Dr.Kilian  Wawoe    

Improving  Performance  

Introduc*on  Kilian  Wawoe  

§  Psychologist  §  ABN-­‐AMRO  Bank  HR  trainee  §  Head  of  Human  Resources  Europe  §  PhD  on  reward  /  performance  mgt  Banks  §  Professor  at  VU  University  /  Webster  University  §  HR  professional  for  banks  in  emerging  markets  

2013    

1813    

Performance  management  

§  Strategy  §  Banks  goal  

§  Objec*ves  §  Reward  

Organisation

Individual

Bonus  Scheme  

Target Actual Bonus

30 Mortgages

35 Mortgages

$ 1.000,-

The  risk  of  planning  

Lesson  1:  Managers  prefer  too  simple  targets    

   

Performance  Management  

Lesson  2:  people  overes:mate  their  own  performance  

Performance  Management  

 Lesson  3:    

Armstrong’s  Law:  12  months  is  oUen  too  quick  

Performance  Management  

Lesson  4:  Gaming:    too  much  focus  on  targets  

Performance  Management  

Lesson  5:  fraud:    a  combina:on  of  high  targets  and  high  bonuses  

Performance  Management  

 Lesson  6:  The  Beverly  Hills  syndrome:          Comparing  yourself  with  peers  

Performance  Management  

Lessons  learned  

1:  Managers  prefer  too  simple  targets  2:  People  overes*mate  their  own  performance  3:  Armstrong’s  Law:  12  months  is  oUen  too  quick  4:  Gaming:    too  much  focus  on  targets  5:  Fraud:    a  combina*on  of  high  targets  and  high  bonuses  6:  The  Beverly  Hills  syndrome:  Comparing  yourself  with  peers  

2013    

1813    

   

Dr.Kilian  Wawoe    

Healthy  Banking:  Improving  Performance  

Healthy Banking

§  10  years  of  research  §  What  makes  a  bank  healthy  §  Knowledge,  skills,  compliance,  Engagement  §  All  in  one  survey  §  http://www.hrmlink.nl/dev/qm.only2/index.php?l=8&u=eeg0002&p=4912

Research in the CIS countries

§  12.000  bankers  were  approached  in  CIS  countries  §  Around  5.000  par*cipated  between    11/2012  and  3  /  2013  §  Compared  to  the  Global  Financial  Services  Norm  

CIS  Bankers  

0   10   20   30   40   50   60   70   80   90   100  

Performance  Mgt  

Salary  

Innova*on  

knowledge  

Stay  Inten*on  

Engagement  

CIS  Bankers  vs  Global  Banking  Norm  

-­‐23  

-­‐21  

-­‐19  

11  

12  

15  

Stay  Inten:on  

Performance  Management  

knowledge  

Salary  

Engagement  

Innova:on    

%  posi've  answers  against  benchmark  

Conclusion

§  Many  issues  is  banks  are  the  same  §  Many  are  Human  Resources  related  §  Most  employees  are  mo*vated  §  They  need  to  be  managed  §  They  need  to  be  trained  

Not the will, but the skill