communication and the groupcorporate.evonik.com/misc/epaper/folio/2009/folio-2009-11-en.pdf ·...

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Head to headCreativity: Klaus Engel talks to Dieter Gorny

Communication and the Group

How Evonik Industries communicates information internally and externally—and the brand’s impact

Superabsorbers Getting closer to customers for better results

EN | International Edition

1_Folio_11-09_EN_K0 11_Folio_11-09_EN_K0 1 09.11.2009 15:21:21 Uhr09.11.2009 15:21:21 Uhr

2 C O N T E N T S

3 Editorial On communication and creativity at Evonik Industries

4 Magazine Wind power in Turkey, geothermal energy in Lünen, successful bonds, expansion in the USA, lunch in Steinau an der Straße

6 Cover story What instruments are used by Corporate Communications? Where is the dividing line between inside and outside? “Folio on the spot” showed that these topics are being hotly discussed at Evonik

12 Focus on superabsorbers With its superabsorbers, Consumer Specialties is precisely catering to customer needs

16 Head to head Dr. Klaus Engel and artistic director Prof. Dieter Gorny discuss creativity

19 Rally puzzle Win one of four iPod nanos

Evonik people Suzan Koster from Maastricht

Readers with questions and suggestions can contact the editorial offi ce at: [email protected]

Folio 11 | 2009

MASTHEADPublisher: Evonik Industries Aktien gesellschaft, Dr. Klaus Engel; Office Manager/Head of Internal Communication: Stefan Haver; Editor in Chief: Sven Scharnhorst (responsible according to press law); Editorial Consultant: Christoph Peck; Art Direction: Wolf Dammann; Managing Editor: Stefan Glowa; Head of Group Editorial Office: Steffen Henke; Senior Editor: Christof Endruweit; Authors in this issue: Manfred Bissinger (MB), Christof Endruweit (CHE), Ursula Jäger (UJ), Walter Klöter (WK), Christoph Peck (CP), Sven Scharnhorst (SVS); Address: Rellinghauser Straße 1, 45128 Essen, Postfach 10 32 62, 45117 Essen, Tel. +49/(0)201/177-33 40, internal 992-33 40, Fax +49/(0)201/177-31 81, e-mail: [email protected]; Picture Editor: Karsten Bootmann; Design: Martin Bartel, Arnim Knorst (head), Silke Möller/Redaktion 4, Hamburg; Copy Desk: Wilm Steinhäuser; Translation: TransForm, Cologne; Publishing house: HOFFMANN UND CAMPE VERLAG GmbH, a company of the GANSKE VERLAGSGRUPPE, Harvestehuder Weg 42, 20149 Hamburg, Tel. +49/(0)40/441 88-457, Fax +49/(0)40/441 88-236; Management: Manfred Bissinger, Dr. Kai Laakmann, Dr. Andreas Siefke; Publication Manager: Viviana Plasil, Dr. Jessica Renndorfer; Production: Claude Hellweg (head), Oliver Lupp; Marketing: Kirsten Beenck, Tel. +49/(0)40/688 79-139, Fax +49/(0)40/688 79-199, e-mail: [email protected]; Reproduction: PX2, Hamburg; Copyright: ©2009 by Evonik Industries Aktiengesellschaft, Essen. Reprinting only with source credit and voucher copy. The content does not necessarily reflect the opinion of the publisher.

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TrustworthyHow does corporate communication work, and what makes it worthwhile? “Folio on the spot” put this question to employees, including those pictured above in HanauPAGE 6

CreativeHow can creativity be fostered, and where does it require firm structures? Dr. Klaus Engel and artistic director Prof. Dieter Gorny discuss creative freedom PAGE 16

On the cover: Evonik employees have thrown more than 700 comments into the “Folio on the spot” suggestion box. (Pictured on the cover is Christina Buddner, photographed by Dirk Bannert). Thanks once again for your willingness to spontaneously offer the editors your praise, criticism, and suggestions


People, brands, mediaIt is unusual for Corporate Communications to make its own work the focus of a Group publication like Folio. Our “Folio on the spot” campaign, however, revealed that you, the employees of Evonik Industries, would like to be informed about the essential elements of our corporate communication activities. This is particularly true during a time of recession and in light of the increasing complexity of a company like Evonik and its business environment. The questions you asked us at the different locations represent a wide spectrum: What is the status of Evonik Industries’ brand recognition more than two years after the brand’s launch? Which formats and media does Corporate Communication use for which content and messages? And what is the relationship between internal and external communi-cation? The Folio cover story provides facts and answers to these questions.

Creativity has become a key concept. Evonik Industries refers to itself as a creative industrial Group, for instance. Dr. Richard Florida, a best-selling American author, came up with the term “creative class” to describe people who in the future will play important roles in shaping our society. So it is only appropriate that we have made the topic of creativity the central element of an interview. But the discussion is different than what you would normally expect to read in Folio: In interviewing each other, Evonik Executive Board Chairman Dr. Klaus Engel and Dieter Gorny, the cultural manager and an artistic director of Ruhr 2010 GmbH, touch on a wider scope of issues than are normally covered in an employee magazine. We are planning to feature this series, in which Dr. Engel and a discussion partner will explore a wider array of topics, from time to time in future issues under the title “Head to head”—so you can expect exciting insights.

Pleasant reading!

The Evonik agenda for NovemberLas Vegas (Nevada, USA), November 16–18, 2009: The 13th National Industrial Fasteners Show West is the world’s largest trade fair specializing in fasteners and fastening systems. The Inorganic Materials Business Line will present its latest products and technologies at the event.

Essen, November 16: Evonik will report the results for the third quarter of 2009 and provide information on the development of Group business activities.

Coventry (UK), November 18–19: More than 150 exhibitors at SCS Formulate will present concepts concerning all aspects of the creation, formulation, and sales of cosmetics. The Consumer Specialties Business Unit will present its products.

Düsseldorf, November 3–6: A+A is a “must” event for everyone in professions related to workplace protection and occupational safety. Evonik will take part with the team from STOKO Skin Care.

