Download "Bayer | Dynamic Shared Ownership (DSO) Webinar"
%3Aformat(webp)%2Fi.ytimg.com%252Fvi%252F_mubMfgrdIQ%252Fhqdefault.jpg%253Fsqp%253D-oaymwEmCOADEOgC8quKqQMa8AEB-AH-CYAC0AWKAgwIABABGCggXyhyMA8%253D%2526rs%253DAOn4CLBCB2Sbs0pz--pd6xceGW9x6IiAZw&w=1139&q=75)
Table of contents
Similar videos from our catalog
%3Aformat(webp)%2Fi.ytimg.com%252Fvi%252F13YGSdK1hEA%252Fmaxresdefault.jpg&w=1139&q=75)
%3Aformat(webp)%2Fi.ytimg.com%252Fvi%252FFRvBVDIM6Mo%252Fsddefault.jpg&w=1139&q=75)
%3Aformat(webp)%2Fi.ytimg.com%252Fvi%252FI6lE0sTgnLk%252Fmaxresdefault.jpg&w=1139&q=75)
%3Aformat(webp)%2Fi.ytimg.com%252Fvi%252FzG2oUD9j8Xo%252Fmaxresdefault.jpg&w=1139&q=75)
Video tags
Subtitles
Russian
00:00:10
[Music]00:00:20
well good afternoon everyone and thanks00:00:22
a lot for taking time out of your day to00:00:24
join this session uh if you've been00:00:26
following Bayer for the past couple of00:00:28
months you've likely heard us talk about00:00:30
our new operating model Dynamic shared00:00:34
ownership now that's not a00:00:35
self-explanatory term I know uh as the00:00:38
person who coined it I freely admit that00:00:41
uh in fact if if any of you have a00:00:43
catchier term feel free to reach out to00:00:46
me but because it's not self-explanatory00:00:49
we wanted to take some time to walk00:00:51
through exactly what dynamic shared00:00:53
ownership or DSO is and what it yields00:00:58
over the next hour you'll hear from Gary00:01:01
Hamill a colleague and leading thinker00:01:03
in this space who authored the book00:01:06
human00:01:07
ocracy you'll hear from Kevin Nolan the00:01:09
president and chief executive officer of00:01:11
GE Appliances which is a hire company on00:01:15
how they've Incorporated similar ideas00:01:17
at his00:01:18
company and you'll hear how terms uh how00:01:21
teams across Bayer have started00:01:23
practicing Dynamic shared ownership and00:01:26
the great results they're seeing already00:01:29
that's our Focus today so please don't00:01:31
expect an update on our strategic00:01:33
options or financial performance we'll00:01:36
have plenty of time to cover those00:01:37
topics in a few weeks today it's00:01:40
important because it's going to offer00:01:42
you a glimpse into a fundamental00:01:44
redesign of our company a reimagination00:01:48
of the way a multinational company can00:01:50
operate we're moving at unprecedented00:01:53
speed and scale with the goal of getting00:01:55
Bayer back to delivering more productive00:01:59
Mission focused Work World leading00:02:01
Innovation and Superior Financial00:02:04
results to start I want to share a video00:02:07
that Gary Hamill was kind enough to00:02:09
record specifically for this event Gary00:02:12
is a Pioneer in rethinking work and the00:02:14
way companies operate in the 21st00:02:16
century and he really believes in what00:02:19
we're doing here he's an ideas guy and00:02:22
his ideas have real world implications00:02:25
about the meaning of work tapping into00:02:27
human potential and delivering great00:02:30
results at least for me it's hard to00:02:32
think of three more important goals for00:02:34
today's00:02:35
workplace with that let's play the00:02:39
[Music]00:02:46
video well hello everyone I'm going to00:02:49
offer a few remarks on what is one of00:02:51
the greatest challenges of our time how00:02:54
do we build institutions that change as00:02:56
fast as the world around them that are00:02:58
alive with the spirit of00:03:00
Entrepreneurship and that are both00:03:02
inspiring and principal that elicit and00:03:04
deserve the very best that human beings00:03:06
can give in doing so my goal is to lay00:03:09
out a bit of context for what bill and00:03:11
his team are undertaking at buyer I have00:03:13
only a few minutes so I apologize for00:03:15
some sins of omission if you want to go00:03:18
deeper in theory and practice uh you're00:03:20
welcome to look at my most recent book00:03:22
or just reach out to me to ask a00:03:23
question now with this's Preamble I'm00:03:26
going to lay out seven propositions that00:03:28
I hope will be useful in framing some of00:03:30
the challenges and opportunities that00:03:32
face buyer and most other large scale00:03:35
institutions proposition number one I00:03:38
believe we need organizations that are00:03:39
dramatically more capable than the ones00:03:41
we have right now I believe we're00:03:43
reaching the performance limits of00:03:45
managerial bureaucracy or what might be00:03:47
called management 1.0 like the00:03:50
combustion engine this technology has00:03:52
served us well for the past 150 years00:03:55
but now we have to move on to a new esur00:03:58
clearly as human beings we're we're00:03:59
facing an extraordinary array of00:04:01
challenges and the fate of our species00:04:04
depends on our ability to address these00:04:06
challenges and that in turn depends on00:04:10
the courage resilience and creativity of00:04:12
our institutions both public and private00:04:15
you know the reality is that no Society00:04:17
is more capable than its institutions00:04:20
it's a problem then that many of00:04:22
society's most important institutions00:04:23
are simply not up to the challenges that00:04:25
lie ahead buer and other Global00:04:28
institutions have many strengths but00:04:30
they're also Afflicted with systemic00:04:32
disabilities that are fast becoming00:04:34
competitively economically and socially00:04:38
untenable many years ago I wrote an00:04:40
article called The Core competence of00:04:41
the corporation but if I was writing00:04:43
that today I might call it the core00:04:45
incompetence of the corporation I've00:04:47
been in sight of hundreds of large00:04:49
institutions around the world and00:04:50
irrespective of culture geography00:04:52
industry all of them are struggling to00:04:55
adapt themselves to new realities of00:04:58
course in many ways our institutions00:05:00
exceed us no single individual for00:05:02
example can bring a new drug to Market00:05:04
but in other ways our organizations are00:05:06
less capable than we are and I want to00:05:08
highlight uh four kind of endemic00:05:11
maladies that I think we can solve we00:05:13
need to address but we need to be honest00:05:15
first of all about the problems in front00:05:17
of us you know first of all human beings00:05:20
are daring our organizations not so much00:05:23
we do all sorts of courageous things in00:05:25
our lives like skiing scuba diving00:05:27
paragliding or just changing jobs00:05:29
starting a family or launching a small00:05:32
business large organizations by contrast00:05:34
tend to be a bit timid and faint-hearted00:05:37
managers are often reluctant to aim for00:05:39
goals that lie outside the range of00:05:42
planning they want safe targets not00:05:44
stretch goals in a way I would argue00:05:47
they suffer from add not attention00:05:49
deficit disorder but ambition deficit00:05:52
disorder too often when I challenge00:05:54
leaders to do something truly new the00:05:57
first question they will ask is well00:05:58
who's already done this00:06:00
and as long as I have a lot of case00:06:01
studies and a clear road map they're on00:06:03
board but when I challenge them to do00:06:05
something that is truly new to you know00:06:07
actually lead they push back and that's00:06:10
a problem because unprecedented00:06:12
challenges require unprecedented00:06:15
Solutions now you may or may not be a00:06:17
fan of Elon Musk but consider for a00:06:19
moment the case of SpaceX SpaceX is00:06:22
driven by the goal of helping human00:06:24
beings Escape their ancestral planet and00:06:28
and Elon Musk understand understand that00:06:29
without a bold aspiration you don't get00:06:32
bold thinking like the idea of reusable00:06:34
Rockets last year SpaceX launched a00:06:37
rocket every four days and has driven00:06:40
the price per kilo of space cargo down00:06:43
by 90% The Point here is very simple no00:06:47
organization outperforms its aspirations00:06:50
and when large organizations stall out00:06:52
it's not because they were resource00:06:54
constrained but it's because they ran00:06:56
out of ambition second people are00:07:00
resilient this was most notable during00:07:02
uh uh Co when we had to radically uh00:07:04
rearrange our professional and personal00:07:06
lives but we also change proactively for00:07:09
what we care about I sometimes have00:07:11
