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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

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From fixing basics to shaping a culture change hr team in motion l.jpg

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 l.jpg
The Journey motion

  • About Novartis

  • Background of HR Journey 2004 ~ 2010

  • HR Evolvement 2004~2010

2| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


About novartis l.jpg
About Novartis motion

Headquarter: Basel, Switzerland

Location: operate in 140 countries

Employment: approximately 102,000 associates worldwide

2009 USD billion

Net sales: 44.3

Net income: 8.5

R&D investment: 7.5

3| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Our mission l.jpg
Our mission motion

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 focus is on patients

Our purpose is to care and cure. We provide medicines to treat and prevent diseases, ease suffering and improve quality of life.

4| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Fortune world s most admired companies novartis 2 in pharmaceutical industry 2009 l.jpg
Fortune motion: “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.

5| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Novartis pharma products covers 9 therapeutic areas in china l.jpg
Novartis Pharma products covers 9 therapeutic areas in China motion

Oncology

Metablism

Cardia-Vascular

Infection Disease

Transplantation

Antirheumatic/Pain

Osteoporosis

Ophthalmic

Central Nervous System

6| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


The journey7 l.jpg
The Journey motion

  • About Novartis

  • Background of HR Journey 2004 ~ 2010

  • HR Evolvement 2004~2010

7| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


2004 basics are not there for hr organization l.jpg
2004 Basics are not there for HR organization motion

  • No long term talent management strategy

  • Little impact on organization culture

  • 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

  • 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

8| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Business ambitions for pharma companies including novartis l.jpg
Business ambitions for Pharma companies, motionincluding 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

2005 Top 10

USA262

Japan65

Germany24

France21

U.K.16

Italy15

China14

Brazil 10

Canada10

Spain 10

2002 Top 10

USA196

Japan 53

Germany 20

France 19

U.K. 14

Italy 13

Spain 9

Canada 8

Mexico 8

China6

2010 Top 10

USA466

Japan81

Germany37

France28

China24

U.K.24

Italy23

Canada17

Spain16

Brazil15

Estimated Market Size for Ethical & OTC Drugs in $ bio

Source: BCG analysis

9| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


With the growth ambition the business model and external competitive landscape also evolving l.jpg

Complexity and cost motion

3

Stkholders Mgmnt

2

Marketing and Medical Marketing (Integrated Selling)

1

Field Force (Core Selling Model)

80’s

90’s

00’s

With the growth ambition, the business model and external competitive landscape also evolving

  • 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......

10| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Three strategic imperatives to capture growth opportunities since 2005 l.jpg
Three Strategic Imperatives to Capture Growth Opportunities since 2005

Strategic Imperatives

High Level

Growth/Innovation

Productivity

Talent

 Ensuring we have the right People, Structure, Culture and Capabilities in our in organization

 Improving efficiency of Support Functions, having strong process / systems to increase automation

 Investing in the right Portfolio, Customers and Markets to Maximize Growth

11| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


The journey12 l.jpg
The Journey since 2005

  • About Novartis

  • Background of HR Journey 2004 ~ 2010

  • HR Evolvement 2004~2010

12| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


A journey of hr functional growth l.jpg
A journey of HR functional growth since 2005

2004~2005

Fixing Basics

2005~2007

Partnering

2007~Onwards

Strategic Impact

  • Identify gaps in HR. Basics in:

  • compensation benchmarking

  • benefit administration

  • adding hiring function

  • communication with line managers

13| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Establishing hr partnering with business l.jpg
Establishing HR Partnering with Business since 2005

2004~2005

Fixing Basics

2005~2007

Partnering

2007~Onwards

Strategic Impact

  • 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

HR Head

Wherever you go, whatever you do, e-Learning willbe

right here waiting for you……

Regional

HR Mgr

Functional

HR Mgr

Functional

HR Mgr

Functional

HR Mgr

Regional

HR Mgr

Regional

HR Mgr

Regional

HR Mgr

14| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Overall performance rating for hr function from ceo by 2007 l.jpg
Overall Performance Rating for HR Function from CEO by 2007 since 2005

Strong Points:

Weakness

  • Hiring capability- Need to be more consistant, in effective sourcing pool, lack of assessment tools

  • Highly Custormer Oriented

  • On-boarding system/integration to the company poor

  • Deep Involvement in Feildforce Operations

  • Talent management with deep business impact (normal things are due, but not very engaged in business and follow ups)

  • Developed Comprehensive Local HR programs to Support

  • Strategic planning on HR structural process , people capability etc.

15| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Establishing hr partnering with business16 l.jpg
Establishing HR Partnering with Business since 2005

2004~2005

Fixing Basics

2005~2007

Partnering

2007~Onwards

Strategic Impact

  • 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

16| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Key strategies l.jpg

Acquiring Top Talent since 2005

Staffing

Talent

Management

Developing and Retaining Key Talent and Capabilities

Shaping the Climate

Organization

Development

Synchronizing Capabilities and Increasing Efficiency

HR Business

Excellence

Key Strategies

17| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Focus of hr after 2007 to support more ambitious business growth l.jpg
Focus of HR-after 2007 to support more ambitious business growth

Hiring Capability:

Clear EVP

Clear Sourcing Strategy

Robust staffing organization, Assessment & on-boarding process.

Talent & Leadership:

Deep follow-up required different level developmental actions.