Shanghai (China), November 18–20: ChinaCoat is considered Asia’s most important trade fair for surface finishing. Evonik’s Coatings team will be at the event to present the Chemicals Business Area’s full range of solutions for the lacquer and varnish industry. The tried and proven Smart Formulating concept will be in use on 260 square meters.

Sven Scharnhorst,Editor in Chief

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The name STOKO® is a protected brand of Evonik Industries AG or its subsidiaries and is written in capitals in the text.

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Folio 11 | 2009

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New process for paintsThe production facility for thermoplastic methacry-late resins was completed on time in Shanghai (China) after two years of construction. The plant will be officially inaugurated in the presence of the customers in November. The facility, which was built as part of the Yazhou (Asia) project, uses an all-new polymerization process known as CDP (Continuous Direct Polymerization). The process was tested thoroughly over the past two years in a pilot plant in Darmstadt. CDP makes it possible to manufacture paint binders in a cost-efficient and very high quality manner. These paint binders are primarily used in ship and container construction, as well as in the production of mobile phones and toys. Another huge benefit of the cutting-edge CDP process is that it generates much less waste water than does the previously used suspension polymerization method. Besides protecting the environment, this helps reduce disposal costs.

Germ-free and ecologicalHow can the milk carton be made germ-free and en-vironment-friendly? One of Brazil’s largest produc-ers of dairy products uses OXTERIL, a product for aseptic cardboard packaging that Evonik Industries produces at its hydrogen peroxide production facility in Barra do Riacho. The product is also suitable for packaging for soups and beverages. The packaging can be disinfected by dipping it into or spraying it with OXTERIL, which is 35 percent hydrogen per-oxide. One variant of the product is suitable for both processes, making it unique on the Brazilian market. The major advantage shared by all variants: They are biodegradable and leave behind no residues.

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“We are taking on responsibility”The activities of Evonik Industries regarding REACH and the GHS chemicals classification system; pre-ventive measures against pandemics; and challenges in occupational medicine, legal compliance, and occupational health and safety were just some of the topics addressed by more than 50 experts from the Group at a global conference on the environment, safety and health (ESH). The meeting at the Gold-schmidtstraße location in Essen was also attended by colleagues from abroad, including representatives from the United States, China, Columbia, Belgium, and the UK. Ralf Blauth, Labor Director and Member of the Executive Board of Evonik Industries, empha-sized the importance of ESH at the Group: “The environment, safety and health are important topics, because we bear responsibility for the people that work for us,” he said. In addition, good achievements in this area are a precondition for long-term business success, added Blauth.

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The project team in Shanghai (China)

Dr. Thomas Jostmann, Director of the Environment, Safety, Health corporate division (left), and Ralf Blauth

INTERNETwww.evonik.com; www.lilly.com

Expanded involvement in the USAEvonik Industries is acquiring the Tippecanoe manufacturing site in Lafayette (Indiana, USA) from Eli Lilly and Company, Indianapolis (Indiana, USA). The facility’s approximately 700 employees manufacture active substances and primary products for the pharmaceuticals industry. Financial terms of the deal were not disclosed. The deal is expected to close at the end of the year. The transaction also includes a multi-year partnership with Eli Lilly for the production of active substances. The facility will be fully integrated into Evonik’s global production and marketing network. “The acquisition of Tippecanoe Laboratories enables us to meet the growing demand for intermediates and active substances in the pharma-ceutical industry and substantially boosts our global exclusive synthesis business,” said Evonik CEO Dr. Klaus Engel. “The pharmaceutical market is attractive, econom-ically stable, and produces growth rates near the double-digit range every year.” In addition to acquiring the facility, Evonik has signed a multi-year supply and services agreement with Lilly regarding the provision of active pharmaceutical substances and intermediate products for pharmaceuticals. “We’re delighted about the close cooperation with Eli Lilly, one of the world’s leading pharmaceuticals companies,” says Dr. Hans-Josef Ritzert, Director of the Evonik Business Line Exclusive Synthesis & Amino Acids. “Our customers benefit from the technology range offered by the western Evonik locations as well as from our expertise in making intermediate products for the pharmaceuticals industry.” “Today’s announcement represents a positive outcome for employees at the site, the Lafayette community and Lilly,” said Dr. John Lechleiter, President and CEO of Eli Lilly. “We are confident in our decision to sell the location to Evonik, as it is a well-established multinational com-pany that will continue to operate the site and more fully utilize its capabilities.”

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Stepping up the pace with LEDs in TaiwanA new joint venture is born: Patrik Wolhauser, managing director of Evonik Degussa GmbH, and Thomas Hermann, head of the Inorganic Materials Business Unit, unveiled the logo of Evonik Cristal Materials Corporation in Taiwan on October 8. “This joint venture will help its customers develop new technologies faster. Participating in the joint venture offers Evonik an attractive opportunity for forward integration along the entire supply chain in the growing LED market,” added Wohlhauser in his speech to representatives of Evonik’s partner Cristal Material Corporation, important customers, the Taiwanese Ministry of the Economy and the German Economic Office. LEDs (light emitting diodes) are much more energy efficient than conventional light sources, last longer and offer much greater design freedom. Hermann therefore anticipates major business opportunities. “With expected growth rates of more than 20 percent per year, we are certain that LEDs will become an effective lighting solution in everyday applications, enabling everyone to make their contribution to energy conservation.” During this visit to Taiwan, Wolhauser also joined in the festivities celebrating the 30th birthday of Evonik United Silica Industrial Ltd. With its more than 100 employees, Evonik United Silica Industrial Ltd. provides silica to customers in more than 15 countries. Wolhauser also praised the team at Evonik Forhouse Optical Polymers Corporation for its record production of 3,410 metric tons in August. Evonik Forhouse Optical Polymers Corporation manufacturers high-quality polymethyl methacrylate (PMMA) for optical applications in Taiwan.

The name OXTERIL® is a protected brand of Evonik Industries AG or its subsidiaries and is written in capitals in the text.

