TRANSFORMATION = PEOPLEMANAGEMENT (DMR BLUE - DETECON - BEST PRACTICE)

DeteconManagementReportblue•2015
Transformation
= Peoplemanagement
www.detecon-dmr.com
DMRDetecon
Management Report
2015
blueSpecial
INTERVIEWS WITH
Frank Dopheide, Verlagsgruppe Handelsblatt
The Manager as a Brand
Dr. Markus Müller, Deutsche Telekom
Telekom IT: More than Just an IT Service Provider
Dietrich Franz, DHL Supply Chain
After the Transformation Is Before the Transformation
Daniel Markwig, SAP
The AppHaus
Jens Bode, Henkel Laundry & Home Care
Ideas Come from Inspiration and the Interaction of People
Various artists have taken a fresh approach to the interpretation of our fields
and made major contributions to the design of our new Web site.
Pay us a visit at www.detecon.com
We have provided a public stage for art.
Art meets Consulting
Detecon’s business fields put us right in
the middle of one of the most exciting sea changes of
our time: the networking of global information and communications.

1 Detecon Management Report blue • 2015
Dear Readers,
Global markets today are dominated by a merciless battle: ICT is causing market entry barriers
to fall left and right, while large corporations and incumbents face never-ending threats from new
agile startups which practically redefine the markets overnight. This is the environment forcing
companies to reconcile the demands for efficiency with the power of innovation into a harmoni-
ous whole – a feat comparable to squaring the circle. The talent market has become global and
keenly competitive as well because supply and demand are transparent.
The order of the day: anchoring transformation competence in corporate DNA as a fundamental
prerequisite for the competitiveness and survival capability of companies and business models.
This involves more than just the obvious tasks of implementing new structures and organizational
forms; it demands a culture of willingness to change and “wanting to reinvent oneself constant-
ly” – a culture of innovation. But how do you go about anchoring a culture of innovation in the
company? What are the major factors for success? To find out, we talked to Jens Bode, an expert
at Henkel, Dr. Markus Müller from Deutsche Telekom AG, or Thies-Christian Bruhn, General
Manager of Kempinski.
The “knowledge society” has long since become reality. The employees – or, to be more precise,
the oft-cited “knowledge workers” – are the critical asset for assuring success. All of the other,
repetitive processes and standard procedures will be automated in the future. The future of work
will concentrate on the optimal handling of knowledge, the build-up of transformation compe-
tence, and the exploitation of the diversity of potential among employees. Transformation and
people management must work hand in hand to generate expertise as a single entity. The situation
includes a great opportunity for HR departments to redefine themselves completely and to secure
for themselves a proactive role as “transformation coaches” in shaping companies. We show how
this can be done within the framework of our analysis of the “Future of Personnel Management”.
The discussions in this issue will once again cast an intense spotlight on the question of what
characterizes high-performing teams, the people who are the foundation of successful organi
zations. The conversation with Major James Mullin III from the US Army about teams in extreme
situations provides interesting insights, as do the academic findings of Professor Irene López from
the Cologne Business School.
Along with Frank Dopheide, general manager of the Handelsblatt, we delve into the question
of what elements of traditional brand management can be transferred to the positioning of top
managers and how important this is for the sustained success of a company.
I hope all of you enjoy reading these provocative articles and that you will be able to make use of
what you can learn from them in your daily work.
Sincerely,
Marc Wagner
Partner
Global Head Transformation, People Management, and HR
Transformation
= Peoplemanagement

Editor:
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DMR@detecon.com
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Photos:
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Content New Working Worlds
Work Where YOU Want to … 4
Interview with Dr. Bernhard Zünkeler, Forschungsinstitut artlab21
Molding the Workplace of the Future: A Fresh Breeze
for Difficult Tasks and Innovation 8
Interview with Daniel Markwig, SAP AG
The AppHaus 14
KAIZEN – Beyond Process Optimization
Regarding the Mining of Kaizen Potential and
Its Implementation in Daily Project Business 20
Interview with Jens Bode, Henkel Laundry & Home Care
“Ideas Come from Inspiration and the Interaction of People” 22
Interview with Dr. Heinrich Arnold, Telekom Innovation Laboratories
To Boldly Go where Telekom Has not Gone Before“ 26
Interview with Dietrich Franz, DHL Supply Chain
After the Transformation Is Before the Transformation 30
Interview with Dr. Markus Müller, Deutsche Telekom AG
Telekom IT: More than Just an IT Service Provider 36
Interview with Michael Leistenschneider
„Telco Landscape with Inestmable Drive“ 40
Digital Transformation Calls for a New Culture of Services
He Who Serves, Wins 46
Interview with Thies-Christian Bruhn, Kempinski Palace Portoroz
„The Fundamental Prerequisite for Me is the
Personality of the Individual Employee“ 50
ICT4Development
How Communications Technologies Can
Save the World 56
Pro bono Project with Africa Rise e.V.
How Digitalization Can Further
Education in Africa 60

World Business Dialogue
Consultants and Students Look for Answers to the
Challenges of the Future 64
Interview with Frank Dopheide, Managing Director of Verlagsgruppe Handelsblatt
The Manager as a Brand – Competitive Advantage
in the Digital Age 68
Culture Change at Deutschen Telekom AG
Lead to Win – Deutsche Telekom‘s New
Leadership Ambition 74
Interview with Major James E. Mullin III, U.S. Army
“War is a Chaotic Enterprise” 78
Interview with Prof. Dr. Irene López, Cologne Business School
High-performing Teams Support the
Competitiveness of Company 84
Intercultural Leadership
Trust as the Basis for Successful Project Management
in Central and Eastern Europe 88
Magenta MOOC, Deutsche Telekom AG
Virtual Collaboration in the Entrepreneurial Context 92
Interview with Daniel Eckmann, Detecon International GmbH
„No One is Really Good without a High Positive
Energy Level!“ 96
Plan Strategically – Operate with Excellence
The Future of HR Management 100
Future HR
New Challenges for Strategic HR Development 104
HR in the Cloud
Cloudy to Sunny? 108
The Authors 111

New Working Worlds
Work Where
YOU Want to ...
Sales and labor markets are characterized by disruption. What should companies do to
deal with it? There is no end to the ideas for the design of work(places). But maximum
flexibility in this context is subject to the achievement of a cultural transformation – and
that takes staying power.

where you want ...
“Disruptive” is a buzzword which large corporations in particu-
lar regularly find confronting them. New technologies give rise
to completely new markets in record time – then cause them to
vanish again. Market entry barriers in the traditional sense no
longer exist, while the “pole position” believed to be so secure
turns into a place at the back of the pack overnight. Writers
frequently point to Nokia as an example of what can happen,
but it is not alone. The monolithic structure of the entire media
and magazine publishing industry is breaking up into its indi-
vidual components. Many industries must suddenly deal with
completely divergent challenges and sectors. Automotive giants,
for instance, now find themselves threatened by Internet corpo-
rations such as Google; only a few years ago, such competitors
could safely be ignored because they were “irrelevant for the in-
dustry”. This development has been fired in no small degree by
the enormous technological progress in the ICT sector; no longer
viewed as simply an “enabler”, it is regarded now as THE unpa-
ralleled “disruptor”.
Moreover, incumbents especially are caught up in a merciless
struggle involving much more than their sales market – globali-
zation and new companies such as Google, which in the eyes of
high potentials are far more attractive, have initiated a bitter fray
to acquire the best young talent of the future. The “war for talent”
is reality – in no small part because knowledge workers represent
the strategic asset, the differentiation edge for companies, and
secondary processes are becoming more and more automated or
(in part) shifted over to the customers. So the loss of “top perfor-
mers” to the competition can quickly turn into a serious problem
because these employees take with them knowledge advantages.
Another challenge for companies comes from the sharp decline
in loyalty to a specific company, especially among high potentials.
The task and an exciting environment top their list of desirable
attributes; the “great name” is no longer decisive. So companies
are operating in a disruptive environment on the labor market
as well.
Maximum flexibility and adaptability are the order of the
day – a matter of viewpoint
This is especially true for large corporations. They must deal with
a range of different challenges, all of which are cropping up at the
same time. The maximum flexibility demanded by the market
extends to virtually all areas of work design, including working
hours or the working location. If they do not have structures
characterized by maximum flexibility and flowing parameters,
companies are vulnerable to the forces of change and lack res-
ilience. Ultimately, the transforming power of disruptive tech-
nologies ensures that traditional working methods and processes
as well as rigid hierarchical structures and line organizations can
no longer keep up with the pace. In addition, the question “Is
big still beautiful?” must be asked. Companies with a workforce
numbering in the hundreds of thousands (and we can find plenty
of them among the DAX 30 corporations) lack the agility men-
tioned above.
Flexible working hours, parental leave, tandem solutions, job
rotation, sabbaticals, or home office and mobile working are only
some of the catchwords making the rounds today. The opportu-
nity to schedule working hours flexibly is a fundamental prere-
quisite for agile structures and the ability to adapt for companies.
However, complex regulations related to the protection of jobs
and provisions in collective bargaining agreements or even in
individual agreements within a single company are frequently a
hindrance, especially in Germany. In global corporations, their
internationality itself can lead to a virtually impenetrable jungle
of agreements which must be taken into account when schedul
ing working hours.
Maximum ability to change is decisive for the determination of
the physical work location as well, and the desire to cut costs is
by no means an insignificant factor here. However, at the time
the occupancy of a property is planned management cannot truly
predict who will actually move in when the building has finally
been completed. The continuous changes in corporate structures
make planning almost completely impossible. Flexible utilization
of office space must today be integrated right from the planning
stage for new office buildings. The property becomes future-
proof because a response to new demands in working structures
is possible at any time. The objective must be to create the ap-
propriate working environments which can be used by different
employees for varying activities – whether for work demanding
mental concentration, creativity sessions, meetings, or for quiet
and relaxation.
In line with the heading of “activity-based working”, the inte-
rior design follows the requirements resulting from employees’
activities. Zones providing conditions for mental concentration,
fostering creativity, supporting project work, or (especially) infor-
mal communication are only some of the possible permutations.
So-called “desksharing” is becoming the standard – regardless
of the hierarchy in place. In its “maximum manifestation”, ma-
nagement and employees share the workplaces in an open office
structure because most of the confidentiality requirements, for
instance, can be covered by providing retreat rooms and lockable
containers. The so-called “cellular office” has come to the end of
its service life. After all, work is an activity which, owing to the
spread of knowledge work, is not tied to a specific location and
„

