Leadership in MedTech: Guillermo Macarron talks how to transform a global MedTech and Healthcare business to achieve commercial success.

Stan: Hi Guillermo, pleasure to have you with us today. You have spent many years in Leadership positions in Medical Devices space and you mentioned to me several times that Business transformation is key to success as well as it is a journey. As a Leader where do you begin?

Guillermo: Hi Stan, thanks, you are right - Business transformation is a key element for top management to grow the company in a VUCA environment in which most companies operate nowadays. It can take many forms, to improve the organization's competitive position, respond to changing customer needs, or to take advantage of technological advancements like currently with telemedicine and AI.

During my 15 years of experience, I have led several business transformations in different industries and companies to improve competitiveness implementing value selling, increase revenues converting a product into a service and market expansion or increase profitability with new added-value solutions. On all these experiences I begin the business transformation journey by setting a clear definition, understanding and alignment on the objective, the WHY of the transformation, and how this objective will create value for patients, HCPs and the organization.

The objective of the transformation should be aligned with the company's values and mission. It should be a driving force behind the transformation and should guide all decision-making. It should be clearly defined and communicated to all stakeholders, so all functions of the organizations are informed and aligned towards the same direction.

In addition, there are other important factors I consider when starting a business transformation, the internal and external conditions.

The internal conditions of the organization should be analyzed thoroughly understanding the strengths and weaknesses of the organization, identifying areas that require improvement, and assessing the capability of the organization to undertake the transformation. This analysis should be conducted with the help of key stakeholders, including employees, managers, and board members. A key element on this internal analysis is the culture of the organization. A culture of innovation and continuous improvement should be cultivated to enable the organization to adapt to changes in the market and the industry.

The external conditions refer to the market and the industry in which the organization operates. A thorough analysis of the external conditions is necessary to identify opportunities and threats. This includes analyzing the competitive landscape, regulatory requirements like the current MDR in the EU, and technological advancements that could impact the organization. Understanding the external conditions will help the organization to develop strategies that enable it to compete effectively in the market and achieve its objectives.

Stan: How do you set priorities then?

Guillermo: When I initiate a business transformation, setting priorities is an essential part of that journey. It involves identifying the key initiatives and activities that will enable the organization to achieve its objectives. As a business transformation it is not just the work of a selected team, but for the whole company, I build this prioritization together with every Function Head and based on the organization's mission, vision, and the WHY of the transformation.

To prioritize initiatives effectively I use several tools and techniques such as the impact vs. effort matrix, cost-benefit analysis, Pareto analysis (80/20), SWOT analysis, and agile methodology. This provides you different perspectives to prioritize the activities.

When prioritizing initiatives, I consider the impact on all stakeholders, including employees, customers, suppliers, and partners. It is also important to ensure that the initiatives are aligned with the organization's strategy and vision.

To reach the goal, prioritization should be done in a phased approach. First, I prioritize the initiatives that will have the most significant impact and require the least effort, well known as “quick-wins”. Then, move on to initiatives that require more effort but still have a high impact. Finally, I prioritize initiatives that may require effort but have a lower impact.

For me it is very important to monitor and evaluate the progress of the prioritized initiatives and activities regularly. This will help to ensure that the initiatives are on track to achieve their objectives and enable the organization to adjust its priorities if necessary.

Stan: What you won't do on the business transformation journey?

Guillermo: It's important to recognize that not all activities are equal, and some may not contribute to the business transformation goals. As a leader, I need to be clear about what I won't do on the business transformation journey. This includes avoiding activities that do not align with the vision and strategy or those that are not essential to achieving the business objectives. Here is my short-list:

1. Resist Change: One of the biggest mistakes an organization can make is to resist change. Transformation requires a willingness to change the way things are done. If an organization resists change, it can hinder progress and prevent the transformation from being successful.

2. Ignore Customers: It is essential to keep the customers' needs and preferences in mind during a business transformation journey. Ignoring the customers can lead to a loss of market share and revenue.

3. Ignore Employees: Employees are the backbone of any organization, and it is crucial to keep them engaged and motivated during the transformation journey. Ignoring employees can lead to a lack of buy-in and commitment to the transformation.

