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Opening Session
Summary - CEO and Chairman Bill Weldon "You represent the leadership of Johnson & Johnson and the future of the company is dependent on the actions and decisions you make," he said. He called Johnson & Johnson an "outstanding organization that is performing at an outstanding level." "If you ever wanted to be at a place to accomplish great things, I can't think of a better place than right here, right now," he declared. Weldon reviewed the four key strategic principles on which the business is managed and commented on the significance of each: Broadly based in
human health care - "Being broadly based is one of our most important advantages
over the competition," he said, citing many companies which divested
pharmaceutical or device units to be more singularly focused. Johnson & Johnson
did not pursue that route, and Weldon maintained that the strategy helps the
company address unmet medical needs. Innovative Product Solutions - Though skeptics say that pharmaceutical companies don't want to cure disease, but would prefer treating it to maintain their business, Weldon disagreed, mentioning such diseases as obesity, AIDS, diabetes, cancer and others. "We want to make people feel better, but nothing would make us feel better than curing disease," he stressed. Flawless Execution - Emphasizing the importance of patient care, Weldon cited the need to maintain the highest quality and on-time delivery in every product and process. He mentioned the importance of toolssuch as Process Excellence to help achieve flawless execution. Collaborations - The ability to converge devices and drugs represents just one collaborative opportunity to address unmet medical needs, Weldon declared. Leadership & People - Johnson & Johnson offers a premium culture for the development of leaders, Weldon said. With a renewed look at the Global Standards of Leadership and an emphasis on diversity, the Company counts on developing future leaders to guide the business. Weldon challenged the participants to offer their best ideas and thinking, reminding them that, "We don't have all the answers." His vision of the future is to maintain profitable growth, pointing out that sales tripled in the past decade. "Why should our sights not be on even more?" he queried. With the new Perspectives program focusing on globalization, Weldon noted that we were just beginning to understand how to become truly global. As a great global company, he asked, could we not find a cure for AIDS, which is growing nine percent a year, or cancer, which afflicts 42 million people and causes 12 percent of deaths? Could we find a way to cure heart disease, the leading killer, with 17 million deaths? With companies like Cordis, Centocor and Scios, can we hope to eradicate these deadly diseases? Weldon urged the company to take on the biggest health care challenges and to see itself in a bigger context. "What other company is capable of taking on the biggest challenges in health care?" he asked. "Providing better health care to people around the world continues to be our mission," he stressed. He also urged participants to see themselves in the patients who benefit from the products we sell, from helping mothers and babies bond to helping patients with disease - which, he said, "creates the greatest satisfaction." To emphasize his point, Weldon introduced Dr. Nancy Snyderman, vice president of medical affairs, who brought three patients onto the stage to discuss their medical situations and experiences with a wide variety of products from the Family of Companies. As a practicing physician, Nancy could relate to the care the patients received and had them relate the way company products saved and improved their lives. "These people represent the inspiration of everything we do," Weldon reminded the audience. Despite criticism of the industry, he urged participants to reflect on the stories of these patients and the millions of patients our products have helped. "We are truly only
limited by our imagination," he concluded. <<...OLE_Obj...>>
James Lenehan -
"Winning in a Super Smart World" We face customers and competition who are getting smarter, and to win in a super smart world means that we must keep rapidly improving. Each of our customers - the shoppers, retailers, patients, health care professionals and government agencies - are asking better, more informed questions. And the competition must never be underestimated. "Inertia is the curse of a successful company," Lenehan emphasized. "Products, methods and structures that worked in the past won't always work in the future." Technology is moving fast and we must adapt to achieve the goal of double-digit growth, he added. "This is an era of invention and new possibilities," Lenehan stated, citing genomics, advances in surgery and materials, in visioning systems and medical devices. With spending at $4 billion in 2002, our investment in R&D is aimed at taking advantages of these concepts and much more. That underscores other strengths - our strong cash flow, which gives us flexibility and has enabled us to invest more than $29 billion in new external businesses and technology, and our exceptional scientific community. "The future is coming at us at the speed of a fast approaching racecar, but we can win the race if we look far enough ahead, with the right training and the right vehicle. Our drivers for growth are Innovation, Flawless Execution, Collaborations, and Leadership and People," he said. "We believe that Johnson & Johnson is the best, and with the help of associates around the world we will win in this super smart world." To see the full text and presentation graphics of the Lenehan address, go to The Summit on Growth Web site at: <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/proceedings?readForm&date=05/13/2003>. Michael Dormer -
