ABSTRACT
Leaders establish a relationship of mutual trust, shaped by respect and tolerance. Conflicts are openly addressed in an objective and factual manner. Fritz Henkel’s open inclusive traditions reflect the humanistic worldview and vision of its founder which was to “make people’s lives easier, better and more beautiful.” Henkel emphasized the inspiring management by means goal of reducing its adverse impacts rather than the more stressful management by results goal of having to grow sales at an accelerated pace. Henkel’s ability to surpass the Factor-3 objectives of its first five-year plan was largely due to substantial progress made on its safety, health, and environment goals. Henkel’s capacity to meet and surpass its first five-year Factor-3 goal owes much to its culture of clarity and transparency. The story of Henkel’s entry into the adhesives business offers deeper insight into its culture of openness and entrepreneurship, which has enabled it to adapt and reinvent itself with remarkable speed.
