Trends in Banking – SWP San HQ

Cycle GOUVERNANCE ET CAPITAL HUMAIN

Captal Humain & Transformations Digitales

Jean-Claude LE GRAND Directeur Général des Ressources Humaines du groupe l’Oréal

Mardi 4 septembre 2018

0 Agenda Conclusionpar Agnès Touraine et échanges Questions Témoignagede J humain du capital Propos gestionsur la liminaires de cenouveaucycle objectifs Accueilpar Agnès Touraine: Accueil • • PhilippeCavat Jean - Michel Caye Michel des participantsdes - – C LeGrand Odgers Berndtson - BCG 9 9 05 9h 8 8 8 h h h h h 55 35 35 30 00 1

by 2018 2018

• Reconnaissance de l'écriture • Robotique physique • Reconnaissance d'images et vidéos • Robotique logicielle • Reconnaissance faciale • Robotique système complexes • Reconnaissance de la voix

• Interface en langage naturel • Analytique descriptif by

• Traduction machine • Analytique prédictif 2018 • Analyse de sentiments • Analytique prescriptif

3 Copyright © L'Intelligence Artificielle vit aujourd'hui un troisième décollage 1er décollage : 1956 1er hiver : 1974-80 2ème décollage : 1980-87 2ème hiver : 1987-1993 • Découverte des • Reconnaissance des • Progrès technologiques • Déception des potentialités de l'IA limites technologiques • Systèmes experts investisseurs

Un 3ème décollage depuis 20 ans, une nette accélération dans les années 2010

1997 2011 2012 2017 2017 Défaite de Kasparov Watson gagne le jeu Google fait la Libratus gagne un Alphago bat le face à Deep Blue Jeopardy! démonstration du tournoi face aux champion du monde véhicule autonome meilleurs joueurs de de Go

poker mondiaux

by 2018 2018

% des 80% répondants Consumer Insurance

Transp. / Logistics HC Equip. / Travel IT & Tech. Serv. Retail Chemicals Banking Utilities Un impact fort 60% Energy Pharma / Ent. / Media Process Biotech Construction anticipé par Cap. Prof. Serv. Public Sector Manufacturing Markets Telco l'ensemble des Agriculture Automotive 40% Dans 5 ans secteurs à un Pharma / HC Equip. / Biotech Serv. Aujourd'hui horizon de 5 Logistics Retail Consumer Chemicals Constr. IT & Tech.

Effet important sur lessur important Effet 20% ans Prof. Serv. Cap. Markets Manufact. Telco Transp. / Travel Ent. / Media Banking Automotive Energy Agriculture Insurance % des Public Sector 0% Utilities répondants

Effet important sur l'Offre 2018

Substitution Augmentation

La machine réalise la tâche à la place de L'humain réalise la tâche, aidé / assisté en l'humain cela par la machine

des robots physiques ou logiciels conseiller client 2018

Tâches restantes Tâches restantes Nature tâches à faible VA à forte VA Augmentables Pas d’impact

Substituables

Répartition des tâches de de tâches des Répartition l'emploi selon leur nature leur selon l'emploi

Emplois susceptibles Emplois à faible VA Emplois recentrés sur Emplois renforcés Emplois peu impactés d'automatisation rendus moins pénibles leur valeur ajoutée • Accompagnement • Risque uberisation, • Compétences • Collaborateurs plus • Apports IA vers de nouveaux déqualification distinctives performants, plus ponctuels

emplois valorisables pertinents, etc. The Boston Consulting Group, Inc. All rights reserved. Ex. opérateur back- Ex. ouvrier industrie Ex. contrôleur Ex. conseiller Ex. artisan office bancaire de process financier clientèle, analyste

