Globalisation of HR

1. Globalisation of HR GVFHRA Kimberly Wipf, Executive Director, Global Recruitment AstraZeneca

2. Top 5 Reasons to Go Global • You like to collect air miles on airlines that you will never be able to us • You like getting up at 3:30am for a 1 hour conference call with the UK • You like getting a smaller bonus than expected because your European Boss thinks Americans are paid too much • You like carrying large suitcases up hotel stairs filled with import/export for your family and friends • You like eating fish for the fifth meal in a row because you don’t know any other words on the menu

3. Agenda • Background • Globalisation • Standardisation or “why can’t I do things the way I want?” • Where does value come from? Why does it matter? • Managing the “white space” • Integration points for other functions/processes • Learnings

4. THERAPY AREAS Cancer Cardiovascular Gastrointestinal Infection Neuroscience Respiratory & Inflammation Background -- AstraZeneca SOME FACTS One of the world’s leading pharmaceutical companies. A 70 – year track record of innovation that includes the Introduction of many world – leading medicines Active in over 100 countries; strong presence in key markets; growing presence in important emerging markets Over 67,000 employees: 17% in the UK, 38% in Continental Europe, 30% in the Americas and 15% in Asia, Africa and Australasia 17 principal research centres in 8 countries. AN INTRODUCTION 29 manufacturing sites in 20 countries. TO ASTRAZENECA Extensive sales and marketing networks worldwide.

5. Country Organizational Unit Traditional hierarchical models are giving way to matrix organisation, project teams, and collaboration models Global Addressing the Globalisation of the Workforce

6. Global Trends • “New HR” • Extensive centralised capacity • Delivery responsibility consolidated across process • Clear allocation of financial resource from central HR • Single, simple connected systems with global consistency • “Old HR” • Some centralised capacity • HR processes managed independently • Multiple, disparate budgets and investments • Multiple systems with regional/functional variation

7. Specific Global Business Challenges • Industry/Economic forces unlike anything in past experience • Different growth patterns • Western vs Eastern markets • Overcoming past experience • Prior technology projects • Language • True global capabilities • HR and the Line

8. Core – Decision Support Non Core - Transactional HR Strategic/ Decision Support Operational HR – What is it? Learning Mgt Talent Mgt. Recruitment Admin. and Staffing Payroll & Benefits Administration HR Data, HRIS, & Records Mgt.

9. Standardisation – A “four letter word”? • “My business is different!” • “I don’t like that format” • “You don’t understand how my business works” • “It’s easier/faster for me to do it my way” • Need to get a handle on true value drivers • Risks of non-compliance and complexity of business rising • Duplication of effort drives higher business costs

10. A Case in Point -- Technology • “My business is different!” • “I don’t like that format” • “You don’t understand how my business works” • “It’s easier/faster for me to do it my way”

11. Questions to Answer • What are the business drivers for my company? Do they differ by geography? • What differentiates our people management practices? Will globalisation impact those differentiators? • Do I have the HR capabilities to drive standardisation and consistency? • How do I better understand the needs of my customers? • What is the “global glue” for my organisation? How can I exploit that? • What does the line value from HR?

12. HR Functional Strategy …To Drive Business Success Lead Simplify Deliver Provide People Practices and Support… • Lead Where It Matters Most • Provide value adding advice, challenge and support with courage and confidence • Use expertise, data and insights to guide people management decisions and actions to deliver outcomes • Be Lean and Agile • Get the basics right • Keep it simple and have clear points of contact • Set and deliver service standards • Challenge ourselves to be better than our competitors on cost and value • Be HR Professionals who make • every interaction count • Demonstrate clear accountability at all levels • Think and act as “one HR” globally • Deliver to the highest standards • Be business leaders first, with HR expertise AZ’s Approach

13. Opportunities & Challenges at AstraZeneca • Strong engagement with line management • Global has become the way we work • Strong employee value proposition • Employee engagement drives business value • Lack of standardisation – across functions/geographies • Duplication of roles/processes and systems • Some overlap of roles within HR and between HR and line managers • Disparate and unconnected systems • Customer experience can be disjointed and complex

14. AZ’s Approach HR individual capabilities, skills and behaviours Organisation structure and governance HR processes and technology Higher levels of expertise in key roles Greater separation of strategic, operational and transactional services and support Simpler, more standardised and intuitive global processes Investment in development of HR capability particularly in analytics and business acumen Shared service approach for transactional and operational activity Global alignment of specialist resources Clear accountability and more effective performance management Improved technology that is easier to use Stronger governance from HRLT

15. The Global HR Structure Executive VP HR HRVP, Global HR Services HRVP, R&D HRVP, Performance & Reward HRVP, Corporate Functions HRVP, Workforce Planning & Talent Management HRVP, Operations HRVP, Leadership and Organisational Effectiveness HRVP, NA and Global Marketing HRVP, International Marketing

16. Lessons Learned • Manager skill is critical – spend more time on this than you might think is necessary • HR capability and capacity must be factored in. Don’t overestimate the readiness of HR staff to work differently • Business Partner model – how many do you need? Focused on what? • Transparency and honesty build trust in change • Keep the customer at the forefront of decisions • Clarity of the desired state is as important as the path to getting there • Visibility and alignment of leadership drives trust in the strategy

17. Capability Model Governance Organisation Structure Metrics Technology Global Processes Global Recruitment

18. Integration Points

19. In a nutshell • Standard – Drive consistency where difference doesn’t drive value • Simple – Core HR processes and activities must be easy to be effective • Intuitive – Think like the user, not like HR • Customer centric – does it help the user be more effective in delivering value to external customers?