"Innovative Product Solutions" "We stand on the brink of a new era in health care," Dormer stated. Decoding the human genome, which has been compared to the discovery of fire in terms of impact, is an example of transformational technology. Incremental development is also vital as we look for opportunities to reinvent established markets and create new ones. He said that as leaders, we must be seek solutions, take risks, and create innovation. By doing so, we will live up to our growth expectations, touch more people, and transform more lives. That is the power of innovation. In closing, Dormer said that our businesses will change but decentralization is the fundamental reasons for our success. We truly are dependent on ideas, initiatives, and entrepreneurialism being fostered at the operating company level, where there is a better understanding of the complexity of our markets. He called for adherence to all four imperatives to achieve success and told the audience that as leaders their role is to drive innovation by inspiring and challenging your people to take intelligent risks, champion new ideas, seek fresh solutions, and create new markets. "I am excited about the bold, unexpected and powerful innovations that Johnson & Johnson has yet to create. I am excited about the lives we will save, and the customers we will satisfy," Dormer said. "We can do that with innovative product solutions. When we do that, the future is in our hands." To see the full text and presentation graphics of the Dormer address, go to The Summit on Growth Web site at: <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/proceedings?readForm&date=05/13/2003>. Bob Darretta -
"Taking Risks" The precedent was set with General Johnson, former Chairman of Johnson & Johnson, who made the first global expansion of the Company in the 1920s and made key pharmaceutical acquisitions with McNeil Laboratories, Janssen Pharmaceutica and Cilag-Chemie in the late 1950s and early 1960s. "Those were bold and costly moves at the time," said Darretta, noting that their combined cost was the equivalent of 13 percent of the value of the corporation at the time. However, today the pharmaceutical business represents half of our sales and two-thirds of profits, proving the long-term value of these acquisitions. Darretta characterized Johnson & Johnson as an "intelligent and aggressive acquirer," with 60 acquisitions in the last decade. Eight of those acquisitions cost more than $1 billion, and combined they totaled $28 billion. However, he noted, "These are important sources of future growth and shareholder value." Development and success takes time and financial investment, Darretta said, citing the 20-year development of SPLENDA and the investment of $350 million into Ethicon Endo-Surgery. Darretta called pharmaceuticals the Company's riskiest investment. While individual products can become important businesses, only one in 20 new molecular entities makes it to market, and it costs about $800 million to reach that point. However, he stressed, "We are willing to embrace risk, and we know how to do it in a measured and prudent way." He also pointed out, "We have the resources to invest and stay the course to advance innovative product solutions." Mitigating risk in the way products are developed, employing Flawless Execution and realizing that disappointments are inevitable are the realities of success. "Our approach to decision making is consistent with decentralization," Darretta said. Decisions are often made at the local level by people who know the technology and the marketplace, to reduce the risk of a bad decision. When decisions have to be made at a higher level - such as the Group Operating Committee or Executive Committee - it is usually because of the sheer size of the investment. "Our funds are limited, and we need to choose the best projects and be diligent in assessing them. That is where the importance of having a champion is critical. "As a project champion, you are taking on personal risk, and that takes courage," Darretta admitted. "But the Executive Committee has a bias to say yes. We understand that the risks associated with omission are typically far greater than those associated with action," he maintained. The criteria used for making judgments include such factors as whether the project creates shareholder value, if the rate of return is commensurate with the risk, if it enhances growth prospects and is surrounded with intellectual property. "There is also a subjective judgment," Darretta explained. Criteria includes knowledgeable project champions with command of their facts about technology and the marketplace, who are objective and realistic about their organizations and the competition and who have sought out expertise from R&D, regulatory, legal and finance. "Most of all, we look for people passionate about their proposal, believers with the courage to fail and the confidence to win." He urged participants and their organizations to come forward with their ideas and suggestions. "Our future is in your hands," he concluded.
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Employees can access The Summit on Growth Web site at <https://thesummitongrowth.jnj.com> to find daily summaries and photos of Conference proceedings, detailed accounts of speaker presentations, the full text of selected presentations and video highlights of each day. The Conference agenda, imperative descriptions and related discussions are also provided. A live webcast of Bill Weldon's opening remarks was held on the evening of Monday, May 12. This broadcast as well as summaries of each day's events are provided on the site as on demand webcasts, which means employees can watch these programs from their computer at their convenience. A program guide detailing the broadcast schedule is available on the site under the Proceedings section. Recently added presentations from Tuesday's events include remarks from Vice Chairman and President Jim Lenehan, Company Group Chairman Mike Dormer and Executive Committee Member and Chief Financial Officer Bob Darretta. Check the site regularly for daily updates. Please note that certain sections of the site are password protected and are only intended for attendees of the Conference. To access The Summit Web site, go to: <https://thesummitongrowth.jnj.com>.
