Westpac Case Study

CEW CASE STUDIES Westpac

“CEW’s case study on Westpac is the newest addition to our series devoted to understanding how Australia’s leading organisations are moving closer to gender equality. This is an important resource for anyone who is serious about more women reaching senior leadership roles.” – Diane Smith-Gander, President, Chief Executive Women Who is CEW? To produce this case study, Chief Executive Women undertook 24 detailed interviews with the CEO, members of the Westpac Chief Executive Women is the pre-eminent organisation executive team, members of the Westpac Board, a range of representing Australia’s most senior women leaders from the employees from across the business, members of Chief Executive corporate, public service, academic and not-for-profit sectors. Women (who have been or are members of the Westpac Our vision is women leaders enabling other women leaders. We executive team, senior executives and Board members) as strive to educate and influence all levels of Australian business well as external experts and commentators. CEW has also and government on the importance of gender balance. undertaken a detailed review and independent assessment of We offer innovative and substantive programs to support and the policies, practices and outcomes at Westpac. nurture women’s participation and future leadership. This includes: • Our extensive CEW scholarships program The Leadership Shadow: • CEW’s Leaders Program, a twelve month group coaching In 2013 Chief Executive Women collaborated with the Male program attended by female executives throughout Australia Champions of Change, a group established by Sex Discrimination • CEW thought leadership (including collaborations with Commissioner Elizabeth Broderick made up of CEOs from some partners) and engagement with the business community. of Australia’s leading private and public organisations. The group is committed to changing the unacceptably low number of women What is a CEW case study? in leadership in Australia. Chief Executive Women worked with the Male Champions of Change to create a model called the Introduction Chief Executive Women has undertaken a series of case studies analysing the genuine progress made to improve gender equity Leadership Shadow, which helps leaders everywhere to listen, in organisations across Australia. This analysis has been undertaken learn and lead by understanding the impact of their personal in response to strong feedback from organisations which actions on creating gender balance. bought and used a key Chief Executive Women tool: the The model’s key elements — what I say, how I act, what I prioritise Gender Diversity Toolkit (formerly known as the CEO Toolkit). and how I measure — have been used in this case study. Australia’s oldest bank, Westpac is the first of Australia’s largest companies to appoint a woman as CEO. Since it was established in 1817, Westpac has grown to currently employ over 46,000 The Leadership Shadow people working at Westpac Group and serves around 12 million customers, across multiple brands, including Westpac Retail and Business Banking, Westpac Institutional Values, context setting, message Bank, St.George Bank, Bank of Melbourne, BT Financial Group, BankSA and Westpac repetition and emphasis • Deliver a compelling case for New Zealand. gender balance • Provide regular updates and Westpac has a strong heritage when it comes workplace. By the 1990s, and well ahead of its celebrate success to women’s participation and leadership in the competitors, the bank had appointed a number What I say of women to senior leadership roles. Jan Tannock was Australia’s first female at manager level, and Helen Lynch AM was the first Rewards, recognition, Behaviours, symbols, accountability relationships female branch and then state manager. Sally • Understand the numbers • Be a role model for an and levers; set targets My inclusive culture Herman was the first woman to lead Westpac’s • Hold yourself and your How I measure Leadership How I act • Build a top team with a foreign banking business. Bettie McNee was the team to account critical mass of women • Get feedback on your Shadow • Call out behaviours and first woman appointed as Westpac General own leadership shadow decisions that are not Counsel, followed by Ilana Atlas. When Ilana Atlas consistent with an inclusive culture moved to head human resources, she became a successor to Ann Sherry AO who had introduced a number of programs to boost female retention, How I prioritise before her appointments as CEO of the Bank of Melbourne and Westpac New Zealand (Westpac subsidiaries). Diane Smith-Gander led the Best Disciplines, routines, interactions Bank program to transform the retail bank and • Engage senior leaders directly • Play a strong role in key recruitment and also the implementation of the mergers with promotion decisions Challenge Bank and the Bank of Melbourne. • Champion flexibility for men and women

