Roche Diagnostics downward spiral

They used to be #1 in the US and the world in diagnostics, then their leaders left, the FDA moved in and total incompetence followed. They continue to lose good talent and have mediocre products. And again as they did two years ago, they cut their customer-facing departments, while continuing to be so top-heavy they keep falling over themselves.The most recent reduction of 200 has established Roche as probably the only $1billion organization that does not have a true customer service department, or leader. Instead of going from "good to great", they've gone from "great to desperate".

AT is gone? That's just

AT is gone? That's just plain nuts! Maybe MT was intimidated by AT's talent, abilities and the fact that people liked working for him.

The performance issues within

The performance issues within supply chain under MM have been transparent for 3+ years, her relationship with KK continues to offer shelter. But for how long? At what point doe the Swiss get rid of KK?

It's hard to understand why a

It's hard to understand why a company like Roche is so willing to purge all of their talent. You can't replace an AT. Look at the people who were dismissed. Good leaders are gone at every level.

The cobas 8000 is still years away regardless of what anyone says. The supply chain under MM is content to have 15% of their clinical accounts suffer through backorders (on a good month). Their tech service is now run by a Xerox reject with no medical or diagnostic experience. People who should be in place are gone and those that remain are sloppy seconds. There is no logic to this company anymore. It's almost like they want Indy to fail.

It is going to get worse as

It is going to get worse as well. Here is why:

-Roche has always been a big ship with a small rudder, now that AT is gone it is a big ship set adrift in a very stormy sea.
-The software and hardware on the flagship cobas 6000 has a lot of issues and customer satisfaction is not very high. The 2 product managers for the 6000 are gone, one quit and not sure what happened to the other (most of marketing is gone now). Again, big troubled ship with no rudder.
-The Modular series is ancient and with the ongoing delays of the cobas 8000 (if it ever comes to the US), many high volume customers are starting to look elsewhere since the 6000 won't keep up in big labs.
-Don't talk to me about Modular Evo either, what a buggy joke. They took the one product that actually worked well and broke it.
-Still no leadership in sight for customer service and do I even have to mention the BOC...
-As mentioned ealier the quotas on the field will be so high that very few people will make any money this year, killing morale even further.

So there we have it, a big rudderless ship adrift in enemy territory during a Cat 5 hurricane with an ignorant Nimrod captain and most of the people who know how to save it already sailing away in the lifeboats. Time to abandon ship...

Losing AT is a disaster for

Losing AT is a disaster for Roche Central Diagnostics. It is a clear signal that very senior management is failing. It is a giant red flag for anyone in the industry who either has or might consider a career with Roche.

I don't think the loyalty is

I don't think the loyalty is waning, I KNOW it is gone! I think that every single employee, with the exception of those who MT brought in or promoted, can't wait to see him fail. His under handed ways will result in employees working to ensure his failure. MT may win an occasional battle, but the war will end in his utter career destruction. Every unethical, illegal and stupid move (which basically sums up everything that MT does)is being closely monitored,recorded and reported- and in the end, he will hang himself. That day can't come fast enough!

DR was a VP a few years back.

DR was a VP a few years back. With the shrinking of the company a lot of directors and managers have had their titles and compensation reduced. All part of the death spiral

Isn't it funny how for years

Isn't it funny how for years under TO, you'd rarely see a Roche posting get many responses, but now under MT there are a ton? I think the loyalty is waning.

AT is a good one-I agree. As

AT is a good one-I agree. As long as MT is around, more good ones will leave. It is a target rich place for recruiters to seek good people.

The thing that hit me most

The thing that hit me most about AT when he first came over from Germany and took the VP position in CD was that he was sincere. He held a town hall about a month into his new post and he knew the names of people asking questions, no matter how minor they were in the organization.

He also knew the business, far better than anyone in the senior leadership teams at Roche. He was the best and I wish him well! Roche lost a good one.