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Pharmaceuticals
There are currently five drugs with sales of more than $1 billion annually: RISPERDAL®, PROCRIT®, REMICADE®, DURAGESIC® and the collective oral contraceptive business, as ORTHO EVRA® has moved swiftly to the position of the second most prescribed oral contraceptive. TOPAMAX®, indicated for treatment of epilepsy, is expected to join the $1 billion group since last year sales increased by 44 percent. The drug has been filed for approval for the treatment of migraine headaches and could be filed for up to 12 more indications. For drugs whose patents will expire in the next few years, new follow-up products are on the way. In addition, the group is creating new platforms for diseases such as cancer, HIV and heart disease to bring better health care to patients. Research is focusing on a balance in the types of research done to address unmet needs with our own scientists as well as strategic in-licensing. Speed and quality are critical. By profiling patients genetically, it is possible to increase the median survival rate significantly. Dr. Peterson noted that the pipeline currently includes 105 projects in late drug discovery, 76 in early development and 60 in full development. New techniques that enable drugs to work directly on tumors without affecting healthy tissue, and new testing techniques are being employed in the research process. All of these activities are designed to continue the cycle of innovation and introduce innovative medicines to improve patient care. To see the full text and presentation graphics of the Pharmaceuticals address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/E8D036315414401785256D26007D0C12?openDocument>. Consumer &
Personal Care
The Consumer &
Personal Care group has devised a four-part strategy for continuing this growth:
Skin care has exhibited double-digit growth rates, thanks primarily to superior functionality, a stronger scientific base, better technologies and strategic patents. Soy-based moisturizers (AVEENO®) and copper peptide (NEUTROGENA® VISIBLY FIRM(tm)) are just two examples of the innovative product ingredients. Growth in the skin care business will be driven by new technologies, an increase of credibility among consumers and skin care experts, synergies between prescription and over-the-counter products and a broader geographic presence. The baby care franchise continues to be a strong contributor to revenue and growth due to rapid product innovations, acquisitions, superior regional insights and the growth of adult usage. Future growth will come from new product areas, developing markets, increased all-family use and additional professional endorsements. Wound care is one of the oldest but most consistent businesses, thanks in large part to innovation. Recent success includes the new BAND-AID® Brand Liquid Bandage, now the number one selling wound care product in the U. S., and the addition of the COMPEED® line of products in Europe. The clean-and-treat market, with the recently acquired CORTAID® line, will add to growth potential. To see the full text and presentation graphics of the Consumer & Personal Care address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/02B4FDAEF60E236185256D26007D46EA?openDocument>. Consumer
Pharmaceuticals & Nutritionals McNeil, acquired by Johnson & Johnson in 1959, remains the most successful over-the-counter company in the world, with the highest number of prescription-to-OTC switches in the world and consistent, high profitability. The company has expanded into foreign markets, such as Europe and China, with this growth driven by the OTC products. The consumer pharmaceutical business includes a number of potential Rx-to-OTC switches in the coming years, as well as technological improvements in existing products. DITROPAN XL® is just one of the many prescription drugs which hold promise as a future OTC product. TYLENOL® 8 Hour is an example of the innovations driving existing brands to sustained and even increased profitability. A new maximum strength formulation of prescription PEPCID® will provide heartburn sufferers and their doctors with a new, more powerful option. Project Nx, a next-generation manufacturing platform, will revolutionize the way McNeil does business, Perkins said. This new process, which requires significantly less space, cycle time and labor, will lead to new drug delivery methods and a way to go "from powder to pill" in just four seconds. Specialty pharmaceuticals are successfully targeting niche audiences such as pediatrics, pain and hospital/acute care through the external development and internal commercialization of products. Products such a CONCERTA® and FLEXERIL® are strong performers that offer excellent growth potential. Nutritionals, based upon sound science, provide an opportunity to market products to both consumers and health professionals. VIACTIV®, the fastest growing brand of calcium supplements, and SPLENDA®, the number one low calorie sweetener in the U.S., are notable products in a segment that will feature new collaborations with LifeScan, Inc., a new line of medicinal foods and an expansion into international markets. To see the presentation graphics of the Consumer Pharmaceuticals & Nutritionals address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/A5D9034FA213E43385256D26007D8D0E?openDocument>. Medical Devices &
Diagnostics Discussing MD&D innovations, Dormer explained that the group is changing the game with products like the CYPHER(tm) Sirolimus-eluting Stent and complex manufacturing facilities with tremendous proprietary knowledge. With 22 percent average growth in profitability, the segment's sales performance is enabling it to extend its lead as the number one company within the $170 billion dollar MD&D market. Dormer also attributed the group's strength to an active acquisitions and divestitures program, with more demanding technology and the exit from the lower growth, more commodity-like areas of the market. Among the areas for opportunity, Dormer noted collaboration across the Company's other groups, more drug coated stents, noninvasive and continuous blood glucose monitoring, and a focus on the special needs of people with disabilities. To maintain leadership, the group's objectives include achieving consistent double-digit operational revenue growth, focusing on large, higher technology product categories, and growing income faster than sales through operational efficiency and leveraging. To see the full text and presentation graphics of the Medical Devices & Diagnostics address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/672FF240CF0844B185256D26007DD19C?openDocument>. Morning Summary - Jim Lenehan <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/8EAA281E7BAE67A885256D26007EE3AE?openDocument> - Vice President of the Board Jim Lenehan concluded the GOC sessions by summarizing the visions of each respective GOC and the role that the four key imperatives play in the success of those visions. He noted that Brian Perkins and his Consumer Pharmaceuticals & Nutrionals group are positioned for the future. By focusing on nutritional products such as VIACTIV®, innovative products such as the Nx, next generation manufacturing platform and strong collaborative efforts, they are poised for prosperous growth in the years to come. Colleen Goggins and her Consumer & Personal Care group have a vision of combining technological advancement w/ consumer-relationship management and professional support. Lenehan noted that in addition to staying at the top of revenue and income growth charts, what makes the Consumer group so special is that its brands have strong staying power, which enable the businesses to endure and flourish over many years. Lenehan noted that in Medical Devices & Diagnostics, Mike Dormer and his group are placing a heavy emphasis on the area of innovation. Lenehan stated that Johnson & Johnson needs to develop innovative products quickly to ensure its future growth in all markets. He provided the example of the work