ANZ - 2021 Annual Report

Our people COVID-19 has undoubtedly changed the way we work. In moving to our new ways of working we have been conscious of how we can continue to build and maintain ANZ’s culture while giving our people the opportunity to work flexibly and continue doing their best work. We now have many flexible working modes: workplace first, where employees perform their work from an ANZ workplace most or all of the time; blended, where employees spend some time in the week in an ANZ workplace; and remote first, where employees perform their work remotely, occasionally visiting an ANZ workplace. The vast majority of our employees’ roles , now and in the future, fit within the blended mode. Coming together in our ANZ workplaces plays an important role in how we learn and grow and helps employees who are new to ANZ to build their networks and develop an understanding of our culture. Enabling the majority of our people to work in a blended way gives them the best of both worlds: the opportunity to structure their working life in a way that provides greater flexibility to work from home, and to be in the office for the critical, and often intangible, benefits of developing our culture, building social networks and learning from – and mentoring – colleagues. CULTURE We continue to develop and embed a culture focused on delivering great customer outcomes, making things simpler and ‘always learning’. This work is underpinned by our purpose and values. This year, we finalised the design of a new culture and behaviour framework. Developed with input from across the Group, the framework complements our values, building on and respecting our past, while orienting us towards the future. To deliver our purpose and strategy, we need to: create opportunities by bringing in the best ideas from inside and outside ANZ to create long-term value for our customers and the bank; deliver what matters by executing well on the things that matter most; and succeed together by engaging the right people, listening to and challenging each other. As we head into the new financial year, we will start to see this come to life, with a focus on ensuring it is real and relevant to our people and reinforced through our learning programs, people processes and systems. We have made considerable progress in promoting the importance, understanding and awareness of our risk culture. Our target risk culture is founded on embedding those risk behaviours and practices aligned to the five principles of: living the purpose; risk management accountability; risk management execution; risk management effectiveness; and proactive risk management. Plans and actions are in place to further embed risk culture maturity. These include the insights from our first risk culture survey. Refer to page 51 for further detail on the risk culture survey undertaken this year. CULTURE REVIEWS AND ASSESSMENTS Our Talent and Culture team delivers data-led insights – qualitative and quantitative – that are actionable and help drive sustainable cultural change. Multiple listening tools such as surveys, focus groups and interviews enable the business to respond to employee feedback on our culture. Our Enterprise Steering Culture Group (ESCG), chaired by the CEO and whose membership includes other members of the Executive Committee, comes together twice a year to discuss key cultural themes, strengths and areas for improvement. This year, the ESCG has reinforced our ongoing commitment to employee wellbeing and listening, as well as our learning strategy – prioritising the reskilling and upskilling of employees in critical capabilities required for a digital future, and building an ‘always learning’ culture. They oversaw a significant jump in our speak up culture scores which were a key area of focus. Our Internal Audit (IA) culture team provides independent assessments of our current organisational culture. The assessments are designed to: inform Board and management by providing insights as to how organisational culture is enabling the bank’s purpose and strategy; support the Board in meeting community and regulatory expectations (e.g. the Australian Prudential Regulation Authority Prudential Standard CPS 220); identify and focus on cultural root causes of issues; and strengthen the bank’s overall approach to strategic delivery and risk management. Once an assessment is complete, a report on cultural themes, including underlying issues and related impacts, is provided to the business. The business then develops an action plan in response to any identified cultural challenges. The plan is monitored and an actions effectiveness or reassessment is completed to determine how effective it has been in shifting towards the desired culture. In 2021, IA completed 19 culture reviews, of which nine were reassessments. The reassessments have highlighted leadership accountability as key to building a better bank and creating a culture that will deliver what matters for our customers, employees and shareholders. In 2018 a culture review identified a business area within the bank experiencing issues with inconsistent leadership, resulting in a reluctance amongst team members to work effectively together, raise issues and challenge constructively. Following the assessment, the leadership team developed an action plan focused on improving leadership capabilities and engagement through focusing on aligning as a leadership team and initiatives to embed desired leadership behaviours (e.g. using the leadership 180 survey tool that gathers feedback on how well a leader is demonstrating our values and leadership behaviours) supported by development plans; and implementing engagement plans to listen, provide transparency and connect with staff. Our reassessment of the business revealed a 25% increase in staff ’s perception of leadership and a 26% increase in their comfort to raise concerns and challenge constructively. HIGHLIGHT 29 ANZ 2021 Annual Report

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