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How to successfully socialize the value of mobility to the C-suite Scotiabank’s Global Mobility program evolution

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Presenters

► Anita McEwen, Vice President – Compensation International Banking & Global Mobility Scotiabank

► Sandy Wight, Partner Ernst & Young LLP, Human Capital

Agenda

► Background on Scotiabank’s Global Mobility program ► Scotiabank’s Global Mobility program evolution ► Key findings of the “revitalization” project ► Determining the guiding factors for the future of global mobility ► Four steps to developing strategy and structure ► Socializing the program with leadership ► Revitalization project activities ► Program performance – defining the governance structure ► Three years later, Scotiabank is continuously reviewing and adjusting

Scotiabank’s diversified and growing businesses

Geographic Distribution of Business - Target: 50/50

Presence in High Growth Markets

*All figures based on YTD Q3, 2015 net income

International Banking

Canadian Banking

Caribbean & Central America Asia

Latin America

Diversification creates stability and lowers risk

Global Banking & Markets

Slide courtesy of Scotiabank

Scotiabank’s strategic priorities and areas of growth

Scotiabank’s Strategic Priorities ► Increasing customer focus ► Enhancing leadership depth, diversity and deployment ► Organizing to better serve our customers and reduce structural costs Primary Areas of Growth ► Latin America - Mexico, Colombia, Peru & Chile (the Pacific Alliance) ► Central America – Costa Rica & Panama ► Recent Acquisitions:

► 51% stake in Cencosud’s financial services business in Chile ► Retail and commercial banking operations of Citibank Peru ► Pending regulatory approval acquisition of Citibank’s retail and

commercial operations in Panama & Costa Rica


Polling question – please vote

Which of the following best describes your organization’s mobility program? A. We move employees from country to country and only get noticed

when the employee is going to Hong Kong and the family pet goes to Madagascar.

B. My organization knows global mobility exists because we are the ones that “cost too much,” and we keep getting asked to make cuts to the program.

C. We know we can do more for the organization but we can’t seem to get anyone to listen or give us a chance.

D. Our CEO, senior executives, HR partners, and corporate tax all know who we are, see us as strategic partners and value what we bring to the table.

“Make sure you negotiate for everything before you sign or they don’t give it to you.”

“The policy needs to be fixed.”

“It’s not fair … Some people get more.”

“They don’t know what it’s like to be on assignment.”

“They cost too much! We can do this without them ...“

“Mobility is broken! I need the noise to stop!”

“The country manager

says I cost too much

and I wasn’t his/her

choice for the role.”

Scotiabank – our situation three years ago


And the storm was coming …

Where does your company land?

of organizations experienced an increased need for global mobility over the past three years*

of organizations project an increase in global mobility over the next two to three years

companies are those that recognize a well-executed mobility strategy will be best placed to meet growing demands**

companies are those that are more tactical and ad hoc in their approach to global mobility

of companies say they don’t have a global mobility strategy

* Figures from “Unlocking the Value of Cross-Border Assignments” from Harvard Business Review Analytic Services and EY

** Terms from “Building Up, Building Out,” HRO Today, May 2015, Julia Palmer – Ernst & Young LLP, Executive Director

63%

72%

Strategist

Reactor

50%

- Expats primarily Canadian; small numbers - Primarily Asia & the Caribbean

- Expat numbers grow; primarily still Canadian - Bank’s global footprint expands rapidly

- 35% of assignees are female - 40% of assignees are non-Canadian

Support the leadership

strategy and enable the business in meeting its objectives

Global workforce

of the future -

2020 and beyond

Scotiabank’s Global Mobility Evolution


- Limited formal process and policy structure

- All Support done in-house - Lack of reporting & program management

- Formal policy - Some support vendor managed - Lack of consistency

- Need for active program management; not just policy - Executive support required

Alignment

with Bank’s Leadership

Strategy

Scotiabank’s Global Mobility Program Support Evolution


When was the last time you conducted a formal mobility program review? A. We are just kicking off a review now B. Within the last year C. Within the last three years D. Five or more years ago


