ASSIGNMENT
On
LEADERSHIP STYLE AND ASSESSING THEIR IMPACT
SUBMITTED BY:-
GAGAN SINGH JITEN AGARAWAL MAMTA BHOJWANI PIYUSH CHUNARKAR SHOaIB MOHIT MALVIYA POOJA GUPTA
UNDER THE SUPERVISION OF :-
MR.YOGESH JADHAV
DATE OF SUBMITION: - 22/12/2009
CONTENT
Sl. No. Topic Page no.
1 INTRODUCTION OF GENENTECH COMPANY 3
2 PROFILE OF GENETECH COMPANY’S CEO(Mr. AURTHUR LEVINSON).
4
3 LEADERSHIP STYLE OF Mr. LEVINSON 5-12
4 INTRODUCTION OF FOREST LABORATORY 12-13
5 PROFILE OF FOREST LAB’S CEO(Mr. HOWARD SOLOMAN)
13-14
6 LEADERSHIP STYLE OF MR. SOLOMON 14-16
7 CONCLUSION 17
Rather than focusing on personalities that have commonly featured in the mainstream press, our intention was to identify thought leaders and technology
pioneers known within the industry to have made significant contributions to the science and business of biotech.
Genentech Company.
Introduction to the company:
Genentech is one of the world's leading biotech companies, with multiple products on the market for serious or life-threatening medical conditions and over 30 projects in the pipeline. The company is the leading provider of anti-tumor therapeutics in the United States.
Genentech has been named by Fortune as one of the "100 Best Companies To Work For" for the 10th consecutive year. The company has headquarters in South San Francisco, CA as well as manufacturing facilities in Vacaville and Oceanside, CA and Porriño, Spain.
In 2007, the company reported record revenues of $11.7 billion, a 26% increase, and net income of $2.7 billion.
The CEO of the company is AURTHUR LEVINSON –GENENTECH’S MEDICINE MAN.
PROFILE OF MR. LEVINSON:
Nationality: American.
Born: March 31, 1950, in Seattle, Washington.
Education: University of Washington, BS, 1972; Princeton University, PhD, 1977.
Family: Son of Sol and Malvinas Levinson; married Rita May Liff, December 17, 1978; children: two.
Career: Genentech, 1980–1987, senior research scientist; 1987–1989, director of Cell Genetics Department; 1989–1990, vice president of research technology; 1990–1993, vice president of research; 1993–1995, senior vice president; 1995–, president and CEO.
Awards: Corporate Leadership Award in Science, Irvington Institute, 1999; Corporate Leadership Award, National Breast Cancer Coalition, 1999; named one of the Best Managers of 2003, Business Week.
Arthur Levinson, a molecular biologist turned CEO, joined Genentech, a research-oriented biotechnology company, just before the company went public in 1980. He rapidly rose through the ranks to become president and CEO by 1995. His commitment to basic research and his motivation to create a company that was also able to turn a profit made Genentech a model company for the biotechnology industry and a recognized leader in selected pharmaceutical markets. Levinson relied on his scientific instincts as he manipulated Genentech, a relatively small company, to a leadership position among the highly competitive pharmaceutical giants.
The leadership instincts possessed by levinson:
He used to follow a Transformational leadership style. He was a person with great enthusiasm and energy which he wanted to inject in his organization. He had a vision and a passion to achieve those targets.
He started with developing a vision, a view of the future that will excite and convert potential followers. He wanted to shed the company’s status of a scrappy start up to become a consistently profitable powerhouse. if levinson pulls off this transition , it will be the strongest signal yet that the industry that Genentech helped create more than 25 years ago is finally delivering on its promise-to generate a steady stream of drugs to conquer one’s untreatable illness.
His next step was to sell the vision by creating followers, which happened by creating trust as well as personal integrity. In fact it was his deep experience in the lab and his infectious enthusiasm which became an asset for the company. the people had already a trust on him and which could be seen as when he made an emotional plea to the employees after becoming the CEO to make his company a corporate leader.
