Rüdiger Schmitz

In this interview, Tom Hulme speaks with Rüdiger Schmitz, Senior Business Advisor and former CCO of Loparex. Rüdiger shares insights from his diverse career across listed corporations, private equity-backed firms, and family-owned businesses. He discusses the challenges of leadership transitions, the keys to driving successful business expansion, and the evolving landscape of the chemicals and plastics industry. Drawing from his experience at Volkswagen, BASF, Trinseo, and beyond, Rüdiger highlights the importance of adaptability, cultural awareness, and digital transformation in modern leadership.

Tom: What were the biggest challenges in going from listed businesses to working for private equity-backed organisations and then family-run businesses? That’s quite an interesting dynamic, and not many people have experience in all those different environments.

Rudiger: In listed businesses, I usually worked for larger companies, and at least in the environments I was in, managing a business was often more about navigating internal politics than being truly entrepreneurial. Large corporations claim to foster entrepreneurship, but due to their sheer size, decision-making involves many layers and numerous stakeholders. You have to work across multiple departments and convince various individuals before you can implement a decision.

This is quite different from mid-sized or smaller companies, where there are fewer decision-makers, and the process is much faster. You also don’t have to deal with as many political dynamics. However, in smaller companies, you have to be more hands-on. In large corporations, you have an entire team supporting you, but in smaller ones, you often have to execute things yourself. That means you need real expertise, not just theoretical knowledge. In large companies, you might have entire marketing departments doing the work for you, but in smaller companies, you must have the competence to handle things yourself.

Tom: What were the most pivotal moments in your career that shaped your leadership approach?

Rudiger: This connects to what you asked earlier. There were a few key moments. First, leading a business at BASF taught me the importance of balancing strategic vision with operational excellence. Large companies focus more on long-term positioning, whereas in smaller or private equity-backed companies, the emphasis is often on short-term performance—sometimes looking just at the next quarter.

Later, driving a successful transformation at Trinseo reinforced the value of clear communication and accountability. And during my time at Loparex, navigating a major market shift highlighted the need for adaptability and resilience. The business landscape has changed significantly in the last four years, especially post-COVID, making adaptability more critical than ever.

Every role I’ve taken on required a mix of familiar and new competencies. You must constantly learn and develop new skills to master the challenges you face in different environments.

Tom: It’s a really good point, and it kind of leads to my next question, which is all about how you’ve led global P&Ls in big multinational organisations. You’ve had success in expanding market share and driving M&A integrations. Can you provide some insights on what the key factors are in making a business expansion successful into new markets?

Rudiger: Well, first, you need a clear, deep understanding of the markets. Don’t get driven by emotions or just follow the mainstream—it doesn’t work. I think success in business expansion hinges on deep market analysis, clear strategic alignment, and flawless execution—these three elements. In M&A, integration planning must start early and must focus on cultural alignment. I experienced this twice—clear roles and synergies, particularly building trust with stakeholders and maintaining agility to adapt to unforeseen challenges, are equally important. These, for me, are the key factors in achieving successful business expansion.

Tom: Thank you, that’s really good. Now, looking at the wider sector—specifically chemicals and plastics—you’ve also had experience in the paper industry, but let’s focus on the chemicals and plastics industry. How do you see that industry evolving in the next five to ten years?

Rudiger: That is the million-dollar question. Certainly, I have a few thoughts about this. Chemicals, and particularly plastics, in the last few years, have been widely criticized. You see plastic waste in rivers, seas, and everywhere—there’s microplastic in animals and food. That might all be true, but I’d like to make a statement here: chemicals, or plastics in particular, are not inherently bad. The issue is how human beings handle plastic. In some countries, there are systems in place where plastic bottles are returned and recycled instead of being thrown into the environment. The biggest issue we face is people’s behavior—whether it’s a plastic bottle or another plastic-related item—carelessly discarding waste into nature. However, you cannot teach three or four billion people how to behave differently overnight.

I think the industry needs to shift its mindset and work on improving plastic’s reputation. There are a number of things that can be done. In my last job, we focused heavily on sustainability. I foresee increasing pressure for sustainability, particularly in Europe. I’m not sure about the US, depending on the new government, but let’s focus on what we have control over here. Regulation and customer expectations will drive this shift. In the past, sustainability was more about regulation and lip service, but now, with the growing awareness of plastic pollution, end consumers expect real action.

There are many ways to address sustainability, starting with the raw materials used, promoting circular economies, and more. Financially, while sustainability initiatives come with added costs, they can be profitable because consumers in certain markets are willing to pay for environmentally friendly options. If we can keep our environment cleaner and more sustainable, people will see the value.

