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MediSys Corp.: The IntensCare Product Development Team

Presentation · June 2019

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MediSys Corp.: The IntensCare Product Olivier Serrat
Development Team 2019
MediSys Corp.: Key Facts
Company • Privately-held, U.S.-based manufacturer of specialty medical devices
Profile
Established • 2002
Personnel • 1,750 people
Annual Revenue • US$400 million (2008)
Flagship • Pulmonary and renal monitoring systems
Products
Organizational • Entrepreneurial, with an accent on innovative thinking, from redesign to
Culture development of systems

Forces for • Growth is slowing; competitors are moving in; IntensCare is the most
Change ambitious project thus far; a new President, Beaumont, has been
appointed
MediSys Corp.: Historical Product Development Sequence

Sales & Marketing

Research & Development develops product Design & Engineering
proposes new descriptions (e.g., develops product
technologies or systems customer needs and specifications
responses, MediSys new
concepts)

Regulatory Affairs
Production fabricates and researches and conducts
assembles products clinical trials to test
prototypes
 MediSys Corp.: The IntensCare Project (1)

Gerson (Research & Development) Fisher (Sales & Gerson

conceptualizes a patient monitoring Marketing) tests (Research &
system to collect data in intensive the IntensCare Development)
care units, post to an electronic concept in the and Fisher
database, and build an integrated market and vets (Sales &
profile of patient health. The system it on account of Marketing) hold
September 2006

would deliver electronic alerts to considerable discussions with

December 2006
October 2006
physicians and nurses. Per the interest in the Design &
historical product development market. Engineering.
sequence, Gerson (Research &
Development) pitches the IntensCare
concept to Fisher (Sales &
Marketing).
 MediSys Corp.: The IntensCare Project (2)

After conducting Senior Beaumont is Beaumont introduces a

preliminary leadership hired as parallel system to
market research assigns President. speed the product
and product US$500,000 (Beaumont development process
designs, an ad for software later commits and formalizes the core
hoc product development US$20 team for IntensCare.
development and ongoing million to (Work had slowed
team presents product IntensCare.) owing to competing

January 2008

August 2008
the IntensCare engineering assignments. Earlier,
June 2007

July 2007

concept to senior work. Fisher had been named

leadership. VP (Sales & Marketing).
MediSys Corp.: The IntensCare Product Development
Team*

Jack Fogel, IntensCare

Project Leader, Production
("Laid back but
experienced")**

Aaron Gerson, Research Valerie Merz, Sales & Bret O'Brien, Design & Karen Baio, Regulatory
& Development Marketing ("A go- Engineering ("Expert but Affairs ("Sharp, good
("Brilliant")** getter")** narrow")** potential")**

Dipesh Mukerjee, Design

& Engineering ("Ambitious
and eager but may be
stretched")**

* The IntensCare Product Development Team was formalized in August 2008.

** The text in brackets summarizes Beaumont's annotations on HR's list of prospective team members.
MediSys Corp.: The IntensCare Project—Situation &
Synopsis of Problems as of February 13, 2009 (1)
The IntensCare Product Development Team has worked for six months but
met with design and engineering problems—for software design and
development outsourced to firms in India—that are affecting the project's
schedule. Yet, speed is the key.

Two competitors have launched work on similar monitoring systems to

directly compete with MediSys Corp. in the market, with established cross-
functional team abilities likely to impact MediSys Corp.'s future product
development as well.

Per Beaumont, Medisys Corp. must finalize and launch IntensCare by

August 2009.
MediSys Corp.: The IntensCare Project—Situation &
Synopsis of Problems as of February 13, 2009 (2)
A year has passed between the allocation of the funds for development
(July 2007) and the formalization of the team (August 2008); much
progress has been achieved but the team members have had other work.
Mukerjee (Design & Engineering) has owned up to (more) problems in
software design and development outsourced to India (February 12,
2009). To maintain the critical path of design and engineering, the
software must be delivered in final form by May 1, 2009.
O'Brien (Design & Engineering) keeps Merz (Sales & Marketing) in the
dark: delays will slow the critical path to product launch. Merz (Sales &
Marketing), tasked with profit-and-loss responsibility, feels disenfranchised
but all team members have different drivers and blame one another.
The revised release date for IntensCare is very aggressive but IntensCare
is behind on design, clinical testing, and production schedule. Modular
design has become a sticking point.
MediSys Corp.: The IntensCare Project—The Heart of The
Matter (1)

