Phoenix Contact
1
Phoenix Contact 2013
Sustaining Energy in Fluctuating Times:
The Role of Leadership and Corporate Culture Development
This case study tells the story of Phoenix Contact, a medium-sized international manufacturer of industrial electrical and electronic technology based in Germany. The main focus is on developments that took place between 2000 and 2013. The world leader in its market managed to digest high-speed growth phases and overcome a severe economic crisis by intentionally developing, implementing and shaping its corporate culture and leadership within the company. The case illustrates these organizational developments, focusing on the challenges Phoenix Contact faced and how company leaders managed to overcome them successfully.
University of St. Gallen case study
Prof. Dr. Heike Bruch, Daniela Dolle
2
Started by Hugo Knümann in 1923 as a small family-run business in Essen, Germany, Phoenix Contact had, by 2013, grown to more than 12.800 employees working in over 70 countries worldwide, generating revenues of over 1.59 billion € in 2012. In 90 years, the manufacturer of industrial electrical and electronic technology advanced to the world market leader, constantly digesting high-speed growth phases and increasing internationalization.
In the late 1990s, company leaders developed an increasingly decentralized structure with high responsibility and scope of action in the units. In 2000, the management team decided to establish corporate principles that included a mission, vision and cultural guidelines. For 2020, the company’s overall strategic goal was to become excellent in all parts of the business and thus, to become the most trusted brand in the industry.
At the worst point during the economic crisis, in 2009, Phoenix Contact faced a 19% decline in turnover. In order to reduce capacity and lower costs, short-time work was introduced but not a single employee was dismissed. The company managed to weather the crisis
and
Phoenix Contact 2013
Sustaining Energy in Fluctuating Times:
The Role of Leadership and Corporate Culture Development
This case study tells the story of Phoenix Contact, a medium-sized international manufacturer of industrial electrical and electronic technology based in Germany. The main focus is on developments that took place between 2000 and 2013. The world leader in its market managed to digest high-speed growth phases and overcome a severe economic crisis by intentionally developing, implementing and shaping its corporate culture and leadership within the company. The case illustrates these organizational developments, focusing on the challenges Phoenix Contact faced and how company leaders managed to overcome them successfully.
University of St. Gallen case study
Prof. Dr. Heike Bruch, Daniela Dolle
2
Started by Hugo Knümann in 1923 as a small family-run business in Essen, Germany, Phoenix Contact had, by 2013, grown to more than 12.800 employees working in over 70 countries worldwide, generating revenues of over 1.59 billion € in 2012. In 90 years, the manufacturer of industrial electrical and electronic technology advanced to the world market leader, constantly digesting high-speed growth phases and increasing internationalization.
In the late 1990s, company leaders developed an increasingly decentralized structure with high responsibility and scope of action in the units. In 2000, the management team decided to establish corporate principles that included a mission, vision and cultural guidelines. For 2020, the company’s overall strategic goal was to become excellent in all parts of the business and thus, to become the most trusted brand in the industry.
At the worst point during the economic crisis, in 2009, Phoenix Contact faced a 19% decline in turnover. In order to reduce capacity and lower costs, short-time work was introduced but not a single employee was dismissed. The company managed to weather the crisis
and