being done between the Pharmaceutical and Diagnostic groups as an example of the types of collaborative efforts that we will help all of the GOC sectors grow. Within the Pharmaceutical business, Lenehan noted that Christine Poon and Per Peterson are making solid advances in the areas of Innovative Product Solutions and Collaborations. With such products as the E-TRANS® transdermal for delivering pain medication, Poon and Petersen are fostering new collaborative methods for Pharmaceutical growth and development. He likened this type of collaborative effort to that of Robert Wood Johnson and Fred Kilmer, who gave the Company a real boost with their combined efforts in developing the first antiseptic bandage. Lenehan also stated that because of these collaborative efforts, he believes that Johnson & Johnson is the "best positioned company in the world" to take advantage of this area of growth. Lenehan encouraged all of the conference participants to take these lessons back with them as they map out their future company visions. He remarked that everyone was at this conference because they are leaders in their respective groups and in order to exemplify good leadership they must not only help their colleagues direct their efforts appropriately, but they must also provide encouragement to employees so that they can achieve their objectives. Lenehan further commented that persistence is a big part of leadership and that there is always a way to accomplish a goal as long as you have the courage to act on your beliefs. General Session - "Our Credo" - Bill Weldon, Michael Josephson and Roger Fine <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/44B4BE24AE4F677885256D26007EF834?openDocument> - Our Credo was the focus of the Wednesday general session, kicked off with a short video with Bill Weldon that focused on making Credo-based decisions. In his opening remarks, Weldon noted that the Credo made him a better person. Michael Josephson,
Ethicist - Living the Credo: Easier Said Than Done Josephson also discussed the results of a series of questions posed to 900 executives attending a high-level training Johnson & Johnson training course a few years ago. The assessment found that on every question between five and 18 respondents selected an option that was a clear violation of the Credo and could get their company into trouble. Among other responses, nearly half said that most employees at the middle and lower levels of the Company do not consider the Credo frequently in making decisions. Josephson explained that to protect their companies managers must intensify and systemize efforts to instill and reinforce in all employees an understanding of and commitment to the Credo and the six core ethical values it embodies. He added that though the Credo does not always give specific direction, it tells employees that, as a company, they should strive to be trustworthy, to respect all people, to be responsible to constituents, to be fair in dealings, to be caring of the people they affect, and to be good citizens. He asked participants to bring back to their colleagues the message that Johnson & Johnson employees are empowered to be, and expected to be, good and decent people who are honest, fair, respectful and responsible in all their business dealings. "I hope you will leave this meeting even more proud of your membership in the Johnson & Johnson family and more committed to advocating the wisdom and virtue of living the Credo every day in every decision." Executive Committee Member Russ Deyo introduced a panel to discuss the Credo, moderated by Michael Josephson. Panelists included Jo Ann Heisen, Executive Committee member and CIO, Vladimir Makatsaria of Johnson & Johnson Medical in Russia and Sabine Dandiguian of Ortho Biotech Europe, as well as Deyo. Panelists disagreed with the notion that the Credo applies only in the U.S. Sabine noted that her company understands that it cannot do certain things the competition does because of the standards in the Credo, but panelists agreed that the standards bring other advantages in reputation and performance that the competition lacks. They discussed the need for having alternate plans and solutions for potential problems, and they agreed on the importance of maintaining balance between work and life. To see the full text of the Josephson address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/721C13A5954B745A85256D26007E0EA5?openDocument>. Eric Milledge,
Company Group Chairman, LifeScan - The LifeScan Story Within two and a half years of the incident, LifeScan has made and continues to make tremendous progress. The company completed two successful third-party audits and received ISO re-certification. It also has regained its number one spot as the supplier of products recommended most often for people with diabetes. Milledge attributes the company's progress to its commitment to operate beyond compliance and to management's active assurance that the best compliance infrastructure is in place. He also stressed the importance of working with Corporate partners - including quality and compliance services, regulatory and legal - and staying in touch with customers - patients, health care professionals, regulatory agencies and trade and professional associations. Above all, Milledge emphasizes that a commitment to excellent quality and compliance systems needs to be a central part of every franchises' DNA. "After all," he concluded, "we owe it to our customers, as well as our employees and stockholders. At the end of the day, it really is all about living up to the principles embodied in the Credo." To see the full text of the Milledge address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/EEE375582A56C1F985256D26007E250F?openDocument>. Roger Fine -
"Responsibility" "This philosophy was a revolutionary idea then and remains so today, that business has a social responsibility to its constituencies," Fine noted. Commitments to others come first in the Credo, he pointed out. General Johnson maintained that companies have a commitment to society and if they don't fulfill that responsibility, they will forfeit the freedom to be in business. The General, in writing his "management philosophy," said the duty of a leader is to stimulate the intellect of other; to develop them and sustain their talent. Fine noted five
fallacies about the Credo, which he refuted: · The Credo is an American idea, applicable only in the U.S. Fine disagreed. "The General's view was a world view," and he wrote the Credo listing commitments to customers around the world, to the communities in which we live and work "and the world community as well. · The Credo can't work in a company of nearly 110,000 people. "Is there a finite capacity for ethical conduct?" Fine asked. In fact, size makes it easier to make decisions, he said. In a $40 billion company, even a decision for $150 million is not as important as reputation, and our size makes it easier for us to make ethical decisions in favor of customers and employees. · In the real world numbers are more important than the Credo. "As leaders we have a special obligation. The Credo is not a one-way street," Fine declared. "We have a responsibility to create a space in which it is safe for people to carry out Credo and make difficult decisions. When they do that and make a decision that results in missing a forecast, it is our duty to protect them." He cited the example of PROPULSID®, formerly a $1 billion product. When Bill Weldon, then heading the Pharmaceutical business, learned about adverse effects associated with the drug and informed then CEO Ralph Larsen and the Executive Committee, he was given latitude to make a decision based not on its impact on sales, earnings and stock price, but based on what is best for patients. Larsen gave Weldon the space to make the decision and the support to carry it out, Fine recalled. · If I didn't have to worry about the Credo I could really grow my business. In fact, not following high ethical standards has destroyed countless businesses, Mr. Fine said.
