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How is Medtronic's culture now? Has it improved?

Anonymous

Guest
Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html

"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."
 




Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html

"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."

Wow
 




Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html

"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."

It's pretty much true. If you seek accountability, you're labeled as the bad guy. Then, they want you gone. Don't rock the boat, and everything is OK.
 




Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html

"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."

So what happened?: "I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

Did BG change it and it reverted after he left? I've been here a little over 4 years, and everything right now is a he describes it when he got to Medtronic.
 




I think BG himself was sugar coating when he said the company was "Minnesota Nice" and he was "transforming a healthy culture." The culture he describes, where the managers lack accountability and don't even understand the concept of their own accountability without his guidance, is not a healthy culture at all. The managers are acting like children seeking a parent. Gross.

This topic reminds me of this article for parenting of teens: http://www.empoweringparents.com/How-to-Create-a-Culture-of-Accountability-in-Your-Home.php#
 




So what happened?: "I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

Did BG change it and it reverted after he left? I've been here a little over 4 years, and everything right now is a he describes it when he got to Medtronic.

When AC took over a HR decision was made to infuse outside influence into company at management level. For the most part these Harvard / Kellog educated MBA's couldn't make a non-concensus decision if thier life depended on it. We used to have leadership that was bold and decisive. Now the leadership is a group of job protecting marshmellows. If you question direction you are out. The old school folks left are looking form retirement options or positions away from corporate. This next RIFF should take out the remainder. Camelot no more.
 




Bill George article from 2004. http://hbswk.hbs.edu/item/4054.html

"The question is, Do the organization's norms drive performance or do they undermine it? The latter is what I found at Medtronic when I joined the company. The company's long history of success had led to a soft underbelly that manifested itself in a lack of discipline. The company was extremely values-centered, but its internal norms of consensus decision making, conflict avoidance, and lack of personal accountability all undermined the company's performance. For all its strengths, it was my impression that Medtronic's culture was too Minnesota Nice. I realized that these aspects of Medtronic's culture had to change if we were going to be an effective competitor and realize our vision of being the global leader in medical technology."

"In addressing the issue of Medtronic's performance standards, I found that goals and deadlines were routinely set, missed, and then simply adjusted. Poor performance was rationalized by excuses. Even incentive payments were adjusted upward to reflect these excuses. As a result, sales targets were missed, new products delayed, expense budgets overrun, all with no direct consequences for the individuals in charge. The organization tended to diffuse responsibility for performance, making it difficult to find out who was responsible. When individuals failed, they were rarely removed from their jobs. Instead, others shielded them from responsibility."

I just missed the Bill George era. Art Collins on forward is all I've known. That's too bad. I've moved on, and am happy for it. True North is a great book that I've seen managers hand out....almost as a punch line. The company has perpetuated the Bill George myth in spirit, but not actions. I don't think you can even call the Medtronic of that era, the Medtronic of the last 10 years, or the current Medtronic, the same companies. I give Omar credit for making bold decisions recently, right or wrong. Decisions that have to repair the past 10+ years. The problem is riffing all infantry is treating the symptoms, not the problems. There are layers of upper and middle management that protect themselves and the good ole boys. This is an industry of relationships, where the norm thrives. Mgrs hire old relationships, even friends. The culture is set up so that those who want to fix, move forward and make tough decisions, are ostracized. Things won't change until changes occur there, where the old culture is embedded. I think what you're going to find, is that the brass executing the riffs are eventually going to have to face some music themselves once the field is lean. I've heard Medtronic was once a special place to work under George's reign. Not so much lately. Maybe Omar can bring some of that back, but he won't make friends trying.
 








Here's the thing. I don't think Bill George did too much to improve the situation, but he DID buy some pretty good companies and make Medtronic BIG. And Big (in that era) meant more profits. He presided over Stents, then the start of drug coated stents, defibs, then CRT, all the while buying pretty OK companies with good profit margins.

But it was a house of cards. The moment the sales growth wasn't there, it collapsed (Fidelis was the start) and you now see the underlying problems --- can't develop new therapies in house. Can't prioritize projects (and kill the bad ones).

And, in particular, can't effectively discriminate between the True Leaders and the Yes Men.


