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EF: Last year you mentioned the importance for big organizations to be agile and adapt to the market in other to stay relevant and ahead of the curve as exposed by the book Goliath’s Revenge. What is “the book” of 2023?
PM: This year, I am writing my own book, which gathers my experience in doing business on the continent. Some of the content is generic, while other parts focus on healthcare specifically. Having traveled to 44 countries on the continent, there is much to share.
What I am seeing in 2023 is that organizations are becoming more strategic in how they plan for the future. In terms of digitalization, much progress has been made, and now we are moving towards a hybrid approach. Many businesses have embraced this, and people are also preferring this model.
We are also seeing how words in 2022 have translated into actions in 2023. Technologies are now being implemented to reach more patients and increase access. Recently at the GIBS Business School round table on "The Tech in Med-Tech," we showcased how we are using technology to better interact with stakeholders and provide them with better value.
Technology implementation is of utmost importance. It needs to be inclusive to maximize access. People in rural areas, where technology and wealth are scarce, should not be left out. As Steward Brand said, "Once a new technology rolls over you, if you are not part of the Steamroller, you are part of the road." You need to embrace technology, adapt it, and implement it correctly. The importance of inclusion lies in ensuring that everyone has access to successful implementation. When we talk about emerging markets like Africa, there are many rural areas that can be left behind.
EF: Could you elaborate on the importance of collaborations and how you see these happening in Africa?
PM: Success cannot be achieved alone; it requires collaboration and teamwork. Sometimes, great collaborations can arise between organizations in different fields. We partnered with a nutrition company to learn about their collaboration with the healthcare sector and explored how we could apply this experience to our business.
During discussions with a telecommunications company, we discovered that they were providing value-added solutions to the market based on existing needs. We worked with them to find a solution for diabetic patients, especially those without medical insurance. Many ideas were generated from these conversations, and we are eager to foster meaningful collaborations that increase access to healthcare.
EF: Lately, there has been a lot of activity in terms of IPOs and Spin-offs in the Healthcare sector. What trends do you see, and why is this happening?
PM: Organizations carefully consider their decisions before making changes to their operations. This is a well-calculated step that is necessary as companies must constantly revise their strategies. Sometimes, a company may have a portfolio of products, services, and solutions that are not aligned with its changing strategy.
Specialization in a field is crucial for innovation, so investments in R&D must be focused. It makes sense for companies to regularly review their product portfolio and assess the relevance of each product. If a product is no longer relevant, a company can acquire an add-on product. Medtronic, for example, continuously adds small tagging products to complement its existing products. If a company has conducted thorough research, it will not simply replace a product without considering the relevance of the others. Doing so would not make sense and would not be scalable. Companies are constantly evaluating their strategies to ensure they remain relevant and meet their customers’ needs. The COVID pandemic has prompted many businesses to reevaluate their identities and make necessary changes to become more relevant and appealing to customers. M&A activities, Medicine acquisition, and spinoff targets are all ways companies are answering these questions and striving to become #1 in their respective areas. During this journey, companies may need to let go of certain products to become more nimble and relevant.
EF: What value does it bring to Medtronic to have its executives represent the medical technology and associations in the countries they operate in?
PM: Medtronic is the #1 med-tech company worldwide, even in the African and South African markets. To maintain this position, we must set an example and lead in many other areas. When SAMED elected me as president of the summit, I accepted the role with certain conditions: that we embrace the idea of elevating med-tech to the next level, and agree to elevate the partnership with our key stakeholders.
Recently, I had a keynote event that we organized with Dr. Boitumelo Semete-Makokotlela of SAHPRA where we discussed pressing topics related to regulation. We addressed bringing in a new set of regulations, looking at other key areas like the role of reusable devices, and medical devices. They're looking for input, so we're going to collaborate with a few other places.
A notable aspect of our focus was the regulatory framework surrounding medical devices, a process that closely resembles the registration procedures for pharmaceutical products. The key subject under discussion revolved around the necessity for a logical and justifiable registration fee. As entities engaged in mechanical and medical technology, our responsibility extends beyond mere growth; we are tasked with leading the way in driving industry transformation. In South Africa, transformation is a big issue, which is something that I manage personally as well. But we must walk the talk; they must see me transforming Medtronic before we transform the industry. Transformation means leading in terms of diversity, inclusion, and equity. Over 50% of our leaders in Medtronic Southern Africa are women, so the med-tech sector can learn from that as we drive it forward from there. We also implement a graduate youth employment scheme to attract the best and brightest. These are some of the priorities that I'm focusing on driving forward in the industry.
It is important to work closely with the government to find solutions to existing challenges for medical technology companies to ensure the delivery of products and services. As a leader of the sector, I facilitated with the government and finance department to find a financial solution to ensure healthcare business sustainability. By solving problems, collaborating, and elevating the med-tech conversations that need to happen, I bring more value to our members.
Given our status as an American corporation, I also hold a position on the governing body of the American Chamber of Commerce. One of our paramount concerns pertains to the issue of power outages, which requires governmental resolution. These disruptions in the power supply significantly hinder business operations and impose substantial costs on conducting commerce in this region
EF: How do you assess the level of adoption of new technologies within South Africa?
PM: Adopting new technologies requires two key factors: awareness and understanding. The outcome of these factors is acceptance, and affordability is also important. For instance, implementing technologies like robotic surgery in a hospital requires a lot of understanding and education. It's essential that we dedicate ourselves to this task.
Currently, we have a pipeline of customers eagerly waiting for our technology. This is an exciting moment for us. We are fully committed to delving into the world of robotics and believe that it will continue to evolve, leading to the growth of our company.
EF: You are going to celebrate your fifth year at Medtronic. Congratulations, what your speech to your employees is going to be like? What are the achievements that you are most proud of during those 5 years?
PM: Looking back at the last five years, there have been significant milestones despite challenges with transformation. The company has become a leader in compliance across Eastern Europe, the Middle East, Africa, and Russia. The company has also improved its connection with people, culture, and peace.
One unique innovation is the CEO breakfast, which shares case studies from other companies to inspire employees. The company has reorganized its business to get closer to the customer by having people on the ground in more cities. The business has been reset into four hubs, and there is now a medical clinic headquarters in Cape Town to address customer issues locally.
Currently, even with digitalization, we have our own people on the ground in small cities that were not there before. We are waking up with the customers, meeting them in supermarkets in around 10 cities in South Africa, which is six more cities than before. This expansion has given our employees opportunities to progress, lead, and become more autonomous.
We also reset the business into four hubs, with Cape Town as the headquarters for the Western Cape. This beautiful part of the country is now home to a medical clinic that has a big international hospital business. Previously, the process involved escalating problems all over the world, but now customers can easily reach out to the general manager living in their area with her own leadership team to resolve any problem. This approach has not only improved customer satisfaction but also allowed for greater autonomy and growth opportunities for employees.