Patrik Wolhauser (left) and Thomas Hermann unveiled a good luck charm for the new joint venture in Taipeh

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LUNCH IN…

Steinau an der StraßeSolid, hearty food and always garnished with a kind word—these are the types of dishes served up by canteen chef Anita Pichert. You know exactly what you are getting! The trainees who meet at their regular table in the canteen every day appreciate the fact that the meat and sausages are supplied by the butcher in town, for example. Nils Freytag, Marc Kaulich, Sebastian Wess, Marcus Dehmer and Marina Beringer (from left) are regular guests of Anita. Additives for detergents and cleansers are just some of the products produced by Evonik Goldschmidt Rewo GmbH in Steinau an der Straße, which lies on the historic trade route from Frankfurt to Leipzig.

Avoid risksA new directive gov-erns who can be en-gaged as an external broker for the sale of products from Evonik Industries and com-mercial goods as well as how the corre-sponding contracts should be designed and implemented to avoid the risk of cor-ruption. The directive protects both the Group and the employ-ees, because most anti-corruption laws throughout the world do not differentiate whether the company itself acted corruptly or used a middleman.

INTRANEThttp://intranet.evonik.com/en/group/company/compliance/

Folio 11 | 2009


More than words and picturesCorporate communication is especially important in times of crisis. The messages it conveys must be closely coordinated and correspond to the information needs of both internal and external recipients. They should also enhance the company’s brand image and generate interest—and do all these things at a reasonable price in view of the current cost reduction strategy at Evonik

Folio 11 | 2009

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Soccer is polarizing and emotional—par-ticularly when fierce rivals like Dortmund and Schalke meet. The same applies to our sponsorship of Borussia Dortmund (BVB), which has significantly enhanced Evonik’s brand recognition

Folio 11 | 2009

IMAGE STATEMENTS

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Creative

Does good advertising

Modern

Courageous


Ready for a little puzzle? Then quickly separate the following combina-tions of letters into individual words:

heavyrain—coldrain—nightrain. Well? Did you write “night rain”—or “nigh train”? This puzzle illustrates how we generally deal with and understand language.

The buzzwords here are “experience” (in this case: what we accept twice will influence what we do the third time) and “context” (it’s got something to do with rain). Sometimes we understand these connections; sometimes we don’t. Nevertheless, we are constantly ex-posed to them. Obviously, what we’re talking about here is communication.

An emotional subjectCommunication is a hotly debated topic at Evonik Industries as well, especially in eco-nomically difficult times. For example, some question whether sponsorship is really nec-essary. Advertisements cost money—and are internal media really that honest? Then too, there are the nasty rumors that repeatedly ap-pear in the press. There’s no doubt that when communication itself is the issue, emotions quickly run high.

Nowhere is this so clearly demonstrated as in the varied feedback that Corporate Commu-nications receives every day through diverse channels that range from the Folio reader ho-tline and the corporate intranet to personal letters. “Our sponsorship of BVB is the most frequently addressed topic,” says Stefan Ha-ver, head of Internal Corporate Communica-tions. “That’s probably because support for BVB (Dortmund soccer club) or its arch rival Schalke takes on an almost religious character here in the Ruhr region especially.”

Fans may get excited about all of this, but for the Group it’s all about a simple pragmatic decision. “It’s crucial for a new brand like Evonik to quickly achieve a high level of name recognition and affinity,” says Markus Langer, head of Corporate Marketing. Langer agrees with the many experts who say that a company can be very successful in this area by partner-ing with a soccer club. That’s not just because the club and its sponsor are frequently seen on TV. It’s also due to the fact that the core tar-get group of financial and economic decision-makers are very interested in sports.

A look at the relevant figures shows that Evonik has been quite successful in this re-gard: The Group’s nationwide brand recog-nition in Germany now stands at 64 percent among people aged 25 to 54 with a monthly net household income of at least €2,000. One third of these individuals say they became ac-

quainted with Evonik through its sponsorship activities.

A study conducted by Technische Uni-versität Dortmund confirms that Evonik and BVB go well together, as the study’s survey of 3,400 soccer fans put Evonik and BVB in third place among all German premier league clubs and sponsors. The ratings were based on criteria such as seriousness, exclusivity, and emotional ties. The assessments of the pub-lic indicate whether a sponsorship program is achieving its objectives. Still, this and other examples show that a lot of convincing needs to be done to get executives to see the connec-tion between subjective opinions and objec-tive utility. This is as it should be, since like any other investment, professional communica-tion measures must stand up to an analysis of whether the costs they require are justified.

The opportunity for such an analysis was recently offered by a series of meetings held at major Evonik locations in Germany. “We talked very openly with participants at the meetings about their view of corporate com-munication activities, but we also explained clearly to them the constraints and demands we face in our daily work,” says Haver. The list of issues addressed at the meetings was long, ranging from events occurring at specific lo-cations to reviews of business operations at other units and the recurring topic of corpo-rate strategy. Among other things, this shows that along with content aspects, internal com-munication is also a question of common for-mats, structures, and processes.

Take Folio, for example. In order to reflect the variety of relevant issues at the Group and maintain a local feeling, the magazine is now published in 14 different regional, language, and country versions, all of which are incor-porated into the same online-supported ed-iting process. “This local approach creates a sense of nearness and brings the Group closer together,” says Haver. An important contribu-tion is made by the work done on “Evonik To-day” and the corporate intranet. Many isolated solutions in these media have since come to-gether to form a concise whole, sharing not only a standardized appearance but also edit-

ing processes, applications, and search func-tions. This success has resulted in much praise from outside. Nevertheless, for those respon-sible for print and online media, the high level of approval that Folio and the intranet have received from within the company is more important than any external benchmark or award. For example, some 90 percent of the employees recently surveyed described Group media as highly relevant, while 78 percent re-ported that they were satisfied with the infor-mation they are receiving via the two channels of Folio and the intranet.

