August 15, 2014
Corporate Executive of the Year: Kenneth Frazier Shares Prescription For Growth
“He’s very good at knowing the right questions to ask so that we all focus on core issues and bring things back to how does this impact our mission. That’s the head part of it,†she says. “On the heart side, Ken has this amazing ability to connect with people at all levels of the organization and hold what I call intellectually honest discussions with them about how we should all be optimistic about the future but also realistic around some of the challenges. Finally, he’s just got this amazing amount of courage and candor. He’s not afraid to take on some of the really tough decisions.â€
Those leadership qualities have been vital to meeting “the synergy target†of $3 billion after the $41.1 billion merger with former rival Schering-Plough. After excising $3 billion of operational expenses, Frazier required senior managers to identify an additional $2.5 billion in costs by 2015. The key was candid communications with staff members about balancing cost-cutting measures with reinvestment in growth areas such as MK-3475.
Whether addressing company town hall meetings or making employee broadcasts, the energetic, enthusiastic Frazier pushes a culture built on “customer centricity‖aligning internal philosophies and processes with exceptional customer service. That’s evident in Frazier’s commitment to corporate diversity in talent development and succession planning. “If you think about it, this process of coming up with medicines and vaccines worldwide is essentially about the human condition, which is by definition a diverse human condition,†Frazier says. “Our job is to make sure that our internal workforce reflects the people that we serve around the world.â€
Frazier’s influence and reputation extend outside Merck, from the power players in global business to the corridors of the White House. “Ken’s passion for making a contribution to society by creating life-saving medicines is genuine and inspiring,†says Ian Read, CEO of Pfizer. “I respect him as both a competitor and a business partner, and as someone I collaborate with as leaders of our industry trade association and the President’s Export Council. I value Ken’s leadership in our industry’s continued effort to advance medical innovation and access to healthcare for patients around the world.â€
The Humanitarian Touch
Frazier’s passion to serve as a skillful change agent began to develop in his early years. Growing up in poverty-stricken North Philadelphia, he and his two siblings were raised by his father, Otis, after his mother died when he was 12. Along with civil rights leader Martin Luther King Jr., and the first black Supreme Court justice Thurgood Marshall, Frazier’s father, a janitor and former sharecropper, graces the top of his list of heroes. The elder Frazier instilled in young Kenneth the drive for education and excellence. Frazier didn’t disappoint his father: He graduated with highest honors from Pennsylvania State University in 1975 and from Harvard Law School in 1978.
For the next 14 years, the ambitious attorney would work at the Philadelphia law firm of Drinker Biddle & Reath, where he rose to become partner. He represented corporate clients that included AlliedSignal and Merck. The case that won Frazier the greatest praise, however, is the pro bono work he did that won the release of James Willie “Bo†Cochran who was wrongly convicted for killing a white man in Alabama. Cochran had spent 21 years on death row.
Find out more about Frazier’s career beginnings on the next page …