Embedding Performance Management

Accountability and Execution

Company Overview
American Express Company is a diversified worldwide travel, financial, and network services company. It is the
leading issuer of commercial cards and the largest corporate travel management company in the world, servicing
nearly 70% of the Fortune 500, along with tens of thousands of midsized companies. The company recorded
revenue of $29 billion in 2004 and employs about 78,000 full-time personnel.
Key Metrics

2004 Revenue: US$29 Billion Number of Company FTEs: 78,000


Navigating the Performance Management Challenge
Challenging Economic Conditions Lead to Aggressive Cost-Cutting
and IT Outsourcing
In 2001, American Express confronted severe financial pressures
and the direct impact of the September 11 terrorist attacks. The
result was a significant drop in earnings that prompted the company
to pursue aggressive cost savings and outsource a portion of IT to
instill more flexibility in its cost structure.
American Express established ambitious cost-savings goals of
more than $250 million dollars annually between 2002 and 2004.
In addition, the company reduced IT headcount by almost 50%
through “out-tasking,” or outsourcing work to select partners such
as IBM.
Investing to Retain Top Talent During Turbulent Times
Understandably, the organization wanted to retain its best talent
through the transition and thus invested in a multicomponent
Performance Management strategy that includes investments at the
corporate level as well as targeted efforts within the IT function.
Significantly, American Express was able to maintain its status as an
employer of choice throughout this period. American Express has
earned a spot on Fortune Magazine’s coveted “Best Places to Work”
list for the past six years in a row.
Developing the Next-Generation IT Workforce
Focusing on Managers as Agents of Employee Commitment
American Express’s performance management program is focused
on enhancing manager quality through four key elements. First, the
company creates manager accountability by hardwiring objective
measures of employee development into manager performance
reviews. Second, the company rewards employees for demonstrating
qualities compiled on a short list of high-impact culture traits.
Third, the company creates targeted tools to help managers and
employees identify core skill requirements and encourage employee
self-development. Finally, American Express invests in coaching
first-line managers in providing constructive feedback
Key Insight
To retain top IT talent, IT leaders should invest
in performance management processes that ensure
managerial ownership and accountability for
employee development.
Practice Drivers and Overview
Navigating the Performance Management Challenge
During a critical period of economic …American Express maintains
turbulence, layoffs, and outsourcing… strong employee commitment…
Size of Retained IT Staff at American
Express Before and After Out-Tasking Track Record as an “Employer of Choice”
Indexed
100
100% DAILY NEWS
86%
86 AmEx Again Named to
Fortune’s Best Places to Work

54%
54

• Earned a spot on Fortune’s “Best Places

to Work” for the sixth year in a row
2001 2002 2003
…by investing in performance management strategies to develop and retain talent

Manager Accountability and Incentives Manager Tools and Training

1 2 3 4
Hardwiring Development Incenting High-Impact Road-Mapping IT Skill Migrations Providing a Closed-Loop for
Accountability Cultural Traits Constructive Feedback
Personalized Development Plan

Goal Develop intermediate

level skills in Business
Process Design

Development Steps Participate in process

mapping for upcoming
database project

Completion Date October 2004

➤
Progress 1 September—
Reviewed existing maps
and identified two
efficiency opportunities

Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

 Developing the Next-Generation IT Workforce

A Personal Balanced Scorecard for Managers

What Gets Measured Gets Done Key Insight
To ensure managers are personally accountable for driving results,
In using objective measures of manager quality,
developing employees, and creating a high-performing culture, such as employee survey results and talent
American Express develops a personal balanced scorecard that is retention rates, IT leaders ensure the review
the basis for the performance management process. process and expectations are transparent.
American Express ties 50% of every manager’s evaluation to a
review of quantitative results and 50% to a review of qualitative
leadership competencies. The quantitative performance assessment
includes contribution to shareholder results, customer results,
and employee results.

Cascading Corporate Goals to Each Employee

By linking 25.0% of manager performance expectations to
shareholder returns and 12.5% to both customer delivery and
satisfaction, managers are forced to clearly link performance
to business objectives.
The shareholder results derive from strategic goals that cascade from
the CEO through to the CIO and in turn each employee. Customer
results are objectively assessed through business partner surveys and
project delivery rates.

Rewarding Managers for Staff Development

Employee results include objective metrics of manager quality
based on employee satisfaction survey results as well as retention
and promotion rates. Managers are expected to conduct root-cause
analysis on problems highlighted in employee satisfaction surveys
and construct targeted improvement efforts.
Component #1: Hardwiring Development Accountability
A Personal Balanced Scorecard for Managers
Manager scorecards balance …with specific accountability
results and leadership competencies… for employee development…

Manager Performance Joe Wolf

Employee Name:_______________________________ Senior Project Manager
Title: _______________________________
Assessment
Category Weight Rating
Results Review = 50% Results Review 50.0% 3.5
1. Shareholder Results 25.0% 4–Exceeds Expectations
Leadership Review = 50%
2. Customer Results 12.5% 4–Exceeds Expectations
3. Employee Results 12.5% 2–Below Expectations

…linking each manager to corporate goals and objective metrics of performance management quality

Shareholder Results
Shareholder Results == 44 Customer Results = 4 Employee
EmployeeResults
Results= 2
Employee
EmployeeSurvey
SurveyResults
Results = 15%
Retention
Retention ofof High-Potential
High-PotentialTalent
Talent = 10%