can be done from anywhere: at home, while on the go, and, of
course, in an office. In some cases, it becomes possible to reduce
the required floor space in office buildings drastically, leading in
turn to substantial cost savings.
However, it pays to keep in mind that agile and flexible working
structures of this type clearly make the management of employees
more demanding. New regulations and agreements are required.
Where do I now find my colleagues? When is my employee/
colleague at home and when in the office? How can I hold my
regularly scheduled meetings with employees who are scattered
all around the globe? How can I assess employees when I can-
not constantly observe their work? How is it at all possible for
me to monitor what my employees do all day long? How am I,
the manager, supposed to evaluate performance at all under these
conditions?
A culture of results rather than physical presence? Yes, but ...
Unless there is the oft-cited transformation of culture, nothing
will change. But implementing such a transformation is easier said
than done. Endurance and perseverance are required for a funda-
mental transformation of culture. Large corporations especially
often run up against open and – even more dangerous – hidden
resistance as soon as changes are scheduled for implementation.
Quite often, the factor leading to blockades is managers’ fear that
they will lose control. But anyone who wants to successfully flexi-
bilize working hours and locations must build up a genuine cul-
ture of trust. If such a culture is not consistently instilled throug-
hout the organization, the project is doomed to failure. Managers
must understand: the “command and control” model belongs on
the garbage heap of obsolete management styles.
Clear communication and participation are the drivers criti-
cal for success when establishing a culture of trust. Managers
and employees must talk to one another, or flexible working
environments will not be viable. The aim must be to create trans-
parency regarding personal reachability and activities which have
previously been agreed by the parties and which serve as the ba-
sis for the performance assessment. This supports a course away
from a culture of physical presence and toward one of results.
While on the subject of clear agreements: dealing with one ano-
ther in an open, flexible office world is not possible without rules
of the game. The “clean desk” principle must live and breathe
– dirty dishes, family photos, or personal papers on the desk are
taboo because the employee’s “own” desk may be used by one
of the colleagues the next day. Moreover, people must be more
considerate of others when talking in the “office”. Loud phone
calls, a chat at the neighbor’s desk, or spontaneous get-togethers
of colleagues outside of the meeting zones must be avoided. Ex-
cesses like this can be nipped in the bud by engaging all of the
“office residents” in drawing up an “open office manifesto” and
accepting responsibility for its observance.
Source: Detecon
Figure: Workforce of the future
Old world: one working place
for all activities
At home
Activity-based working
On the go In the office
Open office worlds Think tanks Creative spaces Reteat rooms

Our experience and the feedback from many different implemen-
tation projects have indicated that flexible, especially virtual colla-
boration functions and is accepted only if the right infrastructure
is in place and is absolutely reliable. Otherwise, the acceptance
level for the models described above will quickly reach the end
of its tether and employees will again start concentrating their
work in physical presence meetings in the office. Repeated and
frequented interruptions of video conferences, inadequate band-
width, or slow laptops are only some of the killers for acceptance.
Change management or ... believers needed!
Confronted with the demand to consider the dimensions people,
work location, and infrastructure all at the same time and the
enormous complexity of this field of work, however, many com-
panies ask themselves how a rigid organization with traditional
“command and control” management style, functional silos, and
a “culture of physical presence” can possibly be transformed into
a flexible and agile enterprise. Before long, the calls for “change
management”, for costly change tools and formats, become loud
– in no small part because the contrary interests of social part-
ners, facility management, HR department, and business units
must somehow be reconciled with one another. But if all of these
entities are to pull together in the same direction and if a true
change in behavior is to occur, two fundamental preconditions
must be assured: the support of top management and the resolute
promotion of disseminators. True believers must be found so that
the status quo does not surreptitiously dig in behind the façade of
OLD
WORLD
NEW
WORLD
Department, Hierarchy Team, Network
Time, Control Results, Trust
Supervisor, One Way Coaching 360 Degrees
Work = Place Activity-based Working
Line Work, Department Project, Team
Smart
Working
Learn more about the subject of the
“New Working Worlds and Smart
Working” by going to:
www.detecon.com/en/Expertise/
Consulting_Areas/Transformation
the brave new office world and the theoretical work models. The
guiding principle: do not bite off too much at once, but imple-
ment the transformation into a new working world in small and
digestible steps. The conduct of managers is of enormous signifi-
cance. They must incorporate the principles of the new, flexible,
and often virtual working cultures in their own performance and
encourage the employees to do likewise. Without this approach,
long-established processes will never give way slowly to newer,
flexible structures.
The positive and financial effects will be felt a little at a time.
This is why the immediate question during a holistic redesign of
the working world should not be about the business case. The
high cost savings and increases in productivity documented in
numerous studies can be achieved only over a sustained period.
The first step is to convince the top management that the work
flexibility described here will contribute to the long-term success
of the company – as well as prepare it more effectively for disrup-
tive changes!

Molding the Workplace of the
Future: A Fresh Breeze for
Difficult Tasks and Innovation
Interview with Dr. Bernhard Zünkeler, Founder of the Research Institute artlab21
Thoughts are free, according to an old folk song. But if you have ever been engulfed
by everyday office life, you know perfectly well that thoughts are far from taking off in
free flight. Future Work concepts step in here to secure liberties and to create a working
environment offering stimuli and inspiration for “breaking out of the daily madness.”

DMR: Future Work is a buzzword now making the rounds; many
companies are giving it serious consideration. What do you think
has stirred such great interest in this subject?
Dr. Zünkeler: I believe that there are two fundamental aspects
here. One is that we have reached a point where most employees
have run up against their limits in terms of communication
technology and how much more information they can pro-
cess. We are interconnected as never before and we act within
a global context – everything has to be done right now and
immediately and always using a number of different media at
the same time. You reach a point where you ask yourself how
efficient and sensible all of that really is. It’s wonderful that we
are all interconnected with one another, but there aren’t any real
rules for dealing with the situation, and we are more likely to
have the feeling of a “hamster on its wheel”. We struggle in vain
to keep up and suddenly realize that many of the things which
once provided us with a quiet or protective zone no longer exist.
Whether we are in our own office or in the Italian restaurant
around the corner in the evening, we are always reachable and
feel like we must always be ready to perform. This is paralleled
by phenomena which are known in today’s world as burn-out.
But in truth, this is a perfectly natural defense reaction in the
sense of “Look out, I’m now going to pull the plug on all of
those people who want to rule my life.” This is not really a sign
of illness; it is a personal response to the phenomenon of the
employee as a “jack (and master as well) of all trades”. This is
exactly where Future Work can provide an answer or a concept
so that it never reaches this point to begin with.
DMR: ... or perhaps a driver and accelerator for this trend. What
must we keep an eye on here?
Dr. Zünkeler: That is a good point. Depending on how you
interpret “Future Work”, it can of course have the effect of
raising the level of acceleration and reinforce the consequences
described above. Since work can be done from anywhere today
and the concept of “work life-balance” can practically be deleted
from dictionaries because there is no longer any real separati-
on, a Future Work concept must counteract exactly this situa-
tion – by creating quiet zones, quiet points, and opportunities
to break away from the complete domination of our lives by
others. In my opinion, this also means in particular granting
new freedom to employees and ensuring that the created envi-
ronment offers stimuli and inspiration which make the “break-
out from the daily madness” possible. This topic is intertwined
with generational issues as well. A younger generation certainly
feels differently about this. On the one hand, they are much
more relaxed in dealing with the subject of third-party deter-
mination. On the other hand, they alleviate some of the stress
by being more fluid in their agreements. I am an Internet im-
migrant and still remember well the days when appointments
were canceled only in exceptional cases. Today people tend to
move slowly toward each other when setting appointments or
the content of discussion; sometimes it takes three emails and
four text messages to come to a binding agreement. That is how
fluid things have become, and a younger generation is more
likely to be accustomed to this and develops intuitively “defense
mechanisms”.
DMR: What about the quality of the work being done by employees?
How productive are they in this complex, highly interconnected
workplace which is being flooded with information?
Dr. Zünkeler: The quality of the work is for me the second
aspect why Future Work is in such high demand. At some
point, we start to ask ourselves just how effective and crea-
tive employees really can be if they are driven constantly, and
how do we deal with this constant state of communication?
Creativity does not necessarily light up when a person under
stress attempts to work in three media at the same time; it pre-
fers places where the circumstances are different. I’m not saying
that tightly-structured and planned working hours do not have
their place – on the contrary, we need that. But from time to
time, people should expose themselves to other things, inspi-
ration, and spaces. I would say that the Pareto principle comes
into play here: 80% planned – 20% spontaneous. Moreover,
we must learn to deal effectively with media, and that means
sometimes setting aside or leaving out certain media or at least
thinking about priority clusters of media. Someone might come
up with completely different results if a subject is approached
from a different angle or in a different physical environment
while eschewing the usual methodology. Technology is in some
ways a miracle tool – everything is possible, but we must learn
how to handle it properly and to recalibrate the things for us.
One should always observe the form in which certain media,
work methods, and environments influence employees. And
what the effects are on the virtual and physical space. Most of
the time, only the material objects are taken into account, and
we overlook the fact that in many cases it has more to do with
the energy field which is all around us. Future Work is a holistic
approach.
DMR: What do you mean by energy field here?
Dr. Zünkeler: Even though it may sound a little esoteric – ulti-
mately, we are still cavemen. We cannot simply wipe out many
of our traits, which have evolved over the period of three million
years, within just 30 years merely because the most recent de-
velopments have radically turned our life upside-down in many

