NASSCOM India ITESBPO Summit 2006

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NASSCOM India ITES-BPO Summit 2006
Attracting, Managing and Developing Talent
Alexander Campbell UBS AG, Head of Human Capital
Management
June 2006
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Content of Presentation

• About UBS
• Focus of UBS Group HR
• UBS in India
• Challenges
• Conclusions

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SECTION 1

• About UBS

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About UBS Globally
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UBS's positioning today
UBS
Global Wealth Management Business Banking

• World's largest wealth manager
• CHF 1,822bn in invested assets
• WM CHF 944bn
• WM USA CHF 728bn
• BB CHF 150bn
• Wealth Management
• Best global Private Bank (Euromoney)
• Wealth Management USA
• 4th largest full service US broker (15 market
  share)3
• Business Banking Switzerland
• 25-35 of Swiss banking market

Wealth Management
Wealth Management USA
Business Banking Switzerland
1 Market capitalisation as per 01.11.2005 2 Financ
ial Businesses only 3 As per 2Q05
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Leveraging the platform for growth
This is who we are...
Globally focused model

• Focused on securing global leadership positions
  in
• Wealth Management
• Asset Management
• Investment Banking
• Business Banking Switzerland to exploit
  economies of scale
• Targeting above GDP growth businesses
• Integrated model as key differentiator "One
  Firm" approach

This is who we are not...
Niche firm
Conglomerate

• Narrowly defined markets, geographies, or
  opportunities
• Limited economies of scale
• Limited diversification benefits

• Horizontally aligned business
• Substantial challenges to management resulting
  from complexity of operations

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Reaching for the top
Growth through MA
Organic growth
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Two main phases in corporate development of UBS
Establish the Platform
Develop the Platform
When
Up to 2000
Post 2000
Principal Driver
MA
Organic growth

• US Investment Banking
• European Wealth Management
• FX repositioning
• APAC footprint
• Supplemented with in-fill acquisitions

Examples

• S.G. Warburg
• UBS-SBC
• PaineWebber

UBSs cumulativetotal return toshareholders
relative to DJ World Bank index since 1990
94
145
Total Return is based on Datastream data from
end of 1990 to 23 September 2005 in CHF and
adjusted for stock splits. Dividends are
reinvested, share buybacks reflected in the share
price. UBSs pre-1997 numbers have been combined
pro forma for UBS and SBC
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The integrated business model at work
1520 of market capitalization is due to the
integrated business model
Global Asset Management
Investment Bank
Derivatives Research
Trade flows
Global Wealth Management Business Banking
Corporate Center
RiskManagement
ITI
Communication
Controlling
Treasury
Human Resources
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SECTION 2

• Focus of UBS Group HR

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Focus of Group HR

• Facilitating integrated business model one
  firm
• Balancing HR requirements of the Group with those
  of the operating divisions
• High potential identification and development,
  senior management succession
• Managing appraisal and creating a performance
  culture
• Managing key incentive programs
• Setting global recruitment standards and opening
  the internal labor market
• Implementing common HR policies platforms where
  desirable
• Management of HR Shared Services
  outsourcing/offshoring

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Resourcing Our challenges
Workforce planning controlling
Integration
Selection
Attraction

• Creating a robust resource planning methodology
• Aligning resourcing model to strategic growth
• Opening the internal labor market
• Ensuring consistently high recruiting standards
• Common processes and policies being developed
  eg. internal sourcing policy, unified job
  advertising, data banks of key skills

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Talent Development Management Overview
UBS Strategy
From MA towards organic growth
Talent strategy
From talent acquisition towards talent development
Talent by Acquisition
Talent by Development
Recruiting Identification Selection On-Boarding
Identification Talent Pipeline Succession
Planning Development
Integrated Approach
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Identification of High Potentials

• Performance Extraordinary performance track
  record over the last 2 years. In particular, they
  should have demonstrated ALL of the following
  competencies

GMB
Top Leadership Talents (TLT)
GMB SC
Key Position
SuccessionCandidates
High Potentials

• Learning agility active in the pursuit of and
  engagement with feedback and alternative
  perspectives aimed at improving own performance
  style
• Mastering complexity change quickly
  assimilates complex information, deals with
  ambiguous situations and engages with change
• Awareness of self others (emotional
  intelligence) awareness and management of self
  and others and ability to use this to lead
• Drive and commitment ambition, capability and
  determination to succeed
• Working in partnership working collaboratively,
  high influence,establishing relationships
• Resilience and managing stress coping
  mechanisms, ability to manage and reduce stress
  for others

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Integrated key talent managementoverview
UBS Leadership Insitute Development Architecture
Management of Key Talents
Program
Target Audience
ASF
GEB GMB
GEB

• Development career review process
• Identification of suitable development
  opportunities career moves
• Implementation of agreed development measures

GMB
Mentoring
Key Position Holders
SLC
Key Position Holders
GMB SCs

Succession Candidates
GLE 1GLE 2GLE 3
Selected Succession Candidates
UBS Leadership Pipeline
Accelerated Leadership Experience
Top Talents
Top Talents
High Potentials
all UBS employees
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Leadership Institute Group-wide Programs
On the top level the programs are integrated
across BGs.
Annual Strategic Forum
GEB GMB
Group Mentoring
Senior Leadership Conference
KEY TALENT
Global Leadership Experience Programs
Accelerated Leadership Experience Program1
Investment Bank
Global Asset Management
Corporate Center
Wealth Management Business Banking
Wealth Management USA
Note 1 Focus on high potentials not top
leaders
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Appraisal (PMM) Process and Benefits
? provides a consistent way to define, track and
measure objectives and results ? reinforces our
corporate culture and the one firm approach ?
provides a common performance management
architecture whilst respecting valuing the
different businesses and business models across
the Group ? stimulates organizational
commitment ? fosters a climate of continuous
learning and professional growth
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Global Competencies
Professional Behaviour
Teamwork
Client Focus
Technical / Specialist Knowledge
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HRIT is critical
COMPONENT
SIGNIFICANCE FOR HR
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Potential Future HR L Operating Model
Client
Employee
Business Leaders
Line Manager
Tier 0 Self Service web,IVR and knowledge base
CRM Services
Tier 1 Simple Inquiry and Operational Support
Contact Center
Inquiry Management Cross-functional
Administration and Operational Support (ASC)
Tier 2 Complex Inquiry and Operational Support
Learning Operating Model still to be confirmed
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SECTION 3

