The transformation of Hoechst into Aventis - published: 06/03/2007

Extract

[...] Plan Hoechst's transformation The main steps of Hoechst development A need for change Structure and organisation HRM and change regarding this transformation Implementing strategy Choosing the right men Communicating Legal and philosophical obstacles Critical analysis Debating issues From evolution to revolution “Rather than making the business better at what it did, Dormann's changes transformed business itself” The main stages of Hoechst development 1863-1951: The first days of Hoechst 1951-1980: Growth through acquisitions, managing risk through diversification 1951-1980: Hoechst identifies the need for change Key events in Hoechst history 1/3 The first days of Hoechst 1863: the company is one of the first to focus on international development (chemistry) Moscow in 1878 (production plant) and in 1883 (Manchester) Diversifies into pharmaceuticals (1883), bulk chemicals (1897), agricultural chemicals (1907) and in polymers (1913), high purity silicon (1920) 1880: joint stock company 1888: Frankfurt stock exchange 1916: external context = large groupings of chemical firms in Germany. [...]

[...] Did you take into account the interest of all stakeholders or did you decide to prioritise value creation for the shareholders of the company? How can you make an organization permeable to change? What were your contact with RH directors when making strategic decisions for the firm? Are the decisions made sustainable in the future: prospects Departure of Dormann: has the organization put too much power in the hands of Dormann in the past? Challenge: find someone who will be able to replace Dormann, legitimate and credible. [...]

[...] Top management at Aventis is very different from Hoechst management Reduce debt (downsizing) Debating issues few points we wish to further discuss with Main areas of debate to achieve permanent change without loosing the corporate identity of the company?” Personal management versus HRM: should there be an HRM department? How can managers take into account the two-ways flows of information and influence? Context influences organizations but organization influence context too. What are the key elements the firm should retain in order to conserve its specificities while at the same time be innovative and ahead of other firms? [...]