His next step was finding the way forward. He already knew the way and simply wants others to follow them. He wanted to bombard the industry by his products by a stream of drugs to conquer one’s untreatable diseases. The route was although not plotted in details, but with a clear vision, direction was always known. he knew that there will be failures ahead (like the one of AVASTIN drug and RAPTIVA
DRUG )and blind canyons along the way but he had the confidence in himself and his employees and knew that he can make it.
He used to always lead the charge by remaining upfront and central during the action. He showed his attitude and actions how everyone else should behave. It is levinson’s unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision.
Overall, he balanced their attention between action that creates progress and the mental state of their followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last through deep and sustained commitment.
A MAN OF VISION:
THE VERY ESSENCE OF LEADERSHIP IS THAT YOU HAVE TO HAVE VISION.YOU CAN’T BLOW AN UNCERTAIN TRUMPET.
Genentech CEO Arthur levinson led his company from a biotech baby to an industry leader – all the while dealing with serious challenges from competitors. He had a clear vision in his mind and a vivid picture of where to go, as well as a firm grasp on what success looks like and how to achieve it.
He had the discipline to work towards his vision single mindedly, as well as direct his or her actions and those of the team towards the goal. Action is the mark of a good leader. He used to always do something in pursuit of the vision inspiring others to do the same.
He created a vision to see his company as an industry leader in the pharmaceutical industry, articulated the vision , passionately owned the vision and relentlessly derived it to completion.
When levinson was thrust into as a CEO in 1995, the former chief, G.kirk Raab, had resigned under a cloud when the company revealed that he had asked Roche (CEO of Roche group) for a personal loan guarantee. Genentech was also smarting from federal criminal charges that it had promoted its human growth hormone for
uses that had not yet been approved by FDA.( Genentech later pleaded guilty and paid a $50 million fine.) levinson called an all employee meeting and made an emotional plea that everyone should ensure Genentech would never face such accusations again.”I completely love this place.” levinson says. “it was very tough for me to see us beating up”.
He began establishing boundaries and controls. all sales, materials for example , would have to be reviewed by Genentech’s legal and regulatory departments.
A POWER PLAYER :
Genentech’s CEO stood by his guns when his company’s leading product stumbled. Then he led his California Company from a scrapping start to a leader in the pharmaceutical industry.
It was he who restored the reputation of the company that has been charged with alleged improper ties. He developed the trust not only within the customers but also within the employees. He made sure that everything is at its place and is going on well.
He managed the company’s notoriously long and treacherous product-development pipeline. he delivered on his promises by managing the product development pipeline.
He lead the company through the difficult transition from small start up to a major corporation. He knew that there is a lot of competition in this industry and he will face stiff competition from his rivals and established players of the industry who have already made there place in the mind of the customers but at the same time he was confident that he can make it.
He motivated the employees even in the face of seemingly unbeatable competition. He always kept on motivating his employees for good work and maintained a healthy environment within the company. He gave firsts priority to safety of workers and made sure that they are not exploited by superiors.
DELIVERING ON PROMISES:
On March 14, 2003, hundreds of angry Wall Street analysts converged on the pierre Hotel in New York city and demanded answers from Genentech inc. CEO Arthur levinson. The biotech company’s experimental drug AVASTIN had failed a key trial in the treatment of breast cancer in September 2002, causing Genentech’s
stock to nosedive a whopping 14 percent, to $27.50. in a single day. Why, analysts wondered would levinson dream of spending a penny more to develop a product that was clearly a dog. “They said I was stupid” levinson says.
The CEO isn’t one to gloat. But as levinson prepares to file for food and drug administration approval for what could be the most important drug in Genentech’s history, he can’t resist. Late stage trial data that was released in may showed that AVASTIN significantly extended the lives of patients with colon cancer. Analysts are now hailing the drug as potential billion - dollar – a year blockbuster. the agency was slated to receive Genentech’s filing on Avastin by the end of September 2003.