At the same time, digitisation and artificial intelligence (AI) will enhance efficiency and customer engagement. Companies that can innovate in these areas while maintaining profitability will emerge as leaders. My advice to people is: don’t fight against AI or digital trends—embrace them. Some industries, like Amazon and Meta, have leveraged these technologies for years to become more efficient and profitable. The chemicals and plastics industry, and manufacturing industries in general, tend to be more conservative and slow to adapt because any major shift requires significant investment. Unlike digital businesses, manufacturers can’t just switch strategies in one or two months—it takes time and must be sustainable. That’s why B2B industries are often slower to change compared to B2C.

Tom: You touched on AI and digitalisation before. Given the roles you’ve had, what elements of your role would have benefited from better digitalisation or AI availability?

Rüdiger: We had less AI but more digitalisation. For example, in manufacturing, I worked in environments where manual labor was prevalent. At my last company, the average age in manufacturing was around 50, and over time, employees felt the physical strain. When you’ve worked in heavy manufacturing for 20 years, flexibility and agility decrease, and health becomes a factor. Wherever we could automate processes to provide relief, it helped—allowing us to utilize the workforce in other areas.

The same applies to customer service. In the past, employees manually keyed in orders—essentially, receiving a fax and then inputting it into an SAP system. That’s tedious, repetitive work. A more efficient approach is to link systems and automate the process. This frees up employees for higher-value tasks, such as engaging with customers—understanding their needs, resolving issues, and adding value to the business. If someone spends three-quarters of their day inputting orders and only a quarter engaging with customers, they’re not driving growth.

In general, companies should assess processes that don’t directly add value and find ways to automate or digitise them. This allows employees to focus on more valuable tasks that benefit both the customer and the company. The challenge often lies in leadership mindset—decision-makers may delay digitalisation because “it’s never the right time.” But businesses always have competing priorities. The key is aligning stakeholders and recognizing that automation and digitalisation drive long-term success.

At my last company, we automated production and packaging lines, significantly improving efficiency and effectiveness.

Tom: Looking back at your career, what’s the most valuable lesson you’ve learned as an executive?

Rüdiger: I’d say the most valuable lesson is the importance of listening. In my experience, too many leaders rush in wanting to make changes just to leave their mark. While it’s natural to want to make an impact, it has to make sense. That starts with listening—listening to employees, customers, and the organisation before making decisions.

The old-school management style of making drastic changes within 60 or 90 days was more common in the last century. But I firmly believe that truly understanding different perspectives allows you to make better decisions, build stronger relationships, and lead more effectively. Employees and customers want to be heard—they don’t want to be told what’s best for them by someone who assumes they already know.

When I worked in sales, I used to tell my team: a good salesperson isn’t the one who talks the most, but the one who asks the right questions and listens. That’s where you learn the most.

This sounds simple, but it’s difficult. There’s always an urge to take action, to make an impact immediately. But stepping back, observing, and truly understanding the environment is key.

Another lesson is lifelong learning. Some people assume that once you’ve done a lot, you know everything. But I believe that no matter your age—30, 40, 50, or 60—you should always be learning. There’s always something new to discover.

Tom: If you could give your younger self one piece of advice, what would it be?

Rüdiger: That’s a great question, and I’ve reflected on it a lot. I would tell my younger self to embrace change earlier and take calculated risks. The biggest growth opportunities come when you step outside your comfort zone.

I’d also stress the importance of building strong networks and maintaining relationships. Early in my career, I sometimes hesitated to take the next step, fearing potential setbacks. But looking back, I see that bold moves often lead to success.

For example, at one company, we faced a tough board discussion about production costs. After two or three years, we had to evaluate the workforce. I’ve never been a fan of laying off employees, only to rehire later. But sometimes, financial realities force difficult decisions—cash flow turns negative, you can’t pay vendors, and drastic action becomes necessary.

I recently read a book about Elon Musk. While I don’t necessarily agree with all his methods, one idea stood out: he often laid off more employees than others would dare, yet ended up more successful because he took bold steps instead of incremental ones.

I experienced a similar situation. We had to lay off employees, but unfortunately, it wasn’t enough. We had to go back for a second and third wave, which was even more damaging. Employees started to wonder, “When is the next round coming?”—leading to trust issues and uncertainty. A single, decisive action would have been less disruptive than a series of smaller cuts.

This applies beyond layoffs—hesitation and half-measures can be risky in many business areas. Taking bold, well-calculated actions requires courage. Personally, I prefer hiring over firing, but sometimes, leadership demands tough decisions.

Tom: Thanks for your time Rudiger.

Rudiger: Thank you as well.