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Boundary Spanning Leadership
                                 and
               Network Development:
            Driving Collaboration and Innovation

       Kristin Cullen              Birgit Schoeberl
Center for Creative Leadership    Merrimack Pharmaceuticals
Objectives




©2013 Center for Creative Leadership. All Rights Reserved.
Leadership Redefined




©2013 Center for Creative Leadership. All Rights Reserved.
Boundary spanning leadership
Why are …
     NetworksNetworks critical to BSL?
 Formal Structure                                                 Chief Science
                                                                     Officer



Leader (1)                             Leader (2)                                                Leader (3)                                       Leader (4)



         POD A (1)   POD B (1)         POD C (1)        POD D   POD E (1)         POD F (1)      POD G (1)      POD H (1)      POD I (1)                   POD J (1)



         POD A (2)           POD B (2)          POD C (2)                POD E (2)        POD F (2)       POD G(2)      POD H (2)          POD I (2)       POD J (2)



         POD A (3)           POD B (3)          POD C (3)                POD E (3)        POD F (3)       POD G(3)      POD H (3)          POD I (3)       POD J (3)



         POD A (4)           POD B (4)          POD C (4)                POD E (4)        POD F (4)                     POD H (4)



         POD A (5)               POD B(5)       POD C (5)                                                               POD H (5)




     Org charts fail to provide insights regarding:
         • Informal Leaders
         • Internal Group Connections
         • Between Group Connections
         • Key Boundary Spanners

                                                                                                          Informal Communication Network
Developing Network Perspective

 The ability to look beyond formal, designated
 relationships and see the connections between
 people in and beyond your organization.

 Network perspective
 reveals boundaries within the
 network and opportunities to
 strategically span them.



©2013 Center for Creative Leadership. All Rights Reserved.
Systems                   Molecular
Biology                  Diagnostics



            Integrated
             Solutions

                                Targeted
                                Therapies
 Bench to
 Bedside
Merrimack Stat Sheet

            •    MIT & Harvard c. 2000
            •    Systems Engineering
            •    Cancer Regimens
            •    10+ Large Molecule Programs
            •    Based in Cambridge, MA
            •    ~250 employees
            •    Institutional investor base
            •    NASDAQ: MACK

                          BOD                                     SAB
•   Gary Crocker, Chair            •   Doug Lauffenburger, MIT
•   James Dresser, r. BCG          •   James Marks, UCSF
•   Gordon Fehr, r. Pfizer         •   John Park, UCSF
•   John Mendelsohn, MD Anderson   •   Barrett Rollins, Dana Farber
•   Sarah Nash, r. JPM/Chase       •   Peter Sorger, HMS
•   Michael Porter, HBS            •   Louis Weiner, Georgetown
•   James Quigley, r. Deloitte     •   Dane Wittrup, MIT
•   Anthony Sinskey, MIT           •   Mike Yaffe, MIT
Current Drug Development Paradigm
                   is not working

Overall R&D efficiency is decreasing       % of total cost of single drug
                                                 success by phase




                                       Most of $ are spent from discovery to IND


Can we do Pre-Clinical Drug Discovery differently ?

                                                              Source: PHRMA, FDA, Economist, BCG
Moving from trial and error to a
 systems understanding of cancer to
       design novel therapies

Trial & Error          Engineering




….necessitates interdisciplinary teams
Strategic Pillars for doing Discovery
Differently



               Multi-
Systems                    Integrated
            disciplinary
Biology                     Solutions
              Teams
Mission of the Discovery Organization

 Efficiently progress ideas into a steady pipeline
 of novel therapeutics in Oncology
      ■ Identify critical disease networks
      ■ In silico test new therapeutic approaches
      ■ Rapidly prototype new therapeutic concepts

  Critical Network                      Network Modeling    Prototype
  Identification




                                               Time (min)




©Merrimack Pharmaceuticals, Inc. 2012
Our Approach

Kinetic Data Sets



                                Biology




                    Computing

                                                        Systems Analytics
                                          Engineering
Organized for Innovation

