Leadership development at Novartis
Case example China
Frank Waltmann Head of Learning Novartis is represented in 140 countries and has 91,000 employees with headquarters in Basel, Switzerland. In 2005, the company generated US$32.2 billion sales and a US$6.1 billion net income. Currently, Novartis has 2,300 employees in China, which represents a very fast employee expansion. The Chinese pharmaceutical market represents unique challenges. First, China is one of the top ten and fastest-growing pharma markets. China's pharmaceutical market is expected to continue to grow at double-digit growth rates to 2010. It is transitioning from state control, and the healthcare environment is changing dramatically. There is fierce competition with the more than 6,000 domestic pharmaceutical manufacturers. In the Chinese pharmaceutical market, the top ten companies control no more than one-fifth of the overall market, which is up to half of the average situation existing in Western markets. In total, China has some 14,000 pharmaceutical distributors. In addition, probably needless to add, is that China represents a very challenging and heterogeneous regulatory environment, The Novartis Chinese portfolio addresses unmet needs in areas of essential importance and Novartis makes significant investments in clinical trials in China as illustrated in Figure 1. Novartis has identified four strategic areas for further investment in China: the new Novartis Research Center; expansion of clinical trials; chemical and analytical development; and chemical production, The two last are under the umbrella of the HUA project. In February 2006, Novartis began constructing a US$83 million site for drug production and development in Changshu inf East China's Jiangsu province, to be fully operational by the end of 2007. The new site, Suzhou Novartis Pharma Technology Co Ltd, is Novartis' sixth investment project in China. It will analyse, develop and produce chemicals for drugs used to treat leukaemia, epilepsy, hypertension and other diseases, 75
Leading China's Future ± Future Chinese Leaders
People at Novartis Each year, Novartis hires thousands of new employees for pharma, Sandoz, consumer health, research and corporate. Out of a total of 11,660 last year, 2,140 of the new employees were in Asia. On average, Novartis receives some 300,000 applications per year, which breaks down into 25,000 per month, or 830 applications per day. Novartis is considered as one of the best employers in China. For example, in 2005 Beijing Novartis Pharma Ltd was awarded the Hewitt Best Employers Award. Novartis also appears tops in the Fortune ``10 Great Companies to Work for in Europe''. We truly believe learning is crucial to Novartis' success. That is why Novartis has implemented a dynamic and effective learning strategy. Goals include the development of management and leadership skills and providing our associates with opportunities to develop and grow through a continual process of education and learning. All these activities support and reinforce the integration of our core values and capabilities. The global Novartis systematic development concept of associates builds on four core principles: 76
Leadership development at Novartis: case example China
1. Grow leaders from within Novartis. 2. Fill 70 per cent of the positions with internal associates. 3. Each associate has a development plan. 4. Each associate has minimum two career and development discussions per year Identifying and developing talents is one of Novartis' most important priorities. We want to build a reputation as an exciting workplace in which our associates can realise their professional ambitions. The Novartis pipeline of leaders to grow the business can be summarised in a straightforward equation: leadership talent multiplied by job experiences and continuous learning adds up to the successful pipeline. In parallel, Novartis offers a variety of possibilities of career...
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