from fixing basics to shaping a culture change- hr team in motion jennifer jinvictoria wu head of...
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From Fixing basics to shaping a culture change- HR team in motion
Jennifer Jin Victoria Wu
Head of Human Resources Head of Talent Management & Organization Development
Novartis Pharma China Novartis Pharma China
The Journey
About Novartis
Background of HR Journey 2004 ~ 2010
HR Evolvement 2004~2010
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About Novartis
Headquarter: Basel, SwitzerlandLocation: operate in 140 countriesEmployment: approximately 102,000 associates worldwide
2009
USD billion
Net sales:
44.3
Net income:
8.5
R&D investment:
7.5
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Our mission
We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering, and to enhance quality of life.
We also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in our company.
Our purpose is to care and cure. We provide medicines to treat and prevent diseases, ease suffering and improve quality of life.
Our focus is on patients
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Fortune: “World’s Most Admired Companies” Novartis #2 in pharmaceutical industry 2009
The 10 most admired pharmaceutical companies1
1 Based on the evaluation of senior pharmaceutical industry executives and financial analysts on a scale from 0 (poor) to 10 (excellent) on nine criteria: community/environment, financial soundness, globality, long-term investment, innovation, management quality, people management, products/service quality and use of assets.
In 2009, Fortune merged the US and international versions of this ranking. The 2009 results of non-US-based companies therefore include ratings from US executives for the first time.
2 The print version of the article contains only the top seven companies in pharmaceutical industry list.
2003 2004 2005 2006 2007 2008 2009 Rating 2009
1 Pfizer J&J J&J J&J Novartis J&J J&J
2 BMS Pfizer Novartis Novartis J&J Novartis Novartis
3 J&J Eli Lilly Eli Lilly Abbott Roche Merck Abbott
4 Merck Merck Abbott Amgen Eli Lilly Abbott Merck
5 Eli Lilly Novartis Pfizer GSK GSK Eli Lilly GSK
6 GSK GSK GSK Eli Lilly Amgen GSK Amgen
7 Novartis Abbott Amgen Roche Abbott Roche AstraZ
8 Pharmacia AstraZ Roche AstraZ Wyeth Amgen Eli Lilly2
9 Wyeth Roche AstraZ Wyeth SanofiA Wyeth Wyeth2
10 Aventis Aventis Wyeth Pfizer AstraZ Astraz Boehr. Ing.2
7.31
6.78
6.67
6.48
6.47
6.18
6.03
5.89
5.68
7.05
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Novartis Pharma products covers 9 therapeutic areas in China
OncologyMetablismCardia-Vascular
Infection Disease Transplantation Antirheumatic/Pain
Osteoporosis Ophthalmic Central Nervous System
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The Journey
About Novartis
Background of HR Journey 2004 ~ 2010
HR Evolvement 2004~2010
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2004 Basics are not there for HR organization
No long term talent management strategy Little impact on organization culture
Employees are still concerned about how their payroll is processed and benefit is managed at very administrative level, not yet raising questions on career progression
Very low-tech process handling payroll, employee data management, no formal change status process, lack of consistency
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No business partner concept, small HR team Limited regional HR to be closer to customers No exit interview to understand what is the reason of
turnover (pharma industry historically has high turnover)
Customer does not trust C&B benchmarking Reactive hiring
Business ambitions for Pharma companies, including Novartis
The market growth (IMS data) shows the market will grow into the number 5 market in the world following US, Japan, Germany and France
Novartis, among other MNC big pharma companies, strives to become one of the top companies within 5 years, which has embarked ambitious growth target since 2005
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2002 Top 10
USA 196
Japan 53
Germany 20
France 19
U.K. 14
Italy 13
Spain 9
Canada 8
Mexico 8
China 6
2005 Top 10
USA 262
Japan 65
Germany 24
France 21
U.K. 16
Italy 15
China 14
Brazil 10
Canada 10
Spain 10
2010 Top 10
USA 466
Japan 81
Germany 37
France 28
China 24
U.K. 24
Italy 23
Canada 17
Spain 16
Brazil 15
Estimated Market Size for Ethical & OTC Drugs in $ bioSource: BCG analysis
With the growth ambition, the business model and external competitive landscape also evolving
Field Force (Core Selling Model)Field Force (Core Selling Model)
Marketing and Medical Marketing (Integrated Selling)
Marketing and Medical Marketing (Integrated Selling)
Stkholders Mgmnt
Stkholders Mgmnt
11
22
33
80’s 90’s 00’s
Complexity and cost
Continued industry focus on Emerging Growth Markets from all MNCs
Changing of selling model
Continued increased regulatory scrutiny on safety issues, delays in approvals of new drugs
Increasingly competitive deal environment for M&A
Growing competition for Top Talent
Implications to how HR shall be organized• Tier 3 & 4 cities • New skills in Medical and central Marketing, KAM, new product launch skills• Number of managers/leaders• Communication and coaching skills of line managers• Change management skills• Building high performing teams• and more......
