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Dynamic Shared Ownership (DSO) is an advanced organizational model that aims to break down traditional hierarchies in companies, promoting a more inclusive, democratic form of participation and ownership. Described in detail in Gary Hamel and Michele Zanini's book Humanocracy, this concept proposes a radical departure from rigid, top-down corporate structures to create an environment where every employee is treated not only as an executor but as a co-creator and co-owner.

In a DSO model, decision-making powers are delegated to employees, allowing them to act autonomously within their respective areas or teams. This form of participation goes beyond traditional employee ownership or stock option programs by enabling genuine involvement in strategic decisions and direct participation in the company’s success. The idea behind DSO is that by distributing ownership and influence across a broader base of stakeholders, both employee motivation and satisfaction increase, while the company’s agility and capacity for innovation are also strengthened. Employees who act as co-owners are more inclined to contribute actively to the success of the entire organization, committed to its overall well-being.

Bayer is undertaking a transformation through Dynamic Shared Ownership (DSO) as a strategic response to several significant challenges in recent years. Following the Monsanto acquisition in 2016, Bayer faced complex legal battles, most notably regarding glyphosate, which has led to billions in litigation costs. Coupled with rising debt from this acquisition, Bayer now operates in a high-interest environment, further increasing the financial strain. To navigate these pressures, Bayer aims to boost agility, reduce bureaucracy, and increase employee engagement through DSO, allowing for faster, customer-focused decision-making. This shift seeks to build a resilient, adaptive company structure, enabling Bayer to respond efficiently to market demands while working towards a sustainable and financially stable future.

Core Principles of Dynamic Shared Ownership at Bayer - Bayer is currently implementing a novel organizational approach known as Dynamic Shared Ownership (DSO), signaling a significant shift in how the company operates without altering its core values. This transformation aims to create a more agile, responsive, and empowered organization by redistributing decision-making authority from the upper echelons of management to the employees closest to the work and customers.

Decentralized Decision-Making - A key aspect of Bayer’s DSO model is decentralizing decision-making to improve response times to market changes. This means that 95% of decisions that were previously made by management are now being handed over to employees at all levels. Bayer is restructuring its leadership and organizational design to emphasize product and customer teams that work in 90-day sprints. This iterative, short-term planning cycle allows teams to set specific objectives for each quarter, reflect on progress, and adjust quickly.

Less Bureaucracy, Fewer Hierarchies - To support this decentralization, Bayer is actively reducing hierarchical layers, which currently separate decision-makers from direct customer interactions. DSO also involves a reduction in management positions, refocusing remaining leaders on facilitating rather than controlling teams. Managers are encouraged to help their teams align closely with customer needs by providing support and removing obstacles rather than micromanaging processes.

Enhanced Customer-Centricity - Under DSO, Bayer is structuring around product and customer teams to ensure that decision-making remains close to customers. This proximity helps Bayer respond to customer needs faster and more effectively while fostering innovation. The streamlined organizational structure aims to reduce internal complexity, enabling faster decision-making not only in customer-facing areas but also across production, R&D, and support functions.

Increased Flexibility through Shorter-Term Planning - Moving away from extensive, long-term plans, Bayer is adopting a 90-day planning cycle as part of DSO. This shift enables teams to react swiftly to changes by setting short-term goals, focusing on the most critical tasks, and adjusting strategies based on regular feedback. By eliminating the need for time-intensive multi-year plans, Bayer hopes to create a more flexible, results-driven environment.

Cultural Shift Toward Shared Responsibility - Beyond structural changes, Bayer’s DSO model represents a cultural transformation where every employee is seen as an integral part of the company’s success. DSO encourages employees to adopt a “creative mindset” and take ownership of their work as if they were co-owners. The shift emphasizes open feedback, constructive questioning of established processes, and a shared focus on Bayer’s mission—Health for all, Hunger for none—as the ultimate guiding principle.

As Bayer embarks on this ambitious transformation, only time will reveal how effectively Dynamic Shared Ownership can address the company’s challenges and drive meaningful change. The coming quarterly reports will tell the story, reflecting whether this new model brings the agility and resilience Bayer aims for. Here’s hoping for the best, and wishing success to everyone involved in making this vision a reality.

https://www.bayer.com/de/de/dynamic-shared-ownership

https://www.humanocracy.com/