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Should MedTech leaders be evaluated with the same rigour as airline pilots? Pilots undergo intensive, twice-yearly assessments because lives are at stake. Yet executives making life-impacting decisions are judged largely on short-term financial metrics. This episode of HealthPadTalks argues for a pilot-inspired, holistic appraisal model - spanning ethics, crisis readiness, communication, compliance, and teamwork - for the MedTech C-suite. LISTEN NOW!

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This Commentary:
  • Analyses key takeaways from JPM’s 2025 CEO Call Series featuring 12 top-performing MedTech leaders
  • Reveals how innovation, disciplined capital allocation, and operational agility drive sustained outperformance
  • Contrasts high performers with underperforming peers stuck in legacy models and reactive strategies
  • Offers a sharp, urgent lens for boards and executives to reassess priorities and leadership behaviours
  • Makes the case that bold, long-term thinking is a prerequisite for MedTech success

The Leadership Dividend

If you are a MedTech CEO, board director, or senior executive still steering the future with one eye on the past, J.P. Morgan’s 2025 CEO Call Series is both a mirror and a wake-up call. Each CEO was asked: How do you and your board create shareholder value? The responses - drawn from twelve leading companies, including ABT, ATRC, BDX, BSX, COO, GEHC, HAE, INSP, MDT, PODD, SYK, and ZBH - form the foundation of this Commentary.

What emerges is an analysis of sustained outperformance. These companies are not chasing quarters. They are building durable advantage through long-term discipline, scaled innovation, and relevance in an industry that does not wait.

Grounded in executive insights, investor perspectives, and proprietary data, the JPM report describes what sets this leadership cohort apart: a proactive stance on transformation, disciplined capital allocation, and an intent to shape the future of healthcare technology. In a sector defined by disruption, these leaders are writing the next chapter.

J.P. Morgan’s thesis is clear: consistent success in MedTech is never accidental. It is the product of deliberate, often difficult, strategic choices - anchored in long-horizon thinking and an understanding that advantage compounds over time. From Abbott to Stryker, this group aligns around three disciplines: (i) innovation-led growth, (ii) rigorous capital deployment, and (iii) operational agility linked to long-term intent. These are not slogans - they are visible in every investment decision, leadership behaviour, and incentive structure.

For companies clinging to legacy assets, guided by outdated assumptions, or focused on marginal gains, the contrast is stark. Every MedTech firm faces the same macro forces: rising care complexity, digital acceleration, shifting reimbursement, and the transition to value-based ecosystems. Yet only a few navigate with clarity, conviction, and coherence.

This Commentary focuses on those few - not to dismiss the sector’s challenges, but to extract the choices that drive enduring performance. For others, the message is blunt: underperformance is no longer just a market problem. It is a leadership one. And in today’s MedTech landscape, accountability is not optional. It is the price of relevance.

 
In this Commentary

This Commentary distils strategic insights from J.P. Morgan’s 2025 CEO Call Series, analysing how 12 top-performing MedTech companies are outperforming through innovation-led growth, disciplined capital allocation, and operational agility. It challenges underperforming leaders to confront uncomfortable truths, rethink legacy strategies, and adopt a future-focused mindset. The core thesis: in today’s MedTech landscape, bold, long-term leadership is not optional - it is the price of relevance.
 
Innovation Is the Growth Model - Not Just a Line Item

In today’s MedTech landscape, innovation is no longer a function to fund - it is the foundation to build upon. The high-performing companies profiled by JPM are not just increasing R&D budgets or chasing the next product iteration. They are treating innovation as a strategic engine - integrated across clinical development, digital infrastructure, go-to-market models, and how care is delivered.

This distinction is critical. It is not about how much you invest; it is about how intentionally you innovate. The standout leaders - Boston Scientific, Insulet, Abbott, among others - are deploying innovation as a lever to reshape categories, expand addressable markets, and build economic moats. For example, Mike Mahoney’s strategy at Boston Scientific fuses internal R&D with a venture-style approach to external innovation, systematically placing bets on next-gen technologies that can transform care and accelerate growth. At Insulet, a focus on patient-centric simplicity and digital-first integration has enabled consecutive years of 20%+ growth, supported by a scalable, high-margin, recurring revenue model that most MedTechs can only envy.

By contrast, many underperforming players remain mired in a reactive, tactical posture - adjusting legacy offerings, shadowing competitor moves and approaching innovation primarily as a capital expenditure rather than a lever for strategic distinction. While such companies may meet short-term targets, they often forgo the broader opportunity: to shape clinical pathways, influence standards of care, and secure premium economics. In some cases, this posture reflects not just organisational inertia, but a deeper leadership mindset - one that prioritises operational continuity over reinvention. Progress, in this context, may depend as much on the willingness of senior leadership and boards to acknowledge their role in setting the tone for strategic ambition as it does on the tactics themselves. Only when such responsibility is embraced can a more transformative path forward take root.

The lesson: innovation should not just be a source of new products. It must be a driver of category leadership, margin expansion, and long-term shareholder value. If your R&D strategy is not explicitly aligned to those outcomes - if it does not scale across clinical, digital, and commercial domains - you are not investing in innovation. You are spending capital without building future relevance.

Breaking the Price Barrier


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Bet Boldly Where the Growth Is - And Prune What Isn’t

One of the most striking and consistent patterns emerging from the JPM 12 is clarity - and courage - with which high-performing MedTech leaders reallocate capital. These CEOs are not protecting historical strongholds or clinging to legacy product lines. They are systematically shifting their portfolios toward higher-growth, higher-margin segments with the discipline of long-term investors and the urgency of entrepreneurs.

This is not just a matter of portfolio management - it is strategic renewal in action. Consider Haemonetics, which has transformed from a plasma-concentrated business to one where ~85% of its revenue now flows from high-growth, high-margin categories. Or Stryker, which exited low-growth spinal implants to double down on peripheral vascular and other adjacencies with greater runway. Becton Dickenson (BD), meanwhile, is redeploying capital into secular growth arenas like biologics, AI-enabled diagnostics, and smart monitoring - driving up its compound annual growth rate (CAGR) and repositioning the company for sustained value creation.

This aggressive capital reallocation suggests that the leading MedTechs are not defending yesterday’s relevance - they are buying into tomorrow’s opportunities. And crucially, they are willing to divest, exit, or deprioritise non-strategic assets to fund that future. This is a pragmatic recognition that strategic clarity requires trade-offs - and growth requires fuel.

By contrast, many traditional peers remain anchored to legacy franchises that have long since ceded both growth momentum and pricing power. The hesitation to divest or reconfigure these assets often presents as prudence, but more often reflects inertia masked as strategic caution. The consequences are evident: reduced investment flexibility, a waning competitive edge, and a strategic narrative that struggles to engage stakeholders. In many instances, these outcomes are less about structural constraints and more about leadership choices - implicit decisions to preserve the familiar over pursuing the necessary. It is only when senior teams are willing to confront these trade-offs directly that the conditions for meaningful reinvention can emerge.

The lesson: the top performers are not just reallocating capital - they are reallocating conviction. If you are still optimising yesterday’s business, you are missing tomorrow’s advantage.

 
Operate with Lean Discipline

One of the defining insights from the JPM survey of 12 CEOs is the fact that the most successful MedTech leaders are mastering the dual mandate of operational discipline and strategic boldness. They are not choosing between near-term performance and long-term reinvention - they are delivering both. Their businesses are built to run lean, act fast, and invest decisively. And they are doing it with a level of precision that suggests capital is not just managed; it is weaponised.
Take GE Healthcare, which has emerged from its spin-off with a sharper cost base, clearer accountability, and a renewed focus on solving end-to-end care challenges. Or Becton Dickinson, where the “BD Excellence” initiative is driving gross margin expansion while simultaneously funding innovation in biologics and smart monitoring. These companies are not just trimming fat - they are building agility into their core. Margin expansion becomes a growth enabler, not just a reporting line.

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Think Bold Act Smart



 
Even MedTech giants with legacy complexity - Medtronic, for instance - are embedding financial discipline into their strategic pivots. They are not waiting to be “fixed” before investing in innovation. They are finding ways to do both, using leaner operations and sharpened performance metrics to unlock EPS leverage, restore credibility, and buy back strategic optionality.

In contrast, legacy organisations often find themselves weighed down by remediation fatigue, inflated SG&A structures, and diffuse accountability models. Operational constraints in these contexts are too often treated as fixed boundaries rather than challenges to be reshaped. Yet these constraints are frequently the result of cumulative choices - to postpone difficult decisions, to preserve organisational comfort, and to manage around complexity rather than address its root causes. While these patterns may emerge gradually, they are rarely accidental. More often, they reflect a leadership posture that prioritises stability over clarity and control over coherence. Reversing this trajectory begins with a willingness at the top to reframe constraints not as inevitabilities, but as opportunities to lead with intention.

The lesson: lean operating discipline is not about austerity - it is about creating strategic freedom. It gives you the margin to reinvest, the resilience to adapt, and the confidence to lead. Without it, you are not building the future. You are funding decline.

 
What Underperforming MedTechs Must Do

It is easy to blame underperformance on external headwinds. Interest rates, labour shortages, remediations, supply chain volatility, regulatory drag. But the outperformers in JPM’s 2025 CEO Series are facing the exact same macro pressures. They are not shielded from turbulence - they have built organisations designed to navigate it. The delta is not in the environment. It is in the response. And that response is rooted in mindset, governance, and execution.

Too many underperforming MedTechs are trapped in a reactive operating model. Strategy is filtered through the lens of remediation, not reinvention. Capital is consumed by constraints, not deployed toward opportunity. Innovation is treated as discretionary, while yesterday’s products are defended with shrinking returns. In these environments, leadership teams are managing downside risk while others are creating upside leverage. This is not prudence; it is drift.

The deeper issue is strategic posture. While the leaders in the JPM cohort are reshaping their portfolios, building next-generation capabilities, and investing in markets with durable tailwinds, many underperformers are anchored to business models, geographies, and products that no longer command growth or strategic relevance. The playbook has changed - but the bottom quartile is still running old plays.

This demands questions that boards and executive teams can no longer defer:
  • Are we investing behind platforms and markets that could double our enterprise value - or just preserving legacy segments that no longer differentiate?
  • Is our culture built to reward innovation, agility, and accountability - or has it normalised caution and incrementalism?
  • Are we allocating capital toward the company we aspire to be - or are we trapped in sustaining what we used to be?
  • Can our leadership team credibly claim to be shaping the market's future - or are we simply reacting to forces shaped by others?

The most painful realisation is often the most liberating: underperformance is not just a financial problem - it is a leadership problem. But it is also a solvable one. The CEOs in JPM’s research are not just out-executing. They are out-thinking, out-prioritising, and out-focusing. This is the bar. If your organisation cannot meet it, the market - and your competitors - will move on without you.
Takeaways

The CEOs spotlighted in J.P. Morgan’s 2025 series are not just outperforming - they are redefining what high performance looks like in MedTech. They have embedded innovation into their DNA, institutionalised financial discipline, and made strategic choices that reflect clarity of vision, not comfort with consensus. They are not waiting for stability to return - they are creating competitive advantage during volatility. And the markets are rewarding them accordingly - with superior margins, outsized market share gains, and rising valuations.

For leaders of legacy MedTechs, the message is not just a benchmark - it is a provocation. The time for incrementalism has passed. If your leadership team is not actively interrogating its assumptions, reallocating its bets, and rebuilding for relevance, then you are choosing passivity in a market that punishes hesitation. This is a moment that demands conviction. That demands leadership willing to rethink legacy portfolios, challenge internal orthodoxies, and reorient around where value will be created - not where it used to be.