Chief Executive Women | Case Study 2015 | Westpac | 2 Chief Executive Women | Case Study 2015 | Westpac | 3 The board also reflected this diversity and had very strong culture about treating people throughout the bank well before such moves immediate focus as it was already built in to been a pioneer in appointing female directors equally and sustainably. Westpac was ahead were regarded as legitimate corporate practice. the Westpac culture and in its DNA” Gail Kelly of the curve…” Gail Kelly with Eve Mahlab AO’s appointment in 1993, and This progress and momentum resulted in an But despite this legacy and high expectations followed by Helen Lynch AM in 1997. Gail Kelly Some of this unusual legacy stemmed from array of firsts for Westpac. for more action under a new female CEO, the days when American CEO Bob Joss, who was appointed CEO in 2008 and broke several Unsurprisingly this historical solid foundation progress was slowing. As she explains, taking ran the bank from 1993 to 1999, expressed barriers as the first woman to run a large listed gave many within and external to the bank the over the role coincided with a tsunami of difficult his astonishment at the lack of women in business conditions. company in Australia. Westpac’s reputation for confidence that progress would continue — senior jobs. His query “where are the women?” inclusive leadership practices was well-founded, including Gail Kelly herself. “When I arrived in the beginning of 2008 became part of Australian business folklore. according to Gail Kelly: there were already significant priorities His successor, David Morgan, continued the “When I arrived I didn’t think [gender diversity] already on our agenda including the Global “When I arrived at Westpac, Westpac had a emphasis on attracting and retaining women was something that would require my Financial Crisis which was a big one and the merger with St George being the second really big one, and at the start of 2010 when I had really come through those two big ones. All of a sudden I stopped and looked and thought, “What’s happened? We’ve actually made no progress at all” and because we really hadn’t made any progress, there was a little bit of a sense that for Westpac that felt 1995: 2002: 2010: like we had gone backwards. And for Westpac, • One of the first • Westpac signed • First bank to pay going nowhere, is going backwards.” Gail Kelly publicly listed an agreement with superannuation on companies in ABC Learning Group unpaid parental leave It became evident that major cultural change Australia to provide in 2002 to provide for all permanent around gender had floundered. Anecdotally paid maternity leave an estimated 1,000 employees there was a perception that a number of high- new places for the profile female senior executives had moved 1998: 2012: children of employees on. Data made it clear the numbers of women • One of the first publicly at up to 30 centres • First major bank to listed companies in announce 50% targets in leadership positions at Westpac had not located around the improved, while competitors had caught up to Australia to provide paid country. for women in management paternity leave the bank’s early lead. The senior executive team 2008: • A history of high were under no illusions about the picture. 1999: representation of women on • First of Australia’s “big “I think that during the GFC, when so much of • The only Australian bank the Board four” banks to be led by a the efforts within the organisation went to with a Women’s Market unit female CEO exclusively dedicated to supporting women (as customers and business owners) to build sustainable and profitable careers. Westpac Firsts

Chief Executive Women | Case Study 2015 | Westpac | 4 Chief Executive Women | Case Study 2015 | Westpac | 5 PROGRESSPROGRESS ININ CULTURECULTURE SURVEYSSURVEYS 80% 80% Westpac’s Organisational 77% 73% 64% 66% 60% 60% 60% Leadership Shadow 54% The Leadership Shadow is a model created by CEW in collaboration with the Male Champions of 40% 40% Change group (see inside front cover). Westpac’s Leadership Shadow shows the actions taken Senior Leaders show People Leaders show across the organization to drive to gender equity. a commitment to creating a commitment to creating

20% a diverse and inclusive 20% a diverse and inclusive VALUES, CONTEXT SETTING, REPETITION AND EMPHASIS work environment: work environment: 1. Public communication of targets (40% then 50%) 2. Defining the leadership pool as deep and broad 3. Clear commitment from the top 4. Direct link to the business strategy 2010 2012 2014 2010 2012 2014

