1. Developing Human Resources Presentation to UST MGTO 231 - HRM Students 5th March 2007 5th March 2007

2. my background… Education - University College Cardiff, University Westminster, UK Aspen Corporate Communications Ernst & Young Morgan Stanley HSBC Graduate and MBA Recruitment & Development, London Regional HR Consultant, Hong Kong VP Learning and Development, Singapore Head of HR Development Team Asia Pacific, Hong Kong

3. fast facts One of the largest banking and financial services organisations in the world About 284,000 staff in around 9,500 offices Present in 76 countries and territories More than 125 million customers, with a total e-customer base of over 25 million 31 December 2005

4. fast facts Total assets: US$1,502 billion Profit before tax 2005: US$20,966 million Listings on London, Hong Kong, Paris, New York and Bermuda stock exchanges, with shares in HSBC Holdings plc held by around 200,000 shareholders in some 100 countries and territories 31 December 2005

5. international network North America Europe Middle East Asia Pacific Latin America Africa number of offices - 06 March 2006

6. who are our customers? Personal Financial Services (including Consumer Finance)120 million Commercial Banking2.5 million Corporate, Investment Banking and Markets3,800 Private Banking90,000 31 December 2005

7. how are we structured? HSBC Customer / Support Groups Personal Financial Services (Retail Banking) Commercial Banking (Small to Medium sized business) Corporate, Investment Banking and Markets (Large Corporates) Private Banking (Wealthy customers) Operations and Support (Includes HR) Product Groups

8. our culture : ‘THE BEST PLACE TO WORK’ Best Place to Work

9. role of HR at HSBC Centres Expertise CMB L&D HRD HR Transactions HR Relationship Managers Line Managers/ Clients Employees Projects Headquarter (London Corp)

10. Employees Key Asset Strategic HR Planning Training & Development Recruitment & Selection Compensation & Benefits Performance Management Career Management Succession Planning Prof Geoff Gantz Ivey Business School

11. Tests Capabilit y Based Intervie ws Custom er Meeting Custom er Meeting Written Memo Boss Presentati on In tray Group Exercis e OPQ Driving Business Vision and Brand Business Judgement Leading Performance Customer Drive Working with Others Drive, Commitment & Personal Developmen t graduate recruitment assessment matrix

12. 2. Commercial Judgement 4. Customer Drive 5. Working with Others 6. Drive & Personal Development 3. Leading Performance Judgement & decision making Entrepreneurial & commercial thinking Inspiring trust Driving execution & performance Inspiring & developing others Championing change Building customer loyalty & satisfaction Winning New Customers Building relationships & listening to others Valuing diversity Influencing others Managing collectively Sharing knowledge & fostering open communication Continual Learning Driving Self to Achieve Collective Goals Adaptability 1. Driving Business Vision & Brand Future orientation Strategic thinking Differentiating HSBC’s business & brand Change & innovative thinking

13. Driving Business Vision & Brand A. Future orientation B. Strategic thinking C. Differentiating HSBC’s business & brand D. Change & innovative thinking A. Future orientation Articulates a sensible view of the future of own business area given changes in the local market Articulates a broad range of changes in the local socio-economic, technological and regulatory environment and accurately evaluates their potential impact on own business area/team CAPABILITY CLUSTER CAPABILITY CAPABILITY DEFINITION BEHAVIOURAL EXAMPLES CLUSTER DEFINITION Is innovative and forward looking. Establishes team and personal objectives that are aligned with HSBC’s business goals. Supports the differentiation of HSBC and its brand from competitors cluster and capability breakdown

14. Employees Key Asset Strategic HR Planning Training & Development Recruitment & Selection Compensation & Benefits Performance Management Career Management Succession Planning Prof Geoff Gantz Ivey Business School

15. Set Goals Appraise Performance Mid year Review performance management cycle January/February July December On-going review

16. balanced scorecard Financial Learning & Growth Internal Business Systems and Process Customer

17. Employees Key Asset Strategic HR Planning Training & Development Recruitment & Selection Compensation & Benefits Performance Management Career Management Succession Planning Prof Geoff Gantz Ivey Business School

18. SUCCESSION PLAN

19. Employees Key Asset Strategic HR Planning Training & Development Recruitment & Selection Compensation & Benefits Performance Management Talent Management Succession Planning Prof Geoff Gantz Ivey Business School

20. ON-GOING PROCESS talent management model IDENTIFY&ASSESS MANAGE&DEVELP RIGHT PERSON RIGHT PLACE RIGHTTIME

21. talent pools Domestic Business Talent Pool Group ` Talent Pool GGM Regionally Mobile High Potential Pool (Future Leaders, Next Generation, Graduates) Regionally Mobile Internationally Mobile IM Will Travel Relocate In Region Take An International Assignment