Our simple, globally consistent performance management framework is based on a 'balanced scorecard' approach that assesses employees across the four categories of objectives of Financial, Customer, People and Process/Risk:
|Financial||Target financials, i.e. increasing revenue; return on investment; economic value added; improving cost and productivity; sales growth in targeted markets, customer groups and regions; market share; and reduction in direct operating costs.|
|Customer||Raising the standard of our customer experience, i.e. service standards; customer satisfaction; customer process improvement; customer attraction and retention; increasing share of wallet; product enhancement; relationship management; and cross sell ratio.|
|People||Improving the commitment, morale, growth of skills and knowledge of employees across the business, i.e. people leadership; employee commitment; employee engagement; percentage of employees with development plans; number of integrated engagements; engagement of stakeholders in other businesses; team based measures of performance; people interaction; collaboration; team player; self-development; and ability to influence people.|
|Process/Risk||Improving the way we do things and the quality we achieve and reducing risk, with a specific focus on compliance, simplification and streamlining of processes, accuracy of information and the quality of process outputs, i.e. re-engineering processes to simplify and increase efficiencies; risk and quality assurance compliance|
As part of our performance management framework, employees are also measured on how they ‘live’ the ANZ values and their standards of risk/compliance/behaviour displayed throughout the year, e.g, compliance with ANZ’s Code of Conduct & Ethics.
This framework is applied Group-wide. However, some employees in certain locations and job levels are not covered by the framework due to our obligations under relevant local industrial instruments.
Performance management at ANZ consists of three phases: Performance Planning, Performance Coaching and Performance Assessment.
In the Performance Planning phase, there is a strong emphasis on setting clear, measurable objectives that are aligned to broader business objectives and priorities. Employees and managers work together to establish performance standards that clearly articulate targets, and stretch targets that are ambitious but achievable. A key focus of this step is ensuring employees are clear on the need to live ANZ’s values at all times and the risk/compliance/ behaviour standards expected of them and how failure to meet these standards can directly impact their performance rating and performance-based remuneration.
Managers are encouraged to meet regularly with employees to coach and develop them throughout the year as part of the Performance Coaching phase. Managers are required to have a mid-year performance discussion with employees to track their progress half way through the performance year. There is also a focus on implementing development plans to ensure people have the support and learning opportunities they need to succeed in their role.
In the Performance Assessment phase, employees receive a performance review at the end of the performance year. However, many areas of the business conduct reviews more frequently than this. The performance outcomes are directly connected with reward outcomes as part of our remuneration and rewards structure.