preserving our strengths, we took our eye off here, to say we need to evidence that this What I say the diversity agenda a little bit. That was matters more than ever’.” Gail Kelly REWARDS, RECOGNITION, ACCOUNTABILITY remedied and we got our eye back on the ball; BEHAVIOURS, SYMBOLS, RELATIONSHIPS “We didn’t go backwards, but you’ve got to keep 12. Accountability achieved by but I regret those few years. You can explain it moving. It’s like anything — getting deposits cascading gender KPIs 5. Group Executive sponsorship and away, but if I had my time again I’d keep pushing 13. Regular, comprehensive and repetition of key messages in a bank — if you take your focus off of it, the transparent reporting 6. Tracking and managing progression the diversity agenda because we have a hole in 14. Rigor applied to the creation, through regular ‘Talent Days’ for issue comes back.” GROUP EXECUTIVE implementation and My all senior teams our pipeline. If you take your eye off the ball you monitoring of Divisional How I measure Leadership How I act 7. Recognising and celebrating The Board also noted that Westpac’s lead on Action Plans female leadership inside and leave a hole in your cohort.” GROUP EXECUTIVE 15. Biennial Diversity and Shadow outside Westpac gender diversity had plateaued, and made Flexibility Survey: listening More evidence soon emerged. The 2010 Culture their views clear. to feedback Survey results revealed the bank was losing “If [bridging the gender leadership gap] is ground and it was the verbatim comments in a board priority, it really helps for the that survey that brought it home to Gail Kelly. management, the CEO and the organisation How I prioritise One carried particular weight: “I am not sure to get behind it because it is known that this that, as an organization, we care about this is a Board priority.” Gail Kelly issue as much as we used to”. “We have a Board that has a very strong view on DISCIPLINES, ROUTINES, INTERACTIONS 8. Senior executive sponsorship of diversity streams and Employee Action Groups “That really struck a personal chord for me this. It’s a very active Board.” GROUP EXECUTIVE 9. Innovative programs targeting development, recruitment and promotions 10. Focus on inclusive leadership development because I thought ‘wow, the moment of truth It was time for action. 11. Striving to mainstream flexibility

Chief Executive Women | Case Study 2015 | Westpac | 6 Chief Executive Women | Case Study 2015 | Westpac | 7 Targets were a public and a measurable sign of 2. Defining the leadership pool as LEADERSHIP SHADOW ELEMENT: serious intention and demanded accountability deep and broad from leaders throughout the bank. The message Westpac’s targets apply to 5,200 people was received loud and clear. leaders ranging from group executives to bank What I say managers. Although the range of job categories “Measurable targets force people to confront their choices and the decisions that they are included in the target pool was perceived by The need to refocus on women’s progress at ahead getting to 40%, now the goal has got making and ask themselves whether or not some to be too wide, the Westpac approach Westpac led Gail Kelly to announce a series of to be 50%. That was quite a bold target. It they are being successful. Targets reverse the was based on two requirements: the need to changes in strategy, practices, and appointments was unscientifically calculated, and it was burden of proof. You have to start explaining build a strong pipeline of women and to draw along with a range of publicly articulated goals. done in a speech without a lot of discussion why you aren’t at the target as opposed to from as broad a pool of positions as possible to with everybody around me. And you could explaining why somebody should have done avoid distortion i.e. where changes in the gender 1. Public communication of Targets see people’s ears pricking up...” Gail Kelly more.” Brian Hartzer composition of relatively small populations have 50% Gail Kelly’s renewed commitment to the agenda was underlined in October 2010 when she announced a target of achieving 40% women 40% in leadership roles within four years. The decision 44% to announce targets publicly was a statement 42% of the seriousness of Gail Kelly’s intent. There is 30% no stronger way for a CEO to communicate her 40% commitment than making an announcement 20% to the market: reaching out to employees, 37. 5% shareholders and competitors simultaneously. PROGRESSPROGRESS Supported by widespread media coverage as 35% 10% well as internal communications, the very clear AGAINSTAGAINST statement about targets set the ball rolling for a renewed push. When the 40% target was TARGETSTARGETS reached in 2012, Gail Kelly went further and announced the aspirational target of 50% by 2014 2017. This was a first for Australian business. 2013 “We nailed the target and then in 2012 I 2012 upped the ante and said right – two years 2011 2010