The next decade in MedTech will not belong to the cautious. It will belong to the category-shapers - the ones who move first, think long, and act boldly. The future is being claimed now. The only question is: are you shaping it - or watching it take shape without you?
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Is corporate culture the untapped catalyst in MedTech? This episode dives into how bold, intentional culture isn’t just a nice-to-have — it’s a strategic advantage. Discover how the right culture fuels innovation, attracts top talent, and builds resilience in a rapidly shifting market. With real-world examples and actionable strategies, it makes a clear case: in MedTech, culture isn’t soft — it’s hard strategy.

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  • Legacy MedTech's decline is chronic and systemic, not a cyclical setback 
  • Leadership’s focus on short-term gains hinders long-term renewal
  • A five-pillar blueprint outlines how to rebuild relevance through digital, platform, and patient-first strategies
  • Mindset transformation is essential: from quarterly reflexes to future-focused leadership
  • Inaction is costly; only bold, strategic moves can counter rising structural and competitive threats

Think Bold Act Smart

On May 7, 2025, HealthPad published a provocative Commentary, MedTech’s Blueprint for Failure, arguing that the industry's crisis is not cyclical - but structural. A handful of elite firms continue to outperform, yet a long tail of underachievers grows more exposed and fragmented. Capital and confidence flow to the few; the rest are left treading water.

This is not a failure of operational know-how. It is a failure of mindset. MedTech leaders - particularly in struggling firms - are trapped in the tyranny of short-term performance. Quarterly earnings dominate attention, leaving little bandwidth for strategic pivots. As a result, imperatives like AI, digital therapeutics, patient empowerment, ESG, and value-based care are sidelined - not for lack of vision, but because they seem like luxuries amid firefighting.

The analogy is clinical: like patients who dismiss early signs of chronic illness, many MedTech firms misread weak signals - innovation fatigue, vanishing product differentiation, talent attrition - as non-urgent. Comforted by legacy KPIs and familiar processes, they miss the onset of decline. By the time symptoms worsen, remedies are limited.

This is not dramatic collapse - it is slow erosion. And it is becoming endemic. Former high-flyers now face falling valuations, stagnation, outdated leadership, and mounting regulatory pressures. Yet even as they spiral into defensive postures, they cling to the false prudence of operational modifications over strategic reinvention.

Investors are not looking for recovery - they are looking for renewal. Leaders must act now, not just to repair, but to reimagine. Because those who just fix the past will be eclipsed by those building what is next.

 
In this Commentary

This Commentary offers a counterpoint to the earlier “MedTech’s Blueprint for Failure”, which highlighted the significance of shifting the focus from short-term symptom management to long-term systemic renewal. If MedTech’s ailments are chronic, the remedy must go beyond operational repairs to address the cultural rift between legacy leadership and the demands of a digital, patient-centric era. This is not about weathering another earnings cycle - it is about acting decisively before the market forces change upon you. Even under pressure, MedTech leaders must pursue a holistic, adaptable transformation strategy - one that reclaims relevance in a sector being reshaped by innovation and evolving expectations.
 
Diagnosis Confirmed
 
Chronic Decline, not a Temporary Setback
 
What once drove MedTech’s success is now its liability. Like a patient in the early stages of chronic illness, the industry is not unaware - it is falsely reassured. The symptoms are there: stalled innovation, thinning differentiation, quiet attrition. But the absence of acute crisis masks the reality of structural decline.

This is not about incompetence - it is complacency. MedTech firms that once dominated by optimising for scale and efficiency are now applying outdated logic to a changed landscape. The metrics still look familiar, the routines still run - but the market has moved on.

Healthcare is not undergoing a sudden disruption; it is experiencing a slow, systemic shift. And like the onset of chronic disease, that change is easy to ignore - until it is too late. MedTech’s failure to confront early signals has dulled its instincts, hardened risk aversion, and widened its blind spots. The slow pace of decline makes it easy to rationalise. That is what makes it so dangerous.

This is not a slump. It is a slow bleed. Over the past decade, many MedTechs have starved their future relevance by clinging to legacy businesses. By the time the damage becomes undeniable, talent has left, capital has fled, and competitors have reinvented the rules.

This is not random deterioration - it is strategic atrophy. And like any degenerative condition, it will not respond to cosmetic adjustments. Optimising legacy systems without redefining purpose is like treating organ failure with aspirin. It may dull the pain - but the collapse will continue. Without reinvention, decline is not just possible. It is inevitable.

 
The Danger of Treating Symptoms Instead of the Disease

Legacy MedTech is stuck in a cycle of symptom management - treating surface-level issues while the underlying condition festers. Tactics like spending freezes, SKU cuts, and compliance overhauls create the illusion of control, but they rarely lead to transformation. These are not strategic shifts; they are coping mechanisms.

Yes, addressing debt, regulation, and margin pressure is necessary - but it is triage, not treatment. These moves may stabilise the patient, but they do not restore health. Worse, they offer false reassurance, allowing leadership to sidestep important questions: What is the business of our business? How do we stay relevant in a system now shaped by platforms, data, and patient autonomy?

The danger lies in defaulting to familiar playbooks. What once felt safe - efficiency, standardisation, scale - is now a liability in a world pivoting to digital, decentralised, and outcomes-driven care. Recycling old strategies for new realities deepens the strategic inertia that is eroding long-term viability.

This is not about tightening bolts on a ship already adrift. It is about redesigning the vessel - its structure, purpose, and direction - before the rising tide of healthcare transformation makes any course correction irrelevant.

End of the Pitch


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A New Strategic Immune System
 
Five Pillars of MedTech Renewal

This is the inflection point - and for many underperforming MedTechs, it arrives amid a perfect storm: mounting debt ceilings, aging leadership teams, regulatory remediation, declining valuations, flatlining growth, and portfolios anchored in slow-growth markets. These compounding pressures make strategic pivoting feel not only daunting but, at times, impossible. And yet, standing still is not an option. Recovery from chronic decline will not come through marginal reform or operational fixes; it demands a systemic overhaul - a new strategic immune system. One not built to defend legacy structures, but to cultivate relevance, reinvention, and resilience in a healthcare ecosystem evolving faster than most executives have prepared for. Navigating this transition requires pragmatism, but also urgency - a readiness to tackle immediate constraints while laying the groundwork for long-term renewal.

What follows is a blueprint for regeneration. A transformation rooted in five shifts, each essential for restoring adaptive strength and ensuring long-term viability.

1. Relevance-First Leadership
The future will not be shaped by leaders who cling to control, but by those who embrace curiosity, adaptability, and - crucially - humility. In a rapidly evolving healthcare landscape, humility is not weakness; it is a strategic strength. It allows leaders to acknowledge what they do not know, create space for new voices, and adapt in the face of complexity. Legacy experience must converge with emerging insight. This requires building leadership teams that integrate institutional knowledge with the perspectives of digital natives, global innovators, patient advocates, and platform strategists. Boards and C-suites can no longer mirror only the industry’s past - they must be designed to anticipate and shape its future.

2. A Digital and Data-Driven Core
While physical devices remain foundational, the value in MedTech will increasingly come from data - how it is captured, connected, and converted into insight. Building a digital and data-driven core means embedding AI, machine learning, and predictive analytics into every layer of the business - from R&D and clinical development to commercial strategy and post-market engagement. The shift is from managing products to unlocking intelligence. MedTech leaders must evolve their operating models to reflect this new reality: treating software not as an add-on, but as a central engine of growth. This requires three moves: (i) constructing a modern tech stack (across engagement, intelligence, and infrastructure), (ii) adopting agile development practices within a regulated environment, and (iii) securing the right mix of digital talent and IP.

3. Platform and Ecosystem Thinking
The traditional MedTech sales model - built on hardware-first, product-centric strategies and long, transactional sales cycles - is no longer fit for purpose. It is dying. As the healthcare landscape evolves, monolithic business models are giving way to modular, connected ecosystems that prioritise flexibility, speed, and outcomes over proprietary control.

Yet, many MedTech organisations remain slow to adapt, weighed down not only by traditional systems but by legacy mindsets. A large share of industry leadership consists of digital immigrants - executives whose formative years predate the platform economy. As a result, strategic transformation is often constrained by outdated assumptions and a reluctance to embrace the principles of interoperability, data liquidity, and open collaboration.

The future will belong to leaders who do not try to own the stack but rather enable it. This means designing for interoperability from the ground up, treating open APIs as foundational infrastructure, and cultivating partnerships across software, services, and adjacent sectors. Siloed value chains must be dismantled in favour of dynamic, cross-functional networks that accelerate innovation and scale seamlessly across care pathways. The winners will think in platforms, build for ecosystems, and act with the urgency that today’s healthcare demands.

4. Rethinking Global Growth
The 85% of the world’s population living outside North America and Europe - contributing ~40% of global GDP - can no longer be treated as a strategic afterthought. Africa, India, the Middle East, and Latin America are not “too complex” to engage; they are too consequential to overlook.

Future growth in MedTech will not be driven by retrofitting Western models for emerging markets. It will come from reimagining value creation through digital-first delivery, radical affordability, and contextual innovation. These regions demand solutions designed for their realities - not watered-down versions of legacy products, but purpose-built offerings that address structural gaps with creativity and scalability.

Success will hinge on shifting decision-making closer to the ground. Empowered, locally rooted teams - not distant headquarters - must lead the charge, combining cultural fluency with entrepreneurial agility. What was once seen as peripheral or optional must now be reframed as central to any strategy.

In a world where innovation is increasingly decentralised and demand is global, ignoring emerging markets is no longer just shortsighted - it is strategically negligent.

5. Patient Agency and Health Equity by Design
The era of the passive patient is over. Today’s healthcare consumer is a data steward, informed decision-maker, and empowered participant in a dynamic marketplace. Transparency, interoperability, and collaborative innovation are no longer aspirational ideals - they are essential pillars of modern healthcare. Health equity is not a charitable endeavour; it is a strategic imperative. Meaningful inclusion must be embedded into the fabric of clinical trials, go-to-market strategies, and product development from the outset - not as an afterthought, but as a competitive advantage.

This is not a matter of modernising the margins - it is about reprogramming the organisational DNA. These five pillars lay the foundation for a strategic reset that positions MedTech companies not only to weather the next wave of disruption, but to actively shape it. In this context, boards - especially of underperforming firms - must recognise that strategy is their remit. The responsibility to provide clear, forward-looking leadership is not optional; it is imperative. Now more than ever, they are expected to not only answer critical questions, but to define the path ahead.
HealthPadTalks is a podcast exploring the trends redefining healthcare’s future. Building on HealthPad’s Commentaries, we don’t just deliver answers — we question them. Through bold ideas, diverse voices, and meaningful debate, we aim to improve outcomes, cut costs, and expand access for all. Make sure to follow us! 
Culture Reset
 
From Quarterly Thinking to Decade-Building
 
If legacy MedTech is serious about renewal, the transformation must begin not with tech or devices - but with mindset. The core barrier is not capital, capability, or intent. It is cultural inertia. Years of debt-fuelled M&A have hardwired a belief that scale equals strength. But in chasing size, agility has been sacrificed.

This is an industry built for quarterly wins, not long-term breakthroughs. It struggles to balance innovation with operational demands, future-building with present pressures. As long as that remains true, transformation will stay stuck in PowerPoint.