                                                                                  •   Team Based Organization
                             MM-121
                                                                                      –   PODS “Bell Labs” Discovery group
                       Medical           Modeling
                                                                                      –   Projects: fully integrated, multi-disciplinary teams
                     Engineering
                                            Biology                                   –   Expertise based Peer Groups
                                 Manufacturing
                                                                                      –   Support: cGMP manufacturing & Administration
     MM-111                                                    MM-302             •   Networked organization
            Modeling                                  Manufacturing

Manufacturing                     Leadership
                                                                                      –   ~60 academic collaborations
                                    Team                               Modeling
                   Medical
                                                             Medical                  –   ~400 clinical sites
 Engineering
                                                 Engineering                          –   Phase 1 collaborator network
         Biology                                               Biology                –   SAB, CAB, & spinouts
                             POD 1
                                   PODS                                           •   Productivity
                                               POD 2
                                                                                      –   4 years: initiate discovery to IND
                                    POD 3                                             –   Discovery to IND: <$20M/biologic + Dx assays
                         POD 4

                                      POD 5                                       •   Culture that rewards learning, innovation,
                                                                                      teamwork
                                                                                      •   10+ year 94% retention
                                                                                                                                            14
               © 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.
PODs
Seeds for novel therapeutic ideas
•   Small interdisciplinary teams 1-6 FTEs
•   Seeded by an ‘entrepreneur’ who proposes an exciting idea
•   Live and die based on overall excitement
•   Resource poor – forced to collaborate
                                          POD I
                                                                               POD E
POD E
                       POD J
                  POD A

                                                                               POD B
                                                   POD G




              POD H       POD C
                                              POD D
                                                  ©2013 Center for Creative Leadership. All Rights
Have we really built a networked
   organization ?
                                            Zooming into the PODs

                                            ■ Understand if we ‘live’ the vision of
                                              a networked organization
                                            ■ Understand boundaries that might
                                              be inhibiting our success
                                            ■ Study the effect of time on the
                                              network
                                            ■ Identify areas for improvement



                                                                                 16
© 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.
The 5 boundaries of leadership

                               Vertical                               Demographic
                                across levels &                       across diverse
                                authority                             groups & differences



                               Horizontal                             Geographic
                                across functions                      across markets
                                & expertise                           & distance



                               Stakeholder                   Using a network analysis
                                across external                 we can check the
                                groups & interests
                                                             connectivity across these
                                                                   boundaries.
©2013 Center for Creative Leadership. All Rights Reserved.
Critical Boundaries for Merrimack



                                               Vertical
                                                Integration of Interns and Formal Leaders




©2013 Center for Creative Leadership. All Rights Reserved.
PODs
Seeds for novel therapeutic ideas
•   Small interdisciplinary teams 1-6 FTEs
•   Seeded by an ‘entrepreneur’ who proposes an exciting idea
•   Live and die based on overall excitement
•   Resource poor – forced to collaborate
                                          POD I
                                                                               POD E
POD E
                       POD J
                  POD A

                                                                               POD B
                                                   POD G




              POD H       POD C
                                              POD D
                                                  ©2013 Center for Creative Leadership. All Rights
Critical Boundaries for Merrimack
         Vertical Integration
Color indicates POD
  POD H
  POD A
  POD I
  POD C
  POD E
  POD B
  POD J
  POD E
  POD G
  POD D
Shape indicates level
Down Triangle = Senior Leader
Up Triangle = POD leader
Square = employee
Circle = intern
Size indicates In Degree Centrality
       ©2013 Center for Creative Leadership. All Rights Reserved.
Critical Boundaries for Merrimack



                                               Horizontal
                                                Collaboration between
                                                Cross-Functional Teams and Professions




©2013 Center for Creative Leadership. All Rights Reserved.
Horizontal Collaboration

                                           February                     June         Profession
                                                                                     Antibody Engineer
 Weekly Ties                   Total 606                          Total 628
                               Average 15.3                       Average 14.6       Cell Biologist
                               75% between PODs                   87% between PODs   Computational Modeler
                                                                                     In Vivo Scientist
 Daily Ties                    Total 147                          Total 154
                               Average 3.8                        Average 3.6        Liposomal Scientist
                               49% between PODs                   81% between PODs   Protein Biochemist

