Quality Assurance in Training and HR Development in

Quality Assurance in Training and HR Development in the European Financial Service Sector Athens, 15 th February 2008 Focus on Banca CR Firenze Gian Luca Miceli - Head of HR Dept. - Banca CRF

Banca CRF Group - History 1829 - Cassa di Risparmio di Firenze was founded 1992 and 1998 - Became a Joint-Stock Company and the Banking Group was established 1999 - 2000 - Partnership with SP IMI e BNP Paribas and quotation in the Stock Exchange 2000 - 2002 CR Civitavecchia, Orvieto e Mirandola joined the Group, the shareholding in Findomestic Banca increased to 50% 2003 - Reorganization of Sales Division 2004 - CR della Spezia joined the Group 2005 - Investment abroad: acquisition of Banca Daewoo (Romania) 2007 - New agreement: Intesa Sanpaolo acquires the majority of Banca CR Firenze Direzione Risorse – Coordinamento Risorse Umane 2

Banca CRF Group - Figures A growing network in other regions of central - northern part of Italy and in East Europe 7 ü ü ü 1 44 56 Sales Division: 567 branches (at 30/06/2007) ü ü 1. 047. 447 customers (at 30/06/07) 336 41 63 Financial Advisors: 60 branches (at 30/6/2007) Market share at 31/03/07: - Tuscany: Loans 9, 81% - Deposits 15, 32% Euro 41, 14 bln total deposits (at 30/6/2007) Euro 15, 5 bln loans (at 30/6/2007) ROE : 11, 4% (at 30/06/2007) Direzione Risorse – Coordinamento Risorse Umane 3

Banca CRF Group - Stock trend Since its IPO, Banca CR Firenze has been one of the best performers compared to MIB BANKS and S&P MIB BANCA CR FIRENZE 400 * 350 300 250 200 150 MIB BANKS 100 S&P MIB 50 0 2001 2002 2003 2004 2005 2006 18. 10. 2007 * Normalized trend Direzione Risorse – Coordinamento Risorse Umane 4

HR as a strategic asset Increase our competitiveness in the market, pursuing the creation of value in the mid – long term Know Lead Empower the Human Capital of the Group as a strategic asset in achieving business goals Direzione Risorse – Coordinamento Risorse Umane 5

HR as a strategic asset - Starting Point Centrality of competencies/skills Development of a HR management culture Shared Responsibility Direzione Risorse – Coordinamento Risorse Umane 6

Managing HR : an Integrated System Roles Job Families Competency Model Work level Management System Direzione Risorse – Coordinamento Risorse Umane 7

Managing HR : an Integrated System - Roles Functional view (organizational chart – by functions) Professional view (competency model) Direzione Risorse – Coordinamento Risorse Umane 8

amily 1 Managing HR : an Integrated System Job Families cross the organization and match roles with comparable characteristics (mission and competencies), though they belong to different functions: Division A Dept. A 1 Dept. A 2 Dept. A 3 (Roles) Job Family 2 Division B Dept. B 1 Dept. B 2 Dept. B 3 (Roles) Direzione Risorse – Coordinamento Risorse Umane 9

Managing HR : an Integrated System Work level 5 Work level 4 Work level 3 Work level 2 Role n • • • Role 3 Role 2 Role 3 • Role 1 • Work level 1 Family 2 • • Role 3 Role 2 Role 1 Role 3 Role 2 • Role 2 Role 1 • Role n • • • Family 3 Direzione Risorse – Coordinamento Risorse Umane Family n 10

Managing HR : an Integrated System Management System Professional Development Recruitment and Selection Training Management Measurement and Evaluation End of employment Motivation Direzione Risorse – Coordinamento Risorse Umane 11

Managing HR : an Integrated System Management System • • Recruitment and Selection • • Normative Technical Behavioral Managerial • Professional Development Training Wage policy Individual discretionary awarding system Short run incentive system Long run incentive system Benefit management system Management • • Professional Roles Competencies and knowledge profiles Qualitative-quantitative staff planning Internal Recruitment Career paths Measurement and Evaluation End of employment Motivation • • • Direzione Risorse – Coordinamento Risorse Umane Performance evaluation Competency assessment Knowledge assessment 12

Focus on the training process Mission n “The Training Department arranges individual training programs in order to support the employees professional development”; n “The Training Department ensures professional training, and guarantees projects planning and organization". Contribute to the development of skills and knowledge, planning and organizing learning projects in order to achieve the business goals. Direzione Risorse – Coordinamento Risorse Umane 13

