Survival Tactics at Ethicon Endo-Surgery Cindy Meisner Ethicon Endo-Surgery, Inc. SLA Pharmaceutical & Health Technology Division Spring Meeting April 5, 2005

Challenges Intense scrutiny Slashed headcount Decreased budget Increased competition

Device/Ethicon Challenges Non-traditional role Elimination/outsourcing of specialist roles –Materials specialists –Patent specialists –Standards specialists –Biocompatibility specialists –Information technology specialist

Solutions Outsourced services Elimination of low-value services Virtual transition Branding Differentiation Alignment with client processes

But… Did not want to cut more services Wanted to add more services Only 2 people

Thoroughly examined all skill sets, roles, and responsibilities

Changes Added new roles: –Business Relationship Manager –Information technology specialist –Graphic artist

And…

Outsourced everything

Yes, everything

But we manage the outsourcing and Our sphere of influence is extended

Services Virtual library Custom research Monitoring & alerting Training, programming & consulting

Ethicon Roles Team Leader –Business relationship management –Planning –Administration –Budget –Consulting & training services Analyst (Project Manager) –Electronic resources management –Vendor relations –Research services –Monitoring & alerting services

#1 Outsource to End-users

#2 Consultant Network: The Inner Circle Four research consultants Technical consultant Graphic designer/library and user services

#3 Expanded Consultant Network Patent research consultant Four consulting firms

Inner Circle Investment EES address Access to EES/J&J network Laptop with remote access Passwords for premium sources Provide full-time work 30 hours for professional development

Inner Circle Investment, cont. Office space for non-remote consultants PO and supplier management (secrecy agreements, etc.) Team meetings Team building events

ROI Loyal and committed partners Knowledge of the business Fast turnaround Professional camaraderie

Customer Benefit Saves time, money, effort Provides turnkey service Consistent results High quality results

Challenges Recruit and select right team Develop effective and efficient processes Manage relationships Communicate! Communicate! Communicate!

Process for Engagement Ethicon associate initiates project and partners with client (gathers requirements, etc.) Ethicon associate gives project requisition to consultant Consultant delivers results to client and/or Ethicon associate Consultant sends completed requisition to Ethicon associate Ethicon associate records project data and monitors client satisfaction

Outlook # of Ethicon employees will not increase # of consultants will likely increase Company information function will remain