•• Benefits Accountability—Revenue on three new • •Project

ProjectDelivery
DeliveryResults—Completed
Results—Completedprojects
projectsonon-time
time •• Improvement
ImprovementininEmployee
EmployeeSurvey
SurveyRatings—Conducted
Ratings—Conducted
products boosted our group’s revenue by 25% vs. and
andonon-budget.
budget interviews
interviewsand androot-cause
root cause analysis
analysis to
to identify
identify reasons
reasons
versus
expectedexpected
15%. 15% for
fordecline
declineininscores;
scores. set
Setupupaadetailed
detailedimplementation
implementation
• •Customer
CustomerSatisfaction
SatisfactionRatings—More
Ratings—Overthan
85%85% of
of sampled plan
sampled customers rated new platform as “Very planand
andfeedback
feedbackprocess
processto toimprove
improvescores
favorable scores.
•• Continuous Cost Improvement—Reduced the time customers rated new platform as “Very Favorable.”
spent on maintaining current processes by 25% Favorable” •• Retention—Two
Retention—Two of my direct reports leftthe
of my direct reports left thecompany
company
•• Promotion—None
Promotion—Noneofofmy mydirect
directreports
reportswaswerepromoted
promoted
ininlast
lastreview
reviewperiod
period
•• Quality
QualityofofFeedback—Identifi
Feedback—Identified edatatleast
leastone
onedevelopment
development
1 2 opportunity
opportunitiesforforeach
eachdirect
directreport
reportandandprovided
provided
Strategic Goal Cascading—A clear link from Emphasis on Employee Results— resources
resourcesto totake
takeadvantage
advantageofof these
them.opportunities
manager to corporate objectives and business. Ensures manager accountability •• Frequency
FrequencyofofFeedback—Met
Feedback—Metmonthly monthlywithwitheach
eachteam
team
for staff development. member
member to provide feedback and coaching. conducted
to provide feedback and coaching; Conducted
monthly
monthlyteamteammeetings
meetings.

Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution
 Developing the Next-Generation IT Workforce

Building Blocks for a Performance Culture

Transforming Culture by Rewarding Specific Behaviors
The remaining 50% of the personal balanced scorecard rates
performance against firmwide leadership competencies. American
Express defines eight leadership competencies, and each is equally
weighted in determining the overall review rating, thereby clearly
signaling expected behavior.
Key Insight
IT leaders should reinforce development of
corporate values by tying performance reviews to
the specific cultural attributes most closely linked
to employee effort.

Cross-Firm Leadership Competencies Replace IT-Specific

Competencies
Previously, American Express defined IT-specific competencies
to complement its firmwide leadership expectations. However, in
order to strengthen development of business-focused IT leaders, the
IT function now rates employees against a common set of global
leadership expectations consistent with those for business unit
leaders across the company.

Competencies Refreshed to Reflect New Business Climate

These revised leadership competencies were defined in 2002 in
an effort to strengthen the organization and reflect changes in
the competitive landscape. According to Ursula Fairbairn, the
former EVP of Human Resources, “We wanted to ensure that our
culture reflected and supported the behaviors needed to win in the
marketplace and to accelerate growth.”
Component #2: Incenting High-Impact Cultural Traits
Building Blocks for a Performance Culture
Eight qualitative criteria ensure reviews are tied to the most important cultural performance drivers
Leadership Review Review Weighting: 50%
Joe Wolf
Employee Name: ____________________________________ Senior Project Manager
Title: ___________________________________
High-Impact American Express Rating
Competency Definition
Performance Driver Leadership Competency 1–5
Overall Leadership Rating 3 • Needs to Improve Employee Development, Team-Building,
and Communication Skills
Developing People Builds Diverse Talent 2 • Provides timely, clear, and actionable performance feedback

Builds and Leverages Relationships 2 • Proactively helps people understand their roles in projects

Manager Performance
Assessment
Results Review = 50%
Leadership Review = 50%
Communication Communicates Effectively 3 • Shapes conversations to ensure focus and understanding
• Influences and convinces others to achieve acceptance
and agreement
Integrity Drives Results 4 • Acts with integrity and shows energy and resilience
Demonstrates Personal Excellence 4 • Maintains commitment and remains positive in the face of setbacks
and obstacles
Innovation Drives Innovation and Change 4 • Seeks continuous improvement by considering solutions that make
novel use of existing ideas, approaches, technologies, or products

Flexibility Develops Winning Strategies 4 • Adjusts actions to respond and capitalize on changing circumstances
• Takes personal accountability for achieving individual and
shared goals
Customer Focus Focuses on the Customer and Client 4 • Proactively anticipates customer needs and identifies specific
requirements

Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

 Developing the Next-Generation IT Workforce

Providing the Framework for Career Transitions

Mapping Skills to Identify Gaps and Support Career Development
To provide tools for managers and employees to guide their own
career development through the outsourcing transition, American
Express Technologies creates a multicomponent Skills Framework.
The framework helps employees identify core roles and examples
of potential career paths within the retained IT organization. These
tools provide managers with a framework to help guide employee
career-pathing and to identify potential skills gaps.
Defining Degree of Technical and Business Skills
The Proficiency Assessment Tool highlights expected skill levels
for every retained role in the IT organization. The tool includes
skill definitions and rating guidelines for 10 business skills and 52
technical skills and clarifies the level of proficiency expected in each
role.
Linking Skills Assessment to Available Training
The skills map is presented online alongside career path definitions
and course lists. Training opportunities are linked to specific skill-
development needs and include a range of options from computer-
based, classroom, and experience-based learning.
Key Insight
To help employees and their managers plan career
paths in core retained roles, IT leaders should
develop transparent skills definitions and tools
to highlight development resources and potential
skill migrations.

