When Bayer dynamites bureaucracy: the bet on Dynamic Shared Ownership

In 2023, Bayer faced a major crisis: debt, lawsuits, expiring patents. Instead of tightening control, CEO Bill Anderson chose an unexpected path — Dynamic Shared Ownership. A radical transformation aimed at dismantling bureaucracy and unleashing collective intelligence. And the early results are already surprising.

What cultural transformation is underway at Bayer?

The Dynamic Shared Ownership (DSO) model launched by CEO Bill Anderson marks one of the most ambitious cultural transformations in recent corporate history. Here are the key shifts and lessons emerging from this experiment, as reported by leading sources:

1. Flattened hierarchy and expanded autonomy

  • Bayer has drastically reduced its management layers, going from roughly 12 levels to 5 or 6. Thousands of middle managers have been removed or reassigned into self-organized teams.
  • Decision-making power is radically decentralized: 95% of decisions are now expected to be made by the teams actually doing the work — not by distant managers.

This marks a cultural shift from control to trust, and from bureaucratic supervision to ownership at every level.

2. New mindsets, behaviors, and leadership roles

Bayer’s goal is to transform how people think and act:

  • From hierarchy to partnership
  • From control to support
  • From fixed roles to fluid teams that adapt around a shared direction

Leaders are being redefined — less as commanders, more as facilitators, coaches, and catalysts. Their job is to remove obstacles, enable others, and align teams around shared outcomes, not to issue orders.

3. Cultural tools and adoption rituals

The DSO rollout is supported by “catalyst” and “coach” roles deployed throughout the organization to help teams integrate these new practices. Bayer has introduced:

  • Short work cycles (90-day, results-oriented iterations)
  • Fast decision loops and continuous feedback
  • Retrospectives and iterative learning to replace heavy annual planning cycles

These rituals embed agility, learning, and accountability into the company’s daily rhythm.

4. Aligning structure, value creation, and purpose

Resources — funding, talent, and time — are no longer tied to fixed budgets or rigid silos. They now flow toward projects that create the most value or impact.

The company’s purpose, “Health for all, Hunger for none,” acts as a collective compass, connecting daily work to a shared mission and meaning.

5. The remaining challenges: mindsets, HR, and resistance

Case studies show a divided organization: roughly

  • one-third of employees are highly enthusiastic,
  • one-third are uncertain or hesitant,
  • and one-third remain in a wait-and-see mode.

HR systems — performance indicators, compensation, career paths — are being reworked to align with DSO, but these mechanisms are deeply rooted in the old culture and remain hard to shift.

6. Key lessons for cultural transformation

From Bayer’s experience, several insights emerge for any organization seeking large-scale cultural change:

  • Culture is not structure. It lives in behaviors, routines, rituals, and decision-making patterns.
  • Purpose must be real and embodied. It gives alignment, meaning, and cultural cohesion.
  • Leadership posture must evolve. Support, coaching, and facilitation replace command and control.
  • Learning must be built into work. Frequent reflection, experimentation, and the right to err are essential.
  • HR systems must follow culture. Evaluation, promotion, and pay structures must reinforce the desired behaviors.
References:
  • 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)