business banking kpis fy15 - royal commission

Business Banking KPIsFY15

June 2014

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Contents

1. FY15 KPI framework

i. High level framework

ii. Detailed framework

2. Risk Objective and KPIs

iii. Measures

iv. Behavioural expectations for robust risk management and strong governance

3. Productivity KPIs

4. People Capabilities

Appendices

Appendix 1 - Connecting the People Agenda

Appendix 2 – Performance Review Process

Appendix 3 – Annual Remuneration Review

Appendix 4 – Setting Direction for FY15

Appendix 5 - Roles and Responsibilities for each Role

Appendix 6 – Clarifying the Approach and Application of the Risk Objective

Appendix 7 - Guidelines for Application of the Risk Moderator

Appendix 8 - Customer Satisfaction KPI

Appendix 9 - Introducing the People Capabilities

Appendix 10 - Development Planning for FY15

Appendix 11 – Smart Guidelines for Recording Broker Deals

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1. FY15 KPI Framework – State ModelHigh level framework

State Model State PBTBusiness Lending Growth

Total Revenue State Support

Non-Core Lending Revenue

We’re Listening

Customer Sat

BFSM Customer Sat

Minimum Productivity

Habits

Kennexa P&C score

SM 25% 10% 10% 10% 15% 10% 20%

RSM 15% 20% 10% 15% 10% 10% 20%

SRM (MPP) 15% 25% 10% 20% 10% 10% 10%

RM (MPP) 15% 15% 20% 30% 10% 10%

ARM (MPP) 25% 25% 30% 10% 10%

RM (SPP) 15% 20% 15% 30% 10% 10%

BPM 20% 10% 10% 10% 20% 10% 10% 10%

Team Assistant 10% 60% 10% 10% 10%

Operation Assistant 10% 60% 10% 10% 10%

See section 2 for risk KPIs

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1. FY15 KPI Framework – State ModelDetailed framework

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Bankwest Risk Objective Bankwest wants to be regarded as a division of CBA Group that manages risk well. Delivery of the strategic priorities will be achieved by a robust risk strategy and strong governance, supported by all leaders and colleagues through adherence to risk appetite, meeting risk accountabilities, following process, escalating issues, promoting risk culture and completing training.

2. Risk Objective and KPIsMeasures

FY15 RISK KPI ROLE DESCRIPTOR DNM MEETSMEETS & SOMETIMES EXCEEDS

EXCEEDS

Robust risk management and strong governance

All Assessed against requirements on slide 6 relevant to role

CQP Portfolio teams & RSMs

Portfolio CQP score must be 82.5% or better for ten or more months of the year. <82.5% 82.5% - 90% 90%-95% 95%-100%

CQR Portfolio teams

Portfolio must record:1. an overall CQR rating “2.8” for ten or more months of

the year:a) a Covenant Monitoring rating of

“Satisfactory“ or better for eight or more months of the year;

b) an Expired Facility rating of “Satisfactory“ or better for eight or more months of the year.

<2.8

2.8 – 3.2Plus satisfactory

covenant monitoring &

satisfactory for expired facility

3.2 – 3.6Plus satisfactory



3.6 or abovePlus satisfactory



CQR RSMs RSM’s Portfolio must record an overall CQR rating “2.8” or better for ten or more months of the year. <2.8 2.8 – 3.2 3.2 – 3.6 3.6 or above

Expired Facilities RSMs/SMs Expired facilities to remain within agreed ‘green’ tolerance levels1 for nine or more months of the year: <9 months 9 months 10 months 11 months

Tolerance < 30 Days >30 days

Green <2.0% <0.5%

Amber 2.0% - 5.0% 0.5% - 1.0%

Red >5.0% >1.0% 1. Tolerance levels subject to review

Measures captured by:OLS Breaches: OLSI Database (BB Operations, Risk and Strategy - Operational Risk Team)CQP: CQP Database (BB Operations, Risk and Strategy - Data Quality & Compliance Team)CQR: CQR Database (Risk Management, Business Credit – CQR Team)Expired Facilities: BB KRI’s (BB Operations, Risk and Strategy – Data Quality & Compliance Team)

Note: OLS Breaches Level 3 or 4 are ineligible for STI

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2. Risk Objective and KPIsKPIs for robust risk management and strong governance

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Assessed via the framework on slide 7

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2. Risk Objective and KPIsKPIs for robust risk management and strong governance

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Does Not Meet Meets Meets & Sometimes Exceeds Exceeds

RM, ARM, BDM,

BDA

Does not consistently follow policy, process or procedure relevant to role

and business unit/division

Does not carry out the right checks before processing high risk

activities/transactions

Consistently follows policy, process or

procedure relevant to role and business

unit/division e.g. follows standard operating

procedures (SOPs)

Carries out the right checks before

processing high risk activities/transactions

All of the attributes of “Meets” and :

Positively adopts new policy and procedures

quickly and can explain the risk of not

following process

All of the attributes of “Meets” and “Meets & Sometimes

Exceeds” and :

Coaches peers to comply with policy and

procedure

Educates peers on new policy changes and

procedures relating to function and role

SRM Does not follow and apply policy and procedures and does not

appropriately perform or oversee key controls

Does not keep colleagues aware of upcoming and new policy changes and

procedures that relate to their function and role

Oversees and follows policy, process, and

procedure compliance within team

Educates colleagues on upcoming and new

policy changes and procedures that relate to

their function and role


Identifies operational processes which are not

aligned to policy and procedure, suggesting

changes to processes where required


Exceeds” and :

Recommended changes to operational

processes are implemented, where processes

are not aligned policy and procedure

RSM Does not confirm that operational processes are aligned to Group policy

and procedure, or fails to make changes to processes where required

Does not follow Group policy change guidelines when changing policies

and frameworks

Does not retain documentary testing evidence for subsequent review by

Line 2 Risk and Line 3 Audit to support confirmation that business

complies with relevant policy and procedures

Complies with Group policy change

guidelines when changing policies and

frameworks

Confirms that operational processes are

aligned to Group policy and procedure,

making changes to processes where required

Retains documentary testing evidence for

subsequent review of Line 2 Risk and Line 3

Audit, to support confirmation that business

complies with relevant policy and procedures


Confirms that Line 1 Control Assurance

Program testing captures key policy

compliance requirements


Exceeds” and:

Confirms that Control Self Assessments attest

that the division complies with all applicable

policies, or has actions in place to become

compliant within a reasonable timeframe

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3. Productivity KPIs

Measure Level DNM Meets MSE Exceeds

Contribute to a sustainable continuous improvement culture

Colleague

Less than one CI implemented in FY15

With the support of your leader, implement one CI in FY15 with quantifiable business benefits.

