For most, speed to market is everything in the new product development environment. Creating a Culture of Accountability where people and teams stay focused on the priorities, engage their inventiveness in everything they do, creatively deal with obstacles and take personal accountability to hit deadlines and budget expectations is essential to success.

The Partners In Leadership process for developing a new product development culture is a proven approach with over two decades of game-changing successes for our clients. The process helps teams break though traditional cross-functional barriers to establish a collaborative environment where people throughout the organization are aligned around the key activities that need to be completed.

People in our organization are aligned around and consistently demonstrate the key Cultural Pie ChartBeliefs needed in order to achieve our results.
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We consciously manage our culture by creating the "Experiences" necessary to Pie Chartreinforce our desired Cultural Beliefs.
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Central to success in this effort is creating a clear cultural road map of how people need to think and act in their daily work in order to achieve the desired objectives. To this end, one of our recent polls showed that 70% of executives do not believe that people in their organization are aligned, or consistently demonstrate, how they need to think and act to get the job done. About the same percentage felt that the organization was not effectively managing the "Cultural" side of what it takes to get things done, like launching new products with time, budget and quality objectives.

Achieving new product development objectives is most effectively done when the culture of the entire organization is aligned and all business functions are supporting the effort to achieve commercial success. That is why creating a culture that supports the developmental and commercial success of the new product development process must be created throughout the entire organization.

The Partners In Leadership culture change process has proven to be a powerful tool in helping leaders accelerate the transition of their culture to one that drives the overall success of the new product development process, from initial development, through product launch to achieving the business objectives that define the commercial success of the new product.

Here are some powerful examples of how clients have used the Partners In Leadership training and consulting services to create a new product development culture that produces record-setting results:


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A "New Product Development Machine"

The Results: 14 New Products in 14 months, sales revenue doubled

The Story: Cardiac Pacemakers Inc, (CPI), utilized the Culture of Accountability® Process to transform their organization into what they later described as a "New product development machine." Challenged with their internal new product development process, competition was gaining ground quickly. The company was experiencing historic sales growth with monthly performance records. However, CPI had not produced a major new product in years, and the common belief within the organization at the time was they could not "Develop their way out of a paper bag." A cultural transition was essential if they were to have any chance of creating a new, product development, environment. Morale was in decline while sales on existing products were holding steady. The threat of patent expiration on their most important product, and the lack of any new products in the pipeline, caused then CEO Jay Graf to describe the company as "An organization going 90 mph on an icy road, headed toward a cliff."
Jay brought in Partners In Leadership to help with a cultural transformation and to introduce the Culture Track Training. He was succeeded by Fred McCoy who continued the effort as the company was acquired by Guidant Corporation. CPI literally transformed into a new product development machine, producing 14 new products in just 14 months, growing from $250 million in revenues to over $1 billion in just a few short years. Its innovation was so substantial that the company helped to define an entire industry in the field of cardiac rhythm treatment. Continued progress occurred under the Guidant Banner as the now Guidant CRM group (formerly CPI) helped to transform sales to over $2 billion. From the time of the acquisition by Guidant, CPI accounted for 75% of Guidant's revenues and saw a stock price increase from $3.62 (adjusted for stock splits) to $80.10 per share. Guidant and CRM turned into one of the top performances ever in the history of medical technology companies.

