Beginning in the second quarter of fiscal 2020, Ashland will change the way it manages the business, moving from a functionally led organization to a business-unit focused organization. This change recognizes a diverse portfolio of businesses with different value propositions for the markets we serve.
Business-unit Focused Organization
These changes will enable to align business models, resources and cost structure to the specific needs of each business unit and create greater ownership and accountability for both short- and long-term performance. It also plans to align incentive rewards with business-unit performance.
Ashland plans to organize around three primary external-reporting segments and a Corporate reporting segment. Each primary segment will serve certain business units as outlined below.
The Life Sciences business unit will include Pharma and Health & Wellness. Specialty Additives will include Coatings and Performance Specialties. Intermediates & Solvents will report the results of our Lima, Ohio facility. Our Corporate reporting segment will hold our corporate governance activities and certain legacy matters.
Ashland plans to implement the core changes during the second quarter of fiscal 2020, aligning resources, leadership teams, operations, incentives, and financial reporting. Throughout the quarter, the new teams will begin to review and define their respective strategy, business model and cost structure.
Source: Ashland