And that other poster is right, all the MBA's from outside just perpetuated the lack of leadership.
 








the leadership is a group of job protecting marshmellows. If you question direction you are out. The old school folks left are looking form retirement options or positions away from corporate. This next RIFF should take out the remainder. Camelot no more.

There's a ton of folks counting the days until they are 55, can "retire" and then take a job somewhere else . . .

These are the folks that brought you neurostim, defibs, drug elution, lots of innovations.

The next generation of engineers only bring "warning letter remediation"
 




Here's the thing. I don't think Bill George did too much to improve the situation, but he DID buy some pretty good companies and make Medtronic BIG. And Big (in that era) meant more profits. He presided over Stents, then the start of drug coated stents, defibs, then CRT, all the while buying pretty OK companies with good profit margins.

But it was a house of cards. The moment the sales growth wasn't there, it collapsed (Fidelis was the start) and you now see the underlying problems --- can't develop new therapies in house. Can't prioritize projects (and kill the bad ones).

And, in particular, can't effectively discriminate between the True Leaders and the Yes Men.


And that other poster is right, all the MBA's from outside just perpetuated the lack of leadership.

Nice Summary, sad but true
 




When working at Medtronic, in any given situation, always find out what your manager thinks first and parrot that back to them. If you give your opinion first, and it differs from your manager's, you will immediately be considered to be in conflict, and you will have to take conflict training.
 




When working at Medtronic, in any given situation, always find out what your manager thinks first and parrot that back to them. If you give your opinion first, and it differs from your manager's, you will immediately be considered to be in conflict, and you will have to take conflict training.
Work on your delivery. This is not a MDT issue this is how it is everywhere. Should be the same way you approach customers. Make them feel in control of the situation.....tee it up for them. It is a hard skill to acquire but if you practice this technique you will be successful. Having to "own" every idea or suggestion is a fatal business tactic.
 




Work on your delivery. This is not a MDT issue this is how it is everywhere. Should be the same way you approach customers. Make them feel in control of the situation.....tee it up for them. It is a hard skill to acquire but if you practice this technique you will be successful. Having to "own" every idea or suggestion is a fatal business tactic.

No, it shouldn't be like dealing with customers. If it is, then there's a problem. So much for "Candor" I guess....
 




Work on your delivery. This is not a MDT issue this is how it is everywhere. Should be the same way you approach customers. Make them feel in control of the situation.....tee it up for them. It is a hard skill to acquire but if you practice this technique you will be successful. Having to "own" every idea or suggestion is a fatal business tactic.

Yes, it is an MDT issue. An employee sharing an opinion before knowing what the manager thinks does not take control away from the manager. Why wouldn't the manager know that? This looks like a case of an underskilled manager who needs to do some self improvement but probably won't when they can blame an employee for supposed problems. This manager gets a twofer -- gets to incorrectly assign blame for their own issue and gets to appear to be "developing" an employee. Sharing opinions is different from having to "own" everything.
 




No, it shouldn't be like dealing with customers. If it is, then there's a problem. So much for "Candor" I guess....

Candor works to get things done quicker. If MDT managers need too much coddling, employees with ideas will learn save their breath and their enthusiasm. They'll just be there to collect a paycheck, waiting for a good manager. If one ever appears.
 




Candor works to get things done quicker. If MDT managers need too much coddling, employees with ideas will learn save their breath and their enthusiasm. They'll just be there to collect a paycheck, waiting for a good manager. If one ever appears.

And that's exactly how it goes too. Some good ones leave for other companies, but some just shut up, shut down and collect a paycheck. That's the "Big Blue" way.
 




No, it shouldn't be like dealing with customers. If it is, then there's a problem. So much for "Candor" I guess....

I agree. Managers are not internal customers with repect to their employees. Employees are the customers. Managers are supposed to remove barriers that prevent employees from getting a job done, not add more bullshit like stroking egos..........or worse.
 




When working at Medtronic, in any given situation, always find out what your manager thinks first and parrot that back to them. If you give your opinion first, and it differs from your manager's, you will immediately be considered to be in conflict, and you will have to take conflict training.

I hope there aren't many managers like this at MDT. Nothing like suddenly being involved in a manufactured "conflict" when you're just doing your job as, I figure, an alert and responsible employee. Who needs the hassle of a manager who seems to like drama games instead of contributing to productivity? Life is too short.