Showing posts with label Leadership Agenda. Show all posts
Showing posts with label Leadership Agenda. Show all posts

September 01, 2013

Leadership Agenda: Stryker Corp.

Growing up in southwestern Michigan in the 1950s and 60s, I remember The Upjohn Co., a pharmaceutical manufacturing business, as the dominant and benevolent corporate presence in Kalamazoo, Michigan. A great company and community citizen.

Others contributed positively including General Motors Corp. (Fisher Body plant), Checker Motors Corporation (taxis), and respected Western Michigan University. Only the university survives with nearly 25,000 students. GM is now a restructured General Motors Co.

The Upjohn Co., founded by University of Michigan graduate, Dr. William E. Upjohn in 1886, was noted for its "friable pills" which were powdered and supposedly easy to digest.

A long run

As with many corporations, The Upjohn Co. came to an end in a 1995 merger with Pharmacia, later called, Pharmacia & Upjohn.  What remained of Upjohn, after a second merger with Monsanto and Searle in 2000, was consolidated by Pfizer Corp. in 2003. 

Pfizer is a major presence with an expansive global manufacturing facility on the former Upjohn site and an animal research center in downtown Kalamazoo.  

In 2007 the Frank Lloyd Wright-inspired Upjohn administrative office, officially known as Building 88, and sometimes referred to as the "Taj Mahal," was demolished.

A transition


Clearing away The Upjohn Co. office made it possible for Stryker Corp., founded in 1941 by Dr. Homer Stryker, also a Michigan graduate, to fulfill a role as Kalamazoo's leading "corporate" citizen with its world headquarters, three major business units, and 2,400 local employees. 

For perspective Stryker is a Fortune Magazine "most admired" company; is currently ranked 305 on the Fortune 500 list; has 33 international facilities; and sells higher-end medical-related products in 100 countries. Its total global employment is 24,000. 

Setting the agenda

In October of last year, Stryker, with sales in 2012 of $8.3 billion, promoted from within and named 47-year-old Kevin A. Lobo to be its president and CEO. The change came after former Chair and CEO, Stephen P. Macmillan, resigned over a personal family matter. 

Approaching the first anniversary as CEO, Mr. Lobo recently gave the Kalamazoo Gazette an extensive interview.  He offered up a leadership agenda (themes) for growth consisting of four areas critical to Stryker's long-term success:
  • Globalization
  • Collaboration
  • Innovation
  • Cost optimization
While most attention in organizational life is given to "strategic planning," Stryker's CEO has cooperatively developed a company-wide agenda that communicates priorities, internally and externally. The goal of this or any other leadership agenda is to give the planning process direction and build on the company's strengths.  

What's important to Mr. Lobo should matter to all Stryker associates, shareholders, current and prospective customers, as well as competitors.  

The agenda was not created in a vacuum as he appears to place a premium on listening. "You listen, learn, engage the teams, be transparent and open, identify areas of opportunity," the CEO offered in that interview. 

A clear No. 1

Having a list does not mean all things get equal attention at the same time.  For example,  globalization, which may be the number one priority, received the greatest attention in 2013 and made the most progress according to the Gazette interview. 

The globalization emphasis indicates an agenda should be treated as something dynamic, not linear, as new opportunities (or problems) emerge that were not thought about or present when the list was created. New leaders at the top soon discover that market forces demand flexibility in managing anything, including a list of priorities.

On the global checklist was the first acquisition in China with the $764 million purchase of Trauson Holdings Co. a lower-end manufacturer of medical equipment and devices. "Long term, emerging markets are very important and the fastest growing," Mr. Lobo said.   

A turnaround was needed in Europe so that's where more of the CEO's time was given to getting the right leadership in place.

Getting things done

No doubt the Chief Executive Officer spends a lot of time communicating his messages inside Stryker. The two Gazette articles are must-reading for employees and investors as the proposed path to the future is clear.   

