HOW DO YOU MANAGE MAGIC? Based on the case, How Do You Manage Magic?, please pro
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Question
HOW DO YOU MANAGE MAGIC?
Based on the case, How Do You Manage Magic?, please provide in depth answers to the three questions at the end of the case.
How Do You Manage Magic?
According to science fiction writer Arthur C. Clarke, “Any significantly advanced technology is indistinguishable from magic.” This statement aptly describes much of biotechnology. Manufacturing biotech pharmaceuticals is a complex, technical, and expensive process, with millions of pages of data, daily costs of $1 million, and an 80 percent failure rate. The entire process of getting a new product to market takes ten to twelve years, and there are numerous hurdles that must be cleared along the way. The challenge for biotech managers, then, is how to manage complex processes as well as how to lead workers who are more knowledgeable and highly educated than their bosses.
The process begins with a test tube of cells being injected with a human gene. The gene creates a naturally occurring compound in the human body (interferon is one), but these cells have now been altered to make only that compound. The cells then reproduce and are moved into increasingly large containers until the volume of the fluid is about 2,000 liters. The fluid is purified, yielding two liters of concentrated drug. All told, the procedure takes about five weeks, and if the batch has problems, they won’t be discovered until the end. In spite of facilities so clean that they are more sterile than hospital operating rooms, bad batches can occur. The compounds are hundreds of times more complex than traditional drugs. For example, aspirin has a molecular weight (a crude measure of a compound’s complexity) of about 180; biotech’s average is 25,000.
The scientists who develop and manipulate this complicated process have M.D.s or Ph.D.s in subjects such as analytical chemistry, microbiology, or pharmacology. Biogen CEO James C. Mullen has a B.S. in chemical engineering and in M.B.A., has held engineering positions at pharmaceutical firms since 1980, and is no intellectual lightweight, yet it’s impossible for anyone to fully understand the firm’s variety of specialized disciplines. Michael Gilman, Biogens’s senior vice president of research, himself a research scientist, says “I am completely ignorant about three quarters of the stuff that goes on. And my colleagues on the senior management team? They are 98 percent ignorant.”
Mullen is the right kind of person for the top job—open to debate, eager for input, yet decisive and tough-minded. He relies on objective data, asking, “Is this fact, an opinion, or a guess?” “We’re often making decisions in uncertainly,” Mullen asserts, “If the organization is running correctly, the only decisions that get to my desk are the ones with high uncertainty.” One development team couldn’t answer Mullen’s questions. Mullen says “I was asking questions more from a commercial or a customer’s point of view. I kept meeting resistance. Really, it was an attitude problem.” Finally, in exasperation, Mullen demanded to see the raw data and analyzed it himself, finding trends the experts hadn’t spotted. Mullen uses that experience as a lesson in how not to lead. He explains, “That group had the wrong values for this company. They no longer work at Biogen.”
Another Challenge is to focus on the end result while not losing track of the details. One team proposed a 180-day timetable for completing their FDA application; Mullen insisted it could be done in ninety. According to Mullen, “Sometimes, you get more creativity when you’re in a box than when you can do anything. In really difficult situations, sometimes you get the most interesting thinking.” After Mullen pointed out to the scientists that an extra ninety days of drug sales might be worth $125 million, they completed the application in ninety-eight days. The ten year development process is also a target. Mullen says, “People don’t relate to ten-year product cycles. Half the people here haven’t even worked for ten years. You have to break the time frames down so {that} a person can have an impact and see the impact.”
Mullen wants more emphasis on the bottom line without sacrificing innovation. The CEO focuses intently on one thing at a time; he doesn’t believe in multitasking. When teams are undisciplined, he ends the meeting by stating, “You aren’t prepared. Call me when you’re ready.” Mullen reduced the number of people reporting to him from fifteen to nine to increase accountability. “The campfire culture doesn’t work here anymore, with people sitting around telling each other what’s going on,” maintains Mullen, who is changing Biogen’s culture. “We need to demand results.”
Biogen’s web site’s statement of corporate values claims, “Biogen’s success is based on its people. Everyone here is a leader. The core of leadership is integrity and courage… These shared values describe how we aspire to lead and work together.” Mullen’s leadership at Biogen is moving the firm toward the accomplishment of that vision.
“If the organization is running correctly, the only decisions that get to my desk are the ones with high uncertainty.”—James C. Mullen, CEO of Biogen
Answer the following Questions.
In what ways is Mullen acting as a manager? In what ways is he acting as a leader?
Based on the Fiedler’s LPC Theory of Leadership, answer the following questions: (a) Does Mullen seem to be motivated more by tasks or by relationships? (b) Is the situation at Biogen more favorable or unfavorable? Explain the basis of your opinion. (c) Considering the match or mismatch between leader motivation and situational favorableness, what outcomes would Fiedler predict?
As per the Path-Goal theory of leadership, is Mullen using the appropriate kind of leader behavior as suggested by the theory? Explain why or why not?
Explanation / Answer
HOW DO YOU MANAGE MAGIC?
Answer the following Questions.
In what ways is Mullen acting as a manager? In what ways is he acting as a leader?
Managers and leaders differ in the way they set an agenda, the execution plans and the type of outcomes achieved.
Manager qualities
Mullen relies on objective data and is oriented more towards commercial or a customer’s point of view. He seems to instill some order and structure in his people. He is helping to create policies, procedures and establish a system. he also demands results. He also helps in planning and scheduling with timetables. He reduced the number of employees to instill accountability.
Leadership qualities
Mullen helps in developing and articulating a vision. Mullen inspired and motivated people by telling them what the sales could be if they finished earlier. He wants people to see their impact on the company. he focuses intently on one thing at a time rather than multitasking.
Based on the Fiedler’s LPC Theory of Leadership, answer the following questions:
High LPC leaders tend to have close and positive relationships and act in a supportive way, even prioritizing the relationship before the task. Low LPC leaders put the task first and will turn to relationships only when they are satisfied with how the work is going
(a) Does Mullen seem to be motivated more by tasks or by relationships?
Mullen seems to be motivated more by tasks, details, and procedures. He needs structure and policies. He believes in numbers and he needs them for guidance
(b) Is the situation at Biogen more favorable or unfavorable? Explain the basis of your opinion.
It is a least favorable situation call for low LPC - task-oriented leadership
(c) Considering the match or mismatch between leader motivation and situational favorableness, what outcomes would Fiedler predict?
Favourableness, in turn, is defined by task structure, leader-member relations, and the leader's position power is least favorable.
Mullen is a primary task oriented which matches the situation. The outcomes will be in terms of consistent high monetary results benefiting stakeholders. But it is difficult to expect a disruptive innovation from the company through continuous innovations can happen regularly.
As per the Path-Goal theory of leadership, is Mullen using the appropriate kind of leader behavior as suggested by the theory? Explain why or why not?
Achievement Oriented -Provides Challenges for people with high expectations in an ambiguous and complex environment
At Biogen, the group members are autonomous but still, they need some direction and clarity. The tasks are highly skilled, complex and challenging. Group members are highly intelligent and have high expectations in an R&D environment. We need to have a mix of participative and achievement-oriented leadership style,
He sets challenging goals and deadlines setting high expectations for his people. He wants more innovation. Thus Mullen shows achievement oriented leadership. Mullen is showing appropriate leadership style.
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