Building the best team in Lloyds Banking Group. David Littlechild, Lloyds Banking Group Nick Hayter, IBM Science & Analytics

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1 Building the best team in Lloyds Banking Group David Littlechild, Lloyds Banking Group Nick Hayter, IBM Science & Analytics

2 AGENDA Introduction An external perspective Measuring organisational culture and engagement Using insights to support great team conversations and effective action planning Headline results Future challenges Q&A 2015 Lloyds Banking Group plc and its subsidiaries 2

3 LLOYDS BANKING GROUP Our vision is to be the best UK bank for customers, this means being the best bank for families, for businesses, for our people, for investors and for our communities Lloyds Banking Group plc and its subsidiaries 3

4 LLOYDS BANKING GROUP As part of our 2011 strategy we have made significant progress on our journey to be Best Bank for Customers and Helping Britain Prosper GCFC Customer Conduct Culture H H H H Lloyds Banking Group plc and its subsidiaries 4

5 LLOYDS BANKING GROUP Over the last four years we have transformed Lloyds Banking Group into a low risk, UK focused Retail and Commercial bank We have had some great successes since We are stronger, simpler, reshaped our business to serve customers better and invested in our business for customers. By the end of 2014 we had: Reduced our global footprint from 30 to just 6 countries outside the UK Launched a challenger bank TSB - onto the high street and successfully floated the business Grew SME lending by 19% in a market that has contracted by 16% Helped over 275,000 first time buyers get on the property ladder - more than anyone else Source: Annual Report Lloyds Banking Group plc and its subsidiaries 5

6 1 AN EXTERNAL PERSPECTIVE 2015 Lloyds Banking Group plc and its subsidiaries

7 2 MEASURING ORGANISATIONAL CULTURE AND ENGAGEMENT 2015 Lloyds Banking Group plc and its subsidiaries

8 CREATING A HIGHLY ENGAGED WORKFORCE Engagement alone is not enough to ensure performance; to energise colleagues, we must create the right environment for them to reach their full potential. Drivers of engagement Focus on performance enablement Strong leader and line manager capability Employee Engagement Predicts employee commitment and discretionary effort X Performance Excellence Identifies enablers or barriers to high performance Individual / Team performance Collaboration Colleague Advocacy Customer Satisfaction & Loyalty Business Performance Source: IBM High Performance Engagement Model 2015 Lloyds Banking Group plc and its subsidiaries 8

9 Employee Engagement BUILDING SUSTAINABLE ENGAGEMENT Building high levels of rational and emotional engagement are important ingredients to delivering sustainable business results High COMMITTED BUT NOT ENABLED (Generally satisfied, but lacking customer focus) Are colleagues focused on the right things? HIGH PERFORMANCE ENGAGEMENT (Strong customer-centric approach) Understand and leverage strengths. Do colleagues have appropriate tools and support? Are we leveraging colleague passion/commitment? Focus: Improve Processes / Infrastructure What can be learnt from our best? How can we replicate it elsewhere? Focus: Continuous improvement REQUIRES FOCUSED ATTENTION (Low morale areas; identify sustainable actions) What quick wins can be established? What are the engagement priorities? How can we better enable colleagues? Focus: Prioritisation of key actions PROCESS-DRIVEN (Enabled, but lacking pride and passion) What are the engagement priorities? How do we emotionally connect with colleagues? How do we ensure we retain our top talent? Focus: Engaging colleagues Low Performance Excellence High 2015 Lloyds Banking Group plc and its subsidiaries 9

10 Employee Engagement BUILDING SUSTAINABLE ENGAGEMENT What this looks like for colleagues High CONTENTED Colleagues may be: Happy with their lot Focus on what needs to be done in their job May be frustrated - are they being stretched? MAXIMISING CAPABILITIES Colleagues may be: Going the extra mile without being asked Proactive and showing initiative Contributing fully to the bank s strategy and ambition DISENGAGED Colleagues may be: Under-utilized and under valued May be overtly negative with colleagues Disconnected to the Bank s strategy and ambition EMOTIONALLY UNCONNECTED Colleagues may be: Delivering results, but not feeling fully recognized Less innovative or less accepting of new ideas Not feeling valued Low Performance Excellence High 2015 Lloyds Banking Group plc and its subsidiaries 10

11 OUR ASPIRED CULTURE The Bank s culture is defined by the Values and Codes of Responsibility which sit at the heart of building a customer centric culture Our Values the way we do business Lloyds Banking Group plc and its subsidiaries 11

