Boston CollegeCarroll School of Management

Genzyme Corporation: Corporate Culture

Frank Ollington, Ph.D.

September 15, 2008

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Outline

• Personal Introduction

• Genzyme Introduction

• Genzyme description of culture

• What we say it is…how we (try to) describe it…

• Discussion...

• Wrap up

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Brief biography …at Genzyme…

Science

Diagnostics Operations

Therapeutics Operations

BU President - Pharmaceuticals

Corporate-wide Operations

Program Management

August 29, 1988 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - > August 29, 1988 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - >

? ?

Frank Ollington

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Genzyme - Our Global Corporation

• Founded 1981• >10,000 employees worldwide• Helping patients in nearly 90

countries• 17 manufacturing sites• 9 genetic testing lab sites• 16 major marketed products• 2007 revenue of $3.8 billion • 80 locations in >40 countries

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Our Focus

We develop breakthrough therapies

to meet unmet medical needs

We are committed to make a significant improvement

in patients livesWe are patient focused

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Our Revenue Growth

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

$

$ I

n M

illio

ns

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Our Major Commercial Units & Products

Thymoglobulin®

Renvela®

Renal

Renagel®

Fabrazyme®

Genetic Diseases

Aldurazyme®

Cerezyme®

Oncology/ Endocrinology

Synvisc®

SepraTM Products

Orthopaedics/Biosurgery

Carticel®

MACI®

Thyrogen®

Campath®

Clolar®

Transplant/ Immune Disease

Myozyme®

Genetics/ Diagnostics

Reproductive

Oncology

Infectious Disease

Cardiovascular

Hectorol®

Synvisc-OneTM

12 Products are no. 1 in their markets

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Awards and Recognition

• Consistently named a top employer by Sciencemagazine

• Rated one of the most generous in-kind givers in BusinessWeek surveys

• Named to the Dow Jones Sustainability World Index for the past four years.

• Genzyme Center recognized as one of the most environmentally responsible U.S. buildings

• Genzyme was named one of 2007’s most ethical companies by Ethisphere magazine.

• Awarded the National Medal of Technology

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A Proven Business Model

• Market leadership: high value clinical products

• Global infrastructure: vertical integration creates leverage

• Experienced organization: across all businesses/functions

• Diversified base: enables opportunities / reduces risks

• Strong pipeline: expanded indications, larger markets

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Drive

Innovation

Our Core Values

Entrepreneurialism

Integrity

Compassion

Collaboration

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Drive

Innovation

Some of Our Core Values

Entrepreneurialism

Integrity

Compassion

Collaboration

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A Defining Corporate Mission

Taking Care of Patients Globally

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Our Cultural Foundation

• Do the right thing for patients

• Never “give up”

• Exhibit courage

• Think honestly, flexibly and

outside the box

• Stay grounded, stay real

Ricky and FernandoFabry patients

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Our Cultural Foundation

• Hire great people

• Give them the room to “be great”

• Utilize the strength of the team

• Family feeling built on respect,

caring and success

• Build a sustainable company that we

will still want to work in

Aline Moreno, Regulatory Affairs

Genzyme do Brazil

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So why talk about Culture?

• We, Genzyme, define ourselves and our way of doing things through our Culture, not through rigid rules

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Our Culture

• Our Culture reflects our values and binds us closely together as one family with a clear focus, a common mission and a shared style.

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Our Culture

• Our Culture creates a multi-dimensional space in which each

of our great people (each of you) has the freedom and the

opportunity to think, act, lead, innovate, team, achieve, and

excel-- that is, to be great!

• But it isn’t really just an opportunity– it is a commitment we

make to each other – it is an obligation to the group.

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Genzymeness: Innovation

• Success results from Innovation

• Innovation is the result of Taking Chances

• Taking Chances requires:

• A Positive Nurturing Environment (CULTURE)

• GREAT PEOPLE determined to think and act

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Henri Termeer - CEO Genzyme

• “Everything we do is all about innovation, taking risks,

being first. Innovation is absolutely an attitude.”• Boston Globe 100: Executive Roundtable; May 2008

• “When we decide to do less risky things, when we

decide to take on small problems so that we can be

sure they’ll work, that’s the signal that we’re losing our

edge. We may still be a good economic enterprise,

but I think we lose our right to exist.”• Boston Magazine; June, 2008

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Genzymeness: Personal Commitment

• Success results from a personal Commitment to achieve Results• It’s not the process, it’s the result

• Find a way

• Think outside the box

• Demonstrate courage

• Never give up

• Etc, etc

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We Succeed By Strong Individuals Working As A Strong Team

• Someone (why not YOU?) must be a catalyst for action, must start a team

• Aggressively Collaborate

• Never Give Up

Using All Our Strengths

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Genzymeness: The Matrix

• Embrace and Harness the Matrix

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Organizational Matrix

"Authority to Conduct Business"

▲ ▲ ▲

Functional Units

Product Line 1 √ √ √ √

P Business 2

& ◄ 3 √

L ◄ Unit R&D Project 1 √ √ √ √ √

2 √ √ √

R 1 3 √ √

ES Product Line 4 √ √ √

P Business 5 √ √ √ √

O ◄ 6

N ◄ Unit R&D Project 4 √

S 5 √ √ √ √ √ √

I 2

BI Product Line 7 √ √ √

L Business 8 √ √

I ◄T ◄ Unit R&D Project 6 √ √ √

Y 7 √ √ √ √ √ √ √ √

3 8 √

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Genzymeness: The Matrix

• Embrace and Harness the Matrix

• Network like crazy

• Build and nurture relationships

• Don’t be shy

• Don’t be too proud

• Use it, don’t fight it

• Etc, etc

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Genzymeness: Personal Leadership

• Personal Pride is fundamental

• Personal Responsibility• Personal Discipline• Personal Initiative are critical components

• Personal Freedom increases as a result

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EXPAND YOUR PERSONAL LEADERSHIP STYLE AND SKILLS

• Nurture “Genzymeness”

• Understand the Culture

• Keep It Live, Help it Evolve

• Live the Culture Every Day

• Set an Example

• Apply It to All You Do

• Teach the Culture

• Don’t be Shy! Speak Up! Act!

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Achieve the “Impossible”

The Genzyme Way --

By Keeping The Patient As Our Guiding Light!

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• Right…

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Genzyme Culture

• What, if anything, does all that mean to you?

• What kind of people thrive at Genz?

• Benefits/upsides of working in such a culture – and the downsides…?

• How do you think the matrix organization affects Genz culture?

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• End

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“Tip Book” …If I had one recommendation

• Show confidence and belief in yourself • People do well at Genzyme when they can manage across the silos • Build relationships with “go-to” people in each area or function…not just your direct

contacts and the heads of the units…to get things done • Show your passion; we like inspirational leadership • Always take the high road and make the time for relationships; you will be here a

long time • Walk a mile in the other person’s shoes • Are you able to shepherd a project to success? This is key at Genzyme • What you do with and through others at Genzyme makes you successful here • Values are your compass when a decision is difficult • Always ask when given an assignment-- who are the three-five key people I should

reach out to. When you are asked to become involved, ask who else the person has spoken with…when you hear the names, you will be able to gauge the chances of success.