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P. Dwarakanath
Managing Change
Internal desire to excel
Customers
Global Competition
Govt. Policies/ Regulations
Mergers & Acquisitions
New Opportunities
Triggers for Change
Technological Changes
Success of any Corporate Strategy
Depends on
How well we Manage Change
To perform in fast changing environment one needs to
keep up the pace i.e. Transform with agility
(Glaxowellcome and SmithKline Beecham, HP and
Compaq, Daimler and Chryser, Standard Chartered
Grindlays)
We must recognize that change is a continuous journey and not a destination…no decision is perpetual and there is no ‘right’ way
Our Philosophy…
GSK Story far…• 1958 - HMM Ltd set up in India• 1969 - HMM Ltd. acquired by SmithKline Beckman• 1989 - SmithKline Beckman and Beecham Group merge
to form SmithKline Beecham plc• 1995 - Glaxo and Wellcome merge to form GlaxoWellcome• 2000 - GlaxoWellcome and SmithKline Beecham merge to
form GlaxoSmithKline
Mergers are about…• Today, mergers are often not about “things”. They are more about “soft
capital” like• Thoughts• Methodologies• People• Relationships
• But “soft capital” is perishable. • Its fragile, fluid, you cant lock it up at night or prevent it from going
away from you• It must be nurtured• “soft capital” is harder to merge• Lack of organisational glue to hold good performers
Our Approach…• A merger is an opportunity: don’t waste it
• Paves way for a new identity• “Simply Better” Healthcare Company
• Allows establishment of organization's philosophy• Focus on healthcare
• Provides scope for creation of a new and effective culture• Simply Better/Simply Better Way/GSK Spirit
• Opportunity to establish the 3P Concept• People with winning attitude• Processes that are reliable and robust• Pay off for survival and growth
Five Prerequisites : Sustaining Change
• Organization as a hero
• Winning Attitude
• Strategic Communication
• Cumulative Learning
• Hardwiring the soft stuff
From Promise to Performance
Did you Know?
• No.25 on Fortune magazine list of global most admired companies(2000)
• No.29 on Fortune’s list of fastest growing companies• Named 5 times to Fortune’s list of most innovative companies
(1996-2000)• Twice named to Fortune’s one hundred best companies to work
for in America (1999-2000)• Named the world’s leading Company by Forbes Global
Business (1999)• Honored as having America’s best sales force by Sales&
Marketing Management’s annual survey (1999)
The ability of companies to be The ability of companies to be culturally innovative is related to culturally innovative is related to leadership and top management leadership and top management must be responsible for building must be responsible for building
strong cultures. strong cultures.
Leaders construct the social reality of Leaders construct the social reality of the organization, they shape values the organization, they shape values and attend to the drama and vision and attend to the drama and vision
of the organization.of the organization.
Strategy
Peer Group Leader
Most Effective Marketer
Leader in new product development
Most efficient producer
Best managed
Cross-sector Linkages
Simply Better
Customer
Innovation
Performance
People
Integrity
‘Simply Better’ Way
Customer-Driven Quality
Continuous Improvement
Process Thinking
P-D-C-A
Waste Elimination
S T P/PIP
Culture System
Culture - The Four Dimensions
Values
Heroes
Rites & Rituals
Networks
The beliefs that lie at heart of Corporate Culture
People who embody the Values
Routines of interaction that have strong symbolic qualities
The informal communication system or hidden hierarchy of power in the organization
Culture: The Invisible Thread •Language that everyone knows, understands and abides by
– Irrespective of geographical boundaries or diversities– Simply Better and Simply Better Way– GSK Spirit
•Single organisation-wide Mission – Our global quest is to improve the quality of human life by enabling
people to do more, feel better and live longer
– Strategic Intent
– Set of Leadership Essentials: Expectations of behaviour
– Reward performance on the same parameters
Changing Culture in the New Economy
• Employee Expectations– Security to Personal Growth
• Rewards– Salary to Stock Options
• Leadership– Top Down to Inspirational
• Organisation– Hirearchy to Network
• Corporate Goal– Steady Growth to Fast Growth
Vision:Vision:Culture should beCulture should be
adaptive to the visionadaptive to the vision
Vision:Vision:Culture should beCulture should be
adaptive to the visionadaptive to the vision
Alignment:Alignment:Initiatives should beInitiatives should be
aligned to the Vision & aligned to the Vision & CultureCulture
Alignment:Alignment:Initiatives should beInitiatives should be
aligned to the Vision & aligned to the Vision & CultureCulture
Implementation:Implementation:Cultural changesCultural changes
should be implemented in such a way should be implemented in such a way that people accept andthat people accept andembrace the changesembrace the changes
Implementation:Implementation:Cultural changesCultural changes
should be implemented in such a way should be implemented in such a way that people accept andthat people accept andembrace the changesembrace the changes
Financial:Financial:There needs to be There needs to be +ve link between+ve link between
investment made and return investment made and return on human capitalon human capital
Financial:Financial:There needs to be There needs to be +ve link between+ve link between
investment made and return investment made and return on human capitalon human capital
ORGANIZATIONORGANIZATION CULTURECULTURE
ORGANIZATIONORGANIZATION CULTURECULTURE
Our Mission...Our Mission...
Our global quest is to improve Our global quest is to improve
the quality of human life by enabling the quality of human life by enabling people to do more, feel better and live people to do more, feel better and live longerlonger
Why are we in Business?Why are we in Business?
Our SpiritOur Spirit
We undertake our quest with theWe undertake our quest with the enthusiasm of enthusiasm of
entrepreneurs, entrepreneurs, excited by the constant search forexcited by the constant search for
innovation. innovation. We valueWe value performance performance achieved withachieved with
integrity. integrity. We will attain success as a world class We will attain success as a world class
global leader withglobal leader with each and every one of oureach and every one of our
peoplepeople contributing withcontributing with passion passion and an unmatchedand an unmatched
sense of urgency.sense of urgency.
How we need to behave if we are to achieve our goal
As a strategic business partner we strive to attract,
retain and develop talent, champion change and
manage performance to achieve our goals.
Our quest is to facilitate a culture
that enables the realisation of
human potential
Defin
ing th
e futu
re
HR Mission
GSK Culture• Nurture Questioning & Challenging
• Value not only WHAT but HOW you deliver
• Transparency in Systems & Processes
• Talent as Key Priority – not mere lipservice
– Max-U in WWW, our Business Objectives
– Focus on developing our own people “Grow Our Own
Timber” philosophy
– Employee driven design of Compensation
& Benefits
GSK Culture
• Encourage employees to use first names
– “Breaking the Barriers”
• Don’t insist on dress code, relaxed dressing on
friday
• Bi-Annual All Hands Meeting
• Monthly Breakfast meeting with MD
GSK Culture• Reward Philosophy
– R3 - Recognize,Reward,Rejoice, Spirit Awards, Business
Excellence awards
– Paradigm Shift in compensation & benefits philosophy
• CLA to HRA
• Consolidation of allowances
• Post Retirement Medical Coverage
• Balance Life Support
– Flexi work schedule, Truncated work week, Leave
Management,“Thank God It’s Friday”,Clean your desk
“ Take away my money, take away my
factories, warehouses and land. But leave
my people and within 5 years I will have it
all back.” – Alfred Sloan
Organisation culture is a Organisation culture is a reflection of organisation reflection of organisation
leadershipleadership
Both must be driven by forward-looking Both must be driven by forward-looking strategic goals, and reinforced with strategic goals, and reinforced with
aligned organisation processesaligned organisation processes
Thank -You!!!