heard leaders say that people are00:07:13
against change but if that's true how do00:07:15
you explain the unprecedented rate of00:07:17
change all around us who are the authors00:07:20
of all that change if not us but again00:07:23
by contrast large organizations tend to00:07:25
be rather plotting and inertial and00:07:28
often find themselves behind the change00:07:30
curve on this point I could offer dozens00:07:33
of examples but let me just choose one a00:07:36
20 years ago yoga started to go00:07:39
mainstream and this trend reached scale00:07:41
first of uh in the first instance in00:07:43
places like California as men and women00:07:46
sought new ways of achieving physical00:07:48
and and mental well-being and yet most00:07:51
of the Legacy Sports were makers missed00:07:54
the trend because it didn't fit their00:07:57
definition of Athletics it wasn't a the00:07:59
sport and there was no ball and that's00:08:02
why for example today Lululemon is worth00:08:05
twice as much as Adidas now in a world00:08:08
of accelerating change the most00:08:09
important question for any institution00:08:11
is this are we changing as fast as the00:08:14
world around us and often the answer is00:08:16
no that's why the typical change program00:08:19
is a catch-up program so why are large00:08:22
organizations so often caught out by the00:08:24
future a lot of it you can trace back to00:08:27
this multi-layer hierarchy with eight or00:08:29
nine layers of managers in this kind of00:08:32
an organization there are long lags00:08:34
between sense and respond by the time an00:08:37
issue or an opportunity is big enough to00:08:39
capture the scarce attention uh of those00:08:42
at the top it's already too late while00:08:44
there might be exceptions I believe that00:08:46
it's nearly impossible for an00:08:49
organization with eight or nine layers00:08:50
to outrun the future as human beings00:08:54
we're also immensely creative consider00:08:56
that there are now 30 million channels00:08:59
on YouTube this is what happens when you00:09:01
give people inexpensive uh tools to00:09:04
create digital content and platforms00:09:06
where they can share that why then did00:09:09
94% of CEOs say their organizations00:09:12
aren't very good at Innovation because00:09:14
large organizations value conformance00:09:17
alignment and discipline Above All Else00:09:19
and that creates a toxic environment for00:09:22
Innovation that's why game-changing00:09:24
Innovation so often comes from the00:09:26
startups the Renegades now with with00:09:29
Deep Pockets incumbents should have an00:09:31
innovation Advantage but they don't we00:09:34
need to change that finally human beings00:09:36
are passionate our organizations again00:09:39
not so much we're passionate about many00:09:42
things our families our Hobbies our00:09:44
communities uh uh the environment00:09:46
perhaps our faith I I have British00:09:48
friends who are passionate about Cricket00:09:49
if you could imagine that and yet work00:09:52
seldom elicits these emotions as per00:09:55
Gallop only 20% of employees around the00:09:58
world are fully engaged in their work00:10:00
that means the other 80% are showing up00:10:02
physically or online but they're leaving00:10:05
their initiative and Ingenuity at home00:10:08
this and similar data suggests that most00:10:10
organizations waste more human capacity00:10:13
than they use so to build more more00:10:16
capable organizations we have to get at00:10:18
the root cause of these afflictions00:10:20
which leads me to proposition number two00:10:24
our organizations are crippled by00:10:27
bureaucracy I live in Silicon Valley00:10:29
where I get to work with a lot of young00:10:30
companies and often their real Advantage00:10:32
is not a new business idea but an00:10:34
organization that is fast and flat and00:10:37
and fearless and free and yet when I00:10:39
come back a decade or two later all00:10:41
that's changed instead I find an00:10:43
organization that's that's portly that's00:10:45
plotting and and highly politicized00:10:48
that's how a company like like meta00:10:49
Facebook can end up with eight or nine00:10:52
uh uh layers uh and uh Mark Mark00:10:55
Zuckerberg is not very happy with this00:10:57
reality and recently he said00:10:59
I don't think you want a a structure00:11:02
that's just managers managing managers00:11:04
managing managers managing managers00:11:07
managing the people who are doing the00:11:08
work now most CEOs would agree with this00:11:11
but if I'm honest most have not had the00:11:13
guts to tackle this problem at its roots00:11:16
Bill Anderson is an exception he00:11:19
understands that as bureaucracy per00:11:20
capita goes up achievement per capita00:11:23
goes down it's a problem then that00:11:26
around the world bureaucracy is growing00:11:28
not shrinking this is true in the UK and00:11:30
Germany and France in the United States00:11:32
let me share a bit of data in the US00:11:35
over the last 40 years the number of00:11:37
bureaucratic jobs managers and00:11:39
administrator support staff has grown00:11:42
three times faster than all other job00:11:44
categories combined and this is not the00:11:47
product of increased regulation this is00:11:50
the product of internally generated00:11:51
rules mandates policies and processes by00:11:54
the way I don't think it's a coincidence00:11:56
that as bureaucracy has grown00:11:58
productivity has declined and this is00:12:01
deeply troubling declining productivity00:12:03
growth depresses wages and makes it more00:12:06
difficult for governments to fund00:12:07
critical priorities and yet as I argued00:12:10
a minute ago most CEOs have not really00:12:13
faced up to this challenge they've tried00:12:15
to find easier ways of boosting the00:12:18
share price and yet it's getting harder00:12:21
and harder to do that you know00:12:23
admittedly deburau critizing a large00:12:25
organization is difficult so you know00:12:27
many CEOs have said well let's just buy00:12:29
back our shares do another merger uh uh00:12:32
uh use contract labor Outsource whatever00:12:34
it may be and while some of these00:12:36
strategies have Merit they don't do00:12:38
anything to make a company more daring00:12:40
resilient or inventive they're they're00:12:43
they're kind of like liposuction not not00:12:45
always a bad idea but a very poor00:12:47
substitute for improving your diet and00:12:49
getting to the gym okay let's get to the00:12:51
good news proposition number five it00:12:54
turns out that bureaucracy is a choice00:12:56
not a cosmological constant and a00:12:59
growing number of of pioneering of00:13:01
Vanguard organizations have proven that00:13:03
you can buy the benefits of of00:13:05
bureaucracy the control the the the00:13:07
consistency and the coordination without00:13:09
all the costs uh let me let me share00:13:12
very quickly a few kind of thumbnail00:13:15
sketches the hire is the world's largest00:13:17
appliance company and in its00:13:19
transformation it took a 50,000 person00:13:22
organization in China and it divided it00:13:25
into more than 4,000 small00:13:27
entrepreneurial units today hire has00:13:29
only three layers and when its us00:13:31
subsidiary GE appliance uh adapted00:13:34
hire's management model it quickly00:13:36
became the fastest growing Appliance00:13:38
business in the US and in a few minutes00:13:40
you're going to hear from Kevin Nolan uh00:13:42
who leads uh GAA new cor is the world's00:13:46
most Innovative and consistently00:13:48
profitable Steel company and yet it00:13:50
operates with onethird the number of00:13:52
managers as its Global peers and by the00:13:55
way achieves twice the ROI uh the CEO of00:13:58
Vinci the the giant French uh00:14:00
infrastructure company long ago00:14:03
committed himself to inverting the00:14:05
pyramid Vinci has more than 3,00000:14:08
operating units 270,000 employees but00:14:11
only 250 individuals at head office and00:14:15
over the past decade Vinci has doubled00:14:17
the performance of the CAC 40 in recent00:14:20
years ingr saw Rand the US manufacturers00:14:23
created billions of dollars in in in00:14:25
market value by ensuring that every00:14:27
employee has the autonomy the incentives00:14:30
and the skills to think and act like an00:14:32
owner and the world's most decentralized00:14:35
Bank handles Bonin has beaten its00:14:38
