3071a art liem final

8/12/2019 3071a Art Liem Final

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Using Hyperion Performance Scorecard toDrive Continuous Improvements at Pfizer

Art Liem, Associate Director, Pfizer, Inc.

Session #3071A


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3071A | Using Hyperion Performance Scorecard to Drive Continuous Improvement at Pfizer 2

Agenda

1) Provide a brief overview of Pfizer and PfizerGlobal Research & Development

2) Demonstrate how PGRD uses HyperionPerformance Scorecard to drive ContinuousImprovement

3) Introduce Total Score Management the processPGRD uses to operationalize scorecards

4) Review our Lessons Learned


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Agenda






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Who is Pfizer?

Pfizer is the third largest company in the US* and the largestpharmaceutical company in the world

*Based on market capitalization as of 10/20/03


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Pfizers Top-Selling Products

14 Top-sellingPharmaceutical Products

Lipitor

Norvasc

Celebrex

Zoloft

Neurontin

Viagra

Zithromax

Diflucan

Xalatan

Detrol

Camptosar

Genotropin

Medrol

Mirapex

PfizersConsumer Healthcare Brands

Listerine

Nicorette

Benadryl

Sudafed

Rogaine

Ludens

Dramamine

Zantac 75

Visine

Lubriderm

Neosporin

BenGay

e.p.t

Pediacare


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Pfizers R&D Division

Pfizer Global Research & Development (PGRD)provides the engine for Pfizers future growth PGRD is responsible for discovering and developing new

and innovative medicines

PGRD overview: 5 major R&D sites in the United States, Europe, and Asia Over 14,000 employees Operating budget of nearly $6 billion


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PGRD Operations (Legacy Pfizer)

Site A

Business ProcessesGovernance ModelsStrategic Initiatives

IT Systems

Site C

Business ProcessesGovernance ModelsStrategic InitiativesIT Systems

Site B

Business Processes

Governance ModelsStrategic InitiativesIT Systems

Site D

Business ProcessesGovernance Models

Strategic InitiativesIT Systems

Distinct, Disparate Site SilosDistinct, Disparate Site Silos


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PGRD Operations ( New Pfizer)

PGRD Operations maintain site individuality whi le integrating processes, systems,

and governance models to achieve optimal service delivery.


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Agenda






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PGRD Operations Objectives

Drive the success of our internal customers(researchers) by delivering services that enhancetheir productivityYield a state of Balanced Excellence across allsites and functions: Focus on optimizing across five balanced domains:

Financial, Customer, Services, Processes, and People(Learning & Growth)

Establish a culture focused on ContinuousImprovement


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Getting There

We will meet these organizational objectives byleveraging the following:

A new, enterprisewide Strategic Framework thatensures global alignment with organizationalobjectives

A new Operating Model that encourages andfacilitates cross-site collaboration and knowledgesharingA comprehensive initiative, Project GLOBE , that

leverages the Balanced Scorecard and othertechniques to drive Continuous Improvement


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Static

Dynamic

Vision

SLAsScorecards

Strategic Objectives

Mission

Employee goals,training &

development plans

Goals

Project #1

Project #2

Project #3

Project #4

DivisionalLevel

FunctionalLevel

Step #1 Strategic Framework


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Step #2 Operating Model

Site Networks

La JollaLa Jolla St. LouisSt. Louis KzooKzoo Ann Arbor Ann Arbor Groton/NLGroton/NL Sandwich/NagoyaSandwich/

Nagoya

Environmental Health & Safety

Facilities Management & Engineering

Operational Services

Project Engineering

Security

Strategic Facilities Planning

Center Functions

Capital FacilityPlanning

Capital FacilityPlanning

EnterprisePerformance

Management

EnterprisePerformanceManagement

Divisional EHSDivisional EHS


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Step #3 Project GLOBE

BalancedExcellence

OptimizeCustomerSatisfaction

Financial

ResultsProducts &Services wedeliver

Our InternalProcesses

Learning &Growth of ourorganization

MeasurePerformance

ID ImprovementOpportunities

ImproveProcesses

C o n t i n u o u sC o n t i n u o u s

I m p r o v e m e n t I m p r o v e m e n t

Strategic Filtering

PfizerPerformance

Scorecard

Balanced Scorecards

BenchmarkingProcess Mapping

BalancedExcellence

OptimizeCustomerSatisfaction

Financial

ResultsProducts &Services wedeliver

Our InternalProcesses

Learning &Growth of ourorganization

MeasurePerformance

ID ImprovementOpportunities

ImproveProcesses

C o n t i n u o u sC o n t i n u o u s

I m p r o v e m e n t I m p r o v e m e n t

Strategic Filtering

PfizerPerformance

Scorecard

Balanced Scorecards

BenchmarkingProcess Mapping


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First 100 Days

1EstablishStrategic

Framework

Organizational Vision& StrategyComprehensiveStrategy MapCustomer ValueProposition

First 100 Days

2Deploy

OperatingModel

New OrganizationalDesign that PromotesIntegration of PGRDSitesFormation of SiteNetworks Aimed atDriving Migration toBest PracticesNetwork GoalDocuments

3 Months 6 Mos. 2 Years

3Implement

Project GLOBE

Balanced Scorecards(w/ automatedcollection &deployment)Process Maps for AllFunctional AreasStrategic FilteringProcessChange ManagementProgramsCommon & ConsistentProcesses & Systems

