Talent Management in Asian Pharma Markets. Presentation By: Charles Moore- Global Managing Partner, Life Sciences Practice, Heidrick & Struggles

Transcription

1 Talent Management in Asian Pharma Markets Presentation By: Charles Moore- Global Managing Partner, Life Sciences Practice, Heidrick & Struggles 0

2 Heidrick & Struggles Global Talent Index Heidrick & Struggles has developed The Global Talent Index (GTI) in co-operation with the Economist Intelligence Unit to research & map talent as a global commodity over a five year period. Thirty countries were selected based on geographical spread and availability of comparable data and a combination of quantitative and qualitative data has been used to create the Global Talent Index. The Global Talent Index for 2012 shows broad stability in the rankings, as might be expected over a relatively short time interval. Nonetheless, there are a few interesting movements in emerging markets. The map uses colour to indicate at a glance how countries score at nurturing talent in 2012, from red-hot beds to blue cooler climates

3 Heidrick & Struggles Global Talent Index- The Asia Story

4 Pharma Goes From Traditional to Entrepreneurial Model Source: KMC Analysis based on Bain & Company report

5 Creating a Talent Shortfall in Emerging Markets Major Trends Affecting Pharma Talent in Asian Markets Pharma companies, historically unsuccessful in grooming strong general managers, have had their entrepreneurial management talent eroded in R&D, sales and marketing In the last 15 years, most of the traditional Pharma companies were focused on hiring only sales staff in Asia, neglecting other critical segments like manufacturing and R&D Gen Y population in emerging markets are ignoring traditional professions. The most popular jobs are in banking, consulting, IT and services sectors. The industries that elicit net negative perceptions are chemical, Oil & gas and the pharmaceutical industry (Source: Corporate Reputation Watch 2009) Asian nationals are highly brand conscious, Pharma companies have not developed strong brand following in the region Asian generic companies especially in India have entrepreneurial roots and often talent from there finds it difficult to adapt to MNC culture Performance is getting masked in the era of economic downturn as expatriates and returnees look towards Asia for opportunities without proper understanding of the current markets dynamics In-licensing and alliances create new talent development models and as partners demand and receive larger, often overlapping responsibilities in collaborations (e.g., co-promotion) and broader roles in decision-making (e.g., in co-development), larger drug firms are paying more in non-cash costs and risking more frequent failures There is often a disparity between seasoned marketers who are put in leadership positions when a launch is about to take place and the HQ individuals who may have been taken on either from business schools or consultancies As the offshore trials industry continues to explode, lack of experienced clinical research employees in the region is slowing down progress and leading to fierce poaching between firms

6 Critical Workforce Segments for Emerging Markets- Trends and Implications Sales & Marketing Fading blockbusters Increasing stakeholders for healthcare Pharma adapts full- fledged CRM Applying consumer marketing principles Multi-market and multi-therapeutic expertise Knowledge of patient advocacy/assessments Multi-channel marketing experience FMCG/Consumer sectors continue to feed talent Organizational buy-in and knowledge management Stakeholder approach - local market intelligence from field to HQ used for forecasting R&D Shortage of R&D leadership in pharma Waning pipelines and R&D expenditure Outsourcing & licensing models create growth centers in emerging markets Offshoring clinical trials/discovery R&D becomes an international discipline Attracting talent from academia/sectors with longgestation periods and heavy regulation Business acumen/strategic oversight in demand Integrated understanding of IP laws, scientific expertise and business strategy for leaders Ability to manage decentralized intellectual capital resources Language and cross-cultural skills are critical Downturn re-emphasizes decision making flexibility in R&D leadership vs. relentless pursuit of innovation and discovery Restructuring Growth Phase Downsizing/cost cutting Acquisitions/Investment

