CareFusion Sidebar:
CareFusion Culture
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David L. Schlotterbeck, chairman and CEO of CareFusion Corp. (CFN), knows just how important culture is to the success of a company. Schlotterbeck says that when he joined Alaris in 1999, the company — acquired in 2004 by Cardinal Health Inc. (CAH) — had a very unhealthy culture. “The culture was so oppressive that people didn’t want to take any chances; they didn’t want any visibility,” he recalls.
Schlotterbeck says that he and his executive team set out to change that mindset and, after 3½ years, were successful. He points to a rise in Alaris’ stock price, from 32¢ in 2001 to $22.35 in June 2004, a return of nearly 7,000 percent. “That’s what really convinced me that culture is probably the biggest lever that executive management has to improve performance,” says the CEO. Schlotterbeck says that although CareFusion doesn’t have the problems Alaris did, he has been focused on improving the company’s culture. The first step, he says, was assembling a set of beliefs, which includes items such as teamwork, excellence, putting the customer first and accountability.
Schlotterbeck says that since last summer, CareFusion has trained 12,000 of its 15,000 employees in how to live those beliefs. “It’s in-person for two days,” he says. “This is what accountability feels like; this is why you are more powerful as a team than as an individual; this is what excellence feels like; this is how you put the customer first.” The CEO adds that CareFusion uses a common language that helps change the dynamics of workplace interactions. For example, one of the phrases CareFusion employees are encouraged to use is “Be here now.” “Just having that phrase, if you see somebody and his or her mind is wandering, you say, ‘I need you to be here now,’ ” Schlotterbeck explains. “All of a sudden, they get it. They know exactly what you’re saying, and it’s a nonthreatening, positive way to get people engaged.”