Scotiabank’s Global Mobility project review activities

► Policy Benchmarking ► Confidential Assignee Surveys ► Executive and Assignee Interviews ► Review of assignee feedback with vendors ► Development of Global Mobility Guiding Factors ► Created Assignee model based upon Development Value

and Business Need ► Presentation to Human Capital Committee in Q4 2012


► Management of Expectations: ► Assignee’s ► Business Partner’s

► Program Transparency: ► Apply policy consistently

► Communications: ► Improve communications – “out of sight, out of mind” ► Global Mobility updates & information

Scotiabank’s key findings of review


Scotiabank’s key findings Expectations management

Management of assignee expectations is crucial at all stages, but especially before the assignment starts. ► Dialogue about the objectives of the position and future roles

► What does success look like? (e.g., Finding local successor? ) ► Length of assignment and expectation after three to five years (localize, repatriate,

etc.) ► Potential for promotion ► What happens when I return home? Do I return home? ► Assignee role in maintaining home country contacts

► “The Bank will take care of everything.” ► Early discussions by managers may unintentionally set unreasonable expectations ► Global Mobility and vendors execute according to policy ► Ensure expectations of the process are set out and understood by both the business

and the assignee (e.g., time required to obtain immigration)


Scotiabank’s key findings Transparency and communications

Transparent two-way communication needed at all stages of the assignment process ► Policy applied inconsistently; lack of transparency from assignee perspective ► Candid career conversations – before and during the assignment ► Improve communications – “out of sight, out of mind”

► Home country managers and HR ► Global mobility updates & information


Scotiabank’s Global Mobility Guiding factors

1. Business line HR and mobility work together to actively manage employees on assignment.

2. Prior to accepting an assignment be clear with the employee on the following: ► Expectations regarding the length of the assignment ► Possibility of localization, where applicable, ► Objectives of the assignment, ► Future career path; where possible

3. The employee is expected to maintain his or her business networks. Where appropriate the employee may also need to network in an alternate location.

4. The business value/development value and global leadership resource planning are all considered when a potential assignment is being discussed. Slide courtesy of Scotiabank

Scotiabank’s rationale for assignee model

► Aligns assignment policy with leadership development objectives and business value of the assignment

► Aligns cost and benefit

► Is consistent with our Leadership Strategy

► Provides a transparent rationale for differences between individual assignees potentially in the same location

► Depends on managers having frank discussions at the outset of an assignment about the business and talent objectives


Scotiabank’s alignment of Global Mobility to Leadership

*Service tenure is not broken Slide courtesy of Scotiabank

► Global Mobility is an enabler to Leadership Development ► Mobility assignments treated as career opportunity or to fulfill critical

business need ► Alignment to leadership changes the focus for the business to the

career opportunity; not the mobility package ► Global Mobility team manages all details related to mobility package,

employee concerns & exception requests ► HR relationship managers and business partners to actively manage

assignees; supported by Global Mobility ► Senior executive sign-off annually after 3 yrs of assignment ► Repatriation/localization after 5 yrs ► Assignees advised of this in initial assignment letter

Scotiabank’s business impacts


► Okay, now what? ► So what? ► What do we do next? ► What makes this time different?

Many of you have been in this same place after conducting a review of your mobility program and making recommendations. What happened next? A. We implemented every recommendation and the program couldn’t

be better. The C-suite is a strong supporter. B. We were never able to get our recommendations to the C-suite, but

we were able to make some changes within the program. C. We have implemented some of the recommendations with C-suite

support, but still have a ways to go. D. Even without a formal review, progress can be made and we are

headed in the right direction.


