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The HR Report 2011/2012.

Linking the HR strategy with the Group strategy.

24 Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 Shape transformation with HR work. Through our HR work we shape the Group’s transformation as it becomes an efficient ser- vice company in its classic core business. At the same time we support innovation in the strategic growth areas. Our HR strategy is focused on four key elements: 1. Add Value. The HR department ensures HR productivity by reinforcing the workforce’s competitiveness. In a very dynamic industry with fierce price pressure, one particular challenge is to have access to the right HR resources – in the right numbers, at the right time, with suitable skills and competencies – with a structure that fits and at an acceptable cost. To this end, we have set up qualitative HR planning. By drawing on its core compo- nent, Total Workforce Management (TWM), the HR Business Part- ner advises management, thus ensuring transparency and qual- ity of HR decisions for many thousands, if not tens of thousands of employees. TWM records many different skills profiles and can therefore simulate the consequences of various business sce- narios on HR work, such as with hybrid broadband expansion in Germany. In this way, HR can, on the one hand, provide suitable experts in good time or, on the other, look for alternative employment op- portunities. All of which provides us with a solid decision-making basis for issues such as HR development measures, the requisite vocational training structure, the number of apprentices or direct entrants over the next few years or for the HR feasibility of busi- ness models. Moreover, we also source services from freelancers or external service providers, through offshoring for instance. HR – a partner for business. Linking the HR strategy with the Group strategy. The HR department makes important contributions to the three cornerstones of the corporate strategy, Fix – Transform – Innovate. ƒƒ Fix: We support good business performance by consistently improving productivity – in particular by reducing the personnel cost ratio. ƒƒ Transform: Deutsche Telekom safeguards its lead in integrated markets and pushes forward with the expansion of the gigabit society. In this respect we have contributed by improving the service culture and quantitative/qualitative HR planning, for instance for the network expansion experts. ƒƒ Innovate: We support the corporate goal of becoming a leader in connected life and work by con- tributing to an innovative, open culture and promoting forward-looking talent management. The interplay between HR mission, action areas and principles of the HR strategy. HR@2012. “As a partner to business, we deliver top quality.” Competitive workforce. “We add value with Total Workforce Management.” Talent agenda. “We recruit, retain and develop talents in expert and management functions in keeping with the business goals.” Service culture. “We support the transformation into the most highly regarded service company through professional, business-driven change man- agement.”