Good expose on the mistakes that have led to stagnant growth and culture. Geoff comes across as dismissive and defensive, nothing is his fault. Do you think it’s true in your group that engagement scores are up since 2019? I’m not seeing it!
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Well... nothing lasts forever. Medtronic needs to change, in many ways, to stay competitive, but consolidating everything it can at the corporate level over the last 5 years was the wrong way to do it. Now it is even harder to change because there is a giant bureaucracy around every corner, and bureaucracies are pretty hostile to change. Expecting MDT to be a highly innovative medical technology company that can move at speed AND expecting Walmart like efficiency? - not possible. Even if we took the straight jackets off the R&D orgs (which leadership would never allow), there are few left that know how to develop new technology and commercialize (both at the management and the doer level). It will take 5-10 years to get the momentum back and I don't think there is the leadership / BOD patience for that. Just keep cost cutting, milk the company for as long as possible and let nature take its course.
Where did heck did they find me-h mouth Hill?
https://removepaywalls.com/https://www.startribune.com/medtronic-stock/601460979
But, but , we’re on the cusp of an innovation super cycle!!!
@pb Medtronic might as well move the offices to India
Delayed decisions, followed up by terrible decisions. Continually investing money into unprofitable products, corporate efficiency black holes, and 3rd world countries. It's done, do not attempt to convince yourself otherwise.
@md You plan on holding for another 2years?
I hope everyone has sell orders in for 100-110 to dump there MDT stock ! I do
Thank goodness Elliot is on the Board.
Quite a good read. The one thing that stood out was that Geoff’s financial engineering tactics have spread into OHS engineering, where he’s trying to present the workforce as more engaged than before his tenure, when anyone on the inside knows it’s a dumpster fire of empire builders, look-busys, and an army of plodders.
The author of that article should ask to see the data behind that survey claiming employees are proud to work here. Because….no.
Medtronic thrived when the mission truly came first and the patient was at the heart of everything. When that happened, everything else naturally fell into place. Somewhere along the way, greed got in the way, and now the company is scrambling to fix what’s been broken.
The organization feels completely fragmented. No one seems to consider how their decisions ripple across other departments, what saves one area often drains another. Everyone is looking out for themselves.
This article is a paid hit piece by EM as a justification for what’s coming next
Looks like GM will be out pretty soon, and someone new will take his place along with more layoffs and a complete shift and selling more business
It’s a sign for all for us to try and get out
@fh go to Medtronic cafepharma and non paywall article URL is posted there.
@b4 wonder where is this article ? Internal website only?
One of Martha’s biggest flaws was changing the workforce diversity. Epic failure. Something like cultural transformation when the new op model/centralized GOSC change was implemented. Clueless leadership!
@a4 clearly not into Earl's Mission --- improve health/extend lives/ save lives ! MDT not into the present medical renaissance ==> micro machines , AI , CrispR , gene editing , rare disease support , expanding next gen devices. MDT used to be close to all VSP members for ongoing ideas / support ( VSP = very special people = retirees// Earl's declaration of our retirees).
Has gone downhill of labeled = '' ,,, most desired company,,,''. Was blessed to work there for many many years ---- So sad there is No leadership --- visionaries-- Mission devotees!!
Surprised this article didn’t call out the op model/centralized GOSC changes. Putting money down the Diabetes and Hugo sink holes should have been emphasized more. Also missing out on the best bet acquisitions (but for Affera) is another reason why we are floundering. Of course GM, the rent seeking board and sycophantic ExCom are the biggest reasons why.
@a4 Geoff’s op model change and centralized ops was a disaster. Bloated cost structure, no accountability on supply chain, notice how just a couple years later his much vaunted 20 operating units was down to 18 then i rhink To 14 as he gives up on growth businesses to chase cost savings. He might think the people who are not on board are gone but there are many still here trying to wait him out.
My takes on the article:
- Someone with Elliot initiated the article being written.
- Martha will be out the door soon (6 to 9 months).
- Elliot is ready or close to ready to start making changes.
No debate that the company has struggled for years. As the CEO, that has to now be at Martha’s feet. However, I do think this is rooted in Ishrak’s tenure. The COVIDIEN acquisition was clearly now a mistake. His focus on Value Based Care bled attention and resources from product innovation. Those were the wrong strategic choices. I understand why they looked right at the time, but with hindsight, they clearly didn’t create value and ended up putting the company in a hole. And then the current leadership, whether because of capabilities or otherwise, haven’t been able to turn it around fast enough.
Nothing against Ishrak personally, but when you consider the strategic misses at MDT, the disastrous SPAC, and the Intel troubles under his watch as Chairman, his track record since GE is pretty poor (I don’t know much about his GE time, so perhaps it was a different story there.).
My final point on this is that in earnings calls, Geoff still talks about the company’s transformation beginning to take hold. C’mon, it’s been half a decade since the op model change. I’d guess there are companies that have successfully reinvented or transformed themselves twice in that amount of time. Thats a bad look, IMHO.