On Weldons Watch

Overview

Past Leadership and Development

Conflicting Values1: Motivation?

What kind of motivation does Weldon possess?

Conflicting Values1
What kind of motivation does he have?

Absence
of Intrinsic
Intrinsic vs
Extrinsicmotivation...
motivation ?
Yes, he says he has the full responsibility and values
Yet we felt its superficial People can tell if he is honest or not.
If you have 250 grains of sand and 240 are going up and 10 are not doing so well,
it doesnt really affect you.
Its really the magic of decentralization that allows things
to work at Johnson & Johnson.

2009 total compensation $22 million USD

According to one article he ranks as the second highest compensation earner in the pharma industry

Conflicting Values2
From a company perspective

Conflicting Values2: Right vs Right

From a company perspective

Cut down
COST

Maintain
QUALITY

Early 2000s, McNeil began to replace senior members of quality control coincides with
Weldon CEO tenure start (since 2002)

Conflicting Values2: Right vs Right

From a company perspective

Do your
job the
right way

Do you job
fast

Quote from former employee: The whole dynamic was very stressful It wasnt Do your job the
right way, it was Do your job fast.

Conflicting Values3: Compatibility?

In other words Growth vs Corporate Values

Growth & Corporate Values?Is it a tradeoff relationship?

Is it compatible? Group 2 showed the same company similar
Burke seemed to balance it ? Then whats the difference?

Burke

Weldo
m

Took the lead

communicati
ng with the
customer

Re
sp
on
sibi
lity

Goggins were
responsible

Announced
First day

Sp
ee
d

Wait until
information is
gathered
(one month
later his
opinion in
blog)

Authentic/ values-based leadership

and followership

Constraints and Actions

Key actors
William Weldon, CEO of J&J
Colleen Goggins, worldwide chairman, J&J consumer group
Peter Luther, president of McNeil
Joshua Sharfstein, FDA principal deputy commissioner
Edolphus Towns, chairman of the Committee on Oversight and Government Reform

Constraints and Actions

William Weldon, CEO of J&J
Lack of
leadership
developmen
t
(lack of
moral
courage and
vulnerability)

Self justification
Given the conditions that
were working with today, I
think weve responded in
probably the most
responsible way any
company couldve
responded.
"Ive taken taken full
accountability for this from
the beginning"

Health issue

Unable to attend the

hearing and leave
the matter to
Goggins

What would you do?

Constraints and Actions

Colleen Goggins, Worldwide Chairman, J&J Consumer
Group
Lack of
leadership
(not star
follower)

Yes (wo)man attended to the first

hearing on behalf of
William Weldon.

Next CEO
material

Weldons slave always on Weldons

side

Organizati Goggins assumed

What
would
youwould
do?fit What would the consequence be (if
onal
that McNeil
culture in
or adapt to the culture
she
spoke
up)?
consumer of J&J consumer
group

group, which focused

Further Discussion Questions

Weldon:
- If you have sales background like Weldon and worked
in a healthy successful company like J&J, how can you
develop yourself to have authentic leadership?
Goggins:
- How can you lead a new business unit which was
assigned to you and your team?

How can firms like J&J choose their leader?

Lessons Learned

Lesson 1: Leadership is about moral

courage, taking responsibility and
action ASAP
The recalls suspended over several months.
Didnt show up at all at the hearing.
Press release as primary source of communication,
an inefficient way to communicate with public

Lesson 2: Lack of Transparency

Harms Leadership a lot
Late notification to public of the quality issue
Voluntary recall mixed with phantom recall

Lesson 3: Put Core Value at a higher

priority than performance when
assessing a person to a leading
position

Weldon is a sales man with high performance. That is

one of the reason he prioritize Speed over Quality.

Lesson X: Easy to criticize, but can

you do it right if you were in the
situation?
There is a good track record that former CEO Burke
dealed with similiar situation successfully. Why Weldon
did not deal with it in the same way?
We saw the outcome of the case as a failure, but we
may never know what kind of merits J&J gained by
doing this way.
All in all, it is just a case, written by a certain author,
who is probably biased.

What actually happened to Goggins?

What actually happened to Weldon?