Bayer | Dynamic Shared Ownership (DSO) Webinar

Summary

Bayer's new operating model, Dynamic Shared Ownership (DSO), aims to fundamentally redesign the company by decentralizing decision-making, empowering teams, and focusing on customer needs. Experts like Gary Hamill and leaders from GE Appliances discuss the benefits of this approach, which has already shown positive results in innovation, performance, and employee engagement at Bayer.

Takeaways

• 🌟 Dynamic Shared Ownership (DSO) is a new operating model introduced by Bayer, aimed at fundamentally redesigning the company's structure and operations for better productivity and innovation.
• 📚 Gary Hamill, author of 'Humanocracy', discusses the need for organizations to be more adaptable and capable, moving beyond traditional bureaucratic models that have served their purpose and are now limiting progress.
• 🛠️ The script emphasizes the importance of organizations being daring, resilient, creative, and passionate, traits that are often stifled by excessive bureaucracy and a lack of employee engagement.
• 🔑 Bayer's implementation of DSO involves a shift from a hierarchical structure to a network of customer and product teams that operate like small, entrepreneurial units, making most of the decisions and being responsible for outcomes.
• 💡 The transformation at Bayer is about moving from a focus on management to a focus on mission, from alignment to action, and empowering employees to take ownership of their work and the company's objectives.
• 📈 Early results from Bayer's DSO implementation show significant benefits, such as faster innovation, better performance, and more meaningful jobs, with reduced costs and increased value for customers.
• 🌐 The script highlights examples from other companies like GE Appliances that have successfully adopted similar principles, becoming market leaders and achieving substantial growth by empowering their teams.
• 🔄 There is a significant reduction in the number of managers and layers of bureaucracy, with a focus on increasing the span of control and flattening the organizational structure to increase agility and speed of decision-making.
• 🤝 The new model requires a cultural shift, with leaders taking on new roles as visionaries, architects, catalysts, and coaches, fostering an environment of continuous learning and evolution.
• 🔍 The script underscores the importance of performance management changes, with a move towards peer accountability and the development of flexible solutions that support the new way of working.
• 🌱 The transformation is about unleashing human potential within organizations, creating a workplace where employees are engaged, empowered, and able to contribute to their full potential for the benefit of the company and its customers.

Q & A

What is the term 'Dynamic Shared Ownership' (DSO) and why was it introduced at Bayer?

Dynamic Shared Ownership (DSO) is a new operating model introduced at Bayer to fundamentally redesign the company's structure and operations. It aims to move from a traditional hierarchical structure to one that is more customer-focused, agile, and empowers teams to make decisions, thereby fostering innovation and productivity.

Who is Gary Hamill and what is his connection to the DSO concept?

Gary Hamill is a colleague and leading thinker in the field of organizational transformation. He authored the book 'Humanocracy' and is considered a pioneer in rethinking work and the way companies operate in the 21st century. His ideas have influenced the development of the DSO model at Bayer.

What is the book 'Humanocracy' about and how does it relate to Bayer's DSO?

'Humanocracy' by Gary Hamill discusses the need for organizations to be more adaptable, innovative, and human-centric. It shares principles that align with Bayer's DSO, such as reducing bureaucracy, empowering employees, and creating an environment that fosters entrepreneurship and agility.

How has GE Appliances incorporated similar ideas to DSO in their company?

GE Appliances, under the leadership of Kevin Nolan, has transformed its operations by adopting principles similar to DSO. They have created a flatter structure with small, entrepreneurial units, focused on customer needs, which has led to rapid growth and market leadership in the appliance industry.

What are the seven propositions Gary Hamill discusses in the script, and how do they relate to DSO?

Gary Hamill's seven propositions outline the need for organizations to be more capable, daring, resilient, creative, and passionate. They address the problems with current bureaucratic systems and propose a shift towards a more human-centric model, which is the core of Bayer's DSO implementation.

What is the significance of the video message from Gary Hamill in the session?

The video message from Gary Hamill serves as a primer to the concept of new operating models like DSO. It provides context and a deeper understanding of the challenges and opportunities that face large-scale institutions like Bayer, emphasizing the importance of rethinking traditional management practices.

What is the 'Talent Marketplace' and how does it fit into Bayer's DSO model?

The 'Talent Marketplace' is a platform within Bayer's DSO model that creates transparency of employees' skills and matches them with the highest priority work based on their capabilities and interests. It moves away from rigid career paths and allows for flexibility in team setups, optimizing resource allocation and empowering employees.

How does the DSO model impact the performance management at Bayer?

The DSO model shifts performance management towards peer accountability rather than top-down supervision. It reduces reliance on traditional hierarchical approval processes and encourages teams to make decisions based on consumer feedback and market needs, fostering a more agile and responsive organization.

What changes in leadership roles and expectations are part of Bayer's DSO transformation?

With DSO, leadership roles at Bayer transition from command and control to enablement and support. Leaders are expected to set direction, build systems, unleash energy, and act as coaches, fostering an environment of constant learning and evolution. The focus is on empowering teams and facilitating collaboration across the organization.

How does the DSO model affect the structure and decision-making within Bayer's technical functions like R&D and product supply?

In the DSO model, Bayer's technical functions shift to support and enable customer and product teams. They operate as a network of autonomous micro-businesses, focusing on becoming leaner, faster, and more service-oriented. This change streamlines processes, reduces bureaucracy, and ensures that technical expertise is provided where it is most needed.

What are some of the early results and impacts of implementing DSO that Bayer has observed?

Early results from implementing DSO at Bayer include faster innovation, better performance, and more meaningful jobs at significantly less cost. Specific examples include the consumer health team in Southeast Asia, which advanced launch dates for new products and reduced internal processes by 60%, unlocking millions of euros in value.