European peer group every year for 5000:14:40
years their success proves that00:14:43
bureaucracy is a choice not a law of00:14:45
physics the challenge though is that00:14:47
most CEOs most leaders have grown up in00:14:50
and around organizations that fit the00:14:52
bureaucratic templat so they struggle to00:14:54
imagine a radical alternative but00:14:56
Alternatives do exist and all the00:14:59
although the Vanguard companies come00:15:01
from different Industries and and and00:15:02
different countries uh they broadly00:15:05
share similar kind of management00:15:07
principles most importantly that00:15:09
everyone there thinks and acts like an00:15:11
owner now of course not all of the the00:15:14
features of what I would call human00:15:15
ocracy not all of those are fully00:15:17
developed in every van Vanguard company00:15:19
but this is what they all aspire to and00:15:22
this is the recipe for building00:15:24
institutions that are as fully capable00:15:26
and fully human as the times demand00:15:29
by the way the potential payoff here is00:15:31
staggering by our calculations reducing00:15:33
bureaucracy by 50% and doubling staff00:15:36
engagement would add $18 trillion dollar00:15:40
to economic output in the oecd that's00:15:42
just slightly less than the size of the00:15:45
EU economy and when compared to any00:15:48
other kind of strategy more R&D more00:15:50
automation more Venture Capital more it00:15:53
spending nothing else would deliver the00:15:55
same economic upside and buyer is00:15:58
determined to claim its share of this00:16:01
prize and for the sake of all of their00:16:03
shareholders and Beyond I I hope they00:16:06
succeed proposition six in a post00:16:09
bureaucratic organization you're going00:16:11
to need many more leaders and many fewer00:16:13
managers you know 150 years ago00:16:15
industrial uh bureaucracy was young and00:16:18
at the time most employees were00:16:20
illiterate and they needed managers to00:16:22
tell them what to do and at the time00:16:24
information was expensive to to to to00:16:27
acquire and move and and the formal00:16:29
hierarchy was the means for doing that00:16:30
as each layer aggregated and escalated00:16:33
information today's realities are far00:16:36
different and yet most large00:16:38
institutions still retain this this big00:16:41
expensive administrative aristocracy and00:16:44
in a post bureaucratic organization most00:16:46
of this disappears as the work of00:16:49
managing is distributed to the periphery00:16:51
in hirers transformation for example00:16:53
12,000 middle management jobs went away00:16:57
and those individuals were not fired but00:16:59
they were reassigned to small00:17:01
entrepreneurial units and most of them00:17:03
are having a lot more fun there than in00:17:05
their old administrative uh uh roles uh00:17:08
there's also fundamental change in in00:17:11
the work of of Executives uh as they00:17:13
move from command and control to enable00:17:16
and encourage and rather than being kind00:17:18
of Administrators on steroids the most00:17:21
senior leaders become accountable for00:17:23
building new capabilities developing00:17:25
more leaders and catalyzing new00:17:27
opportuni ities finally proposition00:17:30
seven in recent decades um companies00:17:34
have worked hard to optimize their00:17:35
operating models and digitize their00:17:37
business models now they're going to00:17:39
have to overhaul their management models00:17:40
that means looking at every system every00:17:43
structure how we allocate resources how00:17:45
we plan uh how we compensate how we00:17:47
reward and rebuilding those processes00:17:50
around new principles right right the00:17:53
the the the the principles in the00:17:54
bureaucratic model are standardization00:17:56
specialization routinization and so so00:17:58
on those are not necessarily bad00:18:00
principles but they're not going to to00:18:02
help us build organizations that are fit00:18:04
for the future so instead we need00:18:07
principles like ownership resilience00:18:09
meritocracy openness community and so on00:18:12
this is a big challenge retooling the00:18:14
the the the managerial model inside00:18:17
large organizations but we're at a point00:18:19
where we really have no choice and I00:18:21
believe deeply and truly that the most00:18:24
successful organizations over the next00:18:26
decade and Beyond are going to be the00:18:28
ones that move quicker to evolve their00:18:31
Management systems and structures in00:18:33
ways that make them more resilient more00:18:35
daring more Innovative and and better00:18:38
places to work so that's the challenge00:18:40
then that is facing buyer and it's00:18:43
already moving fast down this00:18:45
transformational route to excise those00:18:48
old bureaucratic maladies and instead00:18:50
build an audacity Advantage an00:18:52
evolutionary Advantage where we're00:18:54
changing as fast as the world around us00:18:56
an innovation advantage and at the core00:18:58
of at all a human Advantage I will be00:19:00
watching with great interest and help00:19:02
where I can as buyer continues on this00:19:05
journey and and for the sake of all of00:19:07
their shareholders I hope they succeed00:19:09
and as they do they're going to create a00:19:11
compelling role model for other00:19:13
institutions around the world so good00:19:15
luck to bill and his team good luck to00:19:17
buyer and thank you for letting me share00:19:19
a few00:19:21
[Music]00:19:27
thoughts00:19:29
well that was a great primer to the00:19:31
world of new operating models and the00:19:33
energy that we want to unlock uh in a00:19:36
few minutes my colleagues are going to00:19:38
share more details of what we're up to00:19:40
at Bayer but first I'll start by sharing00:19:43
some of my journey with Dynamic shared00:19:45
ownership then I'll highlight what DSO00:19:48
is all about and finally I'll close with00:19:50
the impact that DSO creates so for me it00:19:54
started seven years before that acronym00:19:57
even came into exist existence I had00:19:59
just taken over a CEO role and I spent00:20:02
my first few months on the job talking00:20:04
to employees what I heard really struck00:20:07
me people loved the company they loved00:20:10
the purpose they believed we delivered00:20:12
good things for the world people really00:20:15
loved their colleagues they felt00:20:17
supported and cared for uh but one00:20:20
complaint kept coming up people would00:20:22
say to me Bill I can't get anything done00:20:25
how can we fix this you you know the00:20:28
first times I heard this I thought hm00:20:31
you know maybe we've got a few people in00:20:33
the wrong roles or maybe we need to re00:20:35
restructure a few things uh but then it00:20:38
kept coming up and that's when I00:20:40
realized wow we have a problem this is00:20:43
this is built into our system this is00:20:47
going to require some sort of radical00:20:49
change well as you heard from Gary this00:20:53
problem is not unique to any one company00:20:56
at Bayer we want to fix it it and that's00:20:59
where DSO comes in this isn't a00:21:02
theoretical management philosophy that00:21:04
only lives in textbooks it's a tangible00:21:07
material overhaul of every way a company00:21:11
operates this model has worked at other00:21:14
places I've had that personal experience00:21:17
and seen it work you're going to hear00:21:18
from Kevin about how it's worked Gary's00:21:21
seen it in many places I'm 100%00:21:24
convinced it's going to work at Bayer00:21:27
this is a company that's been around for00:21:29
160 years we've had to reinvent00:21:31
ourselves a few times and we're entering00:21:34
another phase of reinvention as we00:21:37
speak this time it's a fundamental00:21:40
redesign from management to Mission from00:21:43
alignment to action from CEO to customer00:21:48
uh let me drill down what that means00:21:51
traditionally decisions are made at the00:21:53
top of a big functional pyramid we have00:21:56
about 10 levels the the head of00:21:58
marketing has a set of priorities and00:22:00
steers his organization according to00:22:02
them the head of product supply has her00:22:04
team working according to their00:22:06
priorities and there's some projects00:22:08
where marketing and Supply teams they00:22:10
need to work together but in cases where00:22:12
the priorities don't align they fight00:22:15
