Building A Culture at Key Brian Fishel SVP, Head of Acquisition and Management Brian_L_Fishel@keybank.com Today Objective 1. Review Key s game plan for developing leaders capable of successfully executing the company s strategy and priorities today and into the future. 2. Share best practices and lesson learned Critical Elements to the Game Plan Grounded in the business Built on enterprise principles and frameworks 1. Planning 2. Leadership 3. Performance Management 4. al 360-degree Feedback 5. Measured for impact and accountability 1 1
Key s Business Imperatives Drive The Agenda As the company evolves, so too will the skills, capabilities, and requirements for our people Grounded in the business Common Themes 1. Drive revenue and grow profitably 2. Drive a customer-centric mindset 3. Instill a high performance culture 4. Act with discipline, rigor, and focused execution Implications The business challenges and environment in which we operate will require More productive leaders, performing at levels outpacing the competition Efficient, sustainable processes to enable the right leaders are in the right roles, with the right skills, at the right time, performing to their fullest Deliberate identification and focused development of future leaders who will run our company Instilling a performance and leadership mindset throughout the enterprise 2 Our Leaders Have Spoken Our 2013 talent philosophy survey and subsequent focus groups conducted across the enterprise point to where opportunities exist Theme Philosophy Survey Leadership Focus Groups 1. Make it easier to move talent across the enterprise 2. Invest in the development of talent inside Key 3. Help me be the most productive I can be for Key 78% surveyed said Key s current approach for moving talent across the company is inconsistent and lacks clarity 68% surveyed said they support moving top talent across the organization regardless of role 82% surveyed believe Key should grow our own talent to ensure quality talent is in place for the future Those surveyed said we should differentiate the investment in the development for top talent as compared to average performers up to 50% to 200% more 83% of individuals surveyed said talent planning discussions should be more transparent 65% surveyed said there was inconsistency in defining what the gold standard is for leaders at Key Grounded in the business Clarify and drive consistency in how we define and discuss talent Create and execute a pragmatic sustainable approach to talent planning Define leadership at Key equip leaders with the tools and knowledge to successfully perform as growth leaders Equip first time managers with the foundational knowledge, skills and tools to manage people effectively Increase the transparency of feedback given to individuals; drive clarity of expectations and help people develop to success standards Enable effective performance and careerdevelopment discussions Help those newly hired, especially at senior ranks, successfully transition to our culture 3 2
Principles As a management team, we have agreed to seven foundational principles that form the basis of our talent development efforts 1. Strong leaders really do matter in managing and driving results and accountability; in establishing and reinforcing desired culture and values 2. Performance before potential delivering results matters, both the what & how count 3. is an enterprise resource having a common language for talking about talent and a willingness to share talent for the good of the enterprise makes the system work 4. Today s top performers aren t necessarily tomorrow s even the best leaders can fall behind or derail continual assessment, coaching, and feedback is needed to stay current and succeed long-term 5. A diversity of experiences and assignments remains the best classroom yet a balanced approach is still necessary for development 6. It s incumbent upon today s leaders to leave a legacy of future talent current leaders must teach and mentor others and role model what it takes to succeed 7. Invest in the best and focus the rest Built on enterprise principles and frameworks 4 A Common Framework For A combination of the following activities will be customized for leaders based on their unique development needs Built on enterprise principles and frameworks Individual performance management Role based assessments Peer feedback / 360 surveys 1 on 1 executive coach Leadership assessments / psychometrics Business reviews Structured time with select leaders, board member Council sessions Presentations to, Board Skip level meetings Leadership meetings / quarterly earnings calls External conferences and events Targeted skill building / learning Leadership roundtables Leadership development programs New/Broadened assignments sponsors/mentoring External leadership opportunities (e.g., boards, community orgs.) Cross-functional projects Managerial diversity: line v. staff; scope and span 5 3
Built on enterprise principles and frameworks Applying the Framework to Our Top Name Assessment and Coaching Experience Exposure Education 1 360-degree feedback and other assessment and development instruments Line role To investors and analysts Leadership Cleveland 2 3 4 360-degree feedback and other assessment and development instruments Corporate Resources 360-degree feedback and other assessment and development instruments coach 360-degree feedback and other assessment and development instruments coach Report directly to CEO with added responsibilities Increase line responsibilities over time To Board of Directors To consumer businesses N/A G100 Next Generation Leaders Line role N/A N/A 5 360-degree feedback and other assessment and development instruments Add Functional responsibility for XXX To broader employee population CEO Perspectives 6 Our Game Plan There are five primary levers we will pull to drive development of our people 1 Planning Drive consistency in how we define and discuss talent Execute a pragmatic sustainable approach 2 3 4 Leadership Performance Management al 360 0 Feedback Define leading at Key Execute enterprise approach to managing at Key Differentially invest in our top talent Streamline and simplify the process and language Equip managers to have effective performance and development discussions Increase the use and transparency of multi-rater feedback 5 Execute enterprise approach to onboarding new hires 7 4