• UBS in India

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About UBS in India

• Investment Banking presence in Mumbai (52 staff)
• Banking license applied for
• Expansion of IB activities
• Basis for growing an onshore Wealth Management
  Business
• Indian Service Centre, Hyderabad
• Both Knowledge Working BPO
• Currently 160 staff in IT Production, IB
  Analytics and IB documentation
• Estimate 500 staff by end 06 scaleable 2000
• Managed Services Model (SLAs) or offshore
  Extension Model

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Recruitment challenge in India

• Sources Deployment
• Competitors Knowledge working ISC
• IIM Global recruitment / KPO ISC
• IIT
• Other universities KPO/BPO/ISC
• Local colleges BPO

MBA, M. Com / B. Com, CA/CFA, B. Eng
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Key Elements of talent management strategy for
India

• Intensive marketing effort to target academic
  institutions
• Reinforcement of UBS brand
• Emphasis on selection testing/high entry
  standards
• UQ total fixed pay
• KPI based appraisal
• Significant variable pay driven off KPIs
• Formal job descriptions, KPIs and competency
  framework
• Competency based career development model
• Career opportunities in India and elsewhere
• Part of UBS family/offshore management
  involvement
• Effective employee communication

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Sample Job Description Analyst
Job Description

• Statement of purpose To support the Investment
  Banker / Onshore Analyst in preparing pitches /
  presentations to clients by conducting research
  within clearly laid-out formats and structure, in
  areas such as Healthcare, Technology and MA.

• Broad components of the role
• Create sector and company analysis for various
  comparable data
• Summarise developments in clearly identified
  topics for the companies / sectors identified
• Update comparables / profiles on a continuous
  basis for the companies
• Create a short profile (1-3 page), long profile
  (8-10 pages) or specific components of a pitch
  book

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KPIs Analyst
KPIs

• Analyst
• Feedback from onshore banker / analyst
• Throughput in terms of number of profiles
• Utilization
• Managers feedback
• Peer feedback
• Process improvement suggestions

• Managers
• Feedback from onshore banker / analysts
• Quantity of work in terms of number of profiles
• Quality in terms of number of and type of
  revisions
• Attitude flexibility, helping others,
  stretching,
• Competency enhancement
• Managers feedback

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KPI Weighting Analyst
Example only

• Eventual KPIs

Bonus computation
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Competencies Analyst
Personality traits (PT) and Competencies

• Managers
• PT
• Number oriented
• Detail oriented
• Curiosity
• Drive commitment
• Hard working
• Competencies
• Ability to work on comparables and valuation
• Ability to communicate well with the onshore
  analyst
• Plan work and time well
• Be flexible and work to client schedules
• Be a good team player

• Analyst
• PT
• Number oriented
• Systematic
• High intellect
• Competencies
• Oral and written communication skills
• Analytical skills
• Be a good team player

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Training Development
Vertical heads
Operations Mngr
Managers
Team Lead
Trainees/ Entrants to New domain
New hire Orientation
Leadership Team
Extended Leadership team
Managers

• (Cross) Cultural Training- mandatory for all
  levels
• Level One for the first 3 groups and
• Level Two for the rest- based on specific need

First time leaders
Agents
New Joinees
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SECTION 4

• Challenges

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Challenges to success in India

• Global/local interface
• Governance
• Management via SLAs
• Effective delegation
• Managing matrices
• Local Labor Market
• Competition for key skills
• Indian campus recruitment methodology (Day zero
  etc.)
• Cost inflation the y-o-y increases can shock
  any overseas client! (despite the denominator)
• Language skills
• Avoiding over recruitment
• Attrition

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Challenges to success in India (cont.)

• Culture
• Anglo Saxon Individualism vs Indian collectivism
• Meritocracy vs Hierarchy
• Individual accountability vs group loyalty
• Explicit communication conflict and disagreement
  are acceptable
• Different concepts of time
• Documentation approval mechanisms (contract
  based rather than relationship based)
• Politico/Economic
• Infrastructure (although lots happening)
• Legal system (slow)
• Data Security (are concerns valid?)
• Lack of awareness of India Inc.

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A sustainable strategy

• Market growth requires innovative resourcing
  strategy
• Parallel ramp-ups by new players can spike
  attrition
• Yes, to some extent it is inevitable but no
  poach clauses are not the solution
• Need concerted effort to INCREASE the employable
  pool (as differentiated from the available
  pool). next slide illustration
• This is possible by using advanced Assessment
  Testing tools and
• building robust Internal Training Engines
• Industry-initiatives to bring up Graduate pool to
  required employable standards
• Catch em Young- introducing domain or vocation
  courses into mainstream education curriculum
  (this has already been done by technology
  players, and it is time for the Knowledge players
  to do the same)

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An Illustration of Expanding the pool
Trainable Pool
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An Illustration of Expanding the pool and Keeping
costs low
Recruitment Wave
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SECTION 5

• Conclusions

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Conclusions

• UBS is committed to India and sees huge
  opportunities
• UBS challenges are Indias challenges
• NASSCOM has key role particularly in relation to
  standards and training
• Questions