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Caso / Dirección Estratégica
Succession at Merck KGaA
Neumann, Frederic A.; Tàpies Lloret, Josep
IESE (España)
Sigla: DG-1504-E
Resumen:
The case focuses on the issue of succession in terms of family, management and governing bodies. It describes in some detail the period between 1963 and 2000, when Hans Joachim Langmann, the charismatic leader, was at the helm of Merck. It illustrates the consequent internationalization, the research focus on liquid crystals for LC displays instead of pharmaceuticals and the patriarchal leadership style of this time. Next, the five-year stint of Bernhard Scheuble, a glamorous family outsider chosen by Langmann, is discussed, a period that ended in 2005 with his dismissal and succession by Michael Römer, a 27-year Merck veteran formerly in charge of the Chemicals division, and liked by many family insiders because of his low profile leadership style.
The case discusses the issue of shorter CEO life cycles in Merck's highest management as a means of examining the effectiveness of the prevailing management structure in selecting and appointing top leaders and their successors.
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