“Creating Value through Values”

Workshop MRH Congres – Stockholm, May 2008

Patrick Van Aeken

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Objectives

This workshop allows participants to… :

… have a better understanding of how values contribute to employee engagement, cultural change (and thus company performance)

… explore different practices for aligning values and performances

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Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

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“The best way to do is to be” (Lao Tzu)

HAVE(product)

DO(process)

BE(platform)

visibility

leverage

Results : revenue, profits,

welness,…

Behaviours

Mental models : values, beliefs,

aspirations

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The three dimensions of success

Exceptional sustainable

results

“IT” - Task

“I” - Self“WE” - Relationships

ACHIEVEMENT : business results, effectiveness, productivity

COMMUNITY : trust, solidarity, mutual

respect

ACTUALIZATION : happiness, health, flow

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Ingredients for a remarkable organization (1)

HAVE

DO

BE

Exceptional sustainable

results

IT

I WE

+

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Ingredients for a remarkable organization (2)

I (Self) WE (relationships) IT (Task)

HAVE

(Product)

Engagement

Well-being

Meaning

Happiness

Solidarity

Connectedness

Belonging

Mission accomplishment

Profitabilty

Growth

DO

(process)

Thinking

Feeling

Acting

Competency models on : Communicating Negotiating Coordinating …

Business processes on : Selling Delivering Planning, …

BE

(platform)

Mental models

Personal values

Beliefs

Culture

Shared values

Shared beliefs

Capital

Administrative, technical and economic infrastructure

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Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

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Three main era’s in the AXA history of the last 15 years

AXA conquers the worldAXA conquers the world

Rapid inorganic growth Many large international and

smaller acquisitions Becomes #1 in France through

acquisition of UAP in 1997

AXA consolidates and AXA consolidates and professionalizesprofessionalizes

2001 – 20041992 – 2000

Sell off non-core business AXA Way/six-sigma to

encourage consistency and reduction of costs

Launch of international platforms

How do we honor our mix of cultures and strategies while increasing the value of our Global organization?

What is our differentiated value proposition?

How do we satisfy customers and engage employees?

Where are the most profitable investment opportunities?

How do we bring acquisition staff into the “AXA Family”?

How do we integrate the processes of acquired firms?

How do we manage our costs more efficiently?

How do we streamline processes?

How do we give our businesses freedom to win individually in their markets?

2005 – 2012 (And Beyond)

AXA sets a global customer AXA sets a global customer centric visioncentric vision

The Strategy:

Key Questions:

Selected external growth Additional focus on organic growth

– maximizing value 2012 goal to increase revenues x2,

profits x3 and become the Preferred Company among stakeholders

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Main cultural drivers linked to these era’s

AXA conquers the world AXA consolidates and professionalizes

AXA sets a global customer centric vision

One global ambition : to become the Leader in our industry

“Everything but” principle : Everything is decentralized, except …

Scope survey

Charter describing the “AXA Management Style”, and a set of h7 corporate values

“AXA Manager” seminar organised by AXA Corporate University

AXAgrams : pictograms

Clear definition of our business approach :

Launch of a six sigma improvement program, called “AXA Way”

Scope survey

Launch of Ambition 2012 program : to become the Preferred Company of our stakeholders

Scope survey

AXA Brand Spirit project

Strategy of cultural integration

Strategy of operational excellence

Strategy of differenciation

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AXA Manager program

Objectives To familiarize managers with AXA Management Style and AXA values

To enable managers to consider their own management style and the particular improvements they wish to make

To promote the exchange of experience between managers

To help all managers to get to know AXA better

Co-facilitation by consultant and AXA Senior executive ! Program logistics

A five-day residential program, held throughout the year (4 programs every week !) at one of AXA University’s campuses in Bordeaux

Classes of +/- 20 managers, representing at least 8 countries

Highly participative pedagogical approach Impact :

Scope survey results over the years showed an important improvement in the application of AXA management principles in the workplace

“… These sessions have made our fast growth possible… They have been key in bringing people together.” (Françoise Colloc’h, director of HR, communication and Synergies AXAGroup)

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AXAgrams

28 pictograms, being a visual language : To communicate the Group’s core values and management philosophy

To promote common understanding of key business concepts among a multilingual and multicultural workforce

Used in internal communications, business presentations, training programs

Team Spirit

By unifying his team, the manager achieves results that

are greater than the sum of each individual contribution

Intrabusiness

Each business unit must be managed like a small company within the company. Under no

circumstances should the unit’s objectives prevail over those of

the company or the Group.