Although Upjohn, GM, and Checker Motors lasted a combined average of 88 years, the fact they no longer exist is a reminder that corporate life comes without a guarantee.

To illustrate:

-Of the Fortune 500 companies that appeared on the first list, in 1955, only 71 hold a place on the list today. (The 1955 list included industrial companies only, whereas today's list also includes service companies.) 

-Nearly 2,000 companies have appeared on the list since its inception, and most are long gone.
 

When the CEO has a moment perhaps someone could take him by the former Upjohn administrative office site on Portage Road, not too far from the Stryker headquarters building next to Kalamazoo/Battle Creek International Airport. He would see a grassy knoll, with no sign of the Bruce Graham-designed building completed in 1961.  

The empty lot is a reminder to continually have the correct leadership agenda in place; work through the right people to have it successfully implemented; hold to core values, and adapt to market opportunities and changing customer demands.  

With hard work, and some luck along the way, Stryker Corp., now in its 72nd year, could achieve what The Upjohn Co. did and hit the century mark, even though there are no assurances that will happen. 

Yet for CEO Kevin Lobo, and everyone at Stryker, aging profitably is something a medical devices business, featuring orthopedic products, should know how to do.


Strategist.com

(C) Bredholt & Co.

March 01, 2013

Leadership Agenda: Siemens USA

The idea of spending time with a chief executive officer (CEO) of a major corporation is appealing to a corporate strategist. 

So when the invitation came from Dr. Susan Bach at Rollins College in Winter Park, Florida to attend a reception and speaking engagement with Eric A. Spiegel, president, and CEO of Siemens Corporation USA, we readily accepted. 

Mr. Spiegel has responsibility for the $22 billion USA market which includes 60,000 employees and over 130 manufacturing sites. 

The parent company, Siemens AG, headquartered in Munich, Germany, was recently named one of Fast Company's "Most Innovative Companies" (#21).  Siemens's concentration is in four business sectors--energy, healthcare, industry, and infrastructure & cities.

Up close and personal

It's one thing to read about CEOs or see them interviewed on TV. However, there's nothing that takes the place of being up close as Eric Spiegel made himself accessible to college students and community leaders.

After providing an overview of Siemens's businesses, as well as changes in the marketplace, he touched on an often overlooked aspect of executive responsibility--the leadership agenda. 

What's a leadership agenda?

A leader's agenda is a plan for guiding the organization. It's not a business plan in the traditional sense. An agenda is a set of themes and priorities requiring action and progress in a given period. The agenda includes the main message and identifies critical issues needing attention.  (Briefing for Leaders HarperBusiness)

What are the benefits of a leadership agenda?
  1. Clarifies the main message
  2. Maintains focus
  3. Is a filter for allocating scarce resources
  4. Improves organizational health
  5. Provides accountability for results
Eric Spiegel's agenda

Wisely Mr. Spiegel has chosen a limited number of priorities to support and complement the Siemens USA business plan: 
  • Growth
  • People
  • Reputation
  • Operational excellence 
It's obvious from the presentation that he uses communication, including the above four themes, as a steering mechanism in his role as CEO.  This includes getting feedback from a variety of internal and external sources. 

The evening was a reminder that perhaps one of the most important decisions made by anyone in leadership is the allocation of their time.  

Mr. Spiegel doesn't have any more hours in his day than the rest of us. Therefore while he manages Siemens his executive assistant, Grace D' Alessio, manages him. She is given a share of the credit for whatever success comes Mr. Spiegel's way in leading a large and complex enterprise.

Some questions

Here are a few things to think about from our time with CEO Spiegel:
  • Do you have a leadership agenda?
  • Is it up-to-date?
  • Is the agenda clear, shared, and owned by others?
  • Can you be managed?  
  • Who manages you?  

Strategist.com

(C) Bredholt & Co.

