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Merck Sharp & Dohme

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The culture of Merck Sharp & Dohme (MSD) is one of transformation. In the early 1990s, as Argentina eased restrictions on trade and competition, a great opportunity arose for many companies operating in the country, including MSD. However, a legacy of corruption, ethics problems, and an employee mentality of accepting the status quo plagued many corporate cultures. This combination prevented stagnant corporations from developing into market leaders. To begin, Mosquera established a sense of urgency when communicating with employees. He not only spoke to employees about MSD’s potential for future growth and success, he spoke with employees to rally them around his ideas and asked, “Who is with me and who is against me?” and “Are you supervisors or are you managers?” Traditionally, supervisors were expected to take orders and not provide new ideas or suggestions; however, the new leadership of MSD’s Argentina division made tangible efforts to break the status quo for how supervisors and managers function. One of the biggest threats to implementing true change in any organization is employees who are resistant to change and who are not supportive of the new vision. In order to execute a fully integrated transformation, Mosquera hired new employees who shared his vision and values and removed employees from the old regime that proved to undermine the vision. As Mosquera cultivated his coalition of brand stewards, he could “point to a number of accomplishments” within his first year. This strategy correlates directly with Kotter’s Leading Change stage of planning for short-term wins, highlighting the idea that “most employees won’t go on the long march unless they see compelling evidence in 12 to 24 months that the journey is producing expected results.” Finally, the previous culture at MSD had not supported employee’s ability to grow either individually or professionally, as subordinates were expected to execute directives without question and promotions were awarded based on favoritism. Mosquera institutionalized his new vision for the company by instituting a training and development program, and requesting that employees at all levels participate.

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