With the support of your leader, implement one CI in FY15. Able to articulate the business/customer benefit of the CI in terms of Quality, Time and/or Costand provide evidence of CI sustainability.

With leader support, implement 2+ CIs and provide evidence of how they have contributed to a lift in team performance or achieved a cost benefit to Bankwest.

Contribute to Creating a Productivity Centric Business Banking

Inconsistent engagement in embedding Productivity as a way of life into Business Banking through the use of the Four Productivity Habits.

Visibly supports productivity initiatives. Active participant in evolving the team’s Pulse Check, visual management boards, SOPs and other lean management tools. Achieve and maintain Bronze accreditation.

Part of a team regarded as role modelling Productivity in Business Banking. Actively seeks ways to improve and evolve the use of the Four Productivity Habits within the team. Silver Accreditation achieved.

Team recognised as "best practice” - key productivity drivers understood and documented, business driver metrics established and monitored, action plans in place to improve performance. Silver Accreditation achieved.

Lead a Culture of Continuous Improvement

Leader

Limited evidence of continuous improvement. The team is not

empowered to act and the environment constrains innovative

thinking and time to seek and implement CIs.

Builds a culture of CI - seeks to eliminate waste across team, empowers

colleagues to develop productivity knowledge to identify and implement

CIs and record known benefits.

As “Meets” plus considers downstream and upstream impacts of CIs and ensures risks are mitigated when implementing

changes. Provides evidence of how implemented CIs have contributed to a lift

in team performance or achieved a cost benefit to Bank.

As “MSE” plus empowers the team to act, to challenge the status quo and to

create a safe environment for innovative thinking.

Lead Productivity Within Team

Inconsistent support of productivity initiatives within the business. Four Productivity Habits

are inconsistently used to drive performance and eliminate waste.

Visibly supports productivity initiatives. Inspects team to ensure adhering to

productivity standards regularly (e.g. use of VMBs, SOPs, Pulse Checks and other lean management tools.) Achieve and

maintain Bronze accreditation.

As “Meets” plus team regarded as role modelling Lean management Practices.

Silver accreditation achieved.

As “MSE” plus team recognised as "best practice" across each of the five

productivity categories (Customer Focus, Productivity Capability, Process Management, Behaviours & Mindset and Productivity Leadership). Silver

accreditation achieved.

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PEOPLE CAPABILITY WHAT DOES THIS MEAN? RSM – Minimum Expectations

Customer Focus

Creating value in each customer interaction and focusing on the total customer experience

• Understands the customer • Creates value • Resolves issues • Lives sales & service

• Leverages voice of customers and other stakeholders understanding customer information to anticipate their needs and future priorities.

• Understands the key end-to-end processes that create value for the customer.• Stays abreast of customer service best practices.• Develops a partnering relationship with customers and stakeholders and adopts a long-term perspective.• Creates win/win solutions with customers and other stakeholders.• Monitors customer satisfaction to ensure high levels are being achieved.• Encourages team to consider impact on customers when making decisions.• Recognises potential service issues and takes corrective action.• Identifies systemic issues to remove root causes.• Resolves customer issues escalated by team in a timely manner.• Embeds sales and service principles in their business

Team and Culture

Inspiring others to demonstrate our values and working together to create a passionate, high performing culture

• Respects others and the Group

• Works with others • Manages performance and

development • Builds empowered teams

• Development plan set for all portfolio colleagues and loaded into system• Demonstrates behaviours that role model Bankwest’s values; encourages others to do the same.• Takes action in the best interest of the organisation.• Builds strategic relationships with people in other teams to achieve business goals.• Uses language and behaviour that consistently reflects the diversity of our employees.• Proactively advocates the value of a diverse team, taking action to build an inclusive workplace.• Identifies capabilities required for success in each role and evaluates individuals against criteria.• Coaches and holds individuals and team accountable for high performance; takes action to manage under performance

fortnight coaching with SRM to discuss performance against KPIs• Provides challenging development opportunities.• Challenges beliefs and assumptions that are the root cause of wasteful activities.• Empowers team to make decisions and share responsibility, providing guidance and support.• Reviews team performance and takes action to support goals.• Celebrates individual and team successes.

Continuous Improvement

Continuously improving and innovating what we do to make things simple and easy for our customers and each other

• Fosters a culture of continuous improvement

• Develops and implements solutions

• Leads change • Lives productivity and


• Proactively and constructively challenges the status quo, and encourages others to do the same.• Visibly supports productivity initiatives and recognises the efforts of others.• Guides team to implement simpler ways of working considering downstream and upstream impact.• Ensures improvement initiatives will deliver value before developing solutions.• Measures results and modifies solution as required to ensure positive and sustainable impact.• Leads their team through change by communicating the rationale and proactively addressing concerns.• Includes others in the change process to leverage opinions and ensure commitment.• Understands Bankwest’s Productivity Standards and applies them constantly.• Actively monitors performance and output across the team and reduces variation.• Constantly looks for ways to be more productive.