So is everything perfect? Well, that’s not exactly the case either: “Many employees don’t like it when they see things about our company in the newspapers before they see them in our internal media,” Haver admits. He understands their annoyance, but also knows there’s no easy solution to the prob-lem. That’s because external journalists are more or less free to comment on events, while internal communicators are bound by clear reporting guidelines—and sometimes by re-strictions. Ultimately, anything published in-ternally or externally under the Evonik name also represents an official view of the Group. It’s therefore all the more important that In-ternal Communication (headed by Stefan Haver), Press (Barbara Müller), Marketing (Markus Langer), Public Relations (Inken Os-termann), the Executive Board Office (Erika Sticht), and Public Affairs (Wilhelm Schmidt) are consolidated into one unit and coordinate closely with the corporate management and the works councils.

Blurred boundariesThe boundaries between “inside” and

“outside” are in any case more or less blurred from the point of view of Corporate Commu-nications. And in the same way that many em-ployees get information about their company from the press and the media, journalists and other interested external parties use internal media to gain the knowledge they need.

In such a situation, credibility becomes a crucial issue, which is why it’s important for the company not to send out contradictory sig- >

“There’s practically no better example of successful communication design”Prof. Peter Pfeiffer, former chief designer at Mercedes and now President of the German Design Council, as quoted in the trade publication Absatzwirtschaft.

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Folio 11 | 2009


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Evonik utilizes a modular exhibi-

tion concept at the trade fairs it partic-

ipates in through-out Germany, such

as the Hanover Fair pictured here. The objective is a stan-

dardized brand pre-sentation that ben-efits the Group, its

Business Units, and its Business Lines

Evonik’s head of Marketing, Markus Langer, with the company’s latest ad design

Stefan Haver, head of Internal Corporate

Communications: “We create a sense

of nearness and bring the Group closer

together”

Folio 11 | 2009


nals and to ensure that all communications are cast from a single mold, so to speak—in terms of both form and content. This is where ex-perts begin to speak of brand identity and po-sitioning, brand design, and corporate design. These issues are the responsibility of the mar-keting experts who work for Langer. Among other things, they make sure the Evonik brand always presents the same image both inter-nally and externally, as this ensures that the brand will be quickly recognized and uniquely perceived. That’s why all corporate communi-cation media—including publications, covers, and packaging—are subject to binding style guidelines as laid out in the “Brand World.”

Key features here are the “clip” and the “Evonik Deep Purple” corporate color. As firm components of all ads, commercials, and brochures, they generate a strong pattern that makes Evonik communications unique.

This approach led to Evonik being included in the “Printed Ads Have an Impact” campaign organized by the Association of German Mag-azine Publishers (VDZ). In order to demon-strate the effectiveness of magazine adver-tising, the campaign shows unpublished ads from selected brands without revealing the company, product, or brand behind the ad-vertisement. The interesting thing is that anyone who looks at the ads knows immedi-ately who’s behind them; recognition occurs solely through the ad design. The campaign thus offers a perfect example of how a brand can establish a unique image. Evonik partici-pated in this campaign along with other exclu-sive strong brands such as Porsche, Deutsche Telekom, O2, eBay, and Milka. “There’s prac-tically no better example of successful com-munication design,” Prof. Peter Pfeiffer, long-time chief designer at Mercedes and now the President of the German Design Council, was quoted as saying in praise of Evonik by the trade publication Absatzwirtschaft.

A lot of people might think, “That’s great—now the time has come to put on the brakes in this area.” That’s understandable, given that in this era of revenue declines and short-time work, some people get rather sensitive—and rightly so—when the subject turns to budgets

for advertising and TV commercials. Langer is aware of this—but he’s also aware of many good reasons why the Group shouldn’t get too radical when it comes to achieving the nec-essary cost reductions in communications: “Especially in an economic crisis, it’s very im-portant for a brand to advertise, as this will determine whether it gains or loses market shares. In addition, advertising determines which brands will be in people’s minds when the economy picks up again. We know this to be the case from studies conducted during the last recession from 2001 to 2003.”

Courageous and innovativeThe instruments utilized for Evonik corpo-rate marketing range from advertisements and television commercials to the sponsor-ship activities mentioned above. The objec-tive is always to make the Evonik brand better known in a pleasant way. There’s good reason for this, as Langer points out: “A strong brand acts as an anchor that elicits trust, and it’s also been proven to enhance the appeal of a com-pany in the capital markets.”

Chief Human Resources Officer Ralf Blauth has a completely different target group in mind when he talks about commu-nications: “The Evonik brand has charisma, and this effectively underscores our attrac-tiveness as an employer.” To prove his point, Blauth describes how curious young people are to learn more about the company in Deep Purple. “Conversely, we also see that an at-tractive image as an employer, which Evonik possesses without a doubt, also enhances the value of the corporate brand.”

A jury put together by the renowned Tren-dence Institute found that Evonik has suc-ceeded in achieving an effective interplay be-tween its image as an employer and its brand presentation. The institute presented the Group with the Employer Branding Award this year in the category “Biggest Image Transfor-mation.” “Our analysis showed that this suc-cess was achieved through increased media exposure for the Evonik brand as a whole, and especially through the Group’s courageous, innovative, and in some cases polarizing HR

campaigns. These not only spread awareness of the brand practically throughout the entire market but also significantly enhanced its at-tractiveness,” says Trendence Managing Di-rector Holger Koch. “It’s been a classic suc-cess story.”

Courageous, innovative, and in some cases polarizing—those are just a few of the adjec-tives used to describe Evonik’s presentation of itself on the market. The company’s posi-tion as a creative industrial group is reflected in advertisements and commercials that put Evonik in a good light both visually and emo-tionally. Some of this involves being brash and bold; after all, attention is a scarce commodity that’s parceled out every day by the media.

Playing this game requires not only great effort but also a lot of money. Much of that money has been scaled back this year, as there are now fewer sponsorship projects, fewer ads, and less outlay for third parties. The num-ber of Folio issues per year has also been re-duced to ten. Overall, the communication budget has been cut by nearly 30 percent com-pared to 2008. Those who manage the bud-get say there’s no cause for alarm; the com-pany simply has to use the remaining funds more intelligently.