February                                                            June




     ©2013 Center for Creative Leadership. All Rights Reserved.
Critical Boundaries for Merrimack



                                               Geographic
                                                Floor design (and stairs) segregating
                                                communication




©2013 Center for Creative Leadership. All Rights Reserved.
Geographic Communication
                                                             4TH Floor
                                                             Mezzanine
                                                             2ND Floor




©2013 Center for Creative Leadership. All Rights Reserved.
Geographic Communication
   Critical Boundaries for Merrimack
                                                             4TH Floor
                                                             Mezzanine
                                                             2ND Floor




©2013 Center for Creative Leadership. All Rights Reserved.
bound a ry
1. A border that indicates bounds or limits                           2. A frontier where advances and new activity occurs




         ©2010 Center for Creative Leadership. All Rights Reserved.
       ©2013 Center for Creative Leadership. All Rights Reserved.
3 strategies for spanning boundaries




                Managing                                        Forging       Discovering
               Boundaries                                    Common Ground   New Frontiers



©2013 Center for Creative Leadership. All Rights Reserved.
Managing Boundaries
Taps into the power of differentiation – the need for
distinctiveness, divergence, and uniqueness across
group boundaries.
How areare Boundaries
    How Boundaries Strengthened at
    Strengthened at Merrimack
  Merrimack?

                       Managing Boundaries
Buffering




  Define
Boundaries
to achieve   …
Safety and
 Security
How areare Boundaries
      How Boundaries Strengthened at
      Strengthened at Merrimack
    Merrimack?

                         Managing Boundaries
  Reflecting




 Understand
 Boundaries
  to achieve    …
Awareness and
  Respect
Forging Common Ground
Taps into the power of integration – the need for unity,
convergence, and belonging.
How is Merrimack Integrating Across
      Boundaries?

                                                                          Forging Common Ground
 Connecting



                                                                I started a journal group for more
                                                                junior scientists. It’s a group of people
  Suspend                                                       that didn’t really interact. People have
 Boundaries                                                     become more interactive and friendly. I
  to achieve                                                    have a rule that we would be able to
                                                                talk about anything we wanted to.
    Mutual                                                      I’ve seen people that have been very
Confidence and                                                  quiet and kind of in the corner, come
     Trust                                                      out in this group and just blossom.


   ©2013 Center for Creative Leadership. All Rights Reserved.
How is Merrimack Integrating Across
      Boundaries?

                                                                     Forging Common Ground
  Mobilizing
                                           It feels more like a company instead of different
                                           floors. It just facilitates more interactions and more
                                           relationships. I think it’s a very good thing.

  Reframe
 Connecting
 Boundaries
  to achieve                                            4
Community and
 Accountability
                                                                              2
  Mobilizing

   ©2013 Center for Creative Leadership. All Rights Reserved.
Discovering New Frontiers
Taps into the power of integration and differentiation
simultaneously – the location where the most advanced
and innovative opportunities await.
How is Merrimack Fostering Innovation?

                                                                    Discovering New Frontiers
   Weaving


                                           We started something that’s called a swarm team.
                                                                      …
                                           Having that connection and the ability to explore
   Interlace
                                           whether or not it was a viable option together really
  Boundaries
                                           improved everyone’s understanding.
   to achieve
Interdependence
  and Collective
    Learning

    ©2013 Center for Creative Leadership. All Rights Reserved.
How is Merrimack Fostering Innovation?

                                                                                   Discovering New Frontiers
Transforming



                                                    Gene                         Protein              Network


  Cross-Cut
  Boundaries
  to achieve
                                                                 Network dynamics govern cell decisions
Reinvention and
  Alternative                                                         Discovery on Networks, Not Targets
    Futures


    ©2013 Center for Creative Leadership. All Rights Reserved.
Impact to date…




©2013 Center for Creative Leadership. All Rights Reserved.
Impact at Merrimack

 Re-conceptualizing leadership opened
 up opportunities for career development
Impact at Merrimack
     Impact at Merrimack

 • Showing that network awareness matters
        (The feedback) opened my eyes in a positive way. To see where I
        am, which network area and connections I have. It’s like from
        outside someone who looks at you and it gives me some good
        confirmation.