Under stress, leaders tend to default to familiar moves: cut costs, chase efficiency, avoid risk. Rational, maybe - but it is a slow bleed. The fixation on short-term certainty starves long-term relevance. Breaking the cycle requires a cultural reset. Governance, incentives, and investor narratives must shift to reward boldness, not just margin defence. Cost control is discipline - not direction.

Enduring relevance demands experimentation, resilience, and the courage to embrace uncertainty. The future of healthcare will not unfold predictably - and strategy must be just as nonlinear. Scenario thinking and foresight must move from the occasional offsite to everyday practice. Cultures built for control will not survive a system defined by speed and flux. The winners will not be the biggest. They will be the most adaptive. The era of maintenance is over. This is the era of builders.

 
Navigating the Transformation
 
 From Theory to Execution in a Constrained Reality
 
Transformation, when spoken of in White Papers and keynote speeches, can feel abstract - aspirational but detached. For many legacy MedTech executives, the reality is less forgiving. High debt loads, remediation demands from FDA warning letters, tariff volatility, and investor scrutiny do not create fertile ground for reinvention. But this is why transformation must be pragmatic, not theoretical. It must be built into the constraints - not postponed because of them.

Legacy MedTech needs a roadmap - focused, executable, and achievable within 12–36-months. This horizon will not solve everything, but it can move a company from reactive to revitalised.


Phase 1   Audit the Blind Spots
Begin with transparency - transformation is impossible without a clear view of reality. This is more than performance dashboards and metrics reviews; it means surfacing the inconvenient truths the organisation would rather ignore. Strategic blind spots - whether digital inertia, talent erosion, or cultural rigidity - must be connected to operational symptoms: compliance exposure, stagnant innovation, declining revenues, and loss of market relevance.

The critical questions are simple but uncomfortable: where are we falling behind? And more provocatively, who on the leadership team is equipped to close those gaps?

Too often, leadership structures are relics of past successes or the byproduct of internal politics, not instruments of forward strategy. Updating the playbook is hard enough, replacing the players can feel institutionally threatening. In a resource-constrained environment, such recalibration is not just difficult; it can seem impossible. But avoiding it guarantees strategic drift.

Consider Philips in the early 2010s - a company that confronted similar institutional inertia. By recalibrating its leadership and shedding legacy assets, it made space for renewal. The lesson: pruning is not failure. It is a precondition for reinvention. Clinging to outdated leadership logic may feel safe, but it is often the most expensive risk of all.


Phase 2   Build the Digital Spine - Without Breaking the Bank
Relevance in today’s healthcare landscape does not demand overnight reinvention - but it does necessitate a shift. The move from product-centric models to data-driven infrastructure is not a cosmetic change; it is a structural one. And it will not come easily. Many company executives, and board directors, shaped by the conventions of a prior industry era, are unprepared to navigate this transformation. Their frameworks for success were forged in a context that is rapidly dissolving under the weight of digital acceleration and new market expectations.

Still, even amid fiscal constraints, organisations can make meaningful progress. Targeted investments in interoperable systems, AI-readiness, and API-friendly platforms can unlock new revenue streams, enhance responsiveness to regulatory demands, and enable smarter scaling. Consider GE Healthcare’s collaboration with Lunit, a South Korean medical AI start-up. This was not an expensive moonshot - it was a deliberate, strategic bolt-on. And yet, it yielded an outsized impact: democratising access to AI-driven diagnostics, easing clinician burden, and transforming data from a passive byproduct into an active engine of value creation and improved patient outcomes.


Phase 3  Pilot the Future Under Pressure
Transformation does not need to start at scale - it needs to start with evidence. While impact is often equated with size, the catalyst for meaningful change is proof, not breadth. Decades of debt-fuelled expansion have conditioned many executive mindsets to pursue scale as a default strategy. But in today’s MedTech landscape, progress requires a shift: rather than relying on traditional commercial playbooks, leaders must learn to spot edge opportunities - underpenetrated specialties, digitally neglected workflows, or adjacent markets - where focused, agile pilots can generate rapid, high-signal validation. Scale should follow insight, not precede it.

A case in point: Medtronic’s GI Genius. Rather than pursuing a traditional go-to-market strategy, the company partnered leanly with Cosmo Pharmaceuticals to launch internationally. The result? A low-risk initiative that offered high learning value and future-facing positioning. Especially in capital-constrained environments, such pilots play a dual role: they reduce exposure while broadcasting a message of strategic direction.

For those unfamiliar with this playbook, the goal is not to "prove" transformation in theory, but to earn credibility through compact, collaborative experimentation.
Lead the Shift or Be Left Behind

Transformation under constraint is not a contradiction - it is how reinvention starts. But for many MedTech leaders, shaped by years of easy capital and unchecked growth, this moment demands a mindset shift. The old playbook - incrementalism, deferring tough calls, avoiding trade-offs - is no longer viable.

Sustainable growth now depends on confronting inefficiencies, making hard decisions, and reallocating resources with intent. What once looked like manageable underperformance is now a strategic liability.

Those who shift from reactive management to deliberate reinvention - who sunset legacy assets, make bold hires, and place focused, future-facing bets - will not just survive, but will lead. In this new era, capital discipline, digital fluency, and courage are the currencies of leadership.

 
The Cost of Strategic Inaction
 
Acquisition, Obsolescence - or Worse
 
In today’s MedTech landscape, inaction is not neutral - it compounds decline. What may seem like prudent caution often conceals a more insidious risk: mistaking activity for strategy. This is especially true when organisations become fixated on remediation efforts - resolving FDA warning letters, mending broken processes, or addressing legacy compliance gaps. While these actions are essential, treating them as the sole focus can be fatal. Remediation alone is not a growth strategy; it is a baseline obligation. In a sector shaped by regulatory scrutiny, pricing pressures, and tighter capital, standing still may feel responsible - but the market does not reward stability without progress. It penalises hesitation with eroding relevance, diminished market share, and vulnerability to more adaptive, forward-leaning competitors.

Look no further than recent cautionary tales. Zimmer Biomet’s divestiture of its spine and dental units was framed as strategic - but it was a move to stem margin erosion and recalibrate under pressure. Olympus’ spin-off of its imaging division was not innovation - it was a retreat from a legacy asset that had lost its edge. These were not proactive plays - they were forced responses to long-ignored relevance gaps. These outcomes are not isolated missteps. They are predictable endpoints of sustained strategic inertia.

Meanwhile, capital is flowing toward businesses designed for speed, intelligence, and adaptability. Investors - whether private equity or strategic - are backing AI-native platforms, remote diagnostics, and software-centric care models. Not because of hype, but because such companies are built for scale, flexibility, and user-centric value. Consider Butterfly Network: a company that did not just reimagine ultrasound hardware - it redefined its pricing, access, and clinical utility. In doing so, it captured investor interest that legacy players could not.

In this environment, relevance is not a nice-to-have - it is a prerequisite for survival. MedTech incumbents with shrinking multiples and swelling debt burdens may be tempted to preserve what is left. But without a clear path to future fit, preservation turns into liquidation. If you do not disrupt your own model, the market will - then acquire what remains at a discount, restructure it, and extract the value you failed to unlock.

The window for incrementalism has closed. The market is not waiting for laggards to catch up. It is rewarding the bold, bypassing the static, and writing off those who stay silent too long. The only risk now is pretending there is still time.

 
Takeaways

The era of comforting narratives is over. Legacy is not a shield - it is a mirror, reflecting both past success and deferred decisions. MedTech is not on the brink of reinvention; it is at risk of fading relevance, mistaking historical resilience for future readiness.

Cost-cutting is not a growth strategy. Reorgs will not rebuild capability. And digital fluency cannot be postponed. Declining margins, stagnant pipelines, talent attrition, and waning physician mindshare are not anomalies - they are symptoms of strategic drift. This is not a call for disruption for disruption’s sake. It is a call for disciplined boldness: to rethink sacred assumptions, redefine organisational identity, and lead with clarity, not caution. The path forward is not abstract: (i) Rewire leadership incentives for long-term value, (ii) Build a digital core - not digital cosmetics, (iii) Shift from closed systems to open platforms, (iv) Treat equity and patient agency as strategy, not compliance, and (v) Invest where others overlook.

Yes, headwinds are real. But they are not reasons to stall - they are reasons to act. The future is not inevitable. But it is still available - to those who move first, think deeper, and lead with intent. MedTech must choose and shape what is next or become a footnote in someone else’s strategy.
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  • Glass Cliff Dynamics: Why women are appointed to lead struggling MedTech firms - and how to turn crisis into opportunity
  • Thatcher as Playbook: Strategic lessons from Margaret Thatcher on power, presence, and perception under pressure
  • Persona as Leverage: How executive presence can reshape authority in male-dominated environments
  • Team Overhaul: Building leadership teams aligned to transformation - not just survival
  • Legacy Leadership: Moving beyond fixes to create lasting, institutional change in MedTech

Margaret Thatcher’s MedTech Masterclass

It has been several decades since Margaret Thatcher became the UK’s first female Prime Minister - a milestone often cited as a pivotal moment of progress for women in leadership. And indeed, women now lead Fortune 500 companies, run central banks, and shape global policy. Yet beneath this surface of advancement lies a persistent truth: in many industries, including MedTech, the path to senior executive leadership for women remains fraught, uneven, and frequently obstructed. In some sectors, real power is still only offered to women once the ship is sinking.
 
In the US MedTech sector, women occupy just ~4% of CEO roles - the lowest representation across healthcare subsectors. This disparity is striking given that women make up nearly half of entry-level positions in the industry. While ~34% of executive roles are held by women, their presence sharply declines at the highest leadership tier, highlighting a persistent gap in advancement. This disparity is not due to a lack of capable female leaders. Studies have shown that companies with strong female leadership - defined as having at least three women on the board or a female CEO - deliver higher returns on equity, outperforming male-led firms by ~36%.  Yet, many women in MedTech report systemic barriers to advancement. A survey found that ~74% of women believe they do not have the same potential for advancement as their male peers, and ~65% feel they are not paid equally. 

With >6,500 MedTech companies in the US, the underrepresentation of women at the top is not just a gender equity issue - it is a missed opportunity for innovation and performance. While there has been a modest increase in female CEO appointments across industries - from 6.1% in 2019 to 8.5% in 2023 - the MedTech sector lags. To progress, the industry must address these disparities, recognising that diverse leadership is not only fair but also beneficial for business outcomes.

Enter the glass cliff - a term coined to describe the precarious positions women are often handed: high-risk leadership roles at failing companies, where the likelihood of success is slim and the scrutiny intense. This dynamic is playing out with unsettling clarity. Female leaders are parachuted into what a 2024 McKinsey report on the MedTech industry called the “have-not” companies - organisations constrained by stagnant pipelines, outdated strategies, regulatory chokeholds, and dwindling investor confidence. These are not the innovation-rich flagships of the sector, but the distressed assets - burdened with legacy thinking and in need of reinvention.

In this crucible, Thatcher’s example is more than just relevant - it is instructive.

When Margaret Thatcher took office in 1979, she did not step into a well-laid path - she confronted a nation in economic turmoil, institutional inertia, and a political elite that viewed her with undisguised scepticism. Her rise was not facilitated - it was hard-fought. She methodically recalibrated her presence, including her voice, strategy, and leadership style, to cut through the noise and assert control. This kind of reinvention was not cosmetic - it was tactical. (It is worth noting that voice coaching and wardrobe advice is not uncommon among high stakes leaders; Sir Keir Starmer, the current UK Prime Minister, is also reported to have worked with a voice coach and had wardrobe advice). In positions where authority must be projected as well as earned, such preparation is pragmatic - not performative.