about it and each side escalates up00:22:17
their side of the of the org chart five00:22:20
six seven layers of hierarchy to the00:22:23
heads of Supply or the head of marketing00:22:25
and then if you're lucky they reach a00:22:27
compromise00:22:28
but by then months have passed I mean00:22:31
the competition has has already taken00:22:34
off and and and done the deal and you're00:22:37
back at square one DSO turns that kind00:22:40
of thinking on its head instead of00:22:42
departmental pyramids it starts with the00:22:45
customer it's the team that actually00:22:48
works with the customer that makes 95%00:22:51
of the decisions they decide the00:22:53
marketing strategy they own product00:22:55
development if those two areas have00:22:58
conflicting priorities guess what it's00:23:00
their responsibility the teams to make00:23:03
the trade-offs and work it out it's not00:23:06
about making the boss happy but to give00:23:08
the customer the best possible product00:23:11
that's00:23:12
ownership can that work at Bayer you all00:23:16
know we're a company that's based in00:23:18
Germany you probably know there's an00:23:19
important concept here called MIT bimong00:23:22
or00:23:23
codetermination in a co-determination00:23:25
system employees are entitled to rep00:23:27
representation in company governance00:23:30
they have some ownership that way before00:23:32
I had joined Bayer I had a lot of people00:23:35
warning me about how difficult it is to00:23:37
make big changes in a company with00:23:39
codetermination I was even given a book00:23:42
on the ins and outs of German corporate00:23:44
governance by the way it's about that00:23:45
thick um well here's the00:23:48
thing I want more co-determination not00:23:52
less employees should have as much00:23:54
ownership of the mission of a company as00:23:56
the CEO not smothered under layers of00:23:59
management and governance uh at Bayer we00:24:03
had00:24:04
1362 pages of centralized internal00:24:07
regulations that are promulgated to the00:24:10
whole company uh think about that 136200:24:14
Pages that's actually longer than War00:24:16
and Peace and a lot less exciting by the00:24:19
way I think Tolstoy said it's easy to00:24:21
write laws uh it's hard to govern well00:24:25
more importantly no one could possibly00:24:27
know all these rules and that often led00:24:30
to rules paralysis we'll be cutting00:24:33
those Rules by about00:24:35
99% and then turning people loose to00:24:37
pursue the00:24:39
mission in DSO things like regulations00:24:42
and quality and governance they don't go00:24:44
away those are really important things I00:24:48
would argue they become even better00:24:50
because instead of adding an extra layer00:24:52
of controls they become part of a team's00:24:56
core responsibility00:24:58
so that might sound nice and empowering00:25:00
for employees but what does it actually00:25:02
yield what will it mean for Bayer you00:25:05
can expect faster Innovation better00:25:08
performance and more meaningful jobs at00:25:11
significantly less cost let me tell you00:25:14
about our consumer health Team in00:25:16
Southeast Asia this is an important00:25:18
growth market for the business in less00:25:20
than three months of working in this new00:25:22
model our team has been able to move00:25:24
launch dates forward for upcoming00:25:26
Innovation by five to nine months on00:25:29
different projects this is going to00:25:31
deliver €2 million euros of incremental00:25:33
value already this year which is a 30%00:25:36
increase they also tackled our lengthy00:25:38
timelines for transferring products from00:25:41
one manufacturing site to another this00:25:43
is a really important process in a time00:25:46
when Supply chains are under big00:25:48
pressure the result they were able to00:25:51
shorten our internal processes by 60% or00:25:54
over one full year and this is going to00:25:57
unlock millions of Euros in value for00:25:59
Southeast Asia and neighboring markets00:26:02
these results came in 60 days that's00:26:05
just one team right now this effort00:26:09
already involves 170 teams and 4,00000:26:13
people at Bayer imagine what it can00:26:16
deliver when scaled across all the00:26:18
people of Team Bayer we're rolling DSO00:26:21
out at a speed and a scale that's never00:26:24
been done before but we have the00:26:26
experience the unity and the confidence00:26:29
to get it right but you don't have to00:26:31
just take my word for it I'm excited to00:26:33
turn it over to my colleagues to tell00:26:35
you more starting with a video from our00:26:38
chief Catalyst Michael00:26:42
[Music]00:26:49
lorri hi everyone uh I'm excited to be00:26:53
uh part of the incredible00:26:56
transformation take taking place across00:26:59
by I joined be's Chief Catalyst last00:27:02
year in00:27:03
October and after only 3 months I've00:27:06
been Amazed by the energy and enthusiasm00:27:09
from the be team as we set out to00:27:11
redesign the00:27:14
company for over 20 years I've helped00:27:17
more than 10000:27:18
organizations accelerate growth and00:27:21
performance by applying Innovative new00:27:24
operating models new ways of working new00:27:27
approaches to leadership leveraging00:27:29
disciplines like agility lean design00:27:32
thinking systems00:27:34
thinking all this experience has00:27:37
resulted in a simple and Powerful body00:27:39
of knowledge and practice that can00:27:42
unleash a whole new level of performance00:27:44
and value in00:27:47
organizations here at Bayer we already00:27:50
have thousands of colleagues working to00:27:51
co-create and Implement Dynamic shared00:27:53
ownership across the divisions and00:27:55
enabling functions and today I'll share00:27:59
more detail on how we're going about00:28:01
doing00:28:02
that at the core of our new operating00:28:05
model we're building a network of00:28:06
hundreds of customer and product00:28:09
teams each of these cross functional00:28:12
teams operates as a small Nimble micro00:28:15
business focused on value creation and00:28:18
working in close collaboration with each00:28:21
other customer teams focus on building00:28:24
relationships with specific sets of00:28:26
customers and understanding their needs00:28:28
at each stage of the customer life cycle00:28:32
for example in crop science a customer00:28:34
team may serve a set of farmers in a00:28:36
specific geographic area together with00:28:39
dealers in that area in Pharmaceuticals00:28:42
a customer team may serve a set of00:28:44
hospitals and in consumer health a00:28:47
customer team may serve a set of small00:28:51
pharmacies customer teams collaborates00:28:54
closely with product teams to provide00:28:56
tailor solution00:28:58
Solutions product teams focus on the00:29:00
life cycle of a specific product or a00:29:03
product Suite from development to00:29:07
commercialization and these customer and00:29:09
product teams are guided and supported00:29:11
by cross functional portfolio teams who00:29:14
continually evolve the overall portfolio00:29:17
of markets and00:29:19
products collectively these networks of00:29:22
customer product teams are the primary00:29:24
way in which we serve customers they're00:29:27
becoming our entrepreneurial and dynamic00:29:30
engines of innovation growth speed and00:29:33
customer00:29:34
focus in DSO our technical functions00:29:38
such as R&D and product Supply shift to00:29:41
support and enable customer and product00:29:44
teams the technical teams also operate00:29:47
as a network of autonomous micr00:29:50
businesses focus on becoming leaner00:29:52
faster and more service00:29:54
oriented they concentrate on00:29:56
understanding the needs of the customer00:29:58
product teams providing critical00:30:00
expertise and discontinuing activities00:30:02
that are not in demand um or are00:30:05
required to ensure our license to00:30:08
operate this will help us realize00:30:10
substantial efficiencies across our00:30:13
organization and what about the enabling00:30:16
functions like Finance HR or00:30:20
procurement their primary role is to00:30:23
facilitate the flow of talent funding00:30:26
information and other res resources00:30:28
across our customer product and00:30:29
Technical00:30:31
teams they ensure we quickly and00:30:33
continuously shift resources away from00:30:36
less productive uses and towards markets00:30:40
