1) The document discusses boundary spanning leadership and how developing networks can drive collaboration and innovation. It focuses on a case study of the biotech company Merrimack Pharmaceuticals. 2) Merrimack takes a unique multi-disciplinary and team-based approach to drug discovery aimed at more efficiently progressing ideas into novel cancer therapies. It is organized into cross-functional project teams called PODs. 3) A network analysis was conducted to understand how well Merrimack had developed as a networked organization and to identify critical boundaries to collaboration. Several strategies for spanning boundaries like managing, forging common ground, and discovering new frontiers were discussed.

1. Boundary Spanning Leadership
and
Network Development:
Driving Collaboration and Innovation
Kristin Cullen Birgit Schoeberl
Center for Creative Leadership Merrimack Pharmaceuticals

2. Objectives
©2013 Center for Creative Leadership. All Rights Reserved.

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

4. Boundary spanning leadership

5. Why are …
NetworksNetworks critical to BSL?
Formal Structure Chief Science
Officer
Leader (1) Leader (2) Leader (3) Leader (4)
POD A (1) POD B (1) POD C (1) POD D POD E (1) POD F (1) POD G (1) POD H (1) POD I (1) POD J (1)
POD A (2) POD B (2) POD C (2) POD E (2) POD F (2) POD G(2) POD H (2) POD I (2) POD J (2)
POD A (3) POD B (3) POD C (3) POD E (3) POD F (3) POD G(3) POD H (3) POD I (3) POD J (3)
POD A (4) POD B (4) POD C (4) POD E (4) POD F (4) POD H (4)
POD A (5) POD B(5) POD C (5) POD H (5)
Org charts fail to provide insights regarding:
• Informal Leaders
• Internal Group Connections
• Between Group Connections
• Key Boundary Spanners
Informal Communication Network

6. Developing Network Perspective
The ability to look beyond formal, designated
relationships and see the connections between
people in and beyond your organization.
Network perspective
reveals boundaries within the
network and opportunities to
strategically span them.
©2013 Center for Creative Leadership. All Rights Reserved.

7. Systems Molecular
Biology Diagnostics
Integrated
Solutions
Targeted
Therapies
Bench to
Bedside

8. Merrimack Stat Sheet
• MIT & Harvard c. 2000
• Systems Engineering
• Cancer Regimens
• 10+ Large Molecule Programs
• Based in Cambridge, MA
• ~250 employees
• Institutional investor base
• NASDAQ: MACK
BOD SAB
• Gary Crocker, Chair • Doug Lauffenburger, MIT
• James Dresser, r. BCG • James Marks, UCSF
• Gordon Fehr, r. Pfizer • John Park, UCSF
• John Mendelsohn, MD Anderson • Barrett Rollins, Dana Farber
• Sarah Nash, r. JPM/Chase • Peter Sorger, HMS
• Michael Porter, HBS • Louis Weiner, Georgetown
• James Quigley, r. Deloitte • Dane Wittrup, MIT
• Anthony Sinskey, MIT • Mike Yaffe, MIT

9. Current Drug Development Paradigm
is not working
Overall R&D efficiency is decreasing % of total cost of single drug
success by phase
Most of $ are spent from discovery to IND
Can we do Pre-Clinical Drug Discovery differently ?
Source: PHRMA, FDA, Economist, BCG

10. Moving from trial and error to a
systems understanding of cancer to
design novel therapies
Trial & Error Engineering
….necessitates interdisciplinary teams

11. Strategic Pillars for doing Discovery
Differently
Multi-
Systems Integrated
disciplinary
Biology Solutions
Teams

12. Mission of the Discovery Organization
Efficiently progress ideas into a steady pipeline
of novel therapeutics in Oncology
■ Identify critical disease networks
■ In silico test new therapeutic approaches
■ Rapidly prototype new therapeutic concepts
Critical Network Network Modeling Prototype
Identification
Time (min)
©Merrimack Pharmaceuticals, Inc. 2012

13. Our Approach
Kinetic Data Sets
Biology
Computing
Systems Analytics
Engineering

14. Organized for Innovation
• Team Based Organization
MM-121
– PODS “Bell Labs” Discovery group
Medical Modeling
– Projects: fully integrated, multi-disciplinary teams
Engineering
Biology – Expertise based Peer Groups
Manufacturing
– Support: cGMP manufacturing & Administration
MM-111 MM-302 • Networked organization
Modeling Manufacturing
Manufacturing Leadership
– ~60 academic collaborations
Team Modeling
Medical
Medical – ~400 clinical sites
Engineering
Engineering – Phase 1 collaborator network
Biology Biology – SAB, CAB, & spinouts
POD 1
PODS • Productivity
POD 2
– 4 years: initiate discovery to IND
POD 3 – Discovery to IND: <$20M/biologic + Dx assays
POD 4
POD 5 • Culture that rewards learning, innovation,
teamwork
• 10+ year 94% retention
14
© 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.

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

16. Have we really built a networked
organization ?
Zooming into the PODs
■ Understand if we ‘live’ the vision of
a networked organization
■ Understand boundaries that might
be inhibiting our success
■ Study the effect of time on the
network
■ Identify areas for improvement
16
© 2011 Merrimack Pharmaceuticals, Inc. All Rights Reserved.

