Management Recommendations

Management Recommendations: Johnson & Johnson Case Study

Johnson and Johnson’s decentralized governance has considerably inhibited its segments’ growth, thereby calling for more controland the establishment of robust quality standards. While the push for balance in the management and maintenance of J&J’s traditional autonomy and the entrepreneurial culture is critical, the organization can build on and establish measures to achieve this equilibrium.

Currently, J&J has taken particular measures to manage its diversified portfolio, ensuring growth and eradicating its reputation issues. The organization focuses on establishing and introducing top-notch products in each division through research and development, promoting collaboration among the independent units, and ascertaining better and frequent communication. J&J is also drawing on diverse skills from the various divisions and combining knowledge in diagnostic, devices, and drugs while maintaining itsdecentralized nature.

The first improvement approach J&J can consider is gaining oversight control over the firm’s different units. Merging divisions will considerably align thedevelopment process, ensuring that the various operations are highly coordinated, followed, and increased productivity. For instance, J&J’s efforts to merge the pharmaceutical division have saved itsubstantial amounts as about 200 projects and 12 facilities slashed and shuttered, respectively. Connecting of divisions will enable the company to cut years off the development time and increase approval of its various R&D projects. Promoting Research &Development will help J&J’s scientific entrepreneurs and professionals to meet, interact, and work with each other casually to establish stronger relationships, increasing the number of business opportunities and partnerships. For instance, J&J’s current R & D efforts have led to the increased acquisitions and development of new products.

Moreover, J&J should establish practices enabling it to pursue entrepreneurial opportunities and maintain its established reputation. This goal can be attained through qualified personnel who oversee and control quality.For example, J&J draws on diverse skills from the various divisions and combines knowledge in diagnostic, devices, and drugs while maintaining a decentralized nature.To foster the company’s proactive quality culture, J&J can leverage its expertise and professionals to develop and enforce quality regulations. In the same context, J&J should alsoestablish standardized Quality Reform across all its divisions. As a result, theproduct quality model willspeak as one company to all stakeholders, including patients, health professionals, and authorities worldwide. While these policies will guide the organization’s operations, J&J’s executive should continuously improve quality by reviewing its quality systems and process to ascertain effectiveness, adequacy, and suitability.

Further, J&J can pursue emerging opportunities by establishing an IT Unit, which will improve coordination and cooperation across the company. To easily share data across all divisions, J&J needs to standardize the formats and definition of its data to encompass the key operational elements and establish IT amenities to facilitate the sharing of electronic information. In J&J’s efforts to control communication and collaboration, the firm should develop and apply IT expertise as a corporate and not as a division. The definition of data standards and communication methods, in this case, should be critical responsibility of high level IT managers. J&J should also consider outsourcing to implement changes as organizational consensus could be slow. Position to overseeing the use and integration of technology in the whole firm requires professionals with no exposure to the J&J culture. They can get rid of the decentralized culture that lacks consistency in the organization’s practices. Notably, methods involving the adoption of standards and personnel shifts are efficient when mandated by external parties.