Thatcher’s example offers relevant lessons for anyone - regardless of gender - taking on entrenched systems under pressure. But for women in MedTech leading turnarounds in cultures that have not historically recognised them as default leaders, her case carries resonance. This is not about political alignment; it is about leadership under fire, and the ability to shift perception without compromising clarity or force.

Despite strides in equality, many legacy MedTech firms continue to reflect outdated assumptions about who leads and how. Women stepping into executive roles are often asked - explicitly or implicitly - to prove not just their competence but their legitimacy. In that context, Thatcher’s example becomes instructive. Her approach - combining strategic clarity, resilience, and the symbolic dimensions of leadership - offers a framework for navigating, and reshaping, deeply embedded systems.

 
In this Commentary

This Commentary explores what Margaret Thatcher’s leadership under pressure can teach today’s women navigating high-risk turnaround roles in MedTech. With only ~4% of CEOs in the sector being women, the Commentary offers strategic insights on power, perception, and performance. For female MedTech executives, it is a call to lead not just boldly - but irreversibly.
 
Persona as Power: Reconstructing the Leader Without Losing the Self

Leadership has always been as much about perception as performance - a reality that applies to men and women alike, though the stakes are often different. For women operating in spaces where their authority is still questioned, this dynamic can be pronounced. Margaret Thatcher grasped this with acuity. Confronted by a political establishment that saw her as an outsider, she did not shrink or conform - she recalibrated how she was seen. She worked with a vocal coach not to suppress her femininity, but to amplify her authority in environments acoustically and culturally attuned to male voices. She curated her wardrobe not to placate expectations, but to signal strength, discipline, and strategic intent. Crucially, this was not about becoming someone she was not - it was about ensuring the version of herself that stepped forward to lead was impossible to dismiss.

Male leaders, too, engage in this kind of intentional self-styling. We have mentioned Keir Starmer, but also Barack Obama was keenly aware of how he was perceived as a Black man in the highest office of a historically White political structure. He modulated his tone and body language in public settings - consciously projecting calm, reason, and poise - to defuse racialised assumptions. His carefully curated image was not artifice, but strategy: a way to lead more effectively in a world where perception can shape credibility as much as substance.

In today’s MedTech industry, female executives still encounter subtle, yet deeply embedded scepticism - often unspoken, but always consequential. They step into boardrooms where credibility must be established before strategy can be heard. They lead investor calls where conviction is conveyed through tone, tempo, and command. They face regulatory panels where calm authority can be the difference between trust and delay. In these moments, executive presence is not vanity - it is leverage.

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The role of seasoned board members becomes pivotal during periods of executive transition. Just as figures like Thatcher, Obama, or Starmer stepped into leadership with formidable capabilities yet needed to calibrate their approaches to the rhythms of their political landscapes, so too must even the most accomplished executives adapt to the contours of MedTech leadership. In such moments, a board’s role extends beyond governance into the realm of stewardship. This includes offering perspective, context, and yes, sometimes personal insight - shared not from a place of authority, but of collegial investment in the leader’s success.

Guidance in these instances is not about critique, but about enabling alignment - between the executive’s strengths and the unspoken expectations, cultural codes, and strategic nuances of the organisation. To suggest that such insight must be withheld based on the gender of either the giver or the receiver is to risk reducing leadership development to a transactional affair, stripped of the relational wisdom that often makes the critical difference. The more constructive question, then, is not Should a male board member advise a female executive? but rather, How can we, as experienced peers, offer the kind of support that allows leadership to flourish - for the benefit of the company and all its stakeholders?

This is not a call for women to change who they are. It is a call to weaponize clarity, precision, and poise - to own the space with authenticity and intent. Persona, in this context, is not about artifice. It is about alignment: aligning your presence with your purpose, your communication with your conviction. As Reshma Kewalramani has shown at Vertex Pharmaceuticals, leadership does not demand loudness - it demands gravitas. Her calm, science-led authority reshaped expectations of what a biotech CEO looks and sounds like.

Like Thatcher, today’s female leaders in MedTech are rewriting the script - on their terms. And in environments where institutional power may still lag talent, symbolic authority matters. It fills the vacuum while systems catch up. It tells the room: I belong here - and I’m in charge.

 
Reshaping the Inner Circle: Strategic Authority Over Sentiment

One of Margaret Thatcher’s earliest and most consequential acts as Prime Minister was the strategic reshaping of her cabinet - not to assert control, but to ensure alignment with her mandate for reform. She removed ministers whose support was performative, who spoke the language of change while resisting its substance and brought in those who shared her economic vision and had the discipline and capacity to deliver it. Thatcher grasped a distinction often lost in traditional legacy MedTech leadership: political endorsement is not synonymous with meaningful execution. Her approach was rooted not in consensus for its own sake, but in clarity of purpose and the resolve to surround herself with those prepared to act competently.

MedTech turnaround CEOs - especially women navigating precarious “glass cliff” scenarios - face a similar dilemma. They inherit leadership teams entrenched in legacy thinking and cautious by design: teams that preserve outdated playbooks even as the market evolves around them. In such cases, restructuring the executive core is not about disruption for disruption’s sake - it is a necessary condition for renewal.

Yet the challenge runs deeper. Senior executives often rise through their political fluency - their skill in mirroring dominant leadership styles, projecting alignment, and surviving shifting agendas. Such individuals are not saboteurs; they are products of systems that prize optics over innovation. New leaders, whether in government or business, often find themselves flanked by long-serving figures who have mastered the appearance of loyalty while sidestepping meaningful change. When bold strategies are introduced - digital transformation, market expansion, cultural reinvention - these incumbents may nod in agreement, offering gestures of support without true follow-through.


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The real threat is not open resistance. It is performative compliance that preserves the status quo. Thatcher understood this well. She did not take alignment at face value - she demanded evidence in action. So must any leader intent on transformation.

In MedTech, where stakes are high and timelines tight, there is no room for ambiguity. Leaders must distinguish between those committed to transformation and those protecting their proximity to power. As Deborah DiSanzo demonstrated at Philips Healthcare, reshaping an organisation’s trajectory means reshaping its mindset. She did not simply rearrange the org chart - she infused it with people who understood where the industry was going and had the courage and ability to get there.
The lesson is clear: transformation starts with trust - but not blind trust. Keep the builders, elevate the challengers, and scrutinise the chameleons. Align on purpose, not posture. Like Thatcher, today’s leaders must be prepared to make difficult, sometimes unpopular decisions - not to consolidate power, but to unlock it. This is not about replicating Thatcher’s persona - it is about emulating her strategic clarity. Leadership is not inherited. It is built - intentionally, relentlessly, and often in the face of disguised resistance.
 
Strategic Shock: Breaking Inertia with Bold Execution

Margaret Thatcher inherited a nation in economic freefall. Inflation was rampant, productivity had collapsed under the weight of union dominance, and Britain’s global competitiveness had all but evaporated. With little fiscal room to manoeuvre, and no popular mandate for change, she could have been forgiven for managing the decline. Instead, she engineered a strategic shock: sweeping deregulation, privatisation, tax reform, and an aggressive dismantling of entrenched power structures. She did not wait for headroom - she created it.

MedTech turnaround CEOs today face similar constraints. Many are handed the reigns of companies suffocating under debt, facing FDA warning letters or consent decrees, watching valuations slide, and trapped in low-growth or mature markets with stagnant pipelines. Internal energy is consumed by compliance, remediation, and investor appeasement. It is easy to become fixated on fixing. But as Thatcher showed, transformation demands the ability to walk and chew gum at the same time. You must repair the engine while plotting a new route.

Thatcher’s genius was to recognise that fixing the past and building the future are not sequential tasks - they are concurrent imperatives. MedTech leaders must do the same. This means delivering credible operational triage and bold bets on the future, simultaneously.

Consider Medtronic’s strategic pivot toward AI-driven surgical robotics and remote patient monitoring - a deliberate evolution beyond its traditional, device-centric foundation. Or take Anne Wojcicki’s 23andMe, which initially disrupted the genomics landscape by circumventing conventional reimbursement channels through a direct-to-consumer model, reshaping public engagement with personal health data. While 23andMe’s trajectory ultimately faltered, its bold reimagining of market entry points underscored a broader truth: these were not incremental innovations but fundamental shifts in business architecture.

Turnaround leaders must embrace this duality. Slash underperforming product lines. Redirect R&D toward high-conviction, future-facing bets. Exit legacy business models that burn cash but preserve ego. Kill innovation theatre - invest in innovation that scales. You cannot nibble at the margins when the platform is burning. Thatcher did not wait for consensus. She moved fast, with clarity, precision, and a willingness to absorb criticism in service of results. For MedTech leaders, particularly women who may face greater scrutiny in high-stakes roles, the lesson is clear: do not just fix the mess - build the next.

 
Mastering Adversarial Arenas: Turning Scrutiny into Strategic Advantage
 
Few leaders have faced a more combative arena than Margaret Thatcher at Prime Minister’s Questions. Week after week, she stood at the Parliamentary despatch box amid volleys of jeers, interruptions, and barbed attacks - not only from the opposition, but at times from restless corners of her own party. Yet she never wavered. Armed with meticulous preparation and delivered with a steely cadence, her words cut through the noise with surgical precision. What others approached as a political ambush, she transformed into theatre - unyielding, disciplined, and commanding. In an age of shifting positions and political hedging, she made her stance unmistakably clear: “You turn if you want to. The lady’s not for turning.” Clarity over charm. Authority over appeasement. Resolve over rhetoric.

Today’s MedTech CEOs face their own version of this arena - not across dispatch boxes, but in regulatory meetings, investor calls, public earnings reports, and hostile shareholder engagements. Whether it is defending a remediation plan to the FDA, navigating a recall, or confronting activist investors demanding a board overhaul, the battlefield is real - and public.

A common misstep among leaders is viewing moments of scrutiny as reputational liabilities rather than pivotal opportunities to lead. Margaret Thatcher never sought popularity - she pursued respect. MedTech executives under pressure must adopt a similar stance. Confrontation, when handled with clarity and conviction, becomes a foundation for credibility. Whether facing a Form FDA 483, a Warning Letter, or heightened investor scrutiny, the goal is not damage-control - it is narrative control. Step forward, acknowledge the issue before others do, present a clear path forward, and project steady, competent leadership. That is how trust is earned in turbulent times.

Thatcher mastered the adversarial arena because she understood that public scrutiny is a test of leadership, not likability. She stayed on message, controlled the tempo, and turned conflict into theatre - with her as the director. For MedTech leaders facing their own high-stakes interrogations, the lesson is timeless: respect is not given in these moments - it is taken.

 
Global Influence: From Margins to Powerbroker

When Margaret Thatcher stepped onto the world stage, Britain was widely seen as a faded empire - its economy faltering, its global influence waning. And yet, she refused to play small. Through a partnership with US President Ronald Reagan, she positioned herself - and the UK - as a force in shaping the late 20th century global order. Together, they pushed for market liberalisation, confronted Soviet expansionism, and reasserted the primacy of democratic capitalism. Her international credibility did not stem from Britain’s material might, but from her strategic boldness, ideological clarity, and the force of her convictions.
Today’s MedTech leaders, especially those leading smaller or turnaround companies, face a similar crossroads. On paper, they may lack scale. But they hold the levers of global relevance - if they choose to pull them.

