Manuel Smukalla, Global Talent Impact, Skills Intelligence, and Systems Lead at Bayer, joins Workplace Stories to unpack one of the most ambitious organizational transformations underway today. As Bayer confronts significant market, legal, and profitability pressures, the company has taken a radically different approach to how work, leadership, and talent are structured, rethinking everything from management layers to career progression. In this episode, Manuel walks through Bayer’s shift to Dynamic Shared Ownership (DSO), a decentralized operating model built around networks of teams, 90-day work cycles, and leaders who coach rather than control. He explains why skills visibility became a foundational requirement for this model to work and how Bayer is using skills data to democratize opportunities, improve talent flow, and fundamentally rethink careers inside a global enterprise. You’ll hear how Bayer reduced management layers by more than half, redesigned leadership expectations through its VAC (Visionary, Architect, Catalyst, Coach) model, and moved toward a culture where employees are empowered, and expected, to own their work, development, and impact. You will want to hear this episode if you are interested in... [01:01] Why Bayer embarked on a radical organizational transformation.[04:30] What Dynamic Shared Ownership really means in practice.[06:55] Moving from hierarchical structures to networks of teams.[10:40] Why skills visibility became a critical business problem.[14:05] How 90-day work cycles change accountability and outcomes.[18:10] Building organizations around customer problems, not functions.[21:15] Launching skills profiles as a starting point, not an endpoint.[23:00] How Bayer’s talent marketplace democratizes opportunity at scale.[27:00] The three pillars of a skills-based organization.[33:00] Rethinking careers, performance management, and feedback.[43:10] The VAC leadership model explained.[52:30] Measuring success in a decentralized organization.[53:45] Advice for organizations considering similar transformations.Dynamic Shared Ownership: Redesigning How Work Gets Done At the core of Bayer’s transformation is Dynamic Shared Ownership, an operating model that replaces traditional hierarchies with flexible networks of teams. Manuel explains how Bayer reduced its management layers from thirteen to six and reorganized work into 90-day cycles focused on clear outcomes. After each cycle, teams reflect on what worked, what didn’t, and whether the work should continue at all. This approach decentralizes decision-making and forces a shift away from command-and-control leadership. Leaders are no longer expected to direct every task; instead, they create the conditions for teams to succeed, setting direction while trusting teams to determine how outcomes are achieved. Skills as the Engine of Talent Flow For Dynamic Shared Ownership to function, Bayer needed a new way to understand and deploy talent. Manuel shares a pivotal realization: managers were turning to LinkedIn to understand employee skills because the organization lacked internal visibility. That insight sparked Bayer’s skills journey. Rather than starting with complex taxonomies, Bayer focused first on skill visibility. Employees created and maintained skills profiles, supported by workshops on how to describe capabilities effectively. Over time, this evolved into a talent marketplace that matches people to work based on skills, not job titles, career level, or location, helping democratize access to opportunities across the enterprise. Moving Talent to Work, Not Work to Talent Manuel outlines three defining pillars of a skills-based organization. First, talent must move to work rather than work being constrained by static roles. Second, organizations must commit to permanent upskilling, recognizing that development is continuous, not episodic. Third, opportunities must be democratized at scale, reducing reliance on manager sponsorship or informal networks. Bayer’s marketplace supports fixed roles, flex roles, and fully agile project-based work, encouraging employees to actively shape their careers while remaining accountable for outcomes. This model challenges long-held assumptions about promotions, ladders, and linear advancement. Leadership and Performance in a Decentralized World Leadership at Bayer has been redefined through the VAC model: Visionary, Architect, Catalyst, and Coach. Leaders set direction, help teams design how value is created, remove barriers, and support rapid cycles of learning. This requires significant unlearning for leaders shaped by traditional hierarchies. Performance management has also shifted. Goals are set in 90-day cycles at the team level, with feedback coming from peers and work leads rather than solely from a direct manager. Over time, this creates richer data on contribution and impact, but also demands a cultural shift toward transparency, shared accountability, and continuous feedback. Connect with Manuel Smukalla Manuel Smukalla on LinkedInConnect With Red Thread Research Website: Red Thread ResearchOn LinkedInOn FacebookOn Twitter Subscribe to WORKPLACE STORIES
