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Seminar Personalpolitik Personalentwicklung und Diversity

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Seminar Personalpolitik Personalentwicklung und Diversity Powered By Docstoc
					Course:
Diversity-Management in Competitive Industries ‟ The Lufthansa Case
Part 3: HR ‟ Leadership

Monika Rühl
Director Change Management and Diversity


17/10/2008         Otto ‟ von ‟ Guericke University Magdeburg
Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

2
Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Brainstorming                            Introduction




                         Let’s define
                         „leadership“!




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Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Definition of Management/Leadership                                                         Definition


    Management (leadership) is the goal-orientated development, steering and
    monitoring of a company (…) concerning pertinent and person oriented (…)
    dimensions, while ‟ at the same time ‟ the mutual relations to the external
    environment and the respective situation are kept in mind.

                          Source: http://www.wirtschaftslexikon24.net/d/fuehrung/fuehrung.htm am 20.4.2007



    Leadership =

    “the ability to adapt, to change, to develop ideas, to
    build sustainable partner networks and a balanced
    price performance ratio.”

                                                        (Stefan Lauer)

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 Executive Managers                                   Definition


„ Especially nowadays, when constant change and
    continuous competition is “daily business” in the airline
    industry, the importance of leadership grows


„ Executives are the multipliers of new concepts and
  ideas
„ Executives are jointly responsible
    for that the employees understand
    and support changes

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Role model                                                              Definition

„ Knowledge and experience are the new „productive factor“

„ Hence, the competition demands a group-wide knowledge management which
  utilizes synergies, constantly generates and supplies new knowledge, and
  enables the continuous usability and documentation.



„ Nowadays, executives must act as role models concerning
  cooperation, communication and service.
 Design and support the corporate flexibility and strategy
 Education and training of Executives aim to either their individual development
  or to support organizational development




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Ambition/ Intention                                                       Definition


„ Preparation and qualification to support and promote talents ‟ this is essential for
  the company.


 The provision of a high management quality is an important contribution to
  enable the company to exist. In this respect, Lufthansa focuses especially on the
  promotion of internal talents.


     Executives have an important role as examples,
     guides, multipliers and talent promoters.




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Goal: attractiveness of Lufthansa        Definition


 Further:

 ● Sustainable existing of our company
 ● Improvement of attractiveness of
   Lufthansa as an employer
           (“employer’s brand”)




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Definition:                                                                    Definition
Management in Business Studies

           Adjust acting of individuals and groups towards
           the realization of predetermined aims of an organization
           Often comprised social relations of primacy and subordination
           Tasks: motivation of employees, assurance of group coherence




           Process of developing
           relationships between the
           executive, the manager, the
           employees and other ‟ also
           external ‟ groups

                                            Source: Gabler Wirtschaftslexikon, 15. Auflage, 2001

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Management at Lufthansa                                            Definition


„ LE A: Executive Board of a Business Unit (BU), Senior Vice President (SVP)
  or Managing Director (MD) of a larger BU
„ LE B: Vice President, MD of a medium size BU
„ LE C: Director, MD of a smaller BU


Managers with responsibility for employees:
           -   Master/ technician
           -   Captain
           -   Team Leader
           -   Group Leader
           -   Purser/ -ette
           -   Flight Manager
           -   …

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Requirements for executives                                             Definition


     “Those who resist change, don`t want the world to go on existing”
                                                                   ‟ Erich Fried ‟


     Especially in such a complex business as the one of Lufthansa, we need
     executives who react
      fast
      flexibly
      courageously
                            to the permanent changes.


                              The only constant is change!


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Knowledge Society                                    Definition

Evolution to knowledge society


 demands towards executives are changing fast:


Attributes like creativity and willingness to learn are
decisive company values today!




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Shaping relationships                                             Definition



Different factors act together          (Re-)Acting is influenced by:


 individual values and norms
 the value and goal system of the company (company culture) and
  its relating groups


     A leader ‟ as an individual ‟ can contribute to and change the
     corporate culture.           In return, each culture retroacts on the
     leader.