Dr. Bernhard Zünkeler studied law and art history as an undergraduate
before earning his doctorate in law (Dr. jur.); he worked as an attorney-
at-law for more than ten years, specializing in labor and corporate law.
Just under seven years ago, he founded the research institute artlab21,
which explores the development potential of diversity. His relationship
with Detecon comes from the joint conduct of the project Art Works,
which he guided in collaboration with numerous international artists
and Orange Council. Bernhard Zünkeler lives and works in Berlin and
Los Angeles.
Marc Wagner, Partner, Global Lead Transformation & People Management,
about ARTWORKS by Detecon:
„Is the following situation familiar to you? You go from your study, where
you have been brooding over a problem for hours, for a walk in the woods –
andsuddently the solution to the problem is within reach. You ask yourself:
Why didn’t I think of that before? What happend? You are ripped out of your
accustomed environment, leave the worn path or the monotonous highway,
and suddenly you are in a new place. What does this have to do with arti-
stic design? Artistic design – as you can see in our Detecon offices – can
deliberately generate friction which stirs observers into rethinking ideas and
drags them out of the ruts of their usual thought processes. This “disruptive
effect” and deliberate polarization are the declared purpose. You may think
the art is great, inspiring, bizarre, confusing, illuminating, thought-provoking,
or perhaps just tasteless. The important thing is that your emotions are
aroused and a contrast to the otherwise very rigid corporate environ-
ments oriented to efficiency is achieved. Humor also plays an important
role. Another fundamental building block of the concept is to encourage
coincidental contacts and points of interaction – a major prerequisite for
encouraging creativity and new ideas.
Within the framework of the ARTWORKS concept, the winner of a number of
awards (German Design Award/Art Directors Club Award), we deliberately
chose this path and have created visual irritants which pursue precisely this
goal: triggering new chains of thought, wanting to be creative, and looking for
explanation, whether the “Green Room”, “The Bavarian Parlor”, or the interplay
of images and words. Everything has a purpose! The realization is not chic,
stylish, and uniform throughout like in some Smart Working installations; it is
instead individual, comfortable, practical, pragmatic, and has its own soul –
an expression of our culture and our DNA.“
www.detecon.com

respects. What I mean is that we have and need certain bio-
rhythms, and that is why we perceive certain things around us
as intuitively right or as intuitively false. This includes a lot of
things such as rest periods, sleep, and other things which pro-
mote our individual ability to perform. This is all the more true
in a business world which is increasingly fragmented and often
negates these power centers that every one of us needs. In the
end, the performance one hoped to enhance suffers a negative
impact.
DMR: That makes it sound as if Future Work were also a means
for deceleration.
Dr. Zünkeler: Yes, you could put it that way. But I would like to
emphasize very clearly at this point that in the end it is a question
of heightening effectiveness. At this time, we frequently expe-
rience the exact opposite: gas pedal pushed to the floorboard,
the transmission in neutral. We often see new media being used
to process the same ideas, just faster, instead of stepping back to
take a deep breath and to think about possible new solutions.
That reminds me of someone who rattles the doorknob on a
locked door and then, because the door doesn’t open, rattles
the doorknob even more wildly. Future Work should be in a
position to find the key for someone like this instead of making
him more nervous. For me, this takes place in two dimensions.
For one, Future Workplace is the immediate physical environ-
ment in which I exist, produce, and live. Circumstances are
certainly different today than they were just a couple of years
ago and has a lot to do with personal mobility – it has become
substantially easier and less expensive to go from A to B. This
also means that the personal environment must be considered
from a new viewing angle in terms of Future Work. Physical-
ly decelerating means that isolated pockets where there are no
controls must be allowed to appear. Places where there are no
plans, if you like. This is my highly personal opinion, but I be-
lieve people frequently succumb to the illusion that everything
can be planned and managed. Reality teaches us that coin-
cidence plays a far greater role, even for the personal sphere.
And if you have not been granted sufficient “authorization to
deviate from plan”, that will give you a headache. New media
offer enormous opportunities for flexibilization. But someone
using them top-down unilaterally will end up banging his head
against a brick wall. The freedom to make decisions is con-
sequently a very elementary and self-evident part of personal
well-being and often the source of creativity and innovation.
Last, but not least, virtually nothing is really plannable today –
our surroundings, the environment of companies, everything is
subject to constant and ongoing change, yet we still attempt to
plan and control everything more and more tightly. Complete-
ly counterproductive in my mind when the aim is to “waken
creative minds”! And a complete waste of time in many cases
because you are always running after incidents with a plan that
did not match actual events. That is why an environment must
support this “unplanned” and “coincidental”, whether through
“plan flexibilization”, the opportunity for coincidental encoun-
ters, or through visual disruptions and stimuli which encourage
reflection and “thinking differently”. We have taken many of
these factors into account while implementing Smart Working
at Detecon. However, it is important that people actually live
the entire scheme and that it continues to evolve; otherwise,
people fall back into tried and proven patterns and routines.
This relapse can be prevented through continuous redesign or
the deliberate replacement of objects in the environment. When
the issue is deliberate deceleration, “relaxation and quiet zones”
in the company are beyond a doubt inadequate. Instead, the
corporate culture and the working style of the employees must
support this objective, whether through the creation of con-
scious personal time periods in which employees can work on
their favorite projects or through the opportunity to schedule
working hours and work truly flexibly – and the ones “at the
top” must act as role models. Quite often we experience emplo-
yees displaying a very positive attitude toward a Future Work
initiative, but the managers are reluctant to let go of their right
to control everything or equate “performance culture” with the
hamster wheel mentioned above. This is a topic which must
start all the way at the top.
DMR: ... And what role is played by modern media and ICT in
this context?
Dr. Zünkeler: We will enjoy new and groundbreaking oppor-
tunities from current and future modern media. But for some
reason, people have not yet really given this enough thought.
I compare this with an example of the Indian tribe which was
invited to come to Washington to sign treaties for reservations.
The men announced to the president of the United States of
America that their bodies had arrived, but they would have to
wait another three days for their spirits to complete the jour-
ney. This sounds like a most peculiar story, but it demonstrates
clearly that it must be possible to turn off thinking processes
sometimes so that you can understand what is going on in and
around you. Essentially, subjects such as jet lag and burn-out
are manifestations of this phenomenon. These two things must
be brought together when talking about Future Work; they can-
not be separated, in my opinion. “Moore’s Law” and the related
advance of technology cannot negate our origins and the entire
process of evolution ... And where it took almost one hundred
years to make the technological leap from the letter to the gene-
rally available telephone line and for practical and accepted rules
to take shape, this process for email and cell phones has taken

just a little more than a decade. So we are just now starting to
discover the incredible benefits, but also the risks. It is the dawn
of an unbelievably exciting time – and Future Work is right in
the middle.
DMR: Physical design also plays a key role for you in the holistic
Future Work concept. How can rooms help us to turn off and be
creative?
Dr. Zünkeler: Companies can and should use rooms and physi-
cal design of rooms to encourage conscious breaking out. Here
is an example from agriculture. During the 1960s, America and
Russia competed with each other to see who could produce more
corn or wheat. As a result, entire land areas were practically kar-
stified. There was no sensitivity to the subject of monoculture
at that time; the sole target was to increase effectiveness at any
price. No one noticed until it was far too late that entire land
areas are burned off, destroyed, by the use of such methods and
become completely non-arable after only a few harvests. I also
see an analogous risk for employees. That is to say, something
which is stringently planned from start to finish, a total mono-
culture, will seem boring, monotonous, and difficult for every
employee. Another critical point is that close-meshed planning
density increases the risk within the operation of “blind faith
in the plan” or “working by the book”. It is not especially easy
for leadership, empowerment, and creativity to take root and
flourish in this type of monoculture. Time set aside and a space
for the unplanned and the here and now become important in
this case. This space must also be aggressively integrated into
the structure of the company. With respect to the Future Work-
place, this means that there must be rooms in which a different
direction is deliberately taken and an ambiance is created to pro-
vide completely new and different stimuli. This is like a Post-it
sticker on the refrigerator on which you have written something
simply so that you are repeatedly reminded of it.
DMR: When it comes to a possible implementation, nothing will
be accomplished without the support of management. However, no
concept can function properly if it is not supported by the employees.
How do you deal with this paradox?
Dr. Zünkeler: Perhaps we can call it a “desirable guerrilla tac-
tic”? In any case, the point is to create areas in the company
where a new way of thinking can develop and is allowed to deve-
lop. Disseminators must be found among the workforce so that
they can be interconnected and, acting together, make some-
thing happen. This must take place away from the treadmill of
the company so that they can simply act faster. Otherwise, these