Chief Executive Women | Case Study 2015 | Westpac | 8 Chief Executive Women | Case Study 2015 | Westpac | 9 a disproportionately large positive or negative “The gender diversity target created an the business and demonstrate right people possible people you want the deepest and impact on perceived progress towards targets. amount of noise, mostly with male employees — right role.” GENERAL MANAGER broadest talent pool. Anybody who consciously This focus on ‘substantive’ progress favours saying ‘does that mean I’m going to be or even sub-consciously excludes potential The rationale for better diversity was consistently those inclined to a long term perspective rather discriminated against.’ But that disappeared talented people from the pool is foolish in the quickly because Gail was very vocal and present spoken about by the top team as a commercial than seeking short term gains from a small extreme.” GROUP EXECUTIVE and reinforced her view on meritocracy.” need rather than a fairness agenda. number of high profile female appointments “The talent pool is small in Australia. We GENERAL MANAGER at a senior level. Two strong business reasons for improvement can’t limit it even further by eliminating pools “We did cheeky things like say ‘well if it’s a were articulated. First, diversity of experience of people.” “Bank Managers are a large part of the GENERAL MANAGER 40% target of women it’s a 60% target for and appreciating different ways of creating population and it’s a key leadership role for us.” Third, leading in diversity was positioned as men.’” GENERAL MANAGER value was thought to produce better results. GROUP EXECUTIVE building a strong market reputation for the “We don’t [feel the need] when talking about “My starting point when talking about diversity “We had just been through the strategy which bank with significant competitive advantages. male shortlists [to interject] ‘with merit’. It’s is to say, “this is a business issue.” It might involved establishing the bank manager role “The fact that we set a goal of 40% women a given we want the best person for the role.” be a happy coincidence that there are social as a key manager role, a real business leader in management is increasingly getting known GROUP EXECUTIVE justice outcomes as well, but actually you can role.” GENERAL MANAGER in professional circles as being something be totally commercial about this and say that 4. Direct link to the business strategy distinctive about Westpac… it helps increase “A deep population was chosen in order to a more diverse and inclusive workforce means Westpac’s chance as a preferred employer. enhance the pipeline but also to avoid small One of the first steps taken by Gail Kelly and we can get better quality people working for Imagine what the benefits will be when we hit changes looking like big changes.” HEAD OF HR & Corporate Affairs Executive Manager us. It means we make more thoughtful and 50%.” Brian Hartzer DIVISION Christine Parker to reboot action on women insightful decisions and therefore do better was appointing a Head of Diversity — a role 3. Clear commitment from the top over time.” Brian Hartzer The message about the business case for that had existed under former CEO David diversity was consistent and supplemented “I’m a trader. So I understand diversification There was no shortage of scepticism from Morgan, but once vacated had not been re-filled. better than anybody from a business perspective. by the latest data and feedback on what was within and outside the bank about the push to Rachel Slade, a strong business manager from It reduces my risk. I can think quite happening in the organisation to avoid any meet targets. Media commentary queried the a line role, was chosen to fill this senior lead- dispassionately and academically about how I relapse to a ‘set and forget’ mentality. A good commitment to the targets and whether they ership position. want a diverse workforce.” GENERAL MANAGER example involved a finding in the 2012 culture would have much impact on the composition The seniority sent a strong message about the survey showing there was still basic ground to of senior ranks. Backlash from male employees Second, ignoring or failing to integrate 50% of cover, as Gail Kelly recalls: priority of the function as a part of the core centred on potential unfairness from ‘favouring’ the educated talent pool in Australia was seen business strategy. “In answer to the question “is it equally easy women. To counter those suspicions, both as an unacceptable risk particularly for future for a man or a women to be promoted?” men “The goals need to be deeply anchored in our capability. informal and formal communication was needed were saying “absolutely! And women were value set; they need to be aligned with the and one of the most effective immediate “This isn’t an issue about having women in saying, “no”, in certain pockets and cohorts… business DNA.” GENERAL MANAGER rebuttals came in the form of a strong and your workforce—it is about having the best so you can say right, we have a blockage, a consistent message from Gail Kelly. “You’ve got to demonstrate the benefits to people in your workforce. To get the best cultural blockage, let’s make sure we now run

