KF Whitepaper on NVS Accelerated Succession

8/4/2019 KF Whitepaper on NVS Accelerated Succession

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Accelerated leadership development and

succession: Korn/Ferrys impact at Novartis

by Kevin Cashman, Janet Feldman, Katie Cooney, and George Hallenbeck

One o the major challenges companies ace is

maintaining a steady pipeline o ready now candi-

dates to move up into positions o greater scope and

responsibility. This challenge raises two questions:

How can leaders get to know their organizations

talent on a deeper level as a prelude to individual

career and organizational planning decisions?

Then, how can companies also develop those indi-

viduals to support their emergence as ully quali-

ed leaders?

To address these dual needs, Korn/Ferry International created Leader-

Succession, a customized program o individual assessment and eed-

back, group learning, and executive coaching that accelerates an

organizations ability to identiy, assess, and develop its high-potential

leadership talent. The program combines Korn/Ferrys expertise in

talent assessment and executive coaching with three concepts that are

critical to the development o leaders: Inside-Out, Outside-In awareness;

trust-based infuence; and authentic contribution.

In place since 2002 at Novartis, LeaderSuccession has been integral to

that companys success in developing bench strength, retaining key

talent, and extending its recognition as one o the worlds most-admired

companies. It has helped create a base o sel-aware, infuential leaders

whose ocus extends beyond individual results to a concern or the team

and the broader organization.

This is not skills training; its about who you are and the impact that

has, said Mechtild Walser-Ertel, who has participated in several ses-

sions as a talent management and organizational development leader

December 2010

In 2002 Korn/Ferry launched an

initiative called

LeaderSuccession SM at Novartis,

the global pharmaceutical and

healthcare company, to identiy,

develop, and mentor its uture

business leaders. Our review o

LeaderSuccession with Novartis

executives ound that the

programs positive infuence

extended into unanticipated areasand reached broadly across the

company. This paper discusses

what the program has taught us

about leadership and the essential

elements, commitments, and

approach that are key to the

programs success.


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or Novartis Consumer Health. This is a simple concept that resonates

strongly. We are all individuals with dierent purpose, who lead dier-

ently.

Involvement with Novartis

Korn/Ferrys involvement in Novartiss succession planning initiatives

began in 2002 when Thomas Ebeling (then CEO o Novartis Pharma), asked

Senior Partner Kevin Cashman (then CEO o LeaderSource) to create a

program to help Novartis identiy, develop, and mentor the companys

uture leaders. The issue was critical or Novartis. In 2000 the company

had recruited 79 percent o its talent rom outside the organization, and

though that number had come down, by 2002 it was still 58 percent.Novartis needed to reduce its outside hiring costs, leverage its investment

in recruitment, and develop uture leaders rom among its existing talent

pool.

Over the next eight years, more than 500 people rom Novartiss pharma,

oncology, generics, OTC, and CIBA Vision business units participated in

LeaderSuccession programs (called Leadership Mentoring at Novartis).

Participants and organizational sponsors came rom more than orty

countries on ve continents. By 2009, Novartiss external hiring dropped to

just 16 percent. While Korn/Ferrys LeaderSuccession is not solely respon-

sible or that dramatic shit, it has become a key component o Novartisstalent development initiatives.

While these results are impressive, the impact o LeaderSuccession

stretched into realms that neither Novartis nor Korn/Ferry initially antici-

pated. Program sponsors not only

learned about the talent in their

organizations; they grew in their

own capacity as leaders and became

more ully known to their people.

Not only did individual participants

expand their leadership capabilities they also brought the concepts back totheir teams, and helped them grow as well. A new understanding o the

requirements and concepts o leadership evolved across the company.

The program not only gives us a better read on emerging talent, but it

also triggers a turning point in how leadership is viewed at Novartis, said

Jonathan Peacock, then a nance and administrative ocer at Novartis

who sponsored numerous sessions or employees in the nance unction.

