Bayer CEO Bill Anderson is tossing out the corporate management playbook in favor of a looser structure with fewer rules — and fewer bosses, The Wall Street Journal reported March 22.
Mr. Anderson has developed a unique turnaround strategy for Bayer, whose stock price is down 50% from the year prior.
Under the plan, Mr. Anderson aims to cut costs by 2 billion euros — or $2.17 billion — and lay off an undisclosed number of managers. Over the next few years, the company will transition to operating with 5,000 to 6,000 self-directed teams, according to the report. The teams will consist of employees from various departments who will identify and collaborate on projects for 90-day cycles. After each cycle, teams will reconfigure and shift focus to new projects.
"We don't have to be that good to beat the current system," he told the Journal, citing the inefficiencies of modern management structures.
Mr. Anderson said he believes large companies will study Bayer's strategy and implement their own versions in the future.
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