Focus on the training process The National Collective Agreement « The Company promotes professional training - to employees with a no fixed-term work agreement - according to the criteria of transparency and equal opportunity, as following : § “a training project" of no less then 24 hours per year to be attended during the working hours; § “a training project" of 26 hours per year, 8 of which must be attended during the working hours and the rest 18 not remunerated to be attended after hours, also through “self training” using information technology» . Direzione Risorse – Coordinamento Risorse Umane 14

Focus on the training process Methods n n n n Classes E- learning (F@D) Coaching Conferences Meetings in the Working Unit Area meeting Stage/Training on the job Topics n n n n n Skills Process Credit Finance Law/fiscal Foreign languages Marketing and management control New employees training Office automation (ECDL) Products and services Direzione Risorse – Coordinamento Risorse Umane 15

Focus on the training process 2007 - Results * * Employees with a fixed-term work agreement and employees who resigned or retired during 2007 are included Direzione Risorse – Coordinamento Risorse Umane 16

Focus on the training process Latest Trends Direzione Risorse – Coordinamento Risorse Umane 17

Focus on the training process 2007 Results Direzione Risorse – Coordinamento Risorse Umane 18

Focus on the training process Latest Trends Direzione Risorse – Coordinamento Risorse Umane 19

Focus on the training process Needs Analysis Planning courses Goals and Processes Quality System • • • 2003: ISO 9001 Certification of Training Division (DNV) 2006: 1° Certification confirmation Every year: Maintenance Organizing courses Results Evaluation Direzione Risorse – Coordinamento Risorse Umane 20

Focus on the training process - Quality System § can be defined as a set of policies, processes and procedures required for planning and execution in the operational area of the organization; § integrates the various internal processes within the organization and intends to provide a process approach for project execution; § enables the organization to identify, measure, control and improve the various processes that will ultimately lead to an improved performance. Direzione Risorse – Coordinamento Risorse Umane 21

Focus on the training process - Quality System Goals n To improve the processes refining the operational steps in order to increase efficiency and efficacy; n to share responsibility and involve all the professionals in the process; n to spread a culture of innovation and continuous improvement; n to obtain a competitive advantage according to the certification trend that has been implementing in the whole System. Direzione Risorse – Coordinamento Risorse Umane 22

Focus on the training process - Quality System Processes n Primary process – management, planning and organizing training courses; n Supporting process – administration management, management of intercompanies training participation, internal resources management (HR and infrastructure), external resources management (consultants and trainers), documentation and Quality records; n Improvement process – control and measurement, internal inspection, compliance management, corrective and preventive actions, data analysis. Direzione Risorse – Coordinamento Risorse Umane 23

Focus on the training process - Quality System The Process and its circularity Planning Organizing Needs analysis Results measurement Direzione Risorse – Coordinamento Risorse Umane 24

Focus on the training process - Quality System Needs Analysis / Results measurement Operational Tools § § § § Knowledge assessment Competencies assessment and internal recruitment Results analysis of performance evaluation Managers satisfaction questionnaires Learning needs questionnaires Auditing Reports Participants satisfaction questionnaires Knowledge test on normative compulsory training courses Direzione Risorse – Coordinamento Risorse Umane 25

Focus on the training process - Quality System Planning courses Organizing courses Operational Tools Quality procedures § § § Training plan according to each Role/Job Family Individual training plan Special training projects (on Internal Customers demand) Qualifying training courses (obtaining certification/licence – Perseo, BD, etc) Inter-Companies training courses Stage/training on the job § § § Organizing training courses in Banca CR Firenze training center Organizing training courses in the structures of other Banks of the Group Organizing courses at outside companies Direzione Risorse – Coordinamento Risorse Umane 26

Focus on the training process - Quality System “Benefits” § Process standardization: use of standard forms and methods to file shared documents; § Transparency of process and visibility on the different operational areas; § Individual Responsibility: identifying one referent for each part of the process; § Innovative planning: thanks to the time gained through the standardization of activities; § Improving customers satisfaction: thanks to a continuous control of feed-back. Direzione Risorse – Coordinamento Risorse Umane 27

Quality Assurance in Training and HR Development in the European Financial Service Sector Athens, 15 th February 2008 Focus on Banca CR Firenze Gian Luca Miceli - Head of HR Dept. - Banca CRF