Case StudyGenentech’s Work Culture and Practices

Prepared By:Anamika RayAnkur SainiAnkur SharmaNeha BehnotHarender SinghPrerit Sharma

Presented To:Dr. Shalini Khandelwal

INTRODUCTIONFounded in 1976 by Robert A. Swanson and Dr. Herbert W Boyer, considered as the founder of the Bio-technology Industry.

Headquartered in south San Francisco California U.S.

Employs more than 1,100 researchers and scientists.

Focuses its efforts on five disease categories: Oncology, Immunology, Tissue Growth and Repair, Neuroscience and Infectious Disease.

Values are Integrity, Courage and Passion.

Genentech regularly receives awards and recognition for its overall performance as a company, its management, its workplace culture, its contributions to the community and its patient advocacy.

Robert A. Swanson & Dr. Herbert W Boyer

BACKGROUND

• In mid 1970 Swanson approached Boyer to explore the commercial potential of genetic engineering , this led to the formation of GENENTECH.

• The success of GENENTECH encouraged biotech researchers to join commercial ventures.

• In 1980 GENENTECH raised $35 million through IPO.

• PROTROPIN growth hormone became the first recombinant pharma product to be manufactured and marketed by a biotech company.

• In 1990 it completed a $2.1 billion merger with Roche Holding Ltd.

• In 2006 it announced ‘Horizon 2010’ a new corporate growth strategy.

• GENENTECH’s revenue in the year 2008 was $13,418 millions.

ORGANIZATIONAL CULTURE

At Genentech

Swanson wanted to create an organization that the best scientists in the US would want to join. He realized that scientists and researchers liked to have a certain amount of freedom in their work. Therefore, he played an important role in fostering elements like freedom for employees, flexibility, and informality in Genentech's culture...

Boyer strove to make an employee friendly environment, and a culture that resembled the atmosphere in university labs, He encouraged researchers at the co. to publish their research discoveries in journals, to establish reputation in scientific circles

Robert A. Swanson

Herbert W. Boyer

The culture at Genentech was informal in terms of dress code, titles and the office space allocated to executives

Friday afternoon parties named ‘Ho-Hos’ were introduced in the early 80s

HO-Hos

•Rare at biotech co.,

•Contributed to

establish as one of the

best work places in the

industry

•Interaction sessions

•Stress busters

“Discretionary time”

Genentech provided its employees with opportunities to dedicate 25% of their work time to work on projects of their choice.

75% assigned work 25% dream projects

Achieve Career

goal

Work of interest

Motivated

Employees Organization

Significant work result

benefits

No work undergo

Motivated employees

• Budget allocations with the involvement of the Researchers

Project Proposals – researchers

Research Review Committee(RRC)

R&D budgets

Priority of the projects

• Learning opportunities for administrative support staff and employees - “Administrative Professionals Appreciation Day”

• Employees professional growths

Surveys + training programs

Development courses for skill enhancement

Online courses were available to manage time

Special courses for employees identified for having

leadership skills- “fastracking managers for success”

•Work in collaboration

• Emphasized on its motto “In Business for Life”-to create products that would make their patients live better. The walls of the office had pictures of patients treated with co. products

employee practices

•Respect and fairness towards all employees

•Supported companionship amongst employees•Initiatives for Employee friendly environment

~Interactive lunch sessions with the senior management

~Celebrating together occasions•HRD introduced web casting within the co. This helped connect the top management ,employees and staff together•Fun culture

“working here has never been just a job because much emphasis is placed on how work and personal

commitments can coexist”

Employee Awards & Recognition

• Periodic recognition of employees for contribution to the organization.

• Cash bonuses called “GenenChecks” were also awarded to teams or individuals.

• Cash bonus was also paid on the referral program.

• T-Shirts and anniversary recognition awards.

• Upon every major achievement, the company held a large party.

• The company provided “Stock Purchase Plan”.

• Main focus was on science and research and to help patients with medical needs.

Leadership• Levinson, who succeeded G. Kirk Raab, was more focused

on management.

• Sending of quarterly e-mails to employees providing them with various information and asking for feedback.

• Levinson used his finance and information technology skills brought the company out from a bad phase.

• Apart from Levinson, there were other top executives who were considered as effective leaders.

“Diversity in Action” Plan• Formulation of “Diversity in Action” plan (DIA) in

2001 for recruitment of diverse talent pool.• Formation of “Diversity Network Associations” for

support and networking activities.• Launching of “Genentech Scholars Program” for

financially weak students.• In January 2005, four employees were named as

“Diversity Champions”.

AT GENETECH

• Played role in creating informal culture

• Rigorous recruitment procedure for scientists

• No discrimination at workplace• Low yearly employee turnover

rate(5%)• Positive impact of Orientation

program• Informal meetings• It encouraged its employees who had

dropped out college, to continue and complete their studies

• Offered annual tuition reimbursement of up to $10,000

• It discovered and nurtured talent internally (INTERNAL TRANFER PROGRAM)

• Promotion rate grew from 12.3% in 2001 to more than 16% in 2004

• Genentech was largely non-hierarchical.

• Genentech's employee benefits program was considered to be the best in pharmaceutical industry

• Working part time-20 hours a week made employees eligible for the benefits offered to full time employees

• Employees received 12 paid holidays a year

• Guaranteed Ride Home Program

EMPLOYEE BENEFITS

• Offered family and child care and working mother assistance

• It provided legal adoption assistance of up to $5000

• Offer to choose 3 medical plans• Corporate bonus program• It provided on-site personal

banking facilities on its campus

GENENTECH CULTURE AT RISK ?

Since 1990’s Genentech had featured on the best employer list of many magzines • Fortune• Science• Working Mother• EssenceThe company apart from this , Genentech also won many awards for its achievement and work culture. Since its inception company had been keen on recruiting the ‘best academic minds ’ , it was one of the first companies for which academicians had adopted to work. One of the main reasons why Genentech had been able to maintain its work culture was of its relatively small size . According to some company executives , whatever has been achieved in terms of employee commitment , satisfaction and loyalty over the years had been possible because Genentech was not a very large company and most employees were located in the company’s main campus The total number of employees at Genentech exceeded 9000 in 2006 and it had recruited an average of 150 employees per month. It also anticipated a growth in staffing by more than 15% by the end of 2006. however, Genentech seemed well on its way to becoming a large company and a lot of aspiring scientists were pursuing carriers in that field. And as Genentech grew and new employees were recruited , there was the possibility that the company would lose some elements of its much admired culture.

• Trust and Respect• Scientific Leadership• Superior Products and Customer Focus• Exceptional People• Frank Interviewer• Teamwork and Collaboration• Open, Direct Communication• Diversity• Informal, Enjoyable Environment

Strengths

• Grooming scientist at Genentech.• 9000 employees in 2006, but only 1000

number of sales force.• Genentech’s Product marketed by Roche.

weakness

• Learning opportunity for administration support staff.

• Meeting of new recruits with top level company executive.

• Scholarship program for employees.

Opportunities

• Pessimistic view of researchers regarding joining Genentech.

• Growing number of competitors.• CEO Raab scandal.• Government regulations

Threats