Focusing on Career Goals and Development Needs

The tool helps IT employees rate themselves against skills,
corroborate their own ratings with their manager’s assessment,
and ultimately have informed discussions with managers to support
career development around identified skill gaps. Furthermore,
employees annually update their current skill ratings, providing
the IT leadership team with valuable information about the current
portfolio of staff skills and areas of potential skills gaps across the
entire IT organization.
 Implementation Guide
on pp. 59–64.
Component #3: Road Mapping IT Skill Migrations
Providing the Framework for Career Transitions
American Express Technologies offers a range of tools to assist with career and skill development

Back Forward Stop Refresh !

Address: http://intranet.americanexpress.com/AETSkillsFramework

American Express Technologies Skills Framework

IT Proficiency
Career
Assessment
Paths
Tool

Potential Skill Proficiency Assessment

Career Paths
Target Role: Director of Technology Development
Skill Rating Guidelines
Current Role: Business Systems Analyst Rating Scale: 0 = No Competency; 4 = Expert
VP, Program Manager Business Process Design Definition
Skill Category Target Competency Current Competency Gap to Goal
Knowledge and ability to implement business process design that
Business Skills focuses on maximizing overall organizational performance.
Value Management 3 2 (1) 1 Basic: Basic understanding of key business processes and
Consulting 3 1 (2) rules in own area
Portfolio Manager 2 Intermediate: Has analyzed a process, associated
Business Process Design 2 1 (1)
business logic, and recommended simplification or elimination
Technical Skills
3 Advanced: Able to present the results of process-
Project Management 2 1 (1)
Senior Project Manager reengineering experience to business management
IT Architecture 3 1 (2)
4 Expert: Participates in setting strategy for business
IT Industry: Trends and Directions 2 1 (1) process reengineering within the organization

Project Manager

1 2
Skill Requirements—Identifies level for every role
across 10 business skills and 52 technical skills.
Transparent Skill Mapping—Empowers employees to
identify skills needed to make desired career transitions.
3
Skill Rating Guidelines—Ensure consistent
and transparent skill definitions.
Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

 Developing the Next-Generation IT Workforce

Development and Coaching Accountability

Embedding Informal Feedback and Coaching in Managers Key Insight
Workflow
To ensure focus on the quality and frequency
To improve the quality of managers’ development and feedback of managers’ feedback, IT leaders should
skills, American Express focuses on four key attributes: embed training, tools, and incentives into the
performance management process.
Quality of Feedback—Employees are encouraged to use their
personalized development plans to focus on targeted skills gaps
identified through the Proficiency Assessment Tool. Employees
work with their managers to outline specific steps, time lines, and
development resources needed to address these gaps.
Frequency of Feedback—Feedback frequency is embedded into all
managers’ performance expectations.
Actionability of Feedback—Development plans focus on objective
measurable goals to facilitate actionability and execution.
Mutual Accountability—Employees and managers are rewarded
based on each employee’s fulfillment of performance management
goals. The annual employee survey also measures employee ratings
of manager quality in development plans and feedback.
 Component #4: Providing a Closed Loop for Constructive Feedback
Development and Coaching Accountability
To upgrade manager-led development, American Express embeds coaching
into workflow through training, tools, and performance expectations

1 Personalized Development Plan 4

Quality of Feedback
• All managers go through
coaching training that
highlights tools and
approaches for quality
feedback.
• Development plans
address specific skill
gaps highlighted in the
Proficiency Assessment
Tool.
2 Frequency of Feedback
• Development plans are
formally updated twice
annually and informally
updated as needed.
• Feedback frequency is
embedded in managers’
performance review
guidelines.
Mutual Accountability
$
Goal Develop intermediate- • Development plan
level skills in business achievement influences
process design staff performance
reviews.
• Development plan and
Development Steps Participate in process feedback quality is
mapping for upcoming assessed in managers’
database project upward performance
reviews and tied to
Completion Date October 2004 overall performance
rating on “Employee
Results.”
• The employee survey
captures manager
Progress 1 September— effectiveness in
Reviewed existing maps providing feedback.
and identified two
efficiency opportunities
3 Useability of Feedback
• Areas for improvement are
incorporated into objective,
measurable goals for the
development plan.
Source: American Express Company; CIO Executive Board research.
American Express: Embedding Performance Management Accountability and Execution
 Developing the Next-Generation IT Workforce

Committing to Continuous Improvement

Improved Employee Satisfaction During Transition Key Insight
As a result of its focused investment on performance management
Investments in performance management
quality, American Express has been able to consistently improve its programs should target key measures of success
levels of IT employee satisfaction even during a period of significant that inflect employee effort and retention such as
transition in the function. development plan effectiveness and quality
of feedback.
Since 2002, American Express has seen a 10% increase in the
number of IT employees agreeing to this statement: “I feel that I can
grow and develop at AmEx.” Additionally, for eight years in a row,
American Express overall employee satisfaction has increased.

