From Fixing basics to shaping a culture
change- HR team in motion
Jennifer Jin
Head of Human Resources
Novartis Pharma China
Victoria Wu
Head of Talent Management & Organization Development
Novartis Pharma China
The Journey
 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
Headquarter: Basel, Switzerland
Location:
operate in 140 countries
Employment: approximately 102,000 associates worldwide
2009
Net sales:
USD billion
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
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
The 10 most admired pharmaceutical companies1
2003
2004
2005
2006
2007
2008
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
6.78
4
Merck
Merck
Abbott
Amgen
Eli Lilly
Abbott
Merck
6.67
5
Eli Lilly
Novartis
Pfizer
GSK
GSK
Eli Lilly
GSK
6.48
6
GSK
GSK
GSK
Eli Lilly
Amgen
GSK
Amgen
6.47
7
Novartis
Abbott
Amgen
Roche
Abbott
Roche
AstraZ
6.18
8
Pharmacia AstraZ
Roche
AstraZ
Wyeth
Amgen
Eli Lilly2
6.03
9
Wyeth
Roche
AstraZ
Wyeth
SanofiA
Wyeth
Wyeth2
5.89
Aventis
Wyeth
Pfizer
AstraZ
Astraz
Boehr. Ing.2
10 Aventis
1
Rating 2009
7.31
7.05
5.68
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
Cardia-Vascular
Metablism
Oncology
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 Journey
 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
Strategic
impact
 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
Business
Partnering
turnover (pharma industry historically has high
turnover)
 Customer does not trust C&B benchmarking
 Reactive hiring
HR Basics
 Employees are still concerned about how their
(payroll,
employee benefits,
data management,
processes, systems)
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
 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
2002 Top 10
2010 Top 10
USA
196
USA
262
USA
466
Japan
53
Japan
65
Japan
81
Germany
20
Germany
24
Germany
37
France
19
France
21
France
28
U.K.
14
U.K.
16
China
24
Italy
13
Italy
15
U.K.
24
Spain
9
China
14
Italy
23
Canada
8
Brazil
10
Canada
17
Mexico
8
Canada
10
Spain
16
China
6
Spain
10
Brazil
15
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
 Continued industry focus on Emerging Growth
Markets from all MNCs
Complexity
and cost
3
Stkholders
Mgmnt
2
Marketing and
Medical Marketing
(Integrated Selling)
1
Field Force (Core Selling Model)
80’s
90’s
00’s
 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
10
Three Strategic Imperatives to Capture Growth Opportunities
since 2005
Strategic Imperatives
Growth/Innovation
 Investing in the right
Portfolio, Customers
and Markets to
Maximize Growth
Talent
Productivity
 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
11| From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
The Journey
 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
2004~2005
2005~2007
2007~Onwards
Fixing Basics
Partnering
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
2004~2005
2005~2007
2007~Onwards
Fixing Basics
Partnering
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
Regional
HR Mgr
Functional
HR Mgr
Functional
HR Mgr
Functional
HR Mgr
Wherever you go, whatever you do,
e-Learning will be
right here waiting for you……
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
Strong Points:
• Highly Custormer Oriented
• Deep Involvement in Feildforce
Weakness
• Hiring capability- Need to be more
consistant, in effective sourcing pool,
lack of assessment tools
• On-boarding system/integration to
the company poor
Operations
• Talent management with deep
• Developed Comprehensive Local
HR programs to Support
business impact (normal things are
due, but not very engaged in business
and follow ups)
• 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 Business
2004~2005
2005~2007
2007~Onwards
Fixing Basics
Partnering
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
Staffing
Acquiring Top Talent
Talent
Management
Developing and Retaining Key Talent and Capabilities
Organization
Development
Shaping the Climate
HR Business
Excellence
Synchronizing Capabilities and Increasing Efficiency
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
Hiring Capability:
Talent & Leadership:
Clear EVP
Clear Sourcing Strategy
Robust staffing organization,
Assessment & on-boarding process.
