Deutsche Telekom AG - The 2009 financial year

Ideas management. The Idea Management (IDM) Center was established on July 1, 2008 as a uniform Group-wide organization that has managed and implemented all IDM processes since January 1, 2009. These include the launch of a uniform, state-of-the-art IT platform for entering, processing, and reviewing ideas up to their realization. Investing in innovative platforms, e.g., Internet-based platforms, creates instruments that increase people’s willingness to develop and submit ideas and provide the opportunity to further improve the quality of the ideas submitted. In close cooperation with the patents and innovation departments, an enhanced innovation culture is being created that permits a broad spectrum between spontaneous and structured innovation and the development of ideas. The employees have responded positively to the ideas management system. In 2005 the number of ideas submitted was 7,821 and savings of EUR 98 mil- lion were generated; in 2009 the savings generated by 5,592 submitted ideas amounted to EUR 122 million. Talent agenda. Vocational training commitment remains strong. For years Deutsche Telekom has been the largest vocational training provider in Germany. At the end of the reporting year, Deutsche Telekom AG had 10,546 trainees and students on degree courses with integrated practical phases. The proportion of trainees in the workforce is well above the average of the DAX 30 companies. Deutsche Telekom intends to maintain this high level of commitment to junior-staff training. By September 1, 2009, Deutsche Telekom had given around 3,600 young people a career opportunity by accepting them for training or a study program. Training positions are avail- able in ten different professions and on various “dual” training courses. For 2008 to 2010, Deutsche Telekom and the service industry trade union ver.di agreed on an above-average annual trainee ratio of 2.9 percent of the headcount of permanent employees in Germany (excluding Vivento and its subsidiaries). At the end of 2009 the parties agreed to exceed this quota in 2010 as the Group takes the realization of its social responsibility to an even higher level. The Group trainee ratio was 9 percent of staff in Germany, excluding Vivento, at the end of 2009. Deutsche Telekom’s training programs are high quality and attract a large number of applicants. Every year, the chambers of commerce number Deutsche Telekom-trained staff among the best in their profession. In the interests of developing prospects for the younger generation, Deutsche Telekom’s training goes far beyond its own staffing requirements. Unions and management agreed in June 2007 that more than 4,000 junior staff would be given permanent positions in the Group in Germany by the end of 2009. The Group gave around 1,300 trainees permanent positions in 2007, adding another approximately 1,800 in 2008. A total of approxi- mately 2,300 junior staff completing vocational training at Deutsche Telekom were given permanent positions in the 2009 financial year. Further training at Deutsche Telekom. Telekom Training, the further-train- ing provider for the Group and the external German market, coordinates and designs training programs for expert and executive staff. In total, Telekom Training held 23,428 seminars for 155,457 participants in 2009. Most of these took place in the eight Deutsche Telekom conference hotels, all of which were rebranded on September 7, 2009 and are now referred to as Commundo Conference Centers. The Group, the main user of these con- ference hotels, accounted for 67.2 percent (of which Telekom Training accounted for 49.5 percent) of the 292,477 overnight stays and 38,127 event days. Performance & Potential Review. In the 2009 financial year, the existing Performance & Potential Review (PPR) process for the around 2,500 execu- tives in the Group was implemented for the first time on the basis of the new uniform competency model that is focused on the Group’s new guiding principles and describes the requirements for employee action that are critical to success. Follow-up processes in talent and succession manage- ment were also redefined and closely linked to the PPR. The requirements of the PPR process for the One Company initiative with its more pronounced matrix organization were met by piloting and holding additional functional PPR sessions throughout the Group for the first time in the areas of Tech- nology, Procurement, Finance, and IT. HR@2012. Quality and efficiency in human resources work through HR@2012. As part of the successfully concluded HR@2009 project, a number of essential milestones have already been implemented and pioneering steps taken. The FTE targets were reached and a three-role model introduced that makes HR activities more efficient and caters specifically to internal customers. This course will now be continued. HR@2012 will attune the Human Resources department to current and future requirements and help it to develop a more clear-cut profile as a “partner for business” and to further enhance both customer satisfaction and efficiency. One important aspect of the initiative is that it considers costs, processes, and quality all at the same time. HR@2012 will be instrumental in achieving the Group’s efficiency targets. 105Group management report Employees