Changing the company culture at Ciba-Geigy

Abstract

Ciba-Geigy, Switzerland's largest chemical and pharmaceutical group, is halfway through a programme of radical culture change known as 'Vision 2000'. This is partly geared to the altered values of society, including the environmental revolution and attitudes towards the chemical industry. Economic pressures and the need to revitalize corporate attitudes also played a key role, as explained here by president and chief operating officer Heini Lippuner. The principal change mechanism was to regroup the divisions around three 'pillar' businesses (providing the bulk of the profits) and four 'growth' businesses (earmarked for investment as future pillars), and to encourage more initiative under Robert Waterman's concept of 'Directed Autonomy'. This strategy has been 'cascaded' through the global organization by travelling seminars; one of half-a-dozen 'horizontal strategies' covering all 14 business sectors. The group expects its cultural change programme to bear fruit in 1994: in the meantime, it has lowered the age profile of the company by retiring everyone over 60 (Swiss retirement is at 65), starting at the top with two of the executive committee. © 1993.