medidata transformational change report

Download Medidata Transformational Change REPORT

Post on 20-Jul-2016

8 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • TransformaTional ChangeWhaT WorKs anD WhaT Can Doom The iniTiaTiVe

    in assoCiaTion WiTh:

  • ConTenTs

    Transformational leadership: Inspiring change ...........................................................................................2

    Catalysts for change .............................................................................................................................................3

    What does it take to make transformation work? ................................................................................... 5

    Metrics and incentives ......................................................................................................................................... 6

    What can derail a transformation? ..................................................................................................................7

    Types of transformational leadership: Is there a more effective approach? .................................. 8

    Personal transformation: Need to want it ................................................................................................... 9

    Conclusion ..............................................................................................................................................................10

    Acknowledgments................................................................................................................................................ 11

    Survey methodology .......................................................................................................................................... 12

  • 2 | TrANSforMATIoNAl ChANge

    The stakes couldnt be higher. The cost of an unsuccessful business transformation can be catastrophic. Retailers from Borders to Circuit City to the corner hardware store have failed to find footing as the earth shifted beneath them. Steel and textilesindustries once consid-ered too big to failare now a graveyard for once mighty companies in the United States. Even former cutting-edge, high-tech companies such as Kodak that seemed on the cusp of reinventing themselves in the end succumbed to market shifts.

    TransformaTional leaDership: inspiring Change

    In contrast, successful transformation means more

    than merely adapting to change; it means rewriting

    business models or even reshaping your own industry.

    Considering Apples role in the birth of the tablet

    computer industry and the revolution in smartphones,

    for example, it is hard to believe the company was once

    an also-ran hardware maker.

    While the outcome of transformation can mean life

    or death for a company or industry, only half of

    executives say that their organizations adapt well

    to new technologies or processes, according to a

    survey of 106 executives conducted by Forbes Insights

    and Medidata.

    What does it take to make transformation work? In

    the case of Apple, it began with visionary leadership.

    The push for transformation almost always comes

    from the top, while it appears to be largely left to the

    next layer of management to see it through to execu-

    tion, according to our survey. In fact, most companies

    get the vision part right; execution is the hard part.

    The 106 executives from across the business and

    industrial landscape who responded to our in-depth

    transformation leadership survey cited leadership

    limitations as the biggest barrier to success.

    Specifically, these executives named conflicting visions

    among executive leaders or decision makers together

    with a lack of internal talent to spearhead or execute a

    transformation as the main obstacles by respondents.

    Thats the top-line finding of our survey, but the

    detailed responses, alongside interviews with a

    number of the executives, demonstrate that there

    are important nuances in transformational leader-

    ship. Among those differences are various catalysts

    for change, strategies for making transformations

    work, metrics and incentives for measuring and

    encouraging success, and for understanding when

    things are going wrong.Just half of executives believe their company

    is well versed in transformational change.

  • CaTalysTs for Change

    CoPyrIghT 2014 Forbes InsIghts | 3

    Sometimes catalysts come in the form of earth- shaking events. The financial crisis in 2008, for example, not only reshaped the entire banking industry but also spun through every company that counted financial firms among its customers. It was transform or die for many.

    Evolutionary developments can be just as provocative. Big Data, the advent of the cloud and the decoding of the human genome are catalysts that very few businesses have fully embraced. These applied technologies clearly have the power to revolutionize many industries, yet many companies are still struggling with how to integrate them into their business plans. One case in point: just 60% of the companies we surveyed report that they are taking full advantage of data analytics to better understand customers and to act on that information. The deluge of information these new technologies bring is a double-edged sword a source of tremendous opportunity but also an exponential increase in complexity.

    Take the case of the pharmaceutical industry. With changes in the payer-provider system globally, drug developers are facing tremendous pressures to show greater efficacy and value in the treatments they bring to market. At the same time, advances in genetics and personalized medicine increase the variables that can determine efficacy almost exponentially. Medidata Solutions, a New York-based provider of cloud-based solutions to the life sciences industry, has built its business around collecting and managing data to increase predictability and efficacy and to bring greater productiv-ity to clinical development.

    The issue is not in the amount of data, but in how its used, explains Tarek Sherif, chairman and CEO of Medidata. Big Data is a very dangerous term, he says. Pharma has a data opportunity, but its more like quality data than Big Data because the amount of data is minus-cule relative to some industries like Google. Google has a Big Data challenge; pharma faces different challenges.

    You have to have a very good idea of what youre looking for before you start digging around in it, or youre going to waste a lot of money and time, he adds. If were successful at what were trying to do, then we will help the industry become much more insightful about how to use the data they have.

    In the case of Lockheed Martin, it was federal budget sequestration and defense cuts that catalyzed transforma-tiona change that has proved more profound than the end of the Cold War. The 100-year-old firm now has to look beyond government spending, the source of 90% of Lockheeds traditional business, to international clients and non-defense industries, while continuing to provide innovative and affordable defense technology to its core government customers.

    The new reality is that we live in a very complex global security environment, says Dr. Ray O. Johnson, senoir vice president and chief technology officer at Lockheed. The challenges for us as a nation and our allies, and even our peers, are very complicated, and not getting simpler. At the same time the resources to take on these challenges are under pressure, and we see that through the pressure on the budget.

    Beyond financial crises, sequestration and disruptive technology, most companies are pushed to transform by the pressures that organizations face every day. Regulatory change, increasing competition and chang-ing customer expectations as well as technological change were named as the most pressing issues by respondents to our survey. These may sound like everyday problems for any business, but ignoring them can lead to the kind of slow attrition and deterioration in performance that saps customers and employees. And any of these catalyststogether or alonecan spell the beginning of the end for a struggling startup or a century-old industrial company.

  • 4 | TrANSforMATIoNAl ChANge

    In fact, any company that has been around for more than a few decades has likely undergone some sort of transformation. Would anyone who worked at IBM when it was founded in 1911 recognize the company today? Over the past several decades, many manufactur-ers saw the opportunity to move beyond production and distribution and recast their business as a service provider. Pulling off such a strategic shift without the catalyst of imminent peril is, in fact, far more difficult.

    There is a debate out there: can you really drive transformation without a burning platform? asks John Conover, retired president of Ingersoll Rand Security Technologies. Xerox went through one of the biggest and most successful transformations in recent history.

    Here was a company days away from not being able to make payroll, completely changing the way they went to market. Everybody had to get on board.

    Conover faced a very different problem in the transformation he oversaw at Ingersoll Rand. You take a company that is pretty successful, like Ingersolls security business. We were big, we were profitable, we were doing well, he explains. Trying to get everyone to engage in a major change, people look at you like you have a third eye.

    But you cant stand still while everything around you is changing.

    FigURE 1. Top FivE CaTalySTS DRiving TRanSFoRmaTion

    31%

    32%

    33%

    28%

    37%

    Regulatory changes

    Increasing competition

    New or changing technology

Recommended

View more >