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Ernst & Young HR Leading PracticesErnst & Young HR Leading PracticesJeddah – Jan 2008Jeddah – Jan 2008

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AgendaAgenda• Introduction to E&Y• Recent HR Initiatives• Q&A

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An OverviewAn Overview

Ernst & YoungErnst & Young

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§ Leading Global Firm All our offices and people, wherever they are located, practice under common professional, ethical and independence standards. We utilize common methodologies that integrate risk analysis and business analysis with statistical techniques and computer tools.

§ Best People Highly experienced subject-matter-experts who will participate as members of our core team.

§ Best Practice Recognized as a leading professional services provider with supporting methodologies and tools

USA / Canada§ 110 Offices§ 39,000 People

Europe§ 350 Offices§ 35 Countries§ 46,000

People

CIS§ 19 Offices§ 8 Countries§ 2,300

People Far East / Pacific§ 76 Offices§ 15 Countries§ 15,200 People

India Sub§ 20 Offices§ 3 Countries§ 3,200 People

Middle East§ 18 Offices§ 13 Countries§ 3,300 People

Africa§ 52 Offices§ 29 Countries§ 3,800 People Australia / NZ

§ 15 Offices§ 4,800

People

Central /South America§ 64 Offices§ 26 Countries§ 8,000 People

About Ernst & Young … cont’d

110,000 professionals in 132 countries world-wide…...

Ernst & Young - Who Are WeErnst & Young - Who Are We

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About Ernst & Young Middle East

1. Baghdad 1923

2. Bahrain 1928

3. Beirut 1947

4. Doha 1950

5. Kuwait 1952

6. Amman 1953

7. Abu Dhabi 1966

8. Dubai 1966

9. Jeddah 1967

10. Riyadh 1968

11. Al Khobar 1969

12. Sana’a 1971

13. Muscat 1974

14. Sharjah 1974

15. Cairo 1985

16. Ramallah 1994

17. Damascus

18. Libya 2007

§ The Middle East practice is an independent professional firm, which has been present in the region since 1923 and is a member firm of Ernst & Young Consulting International. During the last 79 years, the firm has evolved to meet the developments within the area and today our clients are served by over 3,000 professionals, out of 18 offices in 13 countries in the Middle East.

Ernst & Young - Who Are WeErnst & Young - Who Are We

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G LO BAL MIND SE T

EXE

CUTIO

N

QQUUAALLIITTYY

PPEEOOPPLLEE

M arke t Leade rsh ip

S HARE D VALUE S

Re la tionsh ip s

Re pu ta tion S ha re

Bra nd

GGRROOWWTTHH

O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY

EXE

CU

TIO

N

Three S trateg ic Three S trateg ic D rive rsD rive rs

S trate g icS trate g icO b jec tiveO b jec tive

T hree T hree F oundational F oundational

E lem e ntsE lem e nts

O ur S tra tegy… O ur S tra tegy… C lear, F ocusedC lear, F ocus ed

G LO BAL MIND SE T

EXE

CUTIO

N

QQUUAALLIITTYY

PPEEOOPPLLEE

M arke t Leade rsh ip

S HARE D VALUE S

Re la tionsh ip s

Re pu ta tion S ha re

Bra nd

GGRROOWWTTHH

O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY

EXE

CU

TIO

N

G LO BAL MIND SE T

EXE

CUTIO

N

QQUUAALLIITTYY

PPEEOOPPLLEE

M arke t Leade rsh ip

S HARE D VALUE S

Re la tionsh ip s

Re pu ta tion S ha re

Bra nd

GGRROOWWTTHH

O PERAT IO NAL EXC EL LE NC EACC O UNT -CE NT RIC ITY

EXE

CU

TIO

N

Three S trateg ic Three S trateg ic D rive rsD rive rs

S trate g icS trate g icO b jec tiveO b jec tive

T hree T hree F oundational F oundational

E lem e ntsE lem e nts

O ur S tra tegy… O ur S tra tegy… C lear, F ocusedC lear, F ocus ed

Ernst & Young - Who Are WeErnst & Young - Who Are We

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Ernst & Young Structure Ernst & Young Structure Assurance TAX Business Advisory Services

Privatization and Restructuring

Transaction Advisory Services

Technology and Security Risk Services

Fraud Investigation and Dispute Services

Business Management Advisory Services

Technology Enablement

Business Improvement

Program Assurance

Finance Functions

Human Capital Services

People Strategy• HR Strategy Articulation• Organization Design• Job Evaluation & Grading

Performance / Reward• Compensation & Reward• Performance Measurement & appraisal• Competency & Assessment Centers• Training Development Plans• HR Policies & Procedures

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Ernst & Young Structure Ernst & Young Structure