In a sector long dominated by wealthy US and European markets, the boundaries of influence are shifting. Nearly 85% of the world’s population lives outside these mature economies and represents ~40% of global GDP. That figure is not just a statistic - it is a call to action. The future of MedTech will be shaped by those who recognise that healthcare equity and commercial expansion are no longer separate goals. They are intertwined - and urgent.
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Namal Nawana’s leadership at Smith & Nephew illustrates what this looks like in practice. When he took the helm in 2019, the company had a strong legacy but limited global velocity. Nawana pushed aggressively into emerging markets, prioritised strategic acquisitions that aligned with growth geographies, and restructured operations to reflect a global - not Western - future. Under his leadership, Smith & Nephew began to look less like a traditional British MedTech and more like a borderless platform for surgical innovation.

Thatcher understood that influence was not granted - it was constructed. MedTech leaders should adopt a similar posture. This means engaging not just in markets, but in movements: shaping global regulatory convergence, advocating for access in underserved health systems, forming public-private partnerships that move the needle on affordability and delivery. It means going beyond the balance sheet to build reputational capital that opens doors in India, Brazil, the Middle East, Southeast Asia, and Africa - not just Wall Street or Brussels.

Female CEOs, particularly those thrust into turnaround roles, may be underestimated by legacy investors or competitors. But that is itself an opportunity. Thatcher never waited for permission to lead beyond her domestic base - she imposed her vision globally. Likewise, today’s MedTech leaders must play bigger than their current footprint. They have the chance to define the next frontier of the industry - not as responders, but as architects. To lead globally is not a vanity project. It is a strategic imperative. As Thatcher showed, conviction can become currency. And in today’s MedTech, those who combine growth with equity will not only transform markets - but they will also reshape what leadership in healthcare looks like.

 
Legacy and Longevity: Institutionalising Change

Margaret Thatcher did not just fix Britain’s problems - she rewired its operating system. Her reforms changed how the UK economy functioned, how labour interacted with government, and how Britain positioned itself on the global stage. Even her fiercest critics must contend with this: decades after she first took office, the structures she reshaped - privatised industries, deregulated markets, and a leaner, more global-facing state - still frame key debates today. That is the essence of real leadership: not personal dominance, but institutional endurance.

In MedTech, the bar should be just as high. The most consequential leaders - especially those stepping into fragile or failing organisations - must look beyond short-term wins and quarterly optics. Transformation is not cosmetic. It is structural. It lives in rewired innovation cycles, redefined performance cultures, and redesigned talent pipelines. It is felt long after the leader has left the stage.

This is critical for women leading in turnaround environments. Too often, the narrative focuses on resilience, personal grit, or “heroic” efforts under pressure. But leadership that lasts is not about heroics - it is about systems. It is about codifying a culture that prizes agility over hierarchy, rewards insight over incumbency, and builds institutional memory that does not vanish with the next succession.

Consider how some of today’s most forward-looking MedTech firms are evolving: embedding AI not just as a tool but as a mindset, decentralising R&D to tap global insight, building leadership pipelines that reflect the diversity of their patient populations. These are not symbolic changes. They are foundational.

Thatcher’s legacy did not begin with her voice, or even her cabinet - it began with the clarity of her intent. But it endured because she built structures that shifted national direction. Her influence outlasted her office, crossed oceans through her alignment with Reagan, and still echoes in policy and political strategy around the world. That kind of legacy is not about longevity - it is about impact.

For MedTech leaders, especially women rewriting the rules in male-dominated institutions, the question is not just whether they can fix what is broken. It is whether they can build something that holds, scales, and endures. Thatcher did not aim to be remembered. She aimed to be irreversible. That is the kind of leadership the future of MedTech demands.

 
Takeaways

Margaret Thatcher did not wait to be accepted. She did not ask for a seat at the table - she bulldozed the table, rewrote the rules, and built a new game. Not because she led as a woman, but because she led with vision, force, and unapologetic intent. And that is what the next generation of MedTech’s transformational leaders - many of them women - must do. The terrain is different now, but the resistance is familiar: bureaucratic drag, underpowered teams, legacy systems, and subtle doubt in every room. The instinct might be to fix quietly, to lead cautiously, to soften the edges. Don’t!

This moment does not call for caretakers. It calls for catalysts.

The future of MedTech belongs to those who can stabilise the system and simultaneously reinvent it. Who can navigate warning letters, sinking valuations, and global complexity - and still bet boldly on what is next. This is not about proving yourself. It is about building something that outlasts you. Thatcher’s real legacy was not her resilience. It was her irreversibility. The mandate for today’s MedTech leaders? Be clear. Be disciplined. Be bold. And when you lead -make it permanent.
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  • Continuous learning, adaptability, and innovation are essential for healthcare and MedTech companies to stay ahead in fast-evolving markets
  • Strong leadership is key to cultivating a learning culture, challenging outdated norms, and driving lasting transformation
  • Breaking down rigid hierarchies, silos, fear-based cultures, and short-term thinking is necessary to unlock innovation and growth
  • Underperforming MedTech firms can become agile, knowledge-driven organisations through leadership renewal, cultural audits, and continuous learning
  • Adopting a learning organisation model boosts competitiveness, improves patient outcomes, and strengthens long-term market resilience

How to Create a Learning Organisation?

In the rapidly shifting landscapes of healthcare and MedTech, where technological breakthroughs and patient needs evolve at lightning speed, adaptability, innovation, and continuous improvement have become non-negotiable. The traditional, hierarchical structures that once defined the industry have become liabilities, hindering agility, and slowing the pace of progress. In this environment, only those companies capable of learning, unlearning, and relearning can hope to stay ahead.

Enter the learning organisation - a dynamic force marked by its capacity to evolve through the constant acquisition, exchange, and real-world application of knowledge. These adaptive systems do not just react to change - they excel within it, transforming complexity into a catalyst for progress. By nurturing a culture that prizes curiosity, critical thinking, and collaboration across disciplines, such learning-driven environments establish themselves as resilient innovators, well-equipped to anticipate shifts in the landscape and respond with agility.

For traditional players in MedTech, enhancing growth, value, and long-term relevance depends on embracing a new way of operating. Yet, leaders shaped by decades in environments that prioritised stability over agility often face challenges in steering meaningful transformation. Longstanding technologies, entrenched product lines, and historically slower-moving markets have rewarded consistency rather than responsiveness. To remain at the forefront and play a role in healthcare’s ongoing transformation, these institutions must cultivate cultures where unfiltered feedback is welcomed, leadership evolves alongside innovation, and strategic focus shifts from tradition to adaptability. In a sector defined by continuous change, such evolution is not optional - it is essential.

 
In this Commentary

This Commentary examines the need for traditional healthcare and MedTech companies to evolve into dynamic learning organisations. In an industry shaped by rapid innovation, shifting patient needs, and complex regulations, adaptability and continuous learning are essential for success. By analysing leading models and common obstacles, we offer a strategic roadmap for developing agile, collaborative cultures. Challenging complacent leadership, the Commentary advocates for unfiltered feedback, cross-functional collaboration, and long-term vision - demonstrating how this shift sharpens competitiveness while advancing patient care and industry standards.
 
The Essence of a Learning Organisation

A learning organisation does more than encouraging professional development or occasional training sessions - it is a living, evolving ecosystem that systematically facilitates the growth of its people and, by extension, itself. At its core is the pursuit of knowledge, adaptability, and continuous transformation, enabling it to thrive in complex, ever-changing environments.

In his seminal work The Fifth DisciplinePeter Senge contends that effective learning organisations are built upon five interdependent disciplines: (i) personal mastery, (ii) mental models, (iii) a shared vision, (iv) team learning, and (v) systems thinking. These principles create a cohesive framework that empowers individuals and teams to question assumptions, align around common goals, and approach challenges holistically. Personal mastery supports self-improvement and a commitment to excellence; mental models encourage critical reflection of ingrained beliefs; a shared vision unites teams under a common purpose; team learning amplifies collective intelligence; and systems thinking integrates these elements, revealing patterns and interconnections that drive informed decision-making.

In a learning enterprise, knowledge flows freely across all levels, hierarchies flatten, and innovation becomes not just a goal but a natural by-product. This deep-rooted adaptability becomes part of the entity’s DNA, positioning it to anticipate change, respond with agility, and sustain long-term success in even the most volatile industries.

 
Why Learning Organisations Matter

The healthcare and MedTech sectors are rapidly evolving, driven by technological advancements, changing patient needs, and increasingly complex regulatory landscapes. In this environment, corporations that cling to outdated strategies risk becoming irrelevant. Learning-driven environments, grounded in adaptability, ongoing improvement, and innovation, are well-equipped to excel in times of disruption. This ever-evolving landscape brings into focus four areas where these agile systems consistently outperform more rigid counterparts:
  1. Rapid Technological Advancements The breakneck speed of innovation in healthcare and MedTech demands more than incremental updates to existing products. Yet, many traditional companies, despite their market standing and self-perceived industry leadership, often find themselves lagging. R&D budgets are too frequently directed towards marginal product tweaks rather than bold innovations, leaving these firms exposed to more agile competitors. Learning corporations, by contrast, excel at identifying, integrating, and scaling emerging technologies, ensuring sustained relevance and competitive strength. 
  2. Patient-Centric Approaches The modern healthcare landscape is increasingly patient-driven. Systems that cultivate continuous learning are better positioned to understand evolving patient needs, leading to the development of more impactful, user-centric solutions that improve outcomes and satisfaction. 
  3. Regulatory Complexity Healthcare operates within some of the most stringent regulatory frameworks. Learning organisations thrive here by fostering a culture of vigilance and adaptability, enabling them to stay ahead of policy changes and mitigate compliance risks effectively.
  4. Market Responsiveness Perhaps most critically, learning entities distinguish themselves through heightened sensitivity to market and technological shifts. Their leaders exhibit a strategic dexterity - capable of navigating immediate operational demands while remaining attuned to broader strategic trends that shape the competitive landscape. Unlike traditional players often tethered to legacy offerings in maturing markets, forward-thinking leaders within learning-driven environments anticipate change and position their teams to capture emerging opportunities. A case in point is the explosive growth of the sleep aid market, which many incumbents failed to recognise or act upon. In contrast, more adaptive firms leveraged their market awareness and strategic foresight to capture value in this rapidly expanding space - an advantage born from their ability to think long-term while executing effectively in the present. In 2024 the sleep aid market was valued at ~$87bn and is projected to grow to ~$163 by 2034; exhibiting a CAGR of 6.5%.

Effective leadership in learning organisations is defined not by control, but by the ability to create conditions where others can navigate complexity with confidence. Such leaders cultivate environments that reward curiosity, support experimentation, and normalise adaptation - laying the groundwork for collective intelligence to flourish in the face of change.
 
Leadership’s Role in Cultivating Learning Organisations

At the core of every thriving learning organisation are leaders who serve not just as decision-makers, but as intentional architects of culture - shaping environments where continuous learning and growth are embedded, not incidental. Nowhere is this more critical than in the rapidly evolving landscapes of healthcare and MedTech, where innovation, adaptability, and agility are non-negotiable. Here, leadership becomes the decisive force that either drives organisations forward or leaves them anchored to outdated paradigms.