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Balancing Act                                                    Definition


      Leadership as a balancing act of growing importance


       introduction, guidance and mentoring of employees
       interaction and communication
       orientation on corporate policy, -goals and ‟culture
       regularly questioning and reconsidering individual and
           collective assumptions about leadership
       Focus on both company values as well as immaterial
           values


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Content




                                                                    Lufthansa
            Introduction              Definition                   Leadership
                                                                    Compass



                                                    Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




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Lufthansa Leadership Compass                                           LLC


„ Requirements to executives in the LH affiliated group are outlined
„ 6 dimensions of requirements (=basis
     for the group-wide used instruments for
     recruitment and development of executives:
     eLLF and DC-Track belong to this)

1) Entrepreneurial leadership
2) Problem solving competence
3) Quality of communication
4) Leading people
5) Intrinsic motivation and attitude
6) (international) competences and
   business orientation

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Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Recruiting process DC-Track                                              DC-Track

 Procedure for assessment of potential and for development of talents
     up to leading level C
 Step-wise approach, consisting of a self assessment module, the
     “development center” and the “post development center process”




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Self Assessment Module                               DC-Track




     computer based operational game // individual
     interviews

      self assessment of the own performance potential



     basing upon these results: candidates agree on ‟ in
     cooperation with their decentral personnel developers ‟
     the optimal time for their participation in the
     Development Center
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Development Center                                 DC-Track



 duration: 2 Days

5 different tasks:
     appraisal Interviews, case study, disputation about
     a current LH issue, group-discussion, interview

at the end of the 2nd day: candidates receive a
 differentiated feedback concerning their strengths
 and weaknesses

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Post Development Center Process                         DC-Track




                         the profile of strengths and
                         weaknesses builds the basis for
     the preparation of an individual development
     passport and for the realization of certain
     predetermined measures for further personal
     development


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Multiple goals                                                    DC-Track


     the connection of potential analysis and development  allows
     personnel development which is in line with personal strengths
     and weaknesses  management capabilities can be
     systematically improved
     by the DC-Track, candidates get a differentiated feedback
     concerning their own abilities and areas of performance  based
     on this, they can develop directions for their own further
     development
     following this way, candidates take their professional future in their
     own hands and become entrepreneurs of their own talents

       The Management of LH is able to identify future leaders!

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Content




                                                                   Lufthansa
            Introduction              Definition                   Leadership
                                                                    Compass



                                                    Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                                   Compensation
                 eLLF                 Management
                                                                    and benefits
                                        Grading




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Personnel Development of Executives                 PDE




„ 2 groups which are closely interwoven and harmonized:


 strategic and individual personnel development




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Strategic Personnel Development                                          PDE


„ Derivation of a group-wide strategy of personnel development of executives
  (PDE) ‟ out of the general company strategy
„ Early identification of and reaction to development trends concerning personnel
  development of executives
„ Securing and support of a company-wide quality standard in management,
  based on LLC
„ Conception and implementation of development instruments and programs for
  executives of leadership level A to C
„ Realization of systematic potential assessment and performance assessment
„ Enabling a competence-based personnel development of (junior) executives
„ Optimize hiring for key positions
„ Enabling a group-wide management overview

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Individual Personnel Development                    PDE




„ Assist respective departments with recruitment and
  personnel development of executives (Code of Conduct)

„ Conduct personal development consultations

„ Prepare and optimize measures and processes for
  individual potential diagnosis

„ Coordinate participation in management programs



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     Corporate Management Grading:
     The talent pool C complements the pool                                                                                                                 PDE
     for LL B with high performing LL C talents



     Pool for LL A
                             Leadership Level B
                                                                       Leadership  High
                                                                                                                 Star
                                                                         talent   Potential

                                                                            x


                                                                Slight                                                                                     Pool for LL B
                                                    Low-                  Solid-    High      Top
                                                               Under-
                                                  Performer             Performer performer performer
                                                              Performer




                                                                                Leadership Level C
                                                                                                                          Leadership  High
                                                                                                                                                 Star
                                                                                                                            talent   Potential

                                                                                                                               x


                                                                                                                   Slight
Members of the successor pool for LLB are:                                                             Low-
                                                                                                                  Under-
                                                                                                                             Solid-    High       Top
                                                                                                     Performer             Performer performer performer
                                                                                                                 Performer
1.    High performing executive manager at
      the same leadership level
2.    Apt executive managers from the next
      lower leadership level (Talent pool C)


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Goals talent pool:                                                         PDE
Leadership talents are corporate assets


