When Bayer dynamites bureaucracy: the bet on Dynamic Shared Ownership

In 2023, Bayer — a 150-year-old pharmaceutical and life sciences giant — faces a major crisis: colossal debts, regulatory challenges, expired patents. The classic reflex? Add more control, restructure, tighten oversight.
Instead, under CEO Bill Anderson, Bayer launched Dynamic Shared Ownership (DSO) — a radical transformation of its culture and operating model. The goal: abolish bureaucracy and reinvent the organization around autonomous, self-managed, purpose-driven teams.

What cultural transformation is underway at Bayer

Here are key cultural changes and learnings drawn from Bayer’s DSO, as reported by credible sources:

Flattened hierarchy & autonomy expansion

Bayer has dramatically reduced its layers of management. Internal sources note it went from approximately 12 layers to 5-6 management tiers. Thousands of middle managers were replaced or reallocated into self-managed teams.

Decision-making power is being pushed down: 95% of decisions are intended to be made by the teams doing the actual work, not by remote managers.

New mindsets, behaviors, and leadership roles

Bayer is working to shift mindsets: from hierarchy to partnership; from controlling to enabling; from static roles to fluid teams that adapt with purpose.

Leaders are being redefined: less directive, more facilitators, coaches, or catalysts. Their role becomes about removing obstacles, enabling others, and aligning people around shared outcomes rather than about commanding.

Cultural tools & rituals for adoption

Scaling DSO has included setting up “catalyst” or “coach” roles globally, to help teams internalize new ways of working.

Use of frequent cycles (90-day outcome cycles), rapid decision making, iterative learning, retrospectives, shorter feedback loops instead of lengthy annual planning. These practices embed agility and continuous learning.

Aligning structure, value creation, and purpose

Resources (funding, talent) are no longer tightly bound to fixed budgets and silos. Instead, they flow to projects that show more value or impact.

Bayer has emphasized its purpose: “Health for all, Hunger for none”, linking everyday work to that mission. This shared purpose serves as a ‘north star’ for alignment.

Challenges remain: mindset, HR alignment, resistance

According to case studies, about one-third of employees are highly enthusiastic, one‐third cautious or unsure, and one-third are in “wait and see” mode.

HR systems (performance metrics, compensation, career paths) are being revised to match the new DSO model. These are deeply embedded in the old culture and difficult to shift.

Lessons for cultural transformation

From Bayer’s journey, several lessons emerge for any company seeking transformation at scale:

  • Culture is not just structure or org chart: behaviors, rituals, decision protocols, and everyday routines matter.
  • Purpose must be real and visible: it aligns, gives meaning, and becomes a cultural glue.
  • Leadership must change: enabling, coaching, and facilitating rather than commanding.
  • Learning cycles must be built in: frequent reflection, experimentation, error tolerance.
  • HR policies must follow culture: HR, promotions, compensation need to be coherent with the desired culture.
To go further :
  • Harvard Business School – Radical Transformation at Bayer: Dynamic Shared Ownership (DSO) (2024)
  • The Wall Street Journal – One CEO’s Radical Fix for Corporate Troubles: Purge the Bosses (2024)