ResMed Inc.

ASX:RMD

ResMed Inc.

ASX:RMD
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$32.96 (+0.6%)
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#4
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Forum Topics RMD RMD Management

Pinned straw:
Remorhaz
Added 6 months ago

ResMed has announced a host of leadership changes as "part of a new operating model to accelerate long-term growth"

Chief among the executive changes is the retirement of Rob Douglas, current president and chief operating officer, on January 1, 2024. Other moves include the appointment of Justin Leong as chief product officer, Katrin Pucknat as chief marketing officer and Mike Fliss as chief revenue officer. All changes are effective immediately

"The new operating model introduces dedicated leadership in Product, Revenue, and Marketing to the global executive team. This change aims to increase the velocity of product development and sharpen our customer and brand focus", RMD said in a statement



The new operating model introduces dedicated leadership in Product, Revenue, and Marketing to the global executive team. This change aims to increase the velocity of product development and sharpen our customer and brand focus. Ultimately, the goal is to accelerate profitable growth, while driving greater value and improved care throughout the outside hospital care continuum and the patient journey

ResMed’s new Product-led, Customer-centric, and Brand-enhanced operating model includes the following executive leadership team:

Leaders appointed into new roles:

  • Chief Product Officer – Justin Leong (previously president, Asia and Latin America)
  • Chief Marketing Officer – Katrin Pucknat (previously president, Germany)
  • Chief Revenue Officer – Mike Fliss (previously vice president, North America sales)


In addition to the above roles, the executive leadership team also includes:

  • Chief Commercial Officer, SaaS – Bobby Ghoshal
  • Chief Financial Officer – Brett Sandercock
  • Chief Legal Officer – Mike Rider
  • Chief People Officer – Vered Keisar
  • Chief Strategy Officer – Hemanth Reddy


The extended CEO operations team, reporting directly to the CEO, includes:

  • Chief Compliance Officer – Jim Ellis
  • Chief Information Security Officer – Todd Friedman
  • Chief Investor Relations Officer – Amy Wakeham
  • Chief Medical Officer – Carlos Nunez
  • Chief Quality & Regulatory Officer – Dawn Haake
  • Chief Supply Chain Officer – Andrew Price


ResMed also announced that Rob Douglas, current president and chief operating officer, plans to retire on January 1, 2024. Rob will immediately transition from his current role to a new role as special advisor to the CEO and remain in a consulting role through December 31, 2024. Additionally, Lucile Blaise, current president sleep and respiratory care, will immediately transition to a new role as senior vice president, strategy & business development, reporting to Hemanth Reddy. Finally, as part of the operating model evolution, the digital health technology product organization will now report to Justin Leong, and Urvashi Tyagi, current chief technology officer, will immediately transition to a role as special advisor to the Chief Product Officer through January 1, 2024. Urvashi will remain in a consulting role through December 31, 2024
mikebrisy
6 months ago

Fascinating @Remorhaz .

I wonder how much of this is part of a planned process driven by the retirement of the COO, and how much of it is driven by CEO Mick realising he has to do more to get on top of the % gross margin performance? His missed assurances of the last two quarters are (in my view) starting to make it look like he wasn't on top of the operation.

In moving from a COO structure to Product, Revenue and Marketing functional matrix with the country operating businesses, Mick is essentially making himself COO - which makes me think that maybe he feels he needs to get back into driving the business directly, obviously aided by the CFO. (This is a corporate org. structure pendulum swing that many businesses go through.)

I have no doubt the Board and major investors have told Mick he needs to get performance humming, and this organisation structure is indicative of a CEO who is going to be very, very busy for the next 2-3 years.

From a people management and talent development perspective, its elevating three key senior managers onto the executive in the CRO, CPO and CMO - which is good if these people are their internal top talent. $RMD has a track record of being well-managed for many years, so I am going to assume this is a good thing, unless and until proven otherwise.

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Solvetheriddle
6 months ago

@mikebrisy obviously i dont know, but i think you are fairly close to the mark. more focus on individual areas and closer to ceo reports. get that GM going the right way boys (and girls)

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mikebrisy
6 months ago

@Solvetheriddle I have the (dis-)advantage of having been the architect of these kinds of changes in an earlier life and, although I don't have specific inside knowledge in this case, having listened to all the results calls over recent years, this did not at all surprise me. Mick had to do something, or else ....

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BullsWool
6 months ago

Seems like an awful lot of direct reports to the CEO. Is it really feasible to be hands on across all of this?

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mikebrisy
6 months ago

@BullsWool At 14, it is above the average for an S&P500 company, which averages between 8 and 9. But the range can be anything from a very low number (3 to 5) up to a much higher number (15+). So it is at the upper end.

While notionally all 14 are CEO "direct reports", there are probably two very different levels of seniority in the group - which is very common in large executive teams. From a people management perspective, with a good HR process, CEO will probably only meet the direct reports 2-3 times a year. (setting targets, mid-year review, annual appraisal).

How manageable a span is depends on a lot of factors: how centralised decision-making is; and importantly the working culture in the management team. I imagine that a lot of the day to day business is managed via sub-committees on which the CEO won't attend.

I have first hand experience being part of an extended Executive team (15) that was very effective in turning around a business during a tricky period over two years. There was a weekly operational meeting, and then monthly business performance reviews. Through these two forums, the MD was able to figure out precisely what issues they had to spend their time on versus what they could leave to the individual team members or sub-groups to sort out. It was also incredible from an accountability, communication, and motivatoin perspective.

A lot of the decision-making will be done in the smaller group of CEO, CFO, CPO, CMO, CRO - that's where the real power will sit, I'm guessing.

I expect this structure will only be in place for one or two years, while they get through this critical period of recovering %GM, dealing with the return of Phillips, and showing what they can do given the GLP-1 cloud.

But in answer to your question, Mick won't need to be hands on with everything. The flat structure will give him the directly visibility to decide what issues he is focusing on. It can be very effective.

But he will be very busy, for sure.








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