Read the Full CPI New Product Development Culture Story

Shortly following its acquisition by one of the top pharmaceutical companies in the world, Jay Graf became president of Cardiac Pacemakers Inc (CPI), subsidiary of Eli Lilly and Company, and brought in Partners In Leadership to help him create a new product development culture at CPI. In our first meeting, Jay described CPI as an organization "Going ninety miles per hour on an icy road, headed toward a cliff." The company was experiencing historic sales growth, setting monthly performance records, and constantly celebrating its victories in the market, but despite all that success, Jay felt people at CPI were failing to see that their top two formidable competitors were poised to introduce technology that would leapfrog their own within two short years, when CPI's own patents on its top-selling products would expire. Without the next new product, sales growth at CPI would indeed drop off a cliff. CPI's acquired technology was fueling its growth, but the company had nothing in the product development pipeline to take its place.Upcoming acquisition opportunities were not proving fruitful. The hope of licensing new technology for the next new product was, as Jay described it, like "The heroin fix of the next promising acquisition." The prospect of internal new product development looked bleak as well. CPI had not produced a major new product in years, and Jay's own staff believed that they couldn't "Develop their way out of a paper bag." The company's product development process continually slipped behind schedule by three weeks every month, which, according to Jay, was just "Another way of saying we got about twelve real weeks of work done every year." He concluded, "We took four steps forward and three steps back." Jay believed that doing the hard work of building a first-rate, on-time, product development process would most assuredly turn the company around. Given the prevailing beliefs at CPI, such a turnaround would require a significant cultural transition. Without it, they could not hope to achieve the mission of their organization and return to the stockholders what they were expecting. And with time running out, they desperately needed to accelerate the transition. As Partners In Leadership worked with Jay and his team, they came to recognize the need to place the desired results around new product development in front of the organization in a clear and compelling way. Everyone, from the board of directors to the frontline assembly workers, acknowledged the reality of the current results in new product development that they were achieving, which we will call "R1:" Their inability to develop their own new products had resulted in a product development department where, after years of dismal performance, people lacked confidence. In a series of town hall meetings and formal training sessions, Jay and his team described the new product development results they needed to achieve, which we will call "R2". He then explained what the shift from R1 to R2 would look like. While the dialogue within the organization convinced people of the need to change the game, many voiced skepticism about the organization's ability to become the developer of the new products that Jay envisioned. History argued for pessimism. In spite of this, Jay and his team implemented their culture change effort by working with the first tier of The Results Pyramid® and applying the three steps to forming: (see page 46 in Change the Culture, Change the Game.)
  1. Define R2.
  2. Introduce R2 throughout the organization.
  3. Create accountability to achieve R2.
The diagram below shows how Jay and his team described the shift from R1 to R2. Continued dialogue within the organization proved productive as people began to take accountability for what wasn't working and for what they needed to do to fix it. The Shift in Results at Cardiac Pacemakers Inc.   Based on their determination to achieve R2, the acknowledgment of the management team was crucial: They took accountability for having produced R1 and now they would take accountability to create R2. They implemented the Culture Track Training to accelerate their shift to R2. Jay and his team became expert at integrating the culture management tools and leadership skills used in the Culture Track and the results were amazing. The speed of the cultural transition created significant competitive advantage for CPI and essentially changed the game for both itself and others in the industry. Clearly defining the shift from R1 to R2 allowed its leaders to speed up the change in culture and thereby speed up results. CPI created "A new, product-development machine," as others in the industry described it, which produced fourteen new products in fourteen months. CPI's annual sales doubled, while the stock price increased nine-fold. The company has become a worldwide market leader in a number of its product lines. CPI became a primary driver of success within Guidant Corporation, considered one of Wall Street's most successful split-offs ever. CPI is now a part of the Boston Scientific Cardiac Rhythm Management Group.
 

Fred McCoy describes the Culture of Accountability® Process

"The concept and application of "Accountability" is delivering more empowered, confident behavior from every member of our division leadership team. We are planning, executing, and meeting adversity at least twice as effectively. "Accountability" is a crisp, memorable concept which resonates with those at all levels. It is the most powerful single leadership tool I have ever encountered. Second, the Partners In Leadership process is forcing a healthy reflection among company leadership about the experiences that we create for our people. The dependency that beliefs have on experiences is also a crisp, memorable concept. We are already getting better behaviors and results as a direct consequence. Finally, the Partners In Leadership process is delivering the desired cultural transition in our company. People understand and own our need to move to "C2." Again, the concept is crisp and memorable." Taken as a whole, Partners In Leadership is the most exciting leadership process that I have utilized."
"We rarely use consultants at CPI and have chosen to work with only three during my tenure as COO; a regulatory law consultant, a sales force compensation consultant and Partners In Leadership, Inc. These consulting relationships are ongoing and continue because of our level of trust created by significant history of results. Roger and Tom are not inexpensive and CPI budgets are tight, but given the extent to which they are helping us change our culture, we've chosen to cut other expenses to finance the inclusion of Partners In Leadership Training."
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Getting to the heart of the matter...

The Result: Gaining FDA Approval for product launch



The Story: Partners In Leadership aided Abiomed Europe in developing and launching the world’s smallest heart pump using the Culture Track Training.

