m Founded in 1957 in Minneapolis, Minessota by

Earl Bakken

m Created the Cardiac Pacemaker Industry

m In 1960, Market Share of the company is over

70%
m Between 1970 & 1986 market share cut by more
than half
3 Investment had been unproductive
3 Many project fail to produce
3 Several key employess left the company
3 Competitor much faster at developing new product
3 2Major Product Recall

m 1980 Management changes

m 1996 company regain its position in market
leadership
m Cause
- Product development supervised by functional
manager
- Bad Coordination across function
-Too many idea and project to do, so project didn¶t
get focus and attention enough
m Effect
3 Ôifficult to plan product families
3 High Cost of development
3 Long development cycle of product
3 Battle between each manager for resources
3 It¶s get taking to long to get the product to the market
3 Massive loss of Market Share (more than half in 1970-
1986)
m Pacemaker G Bradycardia
3 Promeon division: power supply
3 MicroRel: Hybrid circuit
3 PGPS
m Ôual-chamber pacemaker
m Xytron G recalled

m Medtronic home run:

m Rate-responsive pacemaker named Activitrax G single chamber
Mike Stevens summarized the key elements of his management
philosophy:

m Commitments are sacred

m Create a sense of urgency by contrasting of bringing new theraphy
to patients vs. the consequences if your competitors are there first
with better solution
m Balancing happiness with productivity in workplace
m Lowering power distance index between employees and
management
m You only get what you measure
m Focus on gaining market share