Beruflich Dokumente
Kultur Dokumente
A case study
Received (in revised form): 18th August, 2000
Keith Rowland
was formerly Sales and Marketing Director for Mediprod UK and remains a senior sales and marketing executive in the
industry.
Brian Smith
Is the Managing Consultant of PragMedic, a consultancy which supports business planning in medical markets and a Doctoral
Researcher at Cranfield University School of Management. He is also Managing Editor of the International Journal of Medical
Marketing.
# Henry Stewart Publications 1469–7025 (2001) Vol. 1, 3 215–223 International Journal of Medical Marketing 215
Rowland and Smith
medical market in which they operate. competitive vice was made more complex
They were and are common problems and problematic by our presence in a large
facing many companies that count number of market sectors, each with their
clinicians and allied professionals as their own market dynamics. We also faced
customers and deem their products to be competitive threats to our profit, as well as
technically complex. simply our sales, in some sectors. These
First, there were those problems arising came variously from new entrants,
from the external macro-environment that substitutes and, in some cases, from
are sometimes remembered in the distribution channels that were
acronyms PEST or STEP or SLEPT consolidating and becoming more
(social, legal, economic, political and powerful.
technological). These were problems that In terms of our customers, we observed
impacted on Mediprod UK, but over important changes in needs-based market
which we had no control. In our case, segmentation and the nature of the buying
they included some technological processes. Generally, these were moving
developments in clinical practice, changes away from a simple sale to a single decision-
in social expectations of healthcare systems, making clinician towards a consolidated
changes in legislation concerning decision-making process involving many
regulation and trading laws, and many other people in addition to the clinician.
other small but influential changes. Perhaps Operating in the UK, this trend was
dominant among these were the combined exacerbated by the near-monopoly buying
political and economic changes that were power of the National Health Service,
increasing demand for proven cost- which controls 85 per cent of all UK
effectiveness across all market sectors. We healthcare spend. Like competitive forces,
saw all of these factors, in varying degrees customer trends were made more difficult to
and intensities, combining to create manage by our operation in so many
difficulties for a company that had different medical device sectors.
historically thrived on the simple concept Finally, we were conscious of the
of technical excellence. implications that developments within to
Secondly, we perceived other threats our organisation held for our business. As a
also arising from the external micro- global company, we were trying to drive
environment: those concerning customers towards a global approach that had to be
and competitors. Our direct competitors factored-in to our nationally based market
were consolidating and becoming, strategies. With the rise in cost and difficulty
generally speaking, fewer and bigger. In of product development, for instance,
few areas could we claim to be the global product standardisation was one of
market-share leader and we were our goals. We also had a weight of
increasingly faced with a two-pronged organisational culture and norms, which,
attack by competitors in each of our although useful and positive in most aspects,
chosen market sectors. On one hand, we did preclude certain courses of action. The
faced in each sector one or two major extant culture of Mediprod UK reflected its
players that were often much better origins: product-oriented, technically
resourced and capable of better economies focused, reactive rather than proactive, and
of scale. On the other hand, we faced a with a bias for immediate action over
multiplicity of small specialist companies planning. Internally, we joked that the
who, while they could not match our Mediprod way was summarised in the
resources, might better serve the small instruction ‘Ready, fire, aim’. Lest this be
profitable niches of each sector. This interpreted too negatively, it should be
216 International Journal of Medical Marketing Vol. 1, 3 215–223 # Henry Stewart Publications 1469–7025 (2001)
Achieving a market-led culture: A case study
remembered that this culture had been part range of sectors was becoming increasingly
of a success story of over 30 years of growth difficult.
and profit. . Critical resource allocation – We recognised
This thumbnail sketch of the Mediprod that some of our most critically important
UK situation is, of course, a simplification. and scarce resources were becoming so
But it catches the main elements of the stretched as to be of concern. As the UK sales
circumstances facing us in the late 1990s and marketing subsidiary of a global
and is probably not unfamiliar to many company, our perspective on this was
readers. especially human resource biased. We saw
Naturally, the management team of the resources that we allocated in order to
Mediprod UK was involved in the add value were largely our people and their
skills. Our sales people, product specialists
development and implementation of
and product managers, as well as our senior
myriad changes in order to maintain its
management, were the means by which we
competitive advantage in the light of differentiated ourselves and created
market changes. The large majority of competitive advantage. We were concerned
those changes were tangible, physical and that these critical resources, and the financial
incremental. That is, they were visible and resources they used, must be allocated
obvious improvements to existing systems effectively and that this was not a product of
and processes. These included changes in the tangible changes we were already
IT systems, distribution and logistics making.
facilities, manufacturing and quality The concerns over these two key issues
processes and so on. This paper does not were captured by the measure of
seek to deprecate the importance and productivity. We knew that our strategic
necessity of those changes, which did and goals called for sales and profit growth
still do play a vital part in maintaining that was not matched by growth in
Mediprod UK’s competitiveness. headcount, which suggested that we
However, as a management team, we needed to consider what we were doing,
recognised that while these improvements not just how much of it we each did. We
in capability were necessary, they were not knew too that this increased profitability
sufficient. We turned our attention to the could no longer be assumed to flow from
outstanding problems that we perceived to our traditional technical leadership. This
be unresolved by the tangible changes we would remain necessary but become an
had made or were making. incomplete solution. We felt the same
We saw two related key issues that applied to the many tangible process and
would not be fully resolved by the systems improvements we continued to
changes we had already set in place. make. We therefore turned to the softer
Simply put, these were as follows. issue of organisational culture to see if we
could derive competitive advantage from
. Sustainability of product leadership – We
that source.
