When I signed up to go on this trip there were a few in my family that may have had some doubts as to the validity of this exercise. "Studying family businesses in Germany? Sound more like something you say to justify buying a month -long Eurorail pass." But after toda's visit to Merck headquarters in Darmstadt I can assure all parents, spouses and mother-in-laws that we are getting some amazing exposure to corporate governance education.
Today we spend 5 hours at Merck, starting with a lengthy discussion with a high ranking member of their Family Board, Mr. David von Klackreuth. He generously flew down from northern Germany to spend the day with us and share Merck's story of success over the past 12 generations of chemistry and pharmaceutical dominance in Europe and internationally. There are over 219 members of the Merck family that are actively holding shares. These family members own 70% of the company's value. Not bad for a company that had sales of $7.6 billion in 2008. In fact they are so big, that even with only 30% trading out in the market they are still part of the DAX (Deutche Exchange) Top 50 index.
Merck headquarters cover over 1.2 square kilometers and just at this site alone there are over 8000 employees (over 32,000 worldwide) and 450 buildings, some dating back to the 18th century. The scope of the company is vast adn it seemed like every time we went somewhere they told us of another innovation they had discovered or implemented to become more effective or efficient.
The tour of their warehousing facilities for potentially dangerous chemicals was a highlight for me. You'd think we'd be in danger but the warehouse is almost completely automated. They have six stories of warehousing where each combustible chemical is separated from the other potentially bad chemicals and these automated forklifts come and select just the pallet they need. It's right out of science fiction novels. By being automated they mitigate most of the risk for employees too.
Merck's products have an impact on our daily lives that I had no awareness of too - whether it's cancer treating beta blockers, or liquid crystal manufacturing for our cellphones or even cosmetics or vitamin C, the company seems like they do most everything.
In the end though it was the family, the values that they embody, and their vigilance to those values remaining the backbone of corporate culture over 12 genreations that impressed me the most. Their approach precipitates life long loyalty with employees and pride in work that seems missing from north american companies looking for increasing their quarterly returns.
We weren't allowed to take pictures anywhere, but we did get one photo with Mr. von Klackreuth and the "A" + group. I suppose sometimes family secrets are best kept when they are held as treasures and shown only in rare moments. We felt like we got a glimpse of that today.
Today we spend 5 hours at Merck, starting with a lengthy discussion with a high ranking member of their Family Board, Mr. David von Klackreuth. He generously flew down from northern Germany to spend the day with us and share Merck's story of success over the past 12 generations of chemistry and pharmaceutical dominance in Europe and internationally. There are over 219 members of the Merck family that are actively holding shares. These family members own 70% of the company's value. Not bad for a company that had sales of $7.6 billion in 2008. In fact they are so big, that even with only 30% trading out in the market they are still part of the DAX (Deutche Exchange) Top 50 index.
Merck headquarters cover over 1.2 square kilometers and just at this site alone there are over 8000 employees (over 32,000 worldwide) and 450 buildings, some dating back to the 18th century. The scope of the company is vast adn it seemed like every time we went somewhere they told us of another innovation they had discovered or implemented to become more effective or efficient.
The tour of their warehousing facilities for potentially dangerous chemicals was a highlight for me. You'd think we'd be in danger but the warehouse is almost completely automated. They have six stories of warehousing where each combustible chemical is separated from the other potentially bad chemicals and these automated forklifts come and select just the pallet they need. It's right out of science fiction novels. By being automated they mitigate most of the risk for employees too.
Merck's products have an impact on our daily lives that I had no awareness of too - whether it's cancer treating beta blockers, or liquid crystal manufacturing for our cellphones or even cosmetics or vitamin C, the company seems like they do most everything.
In the end though it was the family, the values that they embody, and their vigilance to those values remaining the backbone of corporate culture over 12 genreations that impressed me the most. Their approach precipitates life long loyalty with employees and pride in work that seems missing from north american companies looking for increasing their quarterly returns.
We weren't allowed to take pictures anywhere, but we did get one photo with Mr. von Klackreuth and the "A" + group. I suppose sometimes family secrets are best kept when they are held as treasures and shown only in rare moments. We felt like we got a glimpse of that today.
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