High Performance Culture Driving Performance & Growth
Ann SherryGroup Executive People & Performance
1 August 2002
12
Westpac Investor U
pdate 2002Superior Returns
Our People as our Competitive Advantage
Customer Experience & Satisfaction
High Performance Culture
Consistent People Practices
High Employee Commitment
Performance & Reward linkages
Staff Development & Training
Two Way Communication &
Feedback
Talent Management &Career Planning
Leadership Development
Right People, Right Roles
13
Westpac Investor U
pdate 2002Why a High Performance Culture?
Where the value is generated
Kaplan, S. & Norton, D.‘The Strategy-Focused Organisation’Harvard Business School Press, 2001
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%50%
60%
70%80%
90%
1962 1992 2000
32%
85-90%
38%
10-15%
62%68%
Tangible Assets
Intangible Assets
Tangible Assets
Intangible Assets
Tangible Assets
Intangible Assets
14
Westpac Investor U
pdate 2002
Service
Helpfulness
Linking Staff, Customer & Business Performance
Compelling place to work
Compelling place for financial services
Compelling place to invest
Attitude about
the job
Attitude about the company
Employee behaviour
Employee retention
Return on assets
Operating margin
Revenue growth
Products Value
Customer recommendations
Customer impression
Customerretention
5 unit increase in employee attitude
1.3 unit increase in customer impression
0.5% increase in revenue growth
drives drives
15
Westpac Investor U
pdate 2002Our high performance culture and customer experience will be determined by our staff
• Their motivation and competence
• How well they are led and managed
• How good they feel about themselves and the company
• How they are supported through products and processes
• How they are rewarded for value creation
16
Westpac Investor U
pdate 2002This will lead to
• Quality people operating at the edge of their potential;
• A superior customer experience; and
• Westpac differentiating itself from the competition
17
Westpac Investor U
pdate 2002The key levers to deliver are:
• Leadership
• Reward
• Building our workforce for the future
18
Westpac Investor U
pdate 2002Leadership
Copyright 1987 Human Synergistics, Inc.
In association with:
10
Passive Defensive Styles
Constructive Styles
Aggressive Defensive Styles
High Performance CultureWestpac Executive Team
19
Westpac Investor U
pdate 2002Reward
Value Focus
Strategy
Resource /CapitalAllocation
PerformanceMeasurement
Compensation
InvestorCommunications
Value management is a disciplined, coherent approach to creating sustainable long-term shareholder value
Strategic & financial assessment linked
Key Drivers of Value identified
Setting targets aligned to Strategy and Business Plans
Communicating performance and plans to investors with a focus on Key Value Drivers
Allocation to highest value creating strategies/initiatives
Capital management
Rewarding management on the basis of value creation
20
Westpac Investor U
pdate 2002
• Value Management Framework is the link between performance and remuneration at senior levels
• Performance Pays! is the link between performance and remuneration at lower levels
• Performance linked to remuneration outcomes for most of the organisation - the % varies by level
• All is supported by share ownership - 80% of staff
Reward
21
Westpac Investor U
pdate 2002Building our workforce for the future
05
101520253035404550
< 25 26-35 36-45 46-55 56+
Aus' labour force
Westpac
Our workforce is younger than the Australian labour force
22
Westpac Investor U
pdate 2002
14.4
22.725.5
32.136.0
0
5
10
15
20
25
30
35
40
1994 1996 1998 2000 2002
%
Women In Management
23
Westpac Investor U
pdate 2002Building understanding through Learning Maps
24
Westpac Investor U
pdate 2002Rigorous people tools and processes
Aspiration
Targets
Performance Feedback
HIGH PERFORMANCE
CULTURE
Consequence Management
Accountability
Annual planning process
Objective Setting
Performance Contracts
Executive Resource Review
Succession Planning
360° Feedback
Performance Review
ForcedRanking
Poor PerformanceManagement
RemunerationReview
People ManagerAudit
Staff PerspectiveSurvey
BSR - BoardStrategy Review
WorkforcePlanning
DevelopmentPlanning
25
Westpac Investor U
pdate 2002External recognition of our efforts
• 2002 United Nations Triple Bottom Line award -winner
• No 1. listed company on Good Reputation in 2001
• EOWA Citation - top 50 organisations in Australia for advancing women
• Corporate Work and Family Awards - silver medal
• Prime Ministers Award 2001 - nomination for disability initiatives
26
Westpac Investor U
pdate 2002What our results are showing - staff
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
Feb
-01
Mar
-01
Apr -
01M
ay-0
1Ju
n-0
1Ju
l-01
Aug
-01
Sep
-01
Oct
-01
Nov-
01De
c -01
Jan
-02
Feb
-02
Mar
-02
Apr -
02M
ay-0
2Ju
n-0
2
Staff Morale
Industry Norms
75th Percentile
50th Percentile
Morale above the 75th percentile
27
Westpac Investor U
pdate 2002Our people strategies are creating a sustainable competitive advantage
• A determined and focussed people strategy
• Our leadership is well positioned
• Our reward strategies are changing behaviours
Staff à Customer à Business Results
28
Westpac Investor U
pdate 2002