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2 21st Century Leadership Page 1 Week 8 Assignment 2 21st Century Leadership BUS 302 Management Concepts Strayer University Instructor: Written By March 1, 2015 2 21st Century Leadership Page 2 PROFILE OF MR.ARTHUR D. LEVINSON Mr Levinson is current CEO of Calico (Google Venture) since September 2013 and chairman of Apple Inc since 2011 to the present. In addition to serving on the board Apple Inc. since 2000 Levinson is currently on the board of directors of the Broad Institute. He has served previously on the board of directors at F. Hoffmann-La Roche (2010-2014), NGM Biopharmaceuticals (2009-2014) and Amyris Biotechnologies (2009-20014). He was the CEO of Greentech from 1995 to 2009 and Director of Google from 2004 to 2009. He has also authored and coauthored over 80 Scientific articles and named inventor on 11 United States patents. () Mr. Levinson is educated with Graduating from University of Washington in Seattle in 1972 to obtain his bachelor’s degree. He obtained his PhD in Biochemistry from Princeton in 1977 which he subsequently moved for a postdoctoral position in the Department of Microbiology at the University of California San Francisco (UCSF). (Levine,2004) Mr. Levinson has received many awards over the years including National Medal of Technology and Innovation from President Obama at the White house in 2014. In 2012 he received the CSHL Double Helix Medal Honoree and in 2010 received the Biotechnology Heritage Award from Biotechnology Industry Organization and Chemical Heritage Foundation. 2 21st Century Leadership Page 3 Career at Greentech Mr. Levinson’s early career started with the postdoctoral position at UCSF in 1977 where he worked with Michael Bishop and Harold Varmis in the Department of Microbiology. He was quickly spotted there by Herb Boyer of Genentech and recruited Levinson to join his team as a research scientist in 1980. He garnered a lot of attention and moved through the ranks and becoming the VP of research in 1989. He quickly moved up to the VP of research in 1990 and parlayed that to Sr. VP of Research in 1992 and Sr. VP of Research and Development in 1993. In 1995 Genentech continued to acknowledge his achievements and leadership ability and named him the Chief Executive Officer and President in 1995. In 1999 he was named as the Director of the Board as well. In the same year the pharmaceutical company had made large strides towards the development of a medication for breast cancer and he was awarded the Corporate Leadership Award from the National Brest Cancer Coalition and the Corporate Leadership in Science Award from Irvington Institute. In 2004 and 2005 he was named the Business Week “Best Managers of the Year” and Institutional Investors named him “Americas Best CEO” in the biotech division for four consecutive years from 2004 to 2007. 2 21st Century Leadership Page 4 As CEO of Greentech his commitment to basic research and his motivation to create a company that was also able to turn a profit made Genentech a model company for the biotechnology industry and a recognized leader in selected pharmaceutical markets. Levinson relied on his scientific instincts as he manipulated Genentech, a relatively small company, to a leadership position among the highly competitive pharmaceutical giants. The leadership instincts possessed by Levinson: He used to follow a Transformational leadership style. He was a person with great enthusiasm and energy which he wanted to inject in his organization.(Weintraub, 2003) He had a vision and a passion to achieve those targets. He started with developing a vision, a view of the future that will excite and convert potential followers. He wanted to shed the company’s status of a scrappy start up to become a consistently profitable powerhouse. if Levinson pulls off this transition , it will be the strongest signal yet that the industry that Genentech helped create more than 25 years ago is finally delivering on its promise-to generate a steady stream of drugs to conquer one’s untreatable illness. His next step was to sell the vision by creating followers which happened by his ability to create trust and personal integrity. Because of his experience as a research scientist and his infectious enthusiasm was his biggest asset when he became CEO as when he made his plea to his employees to move forward to become an industry leader. He had a clear vision on how he wanted to move the company forward by flooding the the industry with his products by a stream of drugs to conquer one’s untreatable diseases. He knew there would be failures, which there were such as AVASTIN and RAPTIVA drugs, but knew he need to keep the spirits and belief of his followers and employees high and believing in 2 21st Century Leadership Page 5 him and his