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From Fixing basics to shaping a culture change- HR team in motion

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

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  1. 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

  2. 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

  3. About Novartis 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

  4. 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

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

  6. Novartis Pharma products covers 9 therapeutic areas in China 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

  7. 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

  8. 2004 Basics are not there for HR organization • 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

  9. 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 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

  10. 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 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

  11. 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

  12. 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

  13. A journey of HR functional growth 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

  14. Establishing HR Partnering with Business 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

  15. Overall Performance Rating for HR Function from CEO by 2007 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

  16. Establishing HR Partnering with Business 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

  17. Acquiring Top Talent 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

  18. 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

  19. Hiring 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

  20. Hiring 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

  21. Talent 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

  22. Talent 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

  23. Talent 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

  24. 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

  25. 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

  26. 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

  27. HR’s role in Changing of culture Culture 27 | From Fixing basics to shaping a culture change- HR team in motion| Jennifer Jin & Victoria Wu| Business Use Only

  28. 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

  29. Communication Examples -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

  30. Comprehensive compliance training available on e-learning 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

  31. 1 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

  32. Novartis is among the most ethical company 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

  33. Highly Engaged Workforce - 2009 Engagement Survey 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

  34. 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

  35. 2 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

  36. Continue on the road of having strategic impact 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

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

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