Skills Framework Critical to Development Planning

As a testament to the effectiveness of its efforts to help IT employees
navigate potential career paths, American Express reports that
68% of employees agree that “The AET Skills Framework has been
helpful in planning my development.”

Low Employee Turnover Rates Go Lower

Finally, in one of the most important measures of success, American
Express has seen its voluntary turnover rates decline by 60% from
already low, single-digit levels.
Results

Committing to Continuous Improvement

By ensuring manager accountability and attention to employee commitment…

Percentage of IT Employees in Agreement American Express Rank Relative to Peers in Agreement

“I feel that I can grow and develop at American Express” “My leader gives me feedback that helps me improve my performance.”
(Indexed)
+90%
90%
109
85% +75%
75%
106
82%

100
77%

2002 2003 2004 2002 2004

…American Express benefits from strong employee development and retention

IT Employee Satisfaction Survey Annual Voluntary IT Employee Attrition Before and After Out-Tasking
“The IT Skills Framework has been Indexed
valuable in planning my development”

Neutral or 5%
100
Disagree
60%
32% 40
2%

68%
2001 2004
Agree

Source: American Express Company; Mayflower Group; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

Developing the Next-Generation IT Workforce
 Complete Skills Assessment Spreadsheet Available
for Download at www.cio.executiveboard.com.
Implementation Guide
Proficiency Assessment Tool
American Express’s assessment tool allows employees to compare their personal proficiencies
to the recommended proficiencies for any position and then locate relevant training
Skill-Rating Guidelines How to Use
PROFICIENCY ASSESSMENT TOOL
Directions
Core Applications Systems 1. Select a position title from the
Definition: Knowledge of major production application systems
1. Select a position title from the list box to see recommended
proficiencies in 'A' blank cell = no proficiency required Mgr-Business Systems Dev 35 list box to see recommended
used for delivery of service to internal and external clients proficiencies in “A”
0 = No Knowledge or Experience
1. Basic 2. Enter your self-assessment of proficiency in 'B'
- Use as a guide the complete explanations of
1 = Basic
2 = Intermediate
0 = No Knowledge or Experience
• Can identify the organization’s core application systems proficiency levels that are attached to each skill 3 = Advanced
• Basic understanding of core applications supported by own area 4 = Expert 1 = Basic
• Understands major functions or services supported by core apps 3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
• Able to locate and use documentation and information for these systems represented as the difference between your 1 (1) = small 3 (3) = large
2 = Intermediate
self-assessment and the recommended proficiency 2 (2) = moderate 4 (4) = major

2. Intermediate 3 = Advanced
• Can identify core application systems for a major business unit or function Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.

• Aware of key players, criticalities, roles, and responsibilities

4 = Expert
Business A B C A B C
American Express Business Functions 2 1 (1) Global Perspective 2 1 (1)
• Can discuss application-related issues with the client Business Process Design 2 1 (1) Knowledge of American Express 2 2 0 blank cell = no proficiency required
• Aware of key functions, benefits, and impact of disruption on core Consulting
Core Applications Systems
2
2
1
1
(1)
(1)
Quality Management
Risk Management
3
2
2
1
(1)
(1)
applications External Resource Management 2 1 (1) Value Management 2 2 0

• Can describe the features of a major applications system and subsystems Technical

3. Advanced
Application Delivery Process
Application Design, Architecture
3
2
2
2
(1)
0
IT Environment
IT Industry: Trends and Directions 2 1 (1)
2. Enter your self-assessment of
• General understanding of related core applications in other business areas
Application Development Tools
Application Maintenance
1
1
1
1
0
0
IT Standards, Procedures, Policies
IT Systems Management
2 2 0
proficiency in “B”
Asset Management (IT) JAD
• Able to discuss application-related issues and implications with clients Audit and Control (IT) Middleware
Proficiency levels are defined for each
Capacity Planning Modeling: Data, Process, Events, Objects 3 1 (2)
• Can describe key interfaces and interdependencies among applications Change Control Network Architecture
systems Computer Facilities Management Networking/Communications Hardware skill (see left side)
Computer Operations Networking/Communications Software
• Can describe features and benefits of applications for multiple business Contingency and Disaster Recovery
Data Administration
2 1 (1) Performance Measurement and Tuning
Product and Vendor Evaluation 1 1 0
units Data Security Administration Programming 1 1 0
Data Warehousing Project Management 2 1 (1)
• Can discuss existing and planned applications in major business unit Database Backup and Migration Query and Database Access Tools 3. Review strengths and growth
Database Design (Physical) RAD
• Familiar with enhancement, conversion, and retirement plans for core Database Development Tools Relational Databases opportunities in “C” that are the
applications Database Structures Remote/Mini Data Center Management
Emerging Technologies
Functional Requirements Analysis
1
3
1
2
0
(1)
Software Licensing
System and Technology Integration 2 1 (1)
difference between your self-
4. Expert Hardware Infrastructure System Development Life Cycle 3 1 (2)
assessment and the recommended
Hardware Installation and Support Systems Software Infrastructure 1 1 0
• Understands strategic business impact of core applications
• Has consulted on conversion and retirement of core systems
Implementation
Information Management
1
1
1
1
0
0
Technical Troubleshooting
Technical Writing/Documentation 3 2 (1) proficiency
Information Security Management 2 1 (1) Telecommunications
• Can describe key features and considerations for all major core applications IT Architecture 1 1 0 Testing 3 1 (2)
n = Strength
Wide Area Networks
• Can articulate and communicate the application architecture for core (n) = Growth Opportunity
applications
• Can discuss major competitors’ core-applications environment 4. Click a proficiency name to launch browser 1 (1) = Small 3 (3) = Large
• Can conceptualize and describe high-level data flows between systems and see recommended learning opportunities. 2 (2) = Moderate 4 (4) = Major
Source: American Express Company; CIO Executive Board research.
American Express: Embedding Performance Management Accountability and Execution
 Developing the Next-Generation IT Workforce