Johnson & Johnson will never have anyone in charge of the Credo, Fine said, since it is our individual responsibility to uphold its standards. "Everything good in the business is caused by the Credo; everything we can do for our customers and our employees," he asserted, calling it "a roadmap to make this a great business forever." He encouraged participants, "Whether you are here for 40 years or four years, the biggest favor you can do is to make the Credo who you are. You will stand out and be admired and trusted and you will succeed." We have to use the Credo to build a bigger and better business and turn it over to the next generation, he said. "Lead by example," he stressed. "Actions speak louder than words."
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General Session -
"Collaborations" Attorney Vernon Byrd was called on to present the case for collaboration at Johnson & Johnson, and he was joined by fellow attorneys Ana Garcia-Bello, who argued in favor of collaboration, and Harman Grossman, who served as devil's advocate. They interviewed Professor Warren Bennis, an expert on collaboration in the workplace, who stated that collaboration is important because, "none of us is as smart as all of us," and that the full answers are rarely found in any one unit. Bennis pointed to the CYPHER(tm) Sirolimus-eluting Stent as an example of how successful collaboration can be at a company as large as Johnson & Johnson. Bob Falotico and Sam Liang from the CYPHER(tm) team detailed the "road show" they conducted to gather support and advice for the development of the CYPHER(tm) project. They presented their project to a number of different operating companies, which led to an extensive network of contacts that the team relied upon when challenges arose during the development and regulatory stages. Gary Fischetti from ETHICON, INC., Leona Brenner-Gati from COSAT and Roy Davis from Advanced Diagnostic Systems discussed how their organizations have taken part in collaborative efforts such as AllAboutArthritis.com, BAND-AID® Brand Liquid Bandage and Project XO, a initiative to address the growing issue of obesity. Company Group Chairman, EMEA, Alex Gorsky described the need to collaborate with external organizations, specifically with government health agencies. He stated that collaborating with governments is critical to success, and the effectiveness of such discussions often determines reimbursement and pricing policies. Grossman and Garcia-Bello debated the ability to overcome one of the biggest obstacles to collaboration: money. They welcomed Vice President, Pharm GOC, Corporate Staff, Dave Sheffield and Vice President, Group Finance, Annie Lo, who recounted the collaborative strategies used in their segments. Lo discussed the extensive use of co-promotions for consumer products such as VIACTIV® and Sheffield discussed the implementation of consumer relationship management systems to share consumer information and sales strategies among pharmaceutical salespeople. Lo and Sheffield invited participants to seek them out as partners in facilitating collaboration. Byrd spoke with patient Bob Fowler about his experiences with Normal Pressure Hydrocephalus and the way his life has changed since he as received treatment with Codman & Shurtleff, Inc., products. Fowler noted that the participants were at the meeting because of Johnson & Johnson, while he was the only person in attendance who was "alive because of Johnson & Johnson." Fowler is now collaborating with Codman & Shurtleff, Inc., and Johnson & Johnson to raise awareness of this often misunderstood condition. Idea Pods - "Collaborations" <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/E4E74E713572FE5C85256D28000337FF?openDocument> - In "Idea Pods" participants had an opportunity to hear speakers and ask questions. Warren Bennis, a distinguished university professor, spoke about the secret of great groups and powerful partnerships. During his presentation, he noted that companies must embody the notion that "no one of us is as smart as all of us." In today's global environment, Johnson & Johnson's decentralized structure poses an interesting collaborative challenge. Bennis pointed out that most companies fail because their leadership lacks the adaptability to abandon their ego for the sake of their organization. The problems that our operating units and overall company will face moving forward are beyond any one individual. He noted that historically, every significant accomplishment can be attributed to the collaborative efforts of small groups. Overall, effective, collaborative communication, even if redundant, will result in the highest success rate for our company. Bennis closed with
this final thought: "We are all angels with one wing and we can only fly if we
rely on one another."
