YouSaid · the spoken record

Roy Jakobs

lines on the record: 78
first: 2024-09-16
most recent: 2024-09-16
sittings or episodes: 1
sources: podcast

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“At the same time, you make sure that you simplify the process so that people can work in a faster and better way. So there was on one hand you changed the way how you kind of put the accountability business in the lead. You kind of go to leaner structure. And then as a result, also you make sure that if you do it with less role, so the 10,000 roles that we reused was a very tough measure because, of course, these are all dear colleagues that have been working with Great Passion for the cause of Phillips and for betterment of healthcare, but actually to make the company future fit, this was a necessary intervention. And by now we have reduced 9,000 of those roles already. But at the same time, what you see, which for me is as important proof point of, okay, we can move on that, is that the engagement in the company of the last 12 months has gone up by 8 percentage points. And we now have an engagement score of 78% versus a global norm of 80.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Structure perspective, I want to go to a simplified operating model. And I made a few important interventions. The first I said, whilst we were coming from a matrix in which we had businesses making products, region selling products, and functions giving specific functional expertise like quality or innovation or finance. They had a divide and conquer about who was doing what, and we had a joint P&L. I said, I put businesses in the lead. And the businesses take care of serving a specific segment. So again, going back to what we discussed earlier, if we are in the segment of monitoring, the business has the full P&L accountability. We are bringing the functions into the business. We lean out the total organization so that there are less handover points or you're more agile.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Was important when I started and looking also at kind of how can we increase our impact because I really took the impact lens. I said we need to adapt to an environment which is very volatile, which actually requires more agility, which also is under pressure, because if you look to our customers, they're under pressure from resources, affordability. So we need to be lean. And what is clear, if you run a big ship like Phillips, you need to be clear who is doing what and especially clarify better what the accountabilities are. So when I came out with my plan for Phillips to create sustainable impact, Said”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Welcome back. I'm talking to Royal Philip CEO, Roy Jakubs. We love to joke that Dakota is a show about org charts. So, what does it actually look like to take a big conglomerate structure and try to stream it all for the modern age? You're halfway into a pretty ambitious three-year restructuring project that you announced. As part of that, you have done or you have planned 10,000 layoffs. There's a lot of restructuring. What is the end goal? What structure do you want Royal Phillips to be in?”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“And I must say, it's really sometimes astonishing what the nurses, the doctors, technicians still have to deal with. In Germany, they still use faxes, right, as a common communication method. In the US, in some hospitals, you will see that in an imaging room, they have five different screens or in a monitoring ICU center, they look at a whole area of different kind of functionality they need to monitor. We need to help them actually to do their job in a simpler way because they want to spend their time not on five different systems. They want to spend their time on caring for the patient, on doing the best intervention and actually making the best diagnoses. And therefore, when we think about what they experience and how we can help thinking in an open manner, connecting the different systems, making it easy to work with is something that actually we really put a lot of focus on.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“So I don't believe in a world of sole provisioning. That's also building a hook. Why in the healthcare delivery we build products that are catered to an open ecosystem? We are unique. Again, going back to informatics, many of the challenges in informatics, especially for the users in dealing with informatics and informatics systems, come from the fact that there are closed systems or proprietary systems. And that means that if a hospital uses five different informatics systems, they need to jump from monitor to monitor. And actually that's not seamless. And actually an environment that we want to provide and we are truly leading in that is we provide a multi-vendor experience, which means that we are open to others to kind of hook up to our system so that the user, the nurse, or the doctor can look at one screen instead of looking at seven screens that are on their desk. I go very regularly the whole space.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“I was just wondering for signify because that's of course where we originate from not always they will have all light bulbs.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“And those are elements actually that we carry from the different experience that we hold. So actually, the brand is really a differentiator, but also what it then delivers, because that is what people remember.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“They actually, by putting our brand here, get a recognition of a trusted place where people go into to get diagnosed, and they also get an experience, which is in line with what they expect, what a Phillips brand experience is about. So they know that actually it's not only great technology, the best diagnosis, but also the ambience that we provide for is really taking care of that is the best possible experience. So there is indeed lighting when you come in that actually gives it a different feeling, right? You have the UR experience. You kind of, we think about the use case of minimizing the time to go through a scan because we know it's not a pleasant experience. So we actually develop AI that increases the speed of a scan by three times. So they use MR, but they use MR with our smart speed AI functionality. So actually, so they can reduce the time that a patient has to go through the scanning.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“So healthcare predominantly still is also being provided for within hospital walls. But there's a big growth area which is ambulatory care, where actually people want to consume healthcare outside of hospital. Now, there's a player in the US, Prunuvo, who is going into that space of ambulatory imaging in particular. There's an imaging example. They have selected Phillips as their sole provider because they know that the segment they serve the people.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“The brand and what we stand for a clear meaning. And we make sure users of our brand of course take at heart what the brand needs to stand for. So if they continue to carry our brand, it has to stay for innovation. It has to kind of represent innovation. It has to be with quality. So there are clear rules upon which you can use it. And I will give you an example in healthcare how that actually really differentiates us.