4. People CapabilitiesMinimum behavioural expectations per role

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PEOPLE CAPABILITY WHAT DOES THIS MEAN? RSM – Minimum Expectations

Effective Communication

Communicating clearly and with impact to ensure understanding, engagement and commitment to action

• Plans and understands communication

• Delivers clear and impactful messages

• Ensures understanding • Influences others • Engagement through

communication

• Conducts stakeholder analysis and plans best fit approach.• Outlines the purpose and key messages, following a logical sequence.• Utilises existing and emerging communication channels.• Exhibits a presence that demonstrates personal impact and commitment.• Applies simple and compelling language and stories to inspire commitment.• Invites input from others and constantly assesses reactions, adjusting messages accordingly.• Comprehends and responds appropriately to input from others.• Determines appropriate influencing strategies to gain genuine agreement.• Adjusts approach to overcome objections.• Steps up to conflicts and sees them as opportunities.• Actively seeks to include views from a wide variety of people in their circle of advisors.• Encourages two-way communication from their stakeholders and team.• Creates an environment where people feel safe and are encouraged to speak up.

Judgement

Making sound decisions based on understanding business, analysing data and applying common sense

• Understands Bankwest• Understands the industry • Reaches measured

decisions • Enhances brand and

reputation • Applies Good Judgement

• Articulates the business value, drivers and accountabilities of business units/divisions within the organisation.• Articulates the organisation's position, products and services when compared with other organisations.• Optimises business results by actively managing operational levers• Monitors industry trends and articulates the potential impact.• Integrates understanding of the industry into decision making.• Analyses data to shape business decisions; separates the important from the unimportant.• Considers broader implications and practicality of decisions.• Actively supports the brand proposition and understands the importance of mitigating the risk of erosion.• Manages reputational risk with internal and external stakeholders, escalating as required.• Makes good decisions based on a combination of analysis, wisdom, experience and judgement.• Understands that good decisions need to be perceived as in the best interest of customers, Bankwest and

employees.

Drive Results

Initiating action and committing to achieving business outcomes by taking accountability for goals

• Sets goals and drives accountability

• Stays focused to execute • Manages risks prudently

• Minimum of 3 joint face to face customer visits per week• Understands personal and team accountabilities and expected results.• Translates the department’s goals and expected results.• Aligns resources and holds others accountable.• Prioritises work, leveraging resources and adjusting as circumstances change.• Proactively removes obstacles.• Measures and tracks progress and outcomes, taking corrective action when required.• Identifies, manages and mitigates risk; escalates where required.• Makes decisions in consideration of Bankwest risk practices.• Observes the business and ensures products, processes and services are within the risk appetite of the business


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? SRM – Minimum Expectations

Customer Focus



• Regular review of portfolios for retention triggers and calling programme off the back

• MFI customer strategy – identify HV customers and set calling programme

• Perfect 10 customer charter embed within their portfolio• Agenda and outcome doc prepared for each prospect interaction• Return all calls and email as soon as possible but by close of business at

the latest• Every customer interaction must include the q “Am I giving you 10/10

service and if not, where can I improve?”

Team and Culture



• Works with others • Manages performance and


• Fortnightly 1:1 with RM and ARM – discuss performance against KPIs• Ongoing coaching with RM and ARM• Development plan set for all portfolio colleagues and loaded into system• Demonstrates behaviours that support Bankwest’s values; encourages

others to do the same.• Puts team goals ahead of own





• Leads change • Lives productivity and


• Builds a culture of CI - seeks to eliminate waste across team, empowers colleagues to develop productivity knowledge to identify and implement CIs and record known benefits.

• Visibly supports productivity initiatives. Inspects team to ensure adhering to productivity standards regularly (e.g. use of VMBs, SOPs, Pulse Checks and other lean management tools.)

• Achieve and maintain Bronze accreditation.


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? SRM – Minimum Expectations






communication

• Identifies stakeholders and determines the most appropriate approach.• Outlines the purpose and key messages, following a logical sequence.• Engages team, customers and other stakeholders through considered use of different communication styles and tools.• Simplifies complex messages to ensure fit for audience• Comprehends and responds appropriately to input from others.• Reinforces key messages and checks for understanding, adjusting style and language as required.• Conveys own perspective in a positive and compelling manner to gain agreement from others.• Determines appropriate influencing strategies to gain genuine agreement.• Adjusts approach to overcome objections.• Proactively seeks the ideas, input and feedback of others.• Creates an environment where people feel safe and are encouraged to speak up.

Judgement


• Understands Bankwest• Understands the industry • Reaches measured decisions • Enhances brand and


• Explains the business value and drivers for own team in relation to the organisation’s strategies.• Articulates and ensures team understands the interrelationships of the Bankwest Group’s functions/divisions on their

responsibilities.• Understands the key business metrics that drive the Bankwest Group’s results.• Monitors industry trends and articulates the potential impact.• Understands how the Bankwest is differentiated from competitors.• Identifies and analyses important data relevant to role and recommends actions.• Considers broader implications of actions.• Understands Bankwest brand proposition and the importance of reputation to the organisation’s success and encourages

team to do the same.• Considers organisation’s reputation and potential risks when taking action or making decisions.• Makes good decisions based on a combination of analysis, wisdom, experience and judgement.• Aware of the importance of the perception others may have when making good decisions.

Drive Results




• Set portfolio strategy – how they are going to achieve BS growth (assets and deposits), revenue target and OBI• Guide RM and ARM on successful Mission Day activities• Maintain live portfolio PAGA• Ensure new business written sustainably and profitably – priced within ROTE model• Block out time in your diary to research prospects and book in appointments• 3 F2F prospects (new to bank relationships) per week, 2 existing customers (identify new business) (or visit customer twice

yearly for C&P portfolios) and 1 advocate• Maintain 12-15 week weighted pipeline• 1 JV w SS per week and 7 JV w RM/ARM per month – including coaching• Identifies, manages and mitigates risk; escalates where required.• Makes decisions in consideration of Bankwest risk practices.• Observes the business and ensures products, processes and services are within the risk appetite of the business.


