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

2. Challenges Intense scrutiny Slashed headcount Decreased budget Increased competition

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

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

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

7. Thoroughly examined all skill sets, roles, and responsibilities

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

9. And…

10. Outsourced everything

11. Yes, everything

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

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

14. 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

15. #1 Outsource to End-users

16. #2 Consultant Network: The Inner Circle Four research consultants Technical consultant Graphic designer/library and user services

17. #3 Expanded Consultant Network Patent research consultant Four consulting firms

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

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

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

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

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

23. 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

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