7 Copyright by© 2018 Logique substitutive Logique rationalisante Logique capacitante Le rôle du manager évolue manager du Le rôle en charge par l'IApar en charge Rôle d'appui pris progressivement technique 1 de Manager apportée par la donnée la Rôlequi transparence change avec intermédiaire Manager • • • • Acteur banque/ Acteur développementd'équipe, gestion motivation, sens, apportant manager distributeur et "sachant" du manageur Disparition déc. entretien construction, Acteur parpermise ladonnée nécessairemoins rendu sera intermédiairemanager du transversalité " de rôle Le ère reporting - contrôleur du travail, auprofitdu du contrôleur ligne assu , / entretien jan. 2018 jan. entretien cascading par transparencela personnel " et de et " 2017 seséquipes / ressourcepour / entraineurcoach Versun manager 8

Une priorité stratégique pour Seule une minorité d'entreprises à seulement 20% des dirigeants commencé à adopter l'IA

Dirigeants : votre entreprise fait-elle de l’IA une Dirigeants : quelle est aujourd’hui la situation de priorité, un sujet stratégique … ? votre entreprise en matière d’IA ?

37% % oui

des dirigeants déclarent que 20% 26% leur entreprise utilise déjà

des solutions d'IA

by 2018 2018 A l’heure actuelle Dans les 5 ans à venir

9 Copyright © Source: strategicworkforceBCG Planning projects Talents Casse Digitale Transformation = - tête ( transformation Competences) Jobs Jobs changes of of expected 60 % Productivity (AI,Digital 30% Gains ) highly skilled Digital Digital jobs 15 New, % 10