There is a shit rom viewing leadership as a results-oriented track record

to bigger questions: How do I develop as a leader? How do I develop people?

How do I want to be seen?

The impact o LeaderSuccession stretched into

realms that neither Novartis nor Korn/Ferry initially

anticipated.

This is a simple concept

that resonates strongly.

We are all individuals with

dierent purpose, who

lead dierently.

Mechtild Walser-Ertel,HR and organizational development leader,

Novartis Consumer Health


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Earlier this year Korn/Ferry interviewed teen Novartis enterprise leaders,

HR leaders, and program participants to better understand the source and

results o these positive changes.

Leadership development programs that create lasting value connect the

individuals internal motives, belies, talents, and intentions with the

external needs o the organization and marketplace. Executives emerge as

eective and inspiring leaders when they understand what they believe in

and care about, how they make decisions and infuence others, and how

they behave and communicate in dierent circumstances. The best leaders

can articulate their mission and values, and are transparent with those

they lead. Leaders also need lucid knowledge o how they are perceived and

o how they impact their organizations, customers, and marketplace. This

state o sel- and other-awareness is the goal o the Inside-Out, Outside-Inprinciple o leadership development used in LeaderSuccession.

This work is so eective at creating sel-awareness, commented sponsor

Jrgen Brokatsky-Geiger, Novartis Global Head, Human Resources. We

wanted to bring our talent into a refective process that allows them to

think more deeply about their career aspirations and abilities and what

opportunities provide the best t. This benets the organization as much

as it does the specic individual.

The power o the o-siteAt the core o LeaderSuccession is an o-site sessiona two- to three-day

program o acilitated group learning, discussion, individual coaching, and

development planning involving the CEO, business unit, or unctional head

who serves as the program sponsor; a human resources partner; six to

eight selected participants; and a Korn/Ferry acilitator. Crucial to the

success o the program is the ull involvement o the organizational

sponsorthe senior executive who has a vested interest in getting to know

and develop talent one to three levels below his or her own level in the

organization. This persons active involvement elevates LeaderSuccession as

a vehicle or identiying uture leaders by providing them with rst-handexperience with the high-potential talent in action.

The agenda is structured, yet varied and customizable in its orm and

content. A key component is Core Purpose work, in which the participants

crat a statement o their unique intention as leaders, and discuss how this

aects their contributions, roles, and assignments at Novartis. Knowing

your core talents and core values gives you power, energy, and clarity

both a north star and a rudder, said executive sponsor Kurt Graves. This

inormation becomes central to uture career discussions and is an impor-

tant element o succession planning.

AcknowledgmentsThe ollowing individuals were contributors

to the content and direction o this paper:

Andrea SaiaPresident and Chie Executive Ocer,

CIBA Vision

Brian McNamaraSenior Vice President/General Manager

Novartis OTC, North America

Christelle BeneteauHuman Resources Head, Novartis Group

Finance

Guido GuidiNovartis Oncology Region Europe Head

Jonathan PeacockExecutive VP and Chie Financial Ocer, Amgen

Jrgen Brokatzky-Geiger,Global Head o Human Resources, Novartis

International AG

Kurt GravesExecutive Chairman o the Board,

Intarcia Therapeutics

Mark SawyerGlobal Head Human Resources, Novartis

Institutes or BioMedical Research

Mauro GhilardiGlobal Head Human Resources/SVP, OTC,

Novartis Consumer Health

Mechtild Walser-ErtelGlobal Head Talent Management

and Organization Development, Novartis

Consumer Health

Mike Moshierormer SVP Human Resources,

Novartis OTC

Neil AnthonyGlobal Head, Human Resources,

Novartis Pharma

Peter GoethuysVice President Human Resources Global

Operations, Sano Aventis

Praveen Tyle

Senior Vice President, Global Head, NovartisBusiness Development & Licensing

Thomas EbelingChie Executive Ocer,

ProSiebenSat.1 Media AG


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Participants also present to the group a Leadership Challengea business

or organizational issue that has tested their abilities as leadersand then

acilitate a discussion o how to address the situation. The ormat ostersdiscussion o real-world leadership issues, and at the same time replicates

the collaborative participative decision-making needed in leaders. It is not

easy to say, I need help in solving this problem, commented sponsor and

global business development leader Praveen Tyle . That vulnerability is

really critical. Not everyone embraced that. This is a dierentiator or

those who did.