Abiomed is a pioneer and global leader in healthcare technology and innovation, focused on breaking new ground in recovering hearts and saving lives, because hundreds of people die each year waiting for heart transplants. Abiomed CEO, Chairman and President, Michael R. Minogue has focused the company’s efforts on developing ground-breaking heart muscle recovery technologies designed to assist or replace the life-sustaining pumping function of the failing heart.

The Culture Track Training was first introduced into Abiomed Europe before their pump had FDA approval in the US. At the time, the pump had not received FDA approval due to quality/functionality issues with the device in Europe. The pump itself offers new hope to critically ill heart attack and heart failure patients who have run out of options. It is a new type of pump that assists the heart's main pumping chamber to drive blood through the body. The Partners In Leadership training played a significant role in helping Abiomed align their results and culture to produce a product that won FDA approval and has changed the way lives are saved in the US health care system.

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Start-up launches on time…

The Results: TransEnterix achieves regulatory approval in record time in worst economy in 80 years, launches first product on time and launches 12 new products in less than 2.5 years.



The Story: TransEnterix is a client that integrated the Cultural Beliefs® and C2 best practices into its recruiting strategy using the Culture Track Training. TransEnterix, a start-up medical device company specializing in innovative, minimally invasive surgical devices, put together a great management team, received regulatory approval in record time in the worst economy in eighty years, and raised $76 million before it sold its first product, raising the bar for pre-revenue capital raised. TransEnterix reached all of their other milestones, including the first product launch, on time or ahead of schedule. In less than two and a half years, they launched twelve products into the $10 billion general surgery market.  

When commenting on their early success, Todd M. Pope, President and CEO, said, “A lot of what we have achieved can be attributed to what we have done with our Cultural Beliefs.” While true for any business, the need for talent escalates exponentially in a small, young company. Success depends primarily on recruiting the right talent and putting that talent in the right positions at the right time. Todd told us how important it has been, while recruiting for TransEnterix, to emphasize the corporate culture when talking to prospects. While you can easily communicate facts and details about the TransEnterix business, none of that expresses what truly differentiates the company from other organizations: its culture! The leaders actually walk the prospective hire through the Cultural Beliefs, which they can recite from memory. They let the recruit know exactly why they chose that statement and then take time to provide some real-world examples of how people exemplify that statement at TransEnterix, day in and day out.

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Crashing the product development map and breaking records!...

The Results:  Speed to market capability proved by new product launch, record time FDA approval, innovation across product lines and crucial sales captured.



The Story: Guidant, LLC designs and develops cardiovascular medical products. It offers devices that help patients with heart disease in returning to active and productive lives. Despite the fact that product development cycles typically take months if not years, Guidant CRM’s senior management charged the product engineering group to take accountability for quickly bringing another device to market to support patients and customers relying on Guidant technology and they used the Culture Track to help them do it.

Historically, product development did not take place in the product engineering group, so the thought process used to execute the project was slightly different than on a traditional R&D team. This device would be designed using a different platform to get around manufacturing issues, which had almost stopped production of the company’s current CRT-D. A small group of cross-functional decision makers met on June 10, 2002, with ground rules set—one hour, one meeting, come out with a concept. With no time to waste, the team produced an approved concept document the next day and the clock started ticking.  This product had an impossible timeline—FDA submission was scheduled for August—and no resources assigned to support it. Kent Fox, project manager for the CONTAK CD 2, as the project was now called, put out a call to dedicated team managers throughout the research and development organization asking them to give up critical talent. The loss of key personnel put other project deadlines at risk, but Fox was able to secure a high level of ownership for the CONTAK CD 2 CRT-D’s success and staff the project quickly with the right skill set to achieve the objectives.

In the midst of this crisis, the company could have easily dropped Below The Line®, hiding from the problem and its consequences, and waited for the next scheduled product launch. After all, Guidant CRM had never put out a product on such an aggressive timeline before. Why shouldn’t the company just sit tight and hope that customers and patients could hold on until the next product, scheduled for a February launch? Instead, senior management opted for an Above The Line® approach; an approach that they felt would enable Guidant to really remain a leader in providing heart failure technology to customers and patients. They charged a group to Solve It,® moving from finger pointing, paralysis, and confusion to a level of organizational accountability that allowed the entire organization to own the company’s circumstances.  The team worked tirelessly to Do It,® with Fox reminding them that each day was equivalent to about 3 percent of the total project timeline. They were able to leverage existing hardware and software and even added a high-energy model—an industry first in the United States. The resulting CONTAK CD 2 was 38 percent smaller than the competitor’s device and filled a crucial gap in the company’s product offerings. The team not only met the deadline for FDA submission, but also managed to exceed it by a week. From the development of the concept to FDA approval took four and a half months: Under normal circumstances the FDA approval time alone is six months. The product was submitted to the FDA and, thanks to the thorough groundwork in place, a track record of Above The Line dealings with the agency, and the FDA’s understanding of the critical nature of this product for customers, it was approved quickly.  Guidant launched the device in December and immediately received a positive reception, providing lifesaving therapy to patients. This warm reception helped set the stage for the successful launch in February of the company’s state-of the-art CRT-D product, a product that had been in development for several years.