17. The 5 boundaries of leadership
Vertical Demographic
across levels & across diverse
authority groups & differences
Horizontal Geographic
across functions across markets
& expertise & distance
Stakeholder Using a network analysis
across external we can check the
groups & interests
connectivity across these
boundaries.
©2013 Center for Creative Leadership. All Rights Reserved.

18. Critical Boundaries for Merrimack
Vertical
Integration of Interns and Formal Leaders
©2013 Center for Creative Leadership. All Rights Reserved.

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

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

21. Critical Boundaries for Merrimack
Horizontal
Collaboration between
Cross-Functional Teams and Professions
©2013 Center for Creative Leadership. All Rights Reserved.

22. Horizontal Collaboration
February June Profession
Antibody Engineer
Weekly Ties Total 606 Total 628
Average 15.3 Average 14.6 Cell Biologist
75% between PODs 87% between PODs Computational Modeler
In Vivo Scientist
Daily Ties Total 147 Total 154
Average 3.8 Average 3.6 Liposomal Scientist
49% between PODs 81% between PODs Protein Biochemist
February June
©2013 Center for Creative Leadership. All Rights Reserved.

23. Critical Boundaries for Merrimack
Geographic
Floor design (and stairs) segregating
communication
©2013 Center for Creative Leadership. All Rights Reserved.

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

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

26. bound a ry
1. A border that indicates bounds or limits 2. A frontier where advances and new activity occurs
©2010 Center for Creative Leadership. All Rights Reserved.
©2013 Center for Creative Leadership. All Rights Reserved.

27. 3 strategies for spanning boundaries
Managing Forging Discovering
Boundaries Common Ground New Frontiers
©2013 Center for Creative Leadership. All Rights Reserved.

28. Managing Boundaries
Taps into the power of differentiation – the need for
distinctiveness, divergence, and uniqueness across
group boundaries.

29. How areare Boundaries
How Boundaries Strengthened at
Strengthened at Merrimack
Merrimack?
Managing Boundaries
Buffering
Define
Boundaries
to achieve …
Safety and
Security

30. How areare Boundaries
How Boundaries Strengthened at
Strengthened at Merrimack
Merrimack?
Managing Boundaries
Reflecting
Understand
Boundaries
to achieve …
Awareness and
Respect

31. Forging Common Ground
Taps into the power of integration – the need for unity,
convergence, and belonging.

32. How is Merrimack Integrating Across
Boundaries?
Forging Common Ground
Connecting
I started a journal group for more
junior scientists. It’s a group of people
Suspend that didn’t really interact. People have
Boundaries become more interactive and friendly. I
to achieve have a rule that we would be able to
talk about anything we wanted to.
Mutual I’ve seen people that have been very
Confidence and quiet and kind of in the corner, come
Trust out in this group and just blossom.
©2013 Center for Creative Leadership. All Rights Reserved.

33. How is Merrimack Integrating Across
Boundaries?
Forging Common Ground
Mobilizing
It feels more like a company instead of different
floors. It just facilitates more interactions and more
relationships. I think it’s a very good thing.
Reframe
Connecting
Boundaries
to achieve 4
Community and
Accountability
2
Mobilizing
©2013 Center for Creative Leadership. All Rights Reserved.

34. Discovering New Frontiers
Taps into the power of integration and differentiation
simultaneously – the location where the most advanced
and innovative opportunities await.

35. How is Merrimack Fostering Innovation?
Discovering New Frontiers
Weaving
We started something that’s called a swarm team.
…
Having that connection and the ability to explore
Interlace
whether or not it was a viable option together really
Boundaries
improved everyone’s understanding.
to achieve
Interdependence
and Collective
Learning
©2013 Center for Creative Leadership. All Rights Reserved.

36. How is Merrimack Fostering Innovation?
Discovering New Frontiers
Transforming
Gene Protein Network
Cross-Cut
Boundaries
to achieve
Network dynamics govern cell decisions
Reinvention and
Alternative Discovery on Networks, Not Targets
Futures
©2013 Center for Creative Leadership. All Rights Reserved.

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

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

39. Impact at Merrimack
Impact at Merrimack
• Showing that network awareness matters
(The feedback) opened my eyes in a positive way. To see where I
am, which network area and connections I have. It’s like from
outside someone who looks at you and it gives me some good
confirmation.
I could do probably far more in connecting to research
groups which I have nothing to do with might help me in
the long run.
©2012 Center for Creative Leadership. All Rights Reserved.

40. Impact at Merrimack
Power of Combing ONA and BSL
Impact at Merrimack
• Data need to breakdown physical barriers
to collaboration.
The network analysis actually
allowed us to make the argument.
©2012 Center for Creative Leadership. All Rights Reserved.

41. Impact at Merrimack
• Checking the network shows commitment
to maintaining a collaborative culture
©2012 Center for Creative Leadership. All Rights Reserved.

42. Questions?
Please contact Kristin L. Cullen (cullenk@ccl.org; 336-286-4468).
We’d like to acknowledge the contributions of :
Craig Appaneal, Donna Chrobot-Mason, Alexandra Gerbasi, and Chuck Palus
©2012 Center for Creative Leadership. All Rights Reserved.