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KF Whitepaper on NVS Accelerated Succession

KF Whitepaper on NVS Accelerated Succession

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Published by Kevin Cashman

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Published by: Kevin Cashman on Sep 14, 2011
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10/24/2011

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 Accelerated leadership development andsuccession: Korn/Ferry’s impact at Novartis
by Kevin Cashman, Janet Feldman, Katie Cooney, and George Hallenbeck
One o the major challenges companies ace ismaintaining a steady pipeline o “ready now” candi-dates to move up into positions o greater scope andresponsibility. This challenge raises two questions:How can leaders get to know their organization’stalent on a deeper level as a prelude to individualcareer and organizational planning decisions?Then, how can companies also develop those indi- viduals to support their emergence as ully quali-ed leaders?
To address these dual needs, Korn/Ferry International created Leader-Succession, a customized program o individual assessment and eed-back, group learning, and executive coaching that accelerates anorganization’s ability to identiy, assess, and develop its high-potentialleadership talent. The program combines Korn/Ferry’s expertise intalent assessment and executive coaching with three concepts that arecritical to the development o leaders: Inside-Out, Outside-In awareness;trust-based infuence; and authentic contribution.In place since 2002 at Novartis, LeaderSuccession has been integral tothat company’s success in developing bench strength, retaining keytalent, and extending its recognition as one o the world’s most-admiredcompanies. It has helped create a base o sel-aware, infuential leaders whose ocus extends beyond individual results to a concern or the teamand the broader organization.“This is not skills training; it’s about who you are and the impact thathas,” said Mechtild Walser-Ertel, who has participated in several ses-sions as a talent management and organizational development leader
December 2010In 2002 Korn/Ferry launched aninitiative calledLeaderSuccession
SM
at Novartis,the global pharmaceutical andhealthcare company, to identiy,develop, and mentor its uturebusiness leaders. Our review o LeaderSuccession with Novartisexecutives ound that theprogram’s positive infuenceextended into unanticipated areasand reached broadly across thecompany. This paper discusseswhat the program has taught usabout leadership and the essentialelements, commitments, andapproach that are key to theprogram’s success.
 
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or Novartis Consumer Health. “This is a simple concept that resonatesstrongly. We are all individuals with dierent purpose, who lead dier-ently.”
Involvement with Novartis
Korn/Ferry’s involvement in Novartis’s succession planning initiativesbegan in 2002 when Thomas Ebeling (then CEO o Novartis Pharma), askedSenior Partner Kevin Cashman (then CEO o LeaderSource) to create aprogram to help Novartis identiy, develop, and mentor the company’suture leaders. The issue was critical or Novartis. In 2000 the companyhad recruited 79 percent o its talent rom outside the organization, andthough that number had come down, by 2002 it was still 58 percent.Novartis needed to reduce its outside hiring costs, leverage its investmentin recruitment, and develop uture leaders rom among its existing talentpool.Over the next eight years, more than 500 people rom Novartis’s pharma,oncology, generics, OTC, and CIBA Vision business units participated inLeaderSuccession programs (called Leadership Mentoring at Novartis).Participants and organizational sponsors came rom more than ortycountries on ve continents. By 2009, Novartis’s external hiring dropped to just 16 percent. While Korn/Ferry’s LeaderSuccession is not solely respon-sible or that dramatic shit, it has become a key component o Novartis’stalent development initiatives.While these results are impressive, the impact o LeaderSuccessionstretched into realms that neither Novartis nor Korn/Ferry initially antici-pated. Program sponsors not onlylearned about the talent in theirorganizations; they grew in theirown capacity as leaders and becamemore ully known to their people.Not only did individual participantsexpand their leadership capabilities they also brought the concepts back totheir teams, and helped them grow as well. A new understanding o therequirements and concepts o leadership evolved across the company.“The program not only gives us a better read on emerging talent, but italso triggers a turning point in how leadership is viewed at Novartis,” said Jonathan Peacock, then a nance and administrative ocer at Novartis who sponsored numerous sessions or employees in the nance unction.“There is a shit rom viewing leadership as a results-oriented track recordto bigger questions: How do I develop as a leader? How do I develop people?How do I want to be seen?”
The impact o LeaderSuccession stretched intorealms that neither Novartis nor Korn/Ferry initiallyanticipated.
This is a simple conceptthat resonates strongly.We are all individuals withdierent purpose, wholead dierently.”
Mechtild Walser-Ertel,
HR and organizational development leader,Novartis Consumer Health
 