To the knowldegeable Roche

To the knowldegeable Roche cardiacs poster... will they have Troponin I on Response? How about on automated system? We really need it

Well, if "DR" is _on _itter,

Well, if "DR" is _on _itter, then yes he was let go, but I don't think he was a VP. He was at one time in the Customer Fulfillment area, but was in way over his head, just like many of them. So he took a title reduction when he moved into the service area. Not a very good leader, nice guy though.

I heard another VP hit the

I heard another VP hit the dust, DR. Anyone know what happened here?

Roche does have the staff to

Roche does have the staff to sell the response system, however, the culture that MT has created will not reward people because he was stupid enough to agree to quotas so high that no sales rep will make money. MT believes that NAZI (AKA JS style) of management will work, but not here in the U.S.--everyone is working to ensure MT's rapid implosion. So, bottom line, can they sell it-yes they can. Will they sell it--no they won't--not until a credible leader is put in place.

You all seem in tune with

You all seem in tune with roche..what do you know about their new rapid probnp test that they are marketing for response biomedical?
Are they serious about selling units?

SZ and AT weren't fired.

SZ and AT weren't fired. They didn't want to work for MT. No one does except people he brings from Europe. Roche have always been profit driven. That problem was even worse under HVP. The Swiss/Germans haven't learn that old commodity business can not have same profit as a pharma.

SS and AT are gone. they

SS and AT are gone. they were fired over the weekend. MT is shaking things up.

Please read between the lines

Please read between the lines on what is going on strategically within Roche Diagnostics, Indy site, and Roche Corporate:

Best Case Scenario:

*eliminate all supply chain operations for CD, including quality. Leave receiving, shipping and distribution.
* eliminate marketing and business development redundancies with Global functions. Shut these functions down in the US, lead from the US.
* There is no need for a US CD General Manager given these business simplification strategies, only a VP of sales/service/ distribtuion will suffice. AT's job had "vaporized" with these changes already approved by Basel.

Worst Case Scenario:
* Roche is very concerned about dilution of Pharma earnings with low profit margins on CD business, US and globally. This is not a growth market, and Roche CD's ability to compete is a No.3 position at best.
* Consolidating business, elimination of duplicate functions, improve margin for higher sales price to Novartis, or other possible suitors.

The first scenario has already been decided, and you are seeing the tip of the iceburg for the second scenario.

National sales meeting should

National sales meeting should be interesting considering that no one is left who can actually put one together.

Let's start a MT body

Let's start a MT body count...

AT-Senior VP in CD: The Best leader in the company, should have been the CEO instead of MT or TO. Great visionary, great experience, great boss, worked well with the Fatherland, could get others to walk through glass for him.

SZ-VP of Sales in CD: Was responsible for the first ever formation of an actual culture within Roche (Roche never had a culture before). Good leader, knew how to get things done and how to inspire others. Well respected by customers and co-workers.

JM- VP of Marketing in CD: Absolutely transformed a very stagnant marketing organization into a productive unit that actually would help sales achieve goals. Partnered well with SZ and AT to turn around sliding market share and grow business.

Most of Marketing Communications: Almost an entire department that was devoted to supporting sales, advertising, compliance, regulatory interface, customer relations, etc... Dozens of talented and devoted people who helped to keep the lights on were gone in an instant.

Supply Chain: Over 200 people lost their jobs back to the Fatherland.

Feel free to add on as I am sure there are many more.

The loss of AT and SZ should

The loss of AT and SZ should be embarassing to MT. AT is one of the best I have ever been associated with and both him and SZ (also top notch) will do well no matter where they end up. I myself saw the writing on the wall a few months back and left. I really liked working for Roche and it was hard to leave, but after this it really does seem I made the right decision to get out while it was on my own terms. God bless the pour souls who are left working for this guy.

The leadership loss of AT and

The leadership loss of AT and SZ is huge! Men of great ethics, standards, character and leadership. That is why they are gone-because MT is building an organization completely devoid of ethics, standards, character and leadership. Can not imagine what a mess the CD national sales meeting will be. I guess Mr. Wonderful MT can do it all! Yikes!