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? RM – Minimum Expectations

Customer Focus



• Regular review of portfolios for retention triggers and calling programme off the back

• 2 calls per week with existing customers – all “HV” customers contacted every quarter

• CAP completed for all customers to deepen understanding of them and their business – updated every quarter

• Agenda and outcome doc prepared for each customer interaction• Return all calls and email as soon as possible but by close of business at

the latest• Every customer interaction must include the q “Am I giving you 10/10

service and if not, where can I improve?”• Data quality at least 95%

Team and Culture


• Respects others and the Group • Works with others • Manages performance and


• Development plan set• Exhibit BW values in all daily activities




• Develops and implements solutions • Leads change • Lives productivity and Continuous

Improvement

• Explores new ways of doing things.• Contributes and supports team initiatives that drive continuous

improvement.• Identifies opportunities to eliminate waste, improve and or simplify

processes and raises with Leader/Manager as appropriate.• Considers change and new situations as an opportunity for learning and

growth.• Adaptive to new ways of doing things.• Understands the benefits and speaks positively about change.• Understands Bankwest’s Productivity Standards and applies them

constantly.• Where applicable, follows current Standard Operating Procedures.


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? RM – Minimum Expectations



• Plans and understands communication • Delivers clear and impactful messages • Ensures understanding • Influences others • Engagement through communication

• Identifies who needs to be communicated with and determines the most appropriate approach.

• Actively reads and questions communications to ensure understanding of impact on self and others.

• Outlines the purpose and key messages, following a logical sequence.• Engages customers and other stakeholders through appropriate communication

channels.• Checks for understanding and clarifies points, adjusting style and language as

required.• Responds appropriately to input from others.• Conveys own perspective in a positive and compelling manner.• Seeks and listens to the views of others.

Judgement Making sound decisions based on understanding business, analysing data and applying common sense

• Understands Bankwest• Understands the industry • Reaches measured decisions • Enhances brand and reputation • Applies Good Judgement

• Understands the organisation’s strategies and how own role, team and department contribute.

• Understands the interrelationships of the Bankwest Group’s functions/divisions.• Understands how the Bankwest is differentiated from competitors.• Identifies important information and data relevant to role.• Considers broader implications of actions.• Understands Bankwest brand proposition and the importance of reputation to the

organisation’s success.• Considers organisation’s reputation and potential risks when taking action or

making decisions.• Makes good decisions based on a combination of analysis, wisdom, experience and

judgement.

Drive Results Initiating action and committing to achieving business outcomes by taking accountability for goals

• Sets goals and drives accountability • Stays focused to execute • Manages risks prudently

• Ensure new business written sustainably and profitably – priced within ROTE model

• Drive activity with existing customer base for Mission Day activities• 5 F2F visits per week for a MPP and 3 per week for a SPP w existing customers (or

visit customer twice yearly for C&P portfolios) – drive cross sells• 1 portfolio review w SS per quarter• Review product opportunity matrix, non-MFI customers and identify 2 cross sell

opportunities per month


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? ARM – Minimum Expectations

Customer Focus


• Understands the customer

• Creates value • Resolves issues • Lives sales &

service

• Regular review of portfolios for retention triggers and calling programme off the back• 2 calls per week with existing customers – all “HV” customers contacted every quarter • Agenda and outcome doc prepared for each customer interaction• Return all calls and email as soon as possible but by close of business at the latest• Every customer interaction must include the q “Am I giving you 10/10 service and if not, where

can I improve?”• Share best practise• Data quality at least 95%

Team and Culture



• Works with others • Manages

performance and development

• Builds empowered teams

• Development plan set• Exhibit BW values in all daily activities





• Leads change • Lives productivity

and Continuous Improvement

• Explores new ways of doing things.• Contributes and supports team initiatives that drive continuous improvement.• Identifies opportunities to eliminate waste, improve and or simplify processes and raises with

Leader/Manager as appropriate.• Considers change and new situations as an opportunity for learning and growth.• Adaptive to new ways of doing things.• Understands the benefits and speaks positively about changeUnderstands Bankwest’s Productivity

Standards and applies them constantly.• Where applicable, follows current Standard Operating Procedures.


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PEOPLE CAPABILITY WHAT DOES THIS MEAN? ARM – Minimum Expectations






communication

• Identifies who needs to be communicated with and determines the most appropriate approach.

• Actively reads and questions communications to ensure understanding of impact on self and others.

• Outlines the purpose and key messages, following a logical sequence.• Engages customers and other stakeholders through appropriate communication

channels.• Checks for understanding and clarifies points, adjusting style and language as

required.• Responds appropriately to input from others.• Conveys own perspective in a positive and compelling manner.• Seeks and listens to the views of others.

Judgement


• Understands Bankwest• Understands the industry • Reaches measured

decisions • Enhances brand and


• Understands the organisation’s strategies and how own role, team and department contribute.

• Understands the interrelationships of the Bankwest Group’s functions/divisions.• Understands how the Bankwest is differentiated from competitors.• Identifies important information and data relevant to role.• Considers broader implications of actions.• Understands Bankwest brand proposition and the importance of reputation to the

organisation’s success.• Considers organisation’s reputation and potential risks when taking action or making

decisions.• Makes good decisions based on a combination of analysis, wisdom, experience and

judgement.

Drive Results




• Support SRM and RM in Mission day activities• Prepare papers for AR, EF and covenant meetings – identify sales opportunities• Assist SRM and RM in preparation for prospect / customer meetings• 2 JV customer visit with SRM per month• Assist RM to identify cross sell opportunity - Review product opportunity matrix, non

-MFI customers and identify 2 cross sell opportunities per month


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APPENDICES

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The performance cycle provides us with the opportunity to:› recognise our achievements in FY14 (Why)› set the direction and focus for FY15 (What/How)› develop specific capability (How)

As Bankwest people leaders we each play an important role in translating our strategy into action, and creating meaningful clarity for our team members on how they contribute to Bankwest’s success. This goes together with building their capability. Clarity and capability will contribute to having motivated colleagues!