Guidant’s actions paid off, not only in terms of satisfied customers and healthy sales, but as a new paradigm for the development of inch-up products. One entire product line was upgraded to include the fast-charge feature, developed during this project. This feature is highly valued by many of Guidant’s physician customers and has contributed to market share gain. Since this project, the new inch-up development strategy has successfully brought other products to market in rapid succession. In addition, new safeguards were put in place to prevent future dependence on a single source for critical components.

The organization had learned that getting the right result, regardless of the challenge to the product development map, comes only when everyone takes ownership of and Accountability for the company’s reputation as a leader. The entire company will face the future with greater confidence in the product development process and with a strengthened corporate culture, driven first and foremost by a sense of complete accountability.

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Roll out of “The single best medicine…to treat diabetes”

The Results: Exceeded Plan by more than 120% on two products and rated best place to work!



The Story: The heart and soul of the Amylin mission is to use innovative science to provide new treatments that change lives and help society forestall the alarming growth of the diabetes and obesity epidemics. Amylin engaged Partners In Leadership in the roll-out of two new diabetes drugs. One of the drugs has been called:  “The single best medicine we have to treat obese diabetics.” (Stuart Weiss, New York University School of Medicine). Amylin’s leadership realized that they needed to work with their organizational a workplace culture issue and implemented the Culture Track Training, which from the current culture to the desired culture by first identifying the beliefs that needed to change and then implementing the cultural transition tools to create the desired beliefs.

By the end of the following year they exceeded the revenue goal of one product by 121% and the other product by 150%.  Another concern was employee turnover and they now consistently have a retention rate of 95.1% and were rated best place to work in California.   By understanding The Results Pyramid® they were also on track with their profit/loss goals.

President and COO, Daniel M. Bradbury states: “Partners In Leadership have played a critical role in assessing and defining the desired culture at Amylin. We have had vast growth in personnel within a very short period of time and Partners In Leadership have assisted us in dealing with the growing pains that come with that kind of expansion.  Partners in Leadership worked extensively with Amylin Senior Management in understanding the current perception of cultural beliefs and experiences at Amylin, identifying the specific cultural shifts that must occur to achieve key business results and facilitating this cultural transition with contemporary curricula and coaching of our Senior Management Team.  On behalf of the Senior Management Team at Amylin, I highly and without reservation recommend the consultant services and expertise that Partners In Leadership offers.”   

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Accountability Can Be The Key Ingredient that Makes It EZ...

The Results: Cuts market introduction of EZ-Open can by one year and exceeds other performance metrics!



The Story: Nestle Purina, the pet food division of the world's leading Nutrition, Health and Wellness company planned to introduce an easy-to-open Alpo dog food can by April, but highly successful preliminary market tests convinced the marketing department to accelerate the new products launch. Using concepts and principles from the Self Track Training the Alpo EZ-Open Can team got to work. Coordinating the activities at three plant locations-Weirton, West Virginia, Allentown, Pennsylvania, and Crete, Nebraska, the EZ-Open team assembled people across several functions to accomplish the impossible: cutting market introduction by more than a year.

For their extraordinary efforts, the Alpo EZ Open Can team received the company's prestigious Pillars of Excellence Award. Marketing Manager, Kristin Pontius, expressed her elation with the results in a recognition letter that went out to everyone involved: "I wanted to write a quick note of congratulations to the Alpo EZ-Open Can team. On Tuesday of this week, this team was awarded the prestigious Nestle Purina Petcare Company (NPPC) Pillars of Excellence Award by CEO Pat McGinnis. This award is very well deserved. You worked at an incredible rate with great dedication to accomplish your goal. EZ-Open cans began shipping one year and one week prior to original plans. Not only did you meet your goal; you exceeded it as EZO cans shipped even three weeks earlier than expected. You did all of this while facing multiple obstacles, including needing to design special lids, having to hand orient cans until equipment arrived, and needing to fill an overwhelming volume push while maintaining quality and integrating everything into the NPPC supply system. All goals were met, and many beaten, through the hard work of a team that wouldn't fail to overcome all obstacles."