Too often, seasoned executives - armed with past successes - struggle to transcend legacy thinking. In doing so, they risk cultivating cultures where tradition eclipses innovation, where feedback is dulled by hierarchy, and where maintaining the status quo is mistaken for stability. In contrast, forward-looking leaders embrace humility, curiosity, and the courage to challenge their own assumptions. This mindset translates into distinctive leadership behaviours that separate adaptive, future-ready approaches from those confined to incremental progress. Several key traits illustrate how such leaders stand apart:
  1. Visionary Leadership Effective leaders drive a shared vision that prioritises continuous learning and transformative innovation, inspiring teams to challenge conventional thinking rather than settle for incremental improvements. 
  2. Robust Feedback Mechanisms Institutionalising structured, anonymous feedback loops ensures that diverse perspectives - from supporters, challengers, and disrupters - actively shape strategy, encouraging resilience and adaptability. 
  3. Substance Over Ego Learning entities value merit over personality-driven influence. Leaders who elevate ideas above personal status create cultures of open discourse, where creativity and problem-solving thrive. Those who defend themselves as authorities, rather than relying on their position in authority, model the intellectual humility essential for organisations dedicated to learning and growth.  
  4. Adaptive Mindsets The most effective leaders cultivate an understanding that expertise is collective and provisional. They see challenges not as threats but as catalysts for learning, actively inviting diverse perspectives and dissenters to test assumptions. By promoting curiosity and embracing continuous evolution, they create environments where growth is shared, and adaptive thinking becomes the norm.

The most effective leaders embrace humility, recognising that expertise is collective and that long-term success hinges on continuous evolution, curiosity, and the willingness to challenge assumptions. Leadership in learning entities Is not about control, but about enabling others to thrive in complexity, developing cultures where innovation and adaptability become the norm.
 
Successful Learning Organisations

The transformative impact of continuous learning is most clearly seen in those that embed adaptability and innovation into the fabric of their operations. These forward-moving players do not just respond to market shifts - they often define them, cultivating cultures rooted in growth, collaboration, and agility.

It is understandable that leaders from smaller-scale ventures might view examples set by global powerhouses like MedtronicJohnson & Johnson, or Philips Healthcare as out of reach, given the disparity in resources and scale. Yet, the foundational practices behind their success are not the exclusive domain of large-scale actors. In fact, smaller teams often hold an advantage: streamlined decision-making, tighter collaboration, and a greater capacity to shift culture quickly and meaningfully.

The following examples highlight how both global leaders and more modest players can apply these principles to spark innovation and remain resilient in a constantly evolving landscape.

 
  1. Medtronic While Medtronic’s substantial R&D investments might seem out of reach for smaller firms, its commitment to fostering cross-functional collaboration is universally applicable. Smaller organisations can leverage their agility to create dynamic, multi-disciplinary teams that break down silos and accelerate innovation, often without the bureaucratic hurdles larger organisations face. 
  2. Johnson & Johnson J&J’s decentralised management approach illustrates the power of autonomy and localised decision-making. Smaller entities can adopt similar principles by empowering teams to take ownership of projects, encouraging grassroots innovation, and creating flexible structures that promote responsiveness to market changes. 
  3. Philips Healthcare Philips’s emphasis on real-time feedback from end-users demonstrates the value of external insights in driving product refinement. For smaller corporations, engaging directly with customers, clinicians, and stakeholders - often more accessible at a smaller scale - can yield invaluable data for continuous improvement and differentiation in the market. 
  4. MongoDB MongoDB, a software corporation, exemplifies how cultural transformation transcends size. Central to its approach is a disciplined, systematised practice of gathering regular, anonymous, and objective feedback focused on assessing its managers, executives, and leaders. This is not a symbolic exercise, but a deliberate mechanism designed to drive accountability, surface blind spots, and fuel continuous leadership improvement. By embedding this practice into the its operations, MongoDB ensures that leadership behaviours are scrutinised, measured, and refined - not left to executives’ subjective opinions or self-assessments. This model is neither exclusive to tech giants nor dependent on scale. In fact, smaller organisations may find such initiatives easier to implement, enabling faster cultural shifts and stronger, more engaged teams. MongoDB’s assessment strategies serve as a blueprint for any company seeking to hold its leaders accountable - and to create a culture where growth, transparency, and responsiveness is the norm.
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Obstacles to Becoming a Learning Organisation

While the benefits of becoming a learning organisation are clear, achieving this transformation is often hindered by ingrained obstacles. Such challenges, though common across industries, can be detrimental in healthcare, where innovation and adaptability are critical. Recognising and addressing these barriers is the first step toward creating a culture of continuous learning and growth. Here are some of the most common barriers that organisations must confront and overcome to successfully cultivate a learning culture.
  1. Entrenched Hierarchies Traditional, rigid hierarchies often create silos that obstruct the free flow of information and ideas, hampering innovation and agility. In many enterprises decision-making remains concentrated in the hands of executives - many of whom are digital migrants (people raised before the digital age) navigating an increasingly complex technological landscape. This insular approach risks promoting a leadership culture that prioritises short-term fixes over long-term, tech-driven strategies, as executives seek to maintain legitimacy in the face of rapid change. As a result, leaders can become disconnected from frontline realities, where valuable insights and emerging trends often take shape. To bridge this gap, organisations must re-imagine traditional power structures, flatten hierarchies, and encourage cross-functional collaboration, ensuring that decision-making is informed by a broad spectrum of expertise rather than constrained by legacy mindsets. 
  2. Fear-Based Cultures Environments where dissenting voices are dismissed or penalised stifle innovation. In such situations, people may avoid raising concerns or proposing bold ideas, fearing negative repercussions. This is compounded by leadership that focuses on personalities over substance, leading to a lack of productive dialogue. Successful learning environments  understand that failure is a crucial component of growth - so long as it does not compromise areas critical to patient safety and care. Creating psychological safety is key to encouraging calculated risk-taking and creative problem-solving. 
  3. Non-Anonymous Feedback Loops Genuine feedback is the lifeblood of any organisation, yet many companies struggle to cultivate an environment where feedback flows freely and constructively. While some executives champion subjective, face-to-face discussions as the means of gathering actionable insights, the reality is often far more complex. Hierarchical dynamics tend to stifle honest dialogue, as people - consciously or not - tailor their responses to align with perceived expectations rather than speaking openly. Anonymity and objectivity in feedback mechanisms are therefore critical to uncovering unvarnished truths. However, resistance to such transparency is not just a matter of managerial preference; it can also stem from deeper insecurities. In fast-moving, high-stakes industries, executives under pressure may feel vulnerable, leading them to prioritise personal dynamics over problem-solving. When confidence is lacking, the temptation to engage in internal politics - focusing on personalities and grievances rather than substantive issues - can become an unspoken reality and rarely lead to efficacious solutions. As a result, organisations that fail to depersonalise feedback risk entrenching defensive cultures that prioritise self-preservation over genuine progress. 
  4. Short-Termism The focus on quarterly results - driven by earnings calls and investor expectations - can inadvertently undermine long-term strategic growth. While short-term financial performance is important, it must be balanced with investments in learning, development, and innovation. Companies that focus predominantly on immediate returns risk stagnation, while those that integrate long-term planning into their strategies position themselves for sustained success.

Overcoming these obstacles requires a shift in mindset and culture. Leadership must champion transparency, embrace constructive dissent, and balance short-term goals with long-term vision to cultivate a resilient, adaptive learning organisation.
 
Roadmap to a Learning Organisation

Transitioning into a learning organisation is not a simple rebranding exercise - it demands a deep, often uncomfortable, cultural, and structural shift, and requires leadership to confront entrenched practices, challenge the status quo, and embrace a mindset of continuous growth. While the journey can be challenging, the long-term rewards - greater innovation, adaptability, and market resilience -are worth the effort. Here is a strategic roadmap to guide such a transformation:
  1. Cultural Audit The first step is an thorough, and anonymous cultural audit to unearth the systemic barriers to learning. This process must go beyond surface-level assessments often used and dig into the unspoken norms, power dynamics, and blind spots that hinder growth. It is challenging when entrenched leaders, who may be comfortable resting on the laurels of legacy offerings, dominate the culture. Such leaders can often be detached from the energy of start-ups, cutting-edge academia, or the disruptive force of big tech collaborations. An effective audit leverages anonymous surveys, focus groups, and third-party facilitators to gather unfiltered insights, helping identify the cultural obstacles impeding progress. 
  2. Leadership Overhaul Leadership is the cornerstone. Conduct an evaluation of the leadership team, focusing on (i) adaptability, (ii) relevant capabilities, (iii) openness to feedback, and (iv) a genuine commitment to learning. This should be seen as an opportunity for growth, not simply as a purge. By identifying gaps, organisations can strategically allocate resources for leadership development. However, when executives perpetually resist change, difficult but necessary decisions must be made - either retraining them for the future or transitioning them out to make room for more dynamic, forward-thinking leaders. 
  3. Implement Anonymous Feedback Systems Honest feedback is the backbone of continuous improvement, yet in many organisations, the fear of retribution stifles open dialogue. Establish standardised, anonymous feedback channels that allow employees and stakeholders to speak candidly about strategy, leadership, and operations. These systems should go beyond the occasional surveys - incorporate exit interviews, regular pulse surveys, and 360-degree reviews of executives that focus on their competence and strategic direction. Anonymous feedback generates trust, empowering people to contribute meaningful insights without fear of backlash. 
  4. Encourage Cross-Functional Teams Silos are the enemy of innovation. Encourage collaboration across departments, geographies, and disciplines to promote diverse perspectives and integrated problem-solving. Cross-functional teams create opportunities for shared learning, spark creative thinking, and ensure that ideas are evaluated through multiple lenses, leading to more robust solutions. 
  5. Invest in Continuous Learning A learning organisation views education and training not as occasional events but as a constant process. Develop ongoing professional development programmes that keep employees at all levels up to date on industry trends, technologies, and leadership practices. Go further - bring in external speakers and thought leaders who can challenge the status quo and stretch leaders beyond their comfort zones. This kind of stimulation is essential for transformative thinking. 
  6. Reward Innovation and Learning Incentivise behaviours that align with the learning organisation ethos. Recognise and reward people who take risks, share knowledge, and contribute to enterprise growth. Whether through financial incentives, public recognition, or career advancement opportunities, these rewards signal that learning and innovation are valued at the core of the company’s DNA. 
  7. Monitor and Adapt Finally, transformation is not a one-time event but a continuous cycle. Regularly assess the effectiveness of these initiatives using data-driven insights. Track key performance indicators related to employee engagement, innovation output, and market responsiveness. Be prepared to iterate - learning organisations are, by nature, adaptive. As challenges and opportunities evolve, so too should the strategies that guide growth.

This roadmap is not a gentle nudge but a call to action for corporations willing to confront uncomfortable truths and commit to meaningful change. It is a path that requires courage, but the payoff - a resilient, innovative, and market-leading organisation - is worth the effort.
 
Takeaways

The transformation from a traditional healthcare or MedTech company to a thriving learning organisation is neither simple nor swift - it is a challenging but essential journey. It calls for courageous leadership that prioritises substance over personality, embraces humility, and a culture of genuine dialogue and continuous learning. Leaders must be willing to confront uncomfortable truths, challenge entrenched norms, and create environments where innovation and adaptability are not just encouraged but expected.

