KPMG’s People Management Leader Program

People Management Leaders (PML) Background People Strategy - Employee Survey - Functional Teams/Focus Groups PML Pilots National Roll-out to Client Service Delivery and Client Service Support 2 2

PML Strategy Put performance management into the hands of the people that are the best at it by selecting the right People Management Leaders Transform the performance management process into a more robust program including career development, retention and networking Create a culture where developing the careers of our people is a high priority Improve communication channels and enhance connectivity within the firm through the formation of PML Communities Increase retention of our exceptional performers (no surprise resignations) Create an environment where non-PMLs strive to be PMLs/SPMLs Reinforce the strategic initiatives of the firm 3 3

Performance Management Impact Our Employee Survey provides insight into the impact that performance management has on employee satisfaction and turnover To assess that impact, we looked at a Performance Management Index. The index is based on the following three Employee Survey questions: Receive meaningful career guidance when I need it Management regularly provides me with timely and constructive feedback I feel satisfied with the quality of my year-end performance review discussions 4 4

Performance Management Impact Performance Management Index Rating Employee Survey Item Variance Favorable Overall, I would say this is a great place to build a career. 73 Unfavorable Overall, I would say that this is a great place to work. 72 I rarely think about looking for a new job with another organization. 64 I am paid fairly for the work I do. 58 Management enables me to balance work and personal-life responsibilities. 5 5

Top 5 Offices vs. Bottom 5 Offices Performance Management Impact  Top 5 Offices vs. Bottom 5 Offices EP Turnover -38% Overall Turnover -18% 6 6

Feedback Successes Assessment meetings have been more productive More consistent messaging Improved compliance with engagement reviews Community activities have been well received Vast majority are happy with new program; all agree with concept Challenges Time commitment by PMLs Consistency in program execution among PMLs Engaging and developing non-PML managers 7 7

What’s Different We are putting performance management responsibilities into the hands of the right people We are creating a PML/SPML role that is much more robust than the traditional performance management role including career development, work/life balance, resource management and networking We are building communities We are providing more consistent performance feedback, ratings, communications, etc. We are focusing on accountability and recognition 8 8

(AMP/ BUPIC/ Industry Leader/ Service Line Leader) The PML Structure SPMLs (AMP/ BUPIC/ Industry Leader/ Service Line Leader) SPML Community PML (Partner/MD) PML (Sr. Mgr./Director) Non-PML (Partner/MD) Counselees (Sr Mgr., Mgr., Sr. Assoc.) Counselees (Sr. Assoc., Assoc.) PML Community PML Community 9 9

PML Responsibilities Meet with counselees on a frequent basis throughout the year to discuss performance, progress towards goals, career plans, etc. Regularly solicit feedback from counselees’ engagement managers and ensure timely completion of engagement reviews Complete performance review forms/conduct performance reviews and review goals to ensure they are challenging, achievable, and consistent with our values Communicate KPMG strategy, values, and firm/practice messages to counselees Provide/assist counselees with tools, knowledge, and resources (Employee Career Architecture, etc.) Align counselees to appropriate training courses and engagements 10 10

PML Responsibilities Monitor and reinforce compliance with mandatory requirements Apply policies fairly and consistently, and take responsibility for the conduct of your counselees Integrate new hires and transfers into their PML community Maintain contact with counselees on expatriate assignments Assist counselees in the identification of appropriate mentors Conduct PML community meetings/activities Meet with SPML on a regular basis 11 11

SPML Responsibilities Identify and assign new PMLs Conduct periodic meetings to check the pulse of their SPML Community, discuss issues and communications, and share best practices Evaluate and measure performance of PMLs in their role as People Management Leaders and the overall PML process/program Ensure PMLs have appropriate tools, knowledge and resources and respond to questions/concerns Recognize and reward PMLs in their communities Conduct SPML community meetings/activities Champion PML program by emphasizing importance and supporting their PMLs 12 12

Career Guidance to Professionals Based on Individual Circumstances Employee Wants To: Stay With Firm / Function Leave Firm / Function Develop, Reward and Recognize Re-Recruit Stay With Firm / Function Leadership Wants Employee To: Career Transition Services Performance Counseling Leave Firm / Function 13 13

Monitoring and Tracking Program Success Objectives: Measure overall success of PML Program in an effort to continuously improve the people management process and overall state of the firm Monitor PML/SPML performance to ensure that the goals of the program are being met and that the right people remain in the PML/SPML role 14 14