Appendix 1 - Connecting the People Agenda

3. Capable• Tools and systems• Training and Development

2. Clear• Vision and Values• Strategic Priories and Goals

1. Motivated• Performance and Behaviours• Reward

HowOur People CapabilitiesDevelopment Plans

WhatBusiness and Risk Objectives and KPIs

WhyPerformance ReviewsRemuneration Review (eligible colleagues fixed rem and STI)

Success Triangle

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Appendix 2 - Performance Review Process

WHY The annual performance review process is an opportunity to assess a colleague’s performance against their actual objectives (“what” and

“how”) and allow a leader to provide valuable coaching and feedback The results from the end of year performance review feed into the remuneration review process and directly influence colleagues annual STI

outcomes

WHAT IS CHANGING FOR LEADERS AND COLLEAGUES The performance review process for FY14 is the same as the previous year

WHAT YOU NEED TO DO AS A LEADER Ensure all colleagues objectives for FY14 are finalised in myHRspace before 4 th July as when the new performance year opens, you will no

longer be able to amend FY14 performance objectives Ensure your team complete their self assessments and book some time in your diary to rate colleagues and conduct 1:1s with colleagues to

discuss performance and enter individual ratings into myHRspace before 4th July Full year data may not be available when you rate colleagues (prior to 4th July). If this is the case, please ask them to complete based on the

latest results but keep in mind what is in pipeline for them Book in 1:1 sessions with colleagues between 5 th – 29th August to share their final performance ratings and submit on myHRspace Remember to rate colleagues on Leave without Pay (LWOP). ALL colleagues require a rating to be eligible for an STI

KEY DATES 9 - 30 June – Colleagues enter end of year performance self-assessments into myHRspace 30 June - 4 July – Leaders conduct 1:1s with colleagues to discuss performance and enter individual ratings into myHRspace. Ratings not to be

confirmed to colleagues at this stage (pending calibration) 5 - 9 August – Leaders share final ratings with colleagues and submit on myHRspace

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Appendix 3 - Annual Remuneration Review

WHY Bankwest recognises that our colleagues are our greatest asset and their contribution to our success is acknowledged through their

remuneration and a variety of other benefits To ensure each colleague’s remuneration is right for them, each year we complete a transparent and consistent Performance and

Remuneration Review for eligible Bankwest colleagues

WHAT IS CHANGING FOR LEADERS AND COLLEAGUES There are a number of changes impacting Rem Managers for this year’s review, the largest of which is the making of recommendations in a

new system PeopleLink (previously Remspace). The full detail of the changes and information on using the new system will be available in July

WHAT YOU NEED TO DO AS A LEADER Complete the annual performance review activities as they feed into the remuneration review process Check that your team details are up to date in myHRspace and submit any colleague variation for update and approval by June 30th Rem Managers – submit remuneration recommendations in PeopleLink which will then be reviewed by EGMs prior to approval. More

detailed leader information will be provided to you in late July to support you to make reward decisions Once the recommendations are approved, communicate remuneration outcomes to colleagues

KEY DATES By June 30 – All leaders check team details in myHRspace and process/approve all colleague variations 5 - 15 August – Rem Managers enter recommendations in PeopleLink 19 August – Divisional review and approval 26 August – MD approval of Bankwest recommendations 1 September – Outcome letters available and leaders communicate outcomes 18 September – Increases to FAR and STI outcomes paid

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Appendix 4 - Setting Direction for FY15

WHYThe annual performance objective and KPI process is a cyclical BAU activity that enables leaders and colleagues to: Set specific expectations of what should be achieved over the next 12 months measured by clear performance standards Make the connection between a colleague's work and Bankwest's Vision and Strategic Priorities Drive alignment and shared goals (where appropriate) across the organisation

WHAT IS CHANGING FOR LEADERS AND COLLEAGUES Objectives and KPIs have been reviewed to ensure they align to each role type’s key responsibilities and support the progress we are looking

to make in embedding our improved risk culture across the business The Risk Gate Opener/Objective approach has been refreshed to provide colleagues with clarity relating to their risk accountabilities and drive

consistency across the organisation Our People Capabilities are being launched to reinforce behavioural expectations for colleagues (the “How”)

WHAT YOU NEED TO DO AS A LEADER Read this pack outlining the new KPI framework, ensure that you fully understand the changes and can clearly articulate the rationale and

benefits to your colleagues Schedule time to conduct 1:1s with each colleague to discuss their individual KPIs and targets and set clear expectations for the new FY (for all

front line colleagues, objectives will be automatically populated in myHRspace and need to be approved by the end of July)

WHEN 16 - 30 June – Leaders hold 1:1s with colleagues to set Objectives and KPIs 7 July – objectives and KPIs automatically populated in myHRspace 31 July – Leaders approve Colleague objectives in myHRspace

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Appendix 5 - Clarifying the Approach and Application of the Risk Objective

Driving a Risk Aware Environment

WHY A review of last year identified a lack of clarity around roles & responsibilities for risk management across the 3 Lines of Defence (3 LoD) and

inconsistency in the application of reward, recognition and consequence management frameworks. FY15 provides the opportunity to provide clarity and align these frameworks

WHAT IS CHANGING FOR LEADERS AND COLLEAGUES

1. Embedding a strong risk culture A consistent minimum standard for risk will be established through the introduction of the standard risk objective: “Bankwest wants to be

regarded as a division of CBA Group that manages risk well. Delivery of our strategic priorities will be achieved by robust risk management and strong governance. To enable this you will: adhere to the risk appetite statement, meet your risk accountabilities, follow process, escalate issues, promote a strong risk culture and complete training”

New risk KPIs have been set to align to the standard risk objective.

