANCE WITH INTEGRITY THE GOLD STANDARD FOR PERFORMANCE LINKED TO VALUES THE ROADMAP: BY ACTIVITY GOLD STANDARD: THE KEY ELEMENTS EXEMPLIFIED BY: (See Large Toolkit for full case study) IDENTIFY THE VALUES Visualise Cosult ad Validate Commuicate Values are see by all as a set of guidig priciples which gover what the orgaisatio does ad how it does it. The orgaisatio s curret missio ad strategy are clearly derived from the values. I every part of the orgaisatio, the values are traslated ito required behaviours so that everybody kows what good looks like ad what is expected of them persoally. Direct Lie Group Egage The values ad required behaviours are actively commuicated withi the orgaisatio. Royal Bak of Caada LEAD AND EMBED THE VALUES Embed the values Realig the prevailig culture Promote valuesdrive leadership The prevailig culture has bee assessed for compliace with the values, from the perspective of: - seior maagemet - all employees - risk maagemet strategies People processes have bee reviewed to esure aligmet with values A pla is i place to realig the prevailig culture over time. Oversight of the developmet ad delivery of the pla resides with the seior executive. Employees uderstadig of ad experiece of the values i practice is assessed regularly by meas of employee egagemet surveys. Citi Mitsubishi UFJ Securities Iteratioal For all leadership roles, resposibilities iclude a requiremet to role model the values ad to assist others i livig the values. All those i supervisory posts receive regular leadership skills traiig, icludig how to act as a role model ad to discharge their resposibilities regardig the values. The City Foudatio Course: Leadig with Itegrity may assist i this respect (see back iside cover). SELECT FOR VALUES Values-drive recruitmet All job descriptios set out the what ad the how regardig the job required behaviours are give similar profile to required skills. Assessmet of prospective ew hires, or iteral appoitmets, icludes techiques for predictig behaviour ad cultural fit. Joh Lewis Partership All those ivolved i the assessmet process are traied i the orgaisatio s values, how the values pertai to the role i questio ad i behaviour based assessmet techiques.

13 PERFORMANCE WITH INTEGRITY 11 THE ROADMAP: BY ACTIVITY GOLD STANDARD: THE KEY ELEMENTS EXEMPLIFIED BY: (See Large Toolkit for full case study) I recruitmet literature, iterviews etc, the values are preseted as a major part of the employee offerig, egagig cadidates who are attracted by the values ad ecouragig others to self select out of the recruitmet process. Values-drive iductio ad support Values-drive cotiuig professioal developmet ACTIVITY MEASURE THE VALUES Values-drive idividual performace maagemet The iductio process is built aroud helpig the ew hire to adapt to the culture ad to start livig the values. A cotiuous improvemet process is applied to the recruitmet process: - successful hires are asked to commet o how the orgaisatio s approach to recruitmet iflueced their decisio to joi ad the degree to which the orgaisatio supported them to succeed. - at exit iterviews, leavers are asked to commet o their experiece of the orgaisatio s values, recruitmet ad iductio processes ad the extet to which people ad performace policies are aliged ad apparet throughout the orgaisatio. A idividual developmet pla is costructed to provide the ecessary traiig ad cotiuig professioal developmet to meet orgaisatioal ad idustry stadards. The appraisal process assesses performace with regard to delivery ad required behaviours what was doe ad how it was doe. The appraisal is evidece based, requirig the assessor to support their judgemet with actual examples from work observed. The appraisal is multi perspective: the assessmet of performace is iformed by the views of others besides the immediate supervisor e.g. iteral cliets, direct reports. The appraisal process is built aroud a dialogue betwee the supervisor ad employee. The employee has the opportuity to: - complete a self appraisal - sig off o the assessmet of performace ad to commet i the evet of a disagreemet. The outcome of the appraisal process feeds directly ito decisios regardig a idividual employee s career progressio ad reward. The appraisal process is subject to review to esure cosistecy of applicatio e.g. regardig ratig scales. The appraisal process is see as a key maagemet tool, oversee by the seior executive with the advice of the HR fuctio. The City Obligatio may assist with starter documetatio, iductio ad appraisals (see back iside cover). Lloyds Bakig Group Stadard Chartered Bak

