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All of these issues were part of the equation when
Jürgen Dormann
became Chairman of the Board of Hoechst in 1994 and began transforming the
company into what is now known as Aventis SA.
 Although Hoechst AG was the biggest producer of chemicals worldwide, narrow
profit margins kept its market capitalization low. In an increasingly global
market and with increased pressure from investors, Dormann could see how
vulnerable the conglomerate was to both dominant competitors in the United
States and more agile, small companies that could emerge anywhere.
Dormann had an overall, though somehow misty, vision of how to transform
Hoechst. But he is careful to point out that, unlike religious, artistic, or
even political or scientific visions, visions in the business world still
have to live up to bottom-line expectations. Specifically, the vision to
transform Hoechst was to create “a network of innovative and
customer-oriented companies which are leading suppliers in the fields of
chemicals, pharma and agro and achieve an above-average return on capital
employed,” Dormann says.
However, there is more to realizing a vision than just formulating and
communicating it. “The secret of successful change management is to always
find the right balance, to move step-by-step, realizing how far you can
challenge your people and can initiate change without overtaxing the
organization,” he adds. “This vision must be clear and consistent, and all
the single steps you take and decisions you make must be in line with this
vision.”
Dormann adds that managing change also means managing the communication of
your vision. This requires a sense of timing and of how fast the
organization is able to adapt—only disclosing at any point in time what the
organization is able to understand and to realize.
In organizational learning terms, the necessary changes at Hoechst had to be
envisioned and implemented by people from inside the company, many of whom
were drawn from the periphery and outside Germany. Dormann and his
colleagues created a sense of urgency to get the organization to recognize
the need for learning. The company also needed to engage in “unlearning,”
which included divestitures and bringing in non- Germans to disrupt some of
the traditions that had been built up as a German company.
Above all, Hoechst needed cultural change. It was too hierarchical and
centrally planned. Dormann’s “Transition ’94” vision called for reducing
bureaucracy, promoting initiative, flexibility, and trust with
market-oriented processes and structures. It focused on open communication
and social responsibility. And it provided a basis for consistent planning,
decisions and assessment. This wasn’t easy, he admits.
“Tens of thousands had to
change their attitudes, professional lives and sometimes even their personal
lives,” he says. |