Going over The IntensCare Product Development Team is not A company has a
budget only performing as expected, notably regarding competitive
marginally efficiency and effectiveness. Without preparation, advantage when
reduces profits if a the product development sequence all at MediSys its culture gives
product is Corp. were familiar with was jettisoned in favor of a priority to its
released on time; cross-functional team design and parallel customers,
but, staying on development process. Personnel did not object to the investors, and
budget but new process, which represents evolutionary change: employees; fits
reaching the but, sudden introduction gave no time to form, storm, the business
market late norm, and perform à la Tuckman (1965) and created environment; and
substantially or surfaced forces affecting behaviors. To note, the is adaptable to
reduces profits; requisites of success (e.g., drivers, business processes, change (Kotter &
MediSys Corp. rewards, and communications) were not aligned Heskett, 1992)
cannot afford that. beforehand.
MediSys Corp.: The IntensCare Project—The Heart of The
Matter (2)
Figure: Weisbord's Six-Box Model
Purposes • Considering the team's lonely travails, MediSys Corp.'s mission and goals are a somber Outside Environment
yet increasingly urgent proposition.

Purposes
• There no longer is an immediate fit between purposes and structure: the organization
Structure chart does not empower the new cross-functional team design and parallel development
process.

• The relations between individuals and between departments are adversarial. The
Relationships interdependence that cross-functionality demands has not come to pass. The mode of Relationships Structure
conflict resolution is avoidance: team members are uncooperative and—with
exceptions—unassertive.
Leadership
• MediSys Corp. formally rewards contributions to departments, not cross-functional
Rewards accomplishments. Reporting and evaluation arrangements remain what they were under
the erstwhile product development sequence.

Leadership • Fogel neither defines the team's purposes nor embodies these in IntensCare; his
normative style of leadership is hands-off. Helpful Rewards
Mechanisms

Helpful • No helpful mechanisms (e.g., external support) facilitate the accomplishment of

Mechanisms objectives; indeed, what is at hand hinders efforts.

Source: Weisbord, M. (1976). Organizational diagnosis: six places to look for trouble with or without a
theory. Group and Organization Studies, 1(4), 430–447.
MediSys Corp.: The IntensCare Project—The Heart of The
Matter (3)
Exhibit No. 1
• Fogel does not set the tone; Gerson no longer contributes; Beaumont intervenes but late
in the day; hierarchy is engrained so no one takes up the slack.
Exhibit No. 2
• The parallel system requires that all critical functions work together from concept to
production but no changes have been made regarding reporting and evaluation
arrangements. The functional perspective trumps all others, notably psychodynamic,
social identity, social network, temporal, and evolutionary perspectives (Poole &
Hollingshead, 2005).
Exhibit No. 3
• Mukerjee, who reports to O'Brien, was allowed to outsource software design and
development to firms in India despite notoriously difficult experience.
MediSys Corp.: The IntensCare Project—The Heart of The
Matter (4)
Exhibit No. 4
• Team members withhold key information to avoid confrontation. Merz, for example,
bears responsibility for profit and loss but is not informed of Mukerjee's difficulties.
Exhibit No. 5
• No one knows how to proceed vis-à-vis modular design.
Exhibit No. 6
• Team members are not allowed to focus: they are often pulled away to work on other
priorities in their functional areas, presumably with Beaumont's blessing. Despite the
personnel shortages that overlapping assignments intuit, no personnel has been hired to
relieve pressure, no resources are contributed or shared by MediSys Corp.'s other
projects, and team members are left to their own devices.
MediSys Corp.: The IntensCare Project—The Heart of the
Matter (5)
Exhibit No. 7
• Fisher, who had tested the IntensCare concept in the market, held discussions with Design
& Engineering, and served in the ad hoc product development team, was promoted VP
(Sales & Marketing) just before the IntensCare Product Development Team was
formalized, a move that heightened the pressure on Merz, his newly-hired successor.
Exhibit No. 8
• As Beaumont's original annotations on HR's list of prospective team members for
IntensCare suggest, the team exhibits considerable diversity; thence, intrinsic variances
in goals and interests have fostered intra-group conflict. The Thomas–Kilmann Conflict
Mode Instrument (1975) would reveal a predominance of avoiding over competing,
accommodating, collaborating, or compromising, signifying low scores along the two
basic dimensions of assertiveness and cooperativeness. The Blake–Mouton Managerial
Grid (1962) would reveal a high concern for people and a low concern for completing
task, signifying impoverished management.
MediSys Corp.: The IntensCare Project—Suggestions for
Improvement—Now, Soon, & Next (1)
Scope out the dysfunctions of the IntensCare Product Development Team: (i) absence of
trust; (ii) fear of conflict; (iii) lack of commitment; (iv) avoidance of accountability; and (v)
inattention to results (Lencioni, 2002).
Justify team formation: (i) the challenge is relatively complex, uncertain, and holds
potential for conflict; (ii) the challenge requires inter-group cooperation & coordination;
Now*