Service Lines

Sub Service Lines

Industries

Geographies

Support

Assurance TAX Business Advisory Services

Privatization and Restructuring

Transaction Advisory Services

Technology and Security Risk Services

Fraud Investigation and Dispute Services

Business Management Advisory Services

Oil and Gas

Transportation

Financial Services

Government

Health Care

Real Estate

Islamic banking

Family Business

Jeddah

Khobar

Riyadh

Amman

Dubai

Muscat

Kuwait

Doha

Bahrain

Cairo

Human Resources Legal Marketing Finance & Acct Risk & Quality

Illustr

ation

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Recent InitiativesRecent Initiatives

HR PracticesHR Practices

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E&Y Recent HR InitiativesE&Y Recent HR Initiatives

Rank Harmonization

Competency Framework

Accelerated Leadership Plan

EYLeads

Recruiting Incentive

New Graduate Program

Balance Score Card

Employee Satisfaction

Survey

Personal Learning

and Develop Program

Work Smart PAC

SMDC

&

EMDC

360 Evaluation

Reward and Compensati

onCounseling

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Rank HarmonisationRank Harmonisation

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Introduction

The project18 global ranksIntroduced from 30 June 07Definition of ranks

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Project Overview – the drivers for change

Harmonised rank definitions, across borders, are needed to:• drive the consistent standards that will support our promise ofproviding seamless, consistent, high-quality client service, worldwide;• mobilise our people across borders;• meet increasing regulatory demands;• support better reporting and business management.

Our clients think and act globallyThe need for a global mindset

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Rank Harmonisation: The Benefits…

For our business…

• The right people in the right place at the right time

• Area Effectiveness

• Clearer people definitions and greater transparency around their credentials

• Better definition of our core business services, enabling us to appropriately invest in development of this important population.

• Greater clarity around career models will help us recruit and retain talent.

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Rank Harmonisation: The Benefits…

For our people…

• Greater clarity around their career path and what is required to move from one rank to another. This supports our efforts to promote people on a fair and equitable basis.

• Easier for us to identify and define mobility opportunities

• It will also help all our people take advantage of learning and development opportunities, enabling us to better share and leverage materials (eg Intro to Manager).

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Career Path - DefinitionCareer Path - Definition

4EY Global has 5 career ranks for client service employees and are primary career milestones

4A change in rank means a change in responsibility, competency level and authority

4Promotion is a movement from one rank to another

4There will be a ‘grow or go’ ethos at each rank

4EY Global has 5 career ranks for client service employees and are primary career milestones

4A change in rank means a change in responsibility, competency level and authority

4Promotion is a movement from one rank to another

4There will be a ‘grow or go’ ethos at each rank

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Client Service Ranks

Partner/Principal

Senior Manager

Manager

Senior

Staff/Assistant

Intern

Executive DirectorEx

ecut

ives

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4444332211 55

ME BAS Career PathME BAS Career Path

Consultant1&2

Senior Consultant

1&2

Manager

Partner

Fast Track

Director

Senior

Manager1&2

2 years 3 years 2 years 4 years ~12 years to Partner

3 years 4 years 2 years 4 years ~14 years to Partner Interim Track

Rank Code

StaffStaff

PartnerPartner

SeniorSenior

ManagerManager

SeniorManagerSenior

Manager

Ex.Director

Ex.Director

RankRank

GradeGrade

SADCSADC SMDCSMDC EMDCEMDC PACPAC

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Mapping of BAS Grades – Middle EastMapping of BAS Grades – Middle East

Current Role / Business Title

Proposed Global Rank

Proposed Grade

All SSLs (NEMIA)

Proposed GFIS Rank

Today’s Progression

Track *

Interim Progression

Track **

Fast Track ***

Relevant Years of Experience

Partner Partner Partner (5) 111 16+ Track 14+ Track 12+ Track 12+ Director Executive

Director Director (4) 131 2+ 1 1 12+

Executive Manager

(SM2) 212

Senior Manager

Senior Manager

Senior Manager (4)

(SM1) 211 Up to 4 Up to 4 Up to 4 8+

Manager Manager Manager (3) 321 Up to 3 Up to 2 Up to 2 6-8 Supervisor (SC2) 422

(SC1) 421 (Ex.2) 422

Senior Analyst Senior

Senior Consultant (2)

Executive (TAS) (Ex.1 ) 421

Up to 4 Up to 4 Up to 3

2-6

Analyst (C2) 442 (C1) 441

(An.2) 442 Assistant Analyst Staff Consultant (1)

Analyst (TAS) (An.1) 441

Up to 3 Up to 3 Up to 2 0-2

Trainee Interns

Intern Intern 511

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Language and Terminology

• Ranks – our primary career milestones internally – they are not external job titles.• Grades – subdivisions of ranks that represent the way we measure the skills and experience of, for example, one Senior against another. Maximum of four grades per rank •Roles – responsibilities carried out by a person defined by the competency levels required. • Promotion – movement from one rank to another.• Progression – movement between grades (within a rank).

