Chartered puts talent on track to fulfilment

Standard Chartered group chief executive Mervyn Davies early this year outlined his agenda to transform the bank into a performance-driven institution and to improve return on equity (RoE) to 20 per cent.

In the drive to achieve these objectives, some operations have been centralised, while others are being re-engineered and integrated. These initiatives have helped to deliver cost reductions and operational efficiencies.

Under his stewardship, the world's largest emerging-markets bank has been re-positioning itself strategically while growing organically and through acquisitions. The initiatives undertaken have made a positive impact on the balance sheet.

Interim results announced in August showed that RoE has improved to 12.8 per cent from 9.3 per cent in last year's second half, and the growth in a number of Asian and Middle Eastern markets has exceeded expectations. Group revenue grew 6 per cent and costs have declined 2 per cent over last year's first half.

Acquisitions also made stronger contributions to overall performance.

Human resources executives have taken the cue and are sourcing performance-oriented men and women and equipping the crew with the relevant skills and knowledge, so that the ship may sail steadily in fair and foul weather towards its strategic objectives.

The area head of human resources, Hong Kong and China, Mohan Kumar, points out that the HR strategy is aligned to the objective of making Standard Chartered a bank known for strong performance. He recently arrived in Hong Kong, having served in Dubai and India.

Mr Kumar says that when hiring graduates as management trainees, the bank considers their 'will to lead and ability to perform', factoring in the emphasis on delivering solid business results.

Apart from the growth generated through acquisitions, including Nakornthon (Thailand), Grindlays (India), and the Chase consumer business in Hong Kong, vast new business opportunities are emerging. Grindlays and Chase were the two largest acquisitions in the bank's history.

In July, Standard Chartered opened its first consumer banking branch in Puxi, Shanghai, and made a strategic US$50 million investment in Bank of China (Hong Kong).

The bank's association with China dates from 1858, when it began business in Shanghai. As the mainland's banking sector opens up, Standard Chartered is positioned to be one of the leading international bank in China.

Long-term opportunities are immense. The bank already has seven branches and six representative offices in China.

Mr Kumar says that, considering the scale and scope of business growth, it is crucial to source professionals who demonstrate the drive to develop themselves and who embrace the bank's five core values - courage; responsiveness; be international; creative; and trustworthy. This year, 37 management trainees have been hired in Hong Kong and China, in addition to about 100 graduates for various roles.

Management trainees undergo a two-year training period and rotation to various units in business streams such as consumer banking, wealth management, wholesale banking, technology and operations, and support functions (that is, risk management, HR and legal compliance).

'They normally fast-track into leadership roles,' Mr Kumar says.

Once a year, management trainees across the group gather in Singapore for an induction and career-development workshop.

Those who intend to join as management trainees can apply online.

Candidates are screened by the system and short-listed before they are selected by business managers for suitability and tested for their capabilities and interviewed by HR to identify the ideal fit.

Whether they are management trainees or not, Mr Kumar explains that Standard Chartered employees are encouraged to believe that their destiny is in their own hands, citing an observation by management guru Peter Drucker, in reference to knowledge workers.

'Our philosophy is that we all have our strengths,' Mr Kumar says, noting the argument that exceptional managers believe in the unlimited potential of individuals.

'You drive your career, we support your aspirations,' Mr Kumar says, pointing out that organisational learning and mentoring as well as technical and leadership training assist motivated employees to develop their careers.

'Every process is designed to help individuals to learn to grow.'

Assignments to positions in overseas markets and different business units also allow employees the chance to develop and progress. These experiences build up their expertise and help enrich their perspectives.

The organisation also benefits from such employees who add different flavours in terms of solutions to various banking challenges.

Mr Kumar says performers destined for the top rungs are identified through a combination of performance evaluations based on measurable targets and assessment of potential, as well as feedback from line managers.

'Past performance is a good guide to future potential,' he says.

To support the career progression of employees effectively and efficiently, the HR function is being re-engineered, Mr Kumar points out. Information technology is being integrated into planning and management. Transactional work is being moved to a processing hub in Chennai, India.

In June, an HR management system, Peoplewise, was launched allowing users to update their personal records, enrol for e-learning, view pay slips, apply for internal job openings, request leave and carry out other transactions, Mr Kumar says. This electronic platform, once fully ready, will help managers to access HR policies and important data, among other things.

'We want to establish leading HR practices. This is also one of our competitive advantages,' Mr Kumar says.

An online feedback mechanism, Q12, has also been set up for employees to share their observations anonymously. Feedback obliges managers to discuss appropriate plans and respond to concerns and suggestions.

In a performance-driven institution, he says, individuals should understand that they can 'go as far as their talent takes them'. He advises potential candidates to demonstrate they can be business partners and create value, believe they have what it takes to excel in the roles they choose to fit into, and be conscious of varying regulatory as well as cultural and social issues in the many countries in which the bank operates.

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