(iii) the challenge and its solution have important organizational consequences; (iv) there
are tight deadlines; and (v) widespread acceptance and commitment are vital to
successful delivery of IntensCare (Serrat, 2010).
Circumscribe and assuage any remaining resistance to change: (i) individual (e.g., blind,
political, ideological); (ii) group (e.g., turf protection and competition, closing ranks,
demands for new leadership); or (iii) organizational (e.g., insufficient sense of urgency,
this too shall pass, diversionary tactics, sabotage, claiming timing is wrong)?

* "Now" means immediately.

MediSys Corp.: The IntensCare Project—Suggestions for
Improvement—Now, Soon, & Next (2)
Clarify the fundamentals of team performance à la Drexler–Sibbet (1994): (i)
orientation—why am I here?; (ii) trust building—who are you?; (iii) goal clarification—
what are we doing?; (iv) commitment—how will we do it?; (v) implementation—who does
what, when, where?; (vi) high performance—WOW!; and (vii) renewal—why continue?
Align goals and synergize individual efforts.
Now*

Stress-test the new release date for IntensCare and retrofit all activities in keeping with
the new schedule, viz., August 2009.
Using all available resources, accelerate software design and development outsourced to
firms in India, with close attention to project metrics (e.g., time, cost, human resources,
scope, quality) by Mukerjee under daily supervision by O'Brien. If the critical path cannot
be held, pull out and relocate works to the U.S.
With technical inputs from Gerson and clear communications from O'Brien, resolve the
non-issue of modular design: commit to modularizing the next version of IntensCare.

* "Now" means immediately.

MediSys Corp.: The IntensCare Project—Now, Soon, &
Next (3)
Encourage all members of the IntensCare Product Development Team to change their
perspective on problems: the new mental model of blame should be replaced by that of
curiosity and constant inquiry to uncover what is unseen.
Train all members of the IntensCare Product Development Team in other functional areas
so they might understand the complex issues others face and acquire new skills.
Soon*

Adopt a form of distributed leadership (e.g., formal, pragmatic, strategic, incremental,

opportunistic, cultural) and adjust the business processes for reporting and evaluation
based on that.
Institute seamless cross-functional communications to represent accomplishments and
challenges company-wide and build team spirit.
Reward the members of the IntensCare Product Development Team for cross-functional
teamwork, not just for individual work toward departmental objectives.

* "Soon" means within 1–2 months.

MediSys Corp.: The IntensCare Project—Suggestions for
Improvement—Now, Soon, & Next (4)
Hire interdisciplinary personnel to diversify (seemingly highly technical) skill sets and work
styles and promote and enrich cross-functional approaches to product development.
Ongoingly build an open and trustful working environment that fosters cohesion (e.g.,
annual planning meting and leadership development retreats, weekly and quarterly
team meetings, ad hoc topical meetings) and make sure going forward that Medisys
Next*

Corp. projects and their teams have the external support they require, for example by
instituting communities of practice.
Boost learning from experience, for example by means of after-action reviews, exit
interviews, learning charters, learning histories, and the Most Significant Change
technique.
Hire an ombudsperson to help address work-related issues where differences cannot be
reconciled.

