BASF – The Chemical Company

Francis Kirema

Peter van den Hoek

BASF – The Chemical Company We create chemistry for a sustainable future

Our chemicals are used in almost all industries

We combine economic success, social responsibility and environmental protection

Sales 2011: € 73,497 million

EBIT 2011: € 8,586 million

Employees (as of December 31, 2011): 111,141

In 2011, BASF filed for around 1,050 new patents worldwide

6 Verbund sites and around 370 production sites

Platzhalter für Bild

Structure of BASF’s segments

Chemicals Plastics Performance

Products

Functional

Solutions

Agricultural

Solutions Oil & Gas

Inorganics

Petrochemicals

Intermediates

Performance

Polymers

Polyurethanes

Dispersions &

Pigments

Care

Chemicals

Nutrition &

Health

Paper

Chemicals

Performance

Chemicals

Catalysts

Construction

Chemicals

Coatings

Crop

Protection

Exploration &

Production

Natural Gas

Trading

Business Units see growth opportunities in several industries

Opportunities in several industries in West and East Africa

Accelerate growth (capture immediately):

Agro/Food/Feed, Construction, Home & Personal

Care

Prepare growth (define and implement pre-

sales activities): Mining, Oil/Gas/Refinery,

Automotive

Discover (evaluate potential): Furniture/Wood,

Packaging, Water, Chemicals

Focus industries

Focus countries

Accelerate growth (strengthen, expand):

Algeria, Morocco, Tunisia, Egypt, South Africa

Increase focus, presence (discover, develop):

Kenya, Ethiopia, Tanzania, Ghana, Nigeria, …

Close watch on the market (observe, capture

later): Libya, Ivory Coast, Angola, D.R. Congo,

Sudan

Tunisia Morocco

Algeria

South Africa

Egypt

Sudan

Ethiopia

Libya

Ghana

Nigeria

Angola

Tanzania D.R. of Congo Kenya

Ivory

Coast

Zambia

Mali

Zimbabwe Namibia

Mauritius

Uganda

BU-specific view may differ.

Accelerate growth Agro/Feed/Food

Construction

Home/Personal Care

Prepare growth

Mining

Oil/Gas/Refinery

Automotive

Packaging

Furniture and Wood

Water

Discover

Opportunities 2010-2020, by country, by industry

Source: Sub-regional Strategy Africa 2020

Diversity + Inclusion

6

Truly rich are those,

who willingly accept

the variety of differences.

Chuang Tzu

7

Why diversity and inclusion?

New challenges call for new solutions

Changing consumption patterns

Regulation

Demographics

The world is changing:

Globalization

8

0,0

0,5

1,0

1,5

2,0

2,5

2003 2005 2007 2009 2011 2013

Classical cost containment will not be sufficient to boost company performance

Classical efficiency programs

+ Restructuring

Innovation

+ Culture

Earnings improvement [billion €]

Value maximization

Costs minimization

9

DIVERSITY

INCLUSION

We believe that

the uniqueness

of all our people

in all aspects is

our asset.

And we have

to make sure

that everyone

can contribute.

10

Religion

Gender

Race

Physical ability

Age

What is Diversity ?

Nationality Language

Value systems

Life experience

Heritage

Thought process

Function

Education

Talents Sexual orientation

Beliefs Skills

Perspectives

Family status

11

Source:

BASF Diversity + Inclusion Team,

Sept. 2009

Diversity is the mix!

– Inclusion is making

the mix work! Andrés Tapia,

Chief Diversity Officer/ Emerging Workforce Solutions Leader

12

Business relevance of diversity and inclusion

Leaders ignore and suppress

cultural differences

Cultural differences become an

obstacle to performance

Leaders acknowledge and

support cultural differences

Cultural differences become an

asset to performance

Performance

Nu

mb

er

of

Te

am

s

Local (national)

Teams

Multinational

Teams

Multinational

Teams

Study by Distefano, J. J. & Maznevsky, M. L.

(2000). Creating Value with Diverse Teams in

Global Management, Organizational

Dynamics, 29 (1), pp. 45-63.

13

Business case example: Localizing development of products

Source: BASF

■ Increase BASF’s market share in footwear application in China

■ Understand differences in anatomy and customize solution for local needs

■ Generated high interest from Chinese sports shoes companies with first sales in 2009

■ Footwear market potential in China: €1.1 billion with growth by 15 %

14

Business case example: Plant health business model

■ Creation of “Blue Ocean” market for BASF

■ Introduced a system for improving plant health beyond crop protection against pests

■ Success resulted from a inter-regional and inter-functional team of employees and customers

■ 3 digit million Euro additional sales for BASF

Source: BASF

15 Source: BASF Diversity + Inclusion Team

D+I basics Ambassador network

Benchmark panel

Joint strategic review

Change management D+I events

D+I trainings

Cultural navigator

Management dialogues

Communication strategy Awareness campaign

Global movies

Comics

D+I online trainer

Global measures to enhance diversity and inclusion

Global Career Development Intercultural awareness training

D&I in recruiting

D&I as leadership competency

4/15/2009 INTERNAL 16

I value change

===========

=============

============

I value tradition

I prefer analytical, l inear problem

solving

===========

=============

============

I prefer intuitive, lateral problem

solving

I feel more productive when working on my

own

===========

=============

============

I feel more productive working with a team

I easi ly accept risk

===========

=============

============

I try to avoid risk

I prefer to discuss

different opinions

===========

=============

============

I prefer being in line with others

Instructions have to be specific and clear

===========

=============

============

Instructions always should have scope

I like competition amongst people

===========

=============

============

I like collaboration with people

I like being in time

===========

=============

============

I am flexible with time

To get my work done and achieve

my objective is

important for me

===========

=============

============

The goal of the team is important and has

first priority

1. Mark your preference individually

3. Discuss amongst your team:

a. Where are similarities and

differences?

b. What are your teams strengths?

c. What could be potential conflicts?

d. How are you going to deal with the

conflicts?

e. What kind of tasks would be ideal for

your team?

2. Transfer your results to the team

profile sheet

Individual and team profile

17

Introduction of “Inclusion of Diversity” in 2010 into global competency framework

18

18

Kickoff Measures / Targets Analysis: as-is vs. to-be:

Understand concept and deliverables

Align on measures and implementation plan,

agree on target ranges

Capabilities Talent Pools

Inclusion

D&I concept, implementation plans and targets

are well understood and established

3 sessions in 3 months

Business unit engagements

1 2 3

19

Top priority: management commitment

20

Implementing

diversity and inclusion

22

42

49

EU-27

2000 2015

31

40

Migration, aging and feminization lead to a more heterogeneous composition of work force

Aging population [65+ per working age person %]

7

1917

35

Diversity is “the new normal”

Migration [non-whites %]

Feminization of labor force [female graduates %, MINT & business]

China

1980

USA

2000 2020 2020

Germany

1980 2020