re-skilling scenarios

by 2018 2018

Similarity Job Similarity Job Job Title score Zone Job Title score Zone Immigration and Customs Inspectors 0.97 3 Excavating and Loading Machine and Dragline Operators 0.89 2 Rail Yard Engineers, Dinkey Operators, and Hostlers 0.96 2 Floor Layers, Except Carpet, Wood, and Hard Tiles 0.89 2 Tank Car, Truck, and Ship Loaders 0.96 2 Glaziers 0.89 2 Fence Erectors 0.96 2 Brickmasons and Blockmasons 0.89 2 Helpers--Roofers 0.89 2 Cooks, Private Household 0.96 3 Plasterers and Stucco Masons 0.89 1 Bridge and Lock Tenders 0.96 1 Shoe Machine Operators and Tenders 0.89 2 Mates- Ship, Boat, and Barge 0.96 2 Automotive Glass Installers and Repairers 0.89 2 Conveyor Operators and Tenders 0.96 1 Printing Press Operators 0.89 3 Jewelers 0.96 3 Tapers 0.89 2 Sailors and Marine Oilers 0.96 2 Janitors and Cleaners, Except Maids and Housekeeping Cleaners 0.89 2 Carpet Installers 0.95 2 Slaughterers and Meat Packers 0.88 2 Forest Firefighters 0.95 2 Fabric and Apparel Patternmakers 0.88 3 Light Truck or Delivery Services Drivers 0.95 2 Logging Equipment Operators 0.88 1 ExamplePrecious Metal Workers job transition options (with0.95 high3 similarityHelpers--Painters, Paperhangers, scores) Plasterers, and Stucco Masons 0.88 1 Crossing Guards 0.95 2 Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop 0.88 1 Pressers, Textile, Garment, and Related Materials 0.95 1 Foundry Mold and Coremakers 0.88 2 Motorboat Operators 0.88 2 Tile and Marble Setters 0.95 2 Fiberglass Laminators and Fabricators 0.88 2 Radio Operators 0.94 3 Couriers and Messengers 0.88 2 Postal Service Mail Carriers 0.94 2 Job Title Mechanical Door Repairers Similarity score 0.88Job Zone2 Meat, Poultry, and Fish Cutters and Trimmers 0.94 1 Agricultural Technicians 0.88 3 Textile Knitting and Weaving Machine Setters, Operators, and Tenders 0.94 2 Pilots, Ship 0.88 3 Gaming Change Persons and Booth Cashiers 0.94 2 Forest Firefighters Painting, Coating, and Decorating Workers 0.95 0.88 2 2 Cleaners of Vehicles and Equipment 0.93 2 Sewers, Hand 0.87 2 51 job transitions Public Address System and Other Announcers 0.92 2 55 job transitions Light Truck or Delivery Services Drivers Cooks, Fast Food 0.95 0.87 2 1 Nursery Workers 0.92 2 Travel Guides 0.87 3 Rock Splitters, Quarry 0.92 1 Cooling and Freezing Equipment Operators and Tenders 0.87 2 have a high PreciousMachine Feeders Metal and Offbearers Workers 0.92 2 Music Composers and Arrangers 0.95 0.87 3 3 have a medium Tree Trimmers and Pruners 0.92 2 Dining Room and Cafeteria Attendants and Bartender Helpers 0.87 1 CrossingManufactured Guards Building and Mobile Home Installers 0.92 2 Waiters and Waitresses 0.95 0.87 2 1 similarity score Refuse and Recyclable Material Collectors 0.87 2 similarity score Gaming Managers 0.91 3 Farmworkers, Farm, Ranch, and Aquacultural Animals 0.87 1 Athletes and Sports Competitors 0.91 2 Food Batchmakers 0.87 2 Pressers,Hydroelectric Textile, Plant Technicians Garment, and Related Materials0.91 3 0.95 1 (>0.90) Locomotive Firers 0.86 2 (>0.85 & <0.90) Commercial Divers 0.91 3 Adhesive Bonding Machine Operators and Tenders 0.86 2 Textile Winding, Twisting, and Drawing Out Machine Setters, Operators, and Tenders 0.91 2 Tile and Marble Setters Parking Lot Attendants 0.95 0.86 2 2 Helpers--Brickmasons, Blockmasons, Stonemasons, and Tile and Marble Setters 0.91 2 Sheriffs and Deputy Sheriffs 0.86 3 PostalDoor-To Service-Door Sales Workers, Mail News Carriersand Street Vendors, and Related Workers 0.91 2 Dishwashers 0.94 0.86 2 1 Driver/Sales Workers 0.91 2 Manicurists and Pedicurists 0.86 2 Roof Bolters, Mining 0.91 2 Septic Tank Servicers and Sewer Pipe Cleaners 0.86 1 Meat,Earth Poultry, Drillers, Except Oiland and Gas Fish Cutters and Trimmers 0.90 2 Animal Breeders 0.94 0.86 1 3 Barbers 0.90 3 New Accounts Clerks 0.86 2 Upholsterers 0.90 2 Musical Instrument Repairers and Tuners 0.86 3 Cutters and Trimmers, Hand 0.86 2 Bailiffs 0.90 2 Furniture Finishers 0.86 2 Fabric Menders, Except Garment 0.90 1 Pipelayers 0.86 2 Elevator Installers and Repairers 0.90 3 Transportation Attendants, Except Flight Attendants 0.85 2 Taxi Drivers and Chauffeurs 0.90 1 The Boston Consulting Group, Inc. All rights reserved. Coroners 0.85 3

Makeup Artists, Theatrical and Performance 0.90 3 by Motorcycle Mechanics 0.85 3 Dredge Operators 0.90 2 Landscaping and Groundskeeping Workers 0.85 1 Derrick Operators, Oil and Gas 0.90 1 Print Binding and Finishing Workers 0.85 2 2018 Costume Attendants 0.90 2 Commercial Pilots 0.85 3 Subway and Streetcar Operators 0.90 2 Crane and Tower Operators 0.85 3 Farmworkers and Laborers, Crop 0.90 1 Highway Maintenance Workers 0.85 2 Note: Truck drivers part of Job Zone 2

12 Copyright © Source: O*NET (Occupational Information Network database), Burning Glass Technologies, BCG analysis, World Economic Forum analysis Example: pathways for Secretaries and Admin. Assistants

Average wage ($K)

100 x Similarity score Agents of 0.85 Artists, Performers, & Athletes 80 Logisticians Business and Office and Business and 0.92 Financial Operations Administrative Financial Operations $52K Support $87K Job zone 4 $49K Job zone 4 Business and Job zone 3 60 Financial Operations Meeting, $78K Convention Job zone 4 Production, and Event Planning & 0.88 Planners 0.91 Expediting Clerks Spa 40 Secretaries Managers and Admin. 0.91 Assistants Concierges 0.90 Personal Care and Office and Service 20 Administrative Personal Care and $40K Support Service Job zone 3 $36K $31K