Avastin is just the latest in a series of coups for the world’s oldest biotechnology outfit, which was founded in 1976 in South San Francisco. In June , the FDA approved Genentech’s XOLAIR , the first biotech drug to treat asthma. On September 9, an FDA advisory committee unanimously recommended approval of the company’s PSORIASIS drug, RAPTIVA which could hit the market and could be worth more than $400 million a year.
Under Levinson's leadership, Genentech began examining research projects in detail to rate them based on scientific feasibility, medical need, market potential, market protection (that is, how many competing drugs were in the market), and manufacturing economy. His approach to directing the company did not shackle research or reduce its value to the company; rather, it targeted R&D based on criteria that gauged the potential for success. Levinson gave priority to developing new treatments in three areas: immunology, cancer, and vascular biology (blood vessels and their role in disease). Genentech distinguished itself from the competition by its science and its focused management.
CALCULATED RISKS TAKER:
Levinson was able to lead Genentech through challenges in drug development that most CEOs with less of a science background would not have attempted. When a potential breast cancer drug, Avastin, did not meet expectations, Levinson looked at the test results and saw that the drug was successful in treating colon cancer. One disappointment would normally have shelved the drug, but his scientific training prompted Levinson to invest more research dollars on the drug as a potential treatment for colon cancer. His controversial gamble proved to be sound.
Although the drug had not yet received Food and Drug Administration approval by early 2004, many observers expected it to gain approval and become another
blockbuster for the company. Under Levinson's leadership, Genentech competed with the international pharmaceutical giants in selected markets and showed that good science can be profitable. Genentech revenues climbed by almost 30 percent in nine months in 2003, to $2.4 billion.
BALANCING THE ROLES (AS A CEO AND AS A SCIENTIST):
A manager with an area of expertise , especially one that truly inspires him or her , will be better equipped not only to make decisions, but also to motivate others to follow. To succeed levinson has to perform a perilous balancing act.
Although Levinson thinks of himself as a scientist first and foremost, his rare ability to make a success of scientist-as-chief-executive, and balance the roles appropriately, makes the Genentech story compelling. Levinson hopes that balance serves as a roadmap for biotech success well into the future. "Our goal at Genentech is to discover and develop drugs that dramatically improve the treatment options for patients with life-threatening and serious diseases," says Levinson, adding, "We are not looking for an incremental change in existing therapies. We aim to develop genuine breakthroughs."
Levinson's accomplishments as a scientist often obscure the fact that he's a charismatic CEO that sits astride a $92-billion biotech powerhouse—a phrase once considered oxymoronic—who started as a research scientist for the company back in 1980.
His background in science has given Levinson an often unique insight into biotech research. Hence, his bet on the theory of angiogenesis in controlling tumors, and his commitment to building a company that produces long-term results, make Genentech is different from competitors. Those companies often have small product pipelines and hope that success with one product will produce a buy-out by a large pharmaceutical company. Thus, since its creation in 1976, Genentech has stood out among scores of rival companies that have been shuttered on account of failed research, poor financing and flawed business models.
“We believe that strong basic research is the key for identifying breakthrough drug candidates for development in the clinic," Levinson points out.
As fruit of this vision, Genentech now markets several products with revenues of over $6.5 billion that treat a variety of medical conditions, such as heart attack,
allergic asthma, psoriasis, stroke, growth hormone deficiency and cystic fibrosis. These products represent a pipeline that was created, in part, under Levinson when he took over as research chief for the South San Francisco-based company in 1990.
Levinson has since made quite a mark on the company.
Consider this: When he joined in 1980, fresh from a postdoctoral fellowship with the University of California's microbiology department, Genentech offered $35 million in stock to the public and had 166 employees. Today, the company has net annual income of $1.4 billion and 9,500 employees.