2. Clarifying the approach and application of the risk objective Every colleague within the bank will have a risk objective in the performance system, and there will be no separate risk gate opener which sits

outside of this (with the exception of sales incentives risk hurdles) Across the bank, minimum standard for risk have been established through the standardised risk objective These standards have been translated into meaningful risk KPIs for the different roles in your teams The risk objective will be a moderator on the mid year and final performance rating

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1. Assess colleague performance based on performance objectives and people capabilities

2. Assign performance rating based on “what”

(performance objectives excl. risk objective) and

“how” (people capabilities)

4. Assess colleague performance based on risk objectives and KPIs

and enter rating into ratings box for risk

objective line

Exceeds DNM Exceeds Exceeds ExceptionalMSE DNM MSE MSE MSE

Meets DNM Meets Meets MSEDNM DNM DNM DNM DNM

DNM Meet MSE Exceeds“How” I deliver rating

“What” I deliver rating

Appendix 6 - Guidelines for Application of the Risk Moderator

3. Enter ratings into the system to determine overall performance

rating (based on grid 1) and add usual Line

Manager commentary

5. Using grid 2 as guidance1 moderate the colleagues performance

6. In myHRspace manually amend the

“what” rating which will in turn amend the

overall rating to reflect the risk moderation2

8. Discuss recommended rating at calibration

session(s) and determine final rating

9. Communicate final rating to colleague

Grid 1 – Determining overall performance

7. Amend Line Manager commentary to explain moderation and “save”

1. Please note that Grid 2 is a guideline only, leaders will need to take into account overall colleague performance and behaviour when determining final result

2. Due to the system constraints in myHRspace, the “what” rating needs to be manually updated to derive the final performance rating post moderation - Further support will be provided to leaders in preparation for the mid and full year performance reviews in FY15

Amend on the back of risk co advice

Grid 2 – guidance for moderating overall performance based on risk performanceGate 1 – Perf. Assessment Gate 2 - Risk Assessment Overall Score

Exceptional Exceeds ExceptionalExceptional MSE Exceeds – ExceptionalExceptional Meets MSE – ExceptionalExceptional DNM DNM

Exceeds Exceeds ExceedsExceeds MSE MSE – ExceedsExceeds Meets MSE – Exceeds Exceeds DNM DNM

MSE Exceeds MSE – ExceedsMSE MSE MSEMSE Meets Meets – MSEMSE DNM DNM

Meets Exceeds Meets – MSEMeets MSE Meets – MSEMeets Meets MeetsMeets DNM DNMDNM Exceeds DNMDNM MSE DNMDNM Meets DNMDNM DNM DNM

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Appendix 7 - Roles and Responsibilities for Each Role

SRM Activity (MPP) What activities do we expect from an SRM? % of an SRM day

NTB sales and revenue Face to Face meetings, networking events, building relationships with advocates, “Mission day” activities, portfolio sales strategy, meeting prospects, generating new to bank business

30%

People Leadership Coaching RM & ARM, portfolio planning, 1:1’s with RM & ARM, ensuring the portfolio has an effective operating rhythm 20%

Risk Management Oversee and sign off monthly risk requirements, attend ERAD discussions, ensure a satisfactory overall portfolio risk performance 20%

Customer service & relationships

Existing client visits, relationship building and networking with HV client groups 30%

RM Activity (MPP) What activities do we expect from an RM? % of an RM day

Organic growth & revenue Maintaining existing client relationshipsCross sell to existing client base, increase share of wallet and % of MFI customers in the portfolio, ensure new business is written sustainably and profitably, Mission day activities, networking events

30%


Face to Face meeting with existing clients, building and retaining existing client relationships 20%

Risk Management Deal writing, coordination, planning and execution of monthly CQR activities 40%

Coaching Coaching the ARM through credit submissions and process 10%

ARM Activity (MPP) What activities do we expect from an ARM? % of an ARM day

Risk Management Execution and day to day management of all CQR activities including preparing papers for A/R’s, E/Fs etc., ensuring the data quality of the portfolio, management of refs and irregulars and watch list clients

20%


Maintaining existing client relationships 60%

Organic growth & revenue Assisting RM to identify cross sell opportunities within the portfolio & increase the % of MFI customers in the portfolio 20%

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RM Activity (SPP) What activities do we expect from an RM? % of an RM day

Organic growth & revenue Cross sell to existing client base, increase share of wallet and % of MFI customers in the portfolio 30%


Meetings with existing clients, building and retaining existing client relationships, customer enquiries, customer / account management 40%

Risk Management Deal writing and management, coordination, planning and execution of monthly CQR activities. Execution and day to day management of all CQR activities including preparing papers for A/R’s, E/Fs etc., ensuring the data quality of the portfolio, management of refs and irregulars and watch list clients

20%

NTB sales and revenue Face to Face meetings, networking events, building relationships with advocates, Mission day activities, meeting prospects, generating new to bank business

10%

RSM Activity What activities do we expect from an RSM? % of an RSM day

Overall strategy and business performance

Setting the strategic direction of the region and driving performance results across all of the strategic priorities. 20%

NTB sales and revenue Attend joint face to face meetings and networking events with prospects and advocates. Set regional targets and minimum portfolio expectations for Mission day activities. Support SRMs / RMs in generating new to bank business

20%


Support the team in developing and maintaining relationships with new and existing customers. Attend joint face to face meetings with existing customers to monitor service performance and ensure delivery of excellent customer experience for all customers in addition to identifying cross sale opportunities.

20%

Risk management Support the team to ensure the quality of business loans meet the required standards, including quality assurance of deal submissions to Business Credit warranting acceptance of risk, conditions, quality of analysis, pricing and presentation.

20%

People & Culture and Leadership

Coaching, mentoring, setting development plans, performance management and appraisals for all direct reports. MORs with all regional colleagues. Work with the team to develop strong stakeholder relationships across the bank.Driving a culture which fosters colleague engagement within the region

20%

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Ops Assistant Activity What activities do we expect from an Ops Assistant? % of an OA day

State support Provide support to the state, specifically the following:• Operational support for new starters, OHS compliancy, invoices and payments, accurate tracking and reporting of leave, weekly sales

meeting data, setting agenda for ops meetings, and client event and team coordination for the state. • Ensure that the reconciliation of suspense accounts is undertaken in a timely and accurate manner and identifying any issues arising as

per policy. Travel and reconcile travel accounts• Invoices/raising purchase orders i.e Rent/Milk, Newspapers, Fruit, Coffee etc • Stationery/general office supplies• Veda/Landgate/RP data invoices• Fleet cars service/liaising with retail

100%

Team Assistant Activity What activities do we expect from a PA? % of a TA day

State Support • Support to State Manager and LT for administrative requirements including people soft expenses / mileage for state manager and leadership team and production and reporting as required

