KPMGs People Management Leader Program People Management Leaders

KPMG’s People Management Leader Program

People Management Leaders (PML) Background w People Strategy - Employee Survey - Functional Teams/Focus Groups w PML Pilots w National Roll-out to Client Service Delivery and Client Service Support 2

PML Strategy w Put performance management into the hands of the people that are the best at it by selecting the right People Management Leaders w Transform the performance management process into a more robust program including career development, retention and networking w Create a culture where developing the careers of our people is a high priority w Improve communication channels and enhance connectivity within the firm through the formation of PML Communities w Increase retention of our exceptional performers (no surprise resignations) w Create an environment where non-PMLs strive to be PMLs/SPMLs w Reinforce the strategic initiatives of the firm 3

Performance Management Impact Our Employee Survey provides insight into the impact that performance management has on employee satisfaction and turnover To assess that impact, we looked at a Performance Management Index. The index is based on the following three Employee Survey questions: 1. Receive meaningful career guidance when I need it 2. Management regularly provides me with timely and constructive feedback 3. I feel satisfied with the quality of my year-end performance review discussions 4

Performance Management Impact Performance Management Index Rating Favorable Unfavorable Favorable Unfavorable Employee Survey Item Variance Overall, I would say this is a great place to build a career. 73 Overall, I would say that this is a great place to work. 72 I rarely think about looking for a new job with another organization. 64 I am paid fairly for the work I do. 58 Management enables me to balance work and personal-life responsibilities. 58 5

Performance Management Impact Top 5 Offices vs. Bottom 5 Offices EP Turnover -38% Overall Turnover -18% 6

Feedback Successes w Assessment meetings have been more productive w More consistent messaging w Improved compliance with engagement reviews w Community activities have been well received w Vast majority are happy with new program; all agree with concept Challenges w Time commitment by PMLs w Consistency in program execution among PMLs w Engaging and developing non-PML managers 7

What’s Different w We are putting performance management responsibilities into the hands of the right people w We are creating a PML/SPML role that is much more robust than the traditional performance management role including career development, work/life balance, resource management and networking w We are building communities w We are providing more consistent performance feedback, ratings, communications, etc. w We are focusing on accountability and recognition 8

The PML Structure SPMLs SPML Community PML (AMP/ BUPIC/ Industry Leader/ Service Line Leader) PML (Partner/MD) (Sr. Mgr. /Director) Counselees (Sr Mgr. , Sr. Assoc. ) (Sr. Assoc. , Assoc. ) PML Community Non-PML (Partner/MD) PML Community 9

PML Responsibilities w Meet with counselees on a frequent basis throughout the year to discuss performance, progress towards goals, career plans, etc. w Regularly solicit feedback from counselees’ engagement managers and ensure timely completion of engagement reviews w Complete performance review forms/conduct performance reviews and review goals to ensure they are challenging, achievable, and consistent with our values w Communicate KPMG strategy, values, and firm/practice messages to counselees w Provide/assist counselees with tools, knowledge, and resources (Employee Career Architecture, etc. ) w Align counselees to appropriate training courses and engagements 10

PML Responsibilities w Monitor and reinforce compliance with mandatory requirements w Apply policies fairly and consistently, and take responsibility for the conduct of your counselees w Integrate new hires and transfers into their PML community w Maintain contact with counselees on expatriate assignments w Assist counselees in the identification of appropriate mentors w Conduct PML community meetings/activities w Meet with SPML on a regular basis 11

SPML Responsibilities w Identify and assign new PMLs w Conduct periodic meetings to check the pulse of their SPML Community, discuss issues and communications, and share best practices w Evaluate and measure performance of PMLs in their role as People Management Leaders and the overall PML process/program w Ensure PMLs have appropriate tools, knowledge and resources and respond to questions/concerns w Recognize and reward PMLs in their communities w Conduct SPML community meetings/activities w Champion PML program by emphasizing importance and supporting their PMLs 12

Career Guidance to Professionals Based on Individual Circumstances Employee Wants To: Stay With Firm / Function Leave Firm / Function Develop, Reward and Recognize Re-Recruit Performance Counseling Career Transition Services Stay With Firm / Function Leadership Wants Employee To: Leave Firm / Function 13

Monitoring and Tracking Program Success Objectives: w Measure overall success of PML Program in an effort to continuously improve the people management process and overall state of the firm w Monitor PML/SPML performance to ensure that the goals of the program are being met and that the right people remain in the PML/SPML role 14