Organization and Strategy at Millennium:
TABLE OF CONTENTS
I. Resistance to Change
II. Organizational Structure
I. General Recommendation
II. Motivating Through Change
Millennium Pharmaceutical is currently developing new organizational strategies in response to the evolving changes within the biopharmaceutical industry. In our quest to provide organizational recommendations in assisting Millennium in its implementation of new strategies, we have constructed a brief overview of the company and a synopsis of the case, the central problem Millennium is confronted with, an analysis of what has transpired accompanied with applied course concepts pertinent to those of motivation, resistance to change and organizational structure, and a set of recommendations prepared for Millennium to better its ongoing transition and transformation.
Founded in Cambridge, Massachusetts by Mark Levin in 1993, Millennium Pharmaceuticals has since undergone three major phases. Levin’s vision for Millennium was one that amalgamated areas of genetics, biology, chemistry, robotics and computer systems, which pushed him to develop a competitive advantage in research discovery. As information, technology and tools became more prevalent, however, this competitive advantage eroded away, prompting Millennium to pursue acquisitions, initiating its shift in focus away from research discovery and onto drug development and commercialization, placing it in in its second phase. The third and current phase of the company is characterized by the horizontal breadth being narrowed down to three therapeutic classes. As Millennium was shifting further and further away from its initial organizational goals, it required a transformational leader, being Dunsire. As the company is transitioning downstream, the problem of who would best fit the vacant position of head of research and development also arose, which is also instrumental in Millennium’s ongoing transformation.
The central problem faced by Millennium pivoted around its difficulties in effectively executing a downstream transition from its initial focus, vision, and culture on research and development onto that of drug development and commercialization. The change in direction of Millennium’s focus was first initiated in the second phase of Millennium’s evolution. This need for change was triggered by the external forces that were diminishing and eliminating Millennium’s initial competitive advantage. That is, the amalgamation of hard sciences, powerful computer systems, top-tier university researchers, and medical doctors to create the most powerful team in discovering root causes of diseases. Millennium had formed a large number of alliances to improve its research capability and productivity, but disadvantages of these alliances began to manifest, along with external forces characterized by the rapid dispersion of technology and tools, which in combination eroded Millennium’s competitive advantage the field of discovery. This prompted Levin to shift Millennium away from discovery alliances and towards drug development and commercialization business. Its process of transition thus became Millennium’s central challenge. The need for this transition was dire in order to stay competitive and profitable in the evolving market. Dunsire, as the appointed transformational leader, hence faced difficulties in the areas of professionalization of the company while trying to maintain its base culture, shift in organization focus from research and development to commercialization, organizational restructuring and reallocation of resources and...
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