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Aaron Falcione
Executive Vice President & Chief Human Resources Officer, ORGANON & CO

Actionable Advice with Aaron Falcione (Organon) | S4E11 | JKLAdvisors.ai

🎥 Sep 17, 2024 📺 Growing your business with People ⏱ 11m 👁 72 views
businessleadership #leadership #management Aaron Falcione emphasizes the importance of culture in mergers and acquisitions ...
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About Aaron Falcione

Aaron Falcione, Executive Vice President and Chief Human Resources Officer at Organon, discussed the role of culture in mergers and acquisitions and the company's approach to return-to-office policies in two September 2024 podcast appearances. In the first appearance, Falcione stated that people "make or break a deal" and that failing to address urgent people issues in M&A reduces the probability of capturing deal value. He said that in a transaction, the first question employees ask is "Will I have a job?" and that senior executives often want to start with vision and values, but must first address basic security concerns. He described walking away from a deal due to a "fundamental cultural misfit" and later acquiring the same company from a position of strength)Skip In the second appearance, Falcione described Organon's return-to-office strategy, which he said guides employees to be in the office two to three days a week with one anchor day for cross-functional collaboration, rather than mandating attendance. He said the company was "vulnerable" in acknowledging it did not have a solution that would satisfy everyone)Skip He cited solidarity with essential workers who showed up during COVID, community obligation to local businesses in Jersey City, and the disproportionate impact of mandates on women as factors in the decision. Falcione said that when the initial strategy was announced, employees "threw up all over it," and the company listened and course-corrected. He added that "sometimes as a senior leader you just have to eat a little humble pie."