Four steps to developing strategy and structure*

*From “Building Up, Building Out”, HRO Today, May 2015, Julia Palmer – Ernst & Young LLP Executive Director

1. Engage with C-suite executives ► Meet quarterly ► Strategists shift the focus from issues and costs to strategy and planning ► Programs that run smoothly with little noise can improve the level of engagement ► Good data and metrics support informed strategic planning decisions

2. Have good structures and leadership to support mobility’s success ► Review and implement sufficient global mobility policies and structures to facilitate

mobility ► Implement a proactive plan around cost management and skills replacement ► Help ensure support and ownership from senior leadership

3. Demonstrate the return on investment (ROI) of global mobility ► Engage with management to understand what metrics are relevant and important

4. Actively promote mobility in career and leadership discussions ► Be engaged earlier and more pro-active in planning and candidate selection

► Collaboration with business line HR & Country HR ► Work directly to resolve specific issues or concerns unique to their partners ► Obtain their buy-in and demonstrate the value we brought to the table ► Held a 2⅓ day offsite for business line HR and the senior HR country leads to

launch the new program and included our vendor partners

► Scheduled sessions with every executive (EVP+) and their direct reports to take them through the changes ► Customized the presentations to demonstrate the value specific to their areas ► Asked to present to other members of their teams ► Meet one on one or in small groups if requested to meet the business need

► Gave everyone the opportunity to voice questions or concerns in advance of the launch to ensure our most senior people had confidence in the program to give it lasting credibility

Scotiabank – socializing the value of mobility


Program Operations Program Foundations Program Sustainment • SLAs documented for all vendors

globally; hold them accountable • Forms, templates, offer letters • Centralized housing allowances for all

countries • Immigration Profiles by Country -

timelines, process & requirements • Global tax and immigration providers • Cross cultural training • International pension plan (if req’d) • Global assignee payroll procedures New

2015 • Technology support for assignment

management New 2015

Socialize with senior leaders globally and obtain & maintain buy-in

Create Key Performance Indicators (KPI’s) & Dashboard Metrics

• Program reporting • Assignee administration • Regular assignee satisfaction surveys • Assignee engagement surveys

Review KPIs/Dashboards Feedback

• Assess results for program success • Determine if changes required • Maintain as an ongoing process

Organizational Enhancements &

Communications • Roles & responsibilities • Communication maps • Program governance

Global Mobility Community Portals

• Scotiabank Live private communities for both HR globally and employees on assignment:

• Communications/updates • Support materials • Policy • Guidebooks

• Local plus policy framework • Security/country risk profiles & policy • Global partnership with vendors

• Straightforward plain language policy • Employee Guide to Global Mobility • Assignee communications • Mobility life cycle support info for assignees

• Accounting processes streamlined • Streamlined exception processes • Documented end to end processes • Expense reimbursement processes • Reimbursement in multiple currencies • Operationalized changes with shared

services & vendors • Documented processes for shared

services

• Global mobility policy matrix aligned to leadership strategy for HR

• HR Guide to Global Mobility • HR Guidelines for Repatriation • Training & info sessions for business line HR

& country HR leaders • HR communications • Policy & Process Matrix • Active program management with all

stakeholders

Scotiabank’s Global Mobility revitalization project activities – an ongoing effort


Scotiabank – financial composition of assignment support Assignment Type

Assignment Support

Strategic Leadership

Critical Skills Learning Development International

One Way Relocation

Local Plus *denotes plus components

Cross Border One Way

Relocation

Duration Long Term Long

Term Short Term

Short Term Long Term NA NA NA

Tax Consultation Y Y Y Y Y Y Y Y Immigration Y Y Y Y Y Y Y Y Pre - Acceptance Trip Y Y N N Y Y Y N Relocation Allowance Y Y N N Y Y Y Y

Home Country / Split Payroll

Y Y Y Y Y N N N

Local Payroll & Taxation N N N N N Y Y Y Global Mobility Premium Y Y N N N N N N Commodities & Services Differential

Y Y N N Y Modified

N N N

Per Diem N N Y Y N N N N Housing Support Y Y Y Y Y N Y* N Country Allowance Y Y Y Y Y N N N Home Leave Y Y Y Y Y N N N Dependent Education Y Y N N N N Y* N Tax Equalization Y Y Y Y Y N N N Local Pension & Benefits N N N N N Y Y Y Car Purchase Subsidy Y Y N N Y Y* N Networking Visit Y Y N N N N N