Implementation Guide (Continued)

Proficiency Assessment Tool (Continued)
Proficiency Rating for IT Project Manager

PROFICIENCY ASSESSMENT TOOL

Directions
Project Management
1. Select a position title from the list box to see recommended
Definition: Ability to plan, organize, monitor, and control projects ensuring efficient proficiencies in 'A' blank cell = no proficiency required Project Manager-Technologies 35
utilization of technical and administrative resources
1. Basic 2. Enter your self-assessment of proficiency in 'B'
0 = No Knowledge or Experience
1 = Basic
• Can explain the phase, activity, task, and deliverable - Use as a guide the complete explanations of 2 = Intermediate
proficiency levels that are attached to each skill 3 = Advanced
• Can define and explain the concept of critical path 4 = Expert
• Can identify project management tools and requirements within own function
3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
• Can describe an existing project and discuss key objectives, phases, and deliverables represented as the difference between your 1 (1) = small 3 (3) = large
self-assessment and the recommended proficiency 2 (2) = moderate jor
4 (4) = major
2. Intermediate
• Has participated in planning, estimating, and executing a project involving a few people
Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.
• Has estimated, planned, and organized own tasks using project management tools
• Relates own tasks to others on project and to the project’s critical path Business A B C A B C
American Express Business Functions 2 1 (1) Global Perspective 2 1 (1)
• Assists team members in planning, estimating, and controlling specific activities Business Process Design 2 1 (1) Knowledge of American Express 2 2 0
Consulting 2 1 (1) Quality Management 3 2 (1)
• Maintains open communication among project participants and affected parties Core Applications Systems 2 1 (1) Risk Management 3 1 (2)
External Resource Management 2 1 (1) Value Management 3 2 (1)
3. Advanced
Technical
• Experienced with planning, estimating, staffing, organizing, and managing multiple projects Application Delivery Process 3 2 (1) IT Environment
• Has held regular and ad hoc project reviews with project teams, sponsors, and clients Application Design, Architecture
Application Development Tools
1
1
2
1
1
0
IT Industry: Trends and Directions
IT Standards, Procedures, Policies
2
2
1
2
(1)
0
• Has monitored plan, critical path, and risk areas and defined proactive or corrective steps Application Maintenance 2 1 (1) IT Systems Management
Asset Management (IT) JAD
• Identifies reporting requirements and creates monitoring and control mechanisms Audit and Control (IT) Middleware
• Can describe techniques for monitoring progress identifying and resolving bottlenecks Capacity Planning
Change Control
Modeling: Data, Process, Events, Objects
Network Architecture
1 1 0

• Has consulted on development and implementation of project plans Computer Facilities Management Networking/Communications Hardware
Computer Operations Networking/Communications Software
Contingency and Disaster Recovery 2 1 (1) Performance Measurement and Tuning
4. Expert Data Administration Product and Vendor Evaluation 2 1 (1)
• Provides project management consulting and educational support Data Security Administration Programming 1 1 0
Data Warehousing Project Management 3 1 (2)
• Monitors critical path of major projects, implements corrective actions Database Backup and Migration Query and Database Access Tools
Database Design (Physical) RAD
• Has championed company’s project management methodology, tools, and techniques Database Development Tools Relational Databases
• Has consulted on project planning and management on high-risk, high-impact projects Database Structures Remote/Mini Data Center Management
Emerging Technologies 1 1 0 Software Licensing
• Ensures efficient utilization of resources—technical, administrative, and otherwise Functional Requirements Analysis 2 2 0 System and Technology Integration 2 1 (1)
Hardware Infrastructure 1 System Development Life Cycle 3 1 (2)
• Able to resolve contractual issues involving technology vendors and consultants Hardware Installation and Support Systems Software Infrastructure 1 1 0
Implementation 3 1 (2) Technical Troubleshooting
Information Management 1 1 0 Technical Writing/Documentation 1 2 1
Information Security Management 2 1 (1) Telecommunications
IT Architecture 1 1 0 Testing 1 1 0
Wide Area Networks

Source: American Express Company; CIO Executive Board research.