0 by

0 1 2 3 4 5 2018

Note: Average time indicates maximum of average additional education and experience needed to perform job transition Average time (years)

New ways Digital Digital Advanced Risk and . . . of working Marketing Development Analytics security

Digital Transfor- Social Media-/ Digital Product Business Intelli- IT risk … mation Manager Community Mgr. Manager gence Specialist

Traffic Web analytics Scrum master UX /UI specialist Technical security ... acquisition spec. specialist

Digital branding Omni-channel Data architecture Emerging threats Agile coach specialist specialist specialist specialists

Mobile interfaces QA dev. engineer ......

specialists

...... 2018

Indicative estimate – outside in view Digital headcount1 breakdown by company

1 788 1 518 992 877 284 246 243 188 141 108 108 4

2% 4% 4% 2% 0% 1% 5% 0% 4% 0% 0% 0% 11% 0% 5% 27% 30% 26% 29% 31% 40% 32% Robotics 50% 62% 75% Digital dev 17% Adv Analytics 47% 75% 42% 89% 52% 52% 0% 1% Digital Market 15% 43% 56% 0% Digital bus 22% 0% 0% 3% 9% 2 3% 2% 43% New WoW 29% 2% 3% 1% 4% 3% 0% 25% 17% 15% 5% 17% 3% 0% Cyber security 14% 7% 5% 12% 1% 0% 6% 1% 1% 0% 0% 0% 0% 4% 1% 5% 4% 0% 0%

CIB CIB

digital staff1 in % of base 1.03% 3.8% 1.52% 1.75% 0.92% 1.57% 1.7% 2.3% 2.68% 2.2% 3.10% 0.14%

# employees on LinkedIn 173 373 40 299 65 476 50 068 30 903* 15 698* 14 218 8 312 5 258* 5 015 3 488 2 795* The Boston Consulting Group, Inc. All rights reserved. 1. Positions related to one of the 7 digital areas: Robotics, Digital Development, Advanced Analytics, Digital Marketing, Digital business, New way of working, Cyber-security by

2. Ways of Working 2018 Note: outside in analysis run on LinkedIn in April 2018 * Headcount based on the LinkedIn analysis taking in account different names of the banks in different countries

Buy Talent Make Talent Rent Talent Where: 64 digital hotspots identified and scored

Top 64 of the global digital hotspots Digital Agile 80 Units @scale 70 60 50 Digital Work 40 Culture environment 30 20 . . . 10 Massive Flat 0 reskilling organizations 1 programs supply of digital talents demand for digital talents

Start up environment 2018 2018 General business environment

16 Copyright © Talent Talent Employee Average Average US Companies rank 2014 rank 2018 loyalty rank tenure (years) pay (USD k) Apple 2 1 422 1.8 120 Make 5 2 464 1.8 100 4 3 462 1.1 107 Berkshire Hathaway 4 449 1.5 54 or Buy Starbucks 5 348 2.8 27 3 6 212 3.9 58 Talent? 7 370 2 117 8 49 2.6 55 9 35 6.1 54 10 378 2.5 81 Check-list best companies for Netflix 11 469 1.2 110 top talent Facebook 12 481 1.1 117  Have a meritocratic and 13 120 4.8 45 transparent culture 14 278 3.2 63  Strive for diversity and 15 272 3.3 106 inclusion 8 16 278 3.2 64  Build strong people leaders 17 138 4.7 88  Adopt new ways of working 18 194 4 51 and agile leadership 21 187 4.1 69  Create segmented value Home Depot 22 270 3.3 28 proposition (top talent, 23 243 3.7 95 digital talent, international 24 278 3.2 35 talent...) 25 150 4.6 77  Willingly plan and shape Goldman Sachs Group 1 27 378 2.6 86 General Electric 30 77 5.1 92 The Boston Consulting Group, Inc. All rights reserved.

