PLAYING TO WINReenergizing Institutionalized Development

Jeffrey Schmidt

Vice President, Research & Development

Carl Zeiss MeditecCarl Zeiss Meditec

WARNINGWARNING

Los Angeles

Salt Lake CityOperations Salt Lake City

Washington DC

Portland

Operations

R&D

Service-Consulting

Singapore

Syracuse

IT

Sales & Marketing

San FranciscoBusiness Management

OBLIGATORY BACKGROUND

When you hold nothing back …When there is no thought of what I might lose …When there is no concept that I could fail …Your singular focus is on achieving the GOALYour singular focus is on achieving the GOAL…

DEFINITION: WHAT IS “PLAYING TO WIN”?

“Consistent and organizedpattern of behaviour or activities (established by law or custom) that is self-regulating) g gin accordance with generally accepted norms.”

Might be how it feels, Might be how it feels, but it is not today’s topic!

DEFINITION: WHAT IS AN INSTITUTE?

DO I WORK FOR AN INSTITUTE?

AM I INSTITUTIONALIZED?

‘ that’s OK ’… that s OK …

‘… enjoy the rest …’SO IF YOU ARE HAPPY WITH THE INSTITUTE …

IF YOU ARE READY FOR CHANGE …

Speed and adaptability of a start-upwith the resources of a market leader

“… all the strengths and none of the weaknesses …

“If only we had their energy, passion,

“If only we had their budgets, customers,

we could create …commitment, speed, ...” channels, portfolio, ...”

A giant Chihuahua?

==++A giant Chihuahua?

The Start Up The Market Leader

MY THREE DECADES EXPERIMENTATION …

NO …

HAVE YOU FIGURED IT OUT?

NPD from 34 months 16 months 9 months

New products exceeding sales and profit targets

4x improvement in field and manufacturing quality4x improvement in field and manufacturing quality

The ‘preferred’ R&D centers for Product Mgrs

6x product output with the same resources

4x more scientific innovation

A hi i B d & CEO fidAchieving Board & CEO confidence

Reestablishing sales confidence

BUT SOME SUCCESS HAS BEEN ACHIEVED …

WHERE TO BEGIN?

Large Enterprise

SMESMEProtecting the GOAL

Start-Up Playing to SCORE

Decline

Playing to WIN

SURVIVESURVIVE

WE ALL BEGAN A START UP, WHAT HAPPENED?

CAN WE BREAK THIS CYCLE?

THREE START-UP GENES …

We are all part of a business ecosystem …

You cannot create a sustainable change if gdependent functions do not change with you.

WORD OF CAUTION …

BELIEF … CONVINCING THE ORGANIZATION

BELIEF … YOU HAVE TO EARN IT

WHAT ARE THEY GOING TO BELIEVE?

I h t I d i In what I am doing …

In the people I work In the people I work …

YOU HAVE TO MAKE IT PERSONAL …

Two approaches …pp

Application:

Share a great enemy

Application:Saved family member

Family has the diseaseHelp not hurt

Application:Community business v competition

Internal attitudes towards team

Share a great cause

“I am tired of losing!”

BELIEVING … “I MAKE A DIFFERENCE”

The ‘Full’ 360° view …

Be consistent Positive energy

Walk the talk Have small wins

BELIEVING … IN THE TEAM

SORTING OUT THE DISBELIEVERS …

reImplementation tools:Title or role changePerformance Plan

recu

ltur

re …

”

Reviews (formal/informal)Individual development plans

U d th t l th t il bl

d on

futu

n ge

t us t

her

The 9 Box Used the tools that were available, sometimes differently than how they were designed

Meas

ured“Can

Measured on today’s results“Can get things done …”

M

THE POWER OF 9 …

61% ↓ in under performance↑65% ↑ in exceptional performance

Leadership began to behave like a team

Challenge: Some of the managers weren’t believers and some weren’t performers so the initial efforts were ‘sub-optimal’

AND THE RESULTS OVER 12 MONTHS …

YOU’VE CREATED BELIEVERS … WHAT NEXT?

THE SECOND GENE THERAPY…

SOMETIMES SUBTRACTION IS EASIER …

Meetings

NOT 0!NOT 0!

ProcessDocumentation ProcessDocumentation

INSTITUTIONAL TIME SINKS …

“Or this?”“Is this your calendar?”

If you spend your d i i days in meetings

you are not getting thi danything done.

PROTECT YOUR CALENDAR …

Later that year…

“What to do?”

Later that week …

Later that month …

CONSENSUS MEETINGS … JUST DON’T GO

#1 Know WHY you are there#2 Add VALUE or LEAVE#3 DECIDE ASSIGN#3 DECIDE or ASSIGN

HALF any standing meeting

Own your calendarOwn your calendar

JUST STOP …

You have a 100 page ou a e a 00 pagestrategy and 200 page business plan p g p… is it helping?

DOCUMENTATION TAKES TIME …

Parses workMakes visual

Tells a storyOnly the essential infoM tl b ll tMostly bulletsFluidic in natureDoubles as a reporting toolDoubles as a reporting tool

WHAT’S A ONE PAGER?

OPERATIONSAssumes: Stability

Business cornerstone:The 3 year strategyThe annual planAnnual objectives

TimeOPERATIONS

OnePage

r

Assumes: Moving Target

OnePage

r

Update EventCollection of 1 pgs creates Plan

THE CHALLENGES WITH CURRENT PLANNING

Responded to a competitive threat in

3 weeks from identification rather than 12-14 months

Cut the business planning cycle by

50% with significant more team more team

participation/buy in

ARE ONE PAGERS VALUABLE?

… and end up here.

We start off here …

WE LOVE OUR PROCESSES …

… results in an SOP.

The complexity of thisprocess ….process ….

SOPS EVOLVE TO TELL PEOPLE WHAT TO DO

… and they stop thinking.

We train people to followthe SOP …the SOP …

WE TRAIN PEOPLE TO FOLLOW PROCEDURE

… they stop.

When a situation is notcovered by the SOP …covered by the SOP …

THE PROCEDURE REPLACES THINKING

R d SOP t th Reduce SOPs to the essential few; then cut essential few; then cut

that in half.

Value Stream Maps and kaizens

THEN SIMPLIFY WHAT’S LEFT

DEVELOPMENT CELLS

MatrixHierarchy

Coordination & communicationFlexibilityComplexity: accountability

Authority & control over resourcesFunctional specializationDistance: decision ↔ execution

RACI MODELOver specifying decisions

Adding ‘everyone’ to the model RACI MODELKeep everyone ‘engaged’

HIERARCHY TO MATRIX …

Evolved Matrix Organization:Portfolio Lifecycle Development Cells

Evolved Matrix Organization:Portfolio of work vs a projectSmaller core team; self selectingAbility to move resources

Small Core Teams (cell)

Small Core Teams (cell)

Portfolio Lifecycle Management Function

yAbility to deviate from process/rulesAbility to make strategic investments

Internal & External Support Teams

Role vs structure driven

SUPPORT team

Investments:Longer term commitments

Return:Start-up responsivenessLonger term commitments

Access to core team membersPlan/process deviationsResponsive to escalations

Start-up responsivenessUltrahigh outputTeam ownership

sp s s sAccept higher failure rates

EVOLVING TO DEVELOPMENT CELLS