Presentation at HR leaders meeting - Bocconi Business School, MIlan Italy Rachna Karrol, Alberto Bernard

1. Meeting HR Leaders – SDA Bocconi,
Milan Italy
Content:
• Pfizer History & Evolution into the current Business Model
• Overview of Pfizer Inc approach to HR redesign
• Share Learnings & Dialouge
How to redesign HR to drive business value:
the experience of Pfizer worldwide
April 29, 2010
Rachna Karrol
Alberto Bernard

2. 2
Pfizer : An aggregation of 25+ companies!
(2000)AgouronGene/NetworksHickson Int’l
Plc
Institute Farmaco
Biologico Pagni
Plaistow
+ + + +
America Home
Products
A.H
Robbins
+
(1989)
American
Cyanamid
+
(1987–88)
+
(1992)
+
(1994)
Animal divisions of:
Kabi Pharmacia
Pharmacia
AB
Upjohn Company
Sugen (1999)
(1990)
(1995)
Kelco Chemicals
(1994)
(1985)
+
(1993)
+ +
+
+Kabi Vitrum
(1990) (1997) (1998) (1999)
+
(2009)
(2003)
– SmithKline Beecham Animal Health (1995)
– Restivo Italiana (1994 – through Roerig)
– Koshin Medical KK (1992)
– Vicuron Pharmaceuticals Ltd (2005)
– Idun Pharma (2005) — Apoptech (1994)
– CSL Ltd Animal Health Unit (2004)
Today
• 2010 Revenue Projection $67 to 69$ Billion
• Operating in over 120 countries with ~115,000 colleagues

3. 3
Pfizer’s new business model
Manufacturing
Platform Services
Enabling Functions
Business Units
Development
Sales &
Marketing
Medical
Nutritional
Health
Consumer
Health
Capsugel
Animal
Health
Emerging
Markets
Est.
Products
Oncology
Specialty
Care &
Vaccines
Primary
Care
Worldwide BioPharma Businesses (WBB)
Pfizer Diversified Businesses
(PDB)
Pharma
Therapeutics
Research Group
Bio
Therapeutics
Research Group

4. 4
People
We create an inclusive environment in which all colleagues are passionate about
their work, valued for their differences and enabled to maximize their
contribution and achieve their full potential.
Internal
We develop, operate and continuously improve our processes to ensure they
are effective and efficient, right first time, while protecting our colleagues, the
environment and the quality and safety of our products.
Pfizer Global Manufacturing Vision and Mission
Four Mission ElementsMissionElements
We partner with our customers, anticipate their needs in an ever changing
business environment, assure reliable product supply and develop solutions to
maximize access and value.
Customers
We meet our financial commitments, create value, enhance revenue and deliver
globally competitive costs making us integral to the success of Pfizer and our
Business Unit partners.
FinancialPurpose: We supply quality products for a healthier world.
Mission: We will be an integrated internal and external supply network, providing a
competitive advantage for Pfizer by offering fast, flexible and innovative supply
solutions valued by our diverse customers.
Fast, flexible, innovative ... commercially focused ... network driven

5. 5
The HR Model: Its Evolution
1.5 years ago . . .
• In county HR structure
➢ HR reported to Country or Site Leaders
• Minimal Regional HR Structure
➢ Mostly focused on coordinating efforts
• No transparency of HR spend globally
➢ No opportunity to gage redundant
spend or leverage the economy of scale
• Little requirement to align on core
processes
➢ Redundant efforts to accomplish similar
objectives
• HR professionals focused on multitude
of responsibilities
➢ Too much time spend on activities more
administrative in nature - less time for
value add strategic problem solving with
business leaders
Now . . .
• In county HR organizations report into
corporate HR
➢ Budgets now have central oversight
➢ Non-HR related responsibilities pulled
out of HR organizations
➢ Reduced HR headcount in country
• Regional HR Structure larger
➢ Aligned to business units to support
business unit specific HR strategies
• Global Shared Services for manager
self service to streamline administrative
HR tasks
• HR partnerships with line leaders more
focused on strategic topics rather than
day to day HR administration

