P. Dwarakanath

Managing Change

Internal desire to excel

Customers

Global Competition

Govt. Policies/ Regulations

Mergers & Acquisitions

New Opportunities

Triggers for Change

Technological Changes

Success of any Corporate Strategy

Depends on

How well we Manage Change

To perform in fast changing environment one needs to

keep up the pace i.e. Transform with agility

(Glaxowellcome and SmithKline Beecham, HP and

Compaq, Daimler and Chryser, Standard Chartered

Grindlays)

We must recognize that change is a continuous journey and not a destination…no decision is perpetual and there is no ‘right’ way

Our Philosophy…

GSK Story far…• 1958 - HMM Ltd set up in India• 1969 - HMM Ltd. acquired by SmithKline Beckman• 1989 - SmithKline Beckman and Beecham Group merge

to form SmithKline Beecham plc• 1995 - Glaxo and Wellcome merge to form GlaxoWellcome• 2000 - GlaxoWellcome and SmithKline Beecham merge to

form GlaxoSmithKline

Mergers are about…• Today, mergers are often not about “things”. They are more about “soft

capital” like• Thoughts• Methodologies• People• Relationships

• But “soft capital” is perishable. • Its fragile, fluid, you cant lock it up at night or prevent it from going

away from you• It must be nurtured• “soft capital” is harder to merge• Lack of organisational glue to hold good performers

Our Approach…• A merger is an opportunity: don’t waste it

• Paves way for a new identity• “Simply Better” Healthcare Company

• Allows establishment of organization's philosophy• Focus on healthcare

• Provides scope for creation of a new and effective culture• Simply Better/Simply Better Way/GSK Spirit

• Opportunity to establish the 3P Concept• People with winning attitude• Processes that are reliable and robust• Pay off for survival and growth

Five Prerequisites : Sustaining Change

• Organization as a hero

• Winning Attitude

• Strategic Communication

• Cumulative Learning

• Hardwiring the soft stuff

From Promise to Performance

Did you Know?

• No.25 on Fortune magazine list of global most admired companies(2000)

• No.29 on Fortune’s list of fastest growing companies• Named 5 times to Fortune’s list of most innovative companies

(1996-2000)• Twice named to Fortune’s one hundred best companies to work

for in America (1999-2000)• Named the world’s leading Company by Forbes Global

Business (1999)• Honored as having America’s best sales force by Sales&

Marketing Management’s annual survey (1999)

The ability of companies to be The ability of companies to be culturally innovative is related to culturally innovative is related to leadership and top management leadership and top management must be responsible for building must be responsible for building

strong cultures. strong cultures.

Leaders construct the social reality of Leaders construct the social reality of the organization, they shape values the organization, they shape values and attend to the drama and vision and attend to the drama and vision

of the organization.of the organization.

Strategy

Peer Group Leader

Most Effective Marketer

Leader in new product development

Most efficient producer

Best managed

Cross-sector Linkages

Simply Better

Customer

Innovation

Performance

People

Integrity

‘Simply Better’ Way

Customer-Driven Quality

Continuous Improvement

Process Thinking

P-D-C-A

Waste Elimination

S T P/PIP

Culture System

Culture - The Four Dimensions

Values

Heroes

Rites & Rituals

Networks

The beliefs that lie at heart of Corporate Culture

People who embody the Values

Routines of interaction that have strong symbolic qualities

The informal communication system or hidden hierarchy of power in the organization

Culture: The Invisible Thread •Language that everyone knows, understands and abides by

– Irrespective of geographical boundaries or diversities– Simply Better and Simply Better Way– GSK Spirit

•Single organisation-wide Mission – Our global quest is to improve the quality of human life by enabling

people to do more, feel better and live longer

– Strategic Intent

– Set of Leadership Essentials: Expectations of behaviour

– Reward performance on the same parameters

Changing Culture in the New Economy

• Employee Expectations– Security to Personal Growth

• Rewards– Salary to Stock Options

• Leadership– Top Down to Inspirational

• Organisation– Hirearchy to Network

• Corporate Goal– Steady Growth to Fast Growth

Vision:Vision:Culture should beCulture should be

adaptive to the visionadaptive to the vision

Vision:Vision:Culture should beCulture should be

adaptive to the visionadaptive to the vision

Alignment:Alignment:Initiatives should beInitiatives should be

aligned to the Vision & aligned to the Vision & CultureCulture

Alignment:Alignment:Initiatives should beInitiatives should be

aligned to the Vision & aligned to the Vision & CultureCulture

Implementation:Implementation:Cultural changesCultural changes

should be implemented in such a way should be implemented in such a way that people accept andthat people accept andembrace the changesembrace the changes

Implementation:Implementation:Cultural changesCultural changes

should be implemented in such a way should be implemented in such a way that people accept andthat people accept andembrace the changesembrace the changes

Financial:Financial:There needs to be There needs to be +ve link between+ve link between

investment made and return investment made and return on human capitalon human capital

Financial:Financial:There needs to be There needs to be +ve link between+ve link between

investment made and return investment made and return on human capitalon human capital

ORGANIZATIONORGANIZATION CULTURECULTURE

ORGANIZATIONORGANIZATION CULTURECULTURE

Our Mission...Our Mission...

Our global quest is to improve Our global quest is to improve

the quality of human life by enabling the quality of human life by enabling people to do more, feel better and live people to do more, feel better and live longerlonger

Why are we in Business?Why are we in Business?

Our SpiritOur Spirit

We undertake our quest with theWe undertake our quest with the enthusiasm of enthusiasm of

entrepreneurs, entrepreneurs, excited by the constant search forexcited by the constant search for

innovation. innovation. We valueWe value performance performance achieved withachieved with

integrity. integrity. We will attain success as a world class We will attain success as a world class

global leader withglobal leader with each and every one of oureach and every one of our

peoplepeople contributing withcontributing with passion passion and an unmatchedand an unmatched

sense of urgency.sense of urgency.

How we need to behave if we are to achieve our goal

As a strategic business partner we strive to attract,

retain and develop talent, champion change and

manage performance to achieve our goals.

Our quest is to facilitate a culture

that enables the realisation of

human potential

Defin

ing th

e futu

re

HR Mission

GSK Culture• Nurture Questioning & Challenging

• Value not only WHAT but HOW you deliver

• Transparency in Systems & Processes

• Talent as Key Priority – not mere lipservice

– Max-U in WWW, our Business Objectives

– Focus on developing our own people “Grow Our Own

Timber” philosophy

– Employee driven design of Compensation

& Benefits

GSK Culture

• Encourage employees to use first names

– “Breaking the Barriers”

• Don’t insist on dress code, relaxed dressing on

friday

• Bi-Annual All Hands Meeting

• Monthly Breakfast meeting with MD

GSK Culture• Reward Philosophy

– R3 - Recognize,Reward,Rejoice, Spirit Awards, Business

Excellence awards

– Paradigm Shift in compensation & benefits philosophy

• CLA to HRA

• Consolidation of allowances

• Post Retirement Medical Coverage

• Balance Life Support

– Flexi work schedule, Truncated work week, Leave

Management,“Thank God It’s Friday”,Clean your desk

“ Take away my money, take away my

factories, warehouses and land. But leave

my people and within 5 years I will have it

all back.” – Alfred Sloan

Organisation culture is a Organisation culture is a reflection of organisation reflection of organisation

leadershipleadership

Both must be driven by forward-looking Both must be driven by forward-looking strategic goals, and reinforced with strategic goals, and reinforced with

aligned organisation processesaligned organisation processes

Thank -You!!!