The 2009/2010 Human Resources Report

In order to turn our Group vision into action for our customers, HR supports the fundamental transformation of Deutsche Telekom to “One Company.”

Team 8|9 Transformation culture for One Company. Service leadership: Unique features of the Service Academy. The core element of the leadership qualities required for our management staff is to set a good example in service orientation – and therefore our Guiding Principles – at all times. The Service Academy was founded at the end of 2007 for executive staff in Germany, and many comparable schemes in our national companies serve the same purpose. The participation rate in the programs lies at almost 100 percent. Only a few service companies in Ger- many and around the world present their executive staff with such an inten- sive, fundamental challenge in terms of their personalities, conduct and in- dividual impact. In January 2009, the second phase of the Service Academy was launched. The objective in 2009 was to ingrain the service philosophy that had been communicated in previous years even more firmly in execu- tives’ minds and in day-to-day work. In this way, we lay the cornerstone for stronger dissemination of our new service culture not only among the ex- ecutives’ own teams but also in cross-functional collaboration. The response to the Service Academy has been more than positive. Not only do 86 per- cent of the executives interviewed see it as being helpful for Deutsche Telekom on its way to becoming the industry’s most highly regarded ser- vice company, 97 percent would also recommend the Service Academy to colleagues. We use the Telekom Storybox to help us communicate a com- mon understanding of the culture of transformation in our strategy, brand, service and values; its building blocks consist of presentations, films and exercises that help executive staff throughout the company in the strategy dialog with their teams. The monthly event for newcomers to the Group, Welcome@Telekom, has the same objective. “Change House”: Assistance for a changing company. HR has opted for Group-wide, professional and systematic change management in order to ensure that our employees embrace the comprehensive culture and structure transformation brought about by One Company in their thoughts and actions. However, change management is also necessary to ensure that difficult and painful reorganizations can be made as humane as pos- sible. Since 2009, HR has bundled and standardized the company’s vari- ous change management tools and initiatives under the name “Change House.” They cover, for example, Group-wide change quality standards, establishment of a pool of internal and external change experts, building a worldwide change community, and implementation of skills development measures throughout the Group. The “Change Navigator” is the foundation of the “Change House”: This intranet platform supports business partners, change experts and management in determining, drawing up and imple- menting the necessary measures for a change process. The navigator also indicates appropriate resources and tools that have proved to be best prac- tices within the Group. This tool is thus a valuable addition to the personal, professional support for change processes through change experts opera- ting around the globe. -4 -3 -2 -1 0 1 2 3 4 Customer complaints halved, more successful first contacts, in %. Employees in our Germany business increase customer satisfaction. More satisfied customers in Germany. Customer retention 2009 increase, in points. Decline in customer complaints -51 Customer requests solved during first tele- phone contact +24 Q 4/2008 Q 4/08 Q 4/08Q 4/09 Q 4/09 Q4/2009 Strong improvement: customer retention in broadband and postpaid customers greater than the competition, in points. Average of competitors Lead in points (TRI*M) over competition for broadband customers (T-Home) and postpaid customers (T-Mobile direct customers) Basis T-Home: consumers with broadband connections, n = around 1,100, varied by wave, average from total of competitors Basis T-Mobile: postpaid customers (direct customers ), n= around 700, varied by wave, average from total of three competing mobile operators Source : TRI*M surveys TNS Infratest 2008/09 Basis: consumers T-Home and T-Mobile post-paid customers (direct customers) Sample size varies by wave, at around 2,000 (T-Home) and 1,200 (T-Mobile) Source: TRI*M surveys TNS Infratest 2008/09 T-Mobile T-Mobile T-Home T-Home + 5 + 1 Contents