Progressing the ECB Core Values Presentation RH Tribune 29 May 2008

Comparison with the Belgian Banking Industry Agenda Why? Methodology Specific approach Result Comparison with the Belgian Banking Industry 13/01/2019

Why? Internal Survey 2004

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. 13/01/2019

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. 13/01/2019

Methodology

Moral principles guiding corporate decision-making and behaviour 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 13/01/2019

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. 13/01/2019

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 13/01/2019

What is valuedriven management? 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 an organisational level On a divisional level At an individual Strategic planning Organisational systems & processes HRM Remuneration & recognition in function of values Raising efficiency and effectiveness Group dynamics Performance management Facilitate teamwork (Self) development Problem solving and decision making People management & leadership skills Phase IV: Constant feedback Review Evaluation Actions What is valuedriven management? 13/01/2019

Values <> Competencies Experience Skills Knowledge Personal characteristics Intelligence Personality Motivation COMPETENCIES Behaviour 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. 13/01/2019

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 13/01/2019

Specific approach towards core values

The integration model ECB Core values ECB Competency Framework 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) 13/01/2019

Desk research on values Effectiveness Efficiency Integrity Transparancy Competence Professionalism Open-minded attitude European-minded attitude Leadership from management Openess Mutual respect Team spirit Trust Mission Statement ECB in motion Loyalty Honesty Cooperative attitude Non-discrimination Equal treatment Diligence Responsibility Discretion Accessibility Correctness Courtesy Independance Impartiality Code of conduct, conditions of employment, staff rules, ethics advice 13/01/2019

Defining and communicating ECB Core Values Development of ECB core values against the background of current ECB documents and communication 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 Communication on ECB Core Values Final draft of ECB Core Values with behavioural indicators 13/01/2019

Result

Team spirit : We succeed trough collective spirit and action 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 13/01/2019

Aligning values with practices and beliefs What does ECB want to achieve by introducing values? Identifying Sharing Achieving the misson Living the values Values Definitions Behaviour indicators Communication Value charter Mission statement Alignment with daily practices External world Cohesion Change management Image/marketing 13/01/2019

Comparison with the Belgian FSI

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 13/01/2019

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? 13/01/2019

Values within the Belgian Financial Services Industry It is easier to SAY what we believe than to BE what we believe 13/01/2019