Implementation Guide (Continued)
Proficiency Assessment Tool (Continued)
Proficiency Rating for Enterprise Strategy Architect
PROFICIENCY ASSESSMENT TOOL
Directions
IT Architecture
1. Select a position title from the list box to see recommended
Definition: Knowledge of concepts and philosophies regarding the design and proficiencies in 'A' blank cell = no proficiency required Enterprise Strategy Architect 40
deployment of information technologies and associated architectural concepts,
principles, and tools 0 = No Knowledge or Experience
2. Enter your self-assessment of proficiency in 'B' 1 = Basic
1. Basic - Use as a guide the complete explanations of 2 = Intermediate
proficiency levels that are attached to each skill 3 = Advanced
• Familiar with the fundamental idea of an information technology architecture 4 = Expert
• Aware of architectural initiatives and blueprints for own area
3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
• Understands the need for and the components of an information technology architecture represented as the difference between your 1 (1) = small 3 (3) = large
• Can describe the local technology architecture self-assessment and the recommended proficiency 2 (2) = moderate 4 (4) = major

2. Intermediate
Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.
• Can identify and describe architectural principles relevant to own area of responsibility
• Can discuss key standards, guidelines, principles, and practices relevant to own function Business A B C A B C
American Express Business Functions 4 1 (3) Global Perspective 3 1 (2)
• Able to interpret and use architectural guidelines in own work Business Process Design 2 1 (1) Knowledge of American Express 3 2 (1)
Consulting 3 1 (2) Quality Management 2 2 0
• Can describe local hardware, software, and telecommunications components Core Applications Systems 3 1 (2) Risk Management 2 1 (1)
• Familiar with concepts of open architectures External Resource Management 2 1 (1) Value Management 3 2 (1)

Technical
3. Advanced Application Delivery Process 2 2 0 IT Environment 2
• Familiar with integration and implementation issues and their architectural implications Application Design, Architecture
Application Development Tools
4
1
2
1
(2)
0
IT Industry: Trends and Directions
IT Standards, Procedures, Policies
3
3
1
2
(2)
(1)
• Active in design of architectural components Application Maintenance 1 IT Systems Management
Asset Management (IT) JAD 2
• Experienced in the integration and migration of existing and planned platforms Audit and Control (IT) Middleware 3
• Has consulted with others on planning, migration, and implementation issues Capacity Planning
Change Control
Modeling: Data, Process, Events, Objects
Network Architecture
3 1 (2)

• Active in defining architectural principles and standards Computer Facilities Management Networking/Communications Hardware
Computer Operations 1 Networking/Communications Software
• Can discuss issues and considerations for an open architecture Contingency and Disaster Recovery 1 Performance Measurement and Tuning
Data Administration Product and Vendor Evaluation 3 1 (2)
4. Expert Data Security Administration Programming 1
Data Warehousing Project Management 1 1 0
• Has breadth of knowledge of existing and planned architecture Database Backup and Migration Query and Database Access Tools
Database Design (Physical) RAD 1
• Has led design of operating platforms for multiple functions Database Development Tools Relational Databases
• Monitors design to ensure coherent, viable architectural platforms Database Structures Remote/Mini Data Center Management
Emerging Technologies 3 1 (2) Software Licensing 2
• Has led development of technical architecture and standards Functional Requirements Analysis 2 System and Technology Integration 3 1 (2)
Hardware Infrastructure 2 System Development Life Cycle 2 1 (1)
• Significant experience in defining philosophy and principles for global architecture Hardware Installation and Support Systems Software Infrastructure 2 1 (1)
• Monitors vendor and industry experience; assesses impact for company Implementation 1 Technical Troubleshooting
Information Management 1 1 0 Technical Writing/Documentation 2
Information Security Management 3 1 (2) Telecommunications 1
IT Architecture 3 1 (2) Testing 1
Wide Area Networks

Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

 Developing the Next-Generation IT Workforce

Implementation Guide (Continued)

Proficiency Assessment Tool (Continued)
Proficiency Rating for Relationship Manager

PROFICIENCY ASSESSMENT TOOL

Directions
External Resource Management
1. Select a position title from the list box to see recommended
Definition: Ability to effectively manage the utilization of external services (for proficiencies in 'A' blank cell = no proficiency required Relationship Manager 35
example, product or platform vendors, service providers, contractors, consultants,
outsourced functions) 0 = No Knowledge or Experience
2. Enter your self-assessment of proficiency in 'B' 1 = Basic
1. Basic - Use as a guide the complete explanations of 2 = Intermediate
proficiency levels that are attached to each skill 3 = Advanced
• Understands the need for practices in dealing with vendors and suppliers 4 = Expert
• Understands American Express’s process for soliciting and selecting external resources
3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
• Aware of the procedures for management of external providers represented as the difference between your 1 (1) = small 3 (3) = large
• Aware of practices for interacting with outside personnel self-assessment and the recommended proficiency 2 (2) = moderate 4 (4) = major

2. Intermediate
Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.
• Able to locate and deal with appropriate vendor personnel
• Provides feedback on vendor performance to responsible contract administrators Business A B C A B C
American Express Business Functions 2 1 (1) Global Perspective 3 1 (2)
• Able to resolve routine issues or problems with vendors Business Process Design 2 1 (1) Knowledge of American Express 2 2 0
Consulting 2 1 (1) Quality Management 2 2 0
• Familiar with terms, conditions, and schedules of agreements with service providers Core Applications Systems 1 1 0 Risk Management 3 1 (2)
• Aware of alternative vendors for own area External Resource Management 3 1 (2) Value Management 3 2 (1)

