E N GAG E D E M P LOY E E S
Q&A

2 0 2 0 I M PAC T R E V I E W

Q&A

You Build the Team &the Team Builds the Business

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrWITH:

M O D E R AT E D BY:

Chris Smith & Mindy Mackenzie

Meg Starr

CEO of Ortho Clinical Diagnostics

Global Head of Impact, The Carlyle Group

Chief Performance Officer, The Carlyle Group

Impact Themes
Our Impact At Carlyle
GRI Disclosures

25

E N GAG E D E M P LOY E E S
Q&A

2 0 2 0 I M PAC T R E V I E WA fireside chat with Chris Smith, CEO ofOrtho Clinical Diagnostics, and Mindy
Mackenzie, Chief Performance Officer, The
Carlyle Group, moderated by Meg Starr,
Global Head of Impact, The Carlyle Group
Chris leads Ortho Clinical Diagnostics, a leading
global provider of in vitro diagnostics, and a
Carlyle portfolio company.

You Build theTeam & theTeam Builds
the Business26

As Chief Performance Officer of Carlyle’s
global corporate private equity portfolio
companies, Mindy’s mission is to help accelerate
performance – whether by presenting atcompany leadership conferences to bringanother lens into how individuals can unlock
their performance and impact, or by partneringwith CEOs on other strategic talent andorganizational issues.
Chris and Mindy have worked collaboratively
to maximize organizational, operational andleadership effectiveness at Ortho. The following
conversation offers an inside look at theseefforts along with rich perspective on what it
takes to drive a high performance culture within
an organization.

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrImpact Themes
Our Impact At Carlyle
GRI Disclosures

E N GAG E D E M P LOY E E SQ&A

You Build theTeam & theTeam Builds
the Business

27

MEG

HR can sometimes be bucketed as afunctional part of a business model –how do you think about people andculture as part of your business strategy?

CHRIS

At the end of the day a leader builds a team,and then the team builds a business – so it all
starts with people. One of the first things wedid at Ortho was change the nomenclaturefrom “HR” to “People and Culture” because if
you start with people and culture, then thebusiness flows from there. I have been lucky tohave a fantastic partnership with our Headof People and Culture, Gary Passman. Youneed a great partner because as CEO you’remaking tough decisions all the time when it
comes to people, and you need a person tobe transparent and honest with you.

M I N DY

There is a term in the market called a“golden triangle,” which I think is spot on.
Well-run, well-performing companies which
work for all stakeholders have a reallystrong CEO, CFO, and human capital leader
working together. Those three enterprisewide leaders form the cornerstone of thecompany, which you then build the teamaround. The CFO and human capitallead are the independent advisors thatare looking company-wide and serve as
counselors to the CEO. Together that strong‘golden triangle’ leads to better results,
because they bring three distinct lenses oncompany performance – and the alchemy ofthat combination is really powerful.

MEG

CHRIS

How do you build a strong culture,
particularly in an organization
as large and as global as Ortho,
which has operations in over 130
different countries?

2 0 2 0 I M PAC T R E V I E W

I can’t do it alone, but I can do it with myleadership team. We have a G-100, or our
top 100 leaders globally. Getting this groupto agree on four things – mission, culture,strategy and execution – is key, then it is
all about high levels of communication andtransparency. When people understandwhere the organization is going and why,then it becomes a brick on brick process.
We have to celebrate wins, be transparent
on challenges, and have the mindset of“there’s no bad idea.”

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrImpact Themes
Our Impact At Carlyle
GRI Disclosures

E N GAG E D E M P LOY E E S
Q&AYou Build theTeam & theTeam Builds
the Business28

MEG

If you put all of these approaches in placeso that employees feel empowered – theyknow where the organization is going andwhy – how have you seen CEOs effectively
think about engaging employees in themission of organizations, as opposed tofeeling like they’re just clocking in and out?

M I N DY

Companies underestimate how important
two-way communication is – it’s not enough tohave CEOs transmitting messages one-way outto employees through emails and town halls
and power points. How are you listening in real
time? We live in a society where people are
instantaneously providing feedback in every
area of their life, but then they get to workand no one is asking their opinion or taking
input, certainly not in real time so that they
can metabolize that input and influence thedecisions of the company. There need to belistening mechanisms so that there is an ethosof “you spoke, we listened – even if we don’tagree.” Another point is that mission alone isn’t
enough without educating your organizationon the financials. It is critical to teach your teammembers how to ‘follow the dollar’ so thatthey understand how a dollar of revenue flows
through the organization, and their function
specifically. It’s leadership’s responsibility
to educate so that team members canunderstand the context they operate in andunderstand that they can make a difference.
Then they can get excited about the corporate
mission and excited about delivering profitable
growth. That is the magic – leadership has tobring folks along on the total journey.