The Allentown, Crete, and Weirton factory teams did it in a way that set a powerful example for the rest of the company. Alpo's great success story shows how profound the impact of team alignment can be. Overcoming cross-functional boundaries and getting everyone on the same page to deliver results. Partners In Leadership's Self Track Training helps teams achieve this alignment and instills greater individual accountability that enables organizations to reach their full potential by engaging everyone involved.

Ed Vanyo, General Manager of Can Operations, Nestle Purina, describes the Self Track Training as follows: "(The Self Track Training) is a thoughtful and straightforward approach to the complex subject of accountability. Partners In Leadership lays out the method and approach for building greater accountability to maximize the impact of every organizational initiative. It has been my experience that implementation of the concepts found in (The Self Track Training) will improve individual and company wide results."

 

Click here to read Ed's full letter to us.


In a letter to Partner In Leadership, Ed Vanyo, who had amazing success implementing the Self Track Training in a new product launch, expressed the following thoughts:

Dear Roger and Tom,

I happened upon The Oz Principle browsing a bookstore with my wife, as we have been known to spend many a Sunday afternoon. Being a "Wizard of Oz" fan, the title drew my attention away from the numerous other books espousing how-to fix this or that management problem. The accountability subtitle peaked my interest even more. This was an area that my team at work had been discussing and knew we needed help with.

Reading the book, I enjoyed the parallel drawn with the Oz characters. More importantly, you provided great clarity with the principles of proactive accountability and their application. The simplicity of the process belies the strength of the message. I immediately knew that we would benefit from exposure to The Oz Principle. Sometimes a message is so important and powerful that one must internalize it completely and become its disciple. This is what happened to me with The Oz Principle. I felt that to get the message to my team and have them truly understand my passion for its application I would need to personally facilitate the training sessions.

I have recently completed my first training session as facilitator and I wanted to share my thoughts with you. The participants were my direct reports and their reports (my skip-level reports) from one factory.

The training started with a review of the corporation's "Blueprint for Success" and our "Factory Results." We then proceeded to the See It, Own It, Solve It, and Do It to the results we needed to deliver in the future. The 16-element review was very enlightening as it demonstrated the effect a leadership team has on the organization. The most significant areas for organizational improvement were the areas identified as management team weaknesses! This shows that "I" is truly the operative word in "What else can I do to achieve the result?"

We have taken a modified approach to action planning for implementing the improvements identified. Each participant was required to prepare their individual action plan, but not at the training. I wanted them to spend quality time reviewing the key learnings. The action items identified will be incorporated into their formal performance review process.

To drive the See It step (which appears to be the most difficult for the group to align with) we have begun several tasks.

I have just completed a 360 Feedback review on leadership and I can honestly say it is the ?rst time I have been excited to get the feedback and start to work on improvement. To demonstrate my commitment to the program, I presented the results to the team, thanked them for the feedback, and committed to improving in two specific areas.

  • The team identified employee satisfaction as a key result area and felt it was the area needing the most improvement. We therefore conducted a factory-wide survey of all employees to identify employee attitudes and opinions about the workplace and the management team. Utilizing these results and narrowing our efforts to focus on employee safety, we have started employee focus groups to develop actions that we should start doing, stop doing and continue doing in safety. We will then build on our successes in this area to move The Oz Principle into all the key result areas of the factory.

We are continuing into the new year utilizing "Journey to the Emerald City" to define the culture in the factory as we would like it to be. It is absolutely amazing to see the number of "mixed messages" that are sent by the management team when the process is not explicitly managed. We all need to remember that we are on stage when we leave our offices and head for the factory floor. Personally, the process has allowed me to revisit my own impact on the culture drivers. I can honestly say that The Oz Principle will become a part of our process and not just the next "program of the month".

Thanks for a refreshing view of proactive accountability.

The very best,

Ed Vanyo
General Manager, Can Operations
Nestlé Purina PetCare Company



New Product Development Culture