This is also the view of Ralf Hermann, Chairman of the Evonik Industries Group Works Council: “We need to use the entire range of communication options, since open and honest communication promotes coop-eration and identification with the company. Communication is thus an important compo-nent of Evonik’s corporate culture.”

Constant expectationsLess funding, constant expectations, new chal-lenges—the bar will remain high for Corporate Communications in the crisis year of 2009 and beyond. Evonik’s media channels and cam-paigns have received nearly 100 awards over the last five years. That’s more than any other industrial company. “This compels us to main-tain our performance,” says Communications director Christian Kullmann. This is especially true with regard to maintaining the same level of acceptance within the company, in accor-dance with the principle of advertising exter-nally and boosting support internally. The ef-fectiveness of communication at Evonik will continue to be judged in terms of the compa-ny’s ability to transmit key messages cast from a single mold. Whether it’s communicating strategies, dealing with the press, or manag-ing the brand—it’s always worth knowing if the desired answer should be “night rain” or “nigh train.” WK

“Open and honest communication promotes cooperation and identification with the company. Communication is thus an important component of Evonik’s corporate culture” Ralf Hermann, Chairman of the Group Works Council

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Folio 11 | 2009


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“Folio on site” in Marl. Employees at

11 locations expressed their

opinions about the employee magazine

The brand has a positive effect on Evonik’s reputation as an employer. In turn, the positive im-age held by employ-ees or the college graduates pictured here enhances the brand’s value

Folio 11 | 2009


Folio 11 | 2009

Do you remember this scene: A smil-ing young mother places her diapered baby into a small inflatable pool. The

baby has barely started splashing around when the mother hears a slurping noise. The water then disappears, completely absorbed by the baby’s diaper. This commercial, created to point out the impressive properties of mod-ern diapers, was aired to mark the launch of the Evonik Industries brand name. Today’s di-apers are in fact high-tech products that owe their exceptional features to superabsorbers produced by the Consumer Specialties Busi-ness Unit. The absorbers are made of meshed, water-insoluble polymers that can hold up to 500 times their weight in liquid without re-leasing it, even under great pressure. It’s not surprising that such performance led ad writ-ers to come up with the phrase: “It’s good to know that nothing comes out of our ideas.”

The sine curve appearsEvonik is one of the world’s leading manufac-turers of superabsorbers. Krefeld is the cen-

Water-tight businessA great product, satisfied customers, and a market with tremendous potential: The superabsorber business seemed simple until oil prices rose, completely changing the raw materials market. The Superabsorber Business Line responded with cost-cutting and reorganization measures—and more intensive key account management. Its success has been confirmed by awards presented to Evonik Industries by the world’s two major diaper manufacturers, Procter & Gamble and Kimberly-Clark

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Folio 11 | 2009

ter for European superabsorber production, while facilities in Greensboro (North Car-olina, USA) and Garyville (Louisiana, USA) serve the American market. The acrylic acid that is the basic ingredient for such absorb-ers is produced mainly in Marl and Deer Park (Texas, USA). The superabsorbers are sup-plied to several private-label customers, as well as the two major customers Procter & Gamble and Kimberly-Clark, which together account for two-thirds of the global market. Both of these globally operating companies presented Evonik with awards within a 12-month period: the Excellence Award (Procter & Gamble) and the Key Supplier Award (Kimberly-Clark).

Superabsorbers are great products that have satisfied many customers. Their market also offers great potential, as rising incomes in emerging markets are making diapers af-fordable to more and more people. While all this may sound like easy money, a closer look at superabsorbers shows not only how much work went into winning the aforemen-

tioned awards, but also exactly what key ac-count management really means—especially since the “sine curve” appeared, disrupting nearly everything that had previously been business as usual.

Although things weren’t perhaps always better in the past, profitable production of superabsorbers was definitely much easier. “We didn’t have to worry much about raw materials,” says Peter Petit, head of Sales and Marketing. “They were readily available, and prices remained stable and predictable for long periods of time.”

Minimizing risksThat was the case until oil prices shot up last year, which led to very big fluctuations in prices for acrylic acid and sodium hydroxide solution—as well as dramatic changes on raw materials markets. “Superabsorbers are spe-cialty chemicals, but the market acts as if they were commodities—large-volume products traded in accordance with certain specifica-tions,” says Petit. Prices here go up and down

like on a sine curve, which doesn’t make cal-culations easy. Of course, attempts are made to pass the raw material cost fluctuations on to customers as much as possible through the use of mathematical formulas, but there’s al-ways a time delay involved—and then there is the fact that enormous quantities are sold. “The problem is exacerbated because we are operating in a glutted market,” explains Dr. Stefan Nowicki, Key Account Manager for Procter & Gamble. This of course makes it harder to implement price increases. There’s also the problem of exchange rate fluctua-tions to consider. In such a situation, there was only one thing to do: “We had to learn to minimize risk even further,” Petit explains.

That’s why the unit launched its Superab-sorber 2010 project. In one sense, the project is a cost-cutting program for exploiting po-tential independently of, and in addition to, other corporate-level activities. At the same time, it involves a reorganization that will en-able the unit to better react to customer re-quirements and global business dynamics.

Today’s diapers are high-tech products—thanks to superabsorbers, which are water-insoluble poly-mers that can absorb and store up to 500 times their own weight in liquid


>“We’re becom-ing more and more like strate-gic development partners”Dr. Stefan Nowicki

Folio 11 | 2009

F O C U S O N S U P E R A B S O R B E R S

“All departments have been incorporated into the project—from Production and Develop-ment to Sales and Controlling,” says Petit. So has the drastic approach worked? “Yes—and we’ve already implemented between roughly 70 and 80 percent of our measures,” Petit re-ports. “Things are much better, but it still all depends on what part of the sine curve we happen to be on at any given time.” By this he means whether raw materials prices are ris-ing or not. Even more important, the Business Unit is taking steps to further strengthen the loyalty of its two most important customers. “We’re becoming more and more like stra-tegic development partners,” says Nowicki. Cullen Cooper, his counterpart in key account management at Kimberly-Clark, adds: “Inno-vations occur every three to four years in our sector, which means we can’t simply react; we have to be proactive.”