By undertaking this transformation, enterprises not only sharpen their competitive edge but also contribute meaningfully to the broader advancement of healthcare. A learning organisation does not just adapt to market shifts; it anticipates them, driving forward patient-centric solutions that improve outcomes and elevate industry standards. The rewards extend beyond financial success - they shape the future of healthcare, delivering better care, more innovative technologies, and a lasting, positive impact on patients’ lives.
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MedTech companies face increasing pressure to adapt to a rapidly changing landscape. The FDA is strengthening its enforcement of regulations, highlighting the need for improved compliance and operational efficiency. Growth strategies must balance financial gains from mergers and acquisitions with the need for robust technological innovation and integration to meet evolving customer expectations and remain competitive. Success depends on addressing regulatory hurdles, managing costs, fostering a culture of innovation, and strategically forming partnerships. This episode of HealthPadTalks proposes a "playbook" outlining key initiatives to achieve these goals, including establishing innovation hubs and implementing agile methodologies.

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  • The MedTech sector has a value gap between high-growth innovators and stagnant legacy companies
  • Successful transformation requires leaders with deep regulatory expertise, a strong focus on patient-centred innovation, and adaptability that goes beyond traditional leadership skills
  • Achieving sustainable growth demands bold innovation and strategic agility, prioritising long-term impact over short-term gains
  • The Commentary offers an actionable roadmap for CEOs to build a patient-centred culture, embrace digital transformation, and capitalise on global market opportunities

Transforming MedTech: A CEO’s Playbook

An October 2024 McKinsey Report highlights a growing divide in MedTech value creation: "The top value creators have outpaced the S&P 500, while the rest of the industry has struggled. . . . investor behaviour has revealed just how wide of a gap they see between these cohorts." The US, as the largest MedTech market, represents ~40% of global trade in the sector, with AdvaMed, the American MedTech trade association, reporting ~6,500 MedTech companies across the nation. Most of these firms are small to medium enterprises, consistently maintaining a trade surplus that exceeded $1.1bn as recently as 2017. The industry’s contributions range from ground-breaking advancements in nanotechnology, imaging, and genetic testing used by international healthcare leaders to everyday essentials like bandages, thermometers, and catheters. As emphasised by AdvaMed, innovation remains at the heart of this sector’s growth and resilience.

However, the landscape is shifting. Many MedTech firms are anchored in legacy products and slower-growth markets - what McKinsey dubs the “have-nots”. These companies face stagnating innovation pipelines, flat revenues, and declining valuations. The stakes for MedTech leaders of these enterprises are high: the need for innovative growth is urgent, and competition is fierce, both from traditional MedTech players and from emerging digital health disruptors.

Leading a successful MedTech transformation demands more than standard CEO capabilities. The regulatory, ethical, and operational needs specific to MedTech set this industry apart, making general CEO guidance inadequate. Traditional leadership advice often overlooks sector-specific nuances, such as stringent FDA compliance, prioritising patient safety, and navigating extended R&D cycles. For a new MedTech CEO aiming to lead a transformation, mastering these elements, and cultivating an adaptable, future-focused approach is crucial.

 
In this Commentary

This Commentary explores the challenges and essential strategies for a new CEO aiming to transform a traditional MedTech company. It examines the current industry landscape, marked by a divide between high-growth innovators – “the haves” - and stagnant companies – “the have-nots” - and outlines the specific capabilities a MedTech CEO must develop. These include visionary leadership, patient-centred innovation, and adaptability to regulatory demands. Emphasising long-term growth over short-term gains, this guide serves as a practical roadmap for driving sustainable success and redefining leadership within the MedTech sector.
 
Beyond General CEO Playbooks: MedTech-Specific Leadership Needs

Two widely recognised resources for new CEOs are CEO Excellence: The Six Mindsets that Distinguish the Best Leaders from the Rest (McKinsey & Company, 2022) and The New CEO: Lessons from CEOs on How to Start Well and Perform Quickly by Ty Wiggins, an advisor specialising in CEO transitions. While each offers valuable insights, neither fully addresses the unique hurdles MedTech leaders face. CEO Excellence emphasises results-oriented mindsets, customer-centric strategies, and team building, all beneficial in traditional industries. However, MedTech requires specialised strategies to manage regulatory compliance, prioritise patient safety, and navigate lengthy R&D cycles where even minor compliance lapses can jeopardise patient outcomes and regulatory standing.

Similarly, The New CEO offers insights on avoiding pitfalls and making swift impacts, yet this general approach disregards specific risks in MedTech, such as navigating complex sales channels, managing extensive clinical trials, and adhering to rigorous safety standards. Rapid transformations, encouraged in this book, may be hazardous in MedTech, where safety and regulatory compliance demand a more cautious, strategic approach.

Both books emphasise innovation as a priority, but in MedTech, this is a high-stakes, long-term investment requiring regulatory validation. Thus, frameworks built around short-term profitability and agility fall short of addressing patient-centred, outcomes-focused approaches. Leaders must appreciate that in MedTech, patient safety and long-term investments outweigh short-term gains.

 
The Strategic Roadmap to Transforming a ‘Have-Not’ MedTech Company

For a new MedTech CEO, guiding a company from a “have-not” status - marked by bureaucracy, slow growth, and operational challenges - toward becoming a “have” requires a dynamic blend of strategic foresight, cultural reinvigoration, and operational precision. This transformation demands reshaping the company into an agile, innovation-driven leader capable of meeting the complex demands of the modern healthcare landscape. The following outlines the essential capabilities and leadership qualities necessary to drive a successful transformation, fostering a culture that embraces adaptability, enhances performance, and positions the company for sustainable, long-term growth.

1. Visionary Leadership and Strategic Foresight
  •  Market Vision: Innovations have reduced hospital stays by 38% since 1980, underscoring the transformative potential of emerging technologies. In 2023 alone, FDA approvals for MedTech AI rose by 43% reaching record highs. Advanced solutions like AI, generative AI,  Internet of Things (IoT), digital health, and personalised medicine are reshaping the industry. The CEO must anticipate these shifts and position the company as a leader in new care settings, from remote monitoring to AI-powered therapeutics.
  • Strategic Agility: A flexible, forward-thinking strategy is crucial. The CEO must adapt to evolving patient needs, regulatory landscapes, and market trends, ensuring the company remains resilient and competitive.
  • Growth Mindset: Driving market expansion and creating new revenue streams through disciplined M&A, strategic partnerships, innovative solutions and services and global initiatives will be key to sustained leadership and success. A future Commentary describes a process for disciplined M&A.

2. Innovative Thinking and R&D Transformation
  • Product Innovation: Shift the R&D focus from incremental improvements to ground-breaking innovations that address significant, unmet patient needs. The CEO should champion a patient-centric, outcomes-oriented strategy that not only enhances care quality but also ensures accessibility and affordability. Emphasising bold, differentiated solutions will position the company as a leader in transformative healthcare.
  • Technology Savvy: A visionary CEO must adeptly integrate cutting-edge technologies to drive innovation and maintain competitiveness. Key areas include digital health solutions like telemedicine, remote monitoring, and patient engagement platforms, alongside advancements such as AI, machine learning, robotics, and 3D printing for precision and personalised care. Expertise in IoT for real-time health monitoring, cloud computing for secure data management, and augmented and virtual reality (AR/VR) for medical training and treatment is crucial. Familiarity with regenerative medicine, genomics, biotech, and blockchain ensures readiness to navigate the evolving MedTech landscape effectively.
  • Design Thinking: Embedding a design-thinking mindset throughout the organisation can transform the R&D process. This approach emphasises empathy to deeply understand patient and clinician needs, rapid prototyping to accelerate iterative development, and continuous user feedback to refine products. This framework fosters responsiveness, creativity, and alignment with real-world healthcare challenges.

3. Cultural Transformation and Diversity Leadership
  • Diversity, Equity, and Inclusion (DEI) Leadership: Building a culture that embraces diverse perspectives and backgrounds is crucial to foster innovation. The CEO should champion structural changes to attract talent with fresh perspectives, particularly appealing to Gen Z’s values.
  • Empathetic Leadership: Cultivating an environment of empathy and psychological safety not only strengthens team morale but also unlocks creativity, fosters trust, and enhances employee loyalty.
  • Change Management Agility: Driving cultural shifts within established organisations requires dismantling silos and addressing resistance to change - particularly challenging with an average C-suite executive age of ~56 - to foster a more agile, collaborative environment.

4. Global and Patient-Centric Orientation
  • International Market Insights: Familiarity with global regulatory, cultural, and market demands is invaluable, especially in high-growth regions beyond the US.
  • Patient-Centric Perspective: Deeply understanding patient needs and outcomes on a global scale enables the development of tailored innovations that enhance both the quality of care and its accessibility, ensuring solutions are inclusive and impactful.
  • Customer Engagement and Brand Building: Establishing a patient-centric brand that embodies the company’s dedication to innovation and exceptional care quality creates a compelling differentiator in a competitive market, fostering trust and long-term loyalty.

5. Digital Transformation and Data-Driven Decision Making
  • Digital and Data Literacy: Proficiency in data analytics, AI, and digital technologies is essential for leveraging insights from patient data and operational metrics, enabling informed decision-making, and driving innovation.
  • Operational Excellence in Digital Health: Knowledge of telehealth, digital diagnostics, and wearable technologies equips the CEO to drive initiatives that improve patient outcomes, optimise operational efficiency, and position the organisation at the forefront of digital health innovation.
  • Digital Communication: Mastery of digital platforms to effectively engage external stakeholders - such as patients and clinicians - and connect with internal teams, particularly digital-native employees, strengthens the company’s innovative image and fosters a cohesive, forward-thinking culture.

6. Talent Acquisition and Development for the Future
  • Attracting and Developing Gen Z Talent: Building an authentic employer brand that aligns with the values and priorities of younger professionals is key. Focus on promoting opportunities for growth, flexibility, and meaningful social impact to engage and retain the next generation of leaders.
  • Upskilling and Reskilling for Future Readiness: Designing and executing comprehensive training initiatives ensures that employees remain competitive in an evolving landscape. Emphasis on cultivating advanced digital proficiencies and strategic capabilities is essential for driving long-term organisational success.

7. Resilience, Adaptability, and Ethical Stewardship
  • Adaptive Leadership: Excelling in dynamic environments requires a leader who can anticipate and respond to market shifts with agility and foresight. The ability to embrace ambiguity and recalibrate strategies swiftly is essential for navigating the complexities of the MedTech industry.
  • Ethical and Regulatory Expertise: A robust ethical foundation is indispensable, particularly in safeguarding data privacy, ensuring patient safety, and fostering trust. Navigating healthcare regulations demands a deep understanding of compliance frameworks and proactive risk management.
  • Commitment to Sustainability: Embedding sustainable practices into every aspect of the business - from operations and sourcing to product innovation - demonstrates alignment with Environmental, Social, and Governance (ESG) imperatives. This approach not only addresses investor and patient priorities but also solidifies the company’s reputation as a responsible industry leader.

8. Collaborative Ecosystem Building and Strategic Partnerships
  • Cross-Industry Collaboration: Historically reliant on banks to facilitate M&A, "have-not" MedTechs often overlook the transformative potential of broader partnerships. Establishing alliances with technology firms, research institutions, start-ups, and healthcare organisations can drive co-innovation, unlock new capabilities, and enhance competitiveness.
  • Ecosystem Strategy: Moving beyond traditional product-focused models, a robust ecosystem strategy integrates offerings with digital health solutions and complementary services. This holistic approach enhances patient outcomes, creates synergistic value, and reinforces the company’s leadership position in an increasingly interconnected healthcare landscape.
Takeaways
 
Transforming a MedTech company requires more than replicating traditional CEO playbooks; it demands a multifaceted approach rooted in innovation, patient-centred priorities, and operational adaptability. As the industry faces heightened competition and pressure to innovate, a successful CEO must leverage both strategic foresight and an understanding of sector-specific challenges. Building a future-ready company goes beyond finance, regulatory compliance, and incremental improvements - it requires visionary leadership that anticipates technological advancements, cultivates a culture of inclusion, and prioritises patient outcomes over short-term gains.