* "Next" refers to the ongoing institutionalization of improved team practices from August 2009.
MediSys Corp.: The IntensCare Project—Suggestions for
Improvement—Now, Soon, & Next (5)
Building on the foregoing actions, enshrine in MediSys Corp. the following characteristics of
successful teams: (i) a clear, elevating goal; (ii) a results-driven structure; (iii) competent
team members; (iv) unified commitment; (v) a collaborative climate; (vi) standards of
excellence; (vii) external support and recognition; and (viii) principled leadership (Larson
& LaFasto, 1989).
Next*

* "Next" refers to the ongoing institutionalization of improved team practices from August 2009.
MediSys Corp.: The IntensCare Project—Risks, Costs, &
Other Concerns (1)

From an up-close examination of MediSys Corp. and its contextual conditions,

this presentation has tabled recommendations to resolve the problems
affecting IntensCare and safeguard MediSys Corp.'s future. Weisbord’s Six-
Box Model helped assess the functionality of business operations and
processes; what other possible diagnostic models were considered [e.g.,
Leavitt’s Diamond (structure–task–technology–people), the McKinsey 7-S
Framework (strategy–structure–systems–shared values–style–staff–skills)] do
not bring sufficient attention to bear on relationships and helpful mechanisms,
two crucial drivers impacted by cross-functional team design and parallel
development. The recommendations resonate with MediSys Corp.'s mission and
core competencies; encompass customers, personnel, and competitors; and
make for ease and speed of accomplishment as well as attractiveness; that
said, the general agreement the recommendations can deliver does not imply
easy change—it still takes energy to move a group, even when everyone is on
board.
MediSys Corp.: The IntensCare Project—Risks, Costs, &
Other Concerns (2)
• The primary risk relates to • No costs are associated with the • With distributed
software design and recommendations, with one possible leadership, other
development in India. exception related to the primary risk ways to leverage
IntensCare and all available and possibly associated with the Fogel's talents will
resources including technical addition of resources to accelerate or have to be found.
backup should be deployed to relocate software design and • No ethical or
ensure timely delivery of the development. The cost of acceleration diversity-related
software, with no hesitation to or relocation is difficult to quantify at concerns* are
pull out and relocate works to present but ought not be major given foreseen.
the U.S. if the critical path Medisys Corp.'s expertise in related
cannot be held. ventures.

Risks Costs Other

Concerns
* There is no age, gender, race, etc. segregation in MediSys Corp. and the recommendations are
diversity-neutral; likewise, there are no issues pertaining to personal integrity or ethical behavior.
Annex: Leadership—A Taxonomy of Distribution

Formal • Based on designated roles and job descriptions

Distribution
Pragmatic • Based on necessity, often with ad hoc delegation of workload
Distribution
Strategic • Based on planned appointment of individuals tasked to contribute to the
Distribution development of leadership throughout the organization
Incremental • Based on devolution of greater responsibility as people demonstrate the capacity
Distribution to lead
Opportunistic • Based on capable people willingly extending their roles to organization-wide
Distribution leadership because they are predisposed to take initiatives
Cultural • Based on intuitive, collective, concurrent, collaborative, and compassionate
Distribution leadership
Source: Adapted from National College for School Leadership. (2004). Distributed leadership in action.
Nottingham.
Annex: References (1)

Blake, R., Mouton, J., & Bidwell, A. (1962). Managerial grid. Advanced Management - Office
Executive, 1(9), 12–15.
Donnellon, A., & Margolis, J. (2009). Medisys Corp: The IntensCare Product Development Team.
Harvard Business School. Issue: 4059.
Kotter, J., & Heskett, J. (1992). Corporate culture and performance. New York, NY: Free Press.
Larson, C., & LaFasto, F. (1989). Teamwork: What must go right/What can go wrong. Newbury
Park, CA: Sage Publications, Inc.
Lencioni, P. (2002). The five dysfunctions of a team. San Francisco, CA: Jossey-Bass.
National College for School Leadership. (2004). Distributed leadership in action. Nottingham.
Annex: References (2)

Poole, M., & Hollingshead, A. (2005). Theories of small groups interdisciplinary perspectives.
Thousand Oaks, CA: Sage Publications, Inc.
Serrat, O. (2009). Working in teams. Manila: Asian Development Bank.
Sibbet, D. & Drexler, A. (1994). Team performance: Principles, practices. San Francisco, CA:
Grove Consultants International.
Thomas, K. (1975). Thomas–Kilmann conflict mode instrument. In M. Dunnett (ed.), The handbook
of industrial and organizational psychology. Chicago: Rand McNally.
Tuckman, B. (1965). Developmental sequence in small groups. Psychological Bulletin, 63(6):
384–399.
Weisbord, M. (1976). Organizational diagnosis: six places to look for trouble with or without
a theory. Group and Organization Studies, 1(4), 430–447.
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