Aligning HR to Business Objectives at All Levels of the Organization Graham Hardiman Vice President Human Resources Worldwide Oncology - Pfizer
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1 Aligning HR to Business Objectives at All Levels of the Organization Graham Hardiman Vice President Human Resources Worldwide Oncology - Pfizer
2 HR Operating Plan Introduction Agenda Why we needed to develop an new Operating plan - Complex global business - Governance - Resource allocation in HR - Reduce duplication and unnecessary work - Align efforts How the plans are developed and used Real life example Summary 2
3 HR Operating Plan Rationale Benchmarking results (PwC) suggest greater prioritization of HR support that meet business needs. Benchmarking results (Hackett) suggest greater governance. Operating Plan Optimize the existing HR Operating Plan process to ensure it is: Directly informed by Business Priorities Integrated across HR at all levels Driving discipline/accountability Activities outside the plan are not done, unless goes through appropriate governance/approvals Key Components of Plan HR Business Partner Plan Understand the business and identify priorities Determine the right HR Interventions Highlight the key HR skills Create a Plan Change & Stakeholder Management Centre of Excellence Plans Content expertise, design and capability building required to meet enterprise and HR business plan HR Operations Plan Delivery of Core Services Implementation plan to support HR Business Plan Continue to drive operational efficiency Change & Stakeholder Management Implications for HR Elimination of HR work that is not aligned to the business plan Greater connection across HR roles and geographies Strong behavioral change - increased focus on priorities Enables governance 3
4 HR Operating Plan Key Deliverables HR Operating Plan Process & Governance Explains the annual / ongoing cycle and step-by-step process toward the completion of an integrated ONE HR annual operating plan linked to the business. HR Operating Plan Content One plan for each Business Unit, each COE and MOS, and one consolidated plan for all of HR; these plans highlight HR interventions as a result of enterprise and / or business needs. Core Services for Colleagues & Managers Set of Core HR Services for all Colleagues and Managers. HR work should be defined by these services and the annual HR Operating plan. Pfizer Confidential 4
5 HR Operating Plan Purpose Stronger partnership and alignment with the business Alignment and integration across HR ONE HR Role clarity and clear accountability Living process and document Ongoing dialogue & regular check-ins are key to success Pfizer Confidential 5
6 HR Operating Plan Ongoing Cycle HR Business Partners share Business Priorities 1. Business Partners, COE, HR Operations Consolidated Plan 5. COMMUNICATE PLAN 2. GLOBAL RECONCILIATION Align with Business Ongoing Review & Governance Stakeholder Management 4. HRLT REVIEW AND ENDORSEMENT 3. REGIONAL RECONCILIATION & INPUT Year 1: Launch & Learn Year 2: Refine & Enhance Pfizer Confidential Year 3: Evolve & Innovate 6
7 HR Leads COEs MOS Regional Forums HRLT KICK-OFF PROCESS Business Discussions & Preliminary Targets Aug COMPILE GLOBAL PLANS Business Outlook & BU/DIV Priorities with HR Interventions Enterprise Priorities & Programs to support BU/DIV Interventions Global Initiatives and Programs Needed Draft Individual Plans Sep RECONCILE GLOBALLY Global Reconciliation Cross-BU, Function and Enterprise Draft Consolidated Plan Sep RECONCILE REGIONALLY Regional Cross- BU/Function Reconciliation with input from Regions Draft Consolidated Plan Sep ENDORSE GLOBALLY Global Review and Endorsement of Consolidated Plan Oct 7
8 Key Components Consolidated HR Operating Plan The Consolidated Plan will include different filters: Individual Plans (Business Partner, COE, HR Operations ) Enterprise Needs Business Needs Key HR Interventions Timeframe (i.e., Q1, Q2 ) Regions Implications outside HR (Finance, Technology) Training 8