The best Roche Diagnostics

The best Roche Diagnostics people will attempt to drive change, but the Swiss do not want to hear it. They have all the answers.

If you are a change agent in Indy, you will either be ushered out, or you will leave from frustration. Either way, the best folks are leaving the organization.

Truth is, as a distribution hub only, Roche Basel does not need leaders or thinkers (in their opinion) in Indy.

Agreed, all three were great

Agreed, all three were great guys who really knew how to motivate and the culture was fantastic. JM is already missed and AT and SZ will be missed a great deal. It is a shame. They knew their stuff...

Two senior CD leaders are

Two senior CD leaders are out: AT and SZ. What a shame. They were building such a great culture. They also lost the marketing head, JM, while ago. Clean sweep. They will never catch Siemens or Beckman in the US now. What a shame.

I don't think this makes a

I don't think this makes a lot of sense (Indy w new Diabetes project), for the following reasons:
* Indy messed up their last big diabetes project- Aviva.
* Indy diabetes care quality problems- again Aviva.
* Basel direction to scale back Indy to distribution hub only.
* Basel lack of faith and bad experience with Indy leaders.

Let's see what develops?

I learned this morning that

I learned this morning that Roche has approved an Aviva replacement or "next" project with Indy leading the development. Was really shocked to hear that. How much more complicated can you make a blood glucose system? The space gained by eliminating Centralized Diagnostic manufacturing will likely go towards the project.

The RDC and RDO "split" in

The RDC and RDO "split" in 2006 was the brain child of SS. The rationale was:
* neither KK or TO had the bandwith nor skills to manage the entire Indy campus.
* the supply chain piece (RDO) needed to be micro managed by Basel because of all the quality, leadership and product issues. This structure eliminated one reporting level.

this structure (RDC/RDO) has failed miserably for the reasons noted elsewhere in this rumor. The question is, does Basel (SS or JS)have the will to admit the mistake and restructure it back?

Rank and file would appreciate seeing a consolidation and reduction of VP's, instead of elimination of the folks who do the work!

MM is calling the shots on

MM is calling the shots on who KK lays-off within RDO. If MM does not like you, she is a real pro in pulling KK's ear on why you do not add value and why you should be on the next lay-off list. This process has resulted in an organization of folks who are MM (in particular) and KK "clones", and why supply chain performance continues to deteriorate. Whatever happened to the culture of constructive conflict, folks listening to new ideas, and decisions based on business value?

MT is destroying Indianapolis

MT is destroying Indianapolis becuase Dr. JS has been convinced that the Americans were mismanaging the business. MT arrived with carte blanche to make whatever changes he felt appropriate. MT thought the backoffice was bloated and that the frontoffice wasn't focused on placements. Interestingly, MT & JS would snicker in German when TO was leading the US and would present at DEC. SS is either too distracted by learning pharma to know what is happening in US or is showing his true colors. Those that know SS would like to believe he is too distracted. SS, time to act now. Dr JS and his boys are creating a 10 year problem for you.

Excellent summary of the

Excellent summary of the events that led to the existing mediocrity, or should I say incompetence. I was not aware of KK and the MM living arrangement either. Both of them used to have a conscious and some integrity. Being with the company for over 25 years, I have witnessed it all from Bio Dynamics to Boehringer Mannheim to Roche Diagnostics, and then out the door.

To whomever posted the

To whomever posted the explanation of the connection between MM and KK - thanks! It has never made sense why she is where she is. Also, Ned C didn't leave, he was pushed out.

The root causes of the downwards spiral issue are many. For many years, Indy was run by Sales and Marketing types that really did not understand or care about the operations / back office stuff. It really isn't sexy. There were some good operation heads that kept the products going, etc. It didn't hurt that sales were increasing very nicely.

Then HVP came along. Remember him? He essentially wanted Diagnostics to be as profitable as Pharma. That started the downward spiral. Cuts were made, money was shifted around to make numbers. Quality and sustainability be dammned.

Then the disastrous Aviva came along. A "me-too" product that is internally is a technological marvel, but to the user is a completely unremarkable piece of ... How do you spell maltose intolerance????