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Actually, I experience and I find that the brand that we carry, which has been loaded and built over 133 years, is a tremendous valuable asset. Because ultimately what people remember is the experience they had with a brand. And yes, that could be enlightening, that could be in radio, that could be in television, but over time you stay relevant if you build trust in a brand. So people have a certain connotation. Now what Phillips stands for at the highest level is technology and innovation. So what people remember what innovation they use, that's actually what Philips means to them. So if you kind of grow up and you got your first CD player or your first kind of radio or you got your first MR scan under a Phillips brand, that's something that sticks with you. And actually, the fact that we are using it still across segments, even when we spin out companies, actually still gives that umbrella.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Describing a pretty significant set of changes and how you think about focus, how you operate the company. As you've mentioned, Phillips is a very old company. The logo for Phillips is still on other parts of the company. They didn't spun off. The light bulbs still have the logo on them. How do you convince other people, consumers, healthcare professionals, patients, that the Phillips you're describing today is actually Phillips without all of the history and all the interconnected signifiers that logo being everywhere?”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“500 million or a billion or 100 million. Phillips is playing in 100 countries, but not every country is equally important. So also there, in terms of focus, you're going to say, okay, I'm going to make certain choices. Where can I deploy and support the system best in terms of kind of allocating my resources? So that's something that I very much hold at heart, that I want to do things well. And if you want to do them well also with quality at heart, you need to make certain choices.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“So, if you think about you need an image as a patient, we are the number one player in image systems, actually in a system that actually acquires the images, then disseminates them and put AI and insights on top. The same in monitoring, where actually when you need to measure patients, we're the number one in monitoring. And actually, we do that with a very significant software capability, AI capability, to actually measure patients, pull the data together, and then actually get the insights out of the data to actually serve these patients, but in particular also serve the health system in a better way by actually giving them meaningful data and don't overwhelm them with a massive load of data. So there is this combination, which is, I think, leading us, which is both focus as well playing at scale. And scale, you can also really translate into thresholds. You can say, okay, I'm not going to go after a business if the opportunity is not above.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“That I made when I became CEO actually is going after the fragmentation by saying when we innovate and the domains we play within healthcare, we need to be able to play at scale. So actually I've been stopping projects. I've been also stopping certain businesses to actually double down on the most attractive areas, but also in the areas where I believe we have the right to win and to scale. We focus on healthcare within healthcare it's still a very big space. We make choices that in the areas that we kind of are playing in, we scale. Let me give you an example. Informatics. Healthcare informatics is very important space. What is a very large space as well? So when we look at where we can provide a meaningful difference is in clinical informatics. So we are the number one healthcare informatics player in the clinical layer.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, maybe go in because I think it's indeed a very interesting area. And let me also clarify how I explain focus and scale, because I think we're going after both. So when I mentioned focus, it is, as we said and discussed before, we were a conglomerate that actually was developing technology that we were using to be successful in electronics, in chips, in healthcare, in lighting. Those are big different segments. So when I mentioned we decided to focus, we said, okay, we choose one of those which are in themselves big enough. So the healthcare segment that we look at is 100 billion market segment. So it's really sizable. It's growing and it has a distinct need where innovation needs to come to bear to actually help it function better. And then you say within that space, actually I do need to play at scale. And one of the changes”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Where does that push come from? Where's the tipping point come from where you say instead of what we need is scale and efficiency, we actually need focus, even if that comes with having literally the overlapping capabilities of two different companies.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Lot of what I hear about when I talk to executives at companies that are going through MA or trying to buy something is that in the market today, what you need is scale. Scale to go buy computing capacity from a cloud provider, scale to go by chip manufacturing capacity from one of the fabs, scale to go into market internationally because you can only hire so many software developers, scale, scale, scale. And you're describing focus, which is often the opposite of scale. We're going to take these companies, we're going to pull them apart, and we're going to have overlapping functions, like all the way overlapping functions, different companies.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“A lot of questions about that because so many tech companies see that as an opportunity, see that as a market. There's a lot of general, I would say, consumer confusion about what some of these numbers mean. And then there's the ongoing support. So I have a lot of questions about that. But I just want to stay on the structure for one more turn.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“We still said, I think, which is also differentiating in that is that we said, but we will not look at it through a traditional lens of healthcare being only taking care of sick people. We said we also will keep the trust of self-care. So actually, we are still active in the home because we believe over time and actually to load balance healthcare better, you need to start to take care of people in the home more. How can they take care of themselves? And if they then are in need of either measurement or diagnosis or an intervention, we can support them along that patient journey.