I could do probably far more in connecting to research
groups which I have nothing to do with might help me in
the long run.




  ©2012 Center for Creative Leadership. All Rights Reserved.
Impact at Merrimack
   Power of Combing ONA and BSL
   Impact at Merrimack

• Data need to breakdown physical barriers
  to collaboration.
                                                             The network analysis actually
                                                             allowed us to make the argument.




©2012 Center for Creative Leadership. All Rights Reserved.
Impact at Merrimack

• Checking the network shows commitment
  to maintaining a collaborative culture




©2012 Center for Creative Leadership. All Rights Reserved.
Questions?
  Please contact Kristin L. Cullen (cullenk@ccl.org; 336-286-4468).




We’d like to acknowledge the contributions of :
Craig Appaneal, Donna Chrobot-Mason, Alexandra Gerbasi, and Chuck Palus
©2012 Center for Creative Leadership. All Rights Reserved.

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TNR2013 Kristin Cullen & Birgit Schoeberl, Boundary-Spanning Leadership - How Leading Organizations Are Driving Collaboration & Innovation

  • 1. Boundary Spanning Leadership and Network Development: Driving Collaboration and Innovation Kristin Cullen Birgit Schoeberl Center for Creative Leadership Merrimack Pharmaceuticals
  • 2. Objectives ©2013 Center for Creative Leadership. All Rights Reserved.
  • 3. Leadership Redefined ©2013 Center for Creative Leadership. All Rights Reserved.
  • 5. Why are … NetworksNetworks critical to BSL? Formal Structure Chief Science Officer Leader (1) Leader (2) Leader (3) Leader (4) POD A (1) POD B (1) POD C (1) POD D POD E (1) POD F (1) POD G (1) POD H (1) POD I (1) POD J (1) POD A (2) POD B (2) POD C (2) POD E (2) POD F (2) POD G(2) POD H (2) POD I (2) POD J (2) POD A (3) POD B (3) POD C (3) POD E (3) POD F (3) POD G(3) POD H (3) POD I (3) POD J (3) POD A (4) POD B (4) POD C (4) POD E (4) POD F (4) POD H (4) POD A (5) POD B(5) POD C (5) POD H (5) Org charts fail to provide insights regarding: • Informal Leaders • Internal Group Connections • Between Group Connections • Key Boundary Spanners Informal Communication Network
  • 6. Developing Network Perspective The ability to look beyond formal, designated relationships and see the connections between people in and beyond your organization. Network perspective reveals boundaries within the network and opportunities to strategically span them. ©2013 Center for Creative Leadership. All Rights Reserved.
  • 7. Systems Molecular Biology Diagnostics Integrated Solutions Targeted Therapies Bench to Bedside
  • 8. Merrimack Stat Sheet • MIT & Harvard c. 2000 • Systems Engineering • Cancer Regimens • 10+ Large Molecule Programs • Based in Cambridge, MA • ~250 employees • Institutional investor base • NASDAQ: MACK BOD SAB • Gary Crocker, Chair • Doug Lauffenburger, MIT • James Dresser, r. BCG • James Marks, UCSF • Gordon Fehr, r. Pfizer • John Park, UCSF • John Mendelsohn, MD Anderson • Barrett Rollins, Dana Farber • Sarah Nash, r. JPM/Chase • Peter Sorger, HMS • Michael Porter, HBS • Louis Weiner, Georgetown • James Quigley, r. Deloitte • Dane Wittrup, MIT • Anthony Sinskey, MIT • Mike Yaffe, MIT
  • 9. Current Drug Development Paradigm is not working Overall R&D efficiency is decreasing % of total cost of single drug success by phase Most of $ are spent from discovery to IND Can we do Pre-Clinical Drug Discovery differently ? Source: PHRMA, FDA, Economist, BCG
  • 10. Moving from trial and error to a systems understanding of cancer to design novel therapies Trial & Error Engineering ….necessitates interdisciplinary teams
  • 11. Strategic Pillars for doing Discovery Differently Multi- Systems Integrated disciplinary Biology Solutions Teams
  • 12. Mission of the Discovery Organization Efficiently progress ideas into a steady pipeline of novel therapeutics in Oncology ■ Identify critical disease networks ■ In silico test new therapeutic approaches ■ Rapidly prototype new therapeutic concepts Critical Network Network Modeling Prototype Identification Time (min) ©Merrimack Pharmaceuticals, Inc. 2012