Our Game Plan Over the next three years we will drive our core processes deeper into the organization and deliver a suite of enterprise leadership programs Planning Performance Management Core Processes al 360 0 Feedback Leadership s ~400 Senior Leaders Leading For Growth New Hire Forum Accelerated ~2,200 Managers Managers Managing At Key ~12,000 Individual Contributors Key = Existing = New = New program 8 Planning A structured, repeatable process for assessing an organization s structure and talent to deliver its business priorities in year and in the near future Organizations Roles Individuals Business Priorities Organizational Structure Requirements Scope & Responsibilities Role Criticality Succession Plans/ Acquisition Performance (WHAT) Leadership (HOW) Potential (TOP TALENT) Targeted Potential Decisions and Commitments Organizational Plans Restructuring Hiring Diversity Movement Promotions Expansions Top Grades Top Assessment Exposure Experience Education 9 5
Planning We are now using consistent language to talk about our people Performance Proven track record of delivering results (the What ) Strong demonstration of Key leadership competencies and values (the How ) Derailment Not living the Key values Overdone strengths & blind spots Blocked to learning new skills and capabilities Potential Willingness and ability to learn and apply new skills in different and more difficult situations of increasing complexity ( runway and versatility ) 10 Planning We are following a consistent cadence to execute the process JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Deliverables 2014 Calendar Business Unit CEO Planning Review Meetings Corp. KCB, KTO Bank and C&O Risk C&O Review Review Mtg. Mtg. Organization Overview Organization Chart 9 Box Direct Reports Succession Plans Business Priorities Leadership Team Leader Organization and 2-deep Direct Reports People Implications Top Other Critical Roles External Hires Actions Planned Internal Imports completed last actions Diversity 12 mos. CEO C&O Review Mtg. Top Emerging Next Generation Plans and Actions Next Assignments Diversity Representation Promotions Hires Key Activity HR, Finance C&O Review CEO Board Review Mtg. College Recruiting Conversation Rate Diversity Strategy and Activity 11 6
Leadership s We are building and delivering an integrated suite of programs tailored to different levels and audiences in the organization Leadership and Management Curriculum Leaders & Managers Top New Common Purpose Drive alignment to the enterprise s goals and strategies Institutionalize a common culture and mindset of customercentricity, high performance, growth Enhance leaders and managers ability to deliver business results Amplify CEO message and imperatives ~400 Senior Leaders ~2,20 0 Mana gers ~2,200 Managers Leading For Growth Managing at Key Accelerated New Hire Forum Common Outcomes Engaged / Committed leaders Shared accountability and urgency for Key s culture, values, results Increased knowledge of our talent and bench Broadened relationships for and among top talent in our company 12 Leadership s There are sponsors from the management team guiding the design of each program; we are well down the path to delivery Audience Key Features Accelerated Leading for Growth New Hire Forum Managing at Key Top primarily 2 levels below the CEO Individuals seen as potential Leadership Team () successors ~ 20 participants annually nominated by collective Earlier career top talent with runway; primarily from ranks 3 to 4 levels below the CEO Seen as potential direct report successors ~ 20-25 participants annually nominated through talent planning process ~ 35-40 senior leaders per session; attendance prioritized for top performers 1 st ; nominated through LOBs/Functions Externally hired executives Volume driven First time managers Automatic enrollment Volume driven 6 month program commitment, focused on building skills / perspectives to be an enterprise leader (i.e., think & act like a C-Suite leader / CEO ) Experience will include Targeted 1.0-1.5 day business relevant learning sessions led by expert thought leaders and practitioners, with clear post-session application and accountability Structured roundtables with CEO and Leadership Team members and potentially Board members Participants working on business issues of enterprise importance; presenting recommendations to 9 month program commitment Participants complete a battery of assessments related to leadership preference, business judgment and critical thinking, and derailing behaviors (and be compared to external benchmarks); Each participant will be assigned an external coach for duration of program In-depth reports will be written on each individual including highly customized development plans In-person kick-off, mid-point, and graduation sessions; learning will leverage case studies, simulation, immersion learning, external faculty, internal leaders as teachers, etc. Ongoing learning options throughout program as well as post graduation along with alumni network activities 3.5 day residential program co-led by Leadership Team and other Key leaders alongside external speakers Content prioritized around critical skills and requirements for leading in a high performance growth culture (e.g., from managing to leading; driving a growth culture; customer-centricity; developing a talent mindset; optimizing team impact) 360-degree feedback against Key leadership essentials A series of 90 minute in-person sessions with the CEO in order to Provide real-time 2-way dialogue and exposure for CEO and executive new hires Accelerate the new hire s assimilation and engagement into Key Leverage collective knowledge and experiences of the new hires to provide input on business initiatives Series of virtual, on-line, and in-person training, tools, resources, and content delivered real-time throughout the first year of an individual being promoted to a manager for the first time Content targeted at foundational people management skills needed when moving from an individual contributor to manager of others 13 7