Greater storage capacityThe trend these days is to use less cellulose. One great accomplishment brought about by

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advances in superabsorber development is that diaper size and thickness have been re-duced by more than half, cutting their weight from the 100 gram level of the 1980s to only 45 grams today. It now only takes a few grams of superabsorber to make a baby’s urine “dis-appear.” Developments are continuing—mov-ing toward the goal of ultra-thin hygienic products that will improve comfort and re-duce packaging and waste. Achieving this goal will require a further increase in ab-sorbing capacity or a more precise matching of fluid distribution features to customer de-mands. The end result of foreseeable devel-opments will be superabsorbers with even higher storage capacities, making it possible to produce much thinner diapers that can be worn like ordinary underpants, while also al-lowing manufacturers to drastically reduce raw-material consumption. This in turn will lead to fewer production process steps and lower manufacturing and transport costs. Soon, in fact, we won’t be able to distinguish between a diaper and a pair of underwear.


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Nowicki explains the impact this will have on industrial customers and retailers alike: “It will be possible to simplify production and reduce raw material flows. In addition, smaller products take up less storage space and reduce handling and transport costs—and they require less shelf space in stores, so retailers can generate higher sales per oc-cupied area. All this will be due to improved superabsorbers.”

Living with the customerKey account management is about more than conducting research. It also involves staying focused and channeling resources toward those customers that account for the best busi-ness deals. That means visiting such custom-ers as often as possible and developing and refining a feeling for optimizing the relation-ship to the benefit of both parties. “This can begin with batch sizes and extend all the way beyond warehousing concepts,” says Cooper. “We live with our customers. For example, when it’s hurricane season in one area and

operations shut down, we help them step up production at other factories.” Adds Nowicki: “We even go so far as to make our customers aware of impending problems that have noth-ing to do with superabsorbers.”

It’s good to know that the customer ap-preciates such cooperation. This was evident to all when Dr. Johannes Ohmer, head of the Superabsorber Business Line, was presented with Procter & Gamble’s Excellence Award 2008 at a company conference in Cincinnati (Ohio, USA), to which 350 of a total of 80,000 suppliers were invited. Just a few months later, Ohmer traveled to Dallas (Texas, USA), where Kimberly-Clark CEO Tom Falk described co-operation with the Superabsorber Business Line as “exemplary” and honored it with the Key Supplier Award 2008. The award was in recognition of the Business Line’s very in-novative product developments, high qual-ity standards, reliable delivery performance, and first-class service.

Ohmer described the award as both a validation and an incentive: “Consider-

ing the challenges we are facing during the global economic crisis, this award indicates very clearly how important it is to be a reli-able partner, act with future requirements in mind, and respond flexibly to the changing demands that are part of our everyday busi-ness. In addition, continual innovation is one of the important determinants of long-term success and a key foundation for the estab-lishment of a sustainable, forward-looking customer-supplier relationship.” CP

Andrea Burzinski (at left) uses a stopwatch to measure how quickly a diaper absorbs liquid. This is just one of many tests that application technicians carry out to further improve superabsorbers. In the photo at far left: Dr. Stefan Nowicki (at left) and Peter Petit (on the right), with production manager Armin Reimann

Babies can now sleep even more peacefully


_ Before we start, we should define our terms. Mr. Engel, what does creativity mean to you?Engel: Well, there’s what you might call the pure definition of the word: Creativity is the ability to think creatively. This requires the in-teraction of both halves of the human brain. Order, regularity, and logic are based in the left half, and collateral thinking in the right half. However, just like intelligence, creativ-ity can’t be measured. If it were possible, we’d be able to say to a person, “Could you please be creative.” However, one definite characteris-tic of creativity is the fact that it seldom func-tions at the press of a button. Gorny: In my opinion, creativity is essentially the ability to create something new. But that also depends on an awareness of individual choice. The team is important but only plays a supporting role. Creative processes are in-dividual processes._ Evonik Industries also describes itself as “the creative industrial group.”Engel: We chose that phrase deliberately, because we realized early on that the world around us is going through tremendous changes in many areas. The Group can react successfully to these changes only if empa-thy comes into play and we anticipate certain things: Where do we stand as individuals, as a group, as a company? We have to ask our-selves, “What will drive the world in the fu-ture, what are the megatrends?” After we have answered these questions, we can de-cide what contribution we wish to make. As an industrial company we have an obliga-tion to commercialize our creativity and uti-lize it in order to generate economic value. We have to create jobs and ensure prosper-ity by making sustainable profits. This pro-cess also demands creativity. A business must constantly scrutinize itself. If you fail to do that, you lose.

As far as the question of whether the im-petus comes from the individual or more from the group, I believe that it can come from both. I often get very good ideas in re-laxed moments. On the other hand, I try to make it clear to the employees that we work

“We can’t rely on individual strokes of CEO meets cultural manager: Dr. Klaus Engel talks with Prof. Dieter Gorny, one of the artistic directors The discussion was hosted by Manfred Bissinger

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in a very complex environment and have to mobilize all of our creative resources. And that includes group work. I try to facilitate these processes. We can’t rely on individual strokes of genius alone, no matter how im-portant these can sometimes be. Gorny: Yes, Mr. Engel. A team is often a pre-requisite. I consider it to be the humus that al-lows creativity to grow at all. Individual im-pulses must then also be returned to the team. As a musician, I am somewhat biased here. My composition teacher had a nice saying that he used in class, “Don’t hold someone responsi-ble for ideas that you don’t have.” So for me creativity also means relying on your own capabilities and sense of responsibility. This means more than just a Gyro Gearloose-type effect; it also means recognizing something particular in a certain situation and taking that back to the team while at the same time as-suming responsibility for it. _ Mr. Engel also mentioned the economic constraints.Gorny: I think that in the economic environ-ment you described, Mr. Engels, which is sub-ject to such powerful changes, teams in which individual creativity is allowed to develop are absolutely essential. Boosted by the creativ-ity of the individual members, these teams have a key role to play in making a company more flexible and enabling it to react more quickly. If we can’t do that, we won’t survive economically. _ Sometimes creativity is portrayed as being a barrier to economic success. Gorny: On the contrary. It is one of the basic requirements for ensuring long-term pros-perity in this Western world with the prod-ucts that we still have and the markets that we still dominate. Engel: I consider it important to think of cre-ativity as a mental attitude and to train it ac-cordingly. Sometimes we have to move into new territory and fight against existing bar-riers in our minds if we want to further our development. Especially today, however, creative solutions also have to conform with compliance aspects, as contradictory as that may sound.

