DNA EXECUTIVE Summary Need for Corporate Culture Management The Need for corporate CULTUREManagement Kempinski is a leading brand in today’s global luxury hospitality market. Kempinski’s appeal is based on a long and impressive history of excellent hospitality. While our tradition is deeply rooted in European hotelier culture, today it also lives and prospers in Asia, Africa and the Middle East. Around the globe, various cultures and historical backgrounds add new interpretations to our European heritage every day. Today, Kempinski unites many cultures and backgrounds; never before has Kempinski been able to profit from such a rich and diverse pool of talent. And in the past decade, Kempinski has grown faster than ever. Almost every day, new faces join the team, enriching us in many ways by writing their part of Kempinski’s story. This growth and multi-culturalism is a great opportunity - yet it is also a challenge. With every hotel opening and entry into a new cultural region, capturing and framing the essence of the Kempinski experience gets harder, but also more important. Given the median 18% of global staff turnover and the number of new staff recruited every day, your role to pass on our cultural DNA to the next generation and to newcomers is crucial. This is particularly important when we undertake mass recruitment for new properties, when often only the General Manager and Heads of Department will come from Kempinski. And consider the costs of turnover; the replacement of an employee will be equivalent to 30% of their annual salary; this rises to 50% when we need to replace a manager. Our Culture is Unique Our employees need to understand whom they work for and have a consistent experience of Kempinski. We need to promote internal branding of Kempinski, as ‘how’ we work, our corporate culture, is very closely tied to ‘what’ we deliver, our external brand promise and the guest experience. Only if we agree on clearly defined common values and a sustainable philosophy, can we preserve the Kempinski essence and deliver a consistent brand now and in the future. Employees who identify with Kempinski’s culture, vision and brand will have a greater understanding of and commitment to Kempinski’s signature services or our superior service standards. And higher standards of service quality are linked to a positive business benefit. At the same time, it is crucial to keep in mind that Kempinski is also driven by the individuality and entrepreneurial spirit of its hotels and its employees. And you have the unique capacity to share Kempinski’s cultural DNA with all staff, both existing and new. So what is it that makes our hotel group, and your hotel, special? What distinguishes the Kempinski experience from any other hotel experience? Kempinski’s Approach to CULTURE Management In 2008, Kempinski initiated an innovative and comprehensive analysis of its core values in order to identify our cultural DNA. Since our employees are the ambassadors of our brand, who better to base our analysis on than Kempinski team members themselves? We conducted numerous interviews among our management and employees in order to understand how you feel about the essence of our company. We were able to identify five DNA values that proved to be universal throughout all regions and hotels, describing a unique Kempinski identity: Creating Traditions, Entrepreneurial Performance, People-Oriented, Straightforward, and Passion for European Luxury. Implementing DNA Of course, identifying and understanding Kempinski’s cultural DNA can only be a first step. The full potential of a common culture can only be realised if everyone fully understands our DNA values and commits to these values. A participative and story-driven approach – engaging employees in dialogue about their personal experience and exploring how they are already living our DNA values - is particularly appropriate to Kempinski’s way of doing things. Sharing our own, real-life experiences with our DNA values helps make our culture tangible and personal. How a floor butler in China creates traditions, how a chef shows entrepreneurial performance, how we assist our guests in a straightforward manner, how we are people-oriented even with our smallest guests and why even those just joining Kempinski have a passion for European Luxury – these are all essential to making our company unique and successful. the power of Storytelling Memorable stories provide vital links between global messages and the individual context each of us works in. Stories allow a deeper understanding to emerge, as employees and managers interweave group-wide values with their dayto-day activities. The DNA project will realise this story-driven approach though a cascading communication process, starting at the very top of the company. You, as our General Managers or Heads of Department, need to lead by example and fully commit to the DNA values first, in order to inspire others to follow your lead. You are the most powerful ambassadors for our culture when it comes to passing on DNA values to employees all around the globe. It is your stories that will inspire and empower others to share their experiences and actively work on implementing the DNA values in their everyday work. Your commitment supported by specifically designed targeted trainings, recruitment techniques, new initiatives, new employee orientation and internal communications, will help implement the DNA project effectively throughout Kempinski. With the DNA projects we create awareness for Kempinski’s cultural DNA. By engaging our employees in the implementation process, we empower them to pass our culture on to new employees. In this way, we can continue to harness the decentralised strength of our employee’s entrepreneurial spirit and individuality. Kempinski will continue to respect the regional and local autonomy that is so crucial to the Kempinski experience, while also ensuring a high level of consistency. It is clear that we need to implement a framework for Culture Management and that we need to preserve our DNA for the generations to come. The BOTTOM Line A shared culture will provide a range of benefits to the employees involved. Their understanding of and identification with Kempinski will be strengthened. Transfers and exchanges within the group will be facilitated, and certainly improved on versus the 1% currently transferring within the company today. By engaging and inspiring our employees, we will bolster their motivation, reliability and ambition. And this means staff will be encouraged to remain with Kempinski long-term, reducing turnover rates. An explicit DNA will also support recruiting processes. The Kempinski values and the stories illustrating each value will inspire guidelines for recruitment, making it easier to find the right candidates for an opening or better identify the talents needed to excel in a specific position. A shared culture and understanding of how to ‘be’ Kempinski will help staff succeed in delivering superior service quality and signature