Read the Conversation
EF: What attracted you to Cardinal Health, and what mission did you set for yourself that you wanted to achieve in this role?
CM: I joined Cardinal Health in the middle of the pandemic and had to change my management style and abilities. We navigated through so much uncertainty during this time which led to me changing how I communicated with everyone in the company. Every employee had their perspective and their difficulties to overcome. Getting close to our employees was essential to realizing my people-centric approach.
My second mission was to align myself with my employees’ needs. Cardinal prides itself on being close to the team it works with. Aligning myself with their needs meant providing all the necessary resources and support to fulfill their responsibilities. Several people experienced different issues working from home, which is understandable. We discussed our associates’ work responsibilities, personal needs, and concerns in weekly meetings and provided support wherever possible, which included yoga lessons.
When the pandemic began, balancing work and life seemed easy. Time seemed more flexible and easier to navigate without commuting and coffee breaks. However, these times are just as important as work and family time because they are mental recovery periods.
My third mission was to prioritize short-term goals to deliver long-term goals. Every day brought some change and a new challenge to overcome. As a result, I learned to prioritize short-term goals. My last mission was to start from the basics. To be innovative, we must go back to the basics. Innovation motivates. To get different results, we must do things differently. We revamped during COVID to gain access to new markets and clients for growth.
EF: Could you elaborate on your portfolio and footprint in Mexico?
CM: Cardinal Health Mexico was established eight years ago. Before the pandemic, it was in the start-up stage. The business model in the US is different from our business model. The model in the US is more result and distribution-oriented, whereas, in Latin America, it is more commercialized. Cardinal Health Mexico’s portfolio was formed by acquiring different products from other major pharmaceuticals and some of our global portfolios. We built a commercial team with the products, which is why I believe we were a start-up.
Once I arrived, I began restructuring the policies and processes in place. We shifted towards a more result-oriented and strategic market approach. This is the first step towards expanding our footprint and success. We defined our portfolio footprint in Mexico at the focus and simplification stage. It is also the stage where we define our go-to-market model. Our main aim is to improve our market reach and profitability.
Mexico is a hybrid market with much room for growth. It has vast land, a large population, and a strong public sector. We are a hybrid market because of the split between the public and private sectors and the complexity of the market. The public sector dominates the market, with a 70% stake in sales. We have a dynamic hospital group for a company that does big medical technology with a significantly growing footprint. There are many opportunities for growth in Mexico. There are more opportunities, more competitors, and more access.
We are refocusing our growth acceleration to strengthen our portfolio, processes, and organization for the future. The key drivers of the healthcare sector are support, training, education, and generating demand and supply for our patients. The levels of healthcare are returning to pre-pandemic levels while we take on the learnings from the pandemic. It is the new normal. The principal priority in the healthcare sector should always be patient-centricity. We must keep being patient and people-centric.
EF: What are the advantages of having a local production footprint in Mexico? And to what extent is Cardinal Health leveraging this capacity to export to the USA?
CM: We have several manufacturing sites globally, but we have an added advantage in Mexico because we have four manufacturing plants. We have access to the inventory from these plants. The first advantage of local production is access and availability. We can quickly meet and supply any increase in market demand. Mexico is an essential country for Cardinal Health Inc. because of its commercial results and manufacturing footprint, making us one of the most important affiliates in the global group.
EF: Do you believe Mexico can become an innovative hub for Latin America?
CM: We are not only a medical devices technology company but in supply logistics. We had to learn how to plan for unforeseen supply and demand challenges. There have been supply chain and transportation constraints globally. We need new and innovative solutions to meet the demand and solve the constraints. Mexico is next to the largest market in the world, which is a strategic advantage. We must develop local solutions to meet patients’ needs and market demand. This is why manufacturing sites in Mexico are strategic. Cardinal Health has two other manufacturing sites in Latin America, meaning we have six plants in LATAM. This gives us a strategic and competitive advantage over the supply chain constraints.
Cardinal Health has many strategic partners, from raw material suppliers to logistics transportation partners. We have been recovering, though we still have some gaps to fill to become fully operational in supply chain management. One of Cardinal Health’s best characteristics is its transformation ability. During COVID-19, Cardinal transformed its supply chain processes and approach to supply chain management.
The customer-centric approach has accelerated since the pandemic. It has brought together several collaborations. It is always about putting the customer at the center of all operations. Customer-centricity is more than a strategy; it is a mindset and a culture.
EF: How do we assess the adoption of the latest technologies in Mexico, and what can we do about it?
CM: We have some of the latest technologies and the best healthcare professionals. COFEPRIS is a key bottleneck to several organizations because technological innovation and development evolve faster than the regulatory registration process. The framework is there for everything to happen. Mexico is strategically placed in LATAM and, as such, should be the first to have the innovation and technology from the USA. Mexico also has many medical tourists looking for the most advanced clinics and hospitals. Mexico’s population and economy are one of the biggest in the world, and both are in the top 15 global rankings. We have the financial capacity to create and get the latest technology. We also have many manufacturing plants that can produce the latest technology.
EF: How would you say you attract the best talent in Mexico? How do you engage and inspire your employees?
CM: We are always observing the latest trends. We implemented some of the most important trends in our organization, diversity, and inclusion. Our employees are very important to us. We listen to what they say and are always looking for ways to get them involved in decision-making. Diversity and inclusion are a mindset. We incorporate people into our organizational culture and change their perspectives. Influence comes from good and visionary leadership.
Cardinal Health has an international business model that includes all countries and affiliates. We have a platform that allows open communication between all the relevant leaders and decision-makers in all the affiliates. There is open communication between us and top management, which is rare. People are motivated when they can openly communicate with top management and are involved in decision-making. Everyone yearns to be respected for who they are and heard. We fulfill all this and more which is why we can attract the best talent. It is truly magical to see.
We empower people rather than overpower them. We ensure that the people who work with us feel that they are a part of what we do. We promote a culture of empowerment, respect, and inclusion; this is why we have a high employee retention rate.
EF: If you had to create a start-up company in the Mexican health sector tomorrow, what would you create and why?
CM: I would create the same company as I am in right now because I had the opportunity to transform the affiliate and transform minds. I have a winning team. We share a clear strategy and goals with all the relevant stakeholders. We are future-oriented and transforming since the transformation is a lifetime process. As new trends and challenges arise, we will continuously change our strategy and mindset. Currently, different trends are popular, like telemedicine, e-commerce, and retail opportunities. We are open to using the hybrid business model that follows the latest and traditional commercial sales trends. We are working on our portfolio and segmentation in every aspect of our business. I would keep these principles and business structures in a new start-up.
EF: If you had to do a speech for all your co-workers celebrating eight years, what would your message be?
CM: I firmly believe in remembering the past to understand the present and dream about the future. The foundation and our past is our first year. That foundation has brought us to where we are today. We should envision what we will achieve in the next decade because there is no limit to what we can achieve. At the end of your professional career, the one thing you always take with you is what you did for everyone around you. It is the one thing I will take as I retire.
EF: Do you have any final message for us?
CM: I see myself as a talent-oriented manager. I can describe myself in two words: dreamer and executor. Every day I go to Cardinal, I execute my dreams, the company's dreams, a patient's, and our customer’s needs. That is what I am passionate about.