A PASSION FOR THE BUSINESS:
Levinson has been a science geek for as long as he can remember. Born and raised in Seattle, he spent weeks at a stretch poring over books on physics and astronomy sent by his uncle, a librarian. As a junior at the University of Washington, he was leaning towards a career in medicine or astronomy when he became obsessed with the idea of trying to answer biology’s toughest questions. That led to a PhD in biochemistry from Princeton in 1977. At the University of California at san Francisco (UCSF) he worked in the lab .there levinson published a ground breaking paper that demonstrated part of the biochemical chain reaction that causes cancer.
From the time of joining the company by levinson he thrived in Genentech’s work –hard-play-hard culture, where scientists in cut-off jeans and torn shirts worked hundred –hour weeks, then blew off stream by playing pranks on one another and carousing at the company’s raucous Friday afternoon parties.
As one anonymous commenter wrote in support of Levinson: “His passion, his leadership and his clarity on why we are here and what we do are great reasons Art is the best for the patients and for the employees of Genentech.” An unintentionally prescient commenter wrote, “Arthur is the North Carolina of Biotech.”
Levinson lets his passion for Genentech shine through, even in the worst of times. Emotional, personal pleas like the one he made in 1995can be extremely motivating-if they are genuine.
While colleagues and investors give levinson high marks today, Genentech has not been free of missteps on his watch. The company made a serious error with Raptiva. As the drug entered late –stage trials, Genentech decided to ramp up
production by taking over the manufacturing task for Xoma ltd. which had been making it until that time. But the new version of the drug had a slightly different molecular structure from the original. In April 2002, Genentech announced that it would have to delay its FDA filing for six months so that it could collect data proving that the new version was comparable to the original.
Now Genentech is facing an all out fight in the psoriasis market. Cambridge based biogen inc. beat Genentech to the punch with a new drug that it had launched in January. Amgen, Johnson & Johnson, and Abbott Laboratories are expected to jump into the market too. Genentech plans to bombard dermatologists with pitches highlighting Raptiva’s advantages : it kicks in faster than other drugs, and patients can easily inject in themselves.
NEVER SAY DIE SPIRIT:
During the development phase of avastin there were many disappointments that would have prompted most pharmaceutical CEOs to abandon the drug. But levinson is not an average CEO. When Wall Street soured on avastin after the breast cancer trials late last year, levinson stood his ground, certain that good science would bring results. Behaving like a scientist, he continually reminded analysts that all cancers are different, and he steered them to promising data from an early colon cancer trial. He taught the same thing to his employees also by setting an excellent example of himself that there are no nine to five jobs in a team but opportunities to achieve something great.
Although levinson hung up his lab coat years ago, he’s still more personally involved in the science of Genentech than most top pharmaceutical executives. When scientists report on their research at weekly review meetings, levinson often shows up unannounced and peppers them with detailed questions.
Even when levinson relaxes at home, he crackles with goal focused energy. Cooking he explains is lot like science: you mix and match ingredients until you come up with that perfect connection.
Throughout levinson’s life he has combined creative thinking with disciplined execution –even in his personal pastime, cooking. Not everyone has the good fortune to embody both skill sets, so savvy executives identify their shortcomings and then find individuals with complementary skills with whom they can learn and collaborate.
To date, Levinson and his company have received quite a bit of positive attention. Disparate publications, such as Fortune, Science Magazine and The Scientist, recently named Genentech the top company to work for in the United States. The company has also received recent awards from Working Mother for making it into its top 100 companies. Wired voted the company number 7 for innovation, technology and strategic vision.
These days when levinson needs a break from the ever mounting pressures, levinson connects his digital camera to his backyard telescope and takes photograph of forward stars.”Some people look at the sky because they like to marvel at how small we are, “he says.”I’d rather marvel at how much we’ve learned and the possibilities that are still out there .Now, its time for this scientist turned CEO to prove that he can keep Genentech’s star from falling.