Technical
3. Advanced Application Delivery Process 1 2 1 IT Environment 3 3
• Able to interpret documents detailing service provision and financial arrangements Application Design, Architecture
Application Development Tools 1
2
1 0
IT Industry: Trends and Directions
IT Standards, Procedures, Policies
2
2
1
2
(1)
0
• Regularly meets with vendors to monitor and address product or service performance Application Maintenance IT Systems Management 3 2
Asset Management (IT) 2 1 JAD
• Participates in appropriate user groups Audit and Control (IT) 2 1 Middleware
• Reviews and monitors vendor performance against contracts and agreements Capacity Planning
Change Control
2 Modeling: Data, Process, Events, Objects
Network Architecture
• Stays informed on major developments for strategic vendors and products Computer Facilities Management Networking/Communications Hardware
Computer Operations 3 2 Networking/Communications Software
• Influences existing and new vendor relationships and the approved vendor list Contingency and Disaster Recovery 3 1 (2) Performance Measurement and Tuning
Data Administration Product and Vendor Evaluation 4 1 (3)
4. Expert Data Security Administration Programming
Data Warehousing Project Management 3 1 (2)
• Comprehensive knowledge of industry practices Database Backup and Migration Query and Database Access Tools
Database Design (Physical) RAD
• Significant experience in managing external resources Database Development Tools Relational Databases
• Develops rationale for use of external resources Database Structures Remote/Mini Data Center Management
Emerging Technologies Software Licensing
• Leads development of selection criteria for approved vendor status Functional Requirements Analysis 2 System and Technology Integration
Hardware Infrastructure 2 2 System Development Life Cycle
• Documents service provider problems and terminates as appropriate Hardware Installation and Support Systems Software Infrastructure 2 1 (1)
• Ensures orderly technology and administrative transfer processes Implementation 1 Technical Troubleshooting
Information Management 2 1 (1) Technical Writing/Documentation
Information Security Management 2 1 (1) Telecommunications 2 2
IT Architecture 2 1 (1) Testing
Wide Area Networks 0

Source: American Express Company; CIO Executive Board research.

Implementation Guide (Continued)
Proficiency Assessment Tool (Continued)
Proficiency Rating for Change Management Analyst
PROFICIENCY ASSESSMENT TOOL
Directions
Risk Management
1. Select a position title from the list box to see recommended
Definition: Knowledge of process, tools, and techniques for assessing and controlling proficiencies in 'A' blank cell = no proficiency required Change Management Analyst 30
an organization’s exposure (assets, liabilities, reputation…)
1. Basic 2. Enter your self-assessment of proficiency in 'B'
0 = No Knowledge or Experience
1 = Basic
• Can identify common types of business risks - Use as a guide the complete explanations of 2 = Intermediate
proficiency levels that are attached to each skill 3 = Advanced
• Can cite company-specific examples of business risks and potential consequences 4 = Expert
• Is aware of key issues and benefits of risk management practices
3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
• Knows where and how to obtain more information on risks and risk management policies represented as the difference between your 1 (1) = small 3 (3) = large
self-assessment and the recommended proficiency 2 (2) = moderate 4 (4) = major
2. Intermediate
• Experienced with implementing or managing risk management processes and tools
Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.
• Can describe the key steps of a risk management process and associated procedures
• Can identify common technology, security, or financial risks relevant to own function or unit Business A B C A B C
American Express Business Functions 1 1 0 Global Perspective 1 1 0
• Familiar with a risk-assessment model and techniques relevant to a specific line of business Business Process Design 1 1 0 Knowledge of American Express 2 2 0
Consulting 1 1 0 Quality Management 2 2 0
• Can produce and interpret common risk-assessment and management reports Core Applications Systems 1 1 0 Risk Management 1 1 0
External Resource Management 1 1 0 Value Management 2 2 0
3. Advanced
Technical
• Experienced with implementing function-wide risk management processes and tools Application Delivery Process 2 2 0 IT Environment
• Has in-depth knowledge of a risk assessment model and analysis tools and processes Application Design, Architecture
Application Development Tools
1
1
2
1
1
0
IT Industry: Trends and Directions
IT Standards, Procedures, Policies
1
2
1
2
0
0
• Can describe key benefits, drawbacks and rationale for risk management practices Application Maintenance 1 1 0 IT Systems Management
Asset Management (IT) JAD
• Can identify and elaborate on key risk management benchmarks Audit and Control (IT) Middleware
• Has knowledge of cross-functional risk management processes, tools and audit mechanisms Capacity Planning
Change Control
Modeling: Data, Process, Events, Objects
Network Architecture
1 1 0

• Can describe the pros and cons of various risk management models Computer Facilities Management Networking/Communications Hardware
Computer Operations Networking/Communications Software
Contingency and Disaster Recovery 1 1 0 Performance Measurement and Tuning
4. Expert Data Administration Product and Vendor Evaluation 1 1 0
• Experienced with implementing enterprise-wide risk management programs Data Security Administration Programming 1 1 0
Data Warehousing Project Management 1 1 0
• Consults on matching risks and risk management tools, processes, and benchmarks Database Backup and Migration Query and Database Access Tools
Database Design (Physical) RAD
• Monitors industry and marketplace experiences; can cite relevant case studies Database Development Tools Relational Databases
• Can discuss the Internet and e-commerce considerations and the effect on current business risks Database Structures Remote/Mini Data Center Management
Emerging Technologies 1 1 0 Software Licensing
• Can discuss geographical, technological, and social issues associated with risk management Functional Requirements Analysis 1 2 1 System and Technology Integration 1 1 0
Hardware Infrastructure System Development Life Cycle 1 1 0
• Has participated in a process for identifying and anticipating long-term risks or threats Hardware Installation and Support Systems Software Infrastructure 1 1 0
Implementation 1 1 0 Technical Troubleshooting
Information Management 1 1 0 Technical Writing/Documentation 1 2 1
Information Security Management 1 1 0 Telecommunications
IT Architecture 1 1 0 Testing 1 1 0
Wide Area Networks

Source: American Express Company; CIO Executive Board research.