14 12 PERFORMANCE WITH INTEGRITY THE ROADMAP: BY ACTIVITY GOLD STANDARD: THE KEY ELEMENTS EXEMPLIFIED BY: (See Large Toolkit for full case study) Values-drive progressio Values-drive reward Vaues-drive recogitio Values specific reportig ad metrics REINFORCEMENT OF VALUES Values-drive corrective actio ACCREDITATION I determiig a idividual employee s capacity for career progressio, weight is give to the degree to which the employee lives the values as well as to techical ad commercial skills. Employees uderstad that adherece to the values is a prerequisite for career progressio. The orgaisatio s reward system recogises delivery across a rage of criteria which icludes the degree to which the employee upholds the values ad assists others to do so. The role of adherece to values i determiig reward is kow ad uderstood by employees. Reward mechaisms e.g. icetive schemes are regularly reviewed to esure that they cotiue to support the values ad promote required behaviours. Employees are recogised via promotio, employee award schemes ad other o cash icetives for their ability to demostrate the right behaviours. The orgaisatio measures the effectiveess of its values-led strategy, cultural chage programmes ad people processes agaist employee ad customer surveys, iteral HR metrics ad exteral people policies bechmarkig. The orgaisatio s codes of coduct ad supportig policies support the values ad clearly set out required behaviours. Where applicable, the orgaisatio requires employees to act i accordace with codes of coduct relatig to professioal bodies. All employees kow what is expected of them. Supervisors are traied ad supported i takig difficult decisios regardig failure to adhere to the values ad required behaviours. Discipliary actio ad further possible sactios will be ivoked for those whose behaviours fall short of the orgaisatio s stated values. Employees who speak up about behaviours which threate the values are supported ad protected. Those orgaisatios wishig to seek accreditatio of their Performace Liked to Values Programme should cotact ifo@cityhr.co.uk. Details will will iclude how this ca be recogised by City HR ad accredited by the Istitute of Leadership & Maagemet.

15 PERFORMANCE WITH INTEGRITY 13 OTHER PUBLICATIONS AND PROGRAMMES IN THIS SERIES Goverig Values The City Foudatio Course Leadig with Itegrity Performace with Itegrity The City Obligatio Itegrity Resources For more details please visit THE CITY VALUES FORUM EXECUTIVE Richard Sermo MBE, Chairma Simo Culhae Chartered Istitute for Securities ad Ivestmet Adrea Eccles City HR Associatio Charles Elvi - Istitute of Leadership & Maagemet Richard Fi Worshipful Compay of Maagemet Cosultats Philippa Foster Back OBE Istitute for Busiess Ethics Rebecca Greeves TheCityUK Adrew Hall Chartered Istitute for Securities ad Ivestmet Marti Hall Worshipful Compay of Iteratioal Bakers Ooagh Harpur Tomorrow s Compay Veetia Howes Worshipful Compay of Marketors Christia Makris Cass Busiess School Toy Mawarig Tomorrow s Compay Patrick McHugh Worshipful Compay of Maagemet Cosultats Robert Potter Jardie Lloyd Thompso & City HR Associatio Lady Susa Rice Lloyds Bakig Group Edward Sakey Worshipful Compay of Maagemet Cosultats Marcus Scott TheCityUK Charles Wookey Catholic Bishops Coferece of Eglad ad Wales APPRECIATION FOR CASE STUDIES Lesley Wilkiso ad Raf Lopez, Citi Carla Jeffery, Direct Lie Group Laura Whyte, Joh Lewis Partership Paul Huckall, Lloyds Bakig Group Sarah Cawthra ad Steve Presto, Mitsubishi UFJ Securities Iteratioal Plc Gareth Hughes, RBC Capital Markets Louise Batchelor, Stadard Chartered Bak Professor Roger Steare, Corporate Philosopher i Residece at Cass Busiess School Above all, appreciatio is exteded to the academics, professioal body represetatives, maagemet cosultats ad HR directors who provided expert isight to this publicatio ad who are listed i full i the larger toolkit. Also to Aoushka Roberts at the Istitute of Leadership & Maagemet. ABOUT THE CITY HR ASSOCIATION The City HR Associatio is the professioal body for over 170 fiacial istitutios ad City firms o huma resource matters relatig to cosultatio, best practice, traiig ad bechmarkig.

16 The City Values Forum was established i 2011 to deliver the recommedatios of the Lord Mayor s Iitiative 2010/11 aimed at restorig trust i the City. This guide provides a Executive Overview of the Performace with Itegrity Toolkit. Co-authored by Adrea Eccles, Elizabeth Newto ad Hele Shaw, the toolkit provides practical guidace o how to ehace orgaisatioal effectiveess through the likage of performace ad reward to corporate values. INVESTING IN INTEGRITY The guidace icludes itellectual capital, tools ad The Lord Mayor s Coferece oderived Trustfrom ad case studies thevalues experiece of fiacial City HR Associatio, Providia House, Moumet Street, Orgaised by the City Values Forum EC3R 8AJ October 2012 Telephoe: /4 ifo@cityhr.co.uk istitutios ad blue chip compaies which have made the jourey to becomig values-drive. The toolkit culmiates with the Gold Stadard which serves as both a comprehesive checklist ad self assessmet tool for use by ay fiacial istitutio, irrespective of size or sector. Copyright City HR 2013