1. 2010 Annual Employee Survey Results
Client Relationship Centre Toronto, Scaramuzzo, Vince
Survey conducted April 2010

2. Contents Survey Objectives and Process Overview Participation
Survey Results
Enterprise Engagement Index (EEI)
EEI Component Scores
Issue Prioritization
Strengthening the BMO Culture Index
Performance Management
Diversity Index
Banking Group Specific Items
Review and Next Steps

3. Purpose of today’s meeting
Survey Objectives & Process Overview
AES Objectives
Assess the current level of employee engagement at all levels of the bank.
Track trends in engagement compared to results of previous years.
Identify which organizational issues from an employee perspective, need management attention.
Develop detailed action plans to improve the workplace going forward.
Employee Engagement
Research shows that engaged employees are more likely to stay with BMO, drive performance output, be an advocate of its products and services and contribute to bottom-line business success.
Employees who are informed of AES results and see evidence of change have an even higher level of engagement.
Process Overview
The first step of the process and the purpose of today’s meeting is to share results with employees.
Managers will then work with employees to identify issues needing attention and develop action plans to address the issues.
Action plans will be implemented.
Action plans will be monitored and adjusted as necessary.
Purpose of today’s meeting

4. Participation Note to Leader:
Participation is the percentage of people who responded to the survey (number of participants/work group size).
Excellent = 75% or higher, very good = 70% - 75%, good participation = 60% - 70%, fair = 50%-60%, low=below 50%
These figures only count AES-eligible employees (those that were active and permanent full-time or permanent part-time as of March 19, 2009)
Note: Response rate for 2010 is based on the total number of AES participants for this group divided by the total number of eligible employees in the group as of March 19, Eligible employees include all active permanent full time and permanent part time employees.

5. Enterprise Engagement Index (EEI) Overview
EEI represents the strength of the overall “connection” between employees and the organization and includes commitment, involvement, relationships and initiative.
The stronger an employee's relationship is with these six components, the more engaged the employee will be with the enterprise as a whole.
Each Enterprise Engagement component score is derived by calculating the percentage of employees who gave high agreement ratings (7, 8, or 9) to all three questions comprising that component.
EEI is calculated as the average of the 6 engagement component scores.
EEI and Components
Company
Manager
Work Group
Enterprise
Engagement
Index
(EEI)
Job
Career/Profession
Note to Leader:
Make sure you understand how EEI is calculated
Customer

6. EEI and EEI Component Scores – Results for Your Group
EEI shows the strength of the overall relationship between employees and the organization taking into account six primary components of engagement (below).
Enterprise Engagement Index (EEI) Components
Banking Group 2010
65%
Enterprise Engagement Index (EEI)
77%
77%
76%
Note to Leader:
Is your EEI score trending up or down?
Are your component scores trending up or down?
Make sure you use caution when comparing 2010 EEI or customer component scores with those of 2008 because the customer component changed in 2009.
79%
75%
Note: Due to changes in customer component items in 2009, trend data is not directly comparable.

7. EEI Results in Detail
Note: Due to changes in customer component items in 2009, 2008 trend data is not directly comparable.

8. EEI Components by Subgroup
The following chart presents the EEI overall and component results for your group and each of your subgroups.
Note: The subgroup with the highest score for each component is shaded in green. The subgroup with the lowest score for each component is shaded in red.
Due to changes in customer component items in 2009, trend data is not directly comparable.

9. Issue Prioritization Overview
The Issue Prioritization results help you identify areas where your group is performing well and also where there are improvement needs, based on two factors: % high agreement rating and correlation with EEI.
Strengths:
Primary Strengths represent survey items that have strong performance ratings (at or above 75%) and a relatively strong relationship with the Enterprise Engagement Index (EEI®).
Secondary Strengths are items that also have strong performance ratings (above banking group average), but exhibit a relatively lower (weaker) relationship to the EEI®.
Opportunities for Improvement:
Primary Improvement Opportunities represent items that have lower performance ratings (below 75%), yet have a relatively strong (higher) relationship with the EEI®. Improvement efforts should be focused here first.
Secondary Issues represent items that have lower performance ratings as well, but these items do not currently exhibit a strong relationship with the EEI®.
75% Favorable
Primary
Improve. Opp.
Primary
Strengths
Higher
Correlation w/ EEI®
Survey Item
0.52
bbbbb
Secondary
Improve.
Opp.
Secondary
Strengths
Lower
Note to Leader:
Your action plans should focus on primary improvement opportunities and primary strengths.
Leaders will receive Issue Prioritization or Most Favourable/Most Unfavourable depending on the number of respondents in their group. Due to statistical reasons, Issue Prioritization can only be calculated for groups with 35 or more respondents.
Issue Prioritization is determined by running correlations between each survey question and EEI. The items with the highest correlations and highest agreement scores are primary strengths. Items with the highest correlations, but lowest agreement scores are primary improvement opportunities.
Most Favourable/Least Favourable are determined by showing the items with the highest high agreement scores (most favourable) and highest low agreement scores (least favourable).
Lower
Higher
(% High Agreement)
Note: Issue Prioritization can only be reliably calculated for groups with 35 or more respondents due to statistical reasons.

