Project Background A key HR scorecard objective for 2008 is to increase the quality of the existing talent pipeline and specifically, to “Develop an Asia Talent Plan”. This project was established to deliver this objective. *Source: Global HR Scorecard 2008 Project Structure: The project has two phases: Phase 1 Strengthen our talent pipeline for key leadership roles in Asia by developing our internal Asian talent and using external sourcing if required Phase 2 Develop a strategic workforce plan which identifies the pipeline of skills and capabilities required to deliver our business strategy for Asia April – September 2008 September 2008 onwards This document details the outcomes from Phase 1 and the plan for Phase 2

Phase 1 - Strengthen our talent pipeline for key leadership roles in Asia by developing our internal Asian talent and using external sourcing if required

Phase 1 – Objectives, Scope and Team • Objectives: to deliver a strong pipeline of leaders in Asia, for Asia • Identify and validate the individuals in Asia with the potential to fill key leadership roles (in Asia). Create robust career plans that confirm the individual’s trajectory and the customised plan to get them there. • Identify any gaps in our internal leadership pipeline and develop a plan to close these gaps via external sourcing. • Document the investment case required to deliver this plan and the approach to implementation over the next four years. • Geographical Scope (based on SET area priorities): • R&D: China, Japan and India • ISMO: China and Japan (includes Corporate Function jobs, excludes R&D jobs. See slide 6) • Operations: China and Japan • Project team: • Project Sponsor: Ruud Dobber • Steering group: Mas Kato, Xudong Yin, Patrick Keohane, Dirk Schrader, Jayne Stanier, Julie Cowey • Core Team: Laura Earnshaw (project manager), T&SWP SET area leads, Regional and Global HRBP’s, Global Talent Development Director, Director of International Assignments. The following slides present the outcomes of Phase 1

Objective 1: Identify and validate the individuals in Asia with the potential to fill key leadership roles (in Asia). Create robust career plans that confirm the individual’s trajectory and the customised plan to get them there. Deliver a strong pipeline of leaders in Asia, for Asia. • Approach to identifying and validating key talent in Asia: • Individuals were assessed against the following criteria: • Membership of the Global or Functional talent pool I.e. individual has been identified as talent via the AZ Talent Management process AND, • Of Asian nationality (including those currently on an international assignment outside of Asia) • The steering group validated individuals potential for key leadership roles by; reviewing performance track record and talent data – ie Assessment of Potential (AoP). They also held dialogues with the individuals and their line managers. • The outcome of this validation was an “Asia Talent Pool” of 37 individuals. See appendix 1 • External benchmarking to validate the group of 37 was considered but a decision was taken not to because we felt we had sufficient knowledge internally and that the additional investment could not be justified. • ISMO staff doing R&D roles have not been included in this phase due to insufficient data (AoP’s do not exist and this population has not been included in the ISMO talent process to date). However,a joint ISMO/R&D talent review for this population will now take place in Q4, which may result in additions to the existing pool of 37. • The following slides show the characteristics of the Asia Talent Pool (ATP).

Profile of Asia Talent Pool Nationality SET area 8 100% 90% 6 23 9 80% 70% 14 R&D 60% 1 Operations 1 50% ISMO* (includes individuals doing Corporate Function Jobs excludes individuals doing R&D jobs) 40% 30% 7 20% 5 10% Talent Pool 0% Japanese Chinese Indian 25 R&D ISMO Operations 20 Gender 15 19 Number of individuals 10 10 5 5 5 3 3 1 1 0 27 R&D Operations ISMO Male Female Global Talent Pool Functional Talent Pool Local Talent Pool (ISMO only)

Profile of Asia Talent Pool – Analysis and observations • ISMO has 23 individuals in the ATP which is the the largest number of all SET areas. However, as a percentage of their total employee population, ISMO has fewer individuals than R&D and Operations (see table below): • The number of candidates in R&D was lower than expected. This is due to high turnover levels, lots of new employees and the exclusion of ISMO staff doing R&D roles at this initial stage. • 37% of the Asia Talent Pool is female. Relatively, this is higher as a percentage to the total number of females in the global talent pool – 30% based on last years figures. • There is only one candidate from India, this is because India was only in scope for R&D and the Indian talent market is very competitive.