12 CREATING A HIGHLY ENGAGED WORKFORCE The survey question set is designed to support our Bank s Strategy and ambition to build the best team. Key Indices Employee Engagement Index Demographics Performance Excellence Index Dimensions Line Management Index Verbatim Question(s) 2015 Lloyds Banking Group plc and its subsidiaries 12

13 3 GREAT TEAM CONVERSATIONS & EFFECTIVE ACTION PLANNING 2015 Lloyds Banking Group plc and its subsidiaries

14 IDENTIFYING KEY ENGAGEMENT DRIVERS The introduction of Priority Item analysis has helped us to develop a more scientific approach to action planning. Priority Item Dimension Question A B C D E F G H I J K L 1 Name Item Name Item Name Item Name Item Name Item Name Item Name Item Name Item Name Item Name Item A TEAM 1 D TEAM 4 G TEAM 7 J TEAM 10 B TEAM 2 E TEAM 5 H TEAM 8 K TEAM 11 Based on a correlation analysis, Priority Items indicate which items are most likely to have the greatest impact on overall engagement. C TEAM 3 F TEAM 6 I TEAM 9 L TEAM Lloyds Banking Group plc and its subsidiaries 14

15 HOW WE ARE SUPPORTING TEAM CONVERSATIONS AND ACTION PLANNING We will use the outputs from team conversations and action planning to inform signature actions to help us to build the best team and the best bank for customers Understanding Sharing results your results with your team Reflect and Act Leaders and line managers (report owners) are invited to access and download their individual team reports via an online survey portal. Leaders and line managers are encouraged to engage their teams in high quality, conversations about their results and the progress they are making to build the best team. Leaders and line managers use the outputs from team conversations to inform action plans and continue to monitor progress of these actions throughout the year. We use the outputs to conduct an organisationwide thematic analysis to identify signature action(s) Lloyds Banking Group plc and its subsidiaries 15

16 ANALYSING UNSTRUCTURED DATA The traditional method of analysing verbatim comments is a manual and time consuming process. IBM s Survey Analytics tool allows users to explore and gain key insights from large volumes of comments (unstructured data). The tool can also be used to filter and segment demographics when combined with structured data. The analysis is driven by colleague comments which are used to create subcategories, helping to create focused and targeted actions Lloyds Banking Group plc and its subsidiaries 16

17 4 KEY INSIGHTS WHAT OUR LATEST RESULTS TELL US ABOUT CULTURE & ENGAGEMENT 2015 Lloyds Banking Group plc and its subsidiaries

18 RESPONSE RATES The survey is run in accordance with Market Research guidelines and external best practice, ensuring all responses remain secure, anonymous and confidential Lloyds Banking Group - Final response rates COLLEAGUE SURVEY PULSE 2012 COLLEAGUE SURVEY PULSE 2013 COLLEAGUE SURVEY PULSE 2014 COLLEAGUE SURVEY BEST BANK The 2015 survey invited more than 82,400 colleagues to share their views on what it is like to work at Lloyds Banking Group and to comment on the progress we are making towards becoming the best bank for customers we received more than 68,300 responses (83%) Lloyds Banking Group plc and its subsidiaries 18

19 EMPLOYEE ENGAGEMENT INDEX (EEI) How colleague engagement levels have changed over time and how the scores compare to external benchmarks. 100 Employee Engagement Index (EEI) Colleague Survey 2012 Pulse Survey 2012 Colleague Survey 2013 Pulse Survey 2013 Colleague Survey 2014 Pulse Survey 2014 Colleague Survey 2015 Best Bank for Customers Survey Key: 2015 UK Norm 2015 UK High Performing Norm 2015 Lloyds Banking Group plc and its subsidiaries

20 PERFORMANCE EXCELLENCE INDEX (PEI) How performance excellence levels have changed over time and how they compare to external benchmarks. 100 Performance Excellence Index (PEI) Colleague Survey 2012 Pulse Survey 2012 Colleague Survey 2013 Pulse Survey 2013 Colleague Survey 2014 Pulse Survey 2014 Colleague Survey 2015 Best Bank for 2015 Lloyds Banking Group plc and its subsidiaries Customers Survey Key: 2015 UK Norm 2015 UK High Performing Norm

21 5 FUTURE CHALLENGES HOW THE WORKPLACE IS CHANGING 2015 Lloyds Banking Group plc and its subsidiaries

22 THANK YOU FOR LISTENING THANK YOU Lloyds Banking Group plc and its subsidiaries

23 YOUR QUESTIONS? THANK YOU 2015 Lloyds Banking Group plc and its subsidiaries

24 Lloyds Banking Group and its subsidiaries 24