Succession Planning at Glaxo Wellcome R D n n

Succession Planning at Glaxo Wellcome, R&D n n n n Succession planning goals Alignment to corporate culture Process Benefits Identification criteria Types of development Monitoring progress Summary Glaxo Wellcome

Succession Planning Goals n Develop and retain high performers – optimize intellectual capital n Leadership pipeline – groom individuals for future leadership positions Glaxo Wellcome

Alignment with R&D Culture n n Employee development principles and roles Performance management system – competency-based – performance & development planning – reviews n n Internal recruitment Diversity Glaxo Wellcome

Alignment with GW world n n n Across 76 sites, in 30 countries, 6 regions, with ~ 60, 000 employees Support regionalization Centralizing - establishing global functions: – i. e. M&S, IS, Finance, R&D, HR n Align policies/systems Glaxo Wellcome

Succession Planning Process: Strategic Talent Management Strategizing for Success n. Review/Define Business Objectives & Challenges n. Identify Critical Capabilities n. Agree Development Needs (Gap Analysis for Dept/Div) n. Identify Development Opportunities EDR Process Shaping the Culture n. Developing Others (1 day) n. Coaching Edge (2 days) n. Employee Development Philosophy n. Identify Barriers to Success n. Develop Action/Communication Plan for Department Strategic Talent Review Coaching Skills Training Development Planning Discussions Glaxo Wellcome

The Process Mgr-EE 3 -4 times per year Dept. Mgmt team Div. Mgmt team Dir. Mgmt team 2 times per year Glaxo Wellcome Global EDR meeting R&D Exec E. D. R. Yearly

Benefits n n n Development occurs in line with business needs Stimulates ideas & actions for development Shared ownership of people’s development Reduces bias Foundation for EDR Glaxo Wellcome

Identification Criteria Past performance n Development potential n Competencies n Behaviors n Goals & aspirations n Glaxo Wellcome

Glaxo Wellcome

Types of Development Opportunities n On-the-job: – – – assignments projects new positions location n functional n n n Coaching/mentoring Leadership training Glaxo Wellcome

Types of Executive Leadership Training n In house: – S. E. D. P. – I. L. P. – I. C. L. n External, – – – C. C. L. I. N. S. E. A. D. L. B. S. e. g. Glaxo Wellcome

Monitoring progress for continuous improvement n n n Track turnover Track promotions & new positions Track rewards – bonus, share options n n n Track training Gather feedback Employee survey Glaxo Wellcome

Glaxo Wellcome

Key Results of Surveys n n n In ‘ 98, 68% EDRC reported having written development plan vs 54% in ‘ 97 In ‘ 98, 77% EDRC given opportunity to improve professional skills vs 65% in ‘ 97 In ‘ 98, 80% EDRC reviewed development with manager for >60 min vs 59% non-EDRC In ‘ 98, 70% EDRC believed rewards were linked to performance, vs 50% in ‘ 97 In ‘ 98, 51% non-EDRC believed rewards were linked to performance vs 35% in ‘ 97 Glaxo Wellcome

In Summary n Established a consistent process n People are engaged n Development is happening n Increased communication & coordination across GW n Continuously improving Glaxo Wellcome