Business Advisory Services

Global BAS Competency Model

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Each competency includes, with equal weight and importance:

Skills Consulting and technical skills we need to effectively deliver the BAS value proposition to clients and to sustain the BAS business. E.g. Networking.

Behaviours The way in which we deliver to our clients and work together – the way clients immediately recognise, and we demonstrate, that we are BAS consultants. E.g. Consistently demonstrating BAS values.

Knowledge The understanding of the BAS practices, client, business and industry context that drives the commercial relevancy and innovation of our work with clients. E.g. Informed opinions to drive conversation/dialogue.

What is a Competency?

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BAS Competency Model OverviewThe BAS Model contains following clusters:

Technical Skills

Customer Domain Knowledge

Supply Chain Domain Knowledge

Finance Domain Knowledge

Levers of Change

The competencies we expect all of our BAS consultants to develop during their career as a BAS consultant independent of the part of the organisation they ‘belong to’

Core Business Advisory

Finance - Finance Process Effectiveness

Finance - Forecasting, Planning, Budgeting

Finance - Performance Management

Finance - Financial Statement Close

Finance - Finance Transformation / SSC

Finance - Finance Rapid Assessment

Finance Domain

Knowledge

The BAS Clusters and Associated Competencies

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The BAS DNA

Valued RelationshipsWe are at our best when we;

• are both committed to a long term relationship

• etc

Sustainable ImprovementWe are at our best when we;

• Make good and lasting change happen in our clients

• etc

Team ChemistryWe are at our best when;

• The EY team and client team become a high-performance team

• We develop highly capable and very flexible consultants

• We live our values

Real InsightWe are at our best when we;

• dedicate ourselves to creating innovative and actionable insight for our clients

• etc

3

1 2

4

We can become more distinctive in the Advisory market by emphasising 4 key

characteristics

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BAS Competency ModelDevelop Team Chemistry:How we attract, grow and retain our people and develop high performance teams

Deliver Measurable Sustainable Improvement:How we develop and deliver valuable and sustainable solutions with our clients that have a lasting improvement on performance

Build Valued Relationships:How we work with our clients to create mutually valuable relationships

Create Real Insight:How we create, develop and capture innovative and relevant knowledge and solutions

Maximise Business Operations:How we build and operate our business to deliver best value for EY, BAS our clients and our people

Technical:The industry and offering knowledge, skills and experience we bring to bear in working with our clients

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BAS Core Competencies

Develop Develop Team Team

ChemistryChemistry

Create and direct high-performing teams across

EY service lines and business units and

integrating senior client stakeholders

Build and manage high-performing teams, across EY service lines and with client people, living the BAS

DNA consistently

Role model BAS Values, counsel junior team members and manage BAS and client team dynamics

Actively extend your EY network, buddy with new hires and build your personal brand with senior colleagues

Build your peer network and take an active and supportive role in the team to enhance team effectiveness

Deliver Deliver Measurable Measurable Sustainable Sustainable

ImprovementImprovement

Create Create Real InsightReal Insight

Use deep understanding to create innovative,

strategically important, client-focused solutions across service lines and

business units

Contribute to BAS insights through research and active participation in

development sessions, build technical knowledge

Build Build Valued Valued

RelationshipsRelationships

Leverage networks to maximise benefit for both EY and clients, crystallise and shape opportunities to

drive long-term value

Leverage relationships based on keen insight into

client value drivers and BAS strategy, be adept at

commercialising relationships

Build and strengthen relationships that can be leveraged to create value

for EY and clients, identify and explore areas of

opportunity

Build strong relationships with BAS and client people through personal integrity, begin to identify areas of

mutual opportunity

Key focus on internal relationships and gaining understanding of client relationship management

Maximise Maximise Business Business

OperationsOperations

Leverage experience to influence BAS insights, own client deliverables that demonstrate strong, current

insight and awareness of environment

Channel experience into innovative BAS insights and be adept at tailoring for specific client needs, demonstrating real empathy and understanding

Lead development of fresh insights to build internal and market profile as an SME, anticipate changing client needs to ensure

cutting-edge point of view

Understand, interpret and evaluate client and team needs

Engage with client and team

Build Valued Build Valued RelationshipsRelationships

Shape solutions

Generate ideas

Create Real Create Real InsightInsight

Maximise Maximise Business Business

OperationsOperations

Develop Team Develop Team ChemistryChemistry

Deliver Deliver Measurable Measurable Sustainable Sustainable

Improvement:Improvement:

Strategic and operational planning

Coach self and others Analyse data

Demonstrate commercial awareness and rigour

Communicate effectively

Conduct research

Skills Summary for Core Competencies

Business Advisory Services

Accelerated Leadership Program

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The ALP is an exclusive programme for our strongest leadership talentThe ALP is an exclusive programme for our strongest leadership talent

