299 biotech companies went public between 1979 and 1996 in the US. Of the top executives of those companies, 81 came from Baxter International. Henri Termeer was one of them. How did Baxter’s culture breed exceptional biotech leaders?
1. Sink or swim.
Imagine that you’re a bright 28-year-old MBA graduate working for a top medical supply firm. Suddenly, on a Friday morning, you’re told you’ll be running a division in another country on Monday—with a flight booked for this evening. Sounds outrageous, right? But at Baxter, this was the norm. Young and inexperienced employees were thrust into positions of immense responsibility without warning.
William Graham, Baxter’s CEO from 1953 to 1980, believed in throwing his employees into deep water and seeing if they sank or swam. If anyone hesitated, Graham saw it as a lack of self-confidence, affecting their career path. Baxter expected its employees to solve problems, handle people, and manage crises.
By pushing them out of their comfort zones, the company instilled remarkable confidence in its managers. They discovered their ability to learn on the fly and thrive, no matter the situation.
“We developed tests for Chagas disease based on feedback indicating that it would be a big market,” Henri Termeer recalled. “Baxter asked me to head up this project. They said, figure out a way to set up the connections. That was a very Baxter thing to do…”
2. Learn on All Fronts.
Baxter exposed their people to diverse situations, offering numerous educational opportunities.
While other companies had narrow specialists, Baxter groomed managers with a broad knowledge base, making them versatile and well-rounded.
3. Seek Mentors and Uncover Your Blind Spots.
Managers paired neophytes with seasoned veterans to develop nurturing, mentoring relationships. New employees were encouraged to ask questions, recognise their own limitations, and seek the advice of more experienced individuals.
4. Ascend Together.
Baxter managers had to work hard and climb the ladder, or risk being let go. Despite Baxter’s highly competitive atmosphere, its managers shared an atmosphere of camaraderie and friendship.
In the 1980s, ex-Baxter managers gathered for “alumni reunions,” with over 100 attendees.In 1999, numerous Baxter alums joined a formal event celebrating Graham’s 80th birthday. Graham spoke proudly of those whose careers he had influenced so profoundly.
5. Always Create and Maintain Relationships.
A key aspect of Baxter’s philosophy was the cultivation of extraorganisational and government-based relationships. Also, unlike companies where people who leave are regarded with resentment, the top brass at Baxter maintained connections with its former employees. With only a limited number of senior management positions, Baxter’s leaders understood that turnover was inevitable.
They also realized that cultivating relationships with influential former employees would enhance Baxter’s eventual entry into the biotech industry.
Now… you don’t have to be like Graham or have a Baxter culture to be a great leader who fosters both personal growth and business success. What matters is crafting your unique leadership style and values. Because if you’re not you, even you won’t follow you. Having said that, qualities such as commitment, hard work, adaptability, resilience, relationship building, and resourcefulness.. are absolutely necessary, particularly in a biotech context; you have to instil them in your culture.