MBA Global Leadership Series: Liz Mohn, President of the Bertelsmann Foundation
Inside a Successful Corporate Culture

As one of the largest global media conglomerates in the world, Bertelsmann Corporation has created and implemented successful corporate practices, which have brought the company from a small publishing house in the 1930s to a global enterprise of 85,000 workers in 60 countries today.

One of the driving forces behind this success is Liz Mohn, President of the Bertelsmann Foundation, member of the Board of Directors of the Bertelsmann Group and managing member of the Bertelsmann Foundation in Germany. For decades Liz Mohn and her husband, Reinhard Mohn, founder of the Bertelsmann group, have been working to build the company as well as preserve the Mohn family rights within the company.

Their effort in defining and implementing a positive and motivating corporate culture within Bertelsmann has proven successful. The company continuously strives to create an environment which fosters innovation and creativity and cultivates team spirit and trust among colleagues.

Know What the People Need

Mohn stresses that to create a successful corporate culture, you have to figure out what people need. To figure out exactly what their employees needed, the company went straight to the source, surveying workers. The results showed that a partnership-based management, where staff truly feel part of the company, leads to higher profits and more motivated workers. Additionally, employees thrive in an environment where they can identify with the firm’s goals and philosophies. “The company is all of us,” she states, and employees should feel that.

These are only some of the many policies that Bertelsmann implements to create team spirit within their corporation. At Bertelsmann, employees have creative freedom and participate in the decision making process. These freedoms create a motivating atmosphere, which is crucial during busy work periods, as employees feel positive about being part of the team instead of unmotivated or frustrated by the heavy workload.

Profit sharing, Mohn says, is also a key motivator. Profit sharing allows people to work towards a common creation of wealth. Respecting the culture and religions of individuals within the organization is also a necessary ingredient to create a successful corporate culture. Mohn advises that companies should never try to uproot their employees, but instead understand and respect their beliefs and where they come from.

This is especially important within Bertelsmann, a company which does businesses in around 60 countries and has the challenge of maintaining cultural values within each region, while at the same time implementing one global philosophy. Mohn believes that core values, such as respect, are common for every country. Their corporate culture encompasses these basic principles.

Allowing employees the freedom to act, which can be achieved by decentralizing the structure, also increases motivation. Mohn says delegation of responsibility is a must for a strong, confident business. She also points out that giving responsibility is actually a loan, and if it goes wrong, “we can always take it back.”

Another key element is encouraging open and honest dialogue within a company. “Two heads are better than one, and many heads are better than two,” Mohn says. Hearing and sharing several points of view, and involving employees, help foster creativity and an open flow of ideas.

Her final two ingredients are succession and awareness. Mohn says it is important to groom the future managers of an enterprise to create continuity within the company. Just as important is being aware of the corporate culture, making sure it is infused throughout the company and that employees fit in to the culture. An important aspect of this is getting to know the employees. Mohn does this by regularly having breakfast with her colleagues.