Transformation of Philips Ukraine: How the Company Adapts to the New Realities of War

Four years since the full-scale invasion began have proven to be a true test for businesses in Ukraine, which are forced to adapt to new realities. Philips Ukraine, part of the global corporation Royal Philips, has not only changed its management approaches but has also strategically rethought its role in society. CEO Serhiy Hontar and Head of Medical Systems Dmytro Borzanytsia shared insights on how the company balances the daily needs of Ukrainians with the high-tech recovery of healthcare.

Serhiy Hontar noted that four years of war have created a new reality in which businesses learn daily how to live, work, and recover without losing their sense of purpose. 'For us in Ukraine, this journey has become a test of maturity—strategic, human, and value-based,' he emphasized. Philips Ukraine has always adhered to its mission of improving people’s health and well-being through innovation, and in the context of war, this mission has become even more critical.

On February 24, 2022, when the full-scale invasion began, all of the company's business plans were shattered. 'For us, the only question became safety—employee safety,' Hontar recounted. After ensuring the safety of its employees, the company focused on securing its business. In crisis conditions, decisions were made not according to regulations but based on initiative and concern. Hontar pointed out that it is essential to have a clearly defined direction known and understood by everyone.

Philips Ukraine had established its priorities even before the war began: employee safety, asset security, and recovery. 'We halted operations but managed to retain our team. We continued to pay salaries and provided financial assistance because our team is the most valuable asset of Philips,' Hontar stated. The return to operational activities occurred gradually, and by March 2022, the company had resumed shipments to Ukraine.

Hontar emphasized that the first shipments served not only as a financial but also as a psychological signal: 'Life goes on.' In April 2022, the company resumed operations of its online store and introduced shipment without prepayment, which was a significant step for partners who had suffered considerable losses. 'We were among the first in our industry to encourage other international companies to return and invest in Ukraine even during the war,' Hontar noted.

At the same time, the company realized that the market had changed, and these changes required faster decision-making and courage in experimentation. 'All of this has been made possible thanks to our team—brave, caring, and proactive people who strive to do everything possible,' Hontar said. The most profound lesson the company learned is that it can no longer think in terms of 'post-war.' 'We had to learn to live in a constant mode of 'here and now',' he stressed.

Changes in management have also become evident. 'What previously required multi-level approvals is now resolved much faster. We have shifted from a control model to a trust model, where there are more local decisions and autonomy for people and teams,' Hontar noted. In a prolonged crisis, leadership lies not in trying to hold everything in one’s hands but in creating space for responsible decisions by local teams.

The war has also tested partnerships, strengthening them. 'In the first months, we thought not in terms of profitability but mutual support. The question was not 'how much will we earn,' but 'how do we restore operations and help partners, consumers, and the country',' Hontar stated. Together with partners and with the support of the Philips Foundation, the company implemented a number of humanitarian initiatives, including the provision of a field hospital for the State Emergency Service and the supply of medical equipment to hospitals.

Over time, it became clear that one-off initiatives were insufficient, and the company focused on long-term projects. 'In wartime, businesses must be honest with themselves and distinguish real contributions from imitations,' Hontar pointed out. A crucial mission became strategic cooperation with the state in restoring the healthcare system. Back in early 2021, Philips signed a Memorandum with the Ministry of Health of Ukraine, and with the onset of war, this dialogue intensified.

In the short term, the company has focused on increasing the capacity of medical services for internally displaced persons and supporting hospitals in combat zones. In the medium term, it aims to leverage expertise in the reconstruction and design of new-type hospitals. In the long term, the company plans to develop digital services in healthcare, creating a more resilient, patient-centered system.