and products with the best value00:30:42
creation00:30:43
potential they also focus on continually00:30:46
simplifying policies and processes while00:30:49
eliminating non-value creating00:30:50
bureaucratic work that has built up over00:30:53
the years and of course they will also00:30:56
work to to ensure our license to operate00:30:58
around the00:31:00
world similar to the technical functions00:31:03
the enabling functions continually00:31:04
strive to produce better faster and more00:31:08
efficient Solutions underpinning all of00:31:10
this is a shift in mindset and a00:31:13
fundamentally new approach to00:31:15
leadership we're helping people learn00:31:18
simple practices to become more aware of00:31:21
the limiting mindsets and beliefs that00:31:23
cause us to defend and protect the00:31:25
status quo00:31:27
and to shift into more enabling mindsets00:31:30
that allow us to work together to seize00:31:33
New00:31:35
Opportunities we're moving from a00:31:38
strongly hierarchical approach of00:31:40
command and control00:31:42
management to embrace leadership00:31:44
practices that really Empower our people00:31:47
and unleash their full00:31:49
potential so how are we tracking so far00:31:51
in the roll out of00:31:53
DSO our objective is to scale DSO across00:31:56
the company00:31:57
so that almost every part of Bayer has00:31:59
started working in the new operating00:32:01
model by the end of this00:32:03
year so far we've already launched more00:32:06
than 100 customer and product teams and00:32:08
we expect to reach over 1,000 by the end00:32:11
of the00:32:12
year we've also launched more than 7000:32:15
design teams who are working to rethink00:32:19
processes across the00:32:20
company such as the way we undertake00:32:23
Financial Planning and Reporting00:32:24
employee performance management internal00:32:27
Audits and other areas that don't always00:32:29
serve customer00:32:31
needs across the organization these00:32:34
terms are really reimagining how we00:32:38
operate working alongside these teams we00:32:41
have a community of dedicated DSO00:32:43
practitioners who are actively00:32:45
supporting the development of DSO in the00:32:47
divisions and enabling functions to00:32:50
co-create the best bear we can be more00:32:53
than 4,000 colleagues around the world00:32:55
have already begun the journey to00:32:57
reimagine how we operate it's been truly00:33:00
encouraging to see how the00:33:01
implementation of DSO is resonating so00:33:04
far across the organization there's a00:33:06
real movement happening across team beay00:33:10
to embrace00:33:12
DSO one thing is for sure we are moving00:33:15
fast and decisively we know our00:33:18
employees customers investors deserve00:33:20
that from00:33:22
us I've really never seen an00:33:24
organization where the conditions for00:33:26
success are as good as they are at Bayer00:33:29
a combination of a clear case for change00:33:32
where no one is defending the current00:33:33
way we do things and where there's a00:33:35
widespread deep conviction that we need00:33:38
to do something fundamentally different00:33:40
I'm absolutely convinced that in a short00:33:43
time from now B will be a very different00:33:47
organization it will be a great example00:33:50
of what's possible when a large00:33:52
established Global00:33:53
organization reimagines itself to00:33:56
benefit benit the communities and00:33:58
stakeholders it00:34:00
Serv thank you it's been a delight to be00:34:04
with you I would now like to turn it00:34:05
over to my colleagues Sebastian gu and00:34:08
Lisa Perez who will share two examples00:34:11
of team's currently living DSO in the00:34:13
Pharmaceuticals and consumer health00:34:18
[Music]00:34:25
divisions thank you Michael00:34:27
as you've heard from Bill we're00:34:28
radically redesigning the way the00:34:30
company operates building on Michael's00:34:33
description of what we're doing let me00:34:35
share a few tangible examples from our00:34:37
us Pharmaceuticals business on the00:34:40
impact we're already seeing first we're00:34:43
becoming a significantly flatter or our00:34:46
organization if you look at our industry00:34:49
it's very common to see teams averaging00:34:51
three to five colleagues per manager00:34:54
while we were already head of the00:34:55
industry with an average team size of 800:34:58
to nine colleagues to each manager we00:35:00
increased our span of control or span of00:35:02
coaching as we call it to an average of00:35:05
15 to 20 colleagues today it allowed us00:35:08
to reduce the number of managers in our00:35:11
us Pharmaceuticals business by00:35:14
40% second we've broken down the silos00:35:17
in our structure and become laser00:35:20
focused on customer needs what does that00:35:23
look like rather than having four00:35:25
Stalone franch es with responsibility00:35:28
for sales and marketing we've set up 6800:35:32
customer squats across the United States00:35:35
these largely independent cross00:35:36
functional entrepreneurial units of 1500:35:39
to 20 people are designed to provide a00:35:42
unified customer experience in the00:35:45
geography they serve they have ownership00:35:49
of their spent and can Flex resources or00:35:51
evolve team composition to address00:35:54
unique market dynamics and opportunities00:35:57
now the benefit is truly00:36:01
significant think about a certain00:36:02
geography which may have for example00:36:05
large academic centers that require a00:36:08
different approach gen geography with00:36:10
many community- based Physicians and00:36:13
Clinics another area may have unique00:36:16
exess challenges that require different00:36:20
expertise our teams are empowered to act00:36:23
with speed to address these differences00:36:26
without waiting for layers of00:36:28
approvals and I see evidence of this00:36:31
already just last week I was on customer00:36:34
visits in Pittsburgh Pennsylvania and00:36:37
heard how quickly we're making decisions00:36:40
and moving forward on00:36:41
opportunities what might have taken us 300:36:44
to six months is now being decided00:36:47
almost on this spot now in the home00:36:50
office the customer squats are supported00:36:53
by product squats responsible for00:36:55
marketing strategy that drive00:36:57
competitive00:36:59
differentiations these squats00:37:01
dynamically form to address the highest00:37:03
priority work in 90-day Cycles in fact00:37:07
just earlier this week we had our first00:37:10
Marketplace of opportunities we shifted00:37:13
resources to our most essential work for00:37:16
the next 90 days and matched colleagues00:37:19
with the right skills to this work to00:37:22
accelerate our progress and to deliver00:37:24
on our aggressive outcomes00:37:27
this is vastly different from having00:37:29
stendal or marketing teams for each00:37:31
brand teams that once develop annual00:37:35
plans and were focused exclusively on00:37:38
one product now to me it's amazing to00:37:42
see even in these initial days how this00:37:45
is unleashing the organization and00:37:47
focusing us and our teams on what really00:37:50
matters which is driving impact with00:37:54
customers lastly our new operating model00:37:57
is accompanied by a significant00:37:59
reduction in our clunky and complex00:38:02
processes as the bureaucracy busting00:38:06
that Michael and Bill spoke about00:38:09
earlier that's exactly what we're00:38:11
bringing to life uh at Bayer across the00:38:14
United States now let me give you two00:38:16
concrete examples we've eliminated the00:38:20
need for manager review of an estimated00:38:23
140,000 expense reports annually and00:38:26
stomped out the complexity in our00:38:28
approach to training these two examples00:38:31
alone enable us to reclaim nearly 50,00000:38:34
unproductive hours that can be00:38:36
redirected to the00:38:38
customer I'm sure you can appreciate why00:38:41
this is so essential as we build an00:38:43
organization that is flatter nimbler we00:38:46
need to liberate our managers so they00:38:48
can focus on the business and not the00:38:51
oversight of mundane00:38:53
tasks in closing let me leave you with00:38:56
with three key points first we've00:38:59
successfully expanded our footprint in00:39:01
the United States and we're driving to00:39:03
accelerate further as we're buil as we00:39:06
build our us business to scale second00:39:09
Dynamic shared ownership is unleashing00:39:12
