Managers with the personality to motivate a team of employees are a key factor in the success of our Company. Henkel uses a range of tools and methods to identify and foster the potential of future managers. The Code of Teamwork and Leadership defines the general framework within which managers should operate and gives them clear guidelines for decision-making. The “Management Competencies Assessment” (MCA) serves to promote professional development. In the “Leadership Dialogue,” managers with supervisory duties receive direct feedback regarding their leadership performance from the members of their teams. Through the “Triple Two” concept, junior managers are prepared for the demands of higher management by being given at least two different tasks in two business sectors and in two countries.

To improve leadership quality, we have developed a globally uniform, modular training concept for employees with managerial responsibility. The programs are tailored to the requirements of the different management levels and are offered locally, regionally or centrally, depending on the target group. The People Leadership seminar provides basic knowledge, while the Team Leadership seminar is aimed mainly at improving performance through self and team management. For the top managerial level, we have developed a special, globally oriented Strategic Leadership program in cooperation with the Thunderbird Business School in Glendale, Arizona, USA.

Systematic and regular feedback is a key prerequisite for assessing and nurturing individual and team performance and leadership skills. For many years now, we have employed different feedback instruments like our leadership dialogue, which allows employees to anonymously assess the leadership skills of their supervisors and subsequently engage in a constructive dialogue.

In 2007, we expanded our established feedback processes, focused them more strongly on the definition of improvement measures. In addition to the already existing Management Competencies Assessment and Leadership Dialogue that cover the interaction between managers and the staff reporting directly to them, it is now possible for colleagues and internal and external customers to be included in the feedback process.

The feedback is collected anonymously through an independent institute. With the help of questionnaires, aspects such as social competence, information handling, cooperation within the team, and readiness to give and take criticism are assessed and compared with the manager’s self assessment. The results are sent not only to the relevant supervisor but also to human resources management. This ensures that, when problem areas are identified, human resources management can intervene by initiating a compulsory coaching process. On this basis, strengths and weaknesses are then discussed in a dialogue. An action plan and specific measures to improve the work climate are defined and implemented.

With the purchase of the National Starch adhesives businesses, we faced the challenge of integrating about 6,000 employees in 40 countries on six continents as quickly as possible. In the lead-up to “day one” – April 3, 2008 – we compared the corporate cultures of National Starch and Henkel and interviewed around 1,000 employees at both companies. The corporate cultures showed many more similarities than dissimilarities. Only the organization model and the decision-making processes differed. Following an analysis of the newly acquired businesses and the introduction of a modified organization structure, we were able to rapidly create a basis for joint development by the end of the second quarter of 2008. It was found that both companies also use similar instruments and philosophies in their human resources systems. Already, just one year after the merger of the businesses, harmonization of the personnel systems has facilitated many synergies in human resources management. Furthermore, the human resources data and payroll accounting systems will be harmonized in the first half of 2009.

Our Social Standards include a commitment to support the freedom of association of our employees. The interests of 75 percent of our employees are represented by works councils, independent trade unions, or similar bodies. In countries in which no plant representation is provided for or has been established, a dialogue with our employees serves as a voluntary and informal instrument for ensuring an open exchange of views. Employee representative bodies, local works councils, and trade union representatives form a common platform for exchanges of views and consultation with management. We inform the employee representatives as promptly as possible, in as much detail as possible, and at regular intervals, about, for example, our corporate strategy and any planned acquisitions.

The information and consultation processes are most extensively established in Europe. In 1995, Henkel was one of the first German companies to voluntarily set up a European Works Council (EWC) to continue the successful cooperation between management and employee representatives at the European level.

Through the EWC, Henkel informs the representatives of its European companies about matters such as the economic situation, transnational initiatives of the Company such as restructuring or reorganization programs, safety, health and the environment, and training and development programs. Henkel informs and consults its employees´ representatives before decisions are made. This helps Henkel to identify possible problems at an early stage, so that solutions can be found, and it reinforces its employees´ sense of identification with the Company.