disseminators will run themselves to death relatively quickly if
they are moving with the gigantic machinery of the company
or must move within these processes to make a difference. Of
course, all of this must be supported and encouraged by ma-
nagement, or it won’t work. And here we are again, back at the
room to breathe which must be created. This is the common
theme running through all of the discussions: whether perso-
nal working hours, individual availability, the burdens I put on
people or the physical surroundings I give them – there must
always be areas where I allow employees the right to try out
something completely different or to withdraw personally and
shape their free space themselves. A company must be capable
of carrying out ideas unconventionally, be able to come back
to the employee time and time again, and to grant him or her
certain liberties. This is where I think it is absolutely essential
for the HR department in a company to enter the game. If the
HR department is not a loud and strong advocate for its own
employees in this regard, the whole business will become rela-
tively difficult. In my opinion, the generation of free spaces and
spaces for free thinking are elementary. And I am not talking
only about physical rooms here. The spatial aspect and its de-
sign make it much simpler for people to recognize that they can
think differently here and that it is even encouraged. This can be
an initial and powerful indication of change and usually makes
a more lasting impression than an email memo. A highly visible
sign of a corporate culture which can ultimately make sure that
result-oriented management and flexibility are not empty pro-
mises. Tangible proof, truly experienced, of the successful inter-
play of management with the employees.
DMR: After all, it is supposed to be a concept for the employees of
the particular company ...
Dr. Zünkeler: Exactly. In an age when linear processes are
shifting more and more to computerized systems, the impor-
tant question for companies is this: How do we generate new
thoughts? And that quickly takes us to art. The question about
new thoughts is an elementary one for artists. How am I in-
spired? How do I become innovative? How do I fire my ima-
gination? How do I create things that stir enthusiasm? These
are also questions which the employees of a company should
ask so that they can find out what elements are important for
them and what they are looking for in a physical and cultural
environment. Then, and only then, will something result which
contributes to a positive atmosphere and a good environment
in the company.
DMR: Thank you for these fascinating insights.
Photos:BerndZöllner

SAP brings clients to creative workshops in the AppHaus. A success story, as
Daniel Markwig sums it up. The designer, also lovingly known as the
“AppHausmeister”, and his team created the concept for the facility. He gives us some
insights into the creation and work methods of the house – and knows about
the good luck of not being at the center of focus at the right time ...
The AppHaus
Interview with Daniel Markwig,
Chief Instigator and AppHausmeister the SAP AppHaus in Heidelberg

DMR: Innovation and fostering creativity are top subjects in many
companies. What is their position at SAP, and what role does the
AppHaus play in this context?
D. Markwig: We are a technology company. That is why we
always tend to associate innovation with technological develop-
ments. Sometimes it is difficult to communicate that the most
fantastic new development is only as good as the use cases you
can find for it. The team that runs the AppHaus is the Design
and Co-Innovation Center; we conduct above all co-innovation
projects with clients. Our primary goal is to find solutions for
our clients which are suitable from a user-centric perspective.
We examine the end users, the clients’ customers, very closely
and attempt to solve use cases. We always hope that the solution
we find will turn out to be as innovative as possible. The Design
Thinking approach is an excellent means for accomplishing this.
We must begin with an exploration of the problem space so
that we can find out what kind of problems actually have to be
solved. Only then do we turn our attention to what the concrete
solution might be. Is it possibly the new SAP HANA database
or a product which we have had in our portfolio for 20 years,
or is it something that we have to build from the ground up?
The AppHaus helps us to find the right problem. We can offer a
space to the clients where they can talk very openly and without
distractions about the things they want to achieve. Clients can
focus very narrowly on themselves. This is a different viewing
angle than the one taken in many traditional sales or consulting
situations. We don’t start with saying that we have a fantastic so-
lution that fits the clients; instead, we initiate a dialog with the
clients. This is supported by our space [room in the AppHaus].
DMR: Does the contact to the clients come from other units at SAP,
or do you acquire clients yourselves?
D. Markwig: Both. About 60% of our orders come from our
existing accounts or from Board queries. We do our own busi-
ness development and offer certain design services for the other
30% to 50%. More and more clients we have never had any
previous contract with are referring explicitly to their accounts
and saying that they have heard about the AppHaus and would
like to work with us. So we are receiving more and more queries
without ever have to push ourselves explicitly to the forefront.
For me, this very definitely means that the AppHaus is a success
story.
DMR: You just mentioned Design Thinking as a method. There are
traditional centers such as the Human Centered Design at Swiss-
Com which offer very specific methodologies. What can we imagine
in this respect in your case?
D. Markwig: We definitely proceed methodologically in the
sense of Design Thinking, User Centered Design, and Custo-
mer Co-Innovation. However, we adapt our toolbox for each
specific project – a luxury we can afford because we have such a
broad set of skills on the team. One positive aspect for us is that
we are a part of the product development organization and do
not belong to the sales or consulting organization, so we aren’t
a profit center. We can demand, for instance, that we need 50
man-days and not just 20 for a project. In a case like this, we
have the opportunity to sponsor the difference. We even like to
do so when we conduct the first project with clients to prove
that better results are achieved through greater investment in
the direction of design and a relationship to the client or end
user. We rely here on the learning effect from our previous pro-
jects. Our long-term goal must of course be the creation of awa-
reness. Customers must be prepared to invest more in design
and user experience.
DMR: How exactly do you bill that?
D. Markwig: If designer-days have already been purchased, we
can sponsor a couple of additional designer consulting days from
our own funds. We don’t work completely for free, of course. It
must be clear to clients that they are buying design. The Design
and Co-Innovation Center which operates the AppHaus is a
design team within SAP’s product organization – that means we
have designers and a few project managers on the team, but not
our own developers. Naturally, most of our work must be cost-
neutral or, even better, profitable. But our team’s core task is to
deliver “best of breed” design. If need be we throw in a small
amount of sponsorship, always with an eye on the long-term
goal of getting the client to recognize the added value and be
prepared to pay for it at some point.
DMR: Are you still in the starting phase?
D. Markwig: Yes. However, this is highly dependent on the
specific client. Clients with whom we have been working for a
very long time certainly see that the quality of the products has
improved and that the subsequent costs of the products have de-
clined since we implemented this new focus. It really is true that
an improved user experience leads to lower training and main-
tenance costs because overall the error rate among users falls. So
there are measurable improvements for a good user experience.
Of course clients realize that this is a relevant point.

DMR: We are interested in hearing about space, design, working
areas, and how you can succeed in getting employees to “join in”.
What experience have you had regarding these points for the App-
Haus concept, from the assigned task back at the beginning to today?
D. Markwig: The AppHaus has a history that began in the USA
in 2011. The original idea really was to assemble an agile deve-
lopment team including all relevant roles such as developers,
designers, and product managers and place them into a buil-
ding suitable for a startup, then give them the task of developing
apps, small consumer products. In the meantime, there are 13
AppHauses throughout SAP, but they all have an inward focus.
We here in Heidelberg are the first one to clients to come and
work with us here. We don’t have a development team, just a
design team. When I think back about our road to this point,
it was an amazingly agile process for SAP. In February 2013, we
had five or six people on the team. The Board had given us the
assignment to grow, and we needed more space so that we could
work with clients. Thus we decided to set up a project space.
We moved into the AppHaus in October 2013 – that is a very
short time period for a large corporation. We would not have
succeeded if the following three conditions had not been met.
First, we had excellent support from our organisation’s Chief
Operating Officer (COO). It was less a question of the funds he
made available to us and more a matter of eliminating bureau-
cratic obstacles. The landlords also gave us tremendous support
because they took over much of the construction work for us;
above all, it was done very fast and in a short time. For example,
the doors had been painted white and loaded onto the trucks
when we said that we wanted red doors – so they were unloaded
and repainted. Second, Facility Management at SAP exercised
very little control because they had a huge facility management
project running in Potsdam at the same time, the SAP Innova-
tion Center near the Hasso Plattner Institute. Looking back,
the creative interpretation of regulations was quickly put into
perspective by the enthusiasm of clients and colleagues – and
even from Facility Management side itself. The third condition
which contributed to our success was the commitment and the
effort the team itself brought to the project. We not only made
all of the decisions ourselves, from the flooring to the laying
of the power lines, we even built a lot of the furniture oursel-
ves. This was ultimately the decisive factor for the tremendous
enthusiasm among the team and the stakeholders. It was quite a
contrast to what you would have expected from SAP.
DMR: What kind of agreements were reached with you as the pro-
ject manager?
D. Markwig: We have three key people on the team who always
hold all the reins in their hands: our people manager, me, the
project manager, and one employee who is highly dedicated to
the space. But in fact we repeatedly took the time, in an agile
way, to look back at what had been done. Then we asked the
team how they felt, what worked well, and what could be im-
proved. Someone on the team, for instance, would come up
with the idea to have bookcases or benches for the workshop
room. Then the same person who had this idea turned it into
a mini-project to carry out the suggestion. This was how the
Scheherezade Room with its Arabian Nights theme came to be.
The team is supposed to find self-fulfillment and create a home
of their own. We call this a “sense of ownership”: giving people
the feeling that they are in charge of their environment. Almost
all employees spend more time in their offices or at work than
in their own living rooms. So why shouldn’t the employees also
have a say in their working environment? Of course we cannot
let ourselves go totally wild, but so far the feedback we have
received from our guests and employees is that they feel com-
fortable here – and in the end, that is what we wanted to com-
municate.
DMR: How did you manage to get the social partners on board?
D. Markwig: In the second week, we had a visit from a delega-
tion sent to us by the works council. They explicitly came here
with the idea of rescuing us from this venue because it was an
open-plan office without its own canteen, far away from the
main campus, and did not even have its own parking spaces
at that time ... These are perhaps the expectations held by a
classic SAP employee. But our team is happy here and does not
need to be rescued. In the course of the discussion, we asked the
works council representatives to go into the team’s working area
and ask the colleagues themselves if they felt at ease here. That
caused a major shift in the perspective during the discussion.
We started talking about how the things we have learned here
could perhaps be transferred to Walldorf [SAP headquarters] as
well.
DMR: That is an important question. How can a concept be trans-
ferred and applied to the entire corporation? What do you consider
to be the success factors?