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Earlier this year Korn/Ferry interviewed teen Novartis enterprise leaders,HR leaders, and program participants to better understand the source andresults o these positive changes.Leadership development programs that create lasting value connect theindividual’s internal motives, belies, talents, and intentions with theexternal needs o the organization and marketplace. Executives emerge aseective and inspiring leaders when they understand what they believe inand care about, how they make decisions and infuence others, and howthey behave and communicate in dierent circumstances. The best leaderscan articulate their mission and values, and are transparent with thosethey lead. Leaders also need lucid knowledge o how they are perceived ando how they impact their organizations, customers, and marketplace. Thisstate o sel- and other-awareness is the goal o the Inside-Out, Outside-Inprinciple o leadership development used in LeaderSuccession.“This work is so eective at creating sel-awareness,” commented sponsor Jürgen Brokatsky-Geiger, Novartis Global Head, Human Resources. “We wanted to bring our talent into a refective process that allows them tothink more deeply about their career aspirations and abilities and whatopportunities provide the best t. This benets the organization as muchas it does the specic individual.”
The power o the o-site
 At the core o LeaderSuccession is an o-site session—a two- to three-dayprogram o acilitated group learning, discussion, individual coaching, anddevelopment planning involving the CEO, business unit, or unctional head who serves as the program sponsor; a human resources partner; six toeight selected participants; and a Korn/Ferry acilitator. Crucial to thesuccess o the program is the ull involvement o the organizationalsponsor—the senior executive who has a vested interest in getting to knowand develop talent one to three levels below his or her own level in theorganization. This person’s active involvement elevates LeaderSuccession asa vehicle or identiying uture leaders by providing them with rst-handexperience with the high-potential talent in action.The agenda is structured, yet varied and customizable in its orm andcontent. A key component is Core Purpose work, in which the participantscrat a statement o their unique intention as leaders, and discuss how thisaects their contributions, roles, and assignments at Novartis. “Knowing your core talents and core values gives you power, energy, and clarity—both a north star and a rudder,” said executive sponsor Kurt Graves. Thisinormation becomes central to uture career discussions and is an impor-tant element o succession planning.
 Acknowledgments
 The ollowing individuals were contributorsto the content and direction o this paper:
 Andrea Saia
President and Chie Executive Ocer,CIBA Vision
Brian McNamara
Senior Vice President/General ManagerNovartis OTC, North America
Christelle Beneteau
Human Resources Head, Novartis GroupFinance
Guido Guidi
Novartis Oncology Region Europe Head
 Jonathan Peacock
Executive VP and Chie Financial Ocer, Amgen
 Jürgen Brokatzky-Geiger,
Global Head o Human Resources, NovartisInternational AG
Kurt Graves
Executive Chairman o the Board,Intarcia Therapeutics
Mark Sawyer
Global Head Human Resources, NovartisInstitutes or BioMedical Research
Mauro Ghilardi
Global Head Human Resources/SVP, OTC,Novartis Consumer Health
Mechtild Walser-Ertel
Global Head Talent Managementand Organization Development, NovartisConsumer Health
Mike Moshier
ormer SVP Human Resources,Novartis OTC
Neil Anthony
Global Head, Human Resources,Novartis Pharma
Peter Goethuys
 Vice President Human Resources GlobalOperations, Sano Aventis
Praveen Tyle
Senior Vice President, Global Head, NovartisBusiness Development & Licensing
Thomas Ebeling
Chie Executive Ocer,ProSiebenSat.1 Media AG

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