identified that the product leadership we so
frequently created, by dint of our research
and development responsiveness, rarely THE CONCEPTS OF
lasted long. The time taken for our ideas to ORGANISATIONAL CULTURE
be copied by cheap imitations was shrinking AND ORGANISATIONAL
rapidly. This was not only a competitive
issue, but also a macro-environmental one. EFFECTIVENESS
Escalating technical and regulatory The concept of organisational culture
development costs meant that purely turned out to be both more complex and
technical product leadership across a wide more useful than we had anticipated. With
# Henry Stewart Publications 1469–7025 (2001) Vol. 1, 3 215–223 International Journal of Medical Marketing 217
Rowland and Smith
hindsight, our knowledge of the subject at culture is useful.1,2 Schein postulates that
this stage was incomplete and insufficient. culture derives from basic assumptions that
This deficit was made worse by the way an organisation holds concerning what is
in which the terminology surrounding the the right thing to do. These assumptions
subject of organisational culture is misused usually derive from the founders and,
and misappropriated. It seems appropriate, although in a state of constant dynamic
therefore, that we spend a few words flux3, are ‘singularly persistent’4. These
explaining the concept and its practical assumptions lead to organisational values
implications, as we now (we hope more and these in turn are manifested in cultural
usefully) understand it. This understanding artefacts. We have tried to clarify Schein’s
of the ideas behind organisational culture model, with reference to the Mediprod
was central to the practical steps we took example, in Figure 1. In reality of course,
and the progress we made. the organisational culture of Mediprod,
Organisational culture is a complex and any company, is based on hundreds of
topic that invites dangerous assumptions, each leading to one or more
oversimplification. At the risk of this, we values. Cultural artefacts are the result of
think that Schein’s model of organisational the interaction of many different values.
Tangible rules and structures that reflect and direct the day to day activity of the organisation
e.g. Allocation of budgets to e.g. Humanistic rather than e.g. Significant resource allocation
technical product development mechanistic management to relationships with clinicians
rather than formal market procedures rather than quantified market
research analysis
e.g. Rapid, incremental, new e.g. Loose, individualistic HR e.g. Processes to identify new
product development based on processes designed to ensure clinical ideas and incorporate
informal processes commitment into new product development
Underlying beliefs and assumptions about what makes an organisation successful, usually originating in the
beliefs of the founder and endorsed by subsequent success of the founder and endorsed by subsequent success
e.g. That rapid response to of e.g. That personal commitment of e.g. That technical superiority
individual clinician’s feedback is employees is the paramount HR of the product is the single most
the best way to develop new objective important determinant of
products commercial success
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Rowland and Smith
single coherent plan. Rather than being or skill gaps exposed by the shift from a
one preconceived process, it was more an technical to a marketing culture. In sales,
example of ‘logical incrementalism’.34 The formal training was initiated using the Dale
process began about three years ago and, Carnegie Organisation. In marketing,
formal training of some of the team was
at the time of writing, is still a work in
implemented via study for Chartered
progress. Significant steps have been taken
Institute of Marketing qualifications. These,
and worthwhile progress made. In roughly and other formal training initiatives were
chronological order, these were as follows. used to meet specific needs.
. Agreement in principal of the management team –
Probably the largest single component of
This seems to be an essential prerequisite to
our programme, however, was that
any significant change programme. This
agreement was not unconditional, assuming targeted at our Product Managers. These
as it did that the work would be completed individuals, mostly recruited from a
without drastic change in either spending nursing, technical or other similar
budgets or revenue targets. In this, we background, were central to creating
demonstrated the importance of using the competitive advantage. It was their task to
existing culture which has traditionally devise and implement any new
allowed great personal latitude to managers. components of our value proposition and
A more autocratic culture would have to direct resource allocation accordingly.
struggled to gain consensus on a fundamental Ironically, it was among this group that
topic like organisational culture. the greatest potential for resistance lay. We
. Shift in emphasis of job roles and specifications – encountered significant amounts of initial
As with the whole programme, this was scepticism and just the sort of barriers to
gradual and incremental in nature. It implementation that our background
involved some re-allocation of management research had prepared us to expect. This
responsibilities and some shifts of emphasis part of the team had little or no formal
within existing roles and structures. Less training in market analysis, strategy
formally but importantly, it involved
development or tactical implementation. It
changing the visible emphasis that day-to-
seemed obvious to us that a standard, off-
day management placed on individual
actions. Fire-fighting and tactical steps were
the-shelf programme of marketing training
seen as necessary and expected, while would not work well. Already, in early
strategic thinking and market understanding parts of the cultural change process, we
were given greater recognition. had met what seem to be standard
responses to the initiation of market
. Personal development guided by diagnostic tools –
orientation. These were exemplified in
Since much cultural change involves a
comments such as ‘It’s all very well in
degree of self-examination, the most affected
employees were given access to personal theory’ or ‘Yes, it’s OK for consumer
profiling techniques such as Thomas markets but not for a technical, ethical
International’s DISC method, and Insight’s market such as ours.’ We anticipated that
Colour Quadrants. These were used to help the depth of technical expertise that made
direct choice of role and, in some cases, these people so good at that part of their
were also used therapeutically, when the role would also make it harder for them
culture change seemed to cause individuals to adopt the perspective needed for
particular problems. marketing planning. As with other aspects
. Formal skills training – In some cases, even of the existing organisational culture, we
individuals who had been in sales and wanted to retain and use the useful parts
marketing posts for some time (by virtue of of the current situation, not simply replace
their technical knowledge) had knowledge them with something new.
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