In another key exercise, called Four Rooms, participants refect on their

skill and comort level relating to others in diverse settings: in a close

relationship, in gregarious networking situations, as experts making a

presentation, or as acilitators addressing the unoreseen. This exercise,too, is ollowed by observations and eedback to help the participants

understand how they reacted and why. The great value o this exercise,

said sponsor and HR executive Peter Goethuys, is that they can relate what

they were eeling in that situation to the ways others experience them.

Ultimately, what emerges is a sense o the unique way the individual

responds to and infuences others as a leader.

Other components explore the concepts o personal, relational, and contri-

bution power, and help the participants commit to changes that will have a

real impact on their own perormance and that o their teams and larger

organizations. The o-site also includes social and/or physical activities

designed to promote personal connections among participants and give the

sponsor an opportunity to interact with the participants outside o the

work setting. Participants have made powerul networking connections,

which are especially valuable or people who work together in a virtual

organization but who rarely come ace-to-ace.

In addition to the eedback they get rom their peers during the o-site,

participants also meet in one-on-one coaching sessions with the organiza-

tional sponsor, the HR sponsor, and the Korn/Ferry acilitator. These

sessions may directly address career development and succession planning,

or may be more broadly related to

their development as leaders. This

cycle o discovery, expression,

eedback, and coaching requires

openness, authenticity, vulnerability,

and (hence) a sense o trust and

saety in the room. It can be transormative, as participants move beyond

expected behaviors to reveal their real strengths and contributions.

At the end o the o-site, participants will have completed a LeaderPlana

one-page document that captures key themes rom their participation, and

includes their statement o Core Purpose as well as their development

commitments.

The power o integrated learning

Research has shown that classroom learning

carries the most impact when it is surrounded

by preparatory work that builds trust in the

process, and post-session coaching that

reinorces behavior change.

Our teen interview respondents recognized

the impact o each o the elements o the

program. When asked what elements o the

program they considered most important:

14 mentioned o-site and post-session

coaching

12 mentioned pre-session assessment and

eedback, as well as the useulness o the data

11 cited the o-site ocus on authenticity,

trust-based learning, and awareness

13 mentioned specic o-site exercises,

including (most oten) Core Purpose and the

Leadership Challenge

Others mentioned the structured yet custom-

ized fow o the program, and the opportunitiesthe o-site oered or refection and connection

to peers and organizational leaders. The

involvement o the organizational sponsor, the

skill o the acilitator and the alignment o the

program with the needs o the specic sponsor

were also mentioned as key.

Participants have made powerul networkingconnections, which are especially valuable or people

who work together in a virtual organization but who

rarely come ace-to-ace.

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O-sites have sometimes produced immediate, dramatic decisions about

roles, structures, and even unding levels. Ater one session, a division

leader realized old strategies were no longer working, and told an executiveparticipant to tear up her plan and start over with expanded resources.

Assessment, eedback and coaching

LeaderSuccession actually gets under way a ew weeks beore the o-site,

with assessments* and 360 inventories that are reviewed with each partici-

pant in a condential conversation with a Korn/Ferry executive coach.

In this conversation, the coach helps the individual participants ocus on

their own process, responses, and intentions. This sel-awareness illumi-

nates the inormation rom the 360 tools and also helps the participants

understand how they are perceived in their business interactions. This

pre-session conversation gives the participants a sense o trust in the

process, a common language or development, and an initial commitment

to their growth. By the end, each participant identies two or three initial

development objectives to explore at the o-site. Korn/Ferry provides a

written summary o assessment results and the coachs observations to the

organizational and HR sponsors or their use at the o-site.