the power in our organization we've made00:39:15
radical changes to break down silos00:39:17
increase agility and enable faster00:39:19
decision making and make no mistake at00:39:22
the same time we've become a flatter00:39:25
organization last but not least we're00:39:27
moving fast and are seeing early00:39:30
evidence of impact we set up the new00:39:32
model at scale at the end of last year00:39:35
and when I look at where we are today I00:39:37
see energy and excitement in our teams I00:39:40
see teams driving their business at the00:39:42
regional levels with shared objectives00:39:45
and decision making and I see the00:39:47
organization transitioning to the beat00:39:49
into the beat of 90-day Cycles with that00:39:52
let me hand it over to Lisa Perez head00:39:55
of our nutritional business business in00:39:57
us uh in our us consumer health business00:40:00
Lisa over to00:40:02
[Music]00:40:11
you thanks Sebastian hi everyone I'm00:40:14
excited to be here I've had the00:40:17
privilege of leading our nutritionals00:40:18
front runner team focused on one a day a00:40:21
key vitamin brand in the US we are00:40:24
focused on driving one a day to lead in00:40:26
the market Market which is a key growth00:40:27
driver for retailers and bear and offers00:40:30
important health benefits for00:40:32
consumers bear had been the market00:40:34
leader in multivitamins for years00:40:37
however recently we started to see it00:40:39
slip it was critical that we find new00:40:41
ways to reignite interest in the brand00:40:44
and return it to growth so we set up our00:40:47
first R front runner team to drive an00:40:49
Innovative solution using DSO principles00:40:52
our team was one of the first at Bayer00:40:54
to embark on a DSO Journey00:40:56
and operate in this totally new way we00:40:59
had a framework and guiding principles00:41:02
as well as new expectations for how to00:41:03
lead and how to flow resources including00:41:06
our people to where they can add the00:41:09
most value for our consumers but we had00:41:12
a dig in and figure out how to actually00:41:14
work in this new way all while driving00:41:16
towards an ambitious outcome in 90 days00:41:20
and the DSO principles truly unlock00:41:22
value and creativity along the way in00:41:25
service of our mission to increase00:41:27
consumer love for One A Day first I00:41:30
needed to assemble the right people a00:41:33
focused team that spanned across several00:41:35
functions stepping out of our silos to00:41:38
come together as one team working00:41:40
towards a common outcome we first00:41:43
focused on a new Brand's identity the00:41:46
overall look and feel of the brand that00:41:48
would differentiate one a day and00:41:50
address consumer pain points at00:41:52
shelf operating in our traditional way00:41:55
this would have normally taken over a00:41:57
year and our ambitious goal was to do it00:42:00
in just 90 days in the past our work00:42:04
process was very linear we'd work with00:42:06
one team to hit a key Milestone then00:42:09
move to the next step often times with00:42:11
the different set of people with lots of00:42:14
check-ins and approvals with senior00:42:15
leaders along the way working in the DSO00:42:19
model was collaborative and fast from00:42:21
day one we pulled in everyone needed00:42:23
across functions at the start and00:42:26
decisions were made in the moment00:42:28
accelerating decision-making and00:42:30
outcomes and because we were able to00:42:32
move quickly we also identified a new00:42:35
product opportunity a preconception00:42:38
vitamin for people thinking about00:42:39
becoming pregnant there is a real Gap in00:42:43
the market about 60% of women are not00:42:46
taking a prenatal vitamin before they00:42:48
get pregnant which means they're not00:42:50
getting key nutrients needed to help00:42:52
reduce the incidence of birth defects00:42:55
and that's a big deal00:42:57
we were able to accelerate the launch of00:42:59
this important innovation by more than00:43:02
one whole year launching on Amazon this00:43:05
month rather than over a year from now00:43:08
in 2025 so how did we do it we operated as00:43:12
an empowered and autonomous team and it00:43:15
boiled down to a few key areas first was00:43:18
focus and access eight of us focused on00:43:21
only one thing our mission decisions00:43:25
were owned by the team what we worked on00:43:28
rest exclusively with the team and we00:43:31
work through obstacles in the moment we00:43:33
were able to check in immediately rather00:43:35
than wait for feedback because we were00:43:37
all00:43:38
together while we all came in with our00:43:40
areas of expertise everyone contributes00:43:43
equally and gets done what needs to get00:43:45
done regardless of level or00:43:48
function the second continuous learning00:43:51
and pulling the consumer feedback into00:43:54
the process much earlier we take00:43:56
iterative steps versus the one big one00:43:59
we start with the consumer and develop00:44:02
something that's good enough for now we00:44:04
would test it with consumers get their00:44:05
feedback make edits and test again we00:44:09
were able to Pivot quickly based on00:44:11
consumer00:44:12
feedback and lastly check-ins versus00:44:15
permissions we adjusted how we work with00:44:17
senior leaders seeking their feedback00:44:20
versus seeking their approval we would00:44:22
consider their feedback But ultimately00:44:24
make decisions based on what we've00:44:26
learned from consumers increasing our00:44:29
confidence to move in a direction and00:44:31
this accelerated our decision making so00:44:35
we wrapped up our first 90 days and00:44:36
we're really excited about what we've00:44:38
accomplished through this focused work00:44:40
and having the right people in the room00:44:43
we're proud to have been able to advance00:44:45
the new brand identity and to bring an00:44:48
important new innovation to Market00:44:50
faster than ever before adding00:44:52
incremental sales and offering important00:44:55
consumer health health benefits that is00:44:58
what DSO is all about but this is just00:45:00
the beginning I'm now taking the00:45:03
learnings and applying it across my team00:45:05
bringing DSO to my entire business unit00:45:08
with self-managed teams organized around00:45:11
five key outcomes we're a few weeks into00:45:14
working in this new way and we've00:45:16
already seen the benefits we're moving00:45:18
faster we're making decisions in the00:45:21
room and we're finding new ways to grow00:45:23
the business so stay tuned for what00:45:25
what's next now over to00:45:30
[Music]00:45:37
hia thank you Lisa and hello everyone00:45:41
I'm really pleased to be here today to00:45:43
share a bit more about what dynamic00:45:45
shared ownership means for our people00:45:48
I've been with the company for 37 years00:45:51
and I've gotten to see Bayer from a00:45:53
number of different perspectives I've00:45:55
worked in different roles and also in00:45:57
different00:45:58
countries but I've never seen a movement00:46:00
of this scale touching every part of the00:46:03
organization and supported as the right00:46:06
thing to do by so many00:46:08
people the aim of DSO is to allocate00:46:11
resources quickly and to put the people00:46:14
with the right skills in the right team00:46:16
at the right time to get done what needs00:46:19
to get done all in the interest of00:46:21
creating value for our00:46:23
customers we are moving towards A system00:46:26
that puts skills at the Forefront to00:46:28
allow flexibility in team setups00:46:31
ensuring our talents can move to the00:46:33
highest priority work and the work that00:46:36
they are best suited for that means00:46:38
moving away from rigid career00:46:41
letters we are moving to a platform00:46:43
which we call Talent Marketplace which00:46:46
creates transparency of the skills of00:46:48
employees in the organization not just00:46:50
their formal education or past roles as00:46:53
well as the skills needed to support the00:46:56
various customer and product teams that00:46:58
Michael00:46:59
described rather than being defined by00:47:02
the position description or place on an00:47:04
orc chart employees can make use of all00:47:07
their skills and capabilities and00:47:09
contribute to work that matches their00:47:11
interests and the evolving business00:47:15