4. Lack of Planning: It can lead to delays, increased costs, and a lack of direction during the transformation journey. It is essential to have a clear roadmap and timeline for the transformation journey.

5. Failure to Communicate: Communication is key during a transformation journey. Failure to communicate effectively can lead to misunderstandings, resistance, and lack of buy-in from stakeholders.

6. Overlooking Risks: A transformation journey can be risky, and it is important to identify and mitigate risks as much as possible. Overlooking risks can lead to delays, increased costs, and potential failure.

The potential impact of not avoiding these mistakes can be significant. It can lead to a lack of progress, loss of market share, loss of revenue, disengaged employees, and potential failure of the business transformation. It is essential to avoid these mistakes by embracing change, keeping the customers and employees in mind, planning effectively, communicating regularly, and identifying and mitigating risks or taking calculated risks.

Stan: As a leader how does a big corporate differ from an SME?

Guillermo: This is a great question! My experience leading business growth and transformation in large corporation and SMEs taught me that both share the need to stay competitive and relevant in the market, the importance of effective leadership, and the need for innovation to drive growth and stay ahead of competition.

However, I identified several differences to consider when transforming a big corporation vs. an SME, including factors such as resources, decision-making, organizational culture, market position, and risk management.

Big corporations typically have more resources (capital, human, technology) being able to invest more in transformation initiatives, such as external knowledge, developing new technologies, or acquiring other businesses. Their decision-making is often hierarchical and can take longer due to bureaucracy and complex processes which is linked to a more formalized and structured culture. They may have a dominant position in their market, which can make it more difficult to transform as there is a risk of disrupting the status quo, making them more risk/change averse, although they often have more sophisticated risk management practices in place.

On the other hand, SMEs need to be may need to be more creative and resourceful in their transformation efforts due to limited resources. They are more nimble and agile in decision-making as they often have flatter organizational structures with a more informal and entrepreneurial culture. SMEs may have more room to experiment and take risks as they have a smaller market share, a need to grow for survival and a strong willingness to disrupt the status-quo in the industry.

Stan: How does a successful business transformation look like in your point of view?

Guillermo: A successful business transformation in healthcare is a complex process that requires careful planning and execution. It involves a wide range of factors that must be considered and managed effectively to achieve the desired outcomes. Here are my success factors in a business transformation:

· Alignment. The business transformation must be aligned with the corporate objectives, identifying the key priorities for the organization, such as increasing revenue, improving efficiency, or expanding market share. The transformation should deliver measurable results and achieve the desired outcomes to be considered successful.

· Leadership is key. Leaders need to set a clear vision, communicate the strategy, and inspire the team to execute the plan. They also need to be adaptable, open to feedback, and willing to make changes as needed, helping to drive the transformation forward and ensuring that it stays on track.

· Get employees involved. They are the ones who will drive the transformation forward, so it is crucial to engage and motivate them. The transformation should involve employees at all levels of the organization, provide them with the necessary training and resources, and recognize and reward their contributions.

· Innovation is a key driver of successful business transformation. Innovation can help healthcare companies to stay ahead of the competition, improve patient outcomes, and increase efficiency. It is essential to drive innovation both in terms of products and services and in terms of processes and systems.

· Focus on your customers. Focus on the needs and expectations of the customers, including patients, healthcare providers, payers, and other stakeholders. Business transformation should aim to improve the customer experience, enhance the quality of care, and create value for customers.

· Use technology to your advantage. Digital transformation is becoming increasingly important in the healthcare industry, leveraging technology to improve patient outcomes, increase efficiency, and reduce costs. This may involve implementing electronic health records, telemedicine, AI/ML, or other digital solutions.

A successful business transformation may impact positively the company increasing revenue, improving efficiency, enhancing customer experience, improving patient outcomes and competitive advantage.

Stan: Thank you Guillermo for your insights and thoughts sharing your story and experience with us today! Look forward to our next sessions.

Stan Kalinin draws on an extensive track record of more than 14 years of search and executive team-building expertise. He is the host of MedTech Opinion Leader supporting growth of MedTech industry and creating insightful stories with key market executives forging alternative narrative about the sector current and future trends.