• Diary planning and management of weekly rhythm, preparation of supporting papers for State Manager for review before meetings. State leadership meeting invites and agendas, logistics

• HR administration including tracking annual and long service leave, birthdays, performance review cycle

100%

BPM Activity What activities do we expect from an BPM? % of an BPM day

NTB, Organic growth and revenue

Support the State Manager and frontline colleagues to drive local sales development activities such as networking events, building relationships with advocates, portfolio PAGAs and sales strategies, sales and pipeline analysisExecution of central sales and marketing activities such as Mission day activities, Connect series events etc. Provide frontline insight for divisional / Bankwide customer service initiatives

40%

Customer Service and Relationships

Identify new ways to impact customer service behaviours within state and implement state plans.Embed the customer charter within states and execute other central customer service initiatives Provide frontline insight for divisional / Bankwide customer service initiatives

40%

People and Culture and Leadership

Support State Manager and RSMs to drive people and culture action planning sessions and initiatives to drive improvement in this areaCoaching, mentoring, setting development plans, performance management and appraisals for Ops Assistants. stakeholder relationships across the bank.

20%

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Appendix 8 - Customer Satisfaction KPISurveys conducted

COLLEAGUES WILL BE MEASURED ON BOTH AN EXTERNAL SURVEY (BFSM) AND THE WE’RE LISTENING SURVEY

BFSMThe Business Financial Services Monitor (BFSM) is the only comprehensive view of performance of Australian banks and focuses on the 5 drivers which determine a customers overall satisfaction with a financial institution. Drivers are price, range of products, service channels, brand and RM service. • Customers are asked a series of questions, including who their main financial institution is. We are provided a score based upon those customers who

choose us as their MFI and our performance against all 5 drivers. • Customers may fit in either BB or BSC however, we can not tell where they sit. • The BFSM interviews almost 20,0000 business decision makers each year. Businesses are classified according to their turnover in the last 12 months, not

their lending or deposit footings. DBM interviews approximately 200 Bankwest customers in each 6 month roll.

WE’RE LISTENING SURVEYS (EXCLUDES BAT COLLEAGUES)The We’re Listening survey is the internal Bankwest customer sat survey conducted via the phone and focuses purely on the drivers of RM service and the 12 different attributes which determine a customers satisfaction offered by their relationship management team. The survey is commissioned by Bankwest to provide us with greater insight into how we service our customers and to provide colleagues with direct customer feedback on their performance. The results are divided by state and region and reporting down to an individual portfolio/RM level is available. Satisfaction is based on a score of 0-10 and overall satisfaction is ranked independently of drivers. Verbatim sections are also included in the survey: • Why did you give Bankwest rating x?• Why did you give your RM rating x?• Have you had a disappointment? Explain

HOW ARE THE SURVEYS CONDUCTED• Surveys are conducted via a phone and called during business hours from a non private number and have the option to answer straight away or

make an appointment to complete it, up until 7 pm that night. • DBM does not call customers on international numbers and will only speak to the person nominated as the primary contact (as

flagged in HOST). To ensure DBM is calling the right contact, please ensure you have the primary contact flagged correctly in HOST, you can find the Valid Customer Contact Details Report here which will show you which customers are valid and the reasons why other customers are not valid.

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http://bwapp/sites/BWB-MIRepository/Business%20Banking/2.%20Additional%20Reporting/2e.%20Customer%20Contact%20Reports/BB%20Valid%20Customer%20Contact%20Details%20v1.1.xlsm






SURVEY FREQUENCY

Sub $2million Commercial R&R Corporate & Property BAT

Survey frequency Monthly Quarterly

Aug / Nov/ Feb/ May

MonthlySemi

AnnualNov / May

Annual

Reporting Cycle Monthly through

interactive workbook

Quarterlythrough


Quarterlythrough


Semi Annual through


Annual

Appendix 8 - Customer Satisfaction KPISurveys conducted

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YOUR RESULTS Your results will be reported in the interactive workbook which will provide you will your performance including are you contacting your customers the right amount, what is the sentiment of your customers, source of complaints, what you are doing well and how well you are performing compared to other portfolios in your state and nationally. Results are also based on a regional and nationally level. Every time you receive a new set of results you should do the following:

1. Look at your overall scores and bottom and top performing attributes2. Ensure that you have responded to any red flags or disappointments and discussed with your manager3. Look out for any variations from last month 4. Go into the customer voice tab and read the customer verbatims, and look into the raw data for specific comments made that will

give you powerful insights into what you can do to improve or continue to do that is working well5. Determine 1 -2 actions with your manager that you will do in that month and measure you success against the next survey6. Refer to the minimum service standards to ensure these are being met

RED FLAGSIn the process of the We’re Listening survey red flags are issued to clients that are unsatisfied. The client is then asked if they wish to be contacted by Bankwest, those contained in the Red Flag report require follow-up from their RM. Red flags are prompted by:• Low scores (clients scores Bankwest or RM manager with a score between 0-6)• Disappointments (when asked if the client had a disappointment in the last three months they respond in the affirmative);• When they cannot identify their RM. Colleagues who receive a red flag should follow up with the client immediately to resolve any issues provided that the

client has disclosed their details. Please note when following up customers be sure to:• Review the feedback by the customers, and decide whether you need to address the issue with your manager and who needs to make the call• When you make the call, thank the customer for their feedback and do not advise them that they are a red flag• Seek to understand their opinion on Bankwest service and not challenge them on their ratings• Ask them what you can do to improve their experience moving forward and to understand what a 10/10 customer experience would mean for them.

Appendix 8 - Customer Satisfaction KPIActioning your results

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GATEOPENERSThe customer satisfaction gateopener is:• 20% of customers surveyed for sub $2million LOBs and • 30% for all other LOBs of customers surveyedThis is calculated by the total number of customer groups in your portfolio less any acceptable exclusions which include GCS, Natural Disasters, deceased customers and customers that have opted out of surveys (please note these exclusions are carried out every month when the data is pulled). You will be able to find all the detail on customers valid contact details as well as which customers are excluded in the Customer Valid Contact Details report.

