LEADERSHIP 2020 CULTURAL CHANGE AT DAIMLER

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1 LEADERSHIP 2020 CULTURAL CHANGE AT DAIMLER

2 WHY?

3 NEW MEGATRENDS NEW COMPETITORS DAIMLER STRATEGY Industry 4.0 Big Data Internet of Things Global Networking Digitalization Artificial Intelligence Always On Alternative Drives Generation Y/Z Tesla Uber Google Apple Dyson New Start-ups Shape the Future of Mobility: Technology Leadership and Innovation Delighted Customers Profitable Growth Best Team

4 DAIMLER STRATEGY Shaping the future of safe and sustainable mobility DAIMLER STRATEGY

5 OUR CLAIM We invented the automobile and with passion we create it s future As pioneers in the automotive industry, we consider it our claim and our commitment to continue this proud tradition and to make the mobility of the future safe and sustainable We stand for profitable growth, for the most valuable and fascinating brands in the automotive industry and for offering our customers outstanding products and services That is what we work for and what we strive for - in everything we do 4

6 OUR STRATEGIC FIELDS OF ACTION Global Core Business Daimler Leadership

7 CULTURAL CHANGE

8 WE CREATE OUR VISION

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14 THE LEADERSHIP 2020 JOURNEY SO FAR APPLICATION PHASE GLOBAL WORKSHOPS SPRING 2016 ESTABLISHMENT BASECAMP END OF MAY 2016 SET UP SQUAD STRUCTURE CREATING AWARENESS AUTUMN 2016 ROLL OUT THE CHANGE END OF 2016/ BEGINNING OF 2017 SPREADING SPIRIT & ACHIEVEMENTS STARTING MID 2017 AND NOW YOU TODAY KICK-OFF WITH PRINCIPLES & GAME CHANGER APRIL/MAY 2016 VIRAL NETWORKING WITH CONNECT STARTING MID 2016 LEADERSHIP SUMMIT MAY 2017

15 WHAT?

16 NEW PRINCIPLES

17 PASSION. INTEGRITY. DISCIPLINE. RESPECT.

18 HOW?

19 START BEFORE YOU RE READY

20 BE BOLD

21 GO VIRAL 144 FROM 144 TO285,000

22 EXPERTS ONLY THE CLASSICAL CHANGE APPROACH HUMAN RESOUR- CES CENTER OF COM- PETENCE SHARED SERVICE HR BUSINESS PARTNER ORGANIZ- ATIONAL DEVELOP- MENT ORGANIZ- ATIONAL DEVELOP- MENT

23 BEST OF VIRAL & CLASSIC THE NEW CHANGE NETWORK BY EXPERTS & INFLUENCER BASECAMP SATELLITE BASECAMP YOU & ME CENTER OF COM- PETENCE ORGANIZ- ATIONAL DEVELOP- MENT 144 HR BUSINESS PARTNER HR AGENTS GAME CHANGER L1 CONTACTS PACE- MAKERS AMBASSA- DORS

24 BRINGING PRINCIPLES TO LIFE

25 LEADERSHIP2020 CHANGE IN PROGRESS CHANGE IN PROGRESS

26 GAME CHANGER

27 FEEDBACK CULTURE PERFORMANCE MANAGEMENT LEADERSHIP ROLE & DEVELOPMENT BEST FIT DIGITAL TRANSFORMATION SWARM ORGANIZATION DECISION MAKING INCUBATOR

28 GAME CHANGER: FEEDBACK KULTUR 27

29 WHY DO WE NEED IT? An honest and open feedback culture enables us to learn fast and stay competitive. In the increasingly more dynamic market environment, we have to operate faster and more flexible And the more agile we become, the more important quick and transparent feedback becomes In an open and trustworthy feedback culture, the employees make progress, learn from mistakes, become faster, and drive innovation In this way, we can focus on profit-making ideas and move forward both individually and as a company

30 WHAT S THE SCOPE? Feedback App Echo Implement feedback app to encourage the integration of feedback in our daily business MyFeedback Integrate personal feedback from multiple perspectives into performance management process Employee survey Replacement of the current employee survey for targeted, objective and transparent evaluation of corporate culture and for targeted tracking of the ongoing change processes in the organization

31 GAME CHANGER: FEEDBACK KULTUR 30

32 WHY DO WE NEED IT? "Our company will only be successful in the future if we continue to encourage our employees" Our success depends on the performance of our employees; we need to focus on their development & optimize the framework for individual development of both employees and leaders We emphasize team success and with that, our company s success even stronger than before We also need to make the new leadership principles measurable; they are the basis for performance evaluation Therefore we need fair, transparent, and intuitive processes

33 WHAT S THE SCOPE? Develop & implement a new Performance Management process & IT system which fosters agility through flexible cycles and definition of individual contributions supports the new Leadership Principles; puts a strong focus on meaningful leadership fosters flexible and targeted employee development integrates multi-perspective feedback empowers employees and leaders to drive their own development

