Building A Talent Culture at Key

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Brian Fishel

SVP, Head of Talent Acquisition and Talent Management

Brian_L_Fishel@keybank.com

Building A Talent Culture at Key

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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

• Focused on five primary areas

1. Talent Planning

2. Leadership Development

3. Performance Management

4. Developmental 360-degree Feedback

5. Executive Onboarding

• Measured for impact and accountability

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Key’s Business Imperatives Drive The Talent Agenda

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 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

Talent Implications Common Themes

As the company evolves, so too will the skills, capabilities, and requirements for our people …

Grounded in the business

Our Leaders Have Spoken

Our 2013 talent philosophy survey and subsequent focus groups conducted across the enterprise point to where opportunities exist …

Theme Talent Philosophy Survey Leadership Focus Groups 1. Make it

easier to move talent across the enterprise

• 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

• Clarify and drive consistency in how we define and discuss talent

• Create and execute a pragmatic sustainable approach to talent planning

2. Invest in the development of talent inside Key

• 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

• 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

3. Help me be the most productive I can be for Key

• 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

• Increase the transparency of feedback given to individuals; drive clarity of expectations and help people develop to success standards

• Enable effective performance and career- development discussions

• Help those newly hired, especially at senior ranks, successfully transition to our culture

Grounded in the business

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Talent Principles

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. Talent 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

As a management team, we have agreed to seven foundational principles that form the basis of our talent development efforts …

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A Common Framework For Development

• 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

• Executive Council sessions

• Presentations to ELT, Board

• Skip level meetings

• New/Broadened assignments

• Executive “sponsors/mentoring”

• External leadership opportunities (e.g., boards, community orgs.)

• Cross-functional projects

• Managerial diversity: line v. staff;

scope and span

• Leadership meetings / quarterly earnings calls

• External conferences and events

• Targeted skill building / learning

• Leadership roundtables

• Leadership development programs

Built on enterprise principles and frameworks

A combination of the following activities will be customized for leaders based on their unique development needs …

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Applying the Framework to Our Top Talent

Name Assessment and Coaching Experience Exposure Education

Executive 1

360-degree feedback and other assessment and development instruments

Line role To investors and analysts

Leadership Cleveland

Executive 2

“Corporate Resources”

Report directly to CEO with added responsibilities

To Board of

Directors N/A

Executive 3

Executive coach

Increase line responsibilities over time

To consumer businesses

G100 Next Generation Leaders Program

Executive 4

Executive coach

Line role N/A N/A

Executive 5

Add Functional responsibility for XXX

To broader employee population

CEO Perspectives Built on enterprise principles and frameworks

Our Talent Development Game Plan

Drive consistency in how we define and discuss talent

Execute a pragmatic sustainable approach Talent

Planning

Define “leading at Key”

Execute enterprise approach to “managing at Key”

Differentially invest in our top talent Leadership

Development

Streamline and simplify the process and language

Equip managers to have effective performance and development discussions

Performance Management

Increase the use and transparency of multi-rater feedback Developmental

360⁰Feedback

Execute enterprise approach to onboarding new hires Executive

Onboarding

Focused on five primary areas

1

2

3

4

5

There are five primary levers we will pull to drive development of our people …

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Our Talent Development Game Plan

Talent Planning

Performance Management

Developmental 360⁰Feedback

Executive Onboarding Core Processes

Managing At Key

Accelerated Development Program Executive Development

Program Leading

For Growth

New Hire Onboarding Forum Leadership Development Programs

~2,200 Managers

~400 Senior Leaders

~2,200 Managers

~12,000 Individual Contributors

Over the next three years we will drive our core processes deeper into the organization and deliver a suite of enterprise leadership programs …

Key

= Existing

= New

= New program

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Talent Planning

Business Priorities Organizational Structure

Talent Requirements

Scope & Responsibilities Role Criticality Succession Plans/Talent Acquisition

Performance (WHAT) Leadership (HOW) Potential (TOP TALENT) Targeted Development Organizations

Roles

Individuals

Potential Decisions and Commitments

Organizational Plans

• Restructuring

• Hiring

• Diversity

Talent Movement

• Promotions

• Expansions

• Top Grades

Top Talent

• Assessment

• Exposure

• Experience

• Education

A structured, repeatable process for assessing an organization’s structure and talent to deliver its business priorities – in year and in the near future …

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Talent Planning

Talent

Derailment

Potential Performance

• Proven track record of delivering results (the “What”)

• Strong demonstration of Key leadership competencies and values (the “How”)

• Willingness and ability to learn and apply new skills in different and more difficult situations of increasing complexity (“runway” and “versatility”)

• Not living the Key values

• Overdone strengths & blind spots

• Blocked to learning new skills and capabilities

We are now using consistent language to talk about our people …

Talent Planning

We are following a consistent cadence to execute the process …

JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC

Business Unit Talent Planning

CEO –ELT Talent Review Meetings

CEO C&O Review

CEO Board Review

ELT Talent

Mtg.