Kempinski services to our guests. This in turn will bring the company real business benefits of customer satisfaction and loyalty. We will be able to measure not only whether our DNA is understood but whether it is being implemented, through the Employee Satisfaction Survey. We will also be measuring Turnover rates as an indicator of the impact our culture has on staff retention and how well we’ve adapted our recruitment processes. The Kempinski DNA: Is championed from the top; Is “chased” from the bottom; Has a connection to daily business; Touches everyone; Delivers consistency; Delivers relevant information; Works both on a hotel and on a group level Is monitored and measured. All team members need to understand how they can be part of creating a living Kempinski tradition. A common culture will help employees to focus their energy on what makes Kempinski great! The EMPLOYEE Experience Attract great new Talent The framework for Culture Management, a positive employee experience can be achieved through efficient management. From a potential employee’s first impression about Kempinski as an employer to the moment an employee leaves Kempinski, we can create long-lasting good will. Each step of the employee experience cycle has a significant impact on the overall employee experience. And you are a vital part of creating a consistent and positive employee experience. How you behave as a manager and as a representative of Kempinski directly impacts how an employee will perceive their interactions with the company. Throughout the lifecycle of an employee, there will be several major ‘touch-points’ when they will have an experience and an impression of the company, as well as the many daily interactions with colleagues and management. So what can you do, as a manager and representative of the company? Your role is crucial; you will need to take ownership and manage these specific touch-points in a positive way. Select the best Talent Resignation Task Force The Employee Experience Cycle Attract great new Talent Empower through Training Transformation Promotion We need to attract great Talent and more potential employees who already buy in to Kempinski’s internal culture. Potential employees need to be kept interested in Kempinski and motivated to continue through the application process, which is the first contact they will have with Kempinski. Everyone they come into contact with will be seen as representing Kempinski – your role is to be the best possible ambassadors for Kempinski and our culture. Select the best Talent Both potential and existing employees will undergo a selection process for a new role. Their feelings towards the company will be strongly influenced by how you and your team manage the interview process (from the invitation, to the interview itself, as well as follow up) up to and including either a job offer or a rejection. Each of these moments is key to a positive experience of Kempinski and how you treat potential recruits influences this experience. Let’s not forget the every day Retirement Dismissal / Lay off Take the Time to Talk Together Empower through Training Whether through orientation, skills-specific training or on-the-job training, you can help staff make the most of their abilities. Training provides staff with the tools they need, plus the confidence that they are doing their jobs well. As managers, your commitment to life-long learning for your staff will help Kempinski to have skilled, professional employees who understand our brand promise and are capable of anticipating and fulfilling our guests’ wishes. Take the Time to Talk Together It’s no coincidence that we’ve called evaluations at Kempinski ‘Time To Talk Together.’ When you evaluate an employee’s performance as well as decide together with them on their next career steps, your capacity to listen and to engage in open dialogue will make your employee feel respected and of value to the company. Whatever the outcome, a well-conducted evaluation can contribute to a positive employment environment. What’s the next step? After evaluation, possible outcomes you might agree on are promotions, transfers, participating in a task force, continuing in the existing position, or even departure. Each of these outcomes should be handled with as much grace, honesty and efficiency as possible. Even if the employee leaves Kempinski, whether they resign, retire or are laid off, your role is to ensure this is done elegantly. This is particularly important as it shows your respect for your staff, especially those who have served the company for many years. In addition, handling the exit process well will also allow us to begin focusing on alumni relations as a way of re-recruiting good staff. Let’s not forget the every day The Employee Experience cycle described here focuses on the major touch-points during an employee’s working life at Kempinski. Yet our daily interactions need to be just as positively managed as these specific touch-points, as this is what will really reinforce your message that you are committed to your staff and creating a great working environment. Throughout the employee experience cycle, our company will be represented by you, our General Managers and Heads of Department This is why it’s crucial that you give importance to each stage or touch-point of the employee experience. Each moment contributes directly to the employee’s levels of satisfaction and indirectly to what they will contribute to the company. Higher employee satisfaction levels are linked with higher service standards, greater customer satisfaction and loyalty. Expectations of what Kempinski can offer employees and what employees can offer Kempinski need to be well defined to better fulfil potential and increase satisfaction. The Employee Experience touch-points will be the starting point for a new understanding of how employees experience Kempinski. New leadership training will focus on our core values and how managers can lead and inspire staff, respecting different managerial styles and the multi-cultural environment we do business in. dna PROJECTTeam The DNA Implementation project is once more being supported by St. Gallen University, who will also be available to moderate the pilot workshops held for General Managers, Regional Staff and Corporate Staff. The inter-disciplinary project team at Kempinski is made up of Henrike Gosemann – VP Talent & Education, Katherine de Fontaine – VP Training, Anne-Marie Bettex – Director of Organisational Research & Planning, and led by Mia Norcaro – Director of Internal Communications. Regional DNA Champions are a vital part of bringing the programme to each region China: Simon Lloyd - Regional Strategic Planning Manager Eastern Europe: Balazs Csidei - Regional Director People Management Western Europe: Maren Krützfeldt - Regional Director of Training Middle East & Africa: Karen Thorburn - Regional Director of Training For more information contact: [email protected] “It’s all about People” 10
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