Simplifying Management Layers to Unleash Innovation

In a remarkable shift, pharmaceutical giant Bayer transformed its corporate culture by adopting a model called Dynamic Shared Ownership (DSO), championed by Michael Lurie, the chief catalyst at Bayer. This initiative reduced management layers from thirteen to as few as three and allowed product teams, like one that launched a billion-dollar drug a year sooner than expected, to act like self-managed startups. The company replaced annual budgets with dynamic resource allocations toward value-creating teams. Lurie shows leaders how to craft an aspirational vision that justifies change; empower teams with real authority; and redefine leaders as visionaries, architects, catalysts, and coaches. Lurie encourages viewing employees as “fully formed adults” capable of designing their own futures. He also emphasizes experimenting within teams to focus on customer value and innovation.