Progressing the ECB Core Values

1. Progressing theECB Core Values Presentation RH Tribune29 May 2008

2. Agenda • Why? • Methodology • Specific approach • Result • Comparison with the Belgian Banking Industry

3. Why? Internal Survey 2004

4. Managing people (experts) from different cultures • to transcend such a “commonsense” approach by building frameworks which provide a means of analysing and thinking about the differences and similarities among different cultures. • Therefore, the most crucial task of transnational managers is to encourage a shared mission and personal commitment to integrate the organisation at the fundamental level of individual members.

5. Values as the corporate glue • A clear mission and values are crucial in an increasingly complex organisation where different cultural influences are daily coming into contact, interacting and melding into hybrid forms of managing through principles, processes, policies and practices. These mission and the values could be referred to as the corporate glue.

6. Methodology

7. What are Values? • Moral principles guiding corporate decision-making and behaviour • What the organisation stands for fundamentally The essential and timeless principles which guide ECB’s decisions and actions towards achieving its mission

8. What is value driven management? • Integrating the organisational values in the culture of the organisation. It is an active approach where the organisational decision making process and management are in line with the core values of ECB and become part of the daily practice. • Therefore, a valuedriven perspective on management is necessary. It implies that all plans, decisions, actions, … are driven by a consistent focus on these values.

9. Value Driven Management • Key success factors • Effective communication about the values • A consistent opinion about the values • Top-down: live the values • Are they in line with daily beliefs? • Policies, actions, decisions, rewards,… need to be guided by a focus on values • Translate values in value driven behaviour

10. Phase I: Clarification of the mission and the values • Stakeholders • Topmanagement • Employees • Customers • … Phase II: Communication • On an organisational level (meetings, special forums, etc…) • Use of communication material (posters, brochures, cards, etc…) • Formal communication mechanisms (news letters, etc…) • Informal communication channels (memo’s, telephone, e-mail, informal meetings, etc…) Phase III: Bringing the values in line with the daily practice On a divisional level On an organisational level At an individual level • Strategic planning • Organisational systems & processes • HRM • Remuneration & recognition • … • in function of values • Raising efficiency and effectiveness • Group dynamics • Performance management • Facilitate teamwork • … • in function of values • (Self) development • Problem solving and decision making • People management & leadership skills • … • in function of values Phase IV: Constant feedback • Review • Evaluation • Actions What is valuedriven management?

11. COMPETENCIES Behaviour Values <> Competencies Experience Skills Knowledge Personal characteristics Intelligence Personality Motivation A competency (like leadership or strategic thinking) is a synergetic set of skills, attitudes and knowledge that manifests itself in observable behaviour and has a predictive value towards the effective realisation of a specific performance.

12. Integrated management of HR processes Recruitment & selection Training & Development Core Values Competence Framework Value charter Competency profiles Appraisal & Performance management Career planning Succession Planning Reward policy

13. Specific approach towards core values

14. The integration model Mission Statement Additional values EiM ECB Core values Code of Conduct, Conditions of Employment, Staff Rules, Ethics Advice ECB Competency Framework 11 core competencies 3 clusters 5 leadership competencies Profile for ECB managers (EiM)

15. Desk research on values

16. Desk research available information and choice of methodological approach towards values and competency management Brainstorm with Design Group Values on core values and competency framework Reporting to HR management Sounding Board on core values and competency framework 4 workshops with members of staff (= focus groups) to define behavioural indicators for ECB Core Values Final draft of ECB Core Values with behavioural indicators Communication on ECB Core Values Defining and communicating ECB Core Values Development of ECB core values against the background of current ECB documents and communication

17. Result

18. The ECB Values • Team spirit : We succeed trough collective spirit and action • Performance : We debate, commit, deliver • Excellence : We are at the leading edge • Integrity : We behave reliable, fair and honest • Transparancy : We share • European MINDEDNESS : We benefit from the diversity of our people

19. Aligning values with practices and beliefs What does ECB want to achieve by introducing values?

20. Comparison with the Belgian FSI

21. The Belgian Financial Services Industry • At least binational – more and more international • Invested a lot in HR the last years but still “a long way to go” compared with e.g. Pharma – FMCG

22. Values within the Belgian Financial Services Industry • Some questions need to be answered : • Is there a recognized need for change ? • Do values exist ? Are they communicated? • Are they really translated? • Does the top management “walk the talk” – living the values? • Are they in line with daily beliefs? • Is the fundamental prerequisite : a very good HRM already in place?

23. Values within the Belgian Financial Services Industry It is easier to SAY what we believe than to BE what we believe