The HR Report 2011/2012.

52 Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 Core of personalized HR development: Performance & Poten- tial Review (PPR) and Compass. The linchpin of our HR develop- ment is the valuation of our employees’ and executives’ perfor- mance, competence and potential. A high degree of transparency and comparability aims to ensure that we identify successors and open up challenging, including cross-functional and international career prospects – fostering employee loyalty through precisely targeted support and personalized development. For this purpose, we have the HR development tools Performance & Potential Re- view and Compass. So, for example, participants of the advance- ment programs Perspective Management Program (PMP) and Gen- eral Management Program (GMP) are identified using the PPR ranking and supported appropriately. In 2011, we rolled out the PPR internationally for all employees not covered by collective agreements and for executives. Planning for connecting all inter- national experts to the PPR is already underway. In Germany, this huge step toward Group-wide transparency was followed by a first step toward greater comparability at em- ployee level, also in 2011: Compass, the new annual develop- ment meeting for employees covered by collective agreements and civil servants. Compass enables our employees to precisely assess and put into context where they stand professionally. Thus we reward and encourage good performance and breathe life into our Guiding Principle “Best place to perform and grow.” Career paths at Telekom. Wide variety of development opportunities. While we use the PPR at an international level to assess the potential of our execu- tives and employees in expert, project and leadership roles not covered by collective agreements, with Compass, we focus on advancing employees covered by collective agreements. This development is part of our career paths, which we try to make as mutually permeable as possible: STEP up! for executive development and Go Ahead!, the expert and project career. We completed preparations for the uniform Group-wide roll-out of Go Ahead! in the reporting year. This is scheduled to take place in mid-2012. We launched Go Ahead! in the T-Systems segment in 2011. Regardless of whether a project, expert or management career, the same always applies: we take high performers from within the company, develop them, network them, and prepare them for tasks with greater responsibility. To this end, we have set up a wide variety of development programs Group-wide, for exam- ple under STEP up!. STEP up!: Internationalization of our development programs. Programs include the global Leadership Development Program (LDP) and the German-language equivalent, the FEP executive development program, which is temporarily still available. In this way, we support employees who are preparing for their first man- agement position with greater, permanent personnel responsibil- ity, but also executives on their way to a more advanced manage- ment role. 612 employees and executives took part in LDP and FEP in 2011; 32 percent of them were women. The successful Leadership Excellence Programs (LEP) also support executives in their personal development and in overcoming the challenges they must face once they have made the leap to the next manage- ment level. All programs are continuously improved and further developed in line with the requirements of our participants. International learning, international mobility. International HR development. We support an international and cross-functional mindset at Telekom, among our executives and employees through measures with an international focus: Telekom X-change as an international HR development initiative. Professional programs (PP) safeguard state-of-the-art technical expertise. Many employees take the opportunity to get a Masters degree to crown their high dedication. Master Classes address selected top performers from Go Ahead! at the European level.

The HR Report 2011/2012.

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