Then the warning letter came along. MM got the hell out to Millipore before he was fired (that was smart). Soon thereafter, essentially the entire senior leadership left or was forced to leave. There were dozens if not a hundred consultants running around the company. I forget how many millions of dollars were blown on that fiasco. Then to the surprise of many, HVP appointed TO CEO & President of Indy. She was essentially responsible for the warning letter and her reward was to be made CEO and President of Indy!!! TO is a nice lady, but she was a ho-hum leader. Unfortunately, a private issue then pretty much sealed her fate and she left.

Then the RDO / RDC split came along. I really believe that whoever came up with the idea based it on the "divide and conquer" approach. What a crock of sh_t the split has been. People can't really figure out what the split really means.

Now you have the MT reign of terror and the KK reign of incompetence. MT couldn't care less about Indy. He is just waiting until JS retires so he can get that spot. KK could care less about Indy as well, all he cares is about himself and his next promotion. Where's the vision, what's the strategy of either of these guys? If you think about it, they are both about the same. It's all about them.

Where does this go? Indy will become an affiliate - no more, no less. The market is too important to give it up, but Basel will not invest much more in Indy.

If you work there, make sure your resume is current. You will need it soon.

The insane thing about Roche

The insane thing about Roche is that they have eliminated any high margin product lines to the point they cannot turn a profit in North America. This "downward spiral" is an accurate way to describe Roche here. Their sustainability in the US market is fast approaching a point of no return.

Order fullfillment will not

Order fullfillment will not have a problem in 2009 keeping up with demand for orders. If MT has not already sucked the life and motivation out of every revenue producing person within Roche, he will have by the time they get there quotas for 2009. Arrogance and ignorance are a deadly combination, MT scores a 10+ in both of these departments!

To be fair to MT, he was

To be fair to MT, he was handed some hopeless VPs from TO. Her last pick for VP in order fulfillment (SM) is an ignorant cow. MT recognized this and handed her off to WB. At least MT can recognize some one whose utterly (no pun intended) incompetent and make WB figure out what to do with her. Hint: keep your china packed in the boxes. I've heard all about this as I've been on the phone with them all last week, seems they don't know how to get orders out the door to customers because of their two computer systems. Make certain to split all that bonus money equally for that idea. Garbage in = garbage out.

More changes coming in Indy

More changes coming in Indy next week that will solidify how out of touch and incompetent MT is as a "leader" for the U.S. organization. The good news is that MT is making so many stupid moves he is ensuring his inevitable implosion. The bad news is that he will continue to kill off good people as long as his reign of terror is allowed to continue. SS WAKE UP-fire MT now!

You know the saying, "Roche

You know the saying, "Roche is a bank with a chemistry set". Roche built the Pharma business on acquisitions (incl Genenetech), not organic growth. The acquisition strategy for Diagnostics has been an utter failure (Disetronic, Ventana, etc.), and leveragable assets they acquired after the Boehringer Mannheim acquistion (like Diabetes Care) have been squandered.

The issues all surround bad leadership selections and decisions from the top in Basel. Recommendations:
* sell out to a company that knows how to manage diagnostics and how to manage a US subsidiary.
* change the mindset that new people (high potentials)have all the answers, when in most cases they don't understand the business.
* SS should go, the Roche board members should see that his failures in diagnostics will be multiplied many times over as he takes more control over Pharma.

At least the property in

At least the property in Indianapolis has value, not so much now but at least sometime in the future. Roche Switzerland probably deeply regrets buying Boehringer Mannheim in retrospect. As the old joke goes the only thing that comes out of Indy R&D are the goof offs leaving at 5 every afternoon. Project management there is an absolute joke. So much for "Best in the Business". I still have one of those sweatshirts.

