Mercedes-Benz Group: Driven by Inspired, Empowered, and Diverse Minds

When it comes to building the world’s most desirable cars, Mercedes-Benz leverages – besides creativity and dedication – strongly on the power of diversity and inclusion.

We had the privilege of interviewing the company’s Chief Executive Officer, Ola Källenius, and the VP of HR Policies & Services, Dr. Annette Matzat, on the matter. And we learned that building a culture of diversity and inclusion isn't a one-time effort. Nor is it confined to a certain group of people. It starts from within. It is firmly rooted in the belief that success is closely linked to the boldness and commitment from the entire team.

Read on for the conversation highlights.

Ola and Annette assert with clarity: Diverse teams yield greater power and achieve heightened success. While the pathway to such levels of achievement remains a puzzle for many companies, these leaders generously share their strategic approaches, underscore priority areas, and set forth an even more ambitious target.
 

How does diversity and inclusion shape the strategy and goals of Mercedes-Benz?

Ola: Teams from multiple backgrounds are more powerful. The transformation of Mercedes-Benz to be more sustainable will only be successful if we also transform ourselves as a team. To harness the power of our individual strengths in this process, we are constantly working to create a culture in which everyone feels encouraged to contribute to the company’s overall success.

Annette: Our eight principles of collaboration define how we work, communicate, lead, and interact with one another. They all have one thing in common: They put people first! In particular, the principles of empowerment and co-creation are the foundation of effective collaboration – the willingness to treat each other with respect, trust, inspire and engage each other. With a view to the future of mobility and the transformation of our industry, we need an appreciative culture in which a pioneering spirit and lifelong learning can grow and thrive.
 

Where have you most recently experienced the benefits of a diverse and inclusive team?

Ola: Hard to pick just one occasion. At Research & Development, there are global teams responsible for the development of our new operating system MB.OS. These teams are spread around the globe, literally working in a follow-the-sun-method. They take into account the individual regional requirements as well as particular wishes and preferences of our customers in different areas – and bring them to our cars.

Annette: Diverse teams also help us in human relations, especially when it comes to culture and transformation. We have recently established a so-called culture swarm focused on this topic. With the help of this group, we can better understand and respond to the diverse needs of our employees.

How has your approach to diversity and inclusion evolved over time at Mercedes-Benz? What have been some key factors driving these changes?

Annette: Our Global Diversity Office was officially founded in 2005 and initially focused on gender diversity. We are focused on three strategic pillars: gender diversity, internationality and inclusion. The latter has increasingly become a priority as it unites all dimensions and builds a sustainable basis for a successful transformation to building the most desirable cars in the world. This broader approach is also reflected in our mission statement: ‘We embrace the uniqueness of every team member and are committed to promoting an inclusive culture with equal opportunities for success.’
 

The diversity and inclusion journey is one of continuous progress. What are some areas you hope to make more progress on?

Annette: Since the creation of our Global Diversity Office, we have been able to achieve significant changes, both culturally and quantitatively. Nevertheless, we are not yet as diverse as we would like to be, especially in technical fields. For this reason, we’re continuously applying both time-tested and new measures to increase gender diversity.

Guided by a simple, yet powerful, vision of pursuing diversity and inclusion because it is “the right thing do to,” the leaders share their approach to establishing accountability, delve into the board's role in shaping the organizational tone, and examine strategic initiatives that amplify their vision.
 

What metrics does the company use to track progress in promoting diversity and inclusion? How do you ensure accountability?

Ola: We have defined clear goals for our strategic fields of action: gender diversity and inclusion. After achieving our 2020 ambition of attaining a 20% share of women in senior-level positions, we are taking a step further – our new target is to increase this number group-wide to 30% by 2030.

