Aligning People with Strategy at GlaxoSmithKline (GSK)

Lisa Rohland-Dokos Director of Leadership, Learning, and Organizational DevelopmentGlaxoSmithKline Consumer Healthcare

Clarke Peterson Principal ConsultantAtlanta Leadership Consulting

The World of GSK

To improve the quality of human life

do morefeel betterlive longer

Our mission

by enabling people to

Who are we?

• We are one of the world’s leading producers of consumer healthcare products, prescription medicines, and vaccines

• Total company sales in 2009: $44 billion

• Over 99,000 GSK people working in 120 countries

How are we structured?

Research & Development

Manufacturing & Supply

Consumer Healthcare

Pharmaceuticals & Vaccines

What do our products do?

Prescription medicines • Our pharmaceutical products include treatments for asthma,

malaria, depression, migraine, diabetes, heart failure, digestive conditions and cancer.

Vaccines• We also market over 25 vaccines to protect against illnesses

such as hepatitis A and B, diphtheria, tetanus, whooping cough, typhoid and influenza, and cervical cancer.

Consumer Healthcare products• We bring dental health products, over-the-counter medicines

and nutritional drinks to millions of people. Many of our brands, such as Panadol, Aquafresh, Nicorette, Alli, Sensodyne, and Tums, are familiar around the world.

Our flagship products: Pharmaceuticals

Our flagship products: Consumer Healthcare

Fastest growth in the industry

+6.0+6.5

+7.0

+2.0 +2.0+1.5

+3.5

+5.0

Inclusion, diversity and healthy & safe performance

Meeting our mission: our five strategic priorities

Our five strategic priorities will enable us to transform GSK into a leading-edge company able to meet patients’ needs into the future.

Our commitment to corporate responsibility

• Improving access to medicines

• Patient Advocacy

• Our work with communities

Our community programs

Our key programmes include:

• Lymphatic Filariasis – donating albendazole for as long as it takes to eliminate the world of this disabling, parasitic disease

• African Malaria Partnership – programmes to develop effective malaria control behaviours and advocacy

• PHASE – hand-washing education programme for school children to prevent diarrhoea-related disease

• Product donations for humanitarian and disaster relief

• Regional community programmes in UK, Europe, US and Rest of World

• Supporting improvements in Science Education

Want to learn more about GSK?

Adding Science to the Art of Competitive Advantage

Aligning People with Strategy at GSK

• Partnership between GSK, Lominger International, and Atlanta Leadership Consulting

• Utilizing the Leadership Architect Suite of strategic HR resources

• Started with tools focused on Learning Agility and Succession

• Added Interview Architect and Strategic Effectiveness Architect in 2008

What is the STRATEGIC EFFECTIVENESS ARCHITECT™?

The tool is designed to help organizationsincrease the chances that they will be ableto successfully and effectively executeagainst their strategy by aligning what theyare able to do with their mission and vision

• The tool is made up of 95 organizational capabilities (items) organized into 20 clusters covering the things organizations have to be able to do to be successful

• The tool can be used through:– A Card Sort Deck

– A Paper Questionnaire

– An Internet Questionnaire

STRATEGIC EFFECTIVENESS ARCHITECT™?

• Strategic Accuracy and Clarity– Core Organizational &

Leadership Capabilities– Focusing on Competencies– Having a Competitive Strategy

• Strategy Execution• Managing Innovation and

Change

• Attracting /Retaining/ Motivating Talent

• Leveraging a Productive Culture

• Managing Profitability & Delivering Value

• Developing Future Leaders• Governance

Talking the Talk of the C-suite

SEA Dimensions and Clusters

SEA Alignmentology Process

Mission, Vision, Values and Strategy

Organization and Operational Capabilities

LeadershipSuccess

Profile(s)

TeamSuccess

Profile(s)

• Identify the mix of leader, people and organizational capabilities and competencies that are mission-critical to the current or future success of your organization and team

• What are you good at today?• What do you need to be good at today?• What do you need to be good at tomorrow?

• Identify gaps between your organization’s current capabilities and those needed to be successful in the present and/or future

• Create action plans to address the gaps

What will this process do?

It will. . .