 



February 01, 2012

Eleven Minutes of Football

During the tenure of then CEO Jack Welch, Business Week did a piece entitled, "How Welch Manages GE."  It highlighted leadership "rhythms and rituals" over 12 months showing in detail how one man dealt with an enormous task--that of managing a company whose 1998 revenue (the year the article appeared) was $90.8 billion, with $8 billion in profits, and 276,000 employees worldwide.

The story is a case study in personal and time management--and points up the importance of having a top-notch executive assistant like Rosanne Badowski who managed Mr. Welch as he was managing GE.

The article gives an inside look at Welch's leadership agenda, focusing on those things belonging to a CEO that cannot be delegated to anyone else.   It's also a reminder of how a calendar can be a steering mechanism for any organization.

Playing the Game

Is Super Bowl XLVI (46) a teachable moment for executives?  What could be learned about managing the corporate clock from the American version of football?  

Two years ago "The Wall Street Journal" commissioned a study of the National Football League to see how much time was actually spent playing the game during a typical broadcast.  

The results:

"According to the Journal's study of four recent broadcasts, and similar estimates by researchers, the average amount of time the ball is in play on the field during an NFL game is about 11 minutes."

The writer of the story, David Biderman, concludes, "if you tally up everything that happens between the time the ball is snapped and the play is whistled dead by the officials, there's barely enough time to prepare a hard-boiled egg."  

The balance of the broadcast, excluding commercials, goes to the following:
  • Three seconds of cheerleaders
  • Seventeen minutes of replays
  • Sixty-seven minutes of everyone standing around
Allocation of Time

If you did a study of your business or nonprofit, what would it find?

-How much time is given to cheerleading?

-How much time is given to replaying the past?

-How much time is given to standing around?

-How much time is given to the few things that are likely to make the biggest difference?

Your Calendar

As the leader what is it only you can do?  In the coming year, what could you get rid of and never miss?

But old habits die hard.  As Mark Twain once observed:

"Habit is a habit and not to be flung out the window by any man, but coaxed downstairs a step at a time."

It could be the most important thing to do in 2012 is carefully examine your calendar and goals to see if there is a good match between the two.  

What should be the relationships between time for thinking; time for rest; time for self-renewal; time for family; and time for business?  Finding the right combination among these competing, yet complementary values are in everyone's best interests.

What are the "rhythms and rituals" of your schedule?  Are they moving the business closer to its goals?  Do the old rituals need modifying or are new ones in order?

As it was with Jack Welch, and his successor at GE, Jeff Immelt, there are only 24 hours in a day.

In your leadership role, where is the highest and best use of your time?


Strategist.com

(C)  Bredholt & Co.



April 15, 2011

Leadership Agenda: Best Buy Co.

It seemed like the best of all worlds for Best Buy stores. There was good news in a slow economy.  Circuit City, its chief competitor, was going out of business. The conditions were right for Best Buy to continue expanding, now with its major competitor gone from the scene.

However, if something seems too good to be true, it probably is.

While the competitive retail landscape was changing so was the consumer and their options for purchasing electronic equipment. Households have increasing confidence to purchase big ticket items from their computer screens, Pads, and smartphones.

What happened?

The Internet remains a potentially destructive force for nearly all companies, even those with a strong physical presence. Note the closing of 200 Border's Book Stores. Amazon.com Inc. is getting stronger by offering an increasing number of products while collecting limited sales tax. 

Its shipping options are also more attractive.

What was a plus yesterday (large stores nearby) now appears to be a liability (overhead).

It was announced recently that Best Buy will "shrink" its "big-box" strategy.

What will the new design look like? Here is CEO Brian Dunn's revised leadership agenda:
  • Position Best Buy to aggressively compete against Amazon.com
  • Rapidly escalate opening smaller stores focusing on smartphones (having 600 to 800 Best Buy Mobile stores in five years)
  • Close some existing stores thereby reducing square footage costs
  • Negotiate smaller leases with landlords
  • Lobby for change in U.S. tax laws forcing online retailers to collect sales taxes.

strategist.com

(C) Bredholt & Co.