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Medtronic Inc.: From Corporate Mission to Organizational Culture (B)
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Reference: BE-157-E
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Year: 1992
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Number of pages: 6
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Geographic Setting: Estados Unidos
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Publication Date: Sep 16, 2005
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Source: IESE (España)
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Type of Document: Case
Description
In early 1990, Bill George launched the "Customer Focused Quality" program (CFQ). This approach established that the only customers of the organization were patients, physicians and hospitals. Facing the problem created in the European branch, Bill realized that he had made a huge mistake in not checking out beforehand the ethical values of the European president. Medtronic publicized the matter internally and externally, notifying the findings to all concerned government bodies, and disclosing the affair to the media. Apart from the European president, four European managers were laid off in connection with the matter. At the same time, he started a review of the subsidiary operations to ensure compliance with company policies and applicable laws. Some months later a new problem related to bribes arose in Japan and some Medtronic managers of this country were sent to jail. Bill George wondered how to deal definitively with these kinds of problems.