Innovating

In many situations we are often held back by our perceptions, by fear of the unknown and by force of habit. Finding solutions often

means deviating from the beaten track.

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AXA Way

Context : striving for “operational excellence” : Through well known Six Sigma methodology (within AXA re-named “AXA Way”) With a team of internal consultants (called “Black Belts” ; 1 % of the population) leading improvement projects in all departments of the organisation.

Process :

Benefits : Culture of “operational excellence” spread through the company A generic quality methodology culturally completely integrated Development track for talents

Selection of Black Belts

1 % for each BU

specific competency profile

Development opportunity for emerging talents

Black Belt career

30 months

3 to 4 projects /year in different departments

Integration in the business

In function of opportunities and motivation

If no solution, mandatory integration in initial BU

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AXA Business approach

A vision that encompasses : A core business : financial protection A brand name and promise : “be life confident” A set of values A responsible corporate strategy

A strategy that includes : A business model Segment priorities Geographic priorities Operational priorities

Our sources of leverage :

Developing employee competencies and engagement Strengthening executive leadership

Financial Protection involves offering our customers -

individuals as well as small, mid-size and large businesses - a wide range of product and

services that meet their insurance, protection, savings,

retirement and financial planning needs throughout

their lives. Team Spirit

IntegrityInnovation

ProfessionalismPragmatism.

Product InnovationDistribution Management

Quality of serviceTechnical excellence

Productivity

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Scope survey : from employee satis-faction to employee engagement

The Scope survey exists already for more than 15 years.

Yearly process :

Since 2006 we focus on employee engagement, through the following model : A Cognitive dimension : Think

= Belief in and support for the goals/values of the organization. An Affective dimension : Feel

= Sense of belonging, pride, attachment to the organization. A Behavioral dimension : Act

= Willingness to go the extra mile, intention to stay with the organization.

Engagement KPI of staff is integrated in performance appraisal of executives.

Engagement KPI is rising over the years.

Feel

Act

Think ENGAGEMENTFeel

Act

Think

Methodological data processing and analysis

Distribution of results and feedback Action plans

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Ambition 2012 : becoming the preferred company

To gain the preference, we To gain the preference, we need to stand outneed to stand out

from the crowd in these from the crowd in these three areasthree areas

The third is an outcome of The third is an outcome of the first two…the first two…

For ClientsCustomer Centricity

For EmployeesEmployee

Engagement

For Shareholders Value Creation

2 significant HR initiatives

PASSPORT 2012A personal and individual pluri-

annual document, helping each AXA employee worldwide to

clarify his/her contribution to Ambition 2012 and making managers responsible in

supporting their employees

.

AXA MilesBecause we were on track towards the Ambition 2012

objectives, AXA awarded every single employee worldwide with 50 bonus shares in 2007, thus making each employee an AXA

shareholder.Another 50 shares are announced for 2009 if results will be on track.

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AXA Brand Spirit : from the “land of promises to the “land of proof” (may 2008)

The new Brand Positioning : AXA, the Financial Protection Company that continuously works to prove it is worth trusting

The new signature : “redefining / standards”

Values remain unchanged…

Three core attitudes were identified in a bottom up approach : attentive, available, reliable

Which would make you proud of AXA tomorrow

If you were a customer what would make you

choose AXA tomorrow

RELIABLE (34%)

ATTENTIVE (34%)

PROACTIVE (33%)

AVAILABLE (32%)

AVAILABLE (51%)

ATTENTIVE (39%)

RELIABLE (38%)

PROACTIVE (32%)

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It pays off… : financial results 2007

AXA records solid performance in full year 2007

Underlying earnings up 27 % Ajusted earnings up 22 % Net income up 11 %

Henri de Castries, CEO :

The reported numbers reflect the combination of a strong organic growth in all our business lines, the successful integration of Winterthur and confirm that our balance

sheet is not affected by the subprime crisis

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Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

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4 subgroups questions

X

X

X

X

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Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

Page 22

Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

Page 23

Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up

Page 24

Workshop process

Brief introductionary presentation : A conceptual framework

The AXA case

Briefing for work in subgroups

Working lunch : work in subgroups

Presentations by subgroups and discussion

Break

Wrap up