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Stumbling upon big business In 1949, Earl Bakken, a graduate student in electrical engineering, began performing repairs on delicate medical lab equipment at the Minneapolis hospital where his wife worked. With his brother-in-law Palmer Hermundslie, part-time worker Bakken began the repairs only because the hospital had no one else qualified to do them. Recognizing the opportunity, Bakken and Hermundslie quit their jobs and founded Medtronic in a 600-square-foot unheated garage shop that they constructed themselves from scrap materials. By the late 1950s, Medtronic began working on heart pacemakers - at that time bulky, external devices that had to be plugged into electrical sockets - and soon invented a pacemaker with an internal battery. Next, Medtronic acquired the first patent for internal pacemakers. Today, it sells over half of the pacemakers in the world. Self-confident to a fault Medtronic has since expanded its business and product line. The company now makes heart defibrillators, devices to monitor and regulate blood and neurological activity. It has also acquired several other biomedical subsidiaries. Since the mid-'80s, Medtronic has emphasized its research and development efforts, on which its spends over $230 million annually. The company has been having problems with the FDA over claims of poor product performance. Medtronic was cited three times between 1996 and 1998 for failing to conduct product performance tests over long periods of time. Company officials say that difficulty is a result of Medtronic's confidence and eagerness to meet the needs of the infirmed rather than any desire to deceive. Quick, pass me that defibrillator! In June 1998, Medtronic produced the smallest and most advanced internal defibrillator ever - named Gem. Medtronic, the leading producer of internal defibrillators, continued its product expansion by purchasing Physio Control International, the leading producer of external defibrillators. After cardiac arrest, victims have only 15 minutes for defibrillation before death. Thus Medtronic is attempting to market its newly-acquired external defibrillators to public places such as hotels and gyms so that victims aren't forced to wait for the ambulance. Its stated goal is to make defibrillators as prevalent as fire extinguishers. Heartfelt acquisitions Medtronic also bought selling rights from Vista Medical Technologies for a device that gives surgeons better views of hearts during bypass procedures. And, continuing the strategy of product growth through acquisition, in July 1998 Medtronic acquired Minnesota-based Avecor, which produces heart/lung bypass surgery and respiratory support. The acquisition allows for the development of the most advanced cardiac surgery technology at the lowest possible cost. Medtronic also acquired Arterial Vascular Engineering in January 1999, marking the establishment of the Medtronic Vascular division. In 2000, Medtronic added XRT Corp. to that division, expanding its development of radiation therapies to prevent arteries from reclogging, known as restenosis. Cognetix, Inc, a novel therapeutics company, and Medtronic teamed up in 1999 to develop a new approach to the treatment of epilepsy aimed at reducing seizures. Late in 1999, Medtronic merged with Xomed Surgical Products to form Medtronic Xomed, which produces surgical instruments for ear, nose, and throat physicians. New products will get your heart beating Medtronic introduced many new products into the medical community in 1999. The company released an implantable device known as the Jewel AF, designed to control fast heartbeats in the upper chambers of the heart. Also, a new tissue valve for hearts, the Hancock II, was released to aid heart patients whose heart valves no longer work properly. The Zuma, a coronary guiding catheter product, was introduced, as was a new drug to treat urinary control problems called InterStim. A partnership with Microsoft and IBM is moving Medtronic online. Medtronic.com is to become a secure network linking heart patients who have pacemakers and defibrillators inside them to their doctors and other healthcare services. With these devices hooked up to the Internet, doctors will be able to care for patients thousands of miles away. The company has already pooled $230 million into the new Patient Management Systems and will continue to invest in the project until 2003. Soon after signing with Microsoft and IBM, Medtronic entered into a four-year publishing contract with Healtheon/WebMD. Together the two companies will provide health care information to consumers and doctors over the Internet, as well as other media. The moves and for some, the blues Many Medtronic employees have found themselves wondering if their jobs are secure after the company's many recent acquisitions and attempts to expand its market. The day after Medtronic acquired Arterial Vascular Engineering, the company announced its plan to close five of its 10 facilities and cut approximately 1,600 jobs. It also announced its intent to cut 560 more jobs by closing its Anaheim plant after acquiring Avecor. Medtronic plans to relocate many of the workers it is not firing, but many employees question such job cuts at a time when Medtronic is doing well financially. The company even announced its plan to build a new $250 million corporate headquarters in Fridley, MN over the next few years that will house 3,000 workers. The new headquarters coincides with Medtronics new strategy: Medtronic is moving from being a pure medical device maker to a health management company. Evident in its partnership with Microsoft and IBM, Medtronic is turning its products into information technology devices, capable of hooking up to the Internet and generating information (not to mention revenue).