ELT Talent Mtg.

Corp.

Bank and Risk C&O Review

KCB, KTO C&O Review

HR, Finance

C&O Review

9 Box | Direct Reports Succession Plans

• Executive Leader

• Direct Reports

• Other Critical Roles Organization Overview

• Business Priorities

• Organization and People Implications

Actions completed last

12 mos.

Planned actions

College Recruiting

• Conversation Rate

• Diversity

• Strategy and Activity Organization Chart

• Leadership Team

• 2-deep – Top Talent – External Hires – Internal Imports – Diversity

Top Talent

• Emerging Executive Talent

• Next Generation

• Development Plans and Actions

• Next Assignments

Diversity

• Representation

• Promotions

• Hires

• Key Activity ELT

Talent Mtg.

Deliverables2014 Calendar

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Leadership Development Programs

We are building and delivering an integrated suite of programs tailored to different levels and audiences in the organization …

~2,20 0 Mana

gers

~400 Senior Leaders

~2,200 Managers

Executive Development

Program

Accelerated Development Program Leading

For Growth

Managing at Key

New Hire Onboarding

Forum Leaders

& Managers

New Executive Top

Talent

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 Common Purpose

• Drive alignment to the enterprise’s goals and strategies

• Institutionalize a common culture and mindset of customer- centricity, high performance, growth

• Enhance leaders’ and managers’ ability to deliver business results

• Amplify CEO message and imperatives

Leadership and Management Development Curriculum

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Leadership Development Programs

There are sponsors from the management team guiding the design of each program; we are well down the path to delivery …

Program Audience Key Features

Program

• Top Talent primarily 2 levels below the CEO

• Individuals seen as potential Executive Leadership Team (ELT) successors

• ~ 20 participants annually nominated by collective ELT

• 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 Executive Leadership Team members and potentially Board members

─ Participants working on business issues of enterprise importance; presenting recommendations to ELT

Accelerated Development Program

• Earlier career top talent with runway; primarily from ranks 3 to 4 levels below the CEO

• Seen as potential ELT direct report successors

• ~ 20-25 participants annually nominated through talent planning process

• 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

Leading for Growth

• ~ 35-40 senior leaders per session; attendance prioritized for top performers 1^st; nominated through LOBs/Functions

• 3.5 day residential program co-led by Executive 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

New Hire Executive Onboarding

Forum

• Externally hired executives

• Volume driven

• 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

• First time managers

• Automatic enrollment

• Volume driven

• 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

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Leadership Development Programs

We will launch the programs in 2014 and deliver them over the next three years …

Q2 Q3 Q4 Q1

Program

New Hire Executive Onboarding

Forum

Accelerated Development

Program

Leading for Growth

Pilot

Virtual Learning Event

In Person Learning Event

In person Learning Event

Session 1

Assessment, coaching, group business challenge projects, interaction with leading external experts ELT

Roundtable

ELT Roundtable Lrng.

Event

Session 2 Session 4

Session 2 Session 3

Session 1

Lrng.

Event Lrng.

Event

ELT Roundtable

Series of virtual, online, and in-person delivered content, tools and curriculum over a prescribed period of time Assessment, coaching, individual business projects, on-going learning

Graduation Focused on five primary areas

Kickoff

Session 3

Developmental 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

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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

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Executive Onboarding

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 Talent 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

Executive turnover rates; Onboarding survey feedback results; Employee Engagement scores

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Accountability and Measurement

Bench Strength

• Replacement plan utilization

• Promotion and movement rates

• External vs. internal hire mix

TRACKING

IMPACT MEASURES

Programs and Process

• % Satisfaction

• Penetration rates with intended audiences

• Participant engagement / promotion rates

Leadership Stability

• Top Talent retention

• Time in role

• Tenure and experience

Measured for impact and accountability

We will keep score and assess progress regularly …

Personal/Job Information Development Activities

Name Job Title

Demographics Time in Role (Mos.)

Tenure (Yrs.)

Performance Review Rating

Potential Rating

9 Block Rating Multi-Rater

Leadership Programs Grade Gender Race

John Doe Executive 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

Summary

Delivering an integrated and balanced approach for building bench strength in our company …

Talent Planning

and Performance Management

Perform Today Prepare for the Future

Enterprise Individual

1:1 External Coach

Accelerated Development

Program

Program College

Recruiting

External Executive Recruiting Assignment Management External

Executive Education

First Time Manager

Training New

Executive Onboarding

Leading For Growth

High Volume

Staffing Developmental

360^oFeedback

Measured for impact and accountability

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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

Questions?

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