Situation

Multiple $100M+ subsidiaries of $3B public medical device business with slowing growth due to price pressure and thinning acquisition opportunities. Fragmented business units with dedicated and insulated development teams and very little cross unit leverage. Development pipeline too heavily influenced by internally developed concepts with limited customer input. Development processes robust from a compliance perspective but sluggish with poor project management discipline.

Action

Developed cross functional platform teams consisting of dedicated R&D scientists, marketers and clinical specialists to support strategic portfolio groupings all with no increase in headcount. Dedicated teams helped to drive tighter focus on delivery of multiple parallel projects and ensure a balanced set of inputs across functions. Incorporated voice of customer into the development process at an early stage. Teams developed running 5 year product pipelines with swim lanes for key categories showing development of technology over time and resource allocation to support a balanced approach to their portfolio. Pipeline was helpful in filtering investments and guiding teams against over or under reaching in their development goals. Developed incentive mechanisms to support cross business unit activity which allowed for greater diffusion of technology across businesses. Implemented a professional approach to project management with simple tools, team training, dedicated PM experts and disciplined review of projects on an exception basis.

Result

All impacted businesses achieved higher than market growth for several years post implementation. One $100M+ business achieved multiple years of double digit growth due to dramatically improved internal development activity. This is compared to a historical growth rate of low single digits for that same business.