  • 13. Our Approach Kinetic Data Sets Biology Computing Systems Analytics Engineering
  • 14. Organized for Innovation • Team Based Organization MM-121 – PODS “Bell Labs” Discovery group Medical Modeling – Projects: fully integrated, multi-disciplinary teams Engineering Biology – Expertise based Peer Groups Manufacturing – Support: cGMP manufacturing & Administration MM-111 MM-302 • Networked organization Modeling Manufacturing Manufacturing Leadership – ~60 academic collaborations Team Modeling Medical Medical – ~400 clinical sites Engineering Engineering – Phase 1 collaborator network Biology Biology – SAB, CAB, & spinouts POD 1 PODS • Productivity POD 2 – 4 years: initiate discovery to IND POD 3 – Discovery to IND: <$20M/biologic + Dx assays POD 4 POD 5 • Culture that rewards learning, innovation, teamwork • 10+ year 94% retention 14 © 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.
  • 15. PODs Seeds for novel therapeutic ideas • Small interdisciplinary teams 1-6 FTEs • Seeded by an ‘entrepreneur’ who proposes an exciting idea • Live and die based on overall excitement • Resource poor – forced to collaborate POD I POD E POD E POD J POD A POD B POD G POD H POD C POD D ©2013 Center for Creative Leadership. All Rights
  • 16. Have we really built a networked organization ? Zooming into the PODs ■ Understand if we ‘live’ the vision of a networked organization ■ Understand boundaries that might be inhibiting our success ■ Study the effect of time on the network ■ Identify areas for improvement 16 © 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.
  • 17. The 5 boundaries of leadership Vertical Demographic across levels & across diverse authority groups & differences Horizontal Geographic across functions across markets & expertise & distance Stakeholder Using a network analysis across external we can check the groups & interests connectivity across these boundaries. ©2013 Center for Creative Leadership. All Rights Reserved.
  • 18. Critical Boundaries for Merrimack Vertical Integration of Interns and Formal Leaders ©2013 Center for Creative Leadership. All Rights Reserved.
  • 19. PODs Seeds for novel therapeutic ideas • Small interdisciplinary teams 1-6 FTEs • Seeded by an ‘entrepreneur’ who proposes an exciting idea • Live and die based on overall excitement • Resource poor – forced to collaborate POD I POD E POD E POD J POD A POD B POD G POD H POD C POD D ©2013 Center for Creative Leadership. All Rights
  • 20. Critical Boundaries for Merrimack Vertical Integration Color indicates POD POD H POD A POD I POD C POD E POD B POD J POD E POD G POD D Shape indicates level Down Triangle = Senior Leader Up Triangle = POD leader Square = employee Circle = intern Size indicates In Degree Centrality ©2013 Center for Creative Leadership. All Rights Reserved.
  • 21. Critical Boundaries for Merrimack Horizontal Collaboration between Cross-Functional Teams and Professions ©2013 Center for Creative Leadership. All Rights Reserved.
  • 22. Horizontal Collaboration February June Profession Antibody Engineer Weekly Ties Total 606 Total 628 Average 15.3 Average 14.6 Cell Biologist 75% between PODs 87% between PODs Computational Modeler In Vivo Scientist Daily Ties Total 147 Total 154 Average 3.8 Average 3.6 Liposomal Scientist 49% between PODs 81% between PODs Protein Biochemist February June ©2013 Center for Creative Leadership. All Rights Reserved.
  • 23. Critical Boundaries for Merrimack Geographic Floor design (and stairs) segregating communication ©2013 Center for Creative Leadership. All Rights Reserved.
  • 24. Geographic Communication 4TH Floor Mezzanine 2ND Floor ©2013 Center for Creative Leadership. All Rights Reserved.
  • 25. Geographic Communication Critical Boundaries for Merrimack 4TH Floor Mezzanine 2ND Floor ©2013 Center for Creative Leadership. All Rights Reserved.
  • 26. bound a ry 1. A border that indicates bounds or limits 2. A frontier where advances and new activity occurs ©2010 Center for Creative Leadership. All Rights Reserved. ©2013 Center for Creative Leadership. All Rights Reserved.