D. Markwig: As I see it, there are a number of important factors.
I have absolutely no doubt that including the team in a redesign
of this nature is one of them. I understand that you cannot give
just any team all the freedom it wants, that there must be certain
rules, and that not every person would like to become involved
to the extent that we did. The employees on our team are simp-
ly accustomed to interacting physically with their environment
and not just at the monitor. It was completely normal for them,
for instance, that they would build a bookcase. We have lear-
ned in various projects at SAP that an iterative process is very
helpful. In Walldorf, we designed rooms in cooperation with a
highly respected furniture manufacturer several years ago. They
turned out to be very beautiful rooms, but unfortunately at the
beginning they did not exactly suit the teams who needed to
use the rooms. So it took a lot of time and effort to change the
rooms to make them a good fit. I can imagine that it would
not have been necessary to do so much correction work if the
relevant team had been more closely involved right from the
start. Another factor is that internal functions at companies,
whether IT or facility management, are not seen as service orga-
nizations, but as governance organizations. In reality, a team like
ours expects facility management to be a service organization.
Certainly it will be necessary in the future to consider whether
these organizations will not have to instill more of a customer-
oriented attitude in their approach.
DMR: We see a good opportunity for facility management to
emancipate itself and move away from being strictly a unit for the
optimization of efficiency in a building, offering instead its own
consulting services which provide optimal guidance in the design of
an environment. But that is a contentious discussion point at the
moment.
D. Markwig: In my opinion, that is also a generation issue. We
see that a lot of the employees in facility management, particu-
larly at the higher levels, understand that they must change. But
just as in any other company, there are also people in the middle
levels who are protecting their principalities. They frequently
have a very clear picture of how things should and must run. I
imagine – in the long term, anyway – that it will certainly be
possible to build up an excellent relationship between the ser-
vices which we can offer in a consulting function through our
facility management. We see how our space has a special impact
on our clients, simply because it is different. One would have
to embrace this context a little and exploit it to bring changes
about within a company.
DMR: The design of the space on premises is presumably an ongoing
process.
D. Markwig: Yes, of course. Moreover, it is extremely impor-
tant that there are ongoing discussions about the objectives one
wants to achieve. This is a question which facility management
almost inevitably answers with “Save money!” But sometimes
I want, more than anything else, to surprise the clients or offer
an especially good working environment or foster creativity and
communication or improve the productivity of software devel-
opers. This thinking about these specific objectives for the con-
crete space does not take place right now. But if we could get to
that point, then the problem of always wanting something that
is as new as possible would disappear. I then have the chance to
establish myself more solidly in this framework and to fulfill my
demands by changing something now and then.
DMR: How can the environment support creative processes,
especially in view of what you have created here?
D. Markwig: We have three key words we position. First is
enablement: we make it possible for people to become creative
in a technical sense by offering them workplaces conceived in
the sense of Design Thinking – lots of whiteboard areas, stan-
ding tables, and a certain degree of flexibility. Second, we offer
inspiration by providing a workshop-like space which shows
that the work done here is truly hands-on. There are no con-
ference tables where one person gives a presentation and the
others simply consume what is said; we generate an atmosphere
of genuine collaboration. The third key word is permission, i.e.,
the permission to do something. People often do not dare to
change anything. Since everything here can be moved around
and always looks unfinished, it creates an atmosphere of “Let’s
just try something!” This atmosphere is not limited to the space
itself, but extends to encompass the content of our work. The
clients we invite to come here are more willing just to try out
something wild or crazy. They arrive with the expectation that
they will see a presentation – but before long, they are rolling
up their sleeves and the ties have been flung into the corner.
(Laughs) We force people to embrace the space and put them
into groups they would not expect. As a result, they forget about
the hierarchies. We recently conducted a workshop for a large
company involving people from all of the different hierarchical
levels, from end users to management board members. The fas-
cinating element here was that some of them did not know the
people they were collaborating with; it was not until the end of
the day that they learned they had been working with a Board
member – and they had just naturally used the informal form of

Daniel Markwig is project manager
for the AppHaus in Heidelberg in the SAP
SE Design and Co-Innovation Center. He
studied mechanical engineering at the TU
Kaiserslautern and integral design at the
State Academy of Visual Arts in Stuttgart;
he has been working as a designer at
SAP since 2005. Here he designed user
interfaces for business software, was
one of the first Design Thinking coaches,
guided the introduction of agile software
development methods, and worked with
SAP clients to develop and implement
product ideas. He is currently in charge of
the strategic evolvement of the AppHaus
concept within SAP.
http://experience.sap.com/designservices/apphaus

address. The consequence is a different form of communication
and a different flow of information within the framework of a
project. As we go about breaking down structures, it is impor-
tant for me that we surprise people. This need not be unpleasant,
quite the contrary; my experience has shown that the situation
the people are put in is very pleasant for them. They are relieved
of the burden of responsibility, just go with the flow, they are
not in a position in which they must produce something or else,
but can just ride along with the situation. We help them to look
at things from a different perspective. The important thing is
that they feel at ease – it won’t work otherwise.
DMR: How do you manage to take people out of their comfort zone
without the situation becoming awkward for them?
D. Markwig: That quite often happens automatically. People
are so surprised by what is done with them here that they simply
accept whatever comes their way because at this point they don’t
yet understand what we want from them. For the moment, they
slip into a different role, they are supposed to forget everything
they knew this morning and start thinking about things diffe-
rently. Of course we know that these people will later return to
their former roles. But for this one day it is important that they
think differently.
DMR: How can the long-term effects of something like this be se-
cured? Is it possible, looking at the whole company, to generate a
spirit and change something in its culture?
D. Markwig: The subject of space does not stand alone for us.
People, process, and space are for us precisely the elements which
must fit together. We need a team as well as a type of people and
change management which enable us to make optimal use of
this space. We want a specific process focusing on Design Thin-
king and end users which the team can carry through and which
we can support with the space. We want the space to become a
home for the team. The entire thought process of facility ma-
nagement that I described above must change. It is important to
be oriented to an objective. Then I can work with my people to
achieve it. This is exactly what is new, what was not there before:
the teams can contribute their work to what we really want to
accomplish. Naturally, it is important to keep the fundamental
idea of Design Thinking in mind: You must not ask people what
they want – you must find out what they need.
DMR: The subject of innovation culture is a topic of constant dis-
cussion right now, as is the question of intrapreneurship. But many
of the formats established along these lines quickly peter out because
a large organization never has the patience and stamina needed to
make it through a radical cultural transformation. What do you
think?
D. Markwig: I think that large organizations are structured in
a certain way and will always function in exactly this way. Even
companies like Apple are oriented in their production areas to
optimization of the things they already do. Innovation power is
found in very isolated pockets. Nevertheless, I believe that the
things you can try out and learn here can be carried over to the
corporation. We see right now that even small changes are being
rolled out into the broad organization, that people are exerting
more influence on their own spaces, that they are attempting to
create transparency. As a minimum, small things are possible.
Organizations must understand that their employees are their
capital and that it is necessary to do something from time to
time which will make life easier for the employees. I often find
this missing. I never have the feeling that the human side is
completely neglected in our company, but I often hear from
clients that employees are viewed strictly as cost factors. This is
the wrong approach.
DMR: So a “Big Bang” does not work. Is it more the small, but
certainly visible, changes being introduced continuously and fed by
grass roots initiatives rather than large-scale management board
programs which will be effective?
D. Markwig: Of course it is always good to have allies right
at the top. But something which trickles into the organization
slowly, perhaps even without being noticed, will be longer-
lasting and consequently of greater benefit for long-term suc-
cess. We are speaking about a cultural transformation, after all,
and this never happens as a “Big Bang”. If you analyze revolu-
tions, you will see that they either broke out after a very long
simmering period or very quickly returned to what had existed
before. Steady evolution is not the worst thing that can happen.

