Transforming Human Resources at Novartis: The HRIS Case analysis Instructor: Linda C. Isenhour Submitted by: Venus gupta 12/9/2009 1. Choose the top internal and top external issues from your SWOT and identify linkages, if any, to Novartis’ HR & corporate strategies. Defend your perspective with a brief rationale. Write new organizational or HR strategic goals, as required. Ans. Outline of the situation and primary points/issues presented in the case: 1. Significant priority of the company was to implement a firm wide HRIS that would convert many of transaction-based HR core processes to an internet-based system. . HRIS project was an integral part of Novartis long term strategy for improving overall HR service delivery to the organization that would result in a full HR transformation. 3. Success of the global HRIS within the company lay in the organization acceptance of this new way of doing business. 4. Management team was aware that they needed a more fundamental transformation in the role of HR within the company- a shift from functional expert and transaction processor to strategic partner and change agent. 5.
HR management team knew that they were embarking on a transformation that was far more than simply a technical challenge, but they were not completely sure that they understood what this might detail. SWOT for Novartis: Strengths: •Novartis was a world leader in the research and development of products to protect and improve health and well-being. •Overall success of Novartis rested on its intellectual capital. •Committed to focus on R&D and result driven organization. Weakness: •Highly fragmented market •Gap in the infrastructure priority was the lack of a global HR information system. Existing IT system within the company was not so adequate. Opportunities: •High growth rate of market Threat: •Increasing competition in pharmaceutical industry- make critical decisions quickly. •Rapid growth of below the line and direct to consumer advertising SWOT for HR Novartis: Strength: •Novartis values and behaviors, paid off for Novartis with a history of strong financial performance. •The number of innovative HR programs such as OTR, FAR etc along with other new programs included MBA recruitment, share options for key associates, contributed to the strength of Novartis HR. Identifying and developing talent –most important priorities of Novartis. Weakness: •A gap in the infrastructure priority was the lack of a global HR information system. •Managers in the company were unable to figure out quickly how many HR associates were working at Novartis. •Lack of number of associates within the company to fill the leadership position. •The existing IT systems within Novartis were not up to mark. •Centralization or standardization of HR data. •No consistent standards •No consolidated database Difficult in supporting in the businesses in identifying, moving, and tracking talent. •Multiple fragmented systems •Exposure to many small vendors with non integrated niche application •Exposure to legal/regulatory non-compliance •Employees are feeling stretched because of initial post merger integration. Opportunity: •Global standardization of key HR programs and policies. Threat: •Shifting of HR role from functional expert and transaction processor to strategic partner and change agent after implementation of HRIS system. •Resistance from line managers to their new role.
The top internal issue is little centralