Heidelberger Druckmaschinen announced a few days ago the replacement of
CEO Rainer Hundsdörfer with
Dr. Ludwin Monz as planned April 1st, 2022. It's not a secret that our relationship with Heidelberger Druckmaschinen and Rainer Hundsdörfer isn't good - Heidelberger Druckmaschinen have taken legal actions against INKISH. I will, however, still wish Hundsdörfer all the best when he retires after being CEO of one of the most challenged companies in the industry.
Heidelberger Druckmaschinen is today a different company, and though Hundsdörfer today is the CEO, I believe that most of the more radical changes were announced after
CFO Marcus Wassenberg joined the company. Wassenberg and Hundsdörfer have changed Heidelberger Druckmaschinen forever by eliminating products and product lines, by selling off various business units, and strengthening the company's finances. Smart moves, smart financial maneuvres, and a strong focus on cash flow, debt, and trimming the organization are just a few of the ingredients that will be left to the new CEO, Dr. Ludwin Monz.
Does this mean that Dr. Ludwin Monz will have an easy job? Absolutely not. Sorry to say, but Heidelberger Druckmaschinen fights competitors like Koenig & Bauer, Komori, manroland sheetfed, and others that, in many ways, seem to be more aligned with the needs in the market. With a clear(er) digital mindset, corporation with stronger digital counterparts, and where Heidelberger Druckmaschinen have downsized, the competitors seem to grow, thrive, and have a competitive appetite.
The offset market that Dr. Ludwin Monz must address is decreasing, and overhead costs at both Heidelberger Druckmaschinen and their competitors are tremendously high. They will most likely still need to be adjusted downwards, and how low can you go without jeopardizing the need for R&D, servíce, support, and supply chain? Will Heidelberger Druckmaschinen need to produce more and more in China to keep costs down, and will that eventually lead to not being a German industrial beacon over time?
I don't know Zeiss, but I think of the company as a company with high standards and most likely a corporate culture entirely different from Heidelberger Druckmaschinen. If just a few of the rumors and gossip you hear about the Heidelberger Druckmaschinen culture are true, Dr. Ludwin Monz will have a lot of work in Wiesloch changing the culture, setting a new and my mind very needed new mid-management. I also believe Heidelberger Druckmaschinen will have to focus on digital as well. Regardless of the challenges, the Primefire must have caused Heidelberger Druckmaschinen - digital, and inkjet is a path a company like Heidelberger Druckmaschinen must excel in. I suggested years ago that Heidelberger Druckmaschinen and Xerox should merge - maybe more needed for both companies today than ever?
Whether Hundsdörfer will be remembered as a good or bad CEO for Heidelberger Druckmaschinen depends on what objective he was employed to handle. A friend once asked me what I thought about the management in the company I worked for. My answer is the same for Hundsdörfer. The only way to judge this is to compare what objective he was given when he was employed. Hundsdörfer comes with an engineering background, and in some companies, this is seen as a strength. Engineers are still needed, but top management is about bridging technology, market, customers, organization, finances, and a nose for the next big thing. It will be exciting to see if Dr. Ludwin Monz got a nose for the industry. The good thing is that he comes from outside our industry. The bad thing is that he comes from outside our industry, and his success will be measured against how good and fast he will learn the industry and set the right team. It has taken some time to find Hundsdörfers replacement, and for good reasons. Heidelberger Druckmaschinen is unfortunately NOT the beacon it used to be, and the challenges are tremendous.
So what do I expect will happen. I expect that CFO Marcus Wassenberg will quit his job shortly after the general assembly in the summer of 2022. He can, with pride, withdraw from Heidelberger Druckmaschinen, and as the first CFO, in my opinion, take some of the steps needed to at least give Heidelberger Druckmaschinen a chance in the future.
Has the journey that has converted Heidelberger Druckmaschinen been pretty - well, that will be something for the future to judge.
Congratulations to Heidelberg customers. The stock market has already given Dr. Ludwin Monz a tailwind upon the announcement of him replacing Hundsdörfer. Now Dr. Ludwin Monz needs to deliver, and we can't wait.
Will this change the relationship between INKISH and Heidelberger Druckmaschinen? Well - I don't expect it, and as the Americans say - nothing is over before the fat lady sings, and the music has only just started!
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