Putting a monetary figure on savings is not always the best possible result from a
project. The kaizen principle demonstrates how consultants can work toward a
permanent culture of improvement – to the client’s benefit.
Regarding the Mining of Kaizen
Potential and Its Implementation
in Daily Project Business
KAIZEN – Beyond Process Optimization
he broad spectrum of methods for process re-engineering can
be compared to a jungle which is becoming increasingly im-
penetrable. The primary focus of the most common methods
always aims at achieving an ideal balance among the elements
quality, time, costs, and resources. Companies must accordingly
reflect their questions and objectives in process re-engineering
in terms of the available methods if they want to heighten the
performance of their operations and exploit fully their potential
for improvement.
But a large number of re-engineering projects do not take aim
at creating a permanent culture of improvement. That is not all
too surprising; after all, they usually have clear instructions to
achieve quick success. The results are actions which are suppo-
sed to be implemented within the shortest time, require little
financial investment, and can be realized without any great
changes whenever possible so that people’s willingness to change
is not put to the test. But it is much more important to create a
culture of permanent optimization in which turning away from
the status quo and the sensitization and integration of all of the
affected employees is explicitly demanded.
T This challenge arises in many consulting projects as well. Large
corporations in particular tend to invest in complex strate-
gy projects featuring a grand vision of their final goals while
generally neglecting measures for improvement which could be
carried out directly. Yet a top-down procedure within complex
projects and concrete bottom-up optimizations which can be
pragmatically realized are not necessarily mutually exclusive.
The goal – most especially for strategic transformation pro-
jects, restructuring campaigns, and within the framework of the
harmonization of complex IT landscapes – must be to create a
work culture in which process disruptions are discussed and im-
provement measures are proactively initiated rather than simply
accepting the problems as a given. And this is precisely the point
where the kaizen principle of continuous improvement can un-
fold its full potential.
Efficiency through cultural transformation
Kaizen (kai = change, zen = for the better) is a Japanese manage-
ment philosophy which aims to identify and prevent mistakes
and inefficiencies in the company and follows clear fundamental
KAI – Change ZEN – Good

principles. Its focus is not on the great innovations, but on the
numerous suggestions for improvement which result from the
involvement of all of the employees. Essential elements are the
fast implementation of these suggestions and the visibility of
their success.
The effectiveness of the principle comes from learning to
recognize waste, seizing upon available opportunities for action,
and assuming responsibility. This approach must be implicitly
incorporated into the consulting business by anchoring the
kaizen culture in everyday consulting activities and adapting
suitable elements and methods in a way that will benefit the
client. The kaizen philosophy must be the consultant’s constant
companion in everyday project work. There is an ongoing
sharing of experience and know-how transfer with respect to
the procedure for the identification and exploitation of opti-
mization potential in terms of kaizen. This applies both to the
on-site project for the processes within the company and to the
consultant’s own project management and support processes. In
keeping with the ambassador principle, the client’s awareness
for waste and for pragmatically realizable potential for impro-
vement is heightened and the required cultural transformation
is promoted. Discussion of inefficiencies and mistakes as well as
of potential alternative solutions must be allowed. The ongoing
culture of optimization which is required cannot be created un-
til the conscious analysis of the causes of the waste is possible.
But isn’t the wastefulness of their clients the lifeblood
for consultancies?
It may sound absurd for a consultancy to extend its focus from
the grand solution of everything for the client and to seek to
eliminate waste in the company by taking small, pragmatic steps
determined by application of a method which has been around
since the middle of the 1980s. But the reason for doing so is
obvious – it leads to a clear win-win situation.
Within the company itself, the “experiencing” of the concrete
improvements, from the specific identification of the process
disruption to the implementation of the appropriate measures
for improvement, gives rise to a new work culture which
remains in place even after the consulting projects have been
concluded. Every single employee is sensitized to question his or
her own working procedures continuously and, by taking small
steps within his or her own sphere of influence, to improve them
quickly or to look for possible optimization potential. This po-
tential must be understood as an opportunity to reduce waste
in the work steps.
Standard questions in this respect include the following:
• What do I do when, how long, how often, and, above
all, why?
• What is the purpose of my action? Do I achieve my goals
in the work step?
• How can I reduce the effort in work steps? How can I increase
the yield from the work steps?
• What work steps do not lead to the desired results, are
redundant, or are highly labor-intensive, and why is that so?
This encourages employees to think about and identify with
their tasks, leads to the assumption of more responsibility
on the part of employees, and ultimately to higher employee
motivation and satisfaction. Motivated and satisfied employees
display in turn a greater willingness to perform.
More complex challenges which cannot be optimized in a short
time at the work level give rise to long-term options for action
which, when structured, can be incorporated into the further
development of business and long-term improvement measures.
On the other side, a new quality related to customer loyalty ap-
pears in addition to the more efficient project work. Quick wins
realized in a short time instill trust in the success of the current
collaboration, enhancing the client’s opinion of the consultant’s
competence and reputation. The more complex options for ac-
tion can lead to long-term and permanent collaboration which
is profitable for both sides.
KAIZEN focuses on long-term savings
The positive effects of the continuous improvement achieved by
following the kaizen principle cannot, as a rule, always be clear-
ly assessed in monetary terms. This is especially the case in the
service industry, where processes are frequently highly integra-
tive and complex and the demands on their flexibility are great.
However, the point here is not to put a precise figure on the
monetary savings achieved by the specific measures or even by
the improvements in their totality. At the heart of this approach
is the creation of a corporate culture in which the performance
capability and customer orientation of the company is implicitly
raised long-term by the implementation of many small, specific
optimizations requiring relatively low investments.

„Ideas Come from Inspiration
and the Interaction of People“
Interview with Jens Bode, International Foresight +
Innovation Manager, Henkel Laundry & Home Care

Innovationskultur@Henkel – Jens Bode, Innovation Manager at Henkel,
views vitality as the foundation for success. He spoke to DMR BLUE
about the success factors for creativity and competitive innovations.
D MR: Henkel is a company operating in an environment of
extremely stiff international competition. In this context, what is
the value of “innovation” for Henkel, especially in terms of efficiency
and growth?
J. Bode: Innovations are of vital importance for Henkel. In an
environment of global competition like the one we are in, they
are major drivers for growth and profitability and an integral
element in our corporate strategy. Unless a company can deve-
lop new products, it cannot remain competitive and secure its
continued existence. The subject of efficiency is important with
respect to our innovation processes. The tools being used are
examined repeatedly. Where is there potential for simplification,
where are there thought paradigms and barriers to innovation,
where and how can we accelerate these processes? The point here
is to make use of this creative potential, to integrate learning
curves into our processes and tools, and to make them even
more efficient at all levels.
DMR: Have there been any changes in Henkel’s approach to the
set of topics related to “innovation” over the years? I can remem-
ber reading an essay about ten years ago which focused sharply on
“think tanks” and emphasized a strong innovation department. Is
this still your focal point?
J. Bode: You are referring to the think tank Invent. A team of
seven international managers did nothing else but innovate for
six months; its members were released from performance of any
other activities for this period. The results included unusual, in-
novative ideas originating from far outside traditional categories
as well as soft facts such as team building and spirit. Despite the
flood of new ideas, we nevertheless determined that their trans-
fer to our operating business was anything but simple. The les-
sons we learned were integrated into subsequent processes and
closely meshed with operating structures and units.
DMR: How is the innovation process structured and organizatio-
nally anchored at Henkel? Is there a central innovation department?
J. Bode: We do not have any corporate innovation management
at the concept and product level. Henkel has three corporate
divisions confronting differing challenges and taking various
approaches to innovation, namely Beauty Care, Laundry and
Home Care, and Adhesive Technologies. In Laundry and Home
Care, for instance, we work with a tool which enables and en-
courages all of our managers at the global level to contribute
their ideas and concepts to the creative process. There is an in-
tensive, structured ideation and innovation process on the part
of marketing in our operations: guided creativity. This is where
the various “insight nuggets” from consumer insights, trends,
and technology trends are combined into new methods and
analyzed.
DMR: Speaking of creativity: If a company’s innovative strength is
to be maintained, it is important to encourage the creativity of its
workforce continuously, especially to secure its attractiveness for the
market of high-potential employees. How do you achieve this?
J. Bode: If we always ask the same colleagues to answer the
same questions, we will hear the same ideas – this does not
take us anywhere. Ideas always come from inspiration and the
interaction of people. We benefit not only from our internal
team and its diversity; we also take advantage of the talent and
creativity of experts outside of our own enterprise. That is why
we count on “open innovation”, the inclusion of external inno-
vation partners such as universities and students, research insti-
tutes, suppliers, or customers. Personally, I make use of every
available source, internal as well as external, for workshops. For
instance, I look very closely at micro- and macrotrends from
the Henkel environment. Trends from parallel markets such as
food, automotive, and architecture. I stay in touch by maintai-
ning a network of trend scouts and a highly diversified group of
people with creative talent. Internally, the teams combine their
expertise with internal and external inspiration.
Left side image description:
Inspiration and innovation area in the form of an oversized washer.

Success Factors:
Jens Bode, International Foresight + Innovation Manager
An innovation vision!
A diversified and “motley” team – in all dimensions.
A sustainable innovation process.
Tools to which even those colleagues who do not work at
headquarters can contribute their creative talent.
Openness for any and every kind of inspiration.
Creative zones and spaces, mental breathing room.
Transparency and availability of information.
An appreciative and motivating environment.
The ability to challenge and optimize yourself and the tools
repeatedly. Implement learning curves!
A pragmatic assessment approach to ideas – feasibility should
not necessarily top the list!
Do it! And celebrate successes.