CoFi was a lame duck from the

CoFi was a lame duck from the start. The execs who threw their weight behind it had no clue about all of the QC and supply chain problems, let alone how tedious the paper trail can be to launch one single product, or the numbers they wanted. Sales talks around the Indy campus, marketing follows, and the rest is trivial until things go wrong. Cofi was just for one division. The Molecular group has virtually nothing, DC can't stop bleeding (remember the big Aviva tent party launch with the steaks and fireworks boys...maybe a little too early of a celebration?). Sad for the workers, pathetic "leadership".

The Swiss strategy to close

The Swiss strategy to close down supply chain operations in Indy and move to a distribution only company in the US has created a very negative climate for all employees in the US Diagnostics division. Low morale, elimination of customer facing departments, management turn-over and either the best folks have been asked to leave, or have left themselves for greener pastures. Short term thinking and actions by current management will only accelerate what was once A Great Place to Work.

For a while it looked like

For a while it looked like Roche was poised with a solid longish term strategy. They were making solid investments for growth and had the vision to look past the short term numbers. Then JS and MT came along...to hell with long term and let the short sighted short cuts begin.

For a while it looked like

For a while it looked like Roche was poised with a solid longish term strategy called COFi. They were making solid investments for growth and had the vision to look past the short term numbers. Then JS and MT came along...to hell with COFI and let the short sighted short cuts begin.

Don't rely on SS. The US

Don't rely on SS. The US diagnostics division's death spiral has only accelerated under his leadership. Roche diagnostics, run by Finance folks and lawyers, is too willing to take short cuts to hit the numbers. This is a lesson many hoped they had learned in recent years with the FDA warning letter in 2004/2005, but to learn this lesson, the leadership (SS and MT), the FDA will need to strike again with a much thicker "stick".

JS is a "hit the numbers" manager, and his only goal is to hit the sales targets in US before he retires. He does not understand CGMP, FDA, and how NOT investing in Quality Systems ultimately leads to paying a much higer price and failure.

M.T. is an arrogant,

M.T. is an arrogant, unethical "leader" who chooses to ignore the advice of good people with the attitude that they are "stupid Americans." He will do ANYTHING to achieve his objective as is evidenced by his recent directive to cook the books by pumping up revenue in non-compliant manner. While he claims to want to be compliant, if the FDA just scratches the surface, they will find that his changes to the organizational structure have resulted in an non-compliant, out of control medical device company that is poised to violate GPP. At this point, the only way to drive change is to levy a huge fine against RDC, then maybe SS would get the message that JS and MT are utterly unfit to lead.

They were never #1 in the Us.

They were never #1 in the Us. At least not in the past ten years.

the KK and MM familiarity was

the KK and MM familiarity was entrenched when MM gave KK a place to live after KK's divorce 7 or so years ago

The KK and MM familiarity was

The KK and MM familiarity was firmly entrenched at trips to the Ponce facility along with RY control. Roche split Indy into two corporations which required separate leadership. Not only did this confuse the hell out of the FDA but management down to the supervisor level had no idea how to function as an entire entity. Then pressure came to fire long term, established career veterans who's only fault was making too much money. Then came the absolute failure to invent the latest and greatest blood glucose test system and BL retiring. Scandals with Diabetes Care in the Northeast and extreme quality failures of the Aviva system soured the major players from recommending Roche systems. Roche is literally spiraling down the toilet drain. As interesting a business case as this has become, it is definitely in the category of being completely unrecoverable. Too bad for the inventors of the original blood glucose test system.

The CMO wasn't that involved

The CMO wasn't that involved with the company. He spent most of his time in California and was not a leader. He wandered off with or without a concern. It doesn't mean the company is doomed, just means he didn't really care.

Honestly people, realize that

Honestly people, realize that Indy has been incompetant since the BMC days, entrenched with people who lack technical know-how but are good at administrating bureaucracy. Sorry, but although it is "so central" and a "good place to raise a family", the rest of the industry has moved along at light speed. You have been left behind. Remember the old campaign "get on board or get out of the way"- Cardiac-T

Ned C was working on removing

Ned C was working on removing Mary M due to her incompetence, but then he left Roche. After his departure, the vision and culture that Martin M died, and thus the current situation. Kent K was also held in check as he has minimal leadership skills - only technical.

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