Chief Executive Women | Case Study 2015 | Westpac | 10 Chief Executive Women | Case Study 2015 | Westpac | 11 a workshop to find why men think it is all fine But you get to unlock what the signals are plans in place for all senior women at of Influence Awards” in partnership with and why the women don’t. Of course the men and keep on listening.” General Management level and one level below. the Australian Financial Review newspaper to might then say, its reverse discrimination. These “People Days” are held not just at the recognise and profile influential women in Executive General Management level, but Australia across a range of sectors. The bank cascaded down into Divisions, giving senior also launched an internal Westpac Women LEADERSHIP SHADOW ELEMENT: leaders an opportunity to role-model inclusive of Influence awards program, identifying and leadership. showcasing female achievers internally, and providing sponsorship and career development 7. Recognising and celebrating female How I act opportunities. leadership inside and outside Westpac In 2012 Westpac launched the “100 Women Cultural change only occurs when senior the organisation. leaders demonstrate visible leadership on “It’s almost political in nature. One almost LEADERSHIP SHADOW ELEMENT: gender equity, and so the observed behaviors has to behave like a politician as in “Just of the Group Executive were critical to driving keep saying it.” You have to keep hammering momentum. the point.” GROUP EXECUTIVE 5. Group Executive sponsorship and What I prioritise There were also formal structures through which repetition of key messages the senior leadership team demonstrated “Leaders set the culture. No matter how commitment to improving diversity at Westpac. Westpac’s renewed focus on women was member of the Executive Team sponsors a much momentum you have bottom up you’ll Gail Kelly chairs and the full Executive Team sits supported by a range of new programs and diversity stream and its associated ‘Employee hit a ceiling if you don’t have momentum from on a Westpac Group Diversity Council, which practices to remove barriers and support Action Group’ (known as an EAG). Each the top.” GENERAL MANAGER meets three times a year to review statistics, women at all levels of the bank with emphasis EAG focuses on an agenda directly or Gail Kelly, her Executive Team and other senior strategy and agree priorities. on levers that delivered strong visible results. indirectly related to diversity (Women in leaders needed to reinforce their commit- Leadership, LGBTI, Flexibility, Accessibility, 6. Tracking and managing progression 8. Senior executive sponsorship of ment through casting a “Leadership Shadow”: Cultural Diversity, Indigenous, Prime of Life through regular ‘Talent Days’ for all senior diversity streams and Employee Action using their behaviour to role model and set (50+) and Youth). EAGs are action-oriented, and teams Groups standards for the entire organisation. For Group Executives are given scope to drive many senior leaders, the discipline required to The Executive Team also formally focused on The power of Group Executives direct engagement Westpac’s strategy and execution in their continuously and proactively position Westpac’s the pipeline of female leaders during Westpac’s in diversity has delivered results, reflected area and a formal structure where they have mission on gender was not always an easy quarterly “People Days”. A key part of the agenda by large jumps in employees’ perceptions of a strong voice and can show authentic fit, but being ‘on message’ was essential for was a comprehensive discussion about key senior leadership commitment and support commitment. In many cases through the EAG, creating and maintaining momentum across talent and retention risk with detailed action in the 2014 Diversity and Flexibility survey. Every Group Executives provide the additional resources

Chief Executive Women | Case Study 2015 | Westpac | 12 Chief Executive Women | Case Study 2015 | Westpac | 13 and funding required to deliver on specific Move” and “Women at Westpac” are available 10. Focus on inclusive leadership I was an external candidate.” BANK GENERAL events or programs. to many women throughout the bank. development MANAGER

Personal sponsorship has been essential to In November 2014 Westpac launched a new Westpac has also identified the importance of 11. Striving to mainstreaming flexibility the success of the EAGs in impacting change program called “Equilibrium” which is aimed investing in management capabilities to support Flexibility in how and where work is done is an and these powerful signals have reverberated at finding mid-management women who have diversity and has recognised that better increasingly essential element of work practice, throughout the organisation. leadership skills are required to support and proved themselves as great leaders from and is recognised inside Westpac as a crucial sustain improved gender diversity. A range of “Sponsorship ensures each GE has some skin other sectors who are interested in switching enabler of gender diversity. For Gail Kelly it programs reinforces the link between leadership in the game. It creates a bit of competitive to financial services. The initiative offers represents an essential lever to drive change skills, the creation of inclusive teams and tension.” HEAD OF DIVISION participants a one year development program for women and men in the organisation. to help them make the conversion to banking. understanding the value of diversity in all “Accountability for supporting a stream has aspects of the business. “We have now accompanied that 50% target made a real difference.” HEAD OF DIVISION “I’m really excited about it [Equilibrium]. with an extraordinary focus on flexibility. Sometimes the pool of women who have “Gender inclusive leaders are usually just the 9. Innovative programs targeting It is a big part of the key to unlocking the interest or capabilities in running a business best leaders full stop. None of those great potential of people in the workplace and it’s a development, recruitment and promotions have been streamed off to other industries, leaders say ‘I’m going to lose as a result of personal passion for me. I talk about it a lot. The drive for results was strong so it was not financial services. So we need to address this desire to increase the numbers of senior A workplace operating on the basis of essential the senior team prioritised diversity our sourcing strategies.” Brian Hartzer women leaders.’” CEW Member/Former Westpac empowerment, to design roles such that efforts, and played a strong role in programs executive people can incorporate the elements of affecting recruitment and promotions. Westpac An example of progress is that managers what’s in their life.” Gail Kelly offers a suite of development programs throughout the organisation are getting better According to the 2014 Culture Survey, 63% targeted specifically at supporting women at at identifying key female talent within Westpac of employees are using flexible work options. various stages in their career. It also tracks and creating opportunities to enable them to While this was a very high proportion, the whether women are participating in existing develop and flourish. Looking beyond traditional form of flexibility can range from flexible leadership development programs to the same pools for potential candidates for progression or compressed hours, part-time, job share, extent as men. has had a tangible impact. working from home regularly or occasionally These include “Making my mark”, a three- “I moved to Head of Brands. I had never and purchasing extra leave above the standard month program where junior women articulate worked in marketing or branding but I worked four weeks a year. The survey also revealed specific career objectives and get one-on-one for an organisation that spotted ambition and that 89% of employees believe flexible working coaching to help achieve them. “Women Leading talent and gave me a big people management would be beneficial to them within the next @Westpac” is a program targeted at senior role to fast track my career.” HEAD OF DIVISION three years. Although there is clearly a high women. Employee networks, mentoring and “For many of the roles I’ve been in my CV demand for flexible work opportunities, leaders sponsorship structures such as “Women on the wouldn’t have even made it on the long list if agree that there is much to be done to main-