Many insiders warn that at Medtronic "the best positions are not usually on paper" because "people rarely leave the company once they're in." The "best way to get in the door at Medtronic is through referral," says one insider. Others say that the company performs "campus recruiting, although this form of hiring certainly does not account for a major portion of the employees." At most interviews you will be begin by talking to the Human Resource representatives. Some candidates also "meet with the hiring manager" in the first stage. Subsequent meetings involve "a few people who would be co-workers if you got the job." Employees have reported that "some departments give a small quiz." Fortunately, the company has "no standard set of tests." In other words, most candidates will likely not have to pass an exam. Medtronic's provides current openings on its job hotline and on its employment web page, located at www.medtronic.com/employment. Resumes are accepted online and will be kept on the company's electronic database for one year. While the company most frequently has openings at its Minneapolis headquarters, the Tempe, Arizona office also has a number of open positions. Medtronic frequently hires engineers and other recent graduates with science backgrounds, in addition to its recruiting efforts in finance, marketing, and sales.
Layoffs can't spoil enthusiasm Medtronic has recently engaged in "limited layoffs," which have "dampened employee morale." However, many employees report that they are "encouraged" by Medtronic's recent performance, which they hope will lead to further corporate growth. Those who work in the company's research facilities comment that they have access to "the best resources available" and that the company's expertise in medical engineering is "unsurpassed." The "team-oriented" atmosphere focuses on finding the "right combination" of employees with skills that "complement one another." Employees also benefit from a "manageable" work schedule, a "generous" stock purchase plan, and company gyms. Employees with heart Most Medtronic employees "have no reservations whatsoever about recommending Medtronic as a place to work." Every Friday at Medtronic "is casual and it seems that many employees stretch this to other days." What motivates Medtronic employees to perform well? We "care a great deal about our jobs and take a great deal of pride in what we do," declares one. Medtronic's stated goal is "to help to restore our users to full life, which is a goal that motivates employees better than anything else." As another insider testifies, "my motivation to come to work each day stems from a knowledge that my efforts are going entirely toward the restoration of life for thousands of people around the world." Fine pay, not so fine politics Medtronic "has come a long way in the process of converting from a small company to a large one," which some say has its "pluses and minuses." On the plus side, "the benefits and pay are very competitive." The minus: "the result of its large size is that employees are more susceptible to corporate politics." As for benefits, they are "good to slightly above average." One insider adds, "the pay is not out of the ordinary." Medtronic offers "a 401(k) program with employee matching funds and a stock purchase program, which allows you to buy Medtronic stock at a 15 percent discount." There is also a profit-sharing plan "which contributes somewhere between 2.5 to 4 percent of your income per year depending on company performance." For outstanding performers, "stock options, awards, and bonuses" are also given. Informal standards Most employees at Medtronic work "an 8 to 5 workday," although there is "a policy regarding flex-time." Medtronic offers "100 percent tuition reimbursement to encourage continuing education." Although there is a preference for a certain type of dress, "there is no formal dress code" at Medtronic. Warm, fuzzy feelings abound Insiders enjoy Medtronic's annual Holiday Program, where "patients come to tell the stories of how Medtronic has made an impact on their lives." Historically, employees "have had the honor of meeting patients who have received the medical devices." Insiders then witness "the gratitude that these people express, both verbally and visibly." As one employee confesses, "It gives me a feeling that is hard to explain." Focus on the end result As for the work schedule, "job assignments tend to be very focused" at Medtronic. "Rewards and recognition are also an important part of being an employee here," says a contact. Most employees agree that "Medtronic is a very good place to work, not only because of the positive environment, but primarily because of the end result: patients who have been restored to a fuller life." Moreover, "there is a strong emphasis on meeting with customers (in our case, physicians) and understanding their desires and needs." For those interested in diversity issues, insiders vouch that "Medtronic - being a global company - has a very diverse group of employees and customers."
Janet S. Fiola Human Resources (612) 586-7724
Cardiac surgery devices;Defibrillators;Pacemakers;Prosthetic heart valves;Neurological monitoring devices;Vascular surgery devices
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