Tap New Customers To see the presentation graphics of the Gorsky address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/6DAC5AC01840AC3385256D280002C6B9?openDocument>.
Global President, Personal Products, Michael Sneed introduced Doug Degn and Ronnie Hoyt from Wal-Mart to discuss some of the ways that their company works to collaborate with external partners. As a retailer, they are heavily focused on working with suppliers to ensure that products are delivered in the fastest, most efficient manner. To this end, Wal-Mart has devised three guidelines that shape the way collaborations with suppliers are handled. Wal-Mart strives to "speak a common language" with suppliers. Degn and Hoyt recognize that a clear and consistent channel of communication with suppliers is the basis for a successful relationship. This allows them to target and eliminate inefficient aspects of the supply chain, thus fulfilling Wal-Mart's commitment to affordable customer prices by streamlining delivery. Degn and Hoyt also work to attain "same page thinking," making sure that suppliers' strategic and financial planning priorities are in line with those of Wal-Mart. They acknowledged that, in formulating a business plan, deciding which ideas to move forward is often the most difficult part. Therefore, it is imperative that all parties involved can reach a consensus on which ideas offer the most promise. Finally, the ability to "execute the basics" efficiently fosters collaboration between Wal-Mart and suppliers. Taking care of issues that often occupy a supplier's time and attention, such as inventory issues, through improved reporting and streamlined processes allows both parties to devote more time and resources to achieve to a higher level of collaboration. Dr. Nancy Snyderman hosted an Idea Pod session with members of the CYPHER(tm) Sirolimus-eluting Stent development team Sam Liang, Bob Falotico, Melanie Barstad, Ruth Voor, Shannon Salmon and Kathy Wengel. The group recounted how they came together from across functional and even company lines to take the new device to market. Charged with the mission of finding the "holy grail" of stent technology, an effective means of preventing restenosis, the group collaborated both internally and externally to develop the technology and bring it to the marketplace. They knew that they needed to treat the problem locally with a drug, but the issue of finding the right drug treatment remained. A collaboration with Wyeth, which had been developing the Sirolimus drug but lacked a delivery method, began when members of the team viewed data that showed the drug as an efficacious treatment in a laboratory study. The collaboration became internal at this point with team members turning to Johnson & Johnson colleagues at companies like Janssen-Cilag for advice on how to conduct trials for a medical device that also possessed a pharmaceutical component. As the trials continued to show progress, it became essential to work with governmental and regulatory affairs groups to ensure that the product would be approved for use and would be subject to reimbursement. The team commented on the aspects of collaboration, both positive and negative, that accompanied this ambitious project. While cautioning that decision making still needed to reside, ultimately, with one person, they noted that it was the team aspect that attracted exceptional individuals, and that many people, "rose to the occasion and became exceptional." General Session - "Leadership & People" <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/7C8E730460BDD34785256D2800034E38?openDocument> - The Leadership Vision In her introduction to the final afternoon session of the conference, Worldwide Pharmaceutical Group Chairman Christine Poon noted that it was fitting that the Leadership and People session was the final Imperative for Growth because none of the other three imperatives can happen without Leadership and People. "Leaders know how to align other people behind their dreams and get them mobilized so that they stop thinking about what they can't do and start talking about how to get it done," Poon stated. Leadership is individual because leaders are all about developing people, and developing people takes trust and time. Leaders have an attitude that is optimistic, and above all else, leaders create a tone around them that's infectious. Poon reflected on Our Credo, which says that everyone must be considered as an individual, respected for their dignity and recognized for their merit. She noted that Our Credo tells us that employees must feel free to make suggestions and air complaints. The culture of leadership is a culture that encourages diversity, different types of thinking and allows people to speak up when they disagree because leaders know that it leads to better decisions. In closing, Poon noted that each of us at Johnson & Johnson can strive to achieve an even higher level of leadership, no matter what our geography, our franchise or the job we do. And when we are able to do that, we'll create the future, she said. To see the full text of the Poon address, click here <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/7E323CA9C1DABABD85256D28000306F9?openDocument>. Benjamin Zander -
"A Conductor Looks at Leadership" The power of the leader - or the conductor - is his or her ability to make others powerful. Zander described the first rule of leadership as "Rule Number Six," or "Don't take yourself so damn seriously." What are the other rules? There are none. To reinforce Rule Number Six to himself, Zander offers his players a sheet of blank paper on which they describe how he can empower them to be their best. He emphasized that to draw exceptional perfomance from people who may not seem so capable, a leader must never doubt the capacity of others to accomplish whatever he or she dreams for them.Zander explained that as a teacher at the New England Conservatory of Music, he gives everyone an "A" on the first day with one condition: they must write about who they will have become by the end of the course that will justify the grade. As leaders, he said, we are always giving out grades, and we should give out grades as the possibility for others to live into not upto. The "A" doesn't overlook differences in talent and effort; it instead helps the leader get at what is unique in people and what their dreams are. To broaden the definition of success, Zander described the "Contribution Game," an exercise in which you convince yourself that you are a contributor, then go out and contribute, day after day. Thinking of