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“Trials and Tribulations of Taking on a Leadership Position”
Gaetano Crupi
President and General Manager, Eli Lilly Canada Inc.

Mr. Gaetano Crupi was appointed to the position of President and General Manager of Eli Lilly Canada Inc. in February 1999. Prior to coming to Canada, Mr. Crupi was the Global Product Team Leader for Infectious Diseases and Gastroenterology at the company’s head office in Indianapolis, Indiana. Since joining Lilly in 1978, Mr. Crupi has held various international assignments in many countries, including Brazil, Venezuela and the United States. He served as Director of Pharmaceutical Marketing in Venezuela and Director of Pharmaceutical Operations in Brazil.

Mr. Crupi is a member of the Intercontinental Executive Committee reporting to the President of Intercontinental Regional Operations of the global corporation of Eli Lilly and Company. He also leads the Senior Management Team of Eli Lilly Canada.

Mr. Crupi serves on the Board of Directors for Canada’s Research-Based Pharmaceutical companies (Rx&D); is a member of the Executive Committee of Rx&D, and was elected Treasurer for the 2003 fiscal year. He serves as Chairman of RX &D’s Public Affairs Committee and Chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA) Canada Committee.

Mr. Crupi received a Bachelor of Science in Business Administration. He is fluent in four languages- English, Spanish, Portuguese and Italian.

The presentation began with a review of background information on Lilly. The company has major research and development facilities in nine countries and manufacturing facilities in 78 countries worldwide. Lilly products are available in more than 158 countries, with sales in the year 2002 exceeding US$11 billion worldwide. In 2003, for the fourth consecutive year, Eli Lilly Canada was named a “Best Company to Work for in Canada” by The Globe and Mail’s Report on Business magazine.

Lilly’s mission is to provide customers with “answers that matter” through innovative medicines, information and exceptional customer service, to enable people to live longer healthier and more active lives. This puts a “stake in the ground” of what the company stands for. “Answers that Matter” is founded on service to customers.

The company’s strategic intent is to outgrow competitors through a constant stream of innovation. The company will be successful by addressing unmet medical needs- for example by developing “best-in-class” medicines for many therapeutic areas such as severe sepsis and schizophrenia. Lilly will use the right science, and focus on the right areas, to get to the right product.

The company is guided by the values of

  • Respect for People
  • Integrity
  • Excellence

An example of Lilly’s commitment to these values is the recently announced program with the World Health Organization and other partners, through which Lilly has donated the technology to produce two drugs for treatment of Multi-Drug Resistant Tuberculosis (capreomycin and cycloserine) to nations where this problem is most prevalent.

Lilly is one of the leading companies for worldwide research and development as a percentage of sales. New products will be costly- but the company must recoup its R&D investments in order to continue the discovery of new products that will satisfy unmet needs.

Leadership versus Management

Quoting John Kotter of the Harvard Business School, Mr. Crupi noted that management is about coping with complexity, while leadership is about coping with change. Leadership complements management, but does not replace it. Mr. Crupi likened this to a rubber band: managers stretch to become leaders, and leaders stretch to become managers (but neither should be stretched all the time!)

Similarly, setting a direction is not the same as planning or even long term planning. Planning is a management process, deductive in nature, and designed to produce orderly results. Setting a direction is more intuitive.

On Motivating versus Controlling and Problem Solving

Systems and structure help normal people complete routine jobs successfully. Motivation and inspiration energize people, not by pushing them in the right direction as control mechanisms, but by satisfying basic human needs for achievement, a sense of belonging, recognition, self esteem, sense of control and ability to live up to one’s ideals.

The organization’s vision should be articulated in a manner that stresses the values of the audience they are addressing. Leaders regularly involve people in deciding how to

Achieve the organization’s vision. This gives people a sense of control.

Be flexible, and listen. Some mistakes are rubber balls and bounce back, but some mistakes are crystal balls and not worth the risk.

On Developing Leaders

Recruiting people with leadership potential is a first step. It is also important to manage career paths. Leaders will have had opportunities during their 20’s and 30’s to try to lead, to take a risk, and to learn from both triumphs and failures.

Visionary Leaders

Members of management at Lilly stretch themselves to be visionary. Vision is a powerful commodity that creates energy, increases ownership, provides focus and reduces trauma. Leaders with a vision will “Feel it, see it, own it and communicate it”.

The “Hows” of Leadership Behaviors

Good leaders will

  • Model the values
  • Create external forces
  • Set Direction with Strategic Thinking
  • Implement with integrity, energy and speed
  • Get results through people
  • Check results and exercise accountability
  • Harvest learning and share ideas

The “how” is as important as “what.”

Management Dilemmas

Mr. Crupi discussed dilemmas that are faced by those who chose to take on leadership and management roles. These include the expectations that leaders can:

  • Think strategically and invest in the future but keep the numbers up;
  • Be entrepreneurial and take risks but don’t cost the business anything by failure;
  • Continue to do everything even better, and spend more time communicating with employees serving on teams or launching new products;
  • Be passionately dedicated to visions and fanatically committed to carrying them out, but be flexible, responsive and able to change direction quickly; and,
  • Succeed, succeed, succeed…. and raise terrific children.

Mr. Crupi noted that he considers work/life balance to be the most important leadership challenge.

 

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