VALID REASONS TO EXCLUDE CUSTOMER FROM SURVEYSIt is important for the purpose of data integrity and to understand our customers sentiment that we survey all customers. With Business Financial Services Monitor (BFSM) surveys, we have no control over which customers are contacted and there is no exclusion process. To align the We’re Listening surveys to BFSM, colleagues are no longer able to remove customers from the hitlist process, with the exception of GCS customers. All LOBs will continue to be provided with a hitlist to warm up customers for the purposes of responding to the survey however following advice from Operational and Regulatory Risk the report will no longer contain all customer details. The list will contain CIF key information and customer initials only. Colleagues will be able to find information on their customer’s valid contact details as well as why the customer does not have valid reasons for surveying in the Customer Valid Contact Details report available on myMI. Colleagues should review this data and correct any errors to avoid the incorrect customer being surveyed or the customer being excluded due to incorrect phone number entries.

To ensure you reach your gate opener, there are a number of actions you can undertake:1. Ensure the correct primary contact is flagged in HOST correctly2. Keep your customers phone numbers up to date in HOST3. Warm up your customers before the surveys start4. Ensure your portfolio data is clean overall, i.e. closing out customers correctly when they have refinanced, ensure they sit under the correct portfolio in HOST5. Continue to proactively reinforce customer satisfaction - as an important part of our business. Ensure all meeting agendas have customer satisfaction as an

agenda item and discussed regularly with customers and that our customers will be surveyed by an external company. Implement call and care program around customer satisfaction.

6. Email signature to include line on customer satisfaction – 7. Close the loop - Not only do customers want to be heard but they also want to know that you’ve acted on their feedback. Thanking customers via thank you

letter will show that you have acknowledged their feedback and in turn they will be more inclined to respond to surveys in future.

Appendix 8 - Customer Satisfaction KPIGateopener

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Appendix 9 -Introducing our People Capabilities

WHY Our People Capabilities provide a framework for building capability across the organisation, they describe the skills, knowledge and behaviours

needed to successfully deliver on our strategic priorities The introduction of Our People Capabilities will enable us to maximise the opportunity to leverage group resources to further build capability

within our teams

WHAT IS CHANGING FOR COLLEAGUES Our People Capabilities replace the Beehaviours and will set the behavioural expectations that colleagues will be measured against (the

“How”) in the performance management framework. They are a building block for other key people processes:› Attracting and selecting the right colleagues › Measuring the “how” part of performance› Mapping our talent› Developing colleagues

WHAT YOU NEED TO DO AS A LEADER Our People Capabilities Leader Workshops were held in June if you've been selected to attend one of these sessions and have not registered,

it's important you take the time to attend. Please email [email protected] to register for additional sessions. Attendees will be equipped with the knowledge and tools to introduce and launch Our People Capabilities with your team and explain its role

in building capability in our people

WHEN 1 July – Leaders to launch/introduce Our People Capabilities to teams July – Leader “Lunch and Learn” sessions - How to have a performance planning conversation using Our People Capabilities

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Appendix 10 - Development Planning for FY15

WHYDevelopment planning is an opportunity to: Link development activities directly to performance objectives to give colleagues the opportunity to excel in their performance review Set learning goals that a colleague can work on to assist them in making the next step in their career at Bankwest Demonstrate a genuine commitment and care for colleagues by supporting them with their career development

WHAT IS CHANGING FOR LEADERS AND COLLEAGUES The development planning process for FY15 is the same as the previous year

WHAT YOU NEED TO DO AS A LEADER Support colleagues in creating their development plans and ensuring they are aligned to help them achieve their performance objectives or

career aspirations Approve development plans in myHRspace Hold regular development discussions with colleagues throughout the year

WHEN 31st August – Development plans should be completed, submitted and approved in myHRspace

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Appendix 11 - SMART Guidelines for Recording Broker Deals

1. New Broker introduced deal written by a BDA

Upon creation of a new product in SMART and for all new broker introduced deals, the Broker & Acquisition Team colleague will be required to manually select their name from the drop down box in the ‘Business Development Team Sales Person’ field and ensure that the correct portfolio number is recorded. It is also imperative that the ‘Aggregator’ and ‘Broker Name’ fields are completed.

On receipt of a deal from the Broker & Acquisition Team, the Portfolio Manager will be required to update the ‘Current Sales Person’ field to record their name and also ensure that their portfolio number is listed. This will ensure that the BAT BDM receives the point of sale recognition whilst the Portfolio Manager will receive the balance sheet and revenue growth.

2. Pharmacy / Franchise / Property deal > $10M or other deal that requires Specialist, referred to a BAT BDM from a Broker will be referred to the specialist property teams in your states for writing. Full credit to both teams for this type of deal.

Upon creation of a new product in SMART and for all new broker introduced deals, the Broker & Acquisition Team colleague will be required to manually select their name from the drop down box in the ‘Business Development Team Sales Person’ field and ensure that the correct portfolio number is recorded.

On receipt of a deal from the Broker & Acquisition Team, the Portfolio Manager will be required to update the ‘Current Sales Person’ field to record their name and also ensure that their portfolio number is listed. This will ensure that the BAT BDM receives the point of sale recognition whilst the Portfolio Manager will receive the balance sheet and revenue growth.

Finance reporting will reflect drawdowns for both BAT BDM and Property Teams

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Appendix 11 - SMART Guidelines for Recording Broker Deals

3. Any increases, restructures, progressive drawdowns etc are not counted by BAT and will be completed by portfolio teams.

Where a broker refers a deal for an existing client directly to the Portfolio Manager (no BAT involvement) the Portfolio Manager is required to select their name from the drop down box in the "Current Sales Person" field and must then select a BAT leaders name (either Head of BAT or State Manager) drop down box in the "Business Development Team Sales Person" Field.

This process will ensure that the Portfolio Manager receives full recognition while providing Broker & Acquisition Team visibility of all broker referred deals.

State Manager or Head of BAT insert

here

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business banking kpis fy15 - royal commission

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