Ashland has announced that it will change its business from a functionally led organization to a business-unit focused organization, beginning form the second quarter of fiscal 2020. The change will recognize the diverse portfolio of businesses with different value propositions for the markets.
Creating Greater Ownership and Accountability
The changes will enable the company to align its business models, resources and cost structure to the specific needs of each business unit and create greater ownership and accountability for both short-and long-term performance. The firm is also planning to align its incentive rewards with business-unit performance.
Ashland plans to organize around three primary external-reporting segments and a Corporate reporting segment. Each primary segment will serve certain business units as outlined below.
Performance Adhesives Under Specialty Additives
The Life Sciences business unit will include Pharma and Health and Wellness. Specialty Additives will include Coatings and Performance Adhesives. Intermediates and Solvents will report the results of our Lima, Ohio facility. The Corporate reporting segment will hold the corporate governance activities and certain legacy matters.
The firm plans to implement the core changes during the second quarter of fiscal 2020, aligning resources, leadership teams, operations, incentives and financial reporting. Throughout the quarter, the new teams will begin to review and define their respective strategy, business model and cost structure.
Source: Ashland