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Transcript (7 segments)
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Interviewer0:00
Well, you know, it's funny. This brings us to kind of our last topic. We've had an awesome conversation, but one of the conversations that we had beforehand, Yumi and Sandra talked about, is that a decision that a lot of companies are going through right now: the return to work policy. Oh yeah. And how difficult that is, and that actually tests an organization, their values, their purpose, and it tests the senior most leaders of organizations at times. You shared with us a story. I'd love for our audience to hear a little bit more about this because I think it's very illustrative of exactly the things we just got done talking about.
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Aaron Falcione0:49
Yeah, it's a great point. It is. Everyone's wrestling with this, right? And it starts, we did lean on our culture and those behavioral standards a lot in not so obvious ways. When I think about it, first we were pretty vulnerable. We had an ongoing dialogue with our founders. We basically said we don't have the answer, no one does. So I think we started to set aside this notion that there is a solution that's going to satisfy everyone. We dispelled that. We talked about what we wanted. We valued in-person collaboration, we valued human connection. We believe that yields more innovative, creative results. As a company, we need to be performing at our best, so we believe that some degree of human connection and collaboration in person is essential to our success. We listened to our founders, we heard their feedback around the challenges, the struggles of getting into the office, the commute, the logistics of it all. And we landed in a place that we thought was balanced, and we were wrong. The truth of the matter is, we got it wrong at first. We sent a note out announcing our new return to office strategy, and our founders threw up all over it. They just said, 'What? No, this is terrible.' And we listened, and we said, 'Okay, hang on, let's have a dialogue. Let's share what we were thinking and why, and let's recalibrate and course correct.' And we've done that, and we've landed in a place that I think generally speaking, the majority of our founders feel really positive about. Another really important part of the dialogue, again, we did this all through kind of co-creating our approach with our founders. We talked a lot about this in open forums. There are other considerations that influenced our decision. Our strategy right now is we guide the organization. We'd like people to be in the office two to three days a week. We have one day of the week that we say is our anchor day where we really encourage people to come in on Wednesday so they can have cross-functional collaboration. We allow flexibility of coming and going times. We've created all kinds of hopefully attractive amenities to try and make that a positive experience. And we just guide to it and really encourage. I invite people to the office instead of just hope they come. We do things to try and encourage that in-person collaboration and make it a positive experience when they're here. But the other factors that we talked a lot about in order to encourage people to come into the office, to break this issue down: first of all, we know we're a global organization. About 75% of our employees live and work outside of the United States. This hybrid office issue and the return to office issue is most acute in US knowledge worker based, office-based people, where we have the luxury in the US of having generally nice accommodations, comfortable home offices. That's not always the case out around the world, where the space is limited, you often live with extended families, you don't have the same comforts that we have here. So it wasn't as acute around the world. So we kind of talked about that, that's one dimension. The other dimension is we have a manufacturing presence. We have six manufacturing plants around the world. These are heroes in my mind. These are people that showed up to their workplace every single day in the height of COVID, when we didn't know what was happening, we were washing our food and sanitizing ourselves even just by going outside the house. It was really scary, and these people showed up at their workplace every day. So let's have some solidarity with those people, because I marvel at them and I appreciate them and all of the essential workers that helped keep our world going during that time. And the last piece of consideration is we also have a sense of communal obligation, community obligation. We as a new company put down roots here in Jersey City, where I'm talking to you from. We made an investment in this community. We set up office space. There are proprietors, coffee shops, dry cleaners, pizza places, maintenance workers who are here because we're here. And if we don't show up, we just stop showing up. I don't think that's necessarily meeting our obligation to the community. So individually, none of those reasons are maybe fully sufficient to drive people back into the office, but taken collectively, I think it's helped us reposition this from what could be an adversarial dynamic with our workforce to one that's much more collaborative, much more understanding, and I think supportive of spending time together. And again, not losing sight of the importance of just good old-fashioned human connection, which I'm afraid is becoming more and more rare these days. And we don't want that to be a defining feature of our company. We want human connection to be the defining feature, not distance. It also kind of goes back to your point of treating your employees like human beings, which sounds simple, but it is the collaboration, the discussion, it's not the mandate that was handed down, which is what I think a lot of companies are facing right now. So I think that's an important point. And we just really tried to emphasize that. I can't say what's right for every one of our 10,000 founders. They have to decide that for themselves. There's also a diversity dimension to this. We know that our company is founded on a premise and a purpose to improve the health of women everywhere in the world. It's our focus. We are a women's health company. The disruption that happened during COVID disproportionately affected women. The disruption to the childcare infrastructure is still reconstituting itself. Women still in our society bear most of the responsibility for child raising. So forcing people back into the office had a disproportionate impact on our women and the women in our workforce. And we said that's not okay, that can't be. So there are lots of good reasons not to mandate this, but to guide. And I feel really good about where we've landed. Thankfully, we have a lot of people that come to the office voluntarily, and we don't need to mandate. We've kind of inched our way to a new pattern of in-office behavior, and we're just fine with that. And as a senior leader, sometimes you just got to eat a little humble pie. Let's just be honest here. It's not easy whenever the thing that you think is the right thing is absolutely rejected by your team. And having had that happen before, I know the initial response is almost anger. Like, 'Hey, what do they know?'
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Interviewer8:27
Yeah, sometimes in your moment, after you get past that first, don't write an email or communicate with anybody when you're in that state. Keep that to yourself. Be solitary like an oyster in that moment, and then go back out and say, 'Maybe I don't know what they know.' They might not know what I know, that's fine, but have I shared it? Do they understand and appreciate my perspective? And am I willing to take on and understand and appreciate their perspective? Like you did. And I think that's the give and take, the listening here that really brings all this together. We have to be not so proud that we're not willing to hear and listen to each other and take on each other's perspective. It's one of the leadership attributes that I value the most, which is humility.
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Aaron Falcione9:21
Yeah, we want people that are eager to learn it all, not necessarily know it all. It sounds simple, but it really is a characteristic that we look for a lot. I had a conversation with a former colleague recently whose company has mandated in the office. This is a person who had been going to the office for the last year, four days a week. So she's already there. The moment they mandated it, she expressed what could be best described as resentment. It didn't affect her behavior, it didn't affect her in-office presence, but the very fact that someone mandated it was almost audacious. 'You have to tell me as a grown adult that I have to come in?' It just had such a negative impact. And I wish more companies could sort of find a better path to this. Again, every company has its own challenges with this and they're finding what's right for them, so I don't want to be too judgmental. I know where we landed is right, but I also think the ripple effect of this will be felt by companies for a long time to come.
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Interviewer10:26
Well, thank you so much, Aaron, for this time. Thank you for joining us on Growing Your Business with People. Thank you so much, Sandra, for being an amazing co-host and introducing Aaron and myself. And to our whole audience here, what an amazing show. We talked about M&A, the culture of M&A, culture and impact on business as usual, startup culture, and then we even talked about return to work. I was thinking about going on to bigger like world hunger, but we'll save that for podcast number two. We got enough here. You got to get to your four o'clock. But thank you very much, Aaron, for joining us, and thank you, Sandra, for being here.
S
Sandra11:08
Thank you. It was a pleasure. Great to see you, Sandra.
A
Aaron Falcione11:09
Thanks, Jeff. Great to see you, Aaron. Thank you so much. Okay, ciao.