Critical Thinking in the Financial Services Sector

1. Critical Thinking in the Financial Services Sector March 3, 2011 New York, NY Presenters: Judy Chartrand, Rupalli Thacker

2. Welcome and IntroductionsAgenda • What is Critical Thinking? • Why is Critical Thinking Important for Finance Professionals • Where does Critical Thinking Fit in the Financial Services Industry • How to Develop Critical Thinking in your Organization • RED Model • T&D Solutions • Critical Thinking University (CTU)

3. Welcome and IntroductionsOur Moderator Sean Stowers is the Director of Learning Services for Pearson Learning Solutions. He works with corporate and association clients to design and develop engaging solutions for their employees, candidates or members. Sean also served as a business development manager with Pearson’s FT Knowledge, a leading provider of training solutions to the financial services industry. He also spent four years at IBM in its Learning Services Division.

4. Welcome and IntroductionsPresenter Judy Chartrand is the Consultant Chief Scientist at Pearson TalentLens where she works extensively with corporate and consulting clients, helping them implement assessment solutions that foster employee development, team building, retention, high potential engagement, career management, and succession planning. She received an Early Career Award from the American Psychological Association for her work in the career development field.

5. Welcome and IntroductionsPresenter Rupalli Thacker is a Digital Products and Solutions Manager for Pearson Learning Solutions, working closely with corporate and association clients. Rupalli specializes in learning design, and new learning technologies. In her role as a products and solutions manager, Rupalli manages end-to-end learning solutions; and product design, and delivery. Her previous experience includes ten years in leadership skills development and four years in the elearning industry as a program manager. Rupalli holds a MA in Learning Sciences from Northwestern University and an MBA from NMIMS, India.

6. Everyone thinks, but few think critically From the C-suite to the front-line

7. Why is Critical Thinking so Critical?

8. Economy’s Shift to Service Jobs Requires More/Faster Decisions

9. And everyday we make decisions withimperfect & incomplete information.

10. Meet Jerry Is he… • Asking the right questions? • Making sound assumptions? • Making good decisions?

11. Meet Your New Employees Will they think about… • Risks? • Uncertainty/complexity? • Consequences? • The Firms Clients? • The Bottom Line?

12. 431 Employers Say New Employees Aren’t Thinking Critically

13. We Have a Critical Thinking Deficit

14. Yet It’s the #1 Workplace Skill

15. In a recent Grant Thornton Survey, 55% of respondents indicated that lack of soft skills -communication, critical thinking, problem solving abilitiesposed the most significant challenge in recruiting seasoned accounting professionals. Critical Thinking in Financial Professions

16. What are the Drivers for Increasing Critical Thinking in Financial Professions? Globalization and Geopolitical Events New Products and Business Models Shifting and Complex Regulatory Environment Increasing Savvy and Skepticism of clients ff “These drivers require a deeper, more analytical approach to training new leadership” Tony Osude, Dir. Professional Development, Assoc. of Chartered Certified Accountants (ACCA)

17. What Key Skills Do Emerging Leaders Lack? • Strategic Thinking 64% • Leading Change 56% • Ability to Create Vision & Engage Others 54% • Ability to Inspire 47% • Understand total enterprise and 47% • how different parts work together Critical Thinking Source: 2009/2010 Executive Development Trends Report http://thinkwatson.com/downloads/2009-Development-Trends-Report.pdf

18. Critical Thinking 101A Framework for Better Thinking

19. Critical Thinking Means Many Things…

20. Improving Critical Thinking, Improves Other Skills

21. Raw Material for Other Competencies

22. Critical Thinking: Base of Competency Pyramid

23. Strategic Thinking? Innovation Management? Dealing with Ambiguity? Decision Quality? ….. What are the Most Pressing Competency Development Needs in Financial Services ?

24. RED Model as a Critical Thinking Framework

25. What is the RED Model? Recognize Assumptions • Discerns facts from opinions. • Recognizes implicit assumptions Evaluate Arguments • Evaluates information or arguments, focusing on relevant, accurate information Draw Conclusions • Arrives at conclusions that logically follow from the available evidence

26. Takeaway: Kennedy changed the way he was briefed so that assumptions would be challenged early on. RED Model in Action Recognize Assumptions CIA believed • Cubans would rise up to support the effort • CIA could overthrow the Cuban • government based on past success (e.g., Guatemala, 1954) Evaluate Arguments Kennedy reviewed the plan with his closest advisors – all favored invasion. Contrary views were not represented in the inner circle. During the campaign, Kennedy had criticized Eisenhower for not being proactive with Cuba. Draw Conclusions Kennedy ordered the invasion, which was an immediate and costly failure.

27. Critical Thinking 201How to Build a Thought-Based Organization

28. Can You Really Train People toThink Better?

29. Yes, But Not Without Effort… and Practice Like golf, being good at thinking requires practice and feedback. Assessment helps you “see” your thinking so you can improve it…

30. Applications: Selection Through Succession

31. Selection/Promotion: Create Success Profiles Assess the critical thinking of successful performers to create a baseline (e.g., 50th percentile and above) Compare it against the scores of your job candidates

32. Evaluate Impact on PerformanceFinancial Services Company

33. T&D Priorities Source: 2009/2010 Executive Development Trends Report http://thinkwatson.com/downloads/2009-Development-Trends-Report.pdf

34. A Leader’s Path in Your Company

35. Addressing Level 1

36. Developing Critical Thinking: Solutions Development Report CTU

37. Critical Thinking Boot Camp Phase 1: Assessment and Alignment; 2-4 weeks prior to workshop take assessment and meet with manager to identify high priority business challenges Phase 2: Action Learning workshop (2 days); receive assessment results; learn critical thinking techniques, development an action plan Phase 3: Acceleration and Accountability; 1 month progress monitoring report out; communicate success out to organization

38. Critical Thinking Development Resources • Internally developed course (e.g., previously mentioned materials) • Critical Thinking University • Critical Thinking Boot Camp (2 days) • Custom Coaching by Executive Development Associates

39. The End Game of Better Performance

40. Critical Thinking Assessment & Training Solutions Sean Stowers: 917-215-5269 or sean.stowers@pearson.com John Frederick: 630-877-3766 or john.frederick@pearson.com Presentation Judy Chartrand: 651-257-1833 or judy.chartrand@Pearson.com For More Information Learn more at…www.ThinkWatson.com