► Assignee Experience Model ► Set them up for success ► Pre-acceptance trip ► Moving experience ► Communication ► Repatriation

► Assignee Communication Maps & Life Cycle ► Make it simple and easy to understand in manageable pieces

► Scotiabank Live Communities ► Employee Guide to Mobility ► Policy ► Global Mobility Life Cycle ► HR Guide to Mobility ► Localization Guide for HR

► Global Mobility Revitalization Project Activities

Scotiabank – communication and support globally


Scotiabank – Global Mobility Assignee Communications


Scotiabank – Global Mobility HR Communications and Support


The winds continue to blow – looking forward

Operational level

► Perform day-to-day service delivery

► Respond to service delivery queries

Strategic level

► Implement standardize processes

► Resolve performance issues

► Resolve process design issues

► Manage expectations

Sub-process owners, COEs*

Account manager/ service management lead

Executive level

► Set business strategic direction

► Assess alignment of global processes with business objectives

Executive Review Board

Markets leaders CFO*/CPO*/COO* Executive leadership

Process working groups

Sub-process owners

Service representatives

Staff representatives Account manager

Governance Council

GPOs* SME*/COE*/GBS* Leaders as needed

► Promote joint commitment across businesses, functions and regions

► Business involvement ► Approve capital spend/

major projects

► Approve process change requests

► Review rolling action log for continuous improvement

► Monitor performance

► Monitoring and reporting of performance

Meeting frequency

Annual

Quarterly

Monthly

Bi-weekly or weekly

Leading practices

► Multi-layer governance to engage the wider community

► Governance framework that encompasses business stakeholders

► Clear accountability with defined roles and responsibilities

► Service-oriented approach to address issues

► Review service performance and costs – ensure objectives are met

► Recommend capital spend/major projects

► Monitor performance/ spend

Global process owner

Performance measurement Defining governance structure and reporting intervals

Illustrative

*CFO – Chief financial officer *CPO – Chief performance officer *COO – Chief operations officer *SME – Subject matter expert *COE – Center of Excellence *GBS – Global business services *GPO – Global process owner

Does your company have a formal governance structure in place? A. Yes, we meet with the executive committee/C-suite annually and a

broader stakeholder group semi-annually or quarterly. B. Nothing formal but we meet at least annually with a broader

stakeholder group or SVP level leader. C. No, but we do deliver to an SVP level leader, a mobility program

value report on an annual basis. D. Unfortunately no, but it’s a great idea.


At Scotiabank, we look at the definition of global mobility by the objectives we seek to achieve:

To support the Bank’s leadership strategy and

To support business line strategies globally to ensure Scotiabank delivers on its promise to our customers

Our Global Mobility Program provides Scotiabankers with the opportunity to develop “Global Mindset,” acquire leadership experience in another geography, and strengthen leadership capability.

What defines global mobility at Scotiabank? Three years later


Trust doesn’t just happen. It is the result of concerted efforts to learn about one another’s needs and provide the best service possible in every branch and every office, every day. Our customers prefer Scotiabank because of our employees — their focus on customer service, their integrity, their insight, and their respectful approach.

That is why it is so important to the Bank to be able to post talented individuals where their skills are most needed and where they can learn and grow. Together with our other HR programs and policies, the Global Mobility program supports our strategic priorities to develop a deep and diverse pool of leadership talent.

The Bank values your contribution to achieving its objectives, and looks forward to a mutually beneficial assignment experience, creating highly engaged customer focused global leaders who mirror the diversity of our customer and employee populations.

Scotiabank’s linkage to our strategic priorities


Scotiabank Results comparison – 2013 vs. 2015

Right person, right role, right time Investing in key leadership talent

8

57

36

106

89

62 65

1721

0

20

40

60

80

100

120

2013 2015

Non Mgmt Mgr/Sr Mgr Director VP SVP

2013242 Assignees40% with Leadershipindicators33% are executives

2015219 Assignees58% with Leadership indicators39% are executives


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