Following the o-site, participants again meet with their Korn/Ferry coach,

usually or three sessions over the next our to six months. This interaction

deepens and reinorces any newound insights, and helps the participants

pursue their development objectives and grow as leaders. The coaching

combines deepening understanding with practical, real-lie application and

supports tangible change in behaviors and eectiveness. Because o the

power o the coaching interaction, many participants seek out additional

coaching hours or enroll in Korn/Ferrys Executive to Leader Institute, an

intensive in-residence program or senior leadership development.

The coaching is absolutely critical to the success o the program, said HR

leader Walser-Ertel. Participants have taken a lot away rom the coaching

sessions. They really ortiy the development plans and make them take

things more seriously.

Impact on development and succession

Organizational sponsors at Novartis reported breakthrough learning in

program participants, with signicant growth in clarity, condence,

impact, and accountability. Some results were immediately visible during

the o-site. One individual went rom being a very intelligent person with

diculty connecting to others to relating both rom the head and the

heart, said sponsor Andrea Saia, CEO o CIBA Vision. He now takes on

challenges with an unoreseen passion.

* Assessment tools used have included Korn/Ferrys

Decision Styles, which evaluates an individuals

thought process, leadership behaviors, emotional

competencies, career motivators, potential, and

ability to learn rom experience. Korn/Ferrys

e-Choices, a multi-rater tool that measures

learning agilitya actor used to identiy

high-potential talenthas also been a key part o

the Novartis program. Novartis uses its ownLeadership Standards 360 tool to measure

perormance against key leadership competen-

cies; at other organizations, Korn/Ferrys Voices

360 or Survey o Infuence Eectiveness would be

appropriate. Each o these instruments empha-

sizes sel- and other-awareness.

One individual went rom

being a very intelligentperson with difculty

connecting to others to

relating both rom the

head and the heart. He

now takes on challenges

with an unoreseen

passion.

Andrea SaiaCEO o CIBA Vision.


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In other cases, a shit in behavior is quickly revealed back in the oce. An

individual who we newly recruited came in as a very hard charger and

wasnt tting with the environment, Saia added. Ater the program hereally listened and learned. The eedback he got was really impactul. This

really accelerated his integration and ongoing success.

The Novartis program also served as a clariying orce in the development

o succession plans. The program helps us consider the entire picture

when making critical career decisions or individuals. More than just their

skills come into consideration, commented sponsor Guido Guidi, Region

Europe Head or Oncology, based in Italy. This is particularly useul in

evaluating senior talent: Do they have the motivators, values, tenacity, and

courage? Can they meet challenges and lead the entire organization in the

right direction?

For sponsors, there was another unexpected benet: Thinking through the

design o the program claried their organizations needs or Novartiss

senior leaders. Decisions become easier when you have an aligned point o

view on talent, Saia said. The program also conrmed and strengthened

the pipeline. Some didnt see leadership in their uture, but participants

expanded their notions and expanded their views.

Mark Sawyer, a global HR leader with Novartis, echoed that preparing or

the program catalyzes talent planning. Just thinking about who we are

going to invite gives us a chance to do an overview o our talent and thinkabout who might be our uture leaders.

Impact on sponsors

Program sponsorsthe CEOs, business unit, and unctional heads whose

organization is participating in LeaderSuccessionbenet immensely rom

this opportunity to observe and interact with the participants. Not only do

they learn about the talent in their organizations they oten gain insight

into their own capabilities as leaders.

The program orced me to refecton some questions being asked o the

participantslike watching the lm

and suddenly you are in the scene,

said Christelle Beneteau, an HR sponsor at multiple programs. The pro-

gram energized me and conrmed my career direction. It reinorced what

is important in my lie.