vision. He would always lead the charge by remaining upfront and central during the action. He showed his attitude and actions how everyone else should behave. It is Levinson’s unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts would fail. Arthur Levinson led Genentech from a biotech baby to an industry leader, all the while dealing with serious challenges from competitors. He had a clear vision in his mind and a vivid picture of where to go, as well as a firm grasp on what success looks like and how and how to achieve it. When he took over Genentech as CEO the company was under a cloud and under investigation from the use of Human Growth Hormones without correct approvals for the methods they were using it, as well as the previous CEO making bad choices. He was able to get through the investigation and paid the fines imposed on the company and rallied his employees to meet his goal of making them a power player and industry leader. He was able to restore the company’s reputation from these allegations and initial failures. In March of 2003 the drug Avastin failed final stages of testing for treatment of breast cancer and lead to a huge loss on the stock market and investors demanding answers. He was able to take the data from the final testing and his company was able to find that the drug Avastin significantly extended the life of patients with colon cancer.(Levine, 2004) It was filed for approval in September 2003 and now has become Genentech’s top drug and is considered a billion dollar a year drug. Greentech went on to get Raptivia and Psoriasis unanimously One 2 21st Century Leadership Page 6 change he had made was that he went and started ranking the drugs they were working on scientific feasibility, medical need, market potential, market protection and manufacturing economy. (Bloomberg,2004) 2 21st Century Leadership Page 7 Levinson was able to balance his roles as a CEO and as a Scientist as he had a specific background that drove his inspiration and better equipped him to make not only better decisions but enabled him to motivate his employees. He has made Genentech a powerhouse in the biotech industry worth a reported $92 billion with several long term medications that help people live longer and better lives with uncureable diseases. He has expanded Greentech into other markets with treatments for drugs that treat a variety of medical conditions, such as heart attack, allergic asthma, psoriasis, stroke, growth hormone deficiency and cystic fibrosis. These products represent a pipeline that was created, in part, under Levinson when he took over as research chief for the South San Francisco-based company in1990. Levinson stepped down as the CEO in 2009 but remained the Director until 2014. TRANSFORMATIONAL LEADERSHIP Transformational leaders are leaders with a great enthusiasm and those who want to transform the organization there is also a tacit promise to followers that they also will be transformed in some way, perhaps to be more like this amazing leader. In some respects, then, the followers are the product of the transformation often equated with those who can adapt quickly to change. Levinson clearly showed his flexibility and success in adapting to changing organizational cultures and bringing about a change in the company by taking it from a scratch to an industry bringing his people with him. 2 21st Century Leadership Page 8 Levinson possesses good leader member relations and invites employees to give feedback and contribute ideas. Genentech’s task structure was delegative as Levinson gave his employees the freedom and initiative to be creative. There was no fixed procedure how things were to be done. There was no fixed procedure how things were to be done. His organization operates on a flat, non hierarchical structure, made out of clusters of companies that operate independently and flexibility to run without much interference . Levinson has cultivated a company culture which is controversial and enjoys a good rapport with his subordinates while Solomon enjoys a clear chain of command hierarchy in which feedback is channeled. Calico In September 2013 Google CEO announced It’s new health venture called Calico and that it would be run by Apple Director and former Genentech CEO Arthur Levinson. It is being funded by Googles CEO Larry Page, a rare nerve disease that affects his vocal chords as well as a thyroid inflammatory condition called Hashimoto's thyroiditis. (Oteng, 2013) This is meant to be a long term investment and tackle the Challenge of aging and associated diseases. Calico is going to depend on the expertise of Levinson from his time with Genentech to lead this new company into the future and they believe they will be able to produce results in a timely manner.
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