Objective 1 Identify and validate the individuals in Asia with the potential to fill key leadership roles (in Asia). Create robust career plans that confirm the individual’s trajectory and customised development needs for them to reach their potential. I.e. Deliver a strong pipeline of leaders in Asia, for Asia. • Approach to creating career plans: • Following validation of candidates, line managers (supported by HR) drafted career plans using performance, development and talent data (AoP’s) and via dialogues with the individuals. • These career plans identify the individual’s trajectory and then map out the customised plan to get them there. All forms of development are considered to meet the need, and we have also included indicative costs. A sample career plan is shown below:

Career Plan Analysis - Key experiences required to reach trajectory: • Five key development themes were common to the majority of the career plans, across the SET areas: • Navigating the Global organisation – building knowledge around how the Global organisation operates and applying this knowledge strategically when managing/working on Global initiatives. • Leadershipskills –understanding and working with different cultures and influencing in the Global organisation. Setting strategic direction and managing delivery through others in a matrix organisation. • Management skills – managing people and performance, setting objectives and coaching individuals. • Professional skills/knowledge development – developing professional expertise. For example, In ISMO strategic marketing skills, business development and licensing - this requires knowledge of robust, mature marketing systems and practices. In Operations, the continued growth of lean Supply Chain Management and GMP/Compliance is key. • Language Skills – some of the individuals are more junior, and their English less well developed – particularly in Japan. Accelerated and ‘just in time’ language training is key in order that this does not become an blocker. • The project team will work with L&OE to assess how we can support the capability development described above using our global development resources.

Career Plan Analysis – International Assignments: • Of the 37 individuals in the Asia Talent Pool, 23 will require an International Assignment (IA) over the • next four years. • Critical success factors: • Shared accountability in planning the IA between the host and home line managers to ensure the right role with the right development objectives is “ring-fenced” at the right time. • Strong host support for the IA: • The main objective of IA’s for the ATP is individual development rather than filling a host skill gap. Therefore, successful IA’s require host support in the development of Asian talent for the longer term “greater good” of AstraZeneca – this is a challenge and risk in the current climate. • There must be strong support for the assignee as they learn about the host’s culture and develop their language skills. English language training must be delivered before and during the IA to support this. Host mentors should be provided to all assignees. • Each individual’s return role must be planned (in line with their career plan) before the assignment starts. This will provide the relevant context for the IA development planning and key milestones – and will ensure a smooth transition once their IA ends. • The following slide shows when the ATP require an IA as well as the host location and SET area

Career Plan Analysis – International Assignments: The picture below shows the host SET area and location for each of the IA’s. It also shows whether the IA is within a SET area I.e. ISMO to ISMO or from one SET area to another I.e. ISMO to Global Marketing. 2009 2010 2011 2012 Host Country Host SET area R&D Sweden or UK ISMO UK Belgium Singapore China Operations UK, Sweden or US Singapore GM US Key: IA is within the same SET area I.e. host and home SET area are the same IA is from ISMO to Global Marketing in the US

Analysis from the career plans – ISMO Trajectory A summary of the ISMO Asia Talent Pool trajectory is shown below, it demonstrates the number of individuals with the potential to reach certain “toll gates” within their SET area. ISMO MCP –3 E.g. Brand Manager MCP RVP/AVP MCP –2 E.g. Marketing Director MCP –1 E.g. Head of Sales and Marketing Primary Care 3 14 5 1 • Key Observations: • Strong pipeline of successors for MCP-1 and MCP • Although currently only 1 individual is on a trajectory for RVP level, we believe that over time, individuals who are currently further back in the organisation with, for example, potential for MCP level, will demonstrate increased levels of potential for RVP/AVP.

Analysis from the career plans – R&D Trajectory A summary of the R&D Asia Talent Pool trajectory is shown below, it demonstrates the number of individuals with the potential to reach certain “toll gates” within their SET area. R&D Head of Asia R&D -3 Head of Asia R&D –2 E.g. Head of Japan Patient Safety Head of Asia R&D –1 E.g. Head of Clinical Operations Head of Asia R&D 3 2 3 • Key Observations: • With fewer individuals over all the succession pipeline is less strong in terms of numbers at each toll gate. • There are no internal Asian successors for the Head of Asia R&D role as part of this plan. • Once we have reviewed the ISMO staff doing R&D roles, we may identify further succession candidates at each toll gate.

Analysis from the career plans – Operations Trajectory A summary of the Operations Asia Talent Pool trajectory is shown below, it demonstrates the number of individuals with the potential to reach certain “toll gates” within their SET area. Operations Asia RVP-3 Asia RVP-2 Asia RVP-1 Asia RVP 1 3 2 • Key Observations: • Strong succession pipeline for RVP-2 and –1 in China and Japan. • No identified Asian succession candidates for the Asia RVP role. • Succession pipeline includes one HR candidate

Analysis from the career plans – Risk assessment Each individual’s career plan contains a risk assessment that considers any retention or other risks that we face with our talent. The following table presents a summary of the risks by SET area: • General risks with Asian talent: • English language capability is a key risk when going on an IA and/or when working with the Global organisation, Asian talent must be supported in developing this capability. • In general, Asian nationals prefer to work for Asian companies, this puts AZ at a disadvantage in terms of attracting and retaining Asian talent. • As we develop our internal talent they become more attractive to our competitors and so retention needs to be continually focussed on to minimise talent losses. Given this, the retention risk associated with each member of the ATP needs to be constantly re-evaluated as they progress through the stages of the plan.