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Innovation capabilities about bringing light to people in their homes. And then from that and the understanding that you have going into radio, going into television, but also going into healthcare already in the 1920s, we indeed grew to becoming a conglomerate in the 80s, 90s, early 2000s. But what has also become clear in the current world is that developments are going so fast in all these segments that actually from a need to serve them well as well as from a kind of a company perspective how you need to focus your resources to drive the biggest impact, there was a need to focus more. Actually, we were too fragmented in kind of where we were playing and all had distinct investment needs, all had very fast rapid environments accelerated with the digital transformation. And then actually you saw that you want to be successful and therefore you better focus.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Conglomerate that was innovating across multiple lines of business. You've been there a long time. You've watched the company kind of restructure, probably decoder listeners most famously associate Phillips with the Hugh Light Bulbs. That was the lighting division that got spun out into a company called Signify. You were there when that happened. Walk me through some of this process of taking the big conglomerate and turning it into lots of little pieces because here in the United States, mostly what we see is conglomerates getting bigger. Walk me through going through that process in reverse. That goes back to very much at the heart of who Phillips is, right? We are in a 133 year old or young company, depending on how you look at it. And the way how we have managed to stay relevant over all that time is indeed continuously also reinventing yourself where you can apply and deploy your resource in the best possible way to create value. And whilst we originate indeed from being a lighting company, having specific”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Significant increase in demand, the amount of patients keep growing, patients getting more chronic diseases, and they also age longer. So the world and every country has to deal with a big demand for healthcare, whilst at the same time we see a big tension as they are just not enough people to take care of these patients. So there's a tension area that innovation technology can really help in and that's actually where we have said we will put our innovation capability at Philips to work to an essence provide more and better care to the world. That is the opportunity you've identified. There is a lot of opportunity there. There's a lot of reason to innovate there. One of the things that strikes me about Phillips in particular is that it used to be a giant conglomerate, like a 1980s style.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“And at times, tense conversation. And I'm glad we had the opportunity to talk about this part of Philip's history in depth. All right, royal Philip's CEO, Roy Jakobs. Here we go. You are the CEO of Royal Phillips. Welcome to Dakota. Great to be here. Thank you for having me. Yeah, I'm very excited to talk to you. You have made a lot of very complicated, very high stakes decisions as you begun the process of changing Philips over the past few years. I want to ask about a lot of them. Let's start at the very start, though. Phillips is a very old company. It's had multiple identities. It has had multiple lines of business. It's spun out some very famous businesses. You're trying to change it, refocus it. What would you say Phillips is today? So Phillips is a health technology company. At heart, it's an innovation company. So what we're good at is solving problems in the world based upon our deep technology insights and capabilities. And what we have done over the recent years is that we have looked at which are the challenges that the world is dealing with, which we would be best catered for to support. As we know, healthcare is an area of major challenge.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“Breathed in by users, causing serious health issues. These ventilators were eventually tied to more than 500 deaths, whereas his predecessor stepped down in 2022 amid the scandal, that's when Roy became the CEO, and he immediately started a massive restructuring plan to rescue a company in crisis, including several waves of planned layoffs. But although Roy wasn't in the top job, he was with Phillips throughout the entire decade the faulty machines were being sold. There's reporting and court filing showing that Roy himself was involved in the decision to keep selling the defective machines, even though Phillips had received at least three thousand seven hundred consumer complaints during the eleven year period leading up to the recall. That's a pretty big decision, with literal life or death consequences, and you'll hear us talk about it in detail. It was not a comfortable topic, and Roy and I went back and forth on the nuances of how we made the choices he did. As well as whether the resulting scrutiny by the FDA and DOJ has changed how he makes decisions. This was a fascinating”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“off its own semiconductor business into what is now the very successful NXP. Basically, while every other company has been trying to get bigger, Royal Phillips has been pairing itself down to a tight focus on healthcare. Roy and I talked about that, and why that market is worth the focus, and whether European companies have a different attitude towards size than American firms. And of course, we talked about AI. Phillips makes complex diagnostic tools like those MRI machines and ultrasound systems, and there's a lot of interest in adding AI to these tools to help find medical issues earlier than ever. But I wanted to know how that actually works and what it takes to not only develop these tools, but also to put them in place with doctors and hospitals around the world. Roy and I also talked about a serious ongoing controversy at Phillips that he had a part in. In 2021, after years of consumer complaints, Phillips was made to recall millions of its breathing machines, including home use CPAP machines and hospital ventilators, because the foam used in them was deteriorating.”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT
“And welcome to Decoder. I'm Neil Patel, editor in chief of the Verge, and Decoder is my show about big ideas and other problems. Today I'm talking with Roy Jakubs, the CEO of Royal Phillips, which makes medical devices ranging from MRI machines to ventilators. Phillips has a long history. The company began in the late 19th century as a light bulb manufacturer, and over the past century in change, it's grown and shrunk in various ways. That famous light bulb business? Yeah, it was spun out into a separate company called Signify in twenty eighteen, which now makes and sells Philip's branded light bulbs like the popular hue line. There's an incredible history of this sort of thing at Phillips, which has had a hand in basically every part of the electronics business you can think of. This is the company that invented the cassette tape. It helps to invent the CD with Sony. It's made everything from radios to generators to electric shavers. It was even a founding investor in TSMC, which now dominates chip manufacturing, but it sold that stake in 2008, while also spinning”
2024-09-16 · Decoder with Nilay Patel · How Philips CEO Roy Jakobs is turning the company around after major recall · IDENTIFIED FROM THE TRANSCRIPT