yourself as a contributor creates vision. Unlike possessing goals, which can be rewarding when you win, possessing vision is enlivening. Vision is a guiding force behind all great endeavors, it encourages great performance, and it creates a sense of possibility. To Zander, a leader moves people from the "Downward Spiral" and into the realm of "Radiating Possibility." In the realm of Radiating Possibility, there are no steps and one is always encouraged and excited by the unexpected. This is where vision resides, while goals reside in the Downward Spiral. The Downward Spiral is the world of fixed reality, of worry, of must and need, of winners and losers, of blame and fault. The aim is to be a leader in the Art of Possibility. In rousing participants to be leaders, Zander concluded, "You are not about the bottom line, you are about the possibility of people living with glorious health." Idea Pods - "Leadership & People" <https://thesummitongrowth.jnj.com/JJCUS/CCOM/WWMC/wwmcdata.nsf/0/FCE451A27476E6AF85256D28000360AE?openDocument> - The Thursday afternoon sessions in the Idea Pods focused on leadership. Peter Miller, newly named president of Janssen Pharmaceutical Products, L.P., U.S., moderated a panel of leaders discussing their experiences. He said that leaders have to align the organization and have a vision that is inclusionary. Toon Overstijns - Managing director of Jansen-Cilag, New Europe, explained that the business in central Europe was only at was $100 million in 1998 and there was not much interest in the area. With the support of then Company Group Chairman Valentino Tanca, Overstijns was able to convince finance and other key players of the potential of the market. Today it accounts for $600 million in sales. The key message was that a team can take a risk if it has the trust of management. Sheri McCoy, president of US and Global Baby and Wound Care, had a different experience. As head of the CLEAN & CLEAR® franchise a few years ago, she had authority only for the U.S. business but needed to build the brand globally. She realized that the brand could not be marketed in every market in the same was it was sold in the U.S. Some of the line was too sophisticated for some markets and the same media was not available globally. The team behind the brand realized that a "one size fits all approach" would not work and tailored different approaches for different markets. The brand advanced to profitability in every market. For Martin Madden, misalignment between the R&D organization he heads at Ethicon Endo-Surgery and the operations group at the company was causing problems, most of which he felt came from his area. He teamed up with Jim Litts, head of operations, and they took a "no excuses approach." By working closely together, the respective organizations gained respect and trust for each other and created a stronger organization. Jay Chang, International vice president, Janssen-Cilag Asia-Pacific, recalled that when he was at Janssen Korea, the launch of a new gastrointestinal product presented challenges in the market. He felt strongly that the market potential was untapped, and that the product would succeed. He encouraged the team to succeed even as the forecast was raised. With the support and trust of his management, the launch was successful. The common thread is that leaders who approach challenges by listening and collaborating, and who have earned the trust of their management will overcome challenges and build their businesses. In another session, Tony Vernon, president of Centocor, Inc., introduced five panelists who recounted the ways they have overcome business obstacles through effective leadership skills. Guy Lebeau, worldwide president of Cordis Neurovascular, recounted how he approached leading a business with which he was unfamiliar. His approach was to spend a significant amount of time with his senior personnel, speaking with them in depth about their dreams and aspirations. In doing this, he was able to make a connection with his team and earn their trust. He stated that his previous experience as a surgeon meant that his initial approach was one of complete confidence. However, in order to be a good listener, he claimed that one needs to have some doubt in the fact that you are always right. Lebeau urged to audience to allow a certain amount of doubt, as he did, in order to become a better listener. Mark Guinan, vice president, global research & development finance and Chief Financial Officer for Johnson & Johnson Pharmaceutical Research & Development, L.L.C., encountered a number of challenges when he took over his position. Late-stage clinical failure and a need to change business processes were offset by a high level of productivity in the discovery department. Guinan needed to adapt his business approach to the unique characteristics of the pharmaceutical sector, so he adopted a mindset similar to the business plan for a start-up company. By positioning his department as entrepreneurs and internal approval groups as potential venture capitalists, he created a vision of success among his staff, with members becoming personally invested in the success of the drug formulations on which they worked. Julie McHugh, vice president global biologics strategic marketing for Centocor, Inc., struggled with maximizing the potential for REMICADE®, which was indicated for Crohn's disease and rheumatoid arthritis. Although many had optimistic but modest expectations for the drug, McHugh drew on the dramatic effects the treatment had on patients for the motivation to position REMICADE® as a platform to eradicate disease. Her team's efforts lead to an easier reimbursement process, a counseling program for physicians and a growth in sales to over $1 billion worldwide. Juan Bachs, president of Johnson & Johnson * Merck Consumer Pharmaceuticals Europe, faced the challenge of expanding the business into a number of different European countries, each with a different mindset. Bachs devised a franchise system that called for representatives in each country who were accountable to the business in the country and to the company as a whole. This system opened communications with employees, which led to healthy debates on the most effective ways to run the business. Jose Mora, international vice president Latin America & Puerto Rico, was always told that it would be impossible to launch the Alzheimer's drug REMINYL® in Mexico because it was a small market with no reimbursement, two existing competitors and the threat of counterfeit products. Rather than be limited by previous experience, Mora strove