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Three Strategic Imperatives to Capture Growth Opportunities since 2005
Strategic Imperatives
Growth/Innovation Productivity Talent
Investing in the right Portfolio, Customers and Markets to Maximize Growth
Improving efficiency of Support Functions, having strong process / systems to increase automation
Ensuring we have the right People, Structure, Culture and Capabilities in our in organization
High Level
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The Journey
About Novartis
Background of HR Journey 2004 ~ 2010
HR Evolvement 2004~2010
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2007~Onwards
Strategic Impact
A journey of HR functional growth
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2005~2007
Partnering
2004~2005
Fixing Basics
Identify gaps in HR. Basics in:
compensation benchmarking
benefit administration
adding hiring function
communication with line managers
Establishing HR Partnering with Business
2007~Onwards
Strategic Impact
2005~2007
Partnering
2004~2005
Fixing Basics
Adding Regional HR manager role as HR business partner
Upgrading HR functions by self-assessing capabilities in all areas: Road to
Excellence
Adding more efforts in talent development (BiMBA programs, e-learning platform),
strategic staffing and sourcing programs (Sailing program), etc.
Growing FCT with business models and organization changes
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Wherever you go, whatever you do, e-Learning will be
right here waiting for you……
HR Head
Regional HR Mgr
Regional HR Mgr
Regional HR Mgr
Regional HR Mgr
Functional HR Mgr
Functional HR Mgr
Functional HR Mgr
Overall Performance Rating for HR Function from CEO by 2007
•Highly Custormer Oriented
Strong Points:
•Hiring capability- Need to be more consistant, in effective sourcing pool, lack of assessment tools
Weakness
•Deep Involvement in Feildforce Operations
•Developed Comprehensive Local HR programs to Support
•On-boarding system/integration to the company poor
•Talent management with deep business impact (normal things are due, but not very engaged in business and follow ups)
•Strategic planning on HR structural process , people capability etc.
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Establishing HR Partnering with Business
2007~Onwards
Strategic Impact
2005~2007
Partnering
2004~2005
Fixing Basics
Strengthen staffing capability to hire 1000+ people with consistent process, a
clear EVP
Drive change of culture for ambitious growth,Add OD function
System upgrades to SAP platform and web-based processes
More dedicated HR support in regions/cities
Strengthen all functions, driving strategic projects:
retention project, Leadership acceleration programs, employee engagement
surveys, outsourcing of payroll and benefit, shared service center
transformation, etc
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Key Strategies
Talent Management
Developing and Retaining Key Talent and Capabilities
Acquiring Top TalentStaffing
Shaping the ClimateOrganizationDevelopment
Synchronizing Capabilities and Increasing EfficiencyHR BusinessExcellence
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Focus of HR-after 2007 to support more ambitious business growth
Key Focus
Ambitious growth
Hiring Capability: Clear EVPClear Sourcing StrategyRobust staffing organization, Assessment & on-boarding process.
Talent & Leadership:
Deep follow-up required different level developmental actions.
New Culture Building • Customer Orientation, • Performance Driven,
• Compliance and Self-responsibility• Passion to Win
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Never Stop Growing as EVP Theme to Attract Best Talent and Clear on Messages to Stay in Novartis
1. Extraordinary growth – Novartis China is transforming, be a part of the journey
2. Innovative products – Novartis has the strongest product pipeline in the industry
3. Passion to win – Novartis offers challenges and rewards great performance
4. Commitment towards patients, society and China – Novartis cares
5. Development and advancement – Novartis is committed to invest in talent development and our growth results in great career opportunities
6. A dynamic work environment with encouraging and caring leaders – Novartis is a great place to work
Hiring
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Never Stop Growing as EVP Theme to Attract Best Talent and Clear on Messages to Stay in Novartis
Recruitment Manual(for Hiring Managers and HR professional)
EVP Brochure to Candidates
Hiring
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TalentLeadership
Competency based Career Progression Support Employee -- Improve capability on current job-- Plan for next step of Career within Novartis
Bu-bu-gao
---- Career progression for Sales Reps
TalentLeadership
Leadership Acceleration Programs to upgrade Executives & their successors
High potential talents with 3-5 yrs readiness
High potential talents with 1~2 yrs
readiness/ ready now
CEO & Director Reports (PEC)
International Management Program CEIBS IMD
Leading for Success Program Chinese Economist Harward Busoiness School Tuck SKOLKOVO
CPO Leadership of Today and Tomorrow for Hyper Growth
Executive Program Chinese Economist Harward Business School
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TalentLeadership
Bench for 1st line sales manager
Bench for 2st line sales manager
Bench for Functional Head
& RDs
Mini OTR program (integrated with Talent management): assessment for self-awareness, e-learning, Learn by doing, classroom training
KUN Program (12 months):
PENG Program (12months):
FF & Functional Leadership for Business Hyper Growth
Talent = Competence Commitment ContributionWorkshopFollow up by Experience SharingGroup coaching
Stretched Goal Team collaborationGoal Achievement
Talent = Competence Commitment ContributionWorkshopFollow up by Experience SharingGroup mentoring
Stretched Goal Cross Functional teamworkGoal Achievement
X X
X X
Leadership Acceleration Programs to Strengthen pipeline of 1st line & 2nd line managers
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Compliance culture building- External challenges in Pharma industry- 2007
Since 2007, Pharma industry under big challenge from government. Sign of no-Medical Reps in hospitals and drug safety issue surfaced requires pharma company to rebuilt their reputation.