10. Issue Prioritization – Primary Strengths
Primary Strengths are survey items that have high agreement ratings above 75% and a relatively strong relationship with the EEI.
Note to Leader:
Issue Prioritization is determined by running correlations between each survey question and EEI. The items with the highest correlations and highest agreement scores are primary strengths. Items with the highest correlations, but lowest agreement scores are primary improvement opportunities.
Note: Items are ranked by % High Agreement and results shown are limited to one page.
Issue Prioritization results are only provided for groups with 35 or more respondents.

11. Issue Prioritization – Primary Improvement Opportunities
Primary Improvement Opportunities are items that have high agreement ratings below 75%, yet have a relatively strong relationship with the EEI.
Note to Leader:
Issue Prioritization is determined by running correlations between each survey question and EEI. The items with the highest correlations and highest agreement scores are primary strengths. Items with the highest correlations, but lowest agreement scores are primary improvement opportunities.
Note: Items are ranked by lowest % High Agreement.
Issue Prioritization results are only provided for groups with 35 or more respondents.

12. Influence Model: Elements of Sustainable Human Change
Strengthening the BMO Culture Index
Understanding and Conviction: I know what is expected of me and it is meaningful to me
Positive Role Modeling: I see my leaders and peers behaving in the new way
Formal Mechanisms: The structure, processes and systems reinforce the desired behaviours
Right Capabilities: I have the skills and competencies to behave in the new way
Influence Model: Elements of Sustainable Human Change
The “Strengthening the BMO Culture” Index is included in the AES to evaluate our effectiveness in addressing the mindsets and behaviours that determine our corporate culture.
Our corporate culture is defined by our vision to be the bank that defines great customer experience.
In order to successfully achieve our vision, we need to address and align the four components of the Influence Model (see right).
Each component measures one element of the Influence Model and is the average of the 3 or 4 item scores. The Index measures all elements of the Influence Model and is the average of the 4 component scores.
Strengthening the BMO Culture Index and Component Scores
Note to Leader:
Make sure you understand how the Index is calculated

13. Strengthening the BMO Culture Item Results

14. Performance Management Index Scores
Across the company, we have set an ambitious goal for ourselves as market leaders, with higher standards for individual and team performance. The Performance Management Index (PMI) measures the degree to which employees are clear about their objectives, know what success looks like, and understand how it will be assessed and rewarded.
The PMI is the average of the high agreement ratings for the five questions shown on the next page.
Performance Management Index Scores
Note to Leader:
Make sure you understand how the Index is calculated

15. Performance Management Index and Item Results
17. I had an annual assessment of my performance (PPA/360) with my manager. (excludes those with tenure=less than 1 year)
Note: The term 360 applies only to BMO Capital Markets.

16. Diversity Index
Employee perceptions of diversity are important to BMO Financial Group for creating an equitable and supportive workplace.
The Diversity Index (DI), which is strongly related to the EEI, is comprised of 4 items. The Diversity Index score is the average favourable rating across the four DI items.
Diversity-related items are intended to give an understanding of employment systems/management practices that have an impact on creating an equitable, supportive workplace. It is for this reason that the diversity-related items, which can be found on the following pages, are grouped under the following management practice headings: Work Environment, Rewards & Recognition, Learning & Development, Performance Management, and Promotion & Hiring.
Note to Leader:
The Diversity Index (DI) is an indication of employee perceptions of the workplace as equitable, inclusive and supportive and is derived from the average favourable rating of 4 questions.
The higher the DI, the more positive employees perceive their workplace as being inclusive and supportive.

17. Diversity Related Items
Note to Leader:
Diversity related items are questions in the AES that are grouped together to understand employee perceptions of “employment systems/management practices” that have an impact on creating an equitable, supportive workplace. They are grouped into 5 management practices (Work Environment, Rewards & Recognition, Learning & Development, Performance Management, and Promotion & Hiring).

18. Diversity Related Items (cont’d)

19. Banking Group Specific Items
% High Agreement
2010
2009
2008

20. Review and Next Steps Next Steps
Leader works with employees (through the creation of an AES team) to analyze results, identify priority issues and develop action plans to improve the workplace.
Leader to review action plans with his/her manager.
Implement action plans and communicate plans to employees.
Track and communicate progress against action plans with employees.
Resources for Leaders
AES Intranet site (
Quick Reference Card for Leaders
Leader’s Guide to 2010 AES
Steps to Action Planning
Action Planning Worksheet Template
Next Step: Analyze Results & Develop Action Plans
Note to Leader:
Be aware that employees may feel uncomfortable sharing information in this forum. These discussions may be more appropriately aligned with further discussions.
For more information on action planning, please see the AES Intranet site at

21. Appendices Item Results with Trending Item Results for Subgroups
Action Planning Worksheet

22. Item Results
The following slides show detailed item results for your work group and Banking Group.
Results for your group in 2010 are presented with % low, moderate and high agreement. Low agreement is the percentage of respondents who rated the item 1, 2 or 3. Moderate agreement is the percentage responding 4, 5 or 6 and High agreement is the percentage who responded 7, 8 or 9.
EEI items are shaded in yellow.
* indicates Diversity Index Item
^ indicates Diversity Related Item
+ indicates Strengthening the BMO Culture item
~ indicates item wording has been revised for 2010
Note to Leader:
Review Item Results.
Identify questions where your group had high or low scores. Use these to generate discussion.

23. Item Results 23

24. Item Results
Note: Results for Item #17 exclude respondents who have been with BMO for less than 1 year. 24

25. Item Results 25

26. Item Results 26

27. Item Results 27

28. Item Results 28