FOREST LABORATORIES
INTRODUCTION ON FOREST LABORATORY
Forest Laboratories (NYSE: FRX) is a pharmaceutical company headquartered in New York City, USA. Its revenues for the year ended 31 March 2007 were US$3.4 billion. The company's research & development spending has grown rapidly in recent years, and as of 2007, approached almost a billion US dollars a year, which put it on the list of the top 100 global corporations in R&D spending. Forest Laboratories is also known for licensing European pharmaceuticals for sale in the United States. Forest Laboratories is listed on the New York Stock Exchange under FRX.
It should not be confused with the Forest Products Laboratory.
Forest Laboratories, Inc. develops, manufactures, and sells both brand-name and generic prescription and nonprescription drugs in the United States and Europe. The main therapeutic areas that the company concentrates on include depression, Alzheimer's disease/neuropathic pain, hypertension, asthma, and gastrointestinal disease. Its introduction in 1998, the antidepressant drug Celexa has been Forest's blockbuster, accounting for nearly 70 percent of company revenues by fiscal 2002. Sales of Celexa helped make Forest one of the fastest growing companies in the United States in the late 1990s and early 2000s. Late in 2002 the company stopped promoting Celexa in favor of a second-generation version of the drug called Lexapro. Other key products include Tiazac, used to treat hypertension and angina; Benicar, also a treatment for hypertension; Aerobid, an inhaler for treating asthma; and Infasurf, used to treat respiratory distress in infants. Most of the pharmaceutical products marketed by Forest Laboratories were developed by other companies and then licensed by Forest.
PROFILE OF HOWARD SOLOMON
Howard Solomon has been Chief Executive Officer of Forest Pharmaceuticals, Inc. since 1977. Mr. Solomon serves as Chairman of Forest Laboratories Inc. and has been its Director since 1964. The 79 year old executive ranks 3 within
Drugs Howard Solomon, the CEO of a modest drug company in New York City called Forest Laboratories Inc. Mr. Solomon has been with the company for 31 years. The 80 year old executive ranks 5 within Drugs & Biotechnology.he have done his graduation from Yale University.
MEANING OF LEADERSHIP STYLE
Leadership style is the manner and approach of providing direction, implementing plan and motivating people
STRUCTURE OF LEADERSHIP STYLE
Leadership STYLE OF MR SOLOMON
AUTOCRATIC:- It is that type of leadership style in which leader makes decision without reference to any one else .and this same quality was in the Mr. Solomon who have decide to make the drug of depression by keeping in mind of those patient who are passing from this kind of stage. Without referencing to any one in the company he make the antidepressant, Celexa.celexa is the fastest-growing of its class of drugs, which includes Prozac, Paxil, and Zoloft; its share of new prescriptions is 17.5%
DEMOCRATIC: - Mr. Solomon is a person who believes that the best decision is one that is made in a truly democratic fashion. And who also encourage decision making from different perspective. He believes that leaders get the opportunity to lead other because of a presumed ability to make decision not to simply guide others in making
PATERNATISTIC:- Mr. Solomon is a paternalistic leader who act as a father figure of the organization. He makes the decision related to any new launch of drugs but on the same side he also may consult to the other member of the organization.he always believes in the need to support the staff.
POWER PLAYER:- He lead the company through the difficult transition from small start up to a major corporation. He knew that there is a lot of competition in this industry and he will face stiff competition from his rivals and established players of the industry who have already made there place in the mind of the customers but at the same time he was confident that he can make it.
MOTIVATOR He motivated the employees even in the face of seemingly unbeatable competition. He always kept on motivating his employees for good work and maintained a healthy environment within the company. He gave firsts priority to safety of workers and made sure that they are not exploited by superiors.
“ It is the goal and expectation of our employees to maintain the highest standards of business ethics and conduct. It is the honesty and moral integrity of our employees and our activities and decisions which enable all of us to hold our heads high and speak with pride about our efforts.”
-Howard solomon
Comparison of both leadersBoth leaders adopt different types of leadership styles and have been successful in their career.
Leadership style is the manner and approach of providing direction, implementing plan and motivating people.
