Straumann Group Reorganizes for 2012

The coming year is going to bring reorganization for the Straumann Group. Leadership at the Basel, Switzerland-based maker of dental implants and oral tissue regeneration claims the new structure will “enhance agility, improve efficiency, foster entrepreneurism and shorten time to market.”

According to Gilbert Achermann, board chariman, the expansion of the company’s portfolio and geographic reach in recent years has increased complexity, particularly for its sales team. He also cited dental markets weakened by the global economy and the emergence of new technologies and geographic markets emerge as reasons for restructuring.

“Straumann’s existing structure served well for several years and has helped us to deliver above-market performance,” Achermann said. “But we are now operating under very different conditions—in maturing markets, new segments and geographies, with additional products and new technologies. We still have significant inherent potential but need to adapt structurally and culturally in order to unlock it and sustain our success in the years ahead”.

Part of the reorganization includes a shakeup in its three sales regions—Europe and the Middle East, North America, and Asia-Pacific—and across all its product lines—Surgical, Prosthetics and Regenerative. A layer of senior management was removed or restructured in an attempt to shorten decision times and streamline processes. Management was quick to add that the reorganization did not involve downsizing, and job reductions are not predicted.

“A company that seeks to win in tomorrow’s marketplace must be agile, entrepreneurial, close to customers, and able to offer excellent service,” said Beat Spalinger, president and CEO. “I am convinced that the organization … will implement in 2012 will provide us with those attributes. Importantly, it will reduce complexity for our sales team. This will increase efficiency, get us closer to customers and ultimately drive top-line growth”.

To represent the regions and leading business units at top management level, the executive management board will be expanded from four to seven members. Spalinger; Thomas Dressendoerfer, chief financial officer; and Dr. Sandro Matter, executive vice president, Prosthetics, will be joined by: Dr. René Willi, executive vice president of surgical; Frank Hemm; executive vice president of sales Europe, the Middle East and Latin America; Andy Molnar, executive vice president of sales for North America; and an executive vice president of sales for the Asia-Pacific region who has not yet been names.The new executive positions have been filled through internal promotions.

The current executive vice president of Global Sales, Franz Maier, who helped lead the reorganization project, will leave at the end of the year. He had been with the company since 2007.

The reorganization won’t come without a price, however. The company expects costs due to the reorganization of approximately $3.3 million-$4.3 million in 2011 and approximately $4.3 million-$5.3 million in 2012. Straumann still expects to deliver an operating profit margin within its existing guidance. Sales for the first nine months of 2011 (Ended Oct. 25), the company reported approximately $560 million, which about a 6 percent decline compared to the same period last year. Management says currently fluctuations strongly contributed to the dip, but that solid sales in North America helped overall.

Straumann currently employs more than 2,400 people worldwide, and its products and services are available in more than 70 countries through a network of distribution subsidiaries and partners.