Danske Bank’s EBM Approach Lars Stensgaard Mørch Head of HR Member of the Executive Committee Danske Bank

 
The uniqueness of Danske Bank's HR EBM approach is that we, at group level and in every business unit, get a firm empirical/data-based understanding of the key strategic HR areas, and what works well in the business units and what doesn't. A substantial amount of relevant HR data is included in the HR analysis report that all business areas get. It is unique, individually developed for each business area, based on a common platform which allows for benchmarks against peer groups within Danske Bank Group and, to some extent, benchmarks outside the Group. It is easy to identify what actions need to be taken and we have, in our section of HR centres of excellence, specialists and consultants that can assist the management in addressing these action points.

In the individual HR analysis report that each business unit receives is a structured approach towards "intelligent facts". By this I mean combined data on e.g. attrition versus top and low performers; employee commitment versus top and low performers; and bonus awards versus top and low performers. Further, I will emphasize that we have research done, through cooperation with the Centre for Corporate Performance at a local business school, which, for example, shows a clear coherence between employee commitment and financial results, by combining and analysing at the individual employee level (a population of approximately 7,000 advisors in the branch network). Among other results we saw coherence between absences and employee commitment.

Each year at year-end, all business units receive a detailed report with HR key figures on the six focus areas of our Group HR strategy. The report is discussed between HR and the CEO of the business unit to ensure a strong link between the business challenges and the HR situation. Based on the conclusions from the dialogue, an HR action plan and goals are developed to guide the work on HR in both business unit and HR support functions. Furthermore the action points are communicated to all employees in the business unit to ensure commitment and confidence in management's focus on the HR challenges. Local HR business partners are deployed to implement and communicate the HR action plan in decentralised units. By this process we are able to see developments in strategic HR measures over time, and benchmark to other business units of the Group.

We have over the last couple of years received very supportive feedback from the heads of the business areas for the fact-based approach to HR; it gives them a strong foundation for HR improvements aligned with their business needs. Further and more importantly, we have improved on virtually all key figures.

 
Related Material

PowerPoint slides: Evidence Based Management in HR at Danske Bank . 2006.

 
About Danske Bank

Danske Bank is the largest bank in Denmark and a leading player in the Scandinavian financial markets. The Danske Bank Group – which includes Danske Bank (Denmark), BG Bank (Denmark), Fokus Bank (Norway), Danske Bank Sweden, Northern Bank (Northern Ireland), and National Irish Bank (Republic of Ireland), and a number of subsidiaries – offers a wide range of financial services, including insurance, mortgage finance, asset management, brokerage, real estate and leasing services. In Denmark, Norway, Sweden, Northern Ireland and the Republic of Ireland, the Group serves 3.5 million retail customers and a significant part of the corporate, public and institutional sectors. It also has a large number of international corporate clients, particularly in the northern European markets. Some 850,000 customers use the Bank's online services.

Posted on November 1, 2006

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