7 Critical Workforce Segments for Emerging Markets- Trends and Implications Supply Chain and Distribution Shifting internal supply chain focus and skill set for emerging markets as SCM metrics are redefined Accelerated time to market/ offshoring Operations moving to untapped inland cities Exposure of ethical dilemmas will provide opportunities for change Pharmacy deregulation leading to the rise of the in-supermarket pharmacy From tactical (QC, Mfg.) to analytical & strategic (business analytics, channel strategy, forecasting) Integration of local market needs with global designs, research and development functions Reduced proclivity to attract capable talent Executive suite focus and involvement and demands for accountability Knowledge of Retail practices knowledge factorygate-pricing, RFID and increased data sharing Regulatory, Quality and Compliance Shortage of regulatory talent with global exposure Acquisition of mid-cap by big pharma Offshoring clinical trials & manufacturing Patent and IP threat from generics PWC estimates that IP account for 50% of pharma market value Expats and diaspora groups in India, China, South- East Asia will fill this gap International market-specific knowledge Knowledge of IP regulations and trade Laws Legal talent with knowledge of pharma domain Surging demand for Pharma IP talent

8 Pharma Talent Cycle in Asia Has Come A Full Circle Dichotomy-Theory & Practice Contrary to expectations, cultural and organizational integration is an issue Expectations in a global marketplace are mismatched Outward Migration Scientific talent from countries such as China and India left for abroad due to lack of opportunities They got recognition, funding and lucrative career perks Bringing Back Pharma Talent MNC leverage country-specific experience Local players want someone with global perspective Led to Talent Paradox at Home Abundance of entry level professionals and lack of talent at mid-management and top Niche competencies restrict crossover talent from other sectors Recession Fuels Homecoming Returnee and expat talent look for alternate opportunities to work in a growing, transforming market Pharma executives in noncritical roles abroad return to be counted

9 The Talent Paradox for Asian Markets Abundance at entry-level offset by huge gap at middle and top management Qualified is not same as employable May lack MNC background & exposure to matrix structure Home-Grown Talent Entrepreneurial approach suited for new ventures Understanding of the Local Way. Flexibility to role, location changes Corporate governance Attrition to emerging sectors such as Insurance, Health and Lifestyle, Corporate hospitals Lack of cross-over talent from other sectors leads to poaching Returnee Talent Understanding of both worlds Cultural familiarity Educated overseas, relevant MNC experience Higher designations and greater responsibilities Potential problems with fitting in / acceptance from local team Less easily forgiven for cultural faux pas than expat Can be expensive Managing expectations Language / cultural barriers Foreign Expatriates Understanding of typical MNC norms & standards Global perspective Leverage global relationships and organizational buy-in Tend to require the use of 3 rd parties when dealing with authorities Full expat package = costly Hiring a person on expatriate terms is far complex

10 Talent Development in Asian Markets Potentials Grey Community Rough Diamonds who have the substance, intellect and desire to be successful, but are easily overlooked as they are not a polished product. Exist in a Grey Area where performance is not clearly visible as organization do not have tools or performance management systems to properly assess and manage This category of employees is the most critical for businesses to build a high caliber and sustainable leadership team in Asian markets If business growth is 20% to 30% per year, yet one-fifth of company executives are hidden in a grey zone of competency Requires a talent development model which provides an identification, development, assessment, retention and training program culturally in tune with real situation Proper and complete assessment of talent pool is vital for competitiveness and survival- Multinational HR programs are based on a mature market model, it is difficult and even dangerous to make hasty decisions about performance. In dynamic and competitive markets companies cannot afford to manage their business based on mature market model any longer

11 Talent Vitality Curve for APAC Companies struggling to create a solid mid-management core as they find it difficult to manage potentials Companies require better understanding of low performers. The first challenge should be to evaluate their grey community of executives as either potential or low performance Lack of depth in core management ranks ( lead and sustain categories) leads to requirement for expatriate or local plus (foreign nationalslocal payroll) employees Employees in the sustain category are often poached or considered for roles that they are not capable of performing. It is the promotion of executives from the sustain to lead category which contribute heavily to over paying and over titling in Asian markets

12 A Comprehensive Talent Management Strategy Critical Workforce Trends Critical Workforce Segment Business Priorities Capability Develop Commitment Identify/Rationalize/Validate Manage Performance Deploy Alignment Connect Integrated Talent Management Strategy- Developing, Deploying, and Connecting Critical Workforce Segments in Emerging Markets Recalibrate Human Capital Program Performance Management Reward Recognition Workforce Movement Knowledge Retention Organizational Learning

13 Heidrick & Struggles: What we Do? Identifying & Attracting Transitioning Succession Planning Leadership Pipeline Promotion & Rotation Talent Leadership Talent Recruiting & Hiring Onboarding & Integration Engaging & Retaining Continuous Learning & Development Experiences

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