MNC Pharma companies have been implementing strict professional promotional code.
Novartis has been always very strict in terms of compliance, but yet, the doubt coming from multiple sources pushes company to state even more clearly and consistently. Internal audit also surfaced some areas of improvement in terms of compliance.
New code was developed by RDPAC that all Reps working in associated MNC companies will go through RDPAC certification process within 6 months of employment.
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Culture
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Culture
Drug safety Issue , RDPAC Certification for new Medical Reps, Government Anti-corruption Action in 2007
Building a High Performance High Compliance Organization
“tone from the top”- making it clear to everyone that non-compliance will not be tolerated.
Review and build SOPs to clarify processes, train and communicate broadly to the organization.
Promoted necessary tools (promotional catalog), on-line tools, website created for compliance
Massive training to the entire organization, especially for sales and marketing professionals
Cases of violations were shared and addressed
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Culture
HR’s role in Changing of culture
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Culture
New material and tools for sales force to easily access compliance policies
Employees need to sign to confirm acceptance of the hand- book
Employee Compliance handbook for every employee
Promotional guides for Sales and Marketing people
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Culture
Publication SeminarMethod Time Organizer Audience Contents
Management meeting XXX, 2007
HR, SP&BDL
Over 100 manager level above associates
Different measurementA story of eel
Management meeting XXX, 2007
HR, SP& BDL
As aboveReinforce training & communication on SOP, TCC, Dos & Don’ts
orientation XXX, 2007Sales Training
new employees
Novartis as the most admired company to keep high compliance standard
Staff Meeting with global leaders
XXX, 2007 CEO OfficeMarketing & sales associates
A global compliance presentationQ&A session to answer associates’ concern/questions
Opening for sales meeting
XXX, 2007 Sales Mgt. Sales teamChange the Mindset of Sales Management Team to Meet the Requirement of Transparency, Control, Compliance
Closing for line manager training
XXX, 2007Sales Training
New sales managers
High performance, high compliance
E-LearningWebsite
Communication Examples -Presentations/Speeches
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Culture
Novartis China Online Learning Center
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Culture
Comprehensive compliance training available on e-learning
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Culture
Novartis SunFlower Program ----Employee Assistance Program(EAP)
Express about occupational psychological health
1
Telephone/face to face consulting 3
2Online “Caring” Website
Novartis is among the most ethical company
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Item 1
Item 3
Item 2
Item 4
Similar policy
Least strict Most strict
G CDB A FE
GCDBA F E
GCDB A FE
G CDBA F E
Compliance examples
Major MNCs Most strict
Least strict Source: external consultant
Culture
Categories Ranked By Difference Favorable Scores
Training & Career Development
Empowerment & Involvement
Management
Senior Leadership
Communication Channels
Innovation & Change
Retention
Performance Management
Integrity & Social Responsibility
Communication Effectiveness
Immediate Management
Diversity & Inclusion
Engagement
Work-life Balance/Work Satisfaction
External Orientation/Customer Focus
Life Work Integration Supplement
Internal Processes
Pay & Benefits
Red / Green Difference Bars are statistically significant
Differences From Benchmark
NovartisEGM: COUNTRY: CHINA 2009 (1915)
vs. NOVARTIS OVERALL 2009 (86682)
84
88
81
80
82
79
86
78
90
89
86
83
89
81
80
64
52
54
23
22
22
21
19
15
14
14
11
11
10
8
6
6
6
5
5
4
-30 -15 0 15 300 25 50 75 100
Highly Engaged Workforce - 2009 Engagement Survey
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Lessons learned
Always join business table and talk about business, not HR languages
Be open minded, nothing is static
Be bold to champion some business projects-yes, HR can do it! (although this is a tough road)
Always with clear data supporting people discussion and a long term view (eg. Sourcing strategy, assessment tools, talent development programs)
Build a strong HR team, hire people who has passion to grow with the business, not only qualifying for current job
Asking each member of your team:
• Are you happy working here?
• Are you learning at your work?
Create an environment where creativeness and openness are always welcomed!
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Novartis Pharma China has been upgraded to Regional level as Greater China Region(GCR) in 2010
GCPO BJ HQGCPO SH HQ
GCPO CD HQGCPO GZ HQ
GCPO HQ
SHANGHAISHANGHAI
CHENGDUCHENGDU
GUANGZHOUGUANGZHOU
BEIJINGBEIJING
Hainan
Heilongjiang
Sichuan
Jilin
Liaoning
Shandong
Fujian
Jiangxi
AnhuiHubei
Hunan
GuangdongGuangxi
Henan
Shanxi
Inner
Mongolia
Shaanxi
Ningxia
GansuQinghai
Guizhou
Yunnan
Xinjiang
Jiangsu
ZhejiangChongqing
Tibet
HebeiTianjin
Taiwan
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Continue on the road of having strategic impact
HR skills, talents, structure, processes upgrades36 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
37 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
Winning
HR team!
Strong,
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