In September 2017, DuPont and Dow Chemical merged under the name DowDuPont. Shortly afterwards, the newly formed company announced that it would split specific strategic business units into three independent companies. These were DuPont (Specialty Chemicals), Dow (Commodities) and Corteva. Corteva combines the crop protection and seed products of both original companies into one portfolio.
Lead for integration in the DACH region
The interim manager was commissioned to drive forward the integration of Corteva in the DACH region as Integration Lead from March 2018 to May 2019. This involved expanding the Munich site and transferring some of the staff from the Neu-Isenburg and Buxtehude sites. The latter locations were to be closed. Large parts of the jobs were to be cut. The companies were not to be merged. There were also no plans to standardize the ERP systems. The date for the demerger was set and had already been communicated to the investors.
Project plan with milestones for integrating the business units developed
A "playbook" for the demerger process was available at the time of the assignment. However, there was no clear project plan regulating the combination of the business units into a new Corteva organization. Both Dow and DuPont were highly functional and centralized companies. The functional managers had no overarching responsibility, especially not in the other original company.
The interim manager's first task was to plan a timeline for the project. He defined the milestones in consultation with the management. He also developed a project structure with workstreams and a steering committee.
Personnel concept: transition plans and shadow organization
When reviewing the personnel concept, the interim manager discovered that key parts of the central infrastructure organization had not been mapped. It was therefore impossible to transfer important tasks without first planning the corresponding positions.
Negotiations on redundancy plans and reconciliation of interests had not yet begun. As a result, the conditions for transferring employees to the new location were unclear for a long time. This circumstance and the usual lead times for recruitment meant that not all vacant positions at the new location could be filled in time for the spin-off and the start of operations. The interim manager therefore worked with management and Human Resources to develop transition plans, shadow organizations and special arrangements to retain qualified employees despite the uncertainty about their prospects. This was only partially successful. The loss of staff also meant a loss of expertise for Corteva.
Space concepts developed and new office location found
The office space at the specified location in Munich was not sufficient to accommodate the total number of employees. The interim manager therefore drew up a preliminary space concept and agreed it with management and employee representatives. Together with the specialist department, he also identified a new office location.
Labour law issues clarified and HR harmonization driven forward
The merging of the companies at one location, process integration and cross-company assignments of employees to specialist managers led to labour law issues. Together with management, external lawyers, HR and employee representatives, the interim manager developed and implemented corresponding concepts for the areas of joint operations and entitlement to representation. He also initiated a project for "HR harmonization", which had been overlooked in the preparations for the merger. The interim manager searched for and found an interim specialist for the project.
Locations closed on schedule and staff transferred
The interim manager initiated the following steps in the integration process:
- New processes for the back office functions to ensure the transfer of tasks from the original organization.
- Regular meetings of the project team and steering committee to discuss progress, potential obstacles and risks and to set the course
- Multiple structured organizational proposals and decision papers for approval.
As a result, the project objectives were achieved. The locations were closed on schedule and the transfer-ready personnel were transferred.
