“The Basis Of The Essentials Is Our Shared Values” – Gunter Thielen Talks About The New Bertelsmann Essentials

The revised Bertelsmann Essentials made their debut in Berlin at the Management Meeting just before Christmas. Today, in a letter, Gunter Thielen presents the new, revised version of the Bertelsmann Essentials to all employees worldwide, in ten languages. In an accompanying interview, our Chairman and CEO talks about the importance of the Essentials and their four core values – partnership, entrepreneurship, creativity and citizenship – for everyone at Bertelsmann, as well as about our company’s mission and commitment to good citizenship.

Why does Bertelsmann need new Essentials?

I wouldn’t call them "new" Essentials, but an updated version of the longstanding ones. Their expression of the elements of our corporate culture have stood the test of time. This revision condenses and focuses the Essentials into their core messages, which will facilitate their communication to employees and executives and hopefully enhance their effectiveness. The international employee survey in 2002 clearly demonstrated the interdependency between a vital corporate culture and business performance. The interlinked correlation between leadership in partnership, employee identification and the success of the business sparked many valuable discussions among the company’s senior leadership.

And why does Bertelsmann need Essentials at all?

A corporate culture in which employees, executives and shareholders work together as partners would be inconceivable if the parties involved did not establish shared values and basic goals. That is what the Essentials do. They build on the principles of a corporate culture – shaped by Reinhard Mohn – that has evolved over decades at Bertelsmann. They create transparency and orientation for all and a basis for identifying with the company and with the shared goals. The Essentials provide answers to questions like "Who are we?," "What do we strive for?," "What is important to us?" and "How do we work together?" They make the actions of everyone involved foreseeable and accountable. And ultimately, they are what sets our company apart and makes us proud to be part of Bertelsmann.

How specifically does the revised version differ from the "old" Essentials?

In terms of content, the revised wording is consistent with the 1998 version. The economic goals were formulated more precisely in the new Mission Statement. Instead of "an appropriate return on the capital invested" it now reads "a return on the capital invested that safeguards the growth and continuity of the company." A clear statement of obligation was added: " We expect everyone at Bertelsmann to adhere to this mission and these core values." The basic values previously described in twelve sections are now summed up in four sections.

Do other companies in Germany and internationally have anything comparable to the Essentials?

Yes, of course. Many companies have guidelines and principles. Our Essentials are unique for their emphasis on leadership through partnership, on entrepreneurial spirit, decentralism and citizenship. For us, the Essentials are central to a clearly stated mission that leads in to the four core values.

What role do the Essentials play in the company’s history?

They are a key driving force behind our success. For example, in the past three years we’ve seen how the revival of entrepreneurial motivation has rekindled the spirit of Bertelsmann’s businesses and demonstrated what kind of energy is inherent in a decentralized company.

How do centralized values get along with the idea of a decentralized company?

Famously. The great importance of decentralism is firmly embodied in the Essentials, as in the sentence: "The principle of decentralization is at the heart of Bertelsmann’s management philosophy." Above and beyond this, we went through an intense process to ensure that the Essentials represent the common denominator of all divisions and all operations. Ideally, the value systems of decentralized divisions and companies will now group around this shared core.

Are the four cornerstones partnership, entrepreneurship, creativity, and citizenship all equally important?

Yes. Unconditionally.

Where do the Essentials apply?

Worldwide, wherever there are Bertelsmann companies and businesses. The Essentials were adopted by the Executive and Supervisory Boards and therefore apply in all of Bertelsmann’s majority holdings. We also hope that they will be discussed and constructively acted on in our joint ventures and minority holdings. The Bertelsmann Essentials are easily integrated with the specific values of a given division or company.

How do you ensure their international applicability?

Previously, the Essentials were translated into German and English only. Now they are available in ten different language versions: Spanish, French, Chinese, Italian, Polish, Russian, Dutch and Portuguese. Bertelsmann has become very international, and we would like to facilitate communicating the Essentials by making them as easily understandable as possible., The Essentials underscore their international validity from the fact that they were discussed and developed by international committees, such as the BMRC and at the Year End Management Meeting 2004.

How do you plan to ensure that the new Essentials are actually put into practice and observed in the companies?

The Employee Survey 2006 will give us an opportunity to monitor whether the new Essentials have become a living reality in our company.