Developing cultural change.Together.

The cultural development process at Deutsche Bahn

Corporate Culture Office

July 2015

DB AG

HZ

Cultural Change at DB

What is Company Culture?

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Culture is the amount of a society‘s unwritten rules, which apply as the „right“ kind of thinking, feeling and acting

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Company Culture roots in deep assumptions and mints the employees‘ behaviour among each other as well as structures and processes

Behaviours, structures and processes

Values and Norms

Ground Assumptions

Observable

Not observable

Company Culture

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Company Culture appears in a lot of aspects of daily workand mints the companies‘ perception from the outside

Werte und Normen, Grundannahmen ungeschriebene Regel

Observeable

Not observable assumptions, norms, values and unwritten laws

Company Culture

Leadership

Communication

Premises

Processes and Structures

Collaboration

Handling change

…

Personal proactiveness & responsibility/

Rules and standards

Social-partnership

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Company Culture is the critical factor for longlasting company success

Structure

Strategy

Culture

„I define culture as the sum total of everything an organization has learned in its history in dealing with the external problems, which would be goals, strategy, how we do things, and how it organizes itself internally.“

Edgar Schein

„Culture eats strategy for breakfast.“Peter Drucker

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Cultural change at DB

What is Company Culture?

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Cultural change is a critical component of our DB2020 strategy: We want to do more to improve employee satisfaction

Customer and quality

Profitable growth

Strategic direction

s

Vision

Sustainability

dimension

Profitable market leaderEconomic

Top employerSocial

Eco pioneerEnvironmental

111010TopTop No.No.

To become the world’s leading mobility and logistics companySustainable business success and social acceptance

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2

3 4

11No. No.

Cultural change/ employee satisfaction

Resource preservation/emissions and noise reduction

Corporate culture is the key to success – only satisfied employees can promote customers satisfaction

“Culture affects everything that is important:

the satisfaction of our employees, our public image, our

attractiveness as an employer, the loyalty of our customers

and our employees, our productivity, performance, innovation

and our role as entrepreneur.”Ulrich Weber,Member of the Management Board for Human Resources

Our cultural change is based on open dialogue - questioning, listening and participating to build a shared cultural vision

We held five Conferences on the Future, brought the dialogues to the regions and are intensifying our efforts on a local level

Five Conferences on the Future, one for each of the following groups: 4 management levels (KFK/OFK1, OFK2/3, LFK, BFK) and staff members

14 Regional Dialogues on the Future and one International Dialogue on the Future in BarcelonaTwo events, each with up to 300 executives and staff members in attendance, were held in each region

Three Dialogues on the Future on a regional level outside of Germany Staff members and executives from all business units in one country/region

Dialogue at a local levelExecutives with their teams/units

We combine our efforts to reach our common goals

In January 2012 we held the first International Dialogue on the

Future in Barcelona to bring the dialogue to Europe

At DB, we all share the same vision

“Is the board considering measurements to encourage better collaboration between business units?”

“Are there any plans to do the Dialogue on the Future on a national level, like the conferences in Germany?”

“Will there be further plans to share information within countries to understand DB vision and strategy?”

“How do we communicate the DB vision effectively after this meeting?”

„To know each other can finish the fear to share clients and info.”

“Together we can get there! – The question is what exactly is “there”?”

“In conclusion: We find this conference very positive.”

Two issues were particularly important:

collaboration across DB’s business units

and a common vision

Leadership

CooperationCooperation in the spirit of partnership, including across business units/ integrity, respect and appreciation in our day-to-day interactions

Improving the quality of leadership/ approachability and openness of executives/stronger inclusion of staff members

Developing a culture of dialogue and feedback marked by openness, a spirit of trust and constructive criticism/ encouraging transparent and direct communication

Encouraging an entrepreneurial spirit/ more flexibility in decision-making at the local level/giving others room to make decisions/having the courage to decide

Personal responsibility

Communication

The results of the cultural analysis and the feedback we received at the Conferences provide us with a clear vision for our change: People in focus!

