Evidence Based Management in HR at Danske Bank

1
Evidence Based Management in HR at Danske Bank

• 2006
• Lars Mørch, Head of HR, Member of the Executive
  Committee, Danske Bank

2
One platform exceptional brands- a common,
exportable strategy

• Common infrastructure
• HR
• IT
• Communication
• Finance
• Credit
• Call Centre
• Shared Services Centre
• Same retail strategy
• Products and concepts
• Product development
• Retail structure and processes

3
Geographical operations- cautious, value-adding
expansion

• Predominantly represented in Northern Europe
  within retail banking
• Directly or indirectly represented in many
  financial centres

4
Performance highlights- keeping up the momentum

• Net profit ? 5 to DKr 3.1bn
• Strong activity in most business units and
  support from higher short-term interest rates
• Income up 13 on volume growth and heavy
  customer-driven trading activity
• Costs up 23 due to integration expenses and
  bonuses
• Migration of NB and NIB completed

DKr m
Q1 2005
Q1 2006
Index
Income
8,039
9,123
113
Expenses
3,958
4,871
123
Profit bef. credit loss exp.
4,081
4,252
104
Credit loss expenses
-126
-129
-
Profit before tax
4,207
4,381
104
Tax
1,223
1,250
102
Net profit for the year
2,984
3,131
105
DKr m
Breakdown of profit growth
DKr bn (end-period)
Q1 2005
Q1 2006
Index
4,500
- Corporate loans
338
393
116
- Retail loans
204
251
123
Bank loans ex repos
542
643
119
Repo loans
197
217
110
3,250
Mortgage loans
531
567
107
Trading portfolio
468
357
76
3,131
Deposits
569
618
109
2,984
Shareholders' equity
65
70
109
2,000
Total assets
2,271
2,392
105
Q1 2005
Income, ex
Income,
Expenses,
Expenses,
Credit
Tax
Q1 2006
Risk-weighted assets
884
972
110
NBNIB
NBNIB
ex
NBNIB
losses
NBNIB
5
Danske Bank HR History- increased focus on
development

• Old school Personnel Department until 2002
• Strategic refocusing of HR
• Corporate Centre of Excellence
• Part of strategic Group platform

6
Shared ambitions sufficient flexibility- as
local as possible
HR vision

• The Danske Bank Group will attract and retain
  people with the best competencies and the highest
  performance.

The management of the Danske Bank Group employs
best-in-class HR solutions
HR mission
7
HR is a mutual responsibility - among equal
stakeholders
Business unitsExecute HR and assure -
committed employees- a high level of
competencies- a high level of performancethrough
HR tools
HR DevelopmentOwns the HR strategy-
responsibility for concepts, follow-up and
support
HR ServicesDelivers efficient, flawless
administration
8
that leaders execute- and report on
Top management Reporting/analysis
Group vision, mission and focus
areas, Models/solutions
ExCo HR Dev.
HR Policies
HR Data and Surveys
Local adaptations and requirements
Local management reporting
Business Unit HR and Management
Execution
Local Management and HR
Enters Own data
Employees
9
Robust HR Leadership Practices- tools,
assessment, support
Centres of excellence

• Support
• Projects
• Coaching
• Sparring

• A wide range of HR tools
• Competency profiles
• Learning methodology
• e-Learning
• Management foundation
• Leadership programme
• Succession Management
• Talent management
• Incentive programme
• Performance agreements
• HR Key Figures
• HR System
• Recruitment/employer branding
• Coaching, sparring and support
• Employee Engagement surveys
• Projects

Assessment
Yearly circle
Training/competencies
Strategic Focus Areas
Leadership training
Succession/ talent
Performance management
Recruitment and attraction
HR Consultants
10
All HR activities are monitored

• Process owned by HR
• Conclusions owned bybusiness units

Prioritising targets and activities
ACTIVITIES
RESULTS
Evaluation of results and new target setting
11
1. Management
12
2. Succession management and talent development
13
3. Commitment
14
4. Recruitment and attraction I
15
4. Recruitment and attraction II
16
5. Performance management I
8 7 6 5 4 3 2 1 0
17
5. Performance management II
18
6. Competency development
19
Development in employee engagement outperforms
peers and industry
20
The case for HR at the branch network Employee
profit correlated with employee satisfaction and
motivation in Danske Bank
Employee profitability index