A strong corporate culture remains essential for Deutsche Bank’s long-term success and its stakeholder relationships.
Since 2013, the approach to strengthening our corporate culture has been multi-pronged. In addition to a clear tone from the top, the Bank has focused on actively engaging employees, anchored the values and beliefs in all people processes, and embedded the values in business processes, practices and policies. This has gone hand in hand with an increased focus on robust controls and greater personal accountability.
Embedding culture in business processes, practices and policies
Since the announcement of Strategy 2020 in April 2015, the Bank has moved swiftly into implementation, effectively embedding the values and beliefs in its strategy. This has included a more focused regional footprint, simplified product offering and disciplined client selection. Further information: chapter Strategy 2020 (Annual Report 2015)
Specifically, the Bank has decided to exit ten countries and certain product categories and to cease offering certain products to certain client segments, such as onshore investment banking in Russia. New product approval processes have been strengthened and the assessment of suitability of existing product categories and clients has changed. The know-your-client (KYC) and client onboarding processes have subsequently also undergone a thorough review. All of these actions serve to further embed integrity, sustainable performance, client centricity and discipline.
Anchoring the values and beliefs in all people processes
HR has concentrated on anchoring the values and beliefs in all people processes – from recruitment to performance management, talent development, promotions and remuneration. In 2015, recruitment and referral processes and policies were strengthened to ensure new employees fulfill the Bank’s requirements on conduct and living the corporate values. Also, for the second consecutive year, the annual performance management cycle focused as much on how employees go about their work as on the results they achieve.
Deutsche Bank places increasing importance on managing and developing employee performance holistically and regularly giving feedback and taking appropriate actions. All talent development programs have a strong culture component as part of their curriculum. When employees are being considered for promotion, it is now standard for managers to assess how candidates demonstrate the values and beliefs in their daily business.
Effective consequence management as well as escalation and sanctioning mechanisms are basic conditions for cultural change. The Bank has improved its processes and practices and installed clear escalation mechanisms to ensure compliance, investigate misconduct and take disciplinary action as required.
When making compensation decisions for Material Risk Takers, employees whose work is deemed to have a major influence on Deutsche Bank’s overall risk profile in accordance with the European Union’s Capital Requirements Directive IV, appropriate consideration and documentation of behavioral factors are required. Further strengthening the control environment, the Bank’s control functions have been asked to provide robust input (positive or negative) on all Material Risk Takers, which will be considered in the compensation decisions. Further information: Compensation Report 2015