needs Performance Management will change00:47:17
too we'll be relying much more heavily00:47:20
on peer accountability rather than00:47:23
accountability to the boss and Bill00:47:26
likes to say you may be able to fool00:47:28
your boss but you can't really fool your00:47:31
peers together with colleagues in the00:47:34
business we have HR driven so-called00:47:36
design teams working to co-create this00:47:39
new model of Performance Management and00:47:42
rather than one rigid one-size fits-all00:47:45
system we are developing flexible00:47:47
solutions to roll out to teams across00:47:50
different functions business businesses00:47:53
and00:47:54
geographies in parallel the HR team is00:47:57
reducing complexity across all areas of00:48:00
people and talent and thus we are00:48:02
freeing up resources to focus on our00:48:05
mission critical work for example at the00:48:08
end of last year we streamlined our00:48:10
current performance development and00:48:12
training processes and thus we reduce00:48:15
the administrative load for our people00:48:17
and leaders we eliminated over 300,00000:48:21
emails employees would typically receive00:48:24
from HR00:48:26
of course fewer processes and less00:48:28
bureaucracy as well as fewer layers of00:48:31
hierarchy means a decrease in the number00:48:33
of leaders you've already heard00:48:35
Sebastian's experience with the US00:48:37
farmer00:48:39
organization it also means fundamentally00:48:41
different expectations for leadership00:48:44
rather than managing and directing teams00:48:47
leaders will focus on setting Direction00:48:49
architecting the system and engaging and00:48:52
supporting the teams doing the00:48:54
work that's why we are upskilling our00:48:57
leaders with the capabilities they'll00:48:59
need in this new open and empowered00:49:02
organization we want to support leaders00:49:05
to become Visionaries who shape a clear00:49:07
and compelling Mission we want them to00:49:10
become architects who who build systems00:49:13
that Focus excite and motivate teams to00:49:16
create value in line with the mission we00:49:19
support them becoming catalysts who00:49:21
unleash energy throughout the00:49:23
organization and facilitate a broader00:49:26
network of empowered teams and encourage00:49:29
collaboration across the different teams00:49:32
and lastly we enable them to be coaches00:49:35
who Foster an environment of constant00:49:37
learning and evolution in Rapid 90-day00:49:41
Cycles I don't know about you but I find00:49:44
this type of leadership to be far more00:49:47
fulfilling it's important to note that00:49:49
these changes are being made with and00:49:52
not despite our works councils they are00:49:55
are convinced that this is the right00:49:57
operating model and they are actively00:49:59
contributing to the successful00:50:01
implementation of this transition it's a00:50:04
radical shift a shift that requires that00:50:07
we significantly flatten the00:50:09
organization to make it more Nimble and00:50:12
it requires a reduction in heck count00:50:16
that's a hard truth but our employee00:50:18
Representatives understand this need for00:50:20
Change and they are fully00:50:23
supportive just look at the joint00:50:25
declaration we announced last month I00:50:28
really appreciate and I'm very grateful00:50:30
for our ongoing exchange and00:50:33
collaboration let me close by saying I00:50:36
firmly believe that our greatest asset00:50:39
is hugely our passionate and committed00:50:42
teams through DSO not only will we be00:50:45
able to offer our people and new talents00:50:48
joining us more fulfilling jobs and00:50:51
secure our standing as an employer of00:50:53
choice we'll also un un leash their00:50:56
potential so that they can make a bigger00:50:58
difference for our customers and our00:51:00
mission each and every00:51:03
day with that I'd like to hand it over00:51:05
to Kevin Nolan CEO of GE Appliances to00:51:09
share how they have implemented DSO like00:51:11
principles and become the market leader00:51:14
in their00:51:17
[Music]00:51:24
industry00:51:26
so 7 years ago we were sold to high air00:51:30
but we were a company in trouble we were00:51:32
a company that wasn't growing we had00:51:35
frustrated employees and we had new00:51:38
competitors coming into our market so it00:51:41
was a time where we knew we needed00:51:43
dramatic change and we needed we knew00:51:45
that what we were doing it just was not00:51:47
working it wasn't allowing us to win in00:51:49
the00:51:50
marketplace this is the company I became00:51:53
CEO of six years ago and six years ago00:51:57
we focused on a new model that you'll00:51:59
see has many similarities to00:52:02
transformation that bear is going00:52:04
through and you talk about well what00:52:06
were the results and I can sit here and00:52:09
testify that these results were00:52:11
incredible we quickly became the fastest00:52:15
growing appliance company in America00:52:17
we've had continued years every year now00:52:20
double digit growth and with that I'm00:52:23
proud to say that we are now the market00:52:26
leader in the United States when you00:52:28
look at the appliance market and you say00:52:30
well how did we do it what did what did00:52:32
we do so I'd like to take you through00:52:35
the model that we00:52:36
have we call our model randan it's a00:52:40
model that haer pioneered uh but one00:52:43
that we adapted to fit our market place00:52:45
to fit our culture and really to fit the00:52:48
way our employees wanted to work these00:52:50
are the four elements that I'll quickly00:52:52
walk us through the goal the culture the00:52:54
structure and the rewards of how we00:52:58
reinforced this00:53:01
transformation so the goal was simple00:53:03
for us we wanted to be a company of00:53:05
winners we wanted to no longer be fourth00:53:08
in the market fifth in the market we00:53:10
wanted to be the ones are out there in00:53:12
front they were innovating they were00:53:14
leading when I first launched this to00:53:17
our employees there was a lot of00:53:19
disbelief they said hey we've been here00:53:21
I've been a long-term employee I was00:53:23
here for over 30 years00:53:26
you're saying that we're going to be00:53:27
number one but we haven't grown in the00:53:29
last 20 years why should we believe this00:53:32
and all I said is because we have great00:53:34
people with our great people we're going00:53:37
to be able to grow so we had to focus00:53:40
then in on the culture what was the00:53:42
culture that was we were going to built00:53:44
around you can see on the right side of00:53:46
this is the way we were under General00:53:49
Electric you know we the corporate it00:53:52
was the boss we always looked to00:53:54
headquarters what do they want want us00:53:55
to do we had played safe much like you00:53:57
saw from Gary Hamill we didn't want to00:53:59
take risks we were watching the00:54:02
competitors we were looking at how we00:54:04
optimize product and price and what we00:54:07
wanted to offer to our consumers we were00:54:09
risk adverse but what we transformed and00:54:12
changed is the first thing we said is00:54:14
the boss here is not me as a CEO that's00:54:17
not my role the only boss we have is the00:54:20
consumer we have to build this company00:54:22
around satisfying our consumers if we do00:54:25
that good things will follow we told00:54:28
let's take risks let's play to win let's00:54:30
get out there let's get out there and be00:54:32
aggressive let's lead the competition00:54:34
stop looking at what they're doing we00:54:36
don't want to be there we want to be in00:54:37
front of them we need to provide people00:54:40
with Solutions experience that they want00:54:42
not the products that we want to sell00:54:44
them and we need to change this culture00:54:46
of bureaucracy to a culture of00:54:48
experimentation that really encourages00:54:50
our people not to be employees but to be00:54:54
entrepreneurial so as a CEO I need to00:54:56
just provide a platform for employees to00:54:58
grow to flourish and to really live00:55:01
their dreams and be excited about what00:55:03
they want to accomplish and how they00:55:04
want to serve the00:55:06
users so00:55:08
organizationally we did not have a huge00:55:10
restructuring we eliminated a few roles00:55:13
but we redefined the organization around00:55:15
small microenterprises those00:55:17