A MedTech CEO must embody resilience and agility, ready to navigate the complex landscape of regulatory frameworks, extended R&D cycles, and a digitally transforming healthcare environment. By championing cultural shifts, fostering global patient-centric innovation, and building strategic partnerships, the CEO can guide the company from stagnation to sustainable growth. Ultimately, achieving transformation is about creating an organisation that not only thrives in today’s competitive market but also sets a new standard for quality care, innovation, and ethical leadership that will resonate across the healthcare ecosystem for years to come. This roadmap is not just a guide for success; it is a call to redefine what leadership means in the MedTech industry.
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  • MedTech companies must shift from incremental improvements to transformative innovation to stay competitive in a fast-paced healthcare landscape
  • Exploring adjacent markets, such as personalised medicine and digital health, is crucial for growth in slow-moving markets
  • Embedding user experience research into product development helps address real-world healthcare needs and fosters faster market adoption
  • Embracing data-driven healthcare and digital solutions is essential for staying relevant and creating new revenue streams

Revitalising MedTech Innovation: Strategies for Growth

The MedTech industry has been a powerhouse of healthcare innovation, responsible for ground-breaking medical devices and diagnostics that save lives. However, many traditional MedTech companies now grapple with stagnant growth, low valuations, and a widening gap between the industry's trailblazers and those struggling to keep pace. While emerging firms leverage agile, tech-driven strategies, many established players remain anchored to legacy products, incremental research and development (R&D), and risk-averse leadership, making it difficult to adapt in a fast-evolving market. To regain momentum and drive sustainable growth, MedTech companies must shift from reactive management to a proactive, innovation-centric approach. This entails leveraging emerging technologies, fostering a culture of decisive action, and refocusing R&D efforts to address critical unmet healthcare needs. By adopting these forward-looking strategies, underperforming MedTechs can reclaim their roles as leading innovators in healthcare, delivering solutions and services that meet modern demands and improve patient outcomes.
 
In this Commentary

This Commentary explores actionable strategies for futureproofing MedTech businesses. By embracing breakthrough innovations, expanding, and diversifying product portfolios, and fostering a customer-centric culture, MedTech leaders can proactively address market shifts. Additionally, embedding digital transformation throughout operational processes is essential for creating agile, responsive, and efficient organisations. Together, these approaches enable executives to drive meaningful, lasting change and unlock pathways to sustainable growth, positioning MedTech firms to thrive amid evolving industry challenges and demands.
 
Shift from Incrementalism to Breakthrough Innovation
Challenge Many MedTech firms focus on incremental improvements rather than bold innovation, limiting their ability to capture new markets and drive value.
Strategy Establish a dual R&D structure that separates incremental improvements from high-impact, breakthrough innovation. Dedicate resources to a “safe zone” for bold projects, free from immediate commercial pressures. Setting up in-house innovation hubs, acquiring start-ups, and partnering with research institutions can spur innovation.
Example Medtronic’s integration of AI and deep learning in diabetes and cardiac care is an example of transformational R&D.


Recalibrate the Portfolio: Diversify Beyond Core Offerings
Challenge Over-reliance on legacy products ties firms to slow-growth markets, hindering revenue diversification.
Strategy Conduct a thorough portfolio review to identify areas ripe for growth, such as personalised medicine, digital health, and regenerative medicine. Shifting focus to high-growth areas like genomics and biomaterials offers opportunities to unlock new revenue streams. By targeting adjacent markets or entering non-traditional spaces, companies can reposition themselves in emerging sectors.
Example Companies investing in personalised healthcare could use DNA profiling to tailor interventions, opening lucrative new markets. Collaborations with biotech firms in genome editing or regenerative technologies could also catalyse future growth.


Adopt a Customer-Centric Innovation Approach
Challenge MedTech development has traditionally been product-centric, often failing to meet the nuanced needs of healthcare providers and patients.
Strategy Embed user experience (UX) research and human-centred design principles into product development to ensure products are patient- and clinician-friendly. This approach increases adoption rates, as products designed with customer insights tend to address pain points.
Example Boston Scientific exemplifies this shift by applying UX design to enhance patient comfort and clinician ease of use. Transitioning to customer-centric models can help companies pivot from product-driven to problem-solving approaches.


Embrace Digital Transformation and Data-Driven Healthcare
Challenge Many MedTech firms lag in adopting digital technologies, risking challenges as healthcare digitalises.
Strategy Develop a digital-first mindset across the organisation. This transformation is essential as leaders often lack digital experience, posing a barrier. Leverage insights from digital natives and integrate digital health solutions like AI, Internet of Things (IoT), and data analytics to deliver value beyond single-device sales. Creating data-driven insights can open service-oriented revenue streams and deepen relationships with healthcare providers.
Example Zimmer Biomet’s ZBEdge suite combines devices, robotics, and digital tools to offer a comprehensive solution in orthopaedics, exemplifying how digital integration can redefine care models and revenue approaches.


Shift to Disciplined Strategic M&A
Challenge MedTech companies have leaned heavily on M&A for growth, but this has often led to inefficiencies and diluted focus. Poor integration and cultural misalignment have created silos, compliance risks, and stifled innovation.
Strategy Adopt disciplined M&A targeting long-term goals, such as filling product pipeline gaps or entering high-growth markets. Plan integrations with clear success metrics and cultural alignment, while focusing on acquisitions that enhance core strengths and agility. Investments in digital health, AI-driven diagnostics, and precision medicine can drive sustainable growth.
Example Stryker’s acquisition of MAKO Surgical exemplifies strategic M&A. By integrating robotics into its orthopaedics portfolio, Stryker enhanced innovation and reshaped its market positioning, demonstrating the transformative potential of a well-planned acquisition.


Foster a Culture of Innovation and Risk-Taking
Challenge Traditional MedTech cultures are often bureaucratic and risk-averse, stifling creativity and limiting innovation potential.
Strategy Transform company culture to encourage cross-functional collaboration, calculated risk-taking, and intraprenerial thinking. Leaders should eliminate bureaucratic hurdles, reward risk-takers, and foster a collaborative environment. Initiatives like internal pitch days or innovation hubs can stimulate new ideas.
Example Johnson & Johnson’s JLABS, a network of incubators, provides start-ups with mentorship and resources, fostering a culture of innovation that could be mirrored in larger organisations to inspire bold thinking.


Invest in Partnerships and Ecosystems
Challenge Innovation in MedTech often requires expertise beyond in-house capabilities, and few companies maximise external collaborations.
Strategy Develop global partnerships that provide access to cutting-edge research, new technologies, and emerging markets. Collaborations with academic institutions, start-ups, and tech companies can bridge skills gaps and facilitate access to advanced tools and knowledge.
Example Philips’ partnership with Salesforce enhances data integration for improved patient management, while GE HealthCare's collaboration with Microsoft advances AI in diagnostics, illustrating how alliances with tech firms can enhance digital capabilities and drive innovation.


Explore New Business Models Aligned with Value-Based Healthcare
Challenge As healthcare shifts to outcomes-based models, traditional device sales may no longer suffice.
Strategy Shift from a product-centric to a service-oriented model, considering subscription-based or “pay-per-outcome” approaches. Providing a device as part of a package with data analytics, predictive maintenance, or AI insights can create ongoing revenue streams and align with healthcare’s emphasis on outcomes.
Example Zimmer Biomet’s ZBEdge is not only a device but a comprehensive solution, offering surgeons real-time feedback and analytics, showcasing a shift from device sales to value-oriented services.


Overcome Regulatory Challenges Through Innovation
Challenge MedTech’s complex regulatory landscape can stifle bold innovation if firms focus only on incremental updates.
Strategy Forge early partnerships with regulatory bodies, aligning product development with regulatory goals for smoother approvals. Engaging with regulators early can also shape policies on emerging technologies, helping firms navigate new frameworks for AI, digital diagnostics, and bioengineering.
Example Illumina’s proactive engagement with regulators positioned the company as a leader in genomics by helping to shape regulatory standards, setting the stage for industry-wide acceptance of its cutting-edge tools.


Empower the Next Generation of Leaders
Challenge Today’s senior leadership often consists of experienced executives in their mid-50s who may not have fully embraced digital transformation. Many are digital migrants (people raised before the digital age), more comfortable with established processes and legacy offerings than the emerging tech-driven landscape. As they approach the final years of their careers, there is a natural tendency to focus on maintaining the status quo rather than pivoting to disruptive innovations.
Strategy To secure a sustainable future, it is essential to actively build a leadership pipeline that values digital acumen, agility, and forward-looking expertise. Begin by identifying and promoting emerging leaders who excel in these areas, fostering a culture that prioritises continuous learning, adaptability, and digital fluency. Creating a structured, ongoing knowledge-sharing platform will encourage seasoned executives to mentor younger leaders, while simultaneously opening avenues for them to learn from digitally fluent peers. Additionally, drive data-driven decision-making across all levels of leadership, ensuring that strategies reflect the fast-paced evolution of MedTech and adjacent industries.
Actionable Steps
  • Promote Cross-Generational Learning Pair senior leaders with high-potential younger talent in mentorship programmes that encourage reciprocal knowledge exchange.
  • Implement Digital Skills Development Programmes Provide tailored training for senior executives to boost comfort and proficiency with digital tools and data analytics, positioning them to lead more confidently in a tech-forward environment.
  • Build Agility into Decision-Making Processes Shift from rigid hierarchies to a more flexible, data-driven approach. Encourage leaders to adopt an iterative, evidence-based style that aligns with rapid industry changes.
  • Invest in Leadership with Expertise in Emerging Fields Actively recruit and cultivate future leaders skilled in biotech, digital health, and AI to ensure readiness for MedTech’s inevitable transformation.
Example By strategically investing in future leaders with strengths in digital health and biotech, companies can secure a foothold in next-generation markets. Not only will this keep organisations ahead of industry trends, but it will also empower them to lead MedTech’s transformation, ensuring long-term viability and growth.
 
Takeaways

To effectively revitalise traditional MedTech companies, leaders must embrace a transformative, growth-oriented approach that departs from conventional practices. This transformation requires prioritising breakthrough innovations, expanding product portfolios, and establishing a customer-centric mindset. Digital transformation must be at the core, enabling greater efficiency and faster responses to market demands. Additionally, effective knowledge management and a culture of continuous improvement are essential to harness and optimise strategic assets, ensuring that valuable insights and expertise are not lost but actively leveraged for competitive advantage.

The goal is not just to keep pace with the industry but to redifine its trajectory and lead the way in  shaping the future of healthcare. By proactively implementing the recommended strategies, MedTech firms can secure a stronger financial foundation, drive meaningful advancements in patient care, and maintain a competitive edge in an ever-evolving landscape. Bold decisive action is critical, as it lays the groundwork for enduring success, resilience, and recognition as an industry leader. By following the outlined roadmap, companies can position themselves as key contributors to the healthcare sector’s transformation, ensuring improved patient outcomes and reinforcing their relevance in a rapidly changing world.
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