DMR: While we are speaking of innovation in general – over the
past decades, you have been intensely concerned with “innovation”
and related topics. What are the most important success factors for
an innovative company? What characterizes an innovative compa-
ny?
J. Bode: A living culture of innovation is the most important
foundation. It should involve a diversified team of employees
as well as external stakeholders and tap them as a reservoir of
potential ideas. In my opinion, additional prerequisites include
a concrete vision and/or innovation strategy. Then there is
the matter of the right balance between freedom and open-
ness on the one hand and a certain “order” on the other; this
is decisive for ensuring creative and innovative processes in an
efficient and effective form. Systematic tools should provide
substantive support to the innovation process. Moreover, the
subject of sustainability is a key success factor. In this context,
Henkel has developed an evaluation system – the Henkel-
Sustainability#Master® – which identifies the value creation
chain and the hotspots in the strategic focus fields where inno-
vations have the greatest impact. Henkel must consider the full
life cycle of products and processes to ensure that innovations
improve their general sustainability profile. Henkel experts use
the Henkel-Sustainability#Master® for more than just the assess-
ment of potential innovations; it also plays a role in the dialog
with retail trade partners, NGOs, and other stakeholders.
DMR: ... and what do you believe is harmful to creativity and
innovation strength?
J. Bode: An environment lacking in inspiration and motivation
is at the top of my list. The absence of any processes, or processes
which are too technocratic, undefined interfaces, or a lack of
breathing room are also barriers to innovation.
DMR: To return to the subject of “processes”: you surely have an
idea management at Henkel. To what degree are there measures in
place to ensure that they are given consideration in the innovation
process? What incentive structures have been set up here, and how
are the ideas appraised?
J. Bode: Idea management at Henkel is strongly supported with
the aim of utilizing the creativity and idea potential for improve-
ments and innovations found in all of our employees. They have
the opportunity to contribute and realize their own suggestions
for improvements. In 2012, for instance, idea management in
Germany received just under 5,200 suggestions for improve-
ment – just under one-fourth of all employees submitted one or
even several suggestions, and 69% of these suggestions were also
realized and acknowledged by awards.
DMR: And now a final question: What do you see as the greatest
challenges of the future for a large corporation if it is to maintain
its innovation capability? Do you believe that anything will change
because of new market players or the rapid pace of digital transfor-
mation?
J. Bode: There are a number of challenges in this respect. In
relation to innovation, one of the greatest subjects is the constant
scanning and assessment of trends in all dimensions. Some com-
panies and former market leaders who did not recognize trends
or who underestimated or even ignored them have vanished
from the picture. The cycle of inspiration, openness, commu-
nication, sustainable processes, diversity, and entrepreneurial
foresight closes.

Interview with Dr. Heinrich Arnold,
Head of Telekom Innovation Laboratories, Deutsche Telekom AG
To Boldly Go where
Telekom Has
not Gone Before!
Dr. Heirich Arnold
Ulf Korsch
Cem Ergün-Müller

DMR: T-Labs had its 10th anniversary this year and celebrated
accordingly! From your perspective, what have been the highlights
of these past years?
Dr. H. Arnold: I do in fact sense a certain pride, motivated
by various elements. For one, I’m proud of the pioneering
activities of the colleagues at T-Labs. For the most part, we were
pushing ahead as pioneers before Deutsche Telekom decided to
inaugurate a new type of business. Our people were the ones
who prepared the field for planting, whether for the Intelligent
Networks at T-Systems or, the current project, for a new model
within the EU to create a disruptively low-cost base for commu-
nication. These are remarkable feats by our colleagues, who push
ahead into areas where Telekom has not yet dared to go. This
demands courage, a sharp eye for the right direction, a drive to
shape the future, and professional competence.
The second point I am proud of is the one with the greatest
commercial effect. Whenever standards of a global scope are
set, as was the case for 4G, for instance, the patent pools are
worth hundreds of millions of euros. To work your way into
these patent pools, you have to collaborate with a number of
colleagues from partner departments within the group, from
the departments which work with patents to the standardization
colleagues, and you must all be at the right place at the right
time and with the right skills.
The third point is that we at Deutsche Telekom can definitely
have a say in what happens globally. This is where unconven
tional vehicles come from, like the Mozilla Foundation, which
sends representatives from California to Berlin to obtain our
specific contribution to the completion of the first Firefox ope-
rating system release! The fourth point is a personal one. I am
constantly impressed whenever people in my immediate vicinity
find work in a subject matter which once had its origin atT-Labs
and is now moving into daily life.
C. Ergün-Müller: My highlight is that over the last years we
have emerged from a department involved strictly with research
development in cooperation with our professorial chairs into a
division which drives innovation nearly to the point of its im-
plementation. We generate a much greater impact. We also call
it “impact-oriented innovation” with the goal of actually mobi-
lizing additional revenue or cost reductions.
U. Korsch: Moreover, we have established a close relationship
to the people in charge of business and all the way to the Board
of Management, and this opens up a whole range of additio-
nal strategic opportunities relevant for business. We have the
chance to obtain very rapid feedback and support from the exe-
cutive suites regarding the direction certain subjects are taking
– for instance, mobile virtual network operator, network sub-
jects within Telekom, big data, and data analytics. So although
we provide support in the form of small innovations, we have
in the meantime reached a stage in which we work with the
implementing units at Telekom and help to initiate major deve-
lopments, generating the corresponding impact.
What is the name of the game for any company in today’s world?
The ability to embrace transformation and innovation! Agility, flexibility,
profound expertise, creativity, willingness to change – these factors,
embedded in an innovation culture and inspirational leadership, are
evidently the ingredients for success for any company oriented towards
the future.
Dr. Heinrich Arnold, Senior Vice President and Head of Telekom
Innovation Laboratories (T-Labs), describes his vision of an innovation
culture for Deutsche Telekom and how he implements this vision in his
daily work. Cem Ergün-Müller, Head of Marketing & Communication,
and Ulf Korsch, in charge of T-Labs 2.0 & Corporate Initiatives, offer
additional fascinating insights into the heart of innovation at Deutsche
Telekom AG.

DMR: You once said you had an embarrassment of riches, that you
would prefer not to have such a great choice. How do you set your
priorities?
Dr. H. Arnold: The sparks come through various channels:
systematic screening, tech radar, discussions with partners,
consumer panels, customer workshops, group colleagues. The
difficult part comes later – deciding which of these ideas can
be taken up by the group. There are three factors that play a
role. What is a substantial development for Telekom? Where
is it even possible to influence developments so that value is
generated? And do we have a clear picture of who could drive
the subject to its realization at Telekom and assume the position
of sponsor? A good subject begins to take shape through the
feedback of important stakeholders – conducting a peer review,
discussing, approaching the marketing and technology depart-
ments with the subject, and, ultimately, standing in front of top
management and presenting the proposal.
DMR: How would you describe the innovation culture within
Telekom? What role does T-Labs play here?
Dr. H. Arnold: In comparison with the way it was ten years
ago, Telekom has become far more capable of incorporating and
carrying out innovation. There is still a lot of work to do with
respect to an innovation culture. The willingness to take risks is
a key factor in this respect and indicates the status of such a cul-
ture. There are people at Telekom who dedicatedly and actively
support innovative initiatives, but there are also a lot of people
who try to evade anything new simply because something could
go wrong.
DMR: What are your success factors?
Dr. H. Arnold: The most important success factor is self-moti-
vation. When a project manager becomes fired up with enthu-
siasm, things can work well. The one who is the driver at the
forefront of an initiative must be completely convinced of the
project’s value. This person must constantly be on the lookout
for solutions to problems which are significant enough to bring
the entire project to a halt. The objective which has been set
will never be achieved with someone whose commitment is no
more than half-hearted and who is not intrinsically motivated.
Willingness to take risks plays an important role here as well,
just like the proper way to deal with mistakes. I am convinced
that the one who does nothing is making the biggest mistake.
C. Ergün-Müller: In addition, you should fundamentally
trust the colleagues so that a bit of a free spirit lives at T-Labs.
Nevertheless, certain guiding principles must be in place. We
must contribute to the group strategy and orient our efforts to
its top subjects. A slogan along the lines of “Why are you doing
that? – Because I can!” is not right for us. We don’t do our work
solely because we are keen on innovation. The first question is
always this: Does it contribute to the success of Telekom’s busi-
ness? Does it offer new prospects to our customers or for tech-
nology? Within this framework, we can become creative and
look for new topics, evolve them, and drive them to success.
DMR: What is the position of leadership within an innovation
culture, and what form does it take?
Dr. H. Arnold: Leading our various competence teams is a
highly heterogeneous task, and that is what makes it wonder-
ful. But every individual must have at least one extraordinary
trait which goes far beyond the standard level. A person is eit-
her especially knowledgeable in a certain area or is an especially
skillful communicator, is either especially clever or conscien
tious or is especially charismatic. The core here is found in the
personality of each individual.
What distinguishes an innovator from an administrator? The
innovator is the one who always sees change as an opportunity
or even an obligation and always wants to use it to its advan-
tage. That is why missed opportunities are the greatest source
of frustration for an innovator. When we as a corporate group
allow a great opportunity to slip through our fingers, I am sim-
ply devastated. And that is where an administrator is different.
This situation doesn’t bother him in the least. He wants to avoid
mistakes at all costs and is more likely to see change as a threat
to standard processes, so he wants to keep it as far away as pos-
sible. The most important thing – no mistakes! But we need for
everyone in the group to have the basic attitude of an innovator
so that each and every one of us assumes a certain amount of
individual leadership and is open to change.