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
Hiring
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
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 Novartis
Recruitment Manual
(for Hiring Managers and HR professional)
Hiring
EVP Brochure to Candidates
20 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
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
Talent
Leadership
Leadership Acceleration Programs to upgrade
Executives & their successors
CPO Leadership of Today and
Tomorrow for Hyper Growth
CEO & Director
Reports (PEC)
High potential talents
with 1~2 yrs
readiness/ ready now
High potential talents
with 3-5 yrs readiness
Executive Program
 Chinese Economist
 Harward Business School
Leading for Success Program
 Chinese Economist
 Harward Busoiness School
 Tuck
 SKOLKOVO
International Management Program
CEIBS
 IMD
22 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
Talent
Leadership
Leadership Acceleration Programs to Strengthen
pipeline of 1st line & 2nd line managers
Talent
Leadership
FF & Functional Leadership for
Business Hyper Growth
PENG Program (12months):
Bench for
Functional Head
& RDs
Talent = Competence
Workshop
Follow up by
X
Commitment
X
Stretched Goal
KUN Program (12 months):
Talent = Competence
Workshop
Follow up by
X Commitment X
Stretched Goal
Experience Sharing
Group coaching
Bench for 1st line sales
manager
Cross Functional
teamwork
Goal Achievement
Experience Sharing
Group mentoring
Bench for 2st line
sales manager
Contribution
Contribution
Team collaboration
Goal Achievement
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
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
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
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
Culture
Communication
Townhall
CEO Letter (including to employee family members)
Website
Field visits
Survey on compliance
Training
Compliance Level I, II, III training
RDPAC certification
Case sharing
Line Manager training
Line Manager Engagement
Be well trained
Communicated on any violation cases and follow up accordingly
Promotional activities following new guides
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
Culture
Employee Compliance
handbook for every employee
Promotional guides for Sales
and Marketing people
Employees
need to sign
to confirm
acceptance
of the handbook
28 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
Communication Examples
-Presentations/Speeches
Culture
Seminar
Method
Website
Time
Management
meeting
XXX, 2007
Management
meeting
XXX, 2007
orientation
XXX, 2007
Staff Meeting
with global
leaders
XXX, 2007
Opening for
sales meeting
XXX, 2007
Closing for
line manager
training
XXX, 2007
Organizer
HR,
SP&BDL
HR, SP&
E-Learning
Publication
Audience
Over 100
manager level
above
associates
Contents
Different measurement
A story of eel
As above
Reinforce training & communication on SOP, TCC,
new employees
Novartis as the most admired company to keep high
CEO Office
Marketing &
A global compliance presentation
Q&A session to answer associates’ concern/questions
Sales Mgt.
Sales team
Sales
New sales
Training
managers
BDL
Sales
Training
sales associates
Dos & Don’ts
compliance standard
Change the Mindset of Sales Management Team to
Meet the Requirement of Transparency, Control,
Compliance
High performance, high compliance
29 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
Comprehensive compliance training available on e-learning
Culture
Novartis China Online Learning 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)
Culture
1
Express about occupational
psychological health
Online “Caring”
Website
Telephone/face to
face consulting
3
31 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
2
Novartis is among the most ethical company
Compliance examples
Least strict
Item 1
Item 2
B
A
Item 3
Item 4
B
A
G
Most strict
D
A
G
E
B
D
F
C
E
D
A
E
F
C
B
D
F
C
G
E
Most strict
Major MNCs
Least strict
32 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
F
G
Similar policy
Source: external consultant
Culture
C
Novartis
EGM: COUNTRY: CHINA
2009 (1915)
Highly Engaged Workforce
- 2009
Engagement Survey
vs. NOVARTIS OVERALL 2009 (86682)
Categories Ranked By Difference
Favorable Scores
Differences From Benchmark
84
Training & Career Development
Empowerment & Involvement
23
88
Management
81
Senior Leadership
22
80
Communication Channels
21
82
Innovation & Change
19
79
15
Retention
86
Performance Management
14
78
14
Integrity & Social Responsibility
90
Communication Effectiveness
11
86
Diversity & Inclusion
10
83
Engagement
8
89
Work-life Balance/Work Satisfaction
81
6
6
Above Novartis Group/Novartis Pharma Global
80 in 18 categories;
6
Above China Norm in 16 categories;
5
External Orientation/Customer Focus
Life Work Integration Supplement
Pay & Benefits
11
89
Immediate Management
Internal Processes
22
64
52
Above Global Pharma Company Norm
in 15 categories;
54
Above Global High Performance Company Norm in 14 categories.
5
4
0 in motion| Jennifer
25 Jin & Victoria
50Wu| Business Use
75 Only
100 -30
-15
0
15
30
33 | From Fixing basics to shaping a culture change- HR team
Red / Green Difference Bars are statistically significant
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!
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
GCPO BJ HQ
GCPO SH HQ
GCPO GZ HQ
GCPO CD HQ
GCPO HQ
Heilongjiang
Inner
Jilin
Mongolia
Liaoning
Xinjiang
BEIJING
Ningxia
Tianjin
Hebei
Shanxi
Shandong
Qinghai
Gansu
Tibet
Sichuan
Jiangsu
Shaanxi Henan
SHANGHAI
Anhui
Hubei
Chongqing
Zhejiang
Jiangxi
CHENGDU
Hunan
Fujian
Guizhou
Guangdong
Yunnan
Guangxi
Taiwan
GUANGZHOU
Hainan
35 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
• Be the partner
and change
agent in
organization
structure
changes for
the next
growth period
HR Organization Transformation
• Since 2009, a
new project to
address
retention was
underway.
2009 year end
data showing
our voluntary
turnover is
45% less than
industry.
Organization Change
Retention
Continue on the road of having strategic impact
• Further HR
transformation
for cross
divisional HR
services
provided
• More
automation
and platform
• Developing
talents as
global talent
pool
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,
Winning
HR team!
37 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
38 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only
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Victoria Wu-Novartis Phama