Charting the Future

The case study examines the organizational transformation challenges faced by MedTech Diagnostics, an 850 million medical diagnostics company attempting to balance innovation speed with regulatory compliance and quality standards. CEO Patricia Chen must navigate the tension between traditional, reliability-focused operations and agile innovation pods, while facing a critical contract renewal worth 187 million that represents 22 of the company's revenue. The case illustrates the complexities of dual operating models in regulated industries. MedTech's traditional divisions generate 120M in EBITDA and are FDA-compliant but are declining at 8 annually. Innovation pods achieve 120 growth and high customer satisfaction but face higher post-market issues and lower FDA approval rates. Hybrid teams intended as a compromise satisfy neither approach, demonstrating the difficulties of organizational ambidexterity. Chen faces three strategic options: controlled evolution over 24 months, creating a separate subsidiary for innovation, or transforming into a platform company. Each option carries significant costs, risks, and uncertain outcomes. The case explores critical organizational design questions, including culture change, stakeholder management, resource allocation, regulatory navigation, and leadership alignment in transformation contexts. Key themes include managing organizational culture during transformation, balancing innovation with quality in regulated environments, addressing internal resistance and political dynamics, developing effective dual operating systems, and making high-stakes strategic decisions under uncertainty. The case is designed for classroom discussion on organizational change, innovation management, and strategic decision-making in complex operating environments.

Bayer Canada empowers frontline staff through a dynamic shared ownership model, boosting customer focus, collaboration, and inclusive leadership.

Novonesis CEO Ester Baiget shares how advanced tech and a unique ‘library of strengths’ are transforming food production and laundry solutions globally.

The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded startup or spin-off company. It discusses the genesis and context of Kontor, an internal venture funded by Resmed Inc. Resmed is an S&P 500 MedTech company. At the time of the case, May 2024, Resmed was also experiencing increasing external competitive threats and pressure on its margin due to GLP-1s, a class of medicines. Kontor is an internal venture at Resmed trying to find its way through turbulent times. Kontor applies Resmed's class-leading comfort and fit technology to the AR/VR space, thus making these devices more comfortable for the user. Kontor has been running for several years and Erika, the case protagonist, is the newly appointed general manager. The current turbulent situation is causing the executives to question investment in the internal venture. Erika must deal with many challenges, but the fundamental question is whether Kontor will create the most value for Resmed as an internal venture or whether it should be spun out and in what manner. The case compares five strategic possibilities: 1) Spinning out the business and running Kontor independently of Resmed with external investors, 2) keeping Kontor wholly owned by Resmed but, run it off-balance sheet, 3) sell Kontor to a strategic buyer, 4) keep running Kontor internally with operational assistance from Resmed Inc, or 5) wait and see how the venture goes without making a decision in the near term thus preserving all options.

This exercise provides a structured reflection tool designed to help individuals explore the significant events, emotional highs and lows, and patterns that have shaped their personal and professional journeys. Commonly used in executive education, leadership development programs and coaching contexts, the Lifeline Exercise enables participants to create a visual map of their experiences, identify key themes and gain valuable insights for future growth. The exercise involves creating a timeline graph where participants plot significant life events according to their emotional intensity in a range from deeply challenging experiences to peak achievements. Through this visual representation, participants can recognize patterns in their responses to adversity and success, understand the strengths that helped them navigate difficulties and identify recurring themes in their decision-making and growth. The accompanying teaching note provides comprehensive guidance for facilitators, covering three key stages: setting the stage for reflection, creating the lifeline graph, debriefing the exercise. It offers detailed instructions for conducting the exercise in various settings, whether for large groups, small groups, or individual sessions, and with specific approaches tailored to each context. This reflective tool serves multiple purposes: to increase self-awareness, recognize behavioral and decision-making patterns, gain perspective on how experiences have shaped values and priorities, and clarify future goals based on past insights. The exercise emphasizes the creation of a supportive environment where participants can engage in meaningful introspection while maintaining appropriate boundaries around personal sharing.

In this edition of Leaders Unplugged, IMD President David Bach and Vestas CEO Henrik Andersen discuss Europe’s energy risks and bold leadership.

Novonesis CEO Ester Baiget shares how the Danish biosolutions leader uses science, AI, and culture to transform food, detergents, and sustainability.

Join Knut Haanaes and Julia Binder with climate negotiator Paul Watkinson as they unpack global challenges and progress in the clean energy transition.

When Antje Kanngiesser became CEO of Swiss energy company ALPIQ, she inherited a traditional culture, weary from restructuring and leadership churn. Partnering with IMD Professor Susan Goldsworthy, she launched a Secure Base Leadership program to unite leaders and co-create the future. The results were positive: Alumni became Coaching Ambassadors, SBL was embedded into processes, and executives were trained as coaches. Via a five-day program that became a company-wide movement, ALPIQ transformed culture by making leadership personal, shared and lived daily.

World Economic Forum President Børge Brende on new world order: geopolitics, resilience, and risk at IMD Alumni Symposium