Optimization of successor management while keeping the de-central
development responsibility:
     „ Accelerating coverage of needs in the „shortages“ of the top leaders

     „ Transparent mobility, performance and development expectancies on
       the part of the company and obligation of the corporate talents to meet
       the “pool criteria” (Code of Conduct)
     „ Intensifying retention of the corporate talents
     „ facilitated controllability of corporate talents for strategic development
       fields (internationalization)
     „ Enabling mergerability and reward of the de-central development
       activities for LL B at the former superiors and the PD departments
     „ increased planning security
     „ easy and fast successor management programs for LL B
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Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Electronic LH Leadership Feedback (eLLF)                         eLLF


  used for the identification of
 individual strengths and areas of
 leadership development


● Online, each executive gets the opportunity to demand feedback on his
  management style from superiors, peers, and staff
● This evaluation is done based on the requirements given by the
  Lufthansa Leadership Compass (LLC): the questioning of collaborators,
  colleagues and superiors allows an evaluation from various
  perspectives (360° feedback).



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Goals                                                                       eLLF

„ Goals of the eLLF:
     The eLLF supports the goals of the participating junior executives, the
     evaluating superiors and colleagues, and of the respective teams/ departments.


 Identifying Potentials: the feedback
   recipients are supposed to notice their
   own strengths and “development fields”
   // they should identify the differences
   between the self-perception and the
   perception by others
 Improving Development: results of eLLFs
   should support feedback recipient at the
   own development planning and make
   possible a targeted selection of
   development activities


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Intention                                             eLLF



Optimizing Performance: constructive feedback 
 making visible of eventual problems in communication
 and work together within a team team/ department 
 optimization of work processes  improvement of the
 performance of the team/ department


Stimulating Culture: Development of a constructive
 feedback culture




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Content




                                                              Lufthansa
            Introduction              Definition             Leadership
                                                              Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Corporate Management Grading 2005                                     CMG

„ Company-wide consistent description of potential and performance of
  executives of all leadership levels:
„ Gradings: company-wide        leadership levels A and B. Management
  Gradings of executives, LL C are conducted in the respective BU ‟ timely
  independent of the Gradings concerning LL A and B.
„ The data for the Management Gradings is gained from a systematized
  process:
 Development of evaluations in a bilateral dialogue between central
  department and the direct superior  basis for the following validation of
  the Management Gradings by the respective executives of the segment or
  concern
 Performance and potential of the candidate are described on basis of the
  LLC criteria
 Documentation of gradings in the “performance potential matrix”
 important basis for further development of executives
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Corporate Management Grading - procedure                                       CMG

„ The valuation of executives: top-down and cascading


                                               Executive Board
       Executive Board
                                            group exec. Management

                             Management A                          Management B




           Management
                                                 Management C
             A and B

                            Management C                             junior staff


● Evaluations are conducted in a grading board (multiple eye’s principle)


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Corporate Management Grading -
Performance-Potential-Matrix (PPM)                                                   CMG


 „ The PPM is used for giving a general (universal) evaluation




                                                Leadership
                                                  talent




                                                               High         Top
                                                             performer   performer




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 Corporate Management Grading - Description                          CMG

● the cockpit chart allows a holistic reflection of the evaluation




 17/10/08   Monika Rühl

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Content




                                                                    Lufthansa
            Introduction              Definition                   Leadership
                                                                    Compass



                                                     Personnel
                           DC-Track                Development
                                                   of Executives



                                       Corporate
                                                               Compensation
                 eLLF                 Management
                                                                and benefits
                                        Grading




17/10/08   Monika Rühl

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Payment ‟ the LH Bonus Model                                         Compensation
                                                                     and Benefits
„ Basis: performance of the employees concerning corporate goals, BU goals,
  and individual goals
„ For each leadership level, a performance bonus is defined which will be paid in
  case of an at least 100%-accomplishment. In case of a performance below
  50%, the bonus is completely ceased.
„ Variation between 0 (underperformer) and 50% of the base salary (LEA)
„ Other elements:
            base salary + bonus             individual offices
            company car & staff car         medical care
            additional pension provision    sovereignty in working hours
            reduced travels                 work-life infrastructure
            car park                        vocational trainings (internal & external)
           …


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             Our goal is to be recognized for our Leadership!




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