Novartis Leads Learning Revolution in China
BASEL, Switzerland, March 7, 2007--For Novartis, learning programs remain an important tactic to take China's workforce up to speed in skill sets and to retain top managers, especially when the company is planning further investments.
"The investments in clinical areas must be matched by a concurrent investment in development," said Head Global Learning Frank Waltmann. "Several challenges remain in this area. Novartis will set the pace for meeting them within the region by leveraging our development strengths and connecting to our Chinese staff in ways that will help them commit to the company."
The paradox: Shortage among plenty
China's employee pool is different than anywhere else in the world. On one hand, the country produced 3.1 million university graduates in 2005, while the U.S. produced 1.3 million. However, fewer than 10 percent of these graduates in China have the skills to work for a foreign company. Moreover, employers in the region are beginning to compete more vociferously for these 10 percent, especially for entry-level, white-collar workers. And as mentioned, mid-to-senior level managers are scarce, and don't tend to stay on board very long, either.
Importing managers not as effective In the past, multinationals
relied on expatriate managers from Europe, North America and other
highly developed Asian countries to oversee their operations in
China. At the same time, 40 percent of these companies have
difficulty filling these roles. Local firms are now competing for
local talent, as well, causing a "reverse brain drain" in the
market. And the situation will only get worse: In 10 years, experts
predict that China will need 75,000 managers with international
experience. As of today, it only has 5,000 people who could fulfil
these roles.
"Leadership has become much more important in China. Not only in
top management, but at every level throughout the company," said
Novartis CPO Head China James Liu. "We're counting on powerful
Learning programs to help us meet these leadership goals."
Novartis needs managers with industry-specific skills. Therefore,
business needs will dictate curriculum focus to a very high degree.
"Novartis has significant investments in China for expanded
clinical trials; chemical analytical development and production;
and more," said Waltmann. "How will we possibility hope to meet our
goals there unless we embark on an ambitious program to attract and
retain talent in China?"
Novartis explores new possibilities for talent management Novartis
already uses a systematic approach to developing associates
worldwide. It organizes these activities in four main
categories:
a.. Internal focus: Growing leaders from within and filling 70
percent of internal open positions with internal associates b..
Commitment to codified development planning: Ensuring that each
associate has a development plan c.. Managing development on the
front line: Ensuring that each associate has a minimum of two
career and development discussions every year
The Novartis development structure also allows employees to hone leadership skills while they are fulfilling current roles. Its leadership standards and behaviours, functional competency models and talent management processes are embedded in both on-boarding training and during ongoing performance development processes for each employee. Accelerated development programs, mentoring options and other special programs also help create a culture of continuous learning. This will be very important in China because surveys show that Chinese managers often single out inadequate career development as one of the key reasons for their departure. Novartis will meet this need by focusing on internal talent within the region in three key areas:
· Develop them through traditional, but world class training
and enhanced on-the-job training
· Deploy them in stretch assignments and provide a clearly defined career path
· Connect them to their peers and other professionals
In addition, Novartis will implement several different career
tracks and offer development goals and training opportunities in
concert with these. A project management track, a management track
and a scientific track will fulfil the goals of the Chinese
workforce. These three areas will meet the gaps in the talent pool
in the region. They address the issues that Novartis has with
getting entry-level workers for scientific endeavours and research.
They also address the needs of these same workers for leadership
development, beginning with the most basic management skills for
people and for projects. Starting with these new hires, it can
ensure that the pipeline of talented people does not run dry.
"Throughout, a comprehensive awareness and communication program
will help them become aware of, and then take advantage of, the
investment we continue to make in their development and learning.
As they go from entry level to management to leadership, we hope
this will make them much less likely to follow the 8-12 month
pattern of leaving," said Waltmann.
The China Leadership Development Centre Novartis will fulfil these
development goals and, by extension, talent goals, through two
kinds of programs offered through a single entity: The Novartis
China Leadership Development Centre. The Centre encompasses these
goals using both regional and global learning offerings. First, the
BiMBA program launched to great effect last year. It brought 46
high potential Chinese staff members through a mini-MBA course over
18 months. Attendees worked in English in four-day-at-a-time
modules over a 4-8 week timeframe. The Learning Centre also offers
tailored, localized corporate programs to develop leadership,
marketing excellence, leadership of global projects and frontline
management skills.
"We were careful to adapt our global programs and make them
relevant to the challenges Chinese managers face in their markets
and the leadership and project-specific issues they face, as well.
It's not a one-size fits all solution," Waltmann said.
Connected leaders stay connected to the company Novartis is also
well positioned to build talent in the region because it is one of
the most localized companies. "Compared to other multinationals,
their presidents, VPs and even directors come from Europe or
America or Singapore. About 99 percent of Novartis' staff is
Chinese," said Liu.
This situation poses issues with the language gap, but also allows
Novartis to build another effective strategy for managing talent in
the region: Communicating to connect. The team is committed to
keeping employees up-to-date on the latest business developments
through monthly lunches with representatives from senior management
and staff. This helps close the "what's in it for me?" gaps that
cause people to jump from company to company. It invests Chinese
staff members in wider global strategies and allows them to feel
like contributing members of a team. They are not being expected to
follow directives from a disembodied voice: They will meet global
leadership one-on-one.
All regions and offices will be included when it comes to strategy
and building consensus behind broad company goals. Novartis is now
building an embedded communications pipeline that will reach each
regional office.
Novartis has also ensured Chinese staff takes longer-term business
trips to global headquarters in Basel and to other major sites.
This will help them expand their network and integrate more
completely into the corporate culture.
"We want our Chinese leaders to become more effective in China, of
course. But we also want them to become more effective in the
global Novartis organisation. This sense of community and
connectedness can be built into our culture in China via a coherent
learning strategy. We also have cohesive development goals for
every single person who works there. In that way, we can watch our
learning goals meet talent goals that will drive the business in a
very growth-oriented region. We're well positioned to get great
results," Waltmann concludes.
CONTACT:
Leslie Komet Ausburn
Berry Ecke Associates
210.479.7255 or lausburn@satx.rr.com
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