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DEUTZ streamlines organisational structures

Thursday, July 2nd, 2009

DEUTZ AG is reconfiguring its organisational structures to deal with the effects of the global recession. Having launched its comprehensive MOVE action programme last year to secure its future and profitability, it now plans to take further steps to realign its structures.
After the Company’s Board of Management was reduced from four to three members in March of this year, the organisational level immediately below the Board of Mangement is now being significantly streamlined. In future 17 executives at this level will report directly to the Board of Management instead of the 25 who currently do so.
The key aspects of this structural realignment are that the various operational functions at the Cologne and Ulm sites will be merged to form a single function at each plant that has full responsibility for quality, delivery reliability and costs; the three current sales regions will be pooled with the service functions and the back-office sales management function to establish one unit with global responsibility; and the marketing & public relations, corporate development, quality management and product management units will be amalgamated to create the new corporate management function. Investor relations will be integrated into the finance function.
As Dr Margarete Haase, the Management Board member responsible for finance and human resources at DEUTZ AG, put it: “This organisational realignment will enable us not only to reduce the number of executives who report directly to the Management Board but also to put in place more efficient structures based on swifter decision-making processes and a flatter hierarchy. This will make us quicker and more effective.”
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