Many medical device organizations have acquired highly political cultures over the years. They have become slow, irrational, and with low performance. Their focus is away from sales and from the customer. They are in some businesses (such as Spine) as a Titanic sinking slow but saved at the last minute by acquisitions.
In the past, they focused on growing, selling more, and launching new products. The culture was around the business. The rest of the departments served them as internal customers.
Today, with organizations focused on inorganic growth, their culture has changed. It is the moment of Compliance, Legal, Human Resources, and mainly, the Financial department. They prioritize an organization aligned with their values, their structure prepared for future acquisitions, and above all, financially optimized. These changes are probably necessary and maybe positive for these organizations.
However, it is difficult to change a business model that has been successful for so many years. For those who have lived through other times, the language was sales, market share, and customers. Now, we are talking about women’s quota, diversity, work-life balance, and compliance issues but less about the business and how to compete better. These are relevant issues, but when they become strategic objectives of the organization, they compete in time and resources with the company’s divisions.It leads to discontent, confusion, and lack of focus.
What are the signs of this new culture? They will look familiar to you:
- The image and the correction above the performance.
- Procedures and policies are the most important and above urgency.
- The organizational structure is above the individual people.
- Difficult to get clear and honest answers: Managers act like politicians trying to put you at ease but ultimately do not answer any of your questions: “It depends… I need to investigate that…”
Our Comments!
- When organizations lose focus on the customer and their needs, businesses that require it may have problems (Ex-Spine).
- Acquisitions save sales in the short term, but if the company is not in that business, it becomes difficult to implement synergies and optimize growth. Inorganic acquisitions are artificial and do not lead to continuous organic growth without the company’s commitment.
- When organizations focus on organizational, social, and political issues, employees take these issues as a priority and relevant and stop thinking about the business. Everyone works for the organization, sometimes ignoring the market and the competitive environment.
- Our comments can probably be too critical and maybe unfair. The world changes and companies must adapt their culture. Older generations have their vision of the business not fully aligned with the values present at that time in society and the markets. We see an example with social networks.
- Social issues are undoubtedly a success for all employees and society. It is an achievement that companies take better care of their workers and eliminate marginalization due to gender, race, or ideology. But, that should not distract a company from its fundamental objective, which is to be competitive and generate profit, which is a reason for being!
Your Comments!
! Now, it is your turn if you want! We would love to know yours! Please comment in this page or send us your feedback to : [email protected]
Let me propose some questions:
- Are the cultures of large companies moving away from complex businesses that require sales and customer involvement?
- Are we comfortable working for companies like this?
- Are these cultural changes successful? Will they be a problem in the medium term to be competitive?
- Is this article applies to your company and the spine market?
Thank you very much in advance for your participation!
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