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“Morale was very low. Over the last two years, with the cultural changes and the advances in the pipeline, the number one thing people wanted in the surveys was a stock purchase plan. It’s a tremendous confirmation that we have accomplished what we wanted to do internally.” As far as his own role is concerned, Buchalter believes in leading by example. “It’s remarkable how people observe and watch,” he says. “I get involved in meetings at all levels, I’m visible, I visit my manufacturing plants, and I talk to all levels of employees as often as I can.” Every quarter, after the company’s earnings have been publicly announced, the management team explains the figures to everyone in the company. “People feel like you are telling them what’s happening. Leadership is about demonstrating best practice, and continuous improvement is one of the critical things we talk about all the time.” October 07 Businessexcellence 7 leave. But, he points out, “health is a great backdrop to get people excited and although I never suggested to anybody about working the weekend we now have people coming in on Saturdays and Sundays to finish experiments, pushing things forward.” So, how was this culture change achieved? Perhaps through a formal continuous improvement program, such as one might find in manufacturing? “No,” says Buchalter. “We did it by first establishing operating principles, which we began to disseminate through the organization. We posted them in meeting rooms and hallways and people used them in internal correspondence. I wanted to make sure that the operating principles weren’t something you heard just once. My senior executive team’s objectives and end of year performance were based on their adherence to and adoption of those principles and I evaluated my management team on their ability to execute the principles. That raises the sense of awareness in their importance. When you own them and live them people sense that. It then becomes part of the fabric of the company.” The operating principles were summarized as five Ps—people, pride, passion, performance, and promises. “It’s all about people,” says Buchalter. “We have pride in what we do, and passion because we’re dealing with lifesaving drugs; performance is important and we have to keep our promises, so if we say we’re going to do something we actually deliver on it. People have really gotten around that and it is part of the culture now.” It’s easy to talk about culture, but it’s intangible, and difficult to measure. Enzon conducts employee evaluations and surveys twice a year, however, to see how people are feeling, and Buchalter knows from those that he has a committed workforce. “When I came into the company two and a half years ago people were disenfranchised,” he says. Interview “It is unusual for a company the size of Enzon to have marketed products, let alone four marketed products. It is also unusual that we have full commercial accountability for them”

8 Businessexcellence October 07 This series of articles has already addressed the first two steps of the S&OP process (see figure 1), the product development and the demand review meetings. The output of the product development meeting is the future direction of the product portfolio, and the output of the demand review meeting is a timely aggregate unconstrained demand plan for both existing and new products which then becomes the basis for the integrated set of planning numbers used throughout the sales and operations planning process. There are four constituent groups that participate in the supply review stage. The first is manufacturing Integrated business management is a means of managing all of the business resources via the sales and operations planning (S&OP) process. In part four of a six part series, John Schorr describes the supply review process which determines the supply capability to meet the demand Thesupplyreview and production, which answers the question, “does the company have enough capacity to produce the required supply plan?” Next is the purchasing activity, which determines, “do the company’s suppliers have enough capacity to support the plan?” If the company plans to expand at a 30 percent rate,