Westpac Banking Corporation ABN NEEOPA FORUM OCTOBER 2013 MAINSTREAMING FLEXIBILITY AT WESTPAC GROUP

Flexibility at the Westpac Group and our 2017 strategy To grow in a targeted way and ensure we remain strong, we need to: Be agile to meet our customer needs Mainstream flexibility for everyone Show leadership and best practice Focus on productivity and sustainability Pull together as one team 2 Making agile and flexible working a widespread and successfully embedded best practice is a key business priority for our 2017 Strategy

2012 Diversity & Flexibility Survey Results on Flexibility For Westpac Group employees, being able to work flexibly is a key priority 62% of employees participate in flexible work arrangements, up from 44% in Fewer flexibility requests rejected (from 11% to 7.5%). Largest increase in uptake is working from home and irregular flexible work practices. Most agreed that people working flexibly can deliver on customer needs and supported continuation of flexible work arrangements. 82% of people indicated they would want to use some form of flexibility in the next 3 years, compared with a projection of 58% in Of this, Over 50% of employees would like to utilise flexible hours (current uptake 25%). 3

What is flexibility? 4 What does it mean to you?

Common Flex Options at Westpac Group 5 Some options currently being undertaken by people at the Westpac Group are: Part time Job share (sharing the responsibility for one role between two people) Flexible hours (flexible start and finish times and taking some hours off during the day and working them back in later) Flexible leave days Compressed hours or work week (e.g. 10 hour day for 3 days per week) Mobile working regularly (work away from the office) Mobile working occasionally (work away from the office) Career break/extended leave (for up to 12 months) Additional leave Flexible career (being able to ramp up or ramp down career) Purchased leave

The World is Changing 6 The nature of our workplace and how and when we work is evolving. From the time flexibility was introduced to now, the drivers behind flexibility have changed In the beginning Recognition that flexibility was needed for some people to participate in the workforce. Part time and working from home for working mums Recent years The need for flexibility extended to working parents, mature age employees and those with carer needs of any kind Flexibility has extended to a broader range of options and often a mix of a number of methods of working flexibly The benefits of flexibility are being recognised - for people, the business, customers Now and into the future People want to work flexibly for any reason – at all levels and all ages, regardless of carer needs Flexibility is becoming a standard business practice Flexibility will be key to productivity, sustainability and performance

Our Mainstreaming Flexibility toolkit guiding principles 1.Flex is an individual construct 2.Approach flexibility at a team level 3.The opportunity to request flexibility is for everyone 4.Tools, policies and processes should be easy to use and implement 7

Flexibility as a standard business practice 1.Flexibility is a tool for increasing business performance. 2.Everyone, at all levels, has an opportunity to engage in flexibility. 3.All forms of flexibility are engaged in. 4.Flexibility is engaged for any reason. 5.There is a culture of flexibility that attracts and retains talent. 6.There is a proactive approach to flexibility that is evident in both the business strategy and in management behaviour. 7.Flexibility is evident in both formal and informal processes. 8.Those who engage in flexibility progress in their careers. 9.The approach to flexibility is dynamic, adapting to the changing needs of the individuals and the organisation. 10.Flexibility is based on trust. Evidence of quality flexibility and careers as a standard business practice 8 The Westpac Group proactively sponsored industry leading research to drive and inform the flexibility agenda, with the Diversity Council Australia. The study identified 10 essential elements for embedding flexibility Source: Diversity Council of Australia, Get Flexible: Mainstreaming Flexible Work in Australian Business (2012)

The Top 10 success factors in implementing flexible work at the Westpac Group 1.Treating each request individually 2.Involving the team 3.Finding the wins and sharing stories 4.Creativity and innovation 5.Establishing clear expectations and responsibilities 6.Trust 7.Openness and dialogue. 8.Relationships and connection 9.Responding to changing needs 10.Full use of technology 9

What is your experience? What are the main barriers to flexibility? What specifically occurs? What are the common comments or complaints? 10

Skill versus Will Skill: Implements flexibility effectively Innovates - review and improve 11 Will: Awareness of the need for flexibility Engagement in the benefits In looking at your experiences, where do the barriers lie?

Skill versus Will – what development and support is required? 12 Do your leaders and people require assistance with ‘how’ to mainstream flexibility or does it require a shift in mindset or ‘will’? High level of awareness and engagement and low level of skill What to do: guide on ‘how to’ implement flexibility High level of awareness and engagement and skillfully embedding flexibility What to do: coach to stretch goals and encourage innovation Low level of awareness and engagement and low level of skill What to do: coach for a shift in mindset and direct on process High level of skill and low level of awareness and engagement What to do: coach for a shift in mindset and focus on benefits Will ‘want to’ Skill ‘can do’ Adapted from Max Landsberg’s Skill Will Matrix

A coaching process - using GROW to coach leaders on the journey What is the ideal outcome for: The individual? You? The team? Stakeholders? The business? Customers? If there were no obstacles, what would the ideal outcome be? 1. Goal What is the real, underlying issue? What is the cause of that? What other reasons could there be for this issue? What are the needs of the person involved? What would (person) say about the situation? If that issue was resolved, would this problem be solved? 2. Reality What options are there to achieve this goal and solve the problem? What have you already tried? What else could you do? What could you do that has not been tried before? What are the possibilities? 3. Options Given the outcome to be achieved, what is the best option here? What combination of options might be appropriate? What support or resources do you need? What are the risks? What might we need to think of in advance? When will we follow up? How will you review success? 4. Wrap Up Questions you could ask A clearly defined goal in line with business strategy Outcome Challenge assumptions and a true understanding of the current situation Sufficient consideration to options available and selection of the best solution Agreed actions and follow up Things to look out for Jumping to solution mode. Putting up obstacles - focusing on the challenge Not knowing the ideal outcomes of all parties No link to strategy Making assumptions about cause-effect. Lack of understanding of the needs of the individual or team member Not having sufficient information Sufficient consideration to options available Not thinking outside the square – sticking to old ways Anything that might get in the way of follow through Any risks that might need to be managed What you could say Lets first look at some ideal outcomes so we know what we are working towards In order to understand the gap between where you are now and where you want to be, lets have a look at the current situation Rather than jumping straight into solution mode, lets have a look at what options you might have so we know we are taking the best course of action Lets look at where to from here, what we need to do and how we’ll make sure you have the support you need

Where to next? Design the journey: –From and to –Step by step Be a part of the journey: –Measure the benefits –Adjust for success 14

Questions and wrap up 15 Thank you