DaimlerChrysler introduces new management model

What do you do if you’re a company whose high profile merger has been less than a raging success? Well, if you’re DaimlerChrysler, you introduce a new management model. They hope that it will enhance their competitiveness and enhance future profitability. That and some good cars should do the trick.

The company will be leaner, meaner and more efficient after the changes. G&A costs will be decreased by $1.78 billion per year. To accomplish that, G&A staff will be decreased by 20 percent over the next three years. They will focus on redundancies between in positions between corporate and operating levels. By eliminating duplicated positions they hope to decrease the complexity of the organization. Also, by integrating G&A operations, they can make processes across the board that are consistent, flatter and more efficient. The Board of Management will also be reduced to 9 members from 12 and moved closer to production.

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