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FORMING, NORMING &

REFORMING

Building a Vision and

Culture of Learning

. ,erry L Marlar Former President, .ulzer Orthopedics IncCompany of SulzerMedica,urich Switzerland


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Marlars Six Questions

Why Are We Here?

How Are We Doing? Really!! Why Am I here?

How Am I Doing? Really!!

Are We Committed to

Excellence?

Can I Trust You?


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PRESENTATION PURPOSE

To describe the evolutionary journey of

Sulzer Orthopaedics &

to illustrate Learning Organization

principles.


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Key Learning Objectives

To illustrate learningorganization principles withthe experience of Sulzer

Orthopaedics.

To define a process for linkingvision, mission and strategy of

the organization.

To describe the challenges ofleading an organization to

develop an adaptive capacity


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LEARNINGORGANIZATION

A Learning Organization isan organization skilled at

creating, acquiring andtransferring knowledge,

and at modifying itsbehavior to reflect newknowledge and insights.


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Learning OrganizationPrinciple

A learning organization is a

means to an end, not anend in itself.

The intimate aim is to

safeguard the survival of thefirm through continuousrenewal.


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To Safeguard

SurvivalWe must

understand lifecycle dynamics.


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FORMING

NORMING

EFORMING( )ntegrating

HASES OFGROWTHTime


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Exploringxploring andndInventingnventingthehePatternattern

rganizationalCharacteristics

EntrepreneurialDivergentInventiveCreativeExploratory

Time

ORMING PHASE


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xtending and Improvingxtending and Improving

rganizationalCharacteristics

ManagementDuplicationImprovementModification --ommonalityLikenessTime

orming Phase


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ntegrating the New and Differentntegrating the New and Different

rganizationalCharacteristics hared Leadership &ivergenceInnovation &haring IntegratingDifferencesPartneringTime

( )eforming IntegrationPhase


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TIME

GROWTH

hase1 hase 2 hase 3ew Phase 1-e inventing theFuture

NEW formReforminReformin

ggNewNew

PhasePhase

OneOne

Organizational Growth: Reforming(Bifurcation)

rganizational Characteristics /New inventions innovationsIntegrating new elements into the basicbusinessCreated outside the old system


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xecutive Teamvice and Economic Missions and initial mapping of Values and

Strategies

-id Management Team,Confirmation of Purpose Service and Economic Missions and ini

Strategies

otal Management Team,Finalize Purpose Service and Economic Missions andStrategies

otal Company Team, .rvice and Economic Missions beginning of implementation of tactics Demonstra


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Sulzer Orthopaedics

Purpose

To Improve the Quality

of LifeBy Advancing

Orthopaedic Medicine

and Creating

Model Learning

Organizations


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Sulzer Ortho. ServiceMission

Sulzer Orthopaedics will improve the quality oflife by utilizing innovative proprietaryproduct/process technologies and servicesand by establishing business and learningpartnerships with key individuals, institutions,and companies in carefully selected sectors oforthopaedics such as:

Orthopaedic devices

Biologically active products focused onorthopaedic applications

Ancillary devices and services important toobtaining optimal results with our implantsand meeting our customers requirements.accomplished in a business environment that is enjoya


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Sulzer Ortho. EconomicMission

We Exist to Increase Value for Customers,Employees and Stockholders.

We are Committed to Growth - Minimum Three-Year Rolling

Average Compound Growth Rate of 50%Higher than the Market Growth Rate

Profit - Meet the Financial Requirements

of Our Owner Asset Management Sufficient Cash to

Cover Expenses, Investments in Growth,and Debt.his mission will be accomplished in a business,nvironment that is enjoyable enabling and.mpowering


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Sulzer OrthopaedicValues

Create and maintain an environment whereall stakeholders are encouraged to share apassionate commitment to our vision for thefuture based on mutually held values. Thecornerstone for all our values is being

customer-oriented. Quality as defined by the customer

Support for all our people in their growthtoward higher levels of competence

An environment of mutual trust and respect that

honors and integrates individual differences A culture that rewards the achievement of goals

Effective communication of ideals, informationand feelings

A spirit of teamwork

An environment that facilitates change


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Learning OrganizationPrincipal

Learning must link directlyto the firms vision,

mission and strategy.


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Strategies embody theorganizations learning

challenges

to be focused andsuccessful the

organization mustprioritize its

learning.


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ife Cycle ofStrategies

Opportunit

!irth

Importance

CriticalSuccessFactor

!aste

Performance


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Sulzer Ortho. Evolution ofStrategies

1992-1993Immediate Opportunities

Passionate Commitment toVision/Values

Rapid Product Deployment

Duplicate the Best Sales/Distribution

ModelsChallenges

Partnerships with Sales/Distribution

Networks


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Sulzer Ortho Evolution ofStrategies

1994Immediate Opportunities

Sales to Large Buying Groups

Product Line Extensions

Rapid Product DeploymentChallenges

Extend/Enhance Current Distribution System

New Geographic Markets

Effective Business Tools Meet US/ISO Requirements

Effective Communication

Mid-Range Opportunities Leadin Innovator Value-Added Services


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1995-1996Immediate Opportunities

Sales to Large Buying Groups

Product Line Extensions

Rapid Product Deployment

Reduce Product CostsChallenges

New Innovative Products

Effective Business Tools

New Geographic Markets

New Anatomical MarketsMid-Range Opportunities

Leading Innovator Value-Added Services


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1997Immediate Opportunities Reduce Product Costs

Leading Innovator Value-Added Services New Anatomical Markets Effective ManagementChallenges Effective Teamwork (Cross-Functional) Total Inventory Management


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( ) he S Curve Gompertz A MarketDestiny

.All homogeneous markets follow an S Curve during growth The Gompertz Curve is a mathematical Function that has been shown to be

.the best fit for actual data that follows an S curve Using a best fit instead of actual data minimizes or eliminates

, , .variations in revenue due to the economy internal strategies etcUse of the Gompertz Curve allows you to predict the future growth and the

.key transition points for strategic planning


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mplication of The Three Keytrategic Points

he Point of Success Success is clearly established Revenue increasinglyexceeds expenses

Strategies should be implemented based upon growthpotential

Too early to identify the Point of Inflection


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he Point of Inflection oint of Inflection can only be identified after it hashappened ,nce the Point of Inflection is identified the Point of!estiny can be predicted ost likely time to be overconfident eriod during which most foolish strategic actions areaccomplished


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he Point of Destiny arket share battles are looming fficient operations is mandatory for optimum survival ;arket share increases must be purchased it will not befree trategies for expanding geographies or product scope are

lso appropriate trategies for increasing market share are appropriate


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Learning Organization

Principal

Learning Organizations neverarrive, but are always

becoming.


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Marlars Six Questions

Why Are We Here?

How Are We Doing? Really!!

Why Am I Here?

How Am I Doing? Really!!

Are We Committed toExcellence?

Can I Trust You?


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,


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Reference Information

Email: [email protected]

Blue Bridge International

Student & Professional Exchange &Development

www.bluebridgeint.com
mailto:[email protected]://www.bluebridgeint.com/http://www.bluebridgeint.com/mailto:[email protected]


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