Ú Key areas for action in personnel matters We wish to work to preserve and strengthen our stature as an employer particularly in light of demographic trends. Our Personnel depart- ment’s future goals are therefore based on and consistent with the Group’s corporate strategy: The Lufthansa Group is unwavering in its pursuit of these goals. To realize them, the Personnel department has developed the strategic program Forward with HR. This program gives concrete expression to the four goals derived from the Group’s corporate strategy and defines the measures that will point the way for the next several years: Lufthansa Group goals Ú Increase the company’s value. Expand the leading market position of our airlines and service companies by actively shaping the aviation industry. Continuously increase customer satisfaction. Conduct economically, ecologically, and socially balanced and sustainable business. Personnel depart- ment goals Ú Increase the organization’s productivity. Preserve and strengthen our attractive- ness as an employer. Increase employee commitment. Promote sustainable social responsibility. Increase the organization’s productivity: Focusing on further enhancing the Lufthansa Group’s productivity with the means of HR management. Preserve and strengthen our attractiveness as an employer: Ensuring attractive yet competitive terms of employment and pay. Increase employee commitment: Encour- aging employee commitment by giving employees an active voice in the direction of the Lufthansa Group. Promote sustainable social responsibility: Fulfilling our internal and external social responsibilities and further developing them to lasting effect. We have already set in motion comprehensive measures to create the conditions for innova- tive personnel work. As the first step in their implementation, the Personnel department has set its focus on capturing synergies, standardizing processes, and developing managers and the management culture. Effective as of financial year 2014, the Execu- tive Board also approved a comprehensive reorientation of the instruments of benefits management and variable compensation. We are convinced that this will further improve team performance in the Lufthansa Group. Ú The five principles of our new management culture A mainstay of our position as an attractive employer is a modern, feedback-oriented management style that inspires enthusiasm and loyalty towards the Lufthansa Group among its employees and enables them to achieve their best. Moreover, the ability of management to cope with impending pro- cesses of change is becoming ever more important. The future will see an even greater need for managers to think and act entrepre- neurially. This involves a willingness to make courageous decisions, seize opportunities, and strike out on new paths, all with the firm support of employees. The Lufthansa Group’s management guidelines consist of our five Leadership Principles: 1. Driving Business I shall do all I can for our lasting success. 2. Leading Change I shall take a proactive approach to my area of responsibilities. 3. Creating Spirit For me it is the human element that makes all the difference. 4. Fostering Talent I shall help each employee develop his or her full potential. 5. Mastering Complexity I shall be at once courageous and careful in my decisions and actions. These five Leadership Principles will guide the future actions of our managers. Their influ- ence will also be felt in numerous personnel processes, such as those associated with compensation or the search for employees and their selection and development. The Lufthansa Group began to base its per- sonal performance assessments on these principles in 2014. This has shifted the emphasis to aspects that allow finer distinc- tions to be made. We do not judge perfor- mance merely by the results; rather, we take a broader view that takes into account the path leading to those results. Part of the process is to give precise feedback in which perfor- mance differences are clearly identified. At the same time, we allow our managers greater discretionary leeway to give monetary rewards for individual performance. The key instrument for assessing individual perfor- mance is the corporate management grading system newly redesigned under the name PROFILE (potential and performance assess- ment of management personnel). ß Sustainability Report Balance // Issue 2014 // Lufthansa Group // 83