Kevin Lobo, Stryker: The $1.6B Bet That Changed an Industry

What does it take to back a decision that may take years to prove itself? Soon after becoming CEO of Stryker, Kevin Lobo backed a $1.6 billion acquisition of Mako, a loss-making robotics company many customers, investors and industry experts believed was unnecessary. The deal would reshape both orthopedic surgery and Stryker’s growth trajectory. Join host Jimmy Allen of Bain & Company as Kevin explains why he saw asymmetric upside in robotic-assisted surgery, how he sustained his conviction through disappointing early results, and how one bold bet became the foundation for a repeatable acquisition model spanning more than 60 deals. Kevin and Jimmy also explore the tension between autonomy and scale. How do you capture the advantages of size without inviting bureaucracy? What should remain decentralized, and where can shared capabilities create a real edge? This is a conversation about repeatable growth, the cost of complexity, and the CEO’s role in helping leaders think like founders. https://www.bain.com/founders-mentality/ LINKS Ask for Help - Jimmy Allen - Blog [https://shorturl.at/qvzxe] Bain & Company LinkedIn [https://www.linkedin.com/company/bain-and-company/] Bain & Company X [https://x.com/BainandCompany] Jimmy Allen LinkedIn [https://www.linkedin.com/in/james-allen-3442b/] Kevin Lobo LinkedIn [https://www.linkedin.com/in/kevinalobo/] (00:00) - Introduction (01:35) - The potential in robotics that no else saw (02:27) - Taking the $1.6 billion proposal to the board (03:28) - Why Stryker had to act immediately (05:48) - The hard part begins after the board says yes (06:36) - Telling Wall Street about the slow first quarter (08:05) - Leading through the time lag (08:32) - Winning over employees and building M&A credibility (09:37) - Cold-calling Larry Culp, former CEO of Danaher, for advice (10:18) - Turning mistakes into an integration playbook (11:16) - Discovering the "Stryker way” (13:09) - Are you the right parent for the company you acquire? (15:12) - Building a repeatable acquisition machine (17:09) - The outer game and inner game of growth (18:14) - Preserving autonomy across 22 business units (20:21) - Good complexity versus bad complexity (21:00) - What is the CEO's job in a decentralized company? (22:52) - Creating a team of entrepreneurs (24:18) - The real meaning of conviction About the Host: Jimmy Allen is an Advisory Partner at Bain & Company with over 35 years’ experience advising leading organizations. He’s the author of multiple best-selling books on growth and leadership and the host and founder of Bain’s Global CEO Community Forum. Jimmy is a regular speaker at global business events, including the World Economic Forum, and serves on the Botswana Economic Advisory Council. Outside of consulting, Jimmy started his own record label [Abubilla Music] in 2008 and supports Singing Wells, a project dedicated to preserving Kenyan village music. Bain & Company: Founder’s Mentality: The CEO Sessions is brought to you by Bain & Company, a global consultancy trusted by the world’s most influential business leaders. With decades of experience guiding organizations through growth, transformation, and leadership development, Bain’s executive insights offer what it takes to lead at scale.