Seven Basic Applications

Translating Strategy into Capabilities

Translating Capabilities into Strategy

Creating Leader Success Profiles

Creating Effective Team Competencies

Auditing Current Capabilities

Projecting Future Capabilities

Integrating Mergers and Acquisitions

Based on best practices, we recommend seven uses of the STRATEGIC EFFECTIVE ARCHITECT™

GSK’s Expert Sales Division

• “Expert” sales forces make calls on healthcare professionals (HCP), institutions, and professional schools

• Role of the Expert Sales consultant is to compel HCP’s to recommend GSK products so that patients are more compliant with their health and wellness regimen through the use of GSK products

» Establish rapport» Have a dialogue» Identify a need» Propose a solution» Issue a call to action

The Expert Sales Division’s Needs

• There was a need to align the division and its efforts to their organizational strategy, considering also how their strategy fits with the rest of the organization

• There was a need to determine the human capabilities needed to achieve that strategy

Our Meeting with the Sr. Team

• Introduction of the Strategic Effectiveness Architect

• Current state SEA card sort…

What is our current organizational capability?

What are our relative strengths and weaknesses within the 95 items?

Current State Card Sort Questions…

95 SEA Items

32Highest/

High 31Middle/Average

32Lowest/

Low

Current CapabilitySort

Our Meeting with the Sr. Team

• Introduction of the Strategic Effectiveness Architect

• Current state SEA card sort• GSK Strategies at four levels…

GSK Strategies

• VP of Expert Sales and her senior team considered their strategy in the context of the larger organization:– GSK Global– GSK Consumer Healthcare– GSK Consumer Healthcare North America– GSK Consumer Healthcare Sales North America– Expert Sales Group

GSK Strategies, cont.

• Each of six participants given a deck of index cards containing the strategic directions at each of the four levels.

• Used push-pin board for them to organize those goals by level. Picked the best.

• Rich discussion about their strategies and where they connected with or diverged from the larger org

Our Meeting with the Sr. Team

• Introduction of the Strategic Effectiveness Architect

• Current state SEA card sort• GSK Strategies at four levels• Discussion on flow and connection

between levels• Future state SEA card sort…

Can our leaders accomplish our strategic objectives with their

current capabilities?

Let’s find out…

Today vs. Tomorrow

What Organizational capabilities are Mission Critical

to meet our strategic objectives for the

What’s Our Strategy for the Future?

32 Mission Critical

31Useful/Nice to

Have

32Least Important

Future Sort

95 SEA Items

Our Meeting with the Sr. Team

• Introduction of the Strategic Effectiveness Architect

• Current state SEA card sort• GSK Strategies at four levels• Discussion on flow and connection

between levels• Future state SEA card sort• Gap analysis and plan to close

Our Meeting with the Sr. Team, cont.

• Introduction of Lominger Competency Library

• Translation from SEA to Competencies to create strategic competency model (reserved)

• Job Success Profiles based on competencies– Expert Sales Senior Team– Expert Sales Consultants

Success Profiles

Success Profiles identify the Competencies that are Mission Critical

Mission Critical is defined as: it would not be possible for someone to perform well in this job if they did not have better than average skills in this competency; these competencies would be a “have to have” to do well

Expert Panel Process

Select 6-10 people who know the job well– Current successful incumbents– Past successful incumbents– Bosses– Customers/HR

Discuss the job (use preliminary questions)Sort the cardsPost resultsReach consensus

Preliminary Profile Questions

What are the strategic goals of the organization or function?What are the deliverables/ expectations of

the job?What are some barriers to performance?What differentiates high performers?

Use your experience(s) to record and set context for a targeted card sort to identify a success profile

What Skills Do Expert Sales Consultants Need?

22 23 22

Don’t lose sight of the context

Lessons Learned

• Alignment between layers in a large organization matters

• Understanding the human capabilities required to achieve your strategies makes a difference

• Job Success Profiles contain both strategic and tactical competencies and both are critically important

Thanks very much!

• We both appreciate your time and participation today. Thanks for attending.

• For further information please contact:– Lisa.L.Rohland@gsk.com

(412) 200-3819– Clarke@AtlantaLeadership.com

(770) 500-5815