microenterprises sole goal was to serve00:55:19
the market and then to support that we00:55:22
had our functions our distribution our00:55:25
sales our headquarters CEO all the00:55:28
leadership our role is to support the00:55:31
microenterprises we're not here to tell00:55:33
them what to do how to do things we're00:55:35
here to find us to give them the support00:55:38
so that they can go out there and00:55:39
satisfy the users satisfy the customers00:55:43
once we did this it was incredible the00:55:46
transformation that took place employees00:55:48
loved it employees embraced it and00:55:50
quickly first quarter we did this we00:55:53
could feel the transformation starting00:55:54
stting the company the results in the00:55:56
financial starting to flow00:55:58
through but to reinforce this we needed00:56:01
rewards we need to let the the the00:56:04
employees know that you need to be00:56:07
rewarded for the value that you create00:56:09
so the fundamental of our model is what00:56:11
we say is paid by users a corporation00:56:14
shouldn't pay the employees the users00:56:16
fundamentally pay the employees they00:56:18
understand and should reward for the00:56:20
value that we create so the compensation00:56:22
is now tied to the microenterprise00:56:25
results we brought incentive comp00:56:28
compensation to every employee every00:56:30
employee we have and one of the main00:56:33
reasons we want to do that is we have00:56:34
just clear transparency if we're00:56:37
struggling in the market we need people00:56:39
to know we need people to know quickly00:56:41
so that they can react they can adjust00:56:43
because they're the ones that are making00:56:44
the decision so they need just the same00:56:47
dashboard as the CEO they need to see00:56:50
the information we needed the00:56:51
transparency to drive to drive this00:56:54
culture we were trying trying to00:56:56
enforce but to me the Real Testament00:56:59
that this works is not the financials00:57:01
and they've been incredible we have00:57:03
doubled the size of this business in the00:57:05
last five years to become number one but00:57:08
the thing that I'm most proud of as a00:57:09
CEO is this is a better place to work00:57:12
we've gotten more accolades more studies00:57:16
coming from academics to see these00:57:18
results but the employees here are happy00:57:20
they feel it's a place where they can00:57:22
flourish they can live their dreams00:57:24
they're not told what to do every day00:57:26
unleashing the potential of your00:57:28
employees is the best thing any00:57:30
organization can do you have to have a00:57:33
fundamental belief in the potential of00:57:35
humans because our potential is00:57:37
Limitless the only thing that limits our00:57:39
potential is bureaucracy and top- down00:57:42
management and not letting us really00:57:44
focus on what we're all here to do00:57:46
satisfy the customer satisfy the users00:57:49
so it's a great journey that we're going00:57:51
on we're still feel that we're in this00:57:53
transformation we can do more more we're00:57:55
out to double this business again in 500:57:57
years and we've got an organization00:57:59
that's energized it's activated and the00:58:03
customers they're rewarding us for all00:58:05
this activity so I'm just so proud and00:58:08
pleased to see what Bayer's doing we're00:58:10
going to learn a lot from this the scale00:58:12
and the scope of what bill and team are00:58:14
doing right now is one that the whole00:58:16
world is going to watch and it's one00:58:18
where I know from the success we've had00:58:20
it's going to give results that no one00:58:22
could imagine there would come forward00:58:24
very quickly for bear so it's great to00:58:26
be here and thanks for the the time and00:58:28
letting me tell this story of our00:58:30
employees yeah big thanks everyone a00:58:33
special thanks to Kevin for joining us00:58:35
and sharing your perspective from GE00:58:38
appliance and thanks to all of you for00:58:40
your time and attention I hope this00:58:42
session has been helpful in in00:58:44
illustrating you know the magnitude of00:58:46
the change that we're pursuing at Bayer00:58:49
uh you know it's it's been really00:58:50
rejuvenating to see this come to life00:58:52
over the past seven months and now as we00:58:55
pick up speed in rolling out Dynamic00:58:57
shared ownership across the company I'm00:58:59
really confident there are great things00:59:01
ahead not only for team Bayer but most00:59:04
importantly for the people we serve so00:59:06
uh thanks again and have a great00:59:18
weekendDescription:
Business leaders from both inside and outside Bayer offer insights into innovative methods of organizing the modern workplace, aiming for better performance and reduced bureaucracy. This comes as Bayer implements an operating model called Dynamic Shared Ownership, a radical reimagination of every aspect of the company, with the objective of greater productivity, faster innovation, and superior results. 00:00 Introduction - Bill Anderson 02:40 The Fundamentals of Humanocracy - Gary Hamel 19:26 DSO vision of Bayer - Bill Anderson 26:44 How DSO is rolling out at Bayer – Michael Lurie 34:20 U.S. Pharma transformation – Sebastian Guth 40:02 Consumer Health U.S. Nutritionals – Lisa Perez 45:30 Enabling DSO through our people – Heike Prinz 51:16 Testimony from a company implementing DSO-like principles and outcomes – Kevin Nolan 58:32 Closing remarks – Bill Anderson
Preparing download options
* — If the video is playing in a new tab, go to it, then right-click on the video and select "Save video as..."
** — Link intended for online playback in specialized players
Questions about downloading video
How can I download "Bayer | Dynamic Shared Ownership (DSO) Webinar" video?
http://unidownloader.com/ website is the best way to download a video or a separate audio track if you want to do without installing programs and extensions.
The UDL Helper extension is a convenient button that is seamlessly integrated into YouTube, Instagram and OK.ru sites for fast content download.
UDL Client program (for Windows) is the most powerful solution that supports more than 900 websites, social networks and video hosting sites, as well as any video quality that is available in the source.
UDL Lite is a really convenient way to access a website from your mobile device. With its help, you can easily download videos directly to your smartphone.
Which format of "Bayer | Dynamic Shared Ownership (DSO) Webinar" video should I choose?
The best quality formats are FullHD (1080p), 2K (1440p), 4K (2160p) and 8K (4320p). The higher the resolution of your screen, the higher the video quality should be. However, there are other factors to consider: download speed, amount of free space, and device performance during playback.
Why does my computer freeze when loading a "Bayer | Dynamic Shared Ownership (DSO) Webinar" video?
The browser/computer should not freeze completely! If this happens, please report it with a link to the video. Sometimes videos cannot be downloaded directly in a suitable format, so we have added the ability to convert the file to the desired format. In some cases, this process may actively use computer resources.
How can I download "Bayer | Dynamic Shared Ownership (DSO) Webinar" video to my phone?
You can download a video to your smartphone using the website or the PWA application UDL Lite. It is also possible to send a download link via QR code using the UDL Helper extension.
How can I download an audio track (music) to MP3 "Bayer | Dynamic Shared Ownership (DSO) Webinar"?
The most convenient way is to use the UDL Client program, which supports converting video to MP3 format. In some cases, MP3 can also be downloaded through the UDL Helper extension.
How can I save a frame from a video "Bayer | Dynamic Shared Ownership (DSO) Webinar"?
This feature is available in the UDL Helper extension. Make sure that "Show the video snapshot button" is checked in the settings. A camera icon should appear in the lower right corner of the player to the left of the "Settings" icon. When you click on it, the current frame from the video will be saved to your computer in JPEG format.
What's the price of all this stuff?
It costs nothing. Our services are absolutely free for all users. There are no PRO subscriptions, no restrictions on the number or maximum length of downloaded videos.