Annette: Inclusion also matters. We want to provide an inclusive working environment, where all employees have the same opportunities and where we honestly value the uniqueness of each team member. This explicitly applies to all dimensions of diversity. To measure where we stand with this goal today or at any given moment, we’ve defined an Inclusion Index. The index reflects the proportion of positive responses in our employee survey to the question: "Everyone at this company is treated fairly regardless of ethnic background, race, gender, age, disability, or other differences not related to job performance."
 

What role do board members play in promoting diversity and inclusion within the organization? And how do they ensure that their actions are consistent with the organization's values and mission?

Ola: Alongside sustainability and integrity, diversity forms the foundation of Mercedes-Benz's sustainable business strategy – not because we have to, but because we are convinced that it is the right thing to do. We aim for an integrated approach. We promote diversity and inclusion – both vis-à-vis our employees and all other stakeholders. That’s why each member of the board has personally signed our Diversity & Inclusion Statement. And obviously, we all have to walk the talk: Being credible, acting as role models, stepping up for equal opportunities. And we have to listen: Some time ago, I met with members of the “Queers & Friends” community at Mercedes-Benz. We had a great chat and I was able to take home valuable insights and perspectives from this meeting.

What have been some challenges on the organization’s diversity and inclusion journey, and how has your organization overcome them?

Annette: We are a technology-driven company and therefore need a high proportion of employees with a technical or engineering background. Unfortunately, the proportion of women with degrees in these fields is comparatively low, especially in Germany. That is why we are committed to help changing that. With “Genius” in Germany, for instance, we have an education initiative in place; our vocational training departments run initiatives such as “Girls’ Day,” and we cooperate with external partners and universities to attract women to technical professions and thus ideally to our company at an early stage. In addition, we have developed initiatives such as the “Female Career Lounge”, which are specifically tailored to the needs of future female employees. We also offer mentoring programs addressing talent within the company. Another important aspect is the life balance for all our employees. We proudly offer flexible working conditions, job-sharing opportunities and childcare, just to name a few, in order to suit the lifestyle of all of our employees.

Product innovation, industry prowess, and a culture of inclusivity form the cornerstone of success at the Mercedes-Benz Group. As the company progresses toward its vision, Ola envisions that not only the product but also the team will emerge stronger from this transformative journey.
 

How does Mercedes-Benz embed diversity and inclusion within the talent strategy?

Annette: Starting with guidelines for fair interviewing for hiring managers, to barrier-free recruiting events, to name just a few elements. These principles of diversity and inclusion continue throughout the assessment center, the assessment panels and the assessment seminars for newly promoted executives.
 

When it comes to engaging with external stakeholders, such as customers or community groups, is there a diversity and inclusion component?

Ola: Diversity and inclusion can’t stop at the factory gates. It’s a universal effort. Example: we’ve offered driving aids in our vehicles for decades. These can be adapted specifically to meet the needs of individual drivers. Our goal: to provide people with the mobility that supports and delights them. Individual mobility means personal freedom. And that’s what Mercedes-Benz is here for.

Annette: Engaging beyond company borders is an important aspect for us, as we see diversity and inclusion as a societal responsibility. As a founding member and first signatory member of the German Diversity Charter, we work with other companies to advance the discussion on diversity management in Germany. However, we also engage with specific communities like the LGBTIQ+ community. While we were the first automotive company to sign the United Nations initiative to combat discrimination against individuals who identify as homosexual, bisexual, transsexual and intersexual. Another staple of our advocacy efforts and initiatives to celebrate this community is the Mercedes-Benz Pride and our participation in Pride parades around the globe. In line with that, there are sponsorships supporting various LGBTIQ+ associations. These are just a few examples illustrating the great importance of engagement with stakeholders for Mercedes-Benz.

How do you relate diversity and inclusion to other business priorities, such as growth and profitability?

Ola: As I mentioned at the beginning, we want to emerge even stronger from the transformation process – not only at the product level but also as a team. And at Mercedes-Benz, we are convinced that diversity and inclusion can make a large contribution toward that goal. Diverse teams are stronger, more creative and more successful teams. And much more fun to work with, too.