Human Capital Conference
Balanced Scorecard Collaborative, Inc. 55 Old Bedford Road Lincoln, MA 01773 Tel: 781.259.3737 Fax: 781.259.3389 bscol.com
Creating an Integrated Human Capital Strategy
Beth HummelsVice President, Human ResourcesWells Fargo Home and Consumer Finance Group
1Discussion Topics
Business and Human Resources/Communications Overview Balancing Business and Human Capital Needs Overview of the Human Capital Strategy Alignment Defining Moments Key Roles Next Steps
2Wells Fargo & Company
Data as of February 2005
Community Banking
Total TMs in org = 63,981
Wholesale Banking
Total TMs in org = 14,872
Home & Consumer Finance Group
Total TMs in org = 54,430
Other Businesses
Total TMs in org = 20,925
3Home and Consumer Finance Group
Wells Fargo Home
Mortgage
Wells Fargo Home
MortgageWells Fargo Consumer
Credit Group
Wells Fargo Consumer
Credit GroupWells Fargo
Financial Wells Fargo
Financial Group
& WFSC
-Origination:-First Mortgages-Home Equity Lines -Home Equity
Loans-Servicing-ARM Loan Portfolio-Captive Reinsurance-Ancillary Products
-Home Equity Lines-Home Equity Loans-First Mortgages-Personal Loans-Personal Lines
-Trustee Services:-Mortgages-ABS-CDO-Municipals
-Servicing-Master Servicing
-Consumer Products:-First Mortgages-Home Equity Loans-Home Equity Lines-Automobile Loans-Personal Loans -Revolving Credit Lines-Credit Cards
-Retail / Commercial:-Retail Private Label -Auto Dealer Credit-Lease Financing-Receivables Lending
Group&
WFSC
-Human Resources / Communications
-Strategic Development-Government Relations -Technology
4Group Net Income Trend
2000 2001 2002 2003
32% CA
GR
CAGR = Constant Annual Growth Rate
2004
5Delivery Model
6Balancing Business Line Needs with Group Needs
7Common Where Possible, Custom Where it Counts
8Balancing Business Line Specific Needs with Group Needs An Example
9Objectives for Creating the HCFG Human Capital Strategy
To focus on human capital needs for future success To provide a framework for designing and implementing solutions To create capacity to extend quality and reach of HR/C services
10
How the HCFG Human Capital Strategy was Developed
Purposefully determined time to kick-off strategy work to ensure effective timing for our team and in context of business needs
Interviewed HCFG Business Leaders and HR/C Leadership Team to discuss business needs, priorities and expectations of HR/C
Validated Group EVPs expectations to leverage an enterprise-wide approach for HR/C services
11
12
Evolution of the Human Capital Strategy
13
Alignment To the Business Strategy
HCFG Global Programs a collaborative effort in eight areas of commonality Real Estate Secured Lending Value Chain Drive Customer Value Common where Possible, Custom where it Counts Capture $1.8 trillion opportunity
HR/C as a Strategic Business Partner Leading Change through the Human Capital Strategy Leadership Communication Tool
14
Alignment Whats Expected from HR/C
Creation of Service Level AgreementsSLA Strategy three levels Includes 9 HR/C Core ServicesConsistent template
Measure performance through Client AssessmentMeasures 9 HR/C Core ServicesAdministered to Group EVPs direct reports and two-downsBaseline assessment completed in December 2004On-going performance measured on annual basis
Shared ServiceSLA
Business Line SLA
HCFG HR/C Master Core Services
15
Alignment Understanding Where Were At HR/C Human Capital Strategy Survey
All HR/C Team MembersAdministered May 04, November 04 and May 05A way to understand HR/C climate, the status of the strategy
implementation process and effectiveness of learning tools Identify levers, strengths and opportunities
ResultsMovement from awareness and understanding to utilization and
applicationPerformance of survey results used for Learning & Growth
Perspective measures
16
Alignment HR/C Team Member Goals
Integration of Human Capital Strategy into HR/Cs Performance Management (MPP) and Incentive Compensation (ICP)
HR/C Leadership Team and their direct reports completed 2005 MPP/ICP goals by the end of 2004 linkages made to Human Capital Strategy
Cascading of MPP/ICP goals to all HR/C team members will be completed by 1Q2005 HR/C EVP
HR/C Leadership Team
All Others TMs
HR/C Leadership Team Direct Reports
17
Defining Moments
Change in leadership behavior HR/C MPP/ICP generic Human Capital Strategy goal in mid 2004 Completion of measures in August 2004 September 2004 off-site meeting with HR/C Leadership teams direct
reports new organizational structure Town Hall meetings Perception of the Strategy moved from being extra work to the work Completing 2005 HR/C MPP/ICP goal planning early
18
Defining Moments cont.
Group EVP including Human Capital objectives in HCFG ExecutivesICP Goals
Quarterly Human Capital Strategy review meetings more strategy focused and performance driven
Openness for feedback and dedication to taking action HR/C EVP and HR/C Leadership Team Assessment All HR/C Human Capital Strategy Survey (May and Nov. 2004) HR/C Human Capital Strategy and Voice of the Team focus groups
19
Key Role Business Partners
Provide feedback Convey business direction Support the design for the enterprise and deliver to the business
approach Approve shared resources to implement initiatives Move beyond awareness of Human Capital Strategy to execution
20
Key Roles - HR/C Team
HR/C EVP and Leadership TeamOwnership Accountability Results Driven Consulting
HR/C Leadership Team Direct ReportsAccountability Leadership Empowerment Consulting
Measure LeadersHuman Capital Data Experts Influence Strategy Advocates
Consulting All HR/C Team Members
Collaboration Alignment Execution Consulting Share Successes
21
Next Steps
Continuous alignment with business strategies Development and execution of Service Level Agreements Continued strategic consulting with business partners Continued development of governance systems (link to risk
management, budget development/management and project management)
Continued delivery of HR/C consulting and core services Continued evolution of the Human Capital Strategy
22
Questions
Creating an Integrated Human Capital StrategyDiscussion TopicsWells Fargo & CompanyHome and Consumer Finance Group Common Where Possible, Custom Where it CountsBalancing Business Line Specific Needs with Group Needs An ExampleObjectives for Creating the HCFG Human Capital StrategyHow the HCFG Human Capital Strategy was DevelopedEvolution of the Human Capital StrategyAlignment To the Business StrategyAlignment Whats Expected from HR/CAlignment Understanding Where Were AtAlignment HR/C Team Member GoalsDefining MomentsDefining Moments cont.Key Role Business PartnersKey Roles - HR/C TeamNext Steps