Chief Executive Women | Case Study 2015 | Westpac | 14 Chief Executive Women | Case Study 2015 | Westpac | 15 stream flexibility as a legitimate practice. Not very. Well ahead of most.” GROUP EXECUTIVE and measured like any other KPI with rigor metrics started getting tracked. This was new and consistency. for us.” HEAD OF DIVISION Some leaders noted that there are still “I’m frustrated that we still have so much old people leaders at Westpac who simply do not school thinking inculcated in the whole of “Having diversity in Scorecards makes a “For the first time we had clear metrics around the number of women in leadership believe that flexible arrangements can work in Australian society and that’s reflected at difference, but not in the material sense that Westpac. But I’m excited by the fact that we it will profoundly move anybody’s bonus. roles. The data was presented to me. That is the long term, especially in a high performing already have a brand reputation for sustain- There are a lot of factors, of which this is one. useful for people who rely on data. It prompted organisation with demanding roles. Indeed ability and flexibility. It helps us attract However, when something is in your scorecard widespread acceptance that “I need to do my there have been incidences where individuals talent. But I think we are still only part of the you’d be rather silly not to take it seriously.” bit.” GENERAL MANAGER try out permutations of part-time arrangements way there.” GROUP EXECUTIVE Brian Hartzer At the business unit level, a HR generalist sits and wind up stopping because they are unable “A senior male direct report wanted to work “If you want to influence change in an within each unit and HR business partners meet to reduce their workload to match the nine-day fortnights. He stopped doing that a organisation you have to think about the at least monthly with their General Manager reduced hours. year later. He said ‘I may as well get paid for behaviour you reward. It is important to call or Group Executive to discuss progress on “How integrated is flexible work at Westpac? the ten days because I’m doing it anyway.’” out, in every way you practically can, that diversity figures. I’ll give you an absolute and a relative answer. GENERAL MANAGER this is the behaviour you want, and then to “The HR role at a senior level is very much a reward it. I am a big fan of putting diversity partner with the CEO to make things happen. metrics in scorecards.” GROUP EXECUTIVE LEADERSHIP SHADOW ELEMENT: So they have a very loud voice at the table.” 13. Regular, comprehensive and GENERAL MANAGER