to market the drug to an audience that was larger than the traditional Alzheimer's market in Mexico. By marketing REMINYL® through general practitioners, the drug went from eight percent market share to 30 percent market share in one month and significantly all marketing expectations. In another Idea Pod, a the panel discussion led by Company Group Chairman Karen Licitra focused on the experiences of Johnson & Johnson leaders that exemplify all of the qualities that have been discussed in the afternoon session. Global President, of JOHNSON'S®, RoC® & EVIAN® Franchises Georgia Garinois Melenikiotou helped turn around the RoC business in France 10 years ago. When Johnson & Johnson initially purchased RoC , it had solid brand equity associated with the company but a poorly run business practice. Garinois Melenikiotou demonstrated significant leadership ability when she stepped in and attempted to turn the company around by creating a new vision. Using a solid plan consisting of considerable consumer and market testing, she and her small group of colleagues at the time were able to convince management to support their strategy. Once implemented, the plan accounted for an immediate increase in franchise sales. Garinois Melenikiotou stressed that persistence and the leadership development of her five group members were the key contributors to their success, during the crisis situation. PSGA President Chuck Austin recently had joined the newly formed Pharmaceutical Sourcing Group - Americas when the organization was asked to help facilitate the product development and launch of the ORTHO EVRA® in 1999. Austin and his group had some concerns about the approval of the product. They felt so strongly about this risk that PSGA invested $15 million to set up testing facilities, designed specifically for risk mitigation. Eventually, thanks in large part to Austin and his group, the product received approval to launch very close to its estimated launch date. Austin and his group's insistence to test the product and focus on their business objectives was extremely valuable to the successful launch of the ORTHO EVRA product. Managing Director of Ortho Biotech Products, L.P., Jane Griffith had been enjoying her position vice president of sales and marketing in Europe for eight months when she was asked to take on a general manager position with Ortho Biotech, U.K. In the previous year, the EPREX® line of Ortho Biotech had run into some problems in the U.K. She had a concern whether we should take on that challenge when she was enjoying such an enjoyable position within the company. She ultimately decided to take on that challenge, and is currently in the process of restructuring the company. Overall, she felt that she learned several key lessons along the way: Good support from
upper-level management is vital to making a tough career choice Several years ago, Vice President, Research & Development, Medical & Regulatory Science for McNeil Consumer & Specialty Pharmaceuticals Minnie Baylor-Henry was the director of regulatory for Ortho Biotech Products, L.P., when she received a letter from FDA explaining that Ortho Biotech needed to discontinue all PROCRIT® ads because us regulatory violations. She firmly believed that that the FDA made a mistake and she was willing to defend their position on the issue. Ultimately after several months, her persistence paid off, Ortho Biotech was cleared of all restrictions and allowed to continue its campaigns. Baylor-Henry declared that when you know that you are in the right and that you have the appropriate documentation, you should "stick to your guns" and fight for what you believe in. She further maintained that sometimes its going to be lonely and frightening, but if you are going to be a risk-taker, you have to be willing to take that chance. In another Idea Pod, moderated by Ignacio Larracoechea, Area Manager, Johnson & Johnson Consumer Products Company, a panel discussed their experiences in creating possibilities, inspiring their organizations, taking responsible risk, and achieving the vision. Sharon D'Agostino, global president, Johnson & Johnson Consumer Products Company, Skin Care Franchise, had an experience taking the newly acquired AVEENO® line and transforming it from a small, therapeutic brand to a line of products that consumers would use everyday. Her method for delivering on the aggressive goals was based on literally visualizing the success of the brand - how it would look, how it would feel - and getting her team to visualize that, too. Chong Siong Hin, vice president, Ortho-McNeil Pharmaceutical, Inc., recounted the challenge of growing a recently established pharmaceutical business in China from $1.2 billion in 1995 to $3.080 billion by 2000. A brainstorming exercise led to development of a four-day training session for the top 100 people of the organization and a simulation of the Long March of Mau, taking Chinese history and ideology into consideration. The 3.080-kilometer walk, which used the dollar amount goal, evolved into a charity walk-a-thon, bringing out the best in the community and imbedding the 3.080 into the public mind. While Asian financial situations and product issues delayed Xian-Janssen's achievement of its goal until 2002, the organization was inspired. Chong attributed the success to empowering people, learning from the history of the country and returning it, and ensuring that people are a part of the goal. Diogo Moreira-Rato, International Vice President, shared the Argentina Consumer Company's experience and survival through the country's biggest financial crisis where all bank accounts were frozen and defaults were rampant. While the crisis had a major impact on the company's ability to do business, the organization remained committed to the operation in Argentina and to its customers. Its approach was to sell only to those who could pay and restructured customers' debts. It endured with very slight downsizing and applauded outstanding performance through the crises. The organization successful rebounded after a loss of nearly 45 percent in sales. Michael Gowen, vice president, worldwide supply chain, Vistakon, described taking a successful business of Vistakon and moving it into the future with high technology and enhanced productivity. Employing a plan along with vision, the organization tapped into other functions across the company to think out-of-the box. From cutting store display creation turnaround time substantially to bringing in expert in specific functions, the organization has taken the business to new levels of success. |