34 GAME CHANGER: FEEDBACK KULTUR 33

35 WHY DO WE NEED IT? For the challenges of tomorrow we must use the ideas of all employees and become faster in their implementation. Markets and competitors change; innovative ideas hit the road increasingly quickly We must therefore offer even more encouragement for new business models, products and services throughout the entire organization The incubator promotes pioneering spirit and makes room for ideas and inventions of our employees regardless of which unit or department they come from Company-wide processes, an appropriate infrastructure and expert support needs to be secured

36 WHAT S THE SCOPE? Make creativity and intelligence of all employees usable Secure and improve competitiveness Generate new business models Four focus fields: Crowd funding & ideation, community of practice, incubation, cultural change

37 GAME CHANGER: FEEDBACK KULTUR 36

38 WHY DO WE NEED IT? We have to promote and develop digital thinking and digital activities to enable us to innovate as well as operate faster and better. Digitalization is requirement and key for future success To keep up with the market we need to promote digital expertise and digital thinking in the company To use the full potential of digital collaboration we need to expand our digital infrastructure We need to utilize our own potential: Sharing knowledge, making projects better and more efficient, and integrating all employees into the network

39 WHAT S THE SCOPE? Digital Leadership Enable leaders to foster digital thinking & collaboration among their teams and be a role model for modern work; introduce learning formats such as a digital drivers license or reverse mentoring Enablement Enable employees in all areas blue & white collar to work digitally; provide digital tools & infrastructure to make collaboration more efficient; easy & self-responsible access to IT equipment & software; connect blue collar workforce to IT infrastructure Digital collaboration Connect employees and enable exchange; foster a culture of open and transparent communication

40 GAME CHANGER: FEEDBACK KULTUR 39

41 WHY DO WE NEED IT? We can only be successful in implementing all structural changes and realize our joint vision for the future with a new culture. A new culture is achieved by changing mindsets and shaping behaviors While a new culture applies to all of Daimler, leaders bear the responsibility to drive, allow, and foster it within themselves and their teams Here leadership principles provide a framework and orientation Change requires professional support; experts & coaches accompany the change process and support where needed New learning formats use the collective experience of all managers, encourage exchange & joint development

42 WHAT S THE SCOPE? Define & operationalize the eight Leadership Principles Purpose, Agility, Empowerment, Driven to win, Pioneering Spirit, Learning, Co-Creation, and Customer Orientation Ensuring awareness & understanding of the new leadership principles in the organization Define behavioral anchors to describe how the Leadership Principles can be applied and evaluated Actively support all leaders at Daimler with tools and trainings

43 GAME CHANGER: FEEDBACK KULTUR 42

44 WHY DO WE NEED IT? We must conquer new markets, develop innovative new products & business models in order to stay successful. New markets, customer demands, and competitors require speed, agility, and innovation To achieve this we need new, agile forms of work collaboration as an addition to the structures that have made us successful so far We call this new form of organization a "Swarm Organization". With it we want to encourage self-organization of individual employees and employee groups, autonomy and speed, and in this way ensure and sharpen our competitiveness.

45 WHAT S THE SCOPE? Swarms@Daimler Upscaling Swarms, Swarm Hubs, Swarm Facilitation Change Management & Coaching Concept Swarm Coaching Pool, Organizational Development Tools e.g. visualization Tool Agile & Swarm Training

46 GAME CHANGER: FEEDBACK KULTUR 45

47 WHY DO WE NEED IT? We have to decide faster in order to give ourselves decisive competitive advantages in a dynamic environment. In the digital era, it is often more important to be fast than to wait for the perfect solution We achieve this speed through employees who are empowered to make independent decisions based on their expertise & in the interest of the entire company This leads to significantly shorter decision paths We have to support our managers to promote and allow for the new decision making processes This simultaneously creates more room for important decisions and strategic projects that take the company forward

48 WHAT S THE SCOPE? Global Approval Processes Streamlining approval processes of global relevance & implementing trust and empowerment in approvals Core Decision Making Processes Enabling the change in core decisions, e.g. development, production, investment & improving decision making architecture, including e.g. committees, steering model, crossdivisional decisions Expertise Management Knowledge generation via best practices, external input & knowledge distribution via workshops, knowledge tools and resources Viral change implementation Support of local implementation, promoting best practices around the globe & facilitation via virtual community and toolbox

49 GAME CHANGER: FEEDBACK KULTUR 48

50 WHY DO WE NEED IT? "We need the right person, the right expertise and the right competencies for the right positions. Then we can remain successful in the future. The market changes rapidly. Keeping up with the development increasingly requires new and different expertise and approaches We need to provide more room for individual strengths and education, and to create new development paths e.g. for experts in order to drive our business forward Transparency about open positions and staffing processes across divisions and markets are becoming increasingly important We encourage employees to go in new directions in line with their potential, and to take their personal development in their own hands

51 WHAT S THE SCOPE? Best Fit Placement Create globale transparency about vacancies and candidates; integrate different stakeholders in placement process Dynamic Leadership Model regular evaluation of leadership positions; increase cross-divisonal/-functional and regional changes Multiple Development Paths Establish two roles: Leaders & Experts

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