“It’s important to have confidence in your own abilities”Dr. Klaus Engel

genius” of the European Capital of Culture 2010, about creativity and the Ruhr region’s future.

_ Mr. Gorny, you’ve dreamed of turning the German federal government into a Big Band. Could you do the same thing with Evonik? And what instrument would Mr. Engel play?Gorny: Mr. Engel wouldn’t play an instru-ment, Mr. Engel would be the conductor. However, I would work hard to ensure that he got a feel for how thin the dividing line be-tween the orchestra and him really is in or-der to deliver top performances. This effort would create a process characterized by ex-emplary behavior on the one hand and cre-ativity on the other. There is hardly a better example than music when it comes to help-ing people understand how order and free-dom have to work together to create some-thing great. It’s a mixture of sticking to the notes and being inspired._ Do you have role models against whom you measure yourself or who you use for orientation? Or, to put it another way, can creativity be learned?Gorny: There were people who helped me to grow. Regarding your question of whether cre-ativity can be learned, I basically believe that you can’t learn to come up with good ideas. However, you can learn to establish the condi-tions required to get ideas. Getting back to the two halves of the brain, I believe that the key is thought training—in other words, stimulat-ing those regions that normally might not be pushed too hard. The pressure to do this will in-crease due to the growing need for more agility, which will also affect large companies.Engel: I agree completely, although when it comes to role models, we have to be careful not to set the bar too high. As young men and women we are inquisitive and bold; there is a desire to violate boundaries and test our lim-its. What I’m trying to say is that if we strive to be like Beethoven or Picasso in terms of cre-ativity, our own self-doubts will impede us. I consider confidence in your own abilities to be a major prerequisite for creativity.

_ What does that mean for corporate management?Engel: We just witnessed the power of the slo-gan “Yes, we can” during the American pres-

In this section, Folio publishes an irregularly scheduled series of discussions between CEO Dr. Klaus Engel and various public figures. These discussions provide a broader perspec-tive and document the intense involvement of Evonik in current issues from the areas of busi-ness, science, politics, and society. Dr. Engel recently met Prof. Dieter Gorny for the first of these talks. Gorny, a musician, is the Artistic Director of RUHR.2010 GmbH, founder of the music channel VIVA, and one of the initia-tors of the music trade fair Popkomm. Along-side his present position on the Board of Direc-tors of the European Capital of Culture 2010, where he is responsible for the “City of Cre-ativity” theme, he is also the Executive Chair-man of the Trustees of the NRW Film Founda-tion and head of the German music industry association Bundesverband Musikindustrie.

HEAD TO HEAD

_ …which leads to the question of whether Evonik is organized in such a way that creativity can be generated and then also implemented?Engel: Large organizations certainly some-times suffer from an insistence that change is undesired. But you have to fight against that. A great deal of creativity was required just to make Evonik a reality. I see a bit of our roots there. Our brand claim “Power to Cre-ate” and our self-identity as the creative indus-trial Group are not mere words: that is reality. In the last five years, we have bought and sold companies for more than €10 billion, mean-ing that we have undertaken very, very sub-stantial changes. That doesn’t work if you have no ideas.

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Folio 11 | 2009


idential campaign. Emotions are also impor-tant. As is belief in your own strengths._ The psychologist Prof. Erich Fromm said, “Creativity demands the courage to say goodbye to certainties.” Do you agree with that?Engel: Completely.Gorny: I know few people, however, who un-derstand that sometimes you have to give up old certainties in order to reach new ones._ Mr. Engel, Mr. Gorny, you both live in the Ruhr region, an area that seems to have a propensity for attracting opposites. Heavy industry on the one hand and widely diverse culture and creativity, with great theaters, museums and universities unmatched anywhere else in Germany on the other. Does one require the other, and does each side inspire the other?Gorny: Unlike other locations in Europe currently undergoing deindustrialization, we are blessed to still have industry. That is sometimes viewed critically, but it is a true gem. We may have lost our steel and coal heritage, but we are working on establish-ing a new one. Engel: That’s one aspect; the hardware, if you will. But what really makes us strong is the software behind it: the openness of the Ruhr people, their directness, their curios-ity, and their ability to integrate.Gorny: Yes, it makes us strong, but we have to talk about it much more. The things that we feel inside are not automatically con-veyed outward._ Will it help that the Ruhr region is a 2010 European Capital of Culture?Gorny: That is our big chance. The fact is, tremendous things have been accomplished

in the Ruhr region in recent decades as part of the structural transformation. There is no higher density of museums, concert halls, opera houses—no higher density of culture anywhere in Europe. The European Capi-tal of Culture that simply says, “I am doing this to build on what’s already here,” is do-ing too little. The European Capital of Cul-ture has to make people aware of what is already there and strengthen the sense of community. In my opinion, the only way to achieve these objectives is through a broad-based debate. How can we gain access to new markets, while also promoting the concen-trated cultural power of a giant population center? Internationally, we will have to mar-ket the Ruhr region as a whole, otherwise we have no chance against leading European cit-ies like Amsterdam, Paris, or London. At the same time, we have to put our faith in those who are already living out this approach—in other words, the young target group. And that explains the emphasis on the creative economy.

