Novartis

Extract

[...] Again, the communication is the key of success. The important thing here is to maintain great relationship long-term. The management has to make the people concerned understand how the evaluation really works. It also has to make them understand the crucial need of standardization for this method which is the key of success. They also act differently in comparison of other subsidiaries and this is not good for them car they are sometimes perceived as belonging to a different entity and pointed the finger at. [...]

[...] We are now going to see how. We are going to articulate our thinking around 3 major issues which are the performance of the employees, the recruitment and management of talents and the development of careers and human beings within the Company. Issue increase the performance of the employees worldwide One of the first things Vasella proposed was the pay-for-performance. This is a largely spread system but still not in use in the Novartis Facilities when Vasella arrived. He indeed implemented it with the evaluation forms we know and other kind of personality and performance assessment that helped defined the salaries of the employee afterwards. [...]

[...] During this period, productivity is lower. After approximately 12-18 months in the organization—depending on the role—productivity increases, but too often the talented employees leave the organization because they now have experience in a multinational company and are able to make career and salary progressions rapidly by moving to other companies. Then the cycle begins again.” This is a high concern problem since it cost the company a lot to form talent, who then go somewhere else so another company can enjoyed their new skilled. [...]

[...] It is the inside recruitment system. Novartis tried for the last years now, to develop the talents in house, they try to build the future managers of tomorrow within the actual workforce. And this is a strong weapon with two competitive advantages. First it is cheaper since they do not have to hire somebody from competition who will think he is primordial and ask for a strong salary. Secondly, it is good in the sense that the person is supposed to know all the values of the company and act accordingly. [...]

[...] He offers a new vision. It was not an easy thing to do, but since the productivity of the company keep on increasing since he is at the lead, it is clear that he made smart moves and that the turns he take offer the company real opportunities to deal with the global economy they are performing in. He helped resolved some of the most complex strategic stake in the global marketplace. But he thinks the company could still do better. [...]