Building a global Kemira: the CEO’s three keys to success

“Kemira must grow, improve its profitability and secure its future. This is the only way to succeed,” says, Wolfgang Büchele, President and CEO.

One of Kemira’s goals is to develop into a genuinely global company. “Not at any price, though,” says Büchele, who holds a PhD in chemistry and has carved out a long career in the field.

He learned to change with the times at home. He learned much from his father, who was quick to start businesses – but equally quick to close them if they turned out to be unprofitable. Büchele learned more about the art of letting go when studying chemistry in Ulm.

“A new material may seem fantastic, but if it has no market, it is probably a fairly useless invention.” The same applies to business life. “In chemical research, I try to see whether it will produce innovations,” Büchele explains. “You have to listen carefully to your customers and markets, focus on your strengths and be able to re-invent yourself. Being innovative is part of the recipe for success.”

One: Detect the signs and adapt

Büchele is very familiar with Kemira’s ongoing research projects. Kemira has high expectations for polymers, which are being studied at the Center of Water Efficiency Excellence, also known as SWEET. “We are in the process of developing new polymers for the paper industry to reduce the amount of coating agents needed. These polymers will decrease costs and energy consumption and benefit the paper industry in many other ways.”

Eventually, technologies run their course. Büchele gives cassette tapes as an example. They were replaced by CD and DVD discs made of polycarbonate. Chemical manufacturers increased their capacities, but then MP3 players conquered the market. Suddenly, companies needed to come up with new uses for polycarbonate. “Proactive companies succeeded, but those who responded too late paid a high price.” Büchele never wants to see Kemira in such a situation. The signs must be detected in time.

Büchele began his career in chemistry as a researcher in 1987. He has seen European companies transfer their operations to Asia, but without giving up their established European business model. After trying to operate on both fronts with the same approach, many companies have collapsed. Büchele learned that it is no use fighting market trends. Companies must adapt and draw conclusions about the effects of the changes on their operations.

Two: Develop a concrete strategy and customer-centered organization

Büchele began his work as the President and CEO of Kemira in April, and has been a member of Kemira’s Board of Directors since 2009. First Büchele had profound discussions with employees. He noted that people are very skilled, committed to the water strategy and have a high energy-level.

“We have to improve our internal efficiency and profitability, and accelerate growth where the water-related market is growing.” Launched in July, the Fit for Growth program aims to deliver this by simplifying the organizational structure, reducing layers and placing substantial responsibility with the regions.

Kemira’s new organization is divided into four segments. The key goal is to further improve Kemira’s customer orientation. There will better fulfilling of customer needs by having R&D as well as application and business development closer to the customers. All segments will serve their customers independently under the strategic guidance of the head office in Helsinki.

Three: Know what not to do

“We must sharpen our strategy,” Büchele explains. ”It is not enough that we know what to do. We must also know what not to do.” Kemira intends to increase its business operations in Asia and South America. Should it also launch operations in the Australian mining business, or should it set its sights on raw materials in Africa? These are some of the questions Büchele will ponder with his employees.

In 2012 and 2013, Kemira will strengthen its position in China, Germany and Spain, where it will launch new production plants. Step by step, Wolfgang Büchele will take Kemira closer to being a genuinely global company.

5 facts about Wolfgang Büchele:

A book that teaches us to think in new ways?
The Art of War by Sun Tzu. The best book about strategic thinking.

Your favorite travel destination?
Europe. It is clean and systematic, and everything works well.

Your most interesting experience in chemistry?
An accidental explosion during my doctoral studies.

Diving is a family hobby for you. What is your favorite spot?
The Red Sea. One of the most beautiful diving locations I’ve ever seen.

What is your best way to relax?
Doing something. I never get stressed.

>> Read the full article from Kemira’s stakeholder magazine WaterLink 02/2012 (.pdf)