It’s not just about the museums anymore; to-day it’s the Fashion Week that calls the tune. Designers, researchers, young entrepre-neurs—these are the people creating a cli-mate in which something new can develop. They represent all of these unstructured or seemingly open processes—in other words, creativity. And we’ll have to continue to bring in new impetus from outside beyond the year 2010.Engel: I see things similarly to Mr. Gorny. First, the European Capital of Culture is a gi-ant opportunity. We have to overcome the feudal elements that exist in our country and are also manifested in the Ruhr region. I think that we are on the right track. Good ex-amples can be found at the universities, the hospitals and also in the artistic realm. We can’t have every community trying to estab-lish its own state opera. That doesn’t make economic sense, nor is it in any way help-ful. We have to get together; we have to say, “What makes us strong as people, as charac-ters, and how can we put that into something tangible?” We are going up against Berlin or Munich. We have to get the people on our side. The European Culture of Capital will not get all of the projects implemented, but what I have seen or heard already is very im-pressive and will have an impact far beyond the region. Gorny: And that’s the point. To achieve af-fects outside the region. As a patriot, I can say that there is hardly a place in Europe that is more exciting than the Ruhr region._ And finally, a quote from a great manager from the Ruhr region. “Having shared values is one thing, but putting these values into practice is another.” Can this observation help the European Capital of Culture become a success?Engel: If things are done well, the effort will have been worthwhile and the people will identify even more strongly with their region…Gorny: …and underscore the realization that we produce unique culture._ And there will be even more room for creativity.Gorny: We can no longer tolerate this typi-cally German separation of culture, art, and the economy. They have to fuse together in a positive sense. Simply put, we want to build a metropolis; the topping out ceremony is next year. But we have to build it so that the people can move in quickly but still have money for the rent. If we can do that, we’re good.Engel: Mr. Gorny, we at Evonik will be glad to help.

Moving into new territory and fostering creativity: A talk featuring Dr. Klaus Engel, Dieter Gorny, and host Manfred Bissinger

“The Capital of Culture has to strengthen the sense of community”Prof. Dieter Gorny

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H E A D T O H E A D


I

The solution is a chemical, which is the decisive factor behind the quality of optical fibers:

The letters of the correct answers make up the solution. There are two ways to enter the competition: either by sending a postcard to Evonik Industries AG, Folio-Quiz, Postfach 10 32 62, 45117 Essen, Germany, or sending an e-mail (don’t forget your postal address!) to [email protected]. The deadline is December 10, 2009. Participation is limited to employees of Evonik Group companies.

Whales breath under water through their gills.

The football team Borussia Dortmund won the Champions League in 1997.

OXTERIL produced by Evonik makes milk cartons germ-free in an environ-mentally friendly way.

In diapers, Evonik’s Su-perabsorber can absorb up to 500 times its own weight in liquid.

In Germany, direct current comes out of electrical sockets.

Dirk Nowitzki plays soccer for the Seattle Seahawks.

Now all you have to do is enter the letters of the answer into the boxes in order.

With a height of 139 me-ters, Kingda Ka is the tallest roller coaster in the world. L

APrague is the capital of Poland.

True

False

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It is estimated that one Google search produces the same energy costs as lighting an 11-watt energy-saving lamp for an hour.

Prof. Dieter Gorny is responsible for the “City of Creativity” theme in the European Capital of Culture project.

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1 2 3 4 5 6 7 8

The pathogen that causes swine flu is a H1N1 influenza virus.

Bosporus is the only type of co-nifer that grows close to the equator.

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Rally puzzle Check out the following statements: true or false? The right answers will lead you from start to finish by way of eight letters. Read in order, they spell out the answer

You could win:In every issue of Folio we will be drawing the winners of four Apple iPod nanos with 8 GB of storage capacity from the employees worldwide who send in the correct solution.

Congratulations! The solution to the quiz in Folio 09/2009 was EURO-PLEX. The winners will be published in “Evonik today.”

Four entrants with the right answers will receive iPods

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Alexander Graham Bell invented the Internet.

OR

LED is the abbreviation for Light Energy Drinks.

The 2009 Nobel Prize for Literature went to Barack Obama.

Procter & Gamble pre-sented the business line Superabsorber with the “Excellence Award 2008”.

Italy has the world’s highest density of volcanoes.

Pepper be-longs to the vine family.

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Folio 11 | 2009

Q U I Z


“I’m simply me”How would you describe your home city of Maastricht (Netherlands) in a single sentence to a colleague from a different foreign location?Maastricht is a historic and beautiful city bordering Belgium and Germany. It’s got a very lively atmosphere thanks to its international character.

What will you always remember about your first day on the job?Oh, that’s already 18 years ago. I remember being very nervous, although there really wasn’t any reason to be, as I immediately felt welcome as a member of the “Colortrend family.”

What advice would you give to a trainee on his or her first day at the company?Don’t be afraid to ask questions—it’s the fastest way to get to know all aspects of the company.

What’s the most important lesson you’ve learned in life?Seize the day—life is short.

Which lesson would you rather not have had to learn?You can learn something from every lesson. If you add them all together you have “life experience.”

If you had €500 to spend as you like, what would you buy?A weekend with my boyfriend. We’d play golf or go scuba diving.

As a kid, who did you want to be like?…me—and I’m happy that I’ve turned into “me.”

You are giving a dinner party and can invite whoever you like. Who’s coming to dinner?My closest and best friends and my family.

You never leave for work without……my mobile phone and music in my car to sing along to.

Whenever you come home really tense, what’s the fastest way for you to relax?I cook dinner and talk to my boyfriend.

What do you like best about the people in Maastricht?Nearly everyone here speaks two or more languages, and the people are pretty laid back.

What is the last experience that left you speechless?The cold weather we hadhere last January.

We all have our little self-indulgences. What’s yours?Scuba diving, golf, and shopping for shoes. A woman can never have enough pairsof shoes!

MY NAME IS

Suzan KosterGROUP COMPANY Evonik Colortrend B.V., MaastrichtPOSITION Product ManagerNATIONALITY DutchAGE 38PLACE OF RESIDENCE Maastricht (Netherlands)MARITAL STATUS In a happy relationship

… I could never have enough shoes!

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