Tyle, the global business development leader, said he took away lessons in

dealing with individual personalities, and discovered how much valuable

eedback he could get rom his sta. Ebeling, the ormer Pharma CEO,

Sponsors not only learn about the talent in theirorganizations they also oten gain insight into their

own capabilities as leaders.


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ound himsel learning rom the participants as well. You see their

external skills, what makes them tick, the huge diversity o approaches to

problem-solving. You see the great courage that people have to conronttheir issues and to share with others, he said. This is always an inspira-

tion to me as a leader. Participants also get a better sense o their leaders,

which improves trust and communication.

Lasting impact across the company

LeaderSuccession is ocused on the identication and development o

individual talent, but its eects are elt across the organization. As partici-

pants step up into bigger roles and emerge as more powerul leaders, the

eects ripple outward.

A lot o people who were individual contributors became aware that a big

part o the success o the company depends on how good people are at

working together, said Peter Goethuys, the HR executive. People advanced

in their thinking on these behaviors. They see the collective, the organiza-

tion, and the culture is evolving to one o collaboration.

The program brings people together, Ebeling said. It creates networking

benets or the participants, and they also eel that they can connect to the

CEO. I see a high level o interest in and consciousness around leadership as

an issue throughout the organization.

When asked what they might do to change or build on the program,

several respondents indicated a desire to build on the changes they had

already seen in their organizations. Some suggested programs to help

participants continue their interaction with real-time challenges, such as

ollow-up on how they lead in times o crisis or change. Others suggested a

six-month or one-year ollow-up to deepen lessons learned, renew network-

ing connections, and keep the evolving organization and its leaders con-

nected to the principles and practices o leadership they experienced in the

program.

Ebeling is among those who recommends this kind o organizational

ollow-though: We held ollow-up meetings six months ater their partici-

pation to discuss the impact on the business, he said. Everyone talked

about a specic issue they had handled. Most people ultimately became

better perormers.

This continued interest betokens the potential o Korn/Ferry to deeply

integrate with and support the succession planning and leadership develop-

ment initiatives o an organization. It also illuminates the long-term

thinking that makes a company like Novartis successul.

Results o LeaderSuccession

at Novartis

Participants bring their learning back to

others. Concepts are pushed down throughthe organization.

New openness and trust spread throughout

the organization. Participants better under-

stand the CEO/organization leaders and vice

versa.

Depth o talent is identied. Organization

gains a more ocused point o view on talent,

enabling better decisions on whom to develop

and promote.

Leaders grow in condence, authenticity, and

comort with who they are. They understandthe value o their roles and how to create

value or themselves and others.

Participants engage in teams more success-

ully and create connections that continue

beyond the program.

Leaders learn to speak openly with

one another and to collaborate on decision-

making.

Attention widens rom short-term results to

vision or the uture.

Program sponsors benet as much as

participants.

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Kevin Cashman is a Senior Partner, CEO and Board Services,

Korn/Ferry International.

Janet Feldman is a Managing Principal with Korn/Ferry International.

Katie Cooney is a Senior Consultant with Korn/Ferry International.

George Hallenbeck is Director o Intellectual Property at Korn/Ferry

Leadership and Talent Consulting.

About The Korn/Ferry Institute

The Korn/Ferry Institute generates orward-thinking research and view-

points that illuminate how talent advances business strategy. Since its

ounding in 2008, the institute has published scores o articles, studies,

and books that explore global best practices in organizational leadership

and human capital development.

About Korn/Ferry International

Korn/Ferry International (NYSE:KFY), with a presence throughout the

Americas, Asia Pacic, Europe, the Middle East, and Arica, is a premierglobal provider o talent management solutions. Based in Los Angeles, the

rm delivers an array o solutions that help clients to attract, develop,

retain, and sustain their talent.

Visit www.kornerry.com or more inormation on the Korn/Ferry Interna-

tional amily o companies, and www.kornerryinstitute.com or thought

leadership, intellectual property, and research.

2010 The Korn/Ferry Ins

KF Whitepaper on NVS Accelerated Succession

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