  • 27. 3 strategies for spanning boundaries Managing Forging Discovering Boundaries Common Ground New Frontiers ©2013 Center for Creative Leadership. All Rights Reserved.
  • 28. Managing Boundaries Taps into the power of differentiation – the need for distinctiveness, divergence, and uniqueness across group boundaries.
  • 29. How areare Boundaries How Boundaries Strengthened at Strengthened at Merrimack Merrimack? Managing Boundaries Buffering Define Boundaries to achieve … Safety and Security
  • 30. How areare Boundaries How Boundaries Strengthened at Strengthened at Merrimack Merrimack? Managing Boundaries Reflecting Understand Boundaries to achieve … Awareness and Respect
  • 31. Forging Common Ground Taps into the power of integration – the need for unity, convergence, and belonging.
  • 32. How is Merrimack Integrating Across Boundaries? Forging Common Ground Connecting I started a journal group for more junior scientists. It’s a group of people Suspend that didn’t really interact. People have Boundaries become more interactive and friendly. I to achieve have a rule that we would be able to talk about anything we wanted to. Mutual I’ve seen people that have been very Confidence and quiet and kind of in the corner, come Trust out in this group and just blossom. ©2013 Center for Creative Leadership. All Rights Reserved.
  • 33. How is Merrimack Integrating Across Boundaries? Forging Common Ground Mobilizing It feels more like a company instead of different floors. It just facilitates more interactions and more relationships. I think it’s a very good thing. Reframe Connecting Boundaries to achieve 4 Community and Accountability 2 Mobilizing ©2013 Center for Creative Leadership. All Rights Reserved.
  • 34. Discovering New Frontiers Taps into the power of integration and differentiation simultaneously – the location where the most advanced and innovative opportunities await.
  • 35. How is Merrimack Fostering Innovation? Discovering New Frontiers Weaving We started something that’s called a swarm team. … Having that connection and the ability to explore Interlace whether or not it was a viable option together really Boundaries improved everyone’s understanding. to achieve Interdependence and Collective Learning ©2013 Center for Creative Leadership. All Rights Reserved.
  • 36. How is Merrimack Fostering Innovation? Discovering New Frontiers Transforming Gene Protein Network Cross-Cut Boundaries to achieve Network dynamics govern cell decisions Reinvention and Alternative Discovery on Networks, Not Targets Futures ©2013 Center for Creative Leadership. All Rights Reserved.
  • 37. Impact to date… ©2013 Center for Creative Leadership. All Rights Reserved.
  • 38. Impact at Merrimack Re-conceptualizing leadership opened up opportunities for career development
  • 39. Impact at Merrimack Impact at Merrimack • Showing that network awareness matters (The feedback) opened my eyes in a positive way. To see where I am, which network area and connections I have. It’s like from outside someone who looks at you and it gives me some good confirmation. I could do probably far more in connecting to research groups which I have nothing to do with might help me in the long run. ©2012 Center for Creative Leadership. All Rights Reserved.
  • 40. Impact at Merrimack Power of Combing ONA and BSL Impact at Merrimack • Data need to breakdown physical barriers to collaboration. The network analysis actually allowed us to make the argument. ©2012 Center for Creative Leadership. All Rights Reserved.
  • 41. Impact at Merrimack • Checking the network shows commitment to maintaining a collaborative culture ©2012 Center for Creative Leadership. All Rights Reserved.
  • 42. Questions? Please contact Kristin L. Cullen (cullenk@ccl.org; 336-286-4468). We’d like to acknowledge the contributions of : Craig Appaneal, Donna Chrobot-Mason, Alexandra Gerbasi, and Chuck Palus ©2012 Center for Creative Leadership. All Rights Reserved.