After a long and painful wait, the Merck board of directors decided to fire Raymond Gilmartin. I had then commented that the Pfizer board should do the same and replace Hank McKinnell, if for no other reason than for destroying shareholder value by imitating Gilmartin. (Related article: Gilmartin gone; time for McKinnell to go)
It seems, however, that Gilmartin is a McKinnell's hero since he continues to imitate his strategy even after it has been proven that it doesn't work. Now, almost as if he was repeating Gilmartin's words, McKinnell now wants to bring Bextra back on the market. If you recall, Merck wants to bring Vioxx back after it recalled due to as many 140,000 personal injury cases in the United States alone.
What does it mean for you?
It seems, however, that Gilmartin is a McKinnell's hero since he continues to imitate his strategy even after it has been proven that it doesn't work. Now, almost as if he was repeating Gilmartin's words, McKinnell now wants to bring Bextra back on the market. If you recall, Merck wants to bring Vioxx back after it recalled due to as many 140,000 personal injury cases in the United States alone.
What does it mean for you?
- It is OK to admit mistakes and change your strategy. In a recent study, it was found that companies that did not follow their strategy from their business plans were more successful than the ones that stuck rigidly to it. Strategy is never written in stone. You should be able to change it in real time. (Related article: Change strategy in real time like eBay)
- Learn from the mistakes of others. Only fools repeat the mistakes that others have committed. The way to find out the mistakes of others is to do research prior to every important decision. Case studies are a great way to learn from other's mistakes.
- Keep lawyers out of the strategy sessions. In case of both Merck and Pfizer, considering the magnitude of litigation the two firms face, lawyers appear to be in control. Legal advice is necessary, but lawyers should limit themselves to legal strategy, not overall corporate strategy.
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Lessons from Vioxx, Celebrex, and Bextra controversy
Lessons for business leaders from recall of Vioxx
Strategic lessons from Vioxx recall
Lessons from Pfizer's mistakes