The 162-year-old German life sciences corporations Bayer is pushing a sweeping organizational overhaul. A representative example is breaking from its traditional year-based operating model and introducing a system that reviews performance every 90 days.
It is also applying artificial intelligence (AI) to its HR system to analyze employees' capabilities and propose growth paths. Bayer has named this the "DSO (Dynamic Shared Ownership)" model and is accelerating its shift to an organization centered on autonomy and collaboration.
On the 7th at Bayer Korea's office in Yeouido, Seoul, Jeong Hyeon-jin, Bayer Korea's head of HR (Country HR Lead), said the background of the organizational change was that "corporations must learn and execute faster to survive." Bayer is the corporations that developed the world's first synthetic drug, "Aspirin (antipyretic analgesic)." It does business not only in pharmaceuticals but also in agriculture. Bayer Korea marks the 70th anniversary of its entry into Korea this year.
◇ Productivity and capability enhancement model DSO introduced
With the introduction of the DSO model, Bayer Korea advances work in 90-day cycles, formalizes meetings among members to review performance, and shares feedback. Through a feedback tool called My Impact Insight, employees receive feedback each quarter from 5 to 15 colleagues. All processes are conducted with names disclosed.
Jeong explained the DSO model by saying, "The key is to reduce unnecessary approval procedures within the organization and make quick, practitioner-centered decisions in an environment where AI and digital technologies are rapidly advancing."
Jeong said, "The essence of this system is not to 'pressure' employees, but to review performance periodically and respond more nimbly to customer value," adding, "The goal of DSO is to break away from existing bureaucracy and create an environment where employees can freely voice opinions and try new things with psychological safety."
Jeong assessed that the rapid collaboration system stemming from the DSO transition is also translating into tangible results.
Jeong said, "Most employees are now working in mission-driven 'squads,'" adding, "There was confusion at first, but now the ability to understand each other's work context and see the big picture has improved."
As key achievements, Jeong cited that the treatment for type 2 diabetes with comorbid chronic kidney disease ranked sixth globally in domestic sales after reimbursement listing in Feb. last year, and that the high-dose product for macular degeneration was able to receive reimbursement listing earlier than planned, in Oct.
◇ "In the AI era, T-shaped talent will gain value"
Bayer is also pursuing a capability-centered HR strategy using AI technology. It operates the "Talent Marketplace" and "Career Navigator" platforms, which recommend projects and design careers based on employees' capabilities.
Jeong explained, "When employees enter their career information, AI recommends suitable projects and guides them to activities or mentoring that can strengthen the necessary capabilities," adding, "Since the global companywide launch early this year, more than 60% of employees have already registered."
AI also proposes the capabilities each employee should learn and develop, helping individuals to grow continuously. Jeong said, "This platform is not just an HR management tool, but an upskilling ecosystem where employees can design their own careers and grow."
Jeong said that going forward, the focal point of global corporations HR will be "skill-based organizations."
Jeong said, "Now it is an era where skills take precedence over jobs," adding, "In the past, we worked according to set job descriptions, but now teams are quickly formed and disbanded around tasks," and "We collaborate by project and seek growth opportunities based on our capabilities."
Bayer is also operating a system that allows talent to participate in overseas projects as needed, rather than remaining in fixed roles.
Jeong said, "The more we work with AI, the more the value will rise for 'T-shaped talent' who, beyond simple expertise, combine deep specialization in one field with a broad perspective and understanding across diverse areas."