Key Focus

Ambitious growth

  • New Culture Building

  • Customer Orientation,

  • Performance Driven,

  • Compliance and Self-responsibility

  • Passion to Win

18 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Never stop growing as evp theme to attract best talent and clear on messages to stay in novartis l.jpg

Hiring growth

Never Stop Growing as EVP Theme to Attract Best Talent and Clear on Messages to Stay in Novartis

  • Extraordinary growth – Novartis China is transforming, be a part of the journey

  • Innovative products – Novartis has the strongest product pipeline in the industry

  • Passion to win – Novartis offers challenges and rewards great performance

  • Commitment towards patients, society and China – Novartis cares

  • Development and advancement – Novartis is committed to invest in talent development and our growth results in great career opportunities

  • A dynamic work environment with encouraging and caring leaders – Novartis is a great place to work

19 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Never stop growing as evp theme to attract best talent and clear on messages to stay in novartis20 l.jpg

Hiring growth

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

20 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Slide21 l.jpg

Talent growth

Leadership

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

21 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Leadership acceleration programs to upgrade executives their successors l.jpg

Talent growth

Leadership

Leadership Acceleration Programs to upgrade Executives & their successors

CPO Leadership of Today and Tomorrow for Hyper Growth

  • Executive Program

  • Chinese Economist

  • Harward Business School

CEO & Director Reports (PEC)

  • Leading for Success Program

  • Chinese Economist

  • Harward Busoiness School

  • Tuck

  • SKOLKOVO

High potential talents with 1~2 yrs readiness/ ready now

  • International Management Program

  • CEIBS

  • IMD

High potential talents with 3-5 yrs readiness

22 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Leadership acceleration programs to strengthen pipeline of 1 st line 2 nd line managers l.jpg

Talent growth

Leadership

Leadership Acceleration Programs to Strengthen pipeline of 1st line & 2nd line managers

FF & Functional Leadership for Business Hyper Growth

PENG Program (12months):

Talent =CompetenceCommitmentContribution

Bench for Functional Head & RDs

X

X

  • Workshop

  • Follow up by Experience Sharing

  • Group mentoring

  • Stretched Goal

  • Cross Functional teamwork

  • Goal Achievement

KUN Program (12 months):

Bench for 2st line sales manager

Talent = CompetenceCommitmentContribution

X

X

  • Workshop

  • Follow up by Experience Sharing

  • Group coaching

  • Team collaboration

  • Goal Achievement

  • Stretched Goal

Bench for 1st line sales manager

Mini OTR program (integrated with Talent management):

assessment for self-awareness, e-learning,

Learn by doing, classroom training

23 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Compliance culture building external challenges in pharma industry 2007 l.jpg
Compliance culture building- External challenges in Pharma industry- 2007

Culture

  • 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.

24 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Slide25 l.jpg

Drug safety Issue , RDPAC Certification for new Medical Reps, Government Anti-corruption Action in 2007

Culture

25 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Building a high performance high compliance organization l.jpg
Building a High Performance High Compliance Organization Reps, Government Anti-corruption Action in 2007

Culture

  • “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

26 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Hr s role in changing of culture l.jpg
HR’s role in Changing of culture Reps, Government Anti-corruption Action in 2007

Culture

27 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


New material and tools for sales force to easily access compliance policies l.jpg

Employees need to sign to confirm acceptance of the hand- book

New material and tools for sales force to easily access compliance policies

Culture

Employee Compliance handbook for every employee

Promotional guides for Sales and Marketing people

28 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Communication examples presentations speeche s l.jpg
Communication Examples book-Presentations/Speeches

Culture

Seminar

Website

E-Learning

Publication

29 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Slide30 l.jpg

Comprehensive compliance training available on e-learning book

Culture

Novartis China OnlineLearning Center

30 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Novartis sunflower program employee assistance program eap l.jpg

1 book

Express about occupational psychological health

Online “Caring” Website

2

Telephone/face to face consulting

3

Novartis SunFlower Program ----Employee Assistance Program(EAP)

Culture

31 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Novartis is among the most ethical company l.jpg
Novartis is among the most ethical company book

Culture

Compliance examples

Least strict

Most strict

Item 1

B

A

G

E

D

C

F

Item 2

G

B

D

F

C

E

A

Item 3

B

D

A

E

F

C

G

A

G

B

D

F

E

C

Item 4

Similar policy

Most strict

Major MNCs

Least strict

Source: external consultant

32 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Slide33 l.jpg

Highly Engaged Workforce - 2009 Engagement Survey book

Above Novartis Group/Novartis Pharma Global in 18 categories;

Above China Norm in 16 categories;

Above Global Pharma Company Norm in 15 categories;

Above Global High Performance Company Norm in 14 categories.

33 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Lessons learned l.jpg
Lessons learned book

  • 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!

34| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Novartis pharma china has been upgraded to regional level as greater china region gcr in 2010 l.jpg

2 book

Novartis Pharma China has been upgraded to Regional level as Greater China Region(GCR) in 2010

Heilongjiang

Jilin

Inner

Mongolia

Liaoning

Xinjiang

Tianjin

Hebei

Shanxi

Ningxia

Shandong

Qinghai

Gansu

Jiangsu

Shaanxi

Henan

Anhui

Tibet

Hubei

Sichuan

Chongqing

Zhejiang

Jiangxi

Hunan

Fujian

Guizhou

Guangdong

Yunnan

Taiwan

Guangxi

Hainan

GCPO BJ HQ

GCPO SH HQ

GCPO GZ HQ

GCPO CD HQ

GCPO HQ

BEIJING

SHANGHAI

CHENGDU

GUANGZHOU

35 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Continue on the road of having strategic impact l.jpg
Continue on the road of having strategic impact book

HR skills, talents, structure, processes upgrades

36 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Strong l.jpg
Strong, book

Winning

HR team!

37 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


Slide38 l.jpg

Thanks! book

38 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only


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