„Mehr persönliche Gespräche, keine unnötigen Mails“

„Es wird zuviel gemailtund zu wenig geredet“

„Oft fehlende fachliche und soziale Kompetenz der Führungskräfte“

„Mehr kooperativen Führungsstil, mehr Wertschätzung für Mitarbeiter“

„Übergreifendes Denken und Handeln wird zur Selbstverständlichkeit“

„Zusammenarbeit scheitert an den Grenzen der einzelnen Geschäftsbereiche“

„Uns verbinden gemeinsame Ziele, die einen optimalen Nutzen für unsere Kunden bewirken“

„Egoistische Bereichsziele verhindern ein kundenorientiertes Gesamtergebnis“

We want an agile Organization, with self-confident employees, who feel valued for their activities, act loyal towards the company and work with enthusiasm for Deutsche Bahn and

our customers.

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Evaluation and Communication communication of results, Follow-up

workshops

STRATEGY DB2020ECONOMICS SOCIAL AFFAIRS ECOLOGY

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Qualification: Qualificationand Inspiration of leaders, employees and multiplicators

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Dialogue and Mobilisation:

Conferences on the Future, Dialogues on the Future, Culture Dialogue

Picture, Workshops on the Future

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Analysis Cultural analysis,

Employee Satisfaction Survey

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Changing: Implementation of activities, that have been idnetidfied by the employee satisfaction survey and ist follow-up workshops

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Retaining and Exchange: Storytelling, Best Practice, exchange, rewarding, e.g. DB Award and networks

Cultural Change at DB

Biennial Rhythmthrough Employee Satisfaction Survey

Adjustment / Reflection of Focus topics

OpenClose

Our understanding of cultural development: continious integration, questioning and working on changes

Büro Unternehmenskultur (HZ (2))14

Corporate level

Division level

Board of Management

Corporate Culture Office

Holding functions (Strategy, HR

development…)

Division BoardsChange Agents / Projectleaders

HR-development/Communicators

Regional Level

Regional representatives

Pace setters

Regional HR-network

Local level

Active Managers

Active Employees

To implement changes on site, the cultural change needs to happen on different levels – everyone can contribute

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The Dialogue continues with three Dialogues on a regional level outside of Germany (Wroslaw, Amsterdam, Manchester)

Deutsche Bahn AG, Ulrich Weber, 4 September 2014

1st Int. Dialogue on the Future, Barcelona 17-18 January 2012 with 300 participants

from all of Europe(host: DB)

3rd Int. Dialogue on the Future,Amsterdam

13-14 November 2013 with 300 participants from Netherlands and Belgium

(host: DB Schenker Logistics)

4th Int. Dialogue on the Future,Manchester

25-26 November 2014 with 300 participants from UK

(host: DB Arriva)

Objectives of international dialogues on the future:

Continuing direct dialogue between business units and with participants outside of Germany

Developing understanding of each others, understanding DB's vision and strategy, understanding the cultural change process

Strengthening the sense of belonging and togetherness within DB and promoting better cooperation between the business units active within a region/country

2nd Int. Dialogue on the Future, Wrocław14-15 February 2013with 300 participants

from Poland(host: DB Schenker Rail)

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The Dialogue on the DB Future in Poland was a successful kick-off to strengthen collaboration between business units outside of Germany

Dialogue on the DB Future in Poland

14./15. February 2013, Wroclaw Two days with evening event Organized by DB Schenker Rail Polska Hosted by the CEO of the business units

in Poland (DB Schenker Logistic, DB Schenker Rail, DB Arriva)

300 participants – executives and non-executives –representing all business units in Poland

Members of the Management Board of DB Group and of the businuess units as guests

Information and intensive discussions about DB’s strategy, DB’s culture and cooperation within DB

Workshop “Knitting the DB Net” as a strong symbol for cooperation

Wrocław

Please take the initiative.

Thank you very much!

The Corporate Culture Office is glad to help.

Contact us at: unternehmenskultur@deutschebahn.co

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