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Case Study

Grundfos (B): “Solved in a better way”

By Peter Vogel and Colleen Lief

8 pages

June 2023

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Reference: IMD-7-2375

Without much family discussion, PDJ put majority ownership of Grundfos into the Poul Due Jensen Foundation in 1975. His family would receive a 15% stake in the company. This ownership stake was important, since by Danish law, the company could be sold if family ownership fell below 10%. The 8-member foundation board would oversee the company’s long-term strategy and apply its Grundfos dividends to philanthropic pursuits – water, research and social inclusion. The Due Jensen family held 4 seats; the remaining board members were chosen for their expertise. Day-to-day operations at Grundfos lay with its corporate board. PDJ died soon after this, and Niels became CEO of Grundfos. He focused on innovation, technical excellence and new product development. In 2012 Danish law changed its governance approach. The foundation board expanded to 12 members to accommodate 4 employee representatives, and the family’s voting block fell from one-half to one-third. After 2nd generation Niels retired as CEO in 2003, three non-family CEOs held the role. Niels’ son, Poul, was chosen as CEO in 2020. Grundfos had become the world leader in water pump technology, with a large workforce, a presence in 59 countries and significant revenues. Increasingly, the company leveraged the life-saving impact of its products, and its humanitarian efforts were widely recognized. Over time, family members seeking liquidity sold shares to the foundation, bringing the family’s ownership stake in Grundfos to under 10% and raising the possibility of a sale. Individual stakes now ranged from 0.15% to 3.96%. The 4th generation of this small family had fewer interactions with Grundfos than previous generations. There were internships, special projects and participation in company events, but no pressure to work there. Grundfos has grown beyond what many may consider a family business and ownership is mainly with the foundation. But its focus on building a healthy and sustainable business is still rooted in its founder’s values.

Learning Objective

Does this change the nature of the business? Is it still a family business?
Pros and cons of bringing a family member back into the leadership of the business.
Discussion of the future role of the family as ownership further diminishes

Keywords

Family Business, Sustainability, Foundation, Ownership, Succession, Award, Clean Water, Sanitation, Climate Action

Settings

Europe, Denmark
Grundfos, Services, Water Supply and Sanitary Services
Foundation until today

Type

Field Research

Available Languages

English

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This case study is part of a series

Grundfos (A): “Be, think, innovate”
Grundfos (B): “Solved in a better way”

Selected for the 2024 Schlesinger Global Family Enterprise Case Competition

This case study is part of a series

Grundfos (A): “Be, think, innovate”
Grundfos (B): “Solved in a better way”

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Co-CEOs at Handtmann: Can the family business be led in tandem? (B)

By Peter Vogel and Anouk Lavoie Orlick
Case reference: IMD-2656 ©2025

Summary

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the President of the Advisory Board – the case focuses on how Handtmann handled the leadership transition to the next generation. In Case B of "Co-CEOs at Handtmann: Can the Family Business be led in Tandem?" the focus shifts to the next generation. Markus Handtmann and Valentin Ulrich, cousins from the fifth generation of the founding family, have been appointed as co-CEOs. They must now learn to work together in tandem. The president of the advisory board, who is the father and uncle of the new CEOs, respectively, has stepped down from leading the company and now embraces a supporting role. Case B explores strategies for designing effective co-leadership partnerships. It also highlights the importance of complementarity in successful tandems. Lastly, the case presents the foundational elements that enable co-CEOs to succeed in family firms.

Reference IMD-2656

Organization Handtmann Group

Industry Construction and Engineering, Industrial Engineering;Manufacturing, Machinery

Available Languages English

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Co-CEOs at Handtmann: Can the family business be led in tandem? (A)

By Peter Vogel and Anouk Lavoie Orlick
Case reference: IMD-2655 ©2025

Summary

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the president of the advisory board – the case focuses on how Handtmann handled the leadership transition to the next generation. Starting with a history of the five generations at the head of Handtmann, Case A offers a window into the succession process of a well-established European family business. The case analyzes the potential risks and rewards of appointing co-CEOs in a privately held family business. From a governance perspective, the case assesses how organizational culture, governance systems and ownership structures contribute to creating a conducive environment for co-CEOs to thrive. Established in 1873 as a brass foundry, Handtmann has evolved into a global technology company that employs 4,300 people, with 2,700 based at its headquarters in Biberach an der Riss, Germany. Handtmann offers highly specialized production and services to clients in the automotive industry, the chemical and pharmaceutical industry, among others. It is also the world leader in the manufacture of fillings and portioning systems for the food industry and a leading supplier of fittings and process systems for the beverage industry. More recently, the Group has also ventured into the development of electronic systems. The business has remained under the stewardship of the Handtmann founding family for 150 years.

Reference IMD-2655

Organization Handtmann Group

Industry Construction and Engineering, Industrial Engineering;Manufacturing, Machinery

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

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Family Business

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