So by studying the leadership style of both the CEO of these companies we can say that both of them have good leadership quality in them.
Both the leaders have their own styles of managing the organization and both are good at their work.
(1)CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:
Transformational leaders are leaders with a great enthusiasm and those who want to transform the organization there is also a tacit promise to followers that they also will be transformed in some way, perhaps to be more like this amazing leader. In some respects, then, the followers are the product of the transformation often equated with those who can adapt quickly to change. LEVINSON clearly showed his flexibility and success in adapting to changing organizational cultures and bringing about a change in the company by taking it from a scratch to an industry bringing his people with him.
On one side where Mr. levinson stood as a transformational leader for the company and took the company from a baby company to the industry leader with his passion and enthusiasm, on the other side Mr. Solomon was a charismatic leader he was a charm and grace for the employees .He used to take all his decisions himself and had a high self belief in him and his employees. He was a centre of attraction and a
role model for his employees. This is perhaps due to solomon’s amazing ability to sell himself, his showmanship.
(2)CONTINGENCY AND SITUATIONAL LEADERSHIP:
Levinson possesses good leader member relations and invites employees to give feedback and contribute ideas. Genentech’s task structure was deligative as levinson gave his employees the freedom and initiative to be creative. There no fixed procedure how things to be done .His organization operates on a flat, non-hierarchical structure , made out of clusters of companies that operate independently and flexibility to run with out much interference . levinson has cultivated a company culture which is controversial and enjoys a good rapport with his subordinates while solomon enjoys a clear chain of command hierarchy in which feedback is channeled. levinson is relationship oriented while solomon is an authoritarian with a “in your face” management style. Levinson’s leadership is skewed towards a relationship-oriented approach, adopting supportive and participative behavior. He lets his subordinates know that he cares for them and at times, he even get ideas from his subordinates to generate new business opportunities.
Solomon made contribution of heroic of extraordinary leadership ability when he observe certain behavior .
Before 8 year ago the position of this company was not good but when Mr Solomon become the CEO of this company and when he made antidepressant, Celexa, is the fastest-growing of its class of drugs, which includes Prozac, Paxil, and Zoloft; its share of new prescriptions is 17.5%. Since its U.S. launch in September, 1998, Celexa has come to account for almost 70% of Forest's overall sales--about $1.6 billion in the fiscal year that ended on Mar. 31. That's more than five times the level before Celexa was introduced. Profits have grown from about $37 million in 1998 to $338 million last year. Forest's share price has quadrupled in that time, from $20 to nearly $80. This year, the company ranks 18th on the BusinessWeek 50 list of top-performing businesses in the Standard & Poor's 500. And Solomon turned out to be the third-highest-paid U.S. executive in 2001 inBusinessWeek's annual survey, largely because he cashed in stock options worth some $147 million.
CONCLUSION
Effective leaders come in all shapes, sizes, and styles. What matters is not the leaders specific personality, but whether that personality fits with the culture of the organization. And, even more importantly, people relate more to their leader if they have seen glimpses, however tiny, into his or her personality. Leadership is factor that influence the behavior of employees. Managers, who perform the role as a leader, should balance the business needs of the firm and the human resources. They should reconcile the needs of the top management and the needs of the followers. In the global scenario no leadership style can be absolutely followed by the organization. Leadership styles within the nursing practice can be evaluated by understanding the relationship between management and planning, change operations and organization structure. Leadership that focuses on building strong organizational values among employees creates agreement on norms of conduct and patterns of shared relationships. Leaders in highly visible positions in the organization play a key role in transmitting and diffusing values, norms, and codes of ethics. A good leader is a one who understands his team and takes everybody along with him. This can be clearly focused from the charismatic personality of both our business leader MR.LEVINSON and HOWARD SOLOMAN. Both the leaders have a influencing charm in them. True leadership skills, motivation, task relatedness, ethics, sincerity, distinctiveness can be viewed very easily.