transparent reporting “HR are the “checkers”. If there is a senior What I measure The core elements of the diversity strategy at role that has opened up, I absolutely get Westpac are rigorously measured and reported. a call from HR saying ‘your pool looks like Gender diversity metrics are tracked by a this… What can you do about it?’” GENERAL MANAGER Nothing is left to chance at Westpac. Because diversity was included as a ‘soft’ or non-financial team of statisticians and progress is reported public targets for gender equity have been set item. Gail Kelly then cascaded this down monthly to the business and quarterly to the 14. Rigor applied to the creation, a rigorous approach is taken to measurement through the organization, to her own Executive Board. implementation and monitoring of Divisional and accountability. team and beyond, which focused senior leaders’ “It’s about constant checking and testing. Action Plans 12. Accountability achieved by cascading minds and influenced their behaviour. Once Every month we report our women in leadership Following the setting of targets, HR team gender KPIs from the top down again, this role-modelling sent a powerful statistics. We equally look at the exits as well members work with business managers to Diversity is also fully integrated into leaders’ signal to the rest of Westpac. It was the first as those coming on and promotions.” GROUP develop Diversity Action Plans which detail Key Performance Indicators (KPIs). The Board diversity KPI to be put in the Scorecard at EXECUTIVE action needed to achieve the goals. This is an sets the CEO’s Balanced Scorecard and as part Westpac. As a result, the issue became seen as “After the targets were set, each month ongoing process that occurs annually and is of the re-invigorated focus on women, gender non-negotiable: gender diversity was tracked middle management‘s women in leadership reviewed and refreshed through the year.

Chief Executive Women | Case Study 2015 | Westpac | 16 Chief Executive Women | Case Study 2015 | Westpac | 17 “Initially many of the Action Plans were numbers. The Diversity Survey is carried out structured so that HR was accountable for every two years, and gives senior leaders a everything. That’s not a plan - that’s somebody chance to hear individual voices and identify who has outsourced their responsibility. It where investment should be targeted. For an Getting to 50% can’t be that HR is doing it all. The leader has to overview on progress made at Westpac on take it on. The conversation has changed from this measure from 2010 – 2014, see ‘Progress ‘HR you have to drive this’ to ‘Leaders you in Culture Surveys’ on page 6. are responsible for this.’” GENERAL MANAGER “You may think you know but you actually “Success is when we stop talking about it First, it is clear that some divisions of the bank A core element of the Action Plans was to need to hear…. and you need to listen. The because we’ve got a balance and it is just have not made as much progress as others. It change recruitment patterns. [diversity] survey in 2010, and then in 2012 part of everyday. Success is the day a leader is essential to identify and address the lack of [had shown] huge progress, but still saw that walks into a room and the leader’s gender is “I called all of our recruitment partners women in some pockets of the organisation. there were pockets of resistance, pockets unremarkable.” GROUP EXECUTIVE directly and briefed them as to what our Improving mobility between different parts of where people just couldn’t get through.” expectations are. Part of that was making “Success for me is when every single person the bank will be an important component to Gail Kelly sure they had senior women on their panels has, and believes they have, equal opportunity.“ achieving success. and also that every short list for a senior role There has been continued focus on the GROUP EXECUTIVE “We still are stuck in silos. Taking people out of had a women on it.” GROUP EXECUTIVE perceptions of men and women around Westpac achieved its target of 40% women different units would be good. We don’t move gender equity. In the 2014 Diversity survey 15. Biennial Diversity and Flexibility in leadership two years early (reaching 42% talent well across the organisation.” GENERAL Westpac found men gave slightly lower scores, Survey: listening to feedback by 2012) and has now reset the target to 50% MANAGER suggesting an improvement in men’s under- by 2017. The dedication to reaching this goal Second, the pool of women with the right Although the numbers of women in senior standing of the biases and challenges that reflects a strong Westpac ethos, Gail Kelly banking and financial services experience leadership roles has continued to steadily women face. The gap in perceptions is still wider points out: gained at the right level is restricted. Westpac climb, Westpac uses its biennial ‘Diversity & than Westpac would like particularly in the must remain constantly focused on identifying Flexibility Survey’ as a feedback mechanism, middle management ranks which we know is “At Westpac the rigor is extraordinary. And Westpac does that very well. If Westpac sets ways to attract women to the banking industry which supplemented its understanding of the a critical time for many women. its sights on something we set out to go out at all levels of their career which is why the and get it. We get the whole organisational Equilibrium program could be pivotal. framework and architecture that must sit “If we fail in the emerging space, the pipeline — if around it.” we rely on existing cohorts — we won’t make it.” While leaders are confident in the organisation’s GENERAL MANAGER momentum, it is apparent that a number of Third, Westpac needs to focus specifically on challenges will need to be addressed if Westpac areas where there are few women in leadership. is to reach its goal. There has been much success over the past

