Salz Review - Wall Street Journal

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127 Salz Review An Independent Review of Barclays’ Business Practices a diversity of experience, for example time spent working for a regulator or in a different division or country. Developing Barclays’ Future Leaders 10.26 Whether home-grown or recruited externally, leaders set the tone which drives or condones business practices. During the period covered by this Review, leadership development was inconsistently implemented and possibly under-regarded. The bank appears to have had neither a Group-wide view of what ‘leadership’ was nor a Group-wide understanding of who were the various leadership cohorts. Unsurprisingly therefore it does not offer a systematic or coherent leadership development programme across the Group. Instead it is fragmented, with individual business units offering a variety of programmes, which differ significantly by seniority, scope and resources. Some interviewees mentioned that this reflected amongst the highest level of management a historic lack of interest in development programmes for themselves. 10.27 We were told that the bank had limited programmes in place to understand the dynamics and improve the effectiveness of its leadership teams. Developing further capability in this area should be a priority given the importance of strong leadership teams in driving cultural change and demonstrating effective behaviours to staff, especially across an organisation of the scale and complexity of Barclays. 10.28 Barclays has during 2012 recognised the need for a stronger and more coherent leadership development programme and is creating a Group-wide framework and leadership development programme, the details of which are yet to be confirmed. We are supportive of these moves, as an increased emphasis on leadership and leadership development would be helpful in encouraging individuals to consider more carefully the responsibilities that are inherent in taking on a leadership role. Focusing on a cadre of leaders will emphasise the collective and distributed responsibility of the group of leaders. 10.29 Over the period under review, we noted that Barclays’ senior managers have tended to follow career paths within a single business unit or a closely related business unit. This constrains efforts to build and reinforce a common culture, spread good practice, and break down silos across the bank. What mobility we did observe was primarily limited to transfers from the investment bank, mostly into the Group Centre or Group functions. 10.30 Our review of career paths at other leading companies with complex, global operations (both within financial services and in other industries) indicates a greater level of executive rotation between businesses than at Barclays. Some have programmes promoting mobility from an early stage in the careers of potential high fliers. There is clearly an advantage in those who are promoted to senior Group positions in the bank having an understanding of different business divisions and different geographies.
Salz Review An Independent Review of Barclays’ Business Practices 128 Recommendation 20: Developing Barclays’ future leaders Barclays should clearly identify its pool of current and potential leaders and strengthen the leadership development programmes in which they participate. These programmes should be Group-wide and embrace all business units and functions, aiding current and future leaders to develop well-balanced skills. To strengthen the role leadership development plays in creating a cohesive Group, Barclays should carefully manage mobility across divisions, functions and geographies, investing in programmes to develop well-rounded future leaders through structured rotations across the Group. Leadership promotion should include direct evidence of adherence to the values and standards and the encouragement of others to live them. Training 10.31 We found inconsistent levels of staff participation in, and satisfaction with, Barclays’ training. UK RBB appears to have some strong training programmes in place, and many staff members are required to complete a minimum number of training hours each year. UK RBB training is well attended and staff satisfaction is high. In other areas of the bank a wide range of training is available. However, there are fewer and less defined training programmes. In these businesses training is less formalised, generally not mandatory, and primarily relies on individual initiative (except for required compliance training and those on graduate schemes). Barclays’ internal employee survey supports this; less than 60% of staff in Wealth, the investment bank and Europe RBB believe they have sufficient training opportunities available. 199 In several areas of the investment bank, over 50% of staff complete no training beyond that required for regulatory compliance, diversity or health and safety. 200 In general, training concentrates mostly on technical skills, with limited emphasis placed on behaviours and values. 10.32 The investment bank’s own recent diagnosis concluded that few training and development programmes explicitly addressed conduct; that leadership education programmes with the heaviest conduct components were not delivered to all employees; that conduct and values programmes were mostly elective; that mandatory courses were either delivered electronically or in large groups; that management information systems to measure training participation and effectiveness were not robust enough; and that there was no firm-wide mentoring programme. 10.33 This inconsistent commitment primarily reflects the different emphasis given to training and development by some of the bank’s senior leaders. Senior managers to whom we spoke rarely cited training and development – even when discussing people management. We concluded that this ‘tone from the top’ sent an important signal about the priority managers and staff should give to training – evidenced by the tenuous link between training and other people management processes (for example, it appears that performance reviews rarely led to training 199 Barclays’ 2012 Employee Opinion Survey. 200 Not including staff on a formal graduate programme.
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Salz Review - April 2013
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Salz Review - Wall Street Journal

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