DMR: The world of innovation is extremely fast-lived. The danger
of falling so far behind you can never catch up is always there. How
do you deal with setbacks?
Dr. H. Arnold: The real setbacks are very clearly the missed op-
portunities. But when in doubt, as an innovator you just have to
sleep on it, then get up and get on with your work.
Fortunately, we took the occasion of the ten-year anniversary
as a chance to sit back and look closely at our situation. What,
from the innovation perspective, are the great challenges facing
Telekom? What are we working on right now? What worked
well in the past? This last point in particular is extremely impor-
tant to me personally because I can see that the bottom line of
recent years is encouraging. After we had written it all down, we
were almost bowled over by how much had in fact turned out
well over the last ten years. We have to keep reminding ourselves
of that. Despite all of the setbacks, hundreds of things have gone
well, enough to fill an entire book.*
DMR: To what extent do international innovation centers such as
Tel Aviv and Silicon Valley impact the on-site innovation culture
here in Germany?
Dr. H. Arnold: Our way of dealing with one another is very
open, very tolerant, and very Esperanto. Our working language
is “broken English” because everyone comes from a different
world. But it is incredibly helpful to take off the blinders and
think about the most widely divergent subjects – even though
huge differences in the working culture can be seen.
C. Ergün-Müller: Our international relationships are of signi-
ficant advantage because they encourage us to think outside the
box. And it raises the credibility of the corporation enormously,
because we know exactly – and take into consideration – what
is going on in Silicon Valley and Tel Aviv at the moment and
reflect on their work, of course.
DMR: Your cooperation with the TU Berlin and the Ben-Gurion
University in Be’er Sheva, making you the pioneers in the area of
public-private partnerships, was highly praised, and support for it
is expected to continue in the coming years as well. What role, what
opportunities for T-Labs do you see here?
Dr. H. Arnold: The whole structure would not function without
our university partnerships. It is a matter of keeping our skills
up to date, the daily friction on the teams. What is really new?
How do you make things current? We always need three ingre-
dients: people who understand the corporate group; people who
look in on us over and over and bring us the latest news from
research and technology; and entrepreneurial experts from the
market with whom we can complete and supplement our initi-
atives. That is why the T-Labs model works only at sites where
these three factors are all present, where there is a startup com-
munity with people on the market who can be included ad hoc
in projects. So Berlin is truly an absolutely essential factor for us
because of the dynamics of the innovation environment and the
renowned universities. And there is any number of positive side
effects. We never have to worry about a fresh breeze!
DMR: You said at the CeBIT this year, “The time has come!” That
sounds like you have great plans. What is your vision for the coming
years?
Dr. H. Arnold: The time has come, absolutely! What we see in
2015 will be a foretaste of what Telekom will be in every respect
in 2020. For example, we will see that we find ways to map
communications on a Web basis, i.e., we will create a new user
experience that no one has ever seen before, and it will cost only
a fraction of the current price. I expect the first clear indicators
of this development to become apparent next year.
We will also see the start of how we will use our most funda-
mental strengths – offering secure communication supported
by quality – on a global scale, including the Industry 4.0 con-
text: in factories, in machines, along the entire digitalized value
creation chain.
And the third point, we will constantly expand our use of the
possibilities arising from data analysis for ourselves and for our
customers. We will be the trusted partners for the digitalization
of our customer segments and for ourselves. This is my positive
vision for the coming years, and I firmly believe in it.
* www.t-labs.co/accelerator

Transformation, corporate restructuring, leadership – these are all
topics which are at the heart of intense discussion in many companies
today. Dietrich Franz, CFO at DHL Supply Chain, explains how a
finance and controlling division can successfully deal with these
challenges.
Interview with Dietrich Franz, CFO, DHL Supply Chain
After the Transformation
Is Before the Transformation

DMR: A look at the current market situation shows us that DP
DHL is in the midst of a rapid transformation prompted by
dynamic customer demands and constant technological changes.
The question arises as to how your finance and controlling division
is dealing with this challenge and what structures you have already
put into place to meet it.
D. Franz: Continuous transformation has been the normal or-
der of the day for our finance organization for a number of years.
Essentially, there are two aspects which must be considered. On
the one hand, we must succeed in making the transformation
to a “business partnering model” based on the greatest possible
transparency. On the other, we must achieve the highest level of
quality in the system and, of course, work efficiently with regard
to costs.
DMR: What does this mean concretely?
D. Franz: Let me explain this in terms of three issues we are
currently facing. Our top subject, as is today the case in many
companies, concerns “transactional accounting” and everything
related to it, above all centralization and outsourcing. Another
important subject which has the close attention of the finance
division in our group is “business intelligence” and the conse-
quent enhancement of transparency at both the business unit
and the group levels. The third issue concerns the aforemen
tioned “business partnering model”. By and large, this involves
reorienting our teams strategically and familiarizing them with
the role of the business partner. Parallel to these activities, we are
outsourcing activities such as reporting which do not contribute
value. We have already set up reporting factories to handle these
duties in their respective divisions. Our progress to date encou-
rages us to maintain this course. The ultimate goal is to bundle
all of the transactional activities of reporting and to make them
less expensive, but more effective, through standardization and
harmonization. Major central functions such as treasury, con-
solidated accounting, and cash pooling have been centralized
for years, by the way – but we are continuing to evolve in these
areas as well.
DMR: What has been your experience with the Multi Shared Ser-
vice Center? Are you even playing with the idea of going back to
“insourcing” for specific areas?
D. Franz: No, the trend to “offshoring” will very definitely con-
tinue. Our experience shows that “offshoring” is a highly pro-
mising business model because significantly higher quality can
be achieved when the cooperation with service providers func-
tions properly. I was just recently involved in a discussion about
how difficult it is to implement compliance on certain emerging
markets. It became very clear at that time that compliance can,
in the end, be secured only by means of centralized accounting
processes and by separating certain process steps.
DMR: So the focus is exclusively on the core business?
D. Franz: Generally speaking, yes, but with the two dimensions
of “Business Partnering” and “Customer Facing”. Activities
which are not directly related can be centralized or outsourced
abroad.
DMR: You have touched on an interesting subject here by referring
to the “business partnering concept”. Its aim is to relieve finance
people and controllers of more and more of their duties in opera-
ting processes and to integrate them more tightly into the decision-
making process. Does their influence go beyond the strictly financial
perspective? What influence does DP or the finance and controlling
division have on issues of content and strategy?
D. Franz: We have made a huge leap forward in the implemen-
tation of the business partnering model. Much has changed for
the better – but we still have a lot of work to do. There are two
reasons for this. One is that not everyone has understood and
internalized the concept of the business partner. The second is
that we are still working on setting a well-rounded “business
partner concept” down on paper.
DMR: I would like to go into more detail about the implementa-
tion. I was myself involved with the subject when I was program
leader at Deutsche Telekom – it is a really great idea at first glance.
However, it proved to be very difficult to transit to an operational
implementation, especially when you remember that you have here
a concept which is managed from headquarters.
D. Franz: That is quite true – a centralized implementation is
indeed a real challenge. We have dealt with this by working with
HR to draw up specific requirements concerning the capabilities
necessary for this task. This is important so that everyone knows
precisely what must be done. Owing to my experience, I believe
that the important point is to cascade the contents through all
of the management levels, to maintain a dialog throughout the
coaching process, and to conduct oneself specifically to the si-
tuation and subject. We utilize various communication and lea-
dership instruments for this purpose, so-called “peer coaching”
among them.
DMR: So a coaching approach means that you share your expe-
rience with the CFOs and CEOs of other divisions and interact
with one another?

D. Franz: I try to pass on my experience to the colleagues in
other divisions and to enter into dialog with them whenever an
occasion presents itself. However, this is more likely to happen
at the CFO rather than the CEO level.
DMR: When you are moving in the direction of business partners,
this would be the perfect dream – throughout the entire corporation,
CFOs and CEOs are in perfect step with one another!
D. Franz: The top executives on the management team at DP
DHL meet regularly at least twice a year to talk and interact
with one another in any case. But I see “business partnering”
as a topic which is more pertinent to the CFO functions. Ne-
vertheless, I also speak within my division with the CEOs and
other functional heads at DHL Supply Chain and ask them if
they are receiving adequate qualified support from the CFOs
assigned to them.
DMR: Speaking of “peer coaching” – we just touched upon the
field of tension between finance, controlling, and HR. Coaching
is a traditional HR instrument. Is this a method which you have
standardized?
D. Franz: Yes, we make use of a large spectrum of standardized
executive training concepts in the group. Since we started doing
this at the end of 2010, we have been able to reach between
500 and 1,000 managers by this means. One positive effect has
been the establishment of a basis of trust which enables us to
give colleagues from other divisions a small glimpse of our own
subjects, issues, and challenges.
DMR: One key topic in this context is “leadership”. Do you have
leadership principles which have been broken down and are incor-
porated into specific programs?
Dietrich Franz vhas had more than seventeen years of experience in the logistics industry. In his position as
CFO, he is responsible for all of the financial aspects at DHL Supply Chain Division, including accounting,
controlling, investments, and compliance/risk management. The finance organization is supporting the
realization of the DHL Supply Chain Strategy 2020 and is itself going through a transformation process.
Franz came to DHL in 1998 and has since then held a number of different positions within the group: EVP
Corporate Controlling, CFO Corporate Canter /Services, CFO DHL Global Forwarding Latin America, and
Senior Vice President in the IndEx program.

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