9 Business Outlook - ONCOLOGY Oncology Financials Revenue: $ B Growth: XX% IBT Growth: XX% Product Portfolio Sutent: $ XB Inlyta: $ XB Xalkori: $ X B - Pricing pressures across Europe & Asia - Core Markets Critical Business or Enterprise Priorities HR Interventions Timeframe Collaboration Partners Global Reconciliation Cross BU/Function Regional Reconciliation Cross BU / Function (if applicable) Ibrance Launch (US) Review resourcing around Ibrance launch in the US - Sales deployment - Marketing resources - Compensation - Succession Planning - Talent Acquisition Q1-Q2 - TR: Comp. Design - TA: Staff Up - Succession Planning: DTOC Consultation - Regional MOS - Compensation alignment N/A - This only impacts the US so there is no reconciliation across region Merck Alliance - Agree to headcount plan with business leaders - Talent Acquisition (Clinical 20 people in 2015; 60 in 2016) - Organizational Design -Build Alliance culture - Compensation / Grading Q2 -Q4 - DTOC Support: Org Design - TA: Staff Up - TR: Comp. Design - Consolidated resource plan with Oncology and WRD - Partner with WTOC for culture and TA strategy Action Plan & Owner - WRD - TA - Pfizer Oncology Product approval and reimbursement challenging and complex (China) - Review access / registration resourcing and capabilities - Organizational capabilities diagnostic Q4 - WRD HR Lead - DTOC - China MOS - GEP China alignment on talent retention strategy Action Plan & Owner - China MOS - Division HR Leads Unstable environments in UE / AfMe - Retention Plans Q1 - BU HR Leads - Total Rewards - Alignment on retention plans N/A Devaluation in LA Venezuela & Argentina Access / Pricing / IP issues (Mex, Chile, India) - Compensation Q1 - Review resourcing issues - GH&V / CMF intervention Q3 Total Rewards HR Leads Regional MOS - GH&V HR Lead - MOS - Currency alignment - GH&V alignment on access resourcing Action Plan & Owner - BU HR Leads - LatAm Regional MOS N/A 9
10 Enterprise Business Outlook Pfizer Inc. Financial Measures Revenue: $XXBn Adjust Diluted EPS: $XX Key Enterprise Initiatives: - Optionality - Global Culture Strategy - Coronet Critical Business or Enterprise Priorities HR Interventions Timeframe Collaboration Partners Global Reconciliation Cross BU/Function Regional Reconciliation Cross BU / Function (if applicable) Culture Imperative Reinforce the link between culture and business results - OwnIt Day - Sustainability Plan - Broadcasts Q1-Q4 HR Organization Awareness - Identify and resolve any overlaps and timing conflicts between enterprise and division culture work Action Plan & Owner - Completed by Regional HR Forums Cost Reduction and Transparency (Capital Allocation Imperative) Outsource Learning Delivery Ops. - Outsource delivery - Update funding model Q2 HR Operations N/A N/A Enable Oncology Merck Alliance - Culture for alliance aligned with OWNIT! - TA Strategy for unique needs Q2 HR Lead, WTOC - Align on timing and resources Onc HR Lead N/A Capital Allocation Talent Development - HiPo Development Planning - VP Pharma 2020 Q4 Advising - DTOCs - HR Leads N/A N/A Capital Allocation Talent Acquisition Strategy and Branding Q4 Advising - HR Leads - DTOCs -Alignment between TA and MOS on execution of strategy, branding and process Action Plan & Owner - Implement new TA model - Promote branding at regional 10 country level
11 Proposed Core Services for Colleagues and Managers Work in Progress Core Services for Colleagues (Mainly online) Payroll Administration Core Services for Managers (Segmentation defines face-to-face, virtual, online) Coaching to Country Leadership and above; BU, Enabling Function, Regional Leadership teams New leader integration Talent Management Support: Workforce Planning; Talent Planning and Succession Planning Country Management Forum Support Benefits Administration HR Operations (e.g., Employment contracts, Global Mobility, Employee data changes) Talent Acquisition Activities (HR Lead or MOS) Interview support provided only for senior leaders Interview support for external candidates Recruiter for external postings Offer support / compensation Compensation Support Union and Works Council support Employee Relations / Compliance / Separations Learning Initiatives (First line manager training, online managerial training) (PBC, PBA) HR Operations (e.g., Global Mobility, HR Admin, Workforce Administration) Colleague Development resources (e.g., IDP, Online Learning, GPM, etc.) Design, manage and communicate standardized processes and tools (e.g., position management, performance management, talent planning) Team effectiveness Pfizer Confidential 11
12 Summary Expectations Greater prioritization of HR support that meets business needs in line with an agreed Operating plan Integrated HR at all levels,functions and geographies Improved governance and discipline Elimination of unnecessary work Behavioral change 12
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