Thyssen-Krupp Corporate Organization

2013: ThyssenKrupp had introduced the matrix management system. Product line- and country-management are to decide jointly on all important customer and selling issues. Former CEO Heinrich Hiesinger expected to improve the decisions especially in overseas markets. But in matrix systema grave disadvantage is the longer time for decisions. Whenever the matrix system is deemed to be necessary other problems of management might be lingering. Developments in early 2018 however show the introduction of the matrix organization was just a harbinger of more fundamental problems.

So in March 2018 considerations got under way restructuring the whole corporation, including all 5 divisions. The division steel already had been put into a joint venture with Tata. But even with 4 divisions with many units on the level below ThyssenKrupp remained a highly diversified corporation. Producing all necessary decisions seemed to overload one management board. Some kind of splitting was to be put under scrutiny.

In theory to find sensible solutions, first all relevant units have to be checked on concurrence or on distinction of customers. Second step is to identify the main product groups with their affiliated workplaces / facilities. Third has to be found how far research and development is assigned to main product groups or to the headquarter. The results of such an investigation will give a first sensible insights to reorganizing a company – in regard to economy.

The results of such investigations – if done – of course were not made public, instead plans were published to split ThyssenKrupp into two companies: the Thyssen-Krupp Industrials and the Thyssen-Krupp Materials.

Thyssen-Krupp Industrials are to combine high-tech components for the auto sector (e.g. camshafts, steering systems,…) and the machinery sector (e.g. construction equipment, wind turbines, …), passenger and freight transportation systems (e. g. elevators, …), industrial plants (e. g. assembly lines, …) etc.

Thyssen-Krupp Materials will offer material services (e. g. supply chain management,…)., stainless steel processing, shipbuilding (e.g. naval ships, submarines, …) etc.

So far nothing is known about sales units, how much of the sales staff will be working in units reporting to headquarter or the new companies and their sub-units? That are important, delicate questions for any large corporation.

P. S. These considerations are based on public information in the media. They are to illustrate theoretical findings. If the used assumptions prove to be different, different conclusions might possibly to be taken. – Comments welcome, see impressum.