6. 6
Pfizer’s HR Model
▪ On Line, easy to use access
to HR information, processes
and tools
▪ Primary channel to convey
service and information
On Line
▪ Provides manager-directed
coaching
▪ Strategic implementation of
business strategies
▪ Employee Relations – COE
reports to North America
regional lead
Client-Facing
Enterprise
HR
Divisional /
BU HR
Manager &
Operational
Support (MOS)
▪ Develops corporate-wide
programs aligned with the
organizational philosophy in
the areas of Talent (including
Diversity and Inclusion),
Performance, and Rewards
Enterprise
Partnering with the Business:
▪ Provides strategic direction
and will have limited
interaction with business
leaders
▪ Delivers the organization and
people plans that support the
business strategy which
include organizational
design, change, culture,
talent, and leadership.
HR Lead & Talent Org.
Capabilities
Partnering with the Business:
▪ Interfaces with business
leaders to drive organization
and people plans directly
impacting business results
▪ Supports managers and
colleagues in managing their
work-life decisions in a service
center and local operations
model
Global Shared Services
and HR Operations

7. 7
Critical Success Factors
Define Design
Develo
p
Imple
ment
Sustai
n
World wide
TOC
Divisional
TOC
Business
HR
Leads
MOS-Client
Facing
MOS
Operations
Other
Center of
Excellence
2. Any HR Process needs to be considered from end to end
3. Role Clarity: multiple parties with varied roles
Defining roles & connections
points in each process is a
work in progress but a priority!Divisional
Learning &
Dev.
1. Assessment & Appointment of HR professional with the requisite skills
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

8. 8
Roles Key Accountabilities
HR Leads
&
Talent &
Organization
Capability Leads
• Executing change work to build org capability around
business priorities
• Delivering a “unique” culture for the OpU that sparks
commitment and drives business results whilst complying
with the One Pfizer Culture
• Facilitating action plans which strengthen engagement
• Providing consulting support in org redesign that unleashes
the full potential of the OpU
• Facilitating the talent process and talent review meetings to
identify talent and co-design development programs to
further progress their capabilities
• Deploying enterprise-wide initiatives through the
development of senior sponsorship
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

9. 9
Roles Key Accountabilities
Learning &
Development
• Establishment of 5 Regional Learning & Development
Teams for Asia (APAC), Europe, Latin America, Africa &
Middle East (AfME) and North America
• Design consistent, adaptable and scalable development
opportunities for global use
• Provide support for learning technology, eLearning, learning
platform and operations governance, metrics and reporting,
along with finance and vendor management.
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

10. 10
Roles Key Accountabilities
Talent Acquisition
( US & Puerto Rico)
• Sourcing strategy with hiring manager
• Job posting
• Candidate sourcing
• Screening, Assessment and Selection methodology
• Offer negotiation
• Recruiting policies related to employee referrals, job
postings, compliance
• Recruiting technology
• University relations
Total Rewards • Competitive Market Pay Practices
• Compensation Program Design
• Compensation & Performance Management Systems
• Costs vs. benefit analysis
• Compensation Cycle Management
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

11. 11
Roles Key Accountabilities
MOS – Site HR
Leads
• HR lead and enterprise partnership
• Talent management in local market/site
• Alignment across Pfizer of HR programs and processes
• Compensation administration
• Manager coaching / consultation
• Policy harmonization
• Support Continuous of Global Shared Services
• On boarding / off boarding
• Termination / employee separations “Voluntary / Retirement /
ATS”
Employee
Relations
( US & Puerto Rico)
• Investigate ER cases and open door issues (“longer than 30
minutes”)
• Reporting metrics and trends to senior management
• Performance Improvement Plans (PIPs); corrective action
• Process improvement and standardization
• Policy alignment
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

12. 12
HR Global Shared Services:
Cultural and Behavioral Changes
HR GSS supports and enables manager accountability and
expectations aligned with “The Year of Engaging the Manager”
▪ Managers will be able to:
• Initiate and approve workforce actions
• Access improved workforce reporting and analytics
• Search online for HR information
• Access and utilize standardized processes and policies
• Utilize a global service center for consistent support
▪ Benefits for Managers:
• Increased accessibility to information online resulting in better leadership decisions
• Increased visibility to own organization and organizational data for business
planning
• Greater flexibility to manage people management processes
• Strategic HR consultation for Performance Management, Talent Planning, and other
HR strategies
Less reliance on HR and improved ability to make workforce decisions 1
2
Enterpris
e
HR
Divisional /
HR / TOC
Manager
&
Operation
al Support

13. 13
Learnings thus far
What is going well
• Cost Savings due to headcount
reductions
• Better global alignment on core
process
• Better alignment during
implementation of core
processes – quicker to end
users and cost effective
implementation plans
• Type of work HR Leads and
TOC Leads cover are more
focused than in the past
What we need to work on still
• Deeper and more thorough
change management needed
• Better pacing of GSS rollout in
relation to HR headcount
reductions
• Better stakeholder management
of the changes incited in HR
globally
• Increased skill building of HR
professionals on their “new
roles”
Your thoughts & Reactions?