Speaker: Ernst Baumann
Title: Member of the board of management, BMW AG
Theme: After Rover, BMW has the structure to go its own way and to succeed with a full range of premium cars
Success in the car industry is a matter of balancing strategy and personnel development with the right organizational structure, said Ernst Baumann, member of the board of management at BMW AG.
'If you keep these three aspects in balance, you can outperform the market,' said Baumann, who is responsible for personnel on the board. 'Otherwise you don't gain the speed you want. We had a hard learning curve with Rover. The strategy was right, but the other two aspects were not balanced.'
BMW recently sold off most elements of Rover Group after a disastrous six-year ownership.
'Now we have learned our lesson,' Baumann said. 'In the future we will focus on our core brand strategy to supply customers with a premium full-line model range. And we have to go our own way.'
Baumann said BMW is creating a new structure that encourages people working at lower levels of the company to use their skills and to assume greater responsibility.
He said BMW is following a so-called 'associate and leadership' model with the aim 'generating a culture of trust, to promote cooperation and to realize responsibilities.'
BMW also wants its organizational structure to help forge new relationships with Tier 1 suppliers.
Baumann said: 'All this together creates value and moral standards, which in the end will lead to a share price rise and growth in the overall stakeholder value.'