Chief Executive Women | Case Study 2015 | Westpac | 18 Chief Executive Women | Case Study 2015 | Westpac | 19 few years, but a lot of the movement has As Gail Kelly steps down as CEO in early 2015 been at the lower levels of leadership. There she also recognises this as an area for further is growing recognition that more emphasis attention but says the ingredients for future must be focused on senior ranks. increases in executive levels and in line Next steps “Westpac has made some great progress at management appointments are in place. the GM- 1,-2,-3 level (i.e. Bank Managers up to “I am also very aware of the criticism as well. ‘Head of’ roles). But the 90 or so GMs, GEs & But I am not defensive about it. We have a great EGMs are still male dominated - that’s where stable team… we have done the hard yards with Progress towards meeting the ambitious 50% them. He will probably put his mark on it by there needs to be progress. Westpac hasn’t this excellent group of general managers and target will bring some challenges which the making some key appointments, that’s the cooked the books; they have genuinely made I would expect that over the next two or three leadership team is well aware of, particularly best way he can make his mark on it.” Gail Kelly progress.” GENERAL MANAGER years I have absolutely no doubt that you will given the lessons of the past and the reality Brian Hartzer has made it clear that progress “The challenge at the senior level is more have two or three women, who will be ready about the number of women required. and the investment needed to support this about turnover and the fact that the numbers (a couple of them are ready now), to take on “What would stop Westpac from achieving shift will continue particularly at the top. of roles aren’t as large and that the experience opportunities.” Gail Kelly 50%? I suspect if it doesn’t happen the reason “We need to get more women into line roles, required is more specific. At the lower levels would be that we just eased off a bit. But revenue generating roles. Traditionally a lot of you can take more risks and provide lateral The steady increase of women in management bear in mind for us to get to 50% by 2017 we women have come through the organisation development opportunities. At the senior levels at Westpac is a core legacy of Gail Kelly’s tenure are going to need to recruit more than 50% through professional services or functional your ability to take risks on people for your as CEO. women into leadership roles. That in and of specialisation. An element of this is our benefit or for theirs is more constrained.” Brian itself presents challenges and what signals sourcing strategies.” Brian Hartzer Hartzer does that send if men go into the minority of appointees?” GROUP EXECUTIVE Will the 50% target be reached under his stewardship? Brian Hartzer’s response is The groundwork established under Gail Kelly unequivocal. — the targets, data crunching, diversity strategy and shift in attitudes - provides a solid “We will achieve that goal. History will recall base for her successor Brian Hartzer, who she that we achieved 50% by 2017 and I know believes will soon make an impact on the senior because I’ll write that history.” Brian Hartzer executive ranks.

“You should watch this space with Brian. As opportunities emerge they will fill these roles... There is such good talent at the General Management level. I think it is just a case of the right opportunity at the right time with

Thank you to those who have assisted with the ABOUT THE AUTHORS preparation of this CEW Case Study for sharing Heather McIlwain is the Executive Director of Chief and particularly: Executive Women. She supports the CEW President, o CEW Business Engagement Chair Kathryn Fagg, Council & CEW‘s sponsors and manages CEW’s who guided development and launch of the Case dedicated team on a day to day basis. Heather Study joined CEW after senior executive HR roles o Gail Kelly, and her executive team members developing leadership capability and leading interviewed for the CEW case study for being so strategic organisational change, and a career in generous with their time and open about their corporate law both here and overseas. experiences & insights Annika Freyer is an independent consultant with o The following individuals interviewed for 10 years of experience working in both the public the purposes of the Case Study: Brian Hartzer, and private sectors. She has worked for the US Gail Kelly, Christine Parker, Rob Whitfield, John government, the United Nations Development Arthur, Alex Holcomb, Alastair Welsh, Bernadette Programme, multiple international NGOs focusing Inglis, Gai McGrath, Melanie Evans, Paul Verscheur, on public policy and most recently at McKinsey Rebecca Lim, Jane Counsel, Julie Rynski, Shenaz & Company. Annika has worked in the field of HR Khan, Larke Riemer, Rachel Slade, Suzi Hullick, diversity in Australia since 2011, focusing on Ann Pickard, Carolyn Hewson AO, Ewen Crouch, gender diversity in leadership. Helen Lynch AM, Ilana Atlas & Sally Herman o Bonnie Brown, CEW team member

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