B a

l a n c e

d E x c e

l l e n c

e

B a

l a

n c e

d E x c e

l l e n c

e

S t e p

K e y

D e

l i v e r a

b l e s

ACHIEVED WITHIN 60 DAYS

3

Roadmap to Balanced Excellence


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Leading Indicators Lagging Indicators

Internal Perspective Supports: External Perspective Supports:

Continuous ImprovementShared Learning & CollaborationAccountability & Transparency

Competitive BenchmarkingCustomer SatisfactionMeaningful Cost Allocations

Leading Indicators Lagging IndicatorsLeading Indicators Lagging Indicators

Inputs

Inputs

Outputs

Outputs

Internal Perspective Supports: External Perspective Supports:

Continuous ImprovementShared Learning & CollaborationAccountability & Transparency

Competitive BenchmarkingCustomer SatisfactionMeaningful Cost Allocations

PGRD Operations Balanced Scorecard

InternalProcess

Learning &Growth

Customer

Products &Services

Financial

Our Processes

Our People

Our Services

Our Financials

Our Customers


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How Are Scorecards Used?

Executive Leadership: Provide a comprehensive,

balanced overview ofbusiness performance Enable hierarchical

drill-down to root cause(s)

Provide a comprehensive mechanism for tracking (ata high-level) business initiatives and projects

Ensure aligned employee behaviors and activitiesthrough developing and managing performancetargets

EnterpriseEnterprise

BusinessUnit (BU)BusinessUnit (BU) BusinessUnit (BU)

BusinessUnit (BU)

Site BUSite BU Site BUSite BU

Down

Down

Cascade

Scorecard


BusinessUnit (BU)BusinessUnit (BU) BusinessUnit (BU)

BusinessUnit (BU)

Site BUSite BU Site BUSite BU

Down

Down

Cascade

Scorecard


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Site Employees: Provide a clear line of sight

into how day-to-day activitiesare linked to overall strategicobjectives

Identify process improvement opportunities throughapples-to-apples comparison of performancemetrics

Enable collaboration and sharing of internal/ externalbest practices


BusinessUnit (BU)BusinessUnit (BU)

Site BUSite BU

Scorecard

Cascade

Up

Site BUSite BU




Site BUSite BU

Scorecard

Cascade

Up

Site BUSite BU



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E x c e s s

R e s o u r c e s :

I n v e n

t o r y ,

C a

p i t a

l , H e a

d c o u n

t

LateDeliveries

ExcessSpace

PoorQualityCustomer

Complaints

Scorecards are used to increase visibility ofimprovement opportunitiesallowing the

water level to be lowered slowly.

FrequentChangeOrders

ReactiveMaintenance

LongQueues


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Scorecard Systems Architecture

DataRepository

OFAR Application

Balanced Scorecard

Transactional Data Analytical Information

TM1

OtherSources

DataRepository

OFAR Application

Balanced Scorecard

Transactional Data Analytical Information

TM1

OtherSources

D a t a

S c r u

b

D a t a

S c r u

b

Pfizer Performance ScorecardCMMS

OLAP Tool


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The Goal of Automation

Finding/Accessing the Data

Determining what it means

Taking Action, Making decisions

Action!

Past Goal


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Scorecard emonstrationcorecard emonstration


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Identified

performance concern;drill for details or to

collaborate


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Agenda


2) Demonstrate how PGRD uses HyperionPerformance Scorecard (HPS) to drive ContinuousImprovement

3) Introduce Total Score Management theprocess PGRD uses to operationalizescorecards

4) Review Lessons Learned


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What is Total Score Management?

TSM ensures that scorecards are fully integratedinto strategic and operational business planning

TSM drives: Accountability Clarity (on priorities, management expectations, etc.)

Healthy Internal CompetitionTSM is effective because it is simple

Performance is managed and evaluated basedon only one scorecard metric Total Score


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Sample Scorecard

Total Score


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Expectations DrivenExpectations Driven(Management Levers)(Management Levers)

Performance DrivenPerformance Driven

Scorecard Variables

All functional areas have a Total Score target of 90

Total Scores are influenced by five variables:Actual Results

Target Values

Zero-Result Values

Measure Weightings

Perspective Weightings


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Sample Scorecard

Note Change in Total Score

Actual Results areUnchanged

Change inTotal Score isattributable to

a change in

Weightings


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In Summary

Long-term sustainability of scorecards (and aContinuous Improvement culture) is predicated on:

Relevance

AccountabilityAutomation

Senior Management CommitmentSenior Management Commitment

(HPS)

(Strategic Framework)

(TSM)


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Agenda




4) Review Lessons Learned


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Lessons Learned

Over-communicating is not possible Provide a road map to those affected by the initiative

(e.g., the PITA curve)Walk before you run A manual data collection and population effort should

precede automation

When its time to run, dont run alone Ensure joint accountability between both business and

IT leaders Carefully select a vendor that is willing and able to

assume accountability for your success


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Using Hyperion PerformanceScorecard to Drive ContinuousImprovements at Pfizer Brett A. Dibkey, Senior Director, Pfizer, [email protected]

(860) 732-8345Art Liem, Associate Director, Pfizer, Inc.

[email protected](860) 732-6960

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Session #3071A