Leadership s We will launch the programs in 2014 and deliver them over the next three years Q2 Q3 Q4 Q1 Lrng. Event Roundtable Lrng. Event Roundtable Lrng. Event Roundtable Assessment, coaching, group business challenge projects, interaction with leading external experts New Hire Forum Session 1 Session 2 Session 3 Session 4 Accelerated Virtual In Person Kickoff Learning Learning Event Event Assessment, coaching, individual business projects, on-going learning In person Learning Event Graduation Leading for Growth Session 1 Session 2 Session 3 Managing at Key Pilot Series of virtual, online, and in-person delivered content, tools and curriculum over a prescribed period of time 14 al 360-Degree Feedback Purpose A process for providing developmental feedback to help improve a leader s self-awareness and accelerate their performance and effectiveness Multi-rater feedback may take several forms (peer-feedback, qualitative 360-degree interviews, on-line assessments, etc.) and should be refreshed for an individual minimally every 36 months (+/-) Approach Differentiate by organization level (i.e., the more senior the individual, the higher-touch the approach) Drive use throughout the enterprise with early emphasis on leaders 3-4 levels deep within the company business units to control prioritization and pace Embed multi-rater feedback (and other assessments) into leadership development curriculum Link individual s results to their personal development plans Measures Completion and penetration rates Implementation of action plans based on feedback results 15 8
Performance Management Purpose Enterprise-wide process for aligning, managing, and measuring employee performance that drives accountability for the results of our company The process serves as the backbone of our company s pay-for-performance culture Approach Streamline overall process, making it easier for employees and managers to complete Simplify language (e.g., from Differentiating for High Performance to Performance Reviews ) and definitions for rating scale and goal categories Equip and empower managers and employees to be accountable for quality of conversations Transition from manual paper-based process to on-line technology enabled approach Measures Differentiation of pay decisions by performance levels Quality of performance discussions 16 Purpose A comprehensive and consistent approach for assimilating newly hired executives into Key that results in shortened time to productivity, increased employee engagement and retention, and earlier identification and correction of potential derailing behaviors Approach Gather feedback from executives hired in the last 18 months, and their managers regarding their onboarding experiences and assimilation into the company Implement a consistent, high-touch, repeatable process that effectively on boards and engages our new executives: move from focusing on just the first 60-days to winning the first year of a new hire s career at Key Framework managed by Management; with management team and HR involvement Utilize multi-rater feedback at approximately the 6-month window to provide 360-degree developmental feedback to the newly hired executive specific to onboarding and assimilation behaviors for success Incorporate two-way dialogue and exposure opportunities with the CEO and the management team Measures turnover rates; survey feedback results; Employee Engagement scores 17 9
Accountability and Measurement We will keep score and assess progress regularly Measured for impact and accountability TRACKING Personal/Job Information Activities Demographics Time in Name Job Title Role Tenure Performance Potential 9 Block Leadership Grade Gender Race (Mos.) (Yrs.) Review Rating Rating Rating Multi-Rater s John Doe 88 M W 25 5 4.0 TT E/M 10/1/2013 EDP 14 Sally Smith Banker 86 F W 11 10 4.0 V E/M 12/1/14 ADP 14 Ben Bank Leader of People 87 M M 60 7.5 3.0 V M/M 7/2/15 LFG 15 Jane Johnson President 89 F W 72 15.5 5.0 TT E/E 8/2/2012 EDP - 14 Michael Man Analyst 87 M M 18 3.2 2.0 I DNM/DNM N/A N/A IMPACT MEASURES Bench Strength Replacement plan utilization Promotion and movement rates External vs. internal hire mix s and Process % Satisfaction Penetration rates with intended audiences Participant engagement / promotion rates Leadership Stability Top retention Time in role Tenure and experience 18 Summary Delivering an integrated and balanced approach for building bench strength in our company Measured for impact and accountability Individual Accelerated External Education 1:1 External Coach al 360 o Feedback New Prepare for the Future First Time Manager Training Planning and Performance Management College Recruiting High Volume Staffing Perform Today Assignment Management Leading For Growth External Recruiting Enterprise 19 10
A Few Lessons Learned 1. Start and end with the business REALLY! 2. Work with not against what has or does exist 3. Secure executive sponsorship, starting with the top test its authenticity often by involving sponsors in decisions, choices, and delivery along the way 4. Don t get seduced by shiny objects make things practical and real for your company and its culture 5. Stay focused and prioritized move with intentional urgency 6. Don t allow yourself to be distracted by others desires to make everything ubiquitous for all 7. Language is critical 8. Measure and track relevant impact 20 Questions? 21 11