American Express: Embedding Performance Management Accountability and Execution

 Developing the Next-Generation IT Workforce

Implementation Guide (Continued)

Proficiency Assessment Tool (Continued)
Proficiency Rating for Business Systems Analyst
Value Management
Definition: The process for ensuring funded projects have the necessary value and PROFICIENCY ASSESSMENT TOOL
execution characteristics to secure ultimate success as measured against original Directions
projections of time, cost, financial return, and value to be delivered.
1. Select a position title from the list box to see recommended
1. Basic proficiencies in 'A' blank cell = no proficiency required Business Systems Analyst 35

• Understands that American Express Technologies focuses on investing in areas that will provide the
greatest overall growth opportunities to the company 2. Enter your self-assessment of proficiency in 'B'
0 = No Knowledge or Experience
1 = Basic
• Understands that the customer perspective is the key definer of value (the worth or quality of a - Use as a guide the complete explanations of 2 = Intermediate
proficiency levels that are attached to each skill 3 = Advanced
product or service) 4 = Expert
• Understands it is critical to focus on up-front planning and then deliver on the value we have promised
to our customers 3. Review strengths and growth opportunities in 'C' n = Strength (n) = Growth Opportunity
represented as the difference between your 1 (1) = small 3 (3) = large
• Aware of the “lethal issues” questions that can be asked to help reduce project risk self-assessment and the recommended proficiency 2 (2) = moderate 4 (4) = major

2. Intermediate
Note: Clicking a skill will launch your browser and take you to the respective page showing learning solutions on AETVU.
• Ensures that key stakeholders are brought together to participate in value management activities early
in the project life cycle Business A B C A B C
American Express Business Functions 1 1 0 Global Perspective 1 1 0
• Able to recognize and challenge weak value propositions and business cases Business Process Design 1 1 0 Knowledge of American Express 2 2 0
Consulting 1 1 0 Quality Management 2 2 0
• Can apply the “lethal issues” questions to improve project performance and reduce project risk Core Applications Systems 1 1 0 Risk Management 1 1 0
• Understands managing to value requires that a project delivers the intended return on investment by External Resource Management 1 1 0 Value Management 2 2 0

identifying and mitigating risks or by stopping the project Technical

Application Delivery Process 2 2 0 IT Environment
• Ensures risk-mitigation plans include success criteria and evaluation of plan execution Application Design, Architecture 2 2 0 IT Industry: Trends and Directions 1 1 0
Application Development Tools 1 1 0 IT Standards, Procedures, Policies 2 2 0
3. Advanced Application Maintenance 1 1 0 IT Systems Management
Asset Management (IT) JAD
• Can identify the effectiveness and completeness of business and technology strategies and ensure Audit and Control (IT) Middleware
alignment with AXP and other applicable cross-organization strategies Capacity Planning
Change Control
Modeling: Data, Process, Events, Objects
Network Architecture
1 1 0

• Experienced in assessing business benefits, costs, and risks on multiple types of projects Computer Facilities Management Networking/Communications Hardware
Computer Operations Networking/Communications Software
• Creates environment where identifying project risks is positive Contingency and Disaster Recovery 1 1 0 Performance Measurement and Tuning
• Plays a leadership role in conducting value assessments using value management tools and job aids Data Administration
Data Security Administration
Product and Vendor Evaluation
Programming
1
1
1
1
0
0
• Ensures the business case is updated regularly based on changes in cost, scope, and/or schedule, and Data Warehousing Project Management 1 1 0
Database Backup and Migration Query and Database Access Tools
includes metrics that quantify the value proposition and benefit for each customer group as well as Database Design (Physical) RAD
AXP Database Development Tools
Database Structures
Relational Databases
Remote/Mini Data Center Management
Emerging Technologies 1 1 0 Software Licensing
4. Expert Functional Requirements Analysis 2 2 0 System and Technology Integration 1 1 0
• Significant experience in weighing business risks and opportunities for complex technology projects Hardware Infrastructure
Hardware Installation and Support
System Development Life Cycle
Systems Software Infrastructure
1
1
1
1
0
0
and making or recommending balancing-act decisions Implementation 1 1 0 Technical Troubleshooting
Information Management 1 1 0 Technical Writing/Documentation 2 2 0
• Has contributed to or formulated policies and procedures for justifications of IT expenditures Information Security Management 1 1 0 Telecommunications
• Ability to clearly articulate the link between value management results and project success or failure IT Architecture 1 1 0 Testing
Wide Area Networks
1 1 0

• Extensive experience on projects with high-level, high-impact, or high-cost technology expenditures

• Recognized expert in quantifying business benefits, costs, and risks and can articulate to senior Source: American Express Company; CIO Executive Board research.
management