Objective 2: Identify any gaps in our internal leadership pipeline and develop a plan to close these gaps via external sourcing The following external sourcing needs have been identified in response to filling gaps in our internal leadership pipeline.

Objective 3: Document the investment case required to grow our Asian talent against their career plan and agree the approach to execute the Asia Talent Plan. Indicative view of investment required to support the development of our internal talent over the next four years: * Costs are inclusive of salary & indicative based on 01/07/2008 calculations and exchange rates. • The steering group have proposed the following funding principles for this investment: • Training courses and ‘other’ costs will be paid for by the home SET area. • There is currently no consistent approach to who pays for IA’s to/from Asia. SET are not supportive of a ‘central budget’ but support the markets making provision for the moves. • The steering group recommend the need for consistent funding principles where the host pays all IA costs. If this is not possible, a 50/50 split will be considered. The steering group are testing this recommendation with the relevant SET members, it will be confirmed in the coming weeks.

Objective 3: Document the investment case required to grow our Asian talent against their career planand agree the approach to execute the Asia Talent Plan. The following plan shows the activities required to execute the Asia Talent Plan. Q4 2008 Q1 2009 Q2 2009 Q3 2009 Agree funding principles and sign off investment Begin to ‘ring fence’ potential roles for IA’s starting in 2009 Confirm, agree and ring fence roles for IA’s 2010 and beyond Define and plan development solutions with L&OE for Phase 1 Co-ordinate talent assessment & career plans for ISMO R&D staff Line manager/individual 1:1’s to confirm career plans and next steps On-boarding Regional implementation lead for execution of Phase 1 On-boarding Regional implementation lead and Global Director of SWP for Phase 2 Execution of Phase 1 plans & regular monitoring of progress and success measures Phase 2 – Asia Strategic Workforce Plan scoping begins

Objective 3: Document the investment case required to grow our Asian talent against their career planand agree the approach to execute the Asia Talent Plan. • The team structure for the execution of the Phase 1 plan is as follows: Steering Group - Ruud Dhobber, Mas Kato, Xudong Yin, Patrick Keohane, Dirk Schrader, Jayne Stanier, Julie Cowey • Regional Implementation Lead– Peter Watson • Peter will work closely with the steering group and core team to monitor and co-ordinate the implementation of • the career plans and specifically: • Drive the execution of the Asia Talent Plan by developing the approach to ensure successful delivery over the coming years. • Report against key milestones and update the steering group and other key stakeholders • Ensure engagement with line and HR within Asia to execute the plans • Provides regional knowledge and expertise Core team – Nicola Marchant (Project Manager) T&SWP SET area leads, Regional and Global HRBP’s, Global Talent Development Director and Director of International Assignments

Phase 2 - Develop a strategic workforce plan which identifies the pipeline of skills and capabilities required to deliver the business strategy for Asia

Phase 2 –Develop a strategic workforce plan which identifies the pipeline of skills and capabilities required to deliver our business strategy for Asia Status of Phase 2: The scoping of Phase 2 has yet to begin. The initial view from the core team and Steering Group: Purpose: To scope, develop and develop an Asia strategic workforce plan that will support the business in growing, retaining and attracting the the right talent, at the right time to execute the business strategy over the next 3-5 years. Objectives: • Define and agree a clear scope for the development of an Asia strategic workforce plan, by gaining clarity on the mid to long term business strategy and developing a picture of the associated workforce implications • Review current workforce profile: demographics, hiring patterns, turnover and movement. • Establish and review external labour market data sources and trends • Develop future workforce projections: future capability profiles, replacement costs, gap analysis. • Define workforce optimisation plans aligned to projected business volumes and staffing needs, alternative staffing models etc • Develop the Strategic Workforce Plan to close gaps and ensure we have the right talent, in the right place at the right time to deliver the business strategy. • Peter Watson continues to be the Regional Lead for Phase 2 working closely with Nicola Marchant (Director, SWP) to lead the steering group through a process to define the business need for strategic workforce planning in Asia and therefore the scope and timelines for Phase 2. • A key success factor for Phase 1 has been the business driven steering group. Once we have defined the scope for Phase 2 we will propose the team needed to deliver this part of the plan but a business driven steering group will continue to be key to this projects success.

Appendix Appendix 1: Asia Talent Pool candidates: Appendix 2: Career Plans: R&D: Operations ISMO:

Contents

Contents

Presentation Transcript

Contents

Contents

Contents

CONTENTS

Contents

Contents

Contents

CONTENTS

Contents

Contents