Continuation of the transformation process
In a challenging macroeconomic environment, thyssenkrupp is driving forward the transformation of the company resolved in May 2019 and specified in more detail in May 2020. The aim is to realign thyssenkrupp as a sustainable and high-performing group of companies with a lean management model and clearly structured portfolio. The framework for this comprises our brand and our values.
The transformation of thyssenkrupp follows a clear concept. We are gradually adjusting our portfolio in line with the value and development potential of the individual businesses and have already made promising progress. Furthermore, we have introduced measures to further enhance the profitability of the businesses as an efficient new basis for renewed profitable growth of the entire group.
On the one hand, we want to make a significant contribution to reducing CO2 and align our activities systematically to sustainability criteria. On the other hand, through our products and technologies we want to be a relevant partner – and more: an enabler – for the green transformation of our customers. We see enormous potential for further growth both now and, in particular, in the medium- and long-term, for example, in the areas of hydrogen, green chemicals, renewable energy and e-mobility.
Our strength is that we offer key competencies for decisive aspects of the green transformation. This applies, in particular, to hydrogen and various perspectives of the value chain: in our solutions for green steel production we will be using large quantities of hydrogen in the future in order to make a substantial contribution to reducing climate-relevant emissions (demand). Through our electrolysis business thyssenkrupp nucera we are one of the few suppliers worldwide that already has technologies for the production of hydrogen on a giga-scale (supply). Our plant engineers at Uhde are experts, among other things, in the construction of production plants for ammonia, the transport medium for importing green hydrogen. Moreover, our innovative bearings are a key element for the rapid expansion of wind energy (infrastructure).
Our portfolio also includes further promising products and solutions that are vital for the success of the green transformation. Examples are components for automotive engineering that are independent of the type of powertrain, intelligent optimized supply chains at Materials Services and plants for the production of CO2- reduced cement at Polysius.
In our transformation process, we are still guided by our three action areas performance, portfolio and people: In this way, we create the necessary framework conditions for the individual businesses to develop in the best possible way and - both economically and in terms of climate protection - to take sustainable as well as leading market positions.
Performance: How we work
We want to be among the best in our industry.
The overarching goal is to boost the performance and competitiveness of all our businesses. All businesses are expected to strive to be among the best in their respective sectors. Each unit has been set an individual profitability target, based on benchmark analysis. In addition, all businesses must earn at least their cost of capital. Plans on how to achieve these targets are worked out with all businesses and specific and realistic measures are defined. These measures are reviewed, adjusted where necessary and monitored in regular dialogue between the holding company and relevant decentralized unit. The businesses’ management teams bear full responsibility for the results.
As part of the performance action area, we are also focusing more strongly on performance culture throughout the group and driving forward the continuous enhancement of our competitiveness. This also involves continuously reviewing and revising our key performance indicators and the logic behind them as well as the associated compensation systems. The overarching goal of the transformation process is to boost the performance and competitiveness of all our businesses. They are expected to strive to be among the best respective sectors. Each unit has been set an individual profitability target, based on a benchmark analysis. These are translated into goals and specific measures with the aid of the identified value drivers. These value drivers are reviewed, adjusted where necessary and monitored in regular dialog between the holding company and the relevant decentralized unit. The businesses’ management teams bear full responsibility for the results.
As part of the performance action area, we are also focusing more strongly on performance culture throughout the group and taking systematic steps to continuously enhance our competitiveness. This also includes the ongoing development and stringent alignment of our compensation systems to the success factors of the individual businesses.
Portfolio: How we are structured
We focus on sustainable development.
thyssenkrupp has a clear goal: we want every individual business to develop optimally. Therefore, we continuously examine and evaluate the development potential of the individual businesses to find the constellation that offers the best future prospects for these units from the perspective of all stakeholders. The principal criteria are their market attractiveness, their technology and cost position and the future potential to create value. In this, achieving or maintaining a sustainable competitive position in individual businesses – in both economic terms and in relation to climate protection – is more important than specific ownership structures.
Against this background, thyssenkrupp’s portfolio has been divided as follows:
People: Who we are
We want to continuously improve.
The transformation of the company does not simply require structural changes and more decentralized organizational structures; it also makes new demands on how we work, requiring a continuous alignment of the key strategic areas of our HR work. The massive changes in the world of work as a result of the pandemic and the sharp increase in competition on the labor markets of relevance for thyssenkrupp also have to be considered. Our aspiration is to be an attractive and fair employer, even in challenging conditions.
We actively support managers and staff in the transformation and, above all, with a view to growth topics by offering a wide range of continuing professional development courses. For instance, we offer HR measures tailored to each company to support the necessary restructuring activities. At the same time, we are working on HR topics relating to the future of thyssenkrupp. We see the constantly changing workplace as an opportunity and are modernizing collaboration, processes and working models in alignment with our business models. The most recent example is the introduction of hybrid working models.
We are positioning thyssenkrupp with the relevant target groups and platforms as an attractive technology employer. Internally we make use of employee retention measures, which also support our strong culture. A key focus here is identifying, networking and retaining staff, especially those with technology and engineering skills. The foundations for all this are our shared values: openness and mutual respect. We aim for continuous improvement and, with a view to future challenges, we want to make our organization more agile and more adaptable. We are continuing to reduce hierarchies and foster professional strengths and personal initiative. Our goal is to bundle our strengths to increase efficiency in the long term. The lean & agile method supports us in this.
"engineering. tomorrow. together." remains our motivation; with our technological know-how and industrial expertise under a strong thyssenkrupp umbrella brand we aim to make an important contribution to a more livable and above all sustainable world.