Balance 2015 ENG

Sustainability Report Balance // Issue 2015 // Lufthansa Group // 73 manner. To accelerate this transformation process, the Lufthansa Group concentrated on the following aspects during the reporting year. These measures are accompanied by made-to-measure change management. Sustainable implementation of the new leadership principles An important building block in personnel strategy are the five leadership principles “Driving Business”, “Leading Change”, “Creating Spirit”, “Fostering Talent” and “Mastering Complexity”. They serve as a leadership model and support the Lufthansa Group’s managers in directing their em- ployees and departments across the Group according to a unified set of values. In the course of the reporting year, a number of measures helped to anchor the leadership principles even more deeply within the organization. These included the perfor- mance potential tool “Profile”. “Profile” At the beginning of 2014, the Lufthansa Group launched “Profile” to provide a new basis for assessing the talent and perfor- mance of managers. This tool is a central instrument for employee performance evaluations and reviews. In the interest of the highest possible transparency, evalua- tions are carried out under the principle of multiple-assessor verification by several superiors within an area. Another innova- tion is that performance evaluations according to the Leadership Principles now consider not only the results, but also how they have been achieved. “Profile” is to be used Group-wide by the end of 2015. Furthermore, managers now have a wider margin of discretion concerning non-monetary incentives for their team members’ individual performances. An open dialogue ensures that employees receive differentiated feedback concerning work results, conduct and individual talents at regular intervals. “Spirit” With “Spirit” the Lufthansa Group aims at creating – under the roof of the Lufthansa School of Business – made-to-measure instruments, methods, formats and contents that support the Company’s HR strategy. The key idea behind this new concept is the necessity of lifelong learning. For this reason, “Spirit” focuses inter alia on topics such as reflecting on personal ways of handling change, cooperating on strategic topics across hierarchies and disciplines, introducing dialogue and parti- cipative formats particularly for operative staff, expanding digitalization and using social media. Talent management Since last year, the Lufthansa Group has also applied a new talent management philosophy guided by the principle “Every employee has talent!” Its nine core mes- sages provide a clear orientation concern- ing the aspects that the Lufthansa Group will emphasize in future in the area of talent management. In implementing this ap- proach, all HR instruments and processes are consistently assessed, adapted or evolved (see page 84). The Lufthansa Group’s HR strategy The strategic program “Forward with HR” concretizes the Lufthansa Group’s goals in the area of personnel. Developed further in 2014, these goals are to be implemented in the years ahead by means of specifically adapted instruments and measures: Increasing the organization’s ability to transform Maintaining and expanding the Company’s attractiveness as an employer Strengthening leadership and employee commitment Promoting sustainable and social responsibility Advancing efficient and future-oriented talent management processes Improving the culture of dialogue within the Lufthansa Group Strategic personnel planning In January 2014, the Lufthansa Group launched its “Strategic Personnel Planning” program with the goal of guiding and managing risks related to demographic changes. This not only makes an important contribution to the early analysis of possible discrepancies between future personnel levels and actual personnel needs. But it also supports the Company in securing the personnel resources of the future by means of appropriate measures. In a departure from previous approaches, the aviation company combines qualitative and quantitative analyses in a dynamic model that comprises a planning time- frame of 10 to 15 years. Another novelty is that the project team acts as a Group-wide competency center which supports the business segments in implementing stra- tegic personnel planning.

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