An accelerated but not exclusive route to partnershipAn accelerated but not exclusive route to partnership

The ALP

Purpose

Goal

A firm-wide, three year programme

Accelerating the development of leadership and business skills

Increase the diversity and power of our leadership strength

Acceleration

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Overview of the ALPOverview of the ALP

Formal learning(skills workshops)

Informal learning(on-the-job

experiences)

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BU specificBU-specific Leadership Development Workshops

4Insight Seminars

4Speaker Events

2 x 2 daysNational Leadership Development Workshops

2 daysAnnual Conference

Annual FrequencyActivity

Formal LearningFormal Learning

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ALG FacilitatorAction Learning Group (ALG)

Partner MentorMentoring

Counselor/MentorDevelopment Contract

Partners/ClientsFormal workshadowing scheme

CounselorStretching ‘on-the-job’ work experience

SupportActivity

Informal LearningInformal Learning

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The ALP is a 2-way dealThe ALP is a 2-way deal

VALUE EXCHANGE

• Partner Sponsorship• On the job challenge• World-class training• High quality support

and coaching

• Ownership of personal development plan

• Courage to move outside comfort zone

• Professional commitment to the programme

• Mindset which embraces ambiguity and new challenges

Firm Individual

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2007 Selection Process2007 Selection Process

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Performance

Potential

Values

• Continued rating as ‘5’ or ‘4’

• Significantly outperforming peers

• ‘High Potential’ or ‘Best in Class’

• Recognised for their learning agility

• Personal alignment with our values

• Role model of our values in action

Assessed against three dimensionsAssessed against three dimensions

The ALP is now open to individuals in both client-facing and business support roles who are up to 12 months either side of promotion to manager

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Dimensions of Leadership PotentialDimensions of Leadership Potential

Ability Engagement

Aspiration

HIPO

Although only 29% of current high performers are also high-potentials, 93% of high-potentials are high performers

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Three ways in which high performers fall shortThree ways in which high performers fall short

Aspiration

EngagementAbility

Misaligned StarsMisaligned StarsEngaged DreamersEngaged Dreamers

Unengaged StarsUnengaged Stars

Engagement

Aspiration

Ability

Ability

Aspiration

Engagement

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Is your counselee really demonstrating high potential?Is your counselee really demonstrating high potential?

ABILITYSkill to operate at a higher and

more complex level of performance than required in

the current role

ASPIRATIONHigh need for achievement and/or expressed desire to influence the

organisation

ENGAGEMENTStrong commitment to and

identification with the organisation, combined with a willingness to put

additional effort into work

Analytical rigour

Self-awareness

High performance

in current role

Self confidence

Maturity

Strong

intellect Initiative

Commitment to

self-development

Thirst for learning

Appetite for new experiences

Challenges status quo

Track record of asking for, and learning from, feedbackMakes a difference

Bravery

Alignment

with our

values

Goes the extra mile

Inclusiveness

Passionate

about EY

Positive

influencer of

peer groupEnthusiastic supporter of

change

Energy

++

Develops

and builds

influential

relationships

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Selection criteria for ‘07 ALPSelection criteria for ‘07 ALP

12 months pre/post promotion to manager

(determined w.r.t1 October 2007)

Nine Box Model rating must be ‘High Potential’

or ‘Best in Class’

Open to client-facing and business support staff

Performance rating must be 5 or 4

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The 2007 selection process combines both individual self-selection and BU nomination and sponsorship

The 2007 selection process combines both individual self-selection and BU nomination and sponsorship

STEP 4 BU Invitation to Selection

(by 31 July)

STEP 5 Selection

(August/September)

STEP 6 BU Nomination

(By 14 September)

STEP 7 National Review

(By 25 September)

STEP 8 Mike Cullen Confirmation

(28 September)

STEP 9 ALP Conference(29/30 October)

STEP 1 Firm-Wide Communication

(May)

STEP 2 Counselor Notification

(June)

STEP 3 Round Tables

(July)

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Questions to help counselors with selectionQuestions to help counselors with selection

Does your counselee meet the baseline selection criteria at

this stage?ALP participants will gain

exposure to Mark Otty and the UK Leadership Team.

What would Mark think of this individual and those who

selected them?If a client asked for a Manager from your group to work on a key project, would you immediately

think of this person?Is your counselee ready to focus on developing their leadership

skills and is ALP the right environment for them to do so?Do the partners believe that

this person is demonstrating strong potential now to be a senior leader of the future?

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THANK YOUTHANK YOUQuestions?Questions?

EYLeads

Recruiting Incentive

New Graduate Program

Balance Score Card

Employee Satisfaction

Survey

Personal Learning

and Develop Program

Work Smart PAC

SMDC

&

EMDC

360 Evaluation

Reward and Compensati

onCounseling