workforce composition by Procter & Gamble 10 34 26 6.7 89 35 29 6.4 93 2018

Source: www.fortune.com/worlds-most-admired-companies/list

www.payscale.com/data-packages/employee-loyalty/full-list 17 Copyright © New talent segmentation: beyond the 2%, "Smart Creatives" Professionals more differentiation, segments of one, yet holding all parts

together

Contingent Talent Crowd 2018

Opportunity to pursue personal interests at work thanks to the Independence 20% time program

Prime locations for each Google office, where "fun" and "relaxing Inspiring Working times" are largely represented • No dress code (T-shirts and shorts are common) Environment • Beach Volley courts • Massages area…

Higher Pay Highly competitive salaries & compensation packages

Highly adapted work environment, including • Flexible hours Flexibility • Parking lot for mothers-to-be

• Transgender-friendly restrooms EVP Attributes EVP

Diversity: 11 different community groups driving policy at Cultural Diversity Google

Several initiatives with impact in society Meaningfulness • Google.org: prominent charity organization • Google Serve: paid volunteering week

19 To From Leaders "Adaptive" New Developer Strategic Talent Inclusive Agile 20

Customer Output Rapid Cross-boundary Adaptability in Empowering focus orientation experimentation collaboration uncertainty teams

Focus on Command & From: Black box Perfect solution Silos Detailed plans excellence control

Working Transparent Fail fast Course Servant To: product Cooperation

(MVP) by 2018 2018

by 2018 2018

Greater insights and efficiency in strategic people & succession planning through consistent and easy to use tools Targeted & efficient recruiting process based on use of video & adv. analytics and reduced admin costs Talent Strategy & Planning Predictive analysis supports information on retention risks and Attract & skill mismatches (allowing targeted Recruit initiatives for leaving people / people that do not fit)

Exit Engage & HR Analytics & Easier and more interactive Affiliate KPIs performance management processes (i.e. establish ongoing feedback culture by use of Improved collaboration tools push standardized & real-time feedback) engagement & serve as innovation trigger across departments; design Identify & of targeted EVPs through specific Develop & Assess target group information via analytics Promote

(Apps, online class rooms, E- by changes in HR; achieving corporate learning) for broader reach and more goals by responding to business in 2018 individual and efficient raining offering advance through predictive analytics

Source: BCG project experience

7 10 11 Leviers Motivations Dérailleurs

Comportements Les forces du Les motivations qui risquent de le dirigeant du dirigeant faire dérailler

Modélisation de l’adéquation d’un

du rôle et de sa compatibilité avec by 2018 2018 la culture de l’organisation

Employee lifecycle A Be attracted B Apply C Recruit D Decide E Train F Perform G Develop HLeave

Data available • Universities & • All CV data • Assessment • Cross-offer • Business unit • Performance • Mandatory • Reason for schools in focus • Application center/ • Decision worked in review trainings leaving • Career events channel interview • … • Tasks discussions participated • Time spent at conducted • … performance worked at • Semi-annual • Individual company • Budget per along • Trainings goals com- trainings • Career history event dimensions attented pletion check participated • Next step • Advertisement • Assessment • … • Upward • Rotation • … in media and center/inter- feedback program company- view grades grades completed owned • Hiring decision • … • Leadership publications • … model • … • …

What capabilities do our Selected recruiting Which university profiles decide how? best leaders demonstrate? analytics possibilities Who performs weak in interviews but strong at work? And vice versa? Which profiles perform best and why? Plus external data:

Source: BCG project experience 2525 Building capabilities for HR

1/3 HR experts 1/3 PhDs in analytic fields Deep HR expertise Able to develop and run different kinds of Experts on specific topics experiments, studies, etc., (e.g., compensation and that enhance impact of HR benefits)

1/3 Ex-strategy consultants

actually works in different functions by 2018 2018 Great problem solving skills Source: BCG CPA study 2010

27 Questions et

échanges

by 2018 2018