CHRIS

I totally agree that little things start to add
up into big things. As mentioned earliertransparency and communications arekey. So walk the manufacturing floor or
the office hallways, every week, talk to theteam – it won’t take that long to say hello
to everyone – and call people teammatesor colleagues not employees. Instead ofasking people to raise their hands at theend our town halls if they have a question(this was early on and pre-COVID), we put
an index card and pen at every seat andask people to write down their questions
and put it in a basket. In front of thewhole group read the questions and startanswering them – no matter how hard
they are. After doing that two or threetimes people start to have a sense that
there is transparency. Sharing information
on financial performance is key for
employees to understand how and where
they contribute to the company’s growth,and how the company is performing.

2 0 2 0 I M PAC T R E V I E W

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrImpact Themes
Our Impact At CarlyleGRI Disclosures

E N GAG E D E M P LOY E E S
Q&AYou Build theTeam & theTeam Builds
the Business

29

MEG

Chris, what has Mindy taught you thathas been most surprising?

CHRIS

Earlier this year we had our annual
leadership meeting, which was focused on
the future strategy of the company and key
initiatives as well as financial results andsome pretty intense topics – and we asked
Mindy to attend to present on leadership.
Mindy’s whole talk was about if you’re not
a complete person then you can’t do yourrole, and you can’t lead people. You haveto balance and center yourself. It helped
us realize that if you’re not doing all of theintangibles, you’re not going to get to thetangibles. She spoke to our G-100, our top
100 leaders across the globe, who each thentook the skills Mindy taught them back totheir direct reports. As a result, you quickly
had hundreds of people around the globe
practicing these approaches. Some of thesimple suggestions were so powerful, forexample try asking the people who report
to you how they view your relationship ona 1-10 scale on a regular basis. You’d besurprised how much information comes fromthat question.
Some of our team mates had the perceptionthat private equity doesn’t care about thepeople in the organization, which can create
an “us against them” mentality. Mindy’s wholepresentation was about the person, thehuman being. Having a senior executive at
a global investment firm advocating thoseconcepts makes a real impact. Our teamknows that we have to deliver financially,
but in order to do that we have to get thehuman side of the business right, To me, thatconcept is very different from the typicalperceptions of private equity.

MEGM I N DY

How should investors think abouthuman capital as an asset in its
own right?

2 0 2 0 I M PAC T R E V I E W

As Chris said, if you get the right team inplace, they deliver the business for you.
Your people deliver the financial value.
There is a maturation curve that private
equity is on to understand that valuing
and engaging the human asset is equallyimportant as how you manage the financial
assets of the business. It’s the combinationof those two things that yields results. If you
over-index to one or the other, you end up
with subpar performance. Private equity iscatching up on that.
When I interviewed Chris for the role of
CEO at Ortho, what struck me was that hiswhole philosophy was about the people,
the culture, and the environment he sets
up to drive performance in a business.
There is no perfect CEO – it’s about having
a philosophy that can fit the puzzle pieces
together to deliver performance forshareholders and for team members.

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrImpact Themes
Our Impact At Carlyle
GRI Disclosures

E N GAG E D E M P LOY E E S
Q&AYou Build theTeam & theTeam Builds
the Business

MEG

Chris, Ortho has been on the front linesof the COVID-19 crisis. How has thiscrisis affected how your leadership teamshows up for your people?

CHRIS

We are an 80-year-old company that has
a long history of leadership in infectious
disease. We saw the impact COVID-19 was
having on our revenues in China quite early,
so we were working hard to understand how
it would affect our business. I had hired anew Chief Innovation Officer three to fourweeks before the virus hit the US significantly,
and he had been walking the halls talking toour researchers, some of whom have beenwith Ortho for decades. Paul Contestable,
one of our principle researchers who has
been with Ortho for 35 years, was theperson to identify that he thought Ortho
could develop an antibody test. From thatmoment, it took 19 days until we submitted
a test to the FDA. We believe it’s the mostaccurate test on the market – it is theonly test with 100% specificity and 100%
sensitivity – and Paul is the one presenting
our work and progress to our Board in a few
weeks. Developing the test mobilized theentire organization for this higher purpose,
put wind in our sails and help enhance theorganization’s confidence in the businessgoing forward It’s challenging because wehave to execute, but it’s humbling for us to bea part of the solution, and part of getting
the world back to work.

M I N DY

CHRIS

Chris you dug for the knowledge, elevatedthe person with the expertise, andhighlighted and celebrated that person’scontributions – that is how you walk yourtalk around people, culture, and results. I
love it!

2 0 2 0 I M PAC T R E V I E W

You build the team, and the team builds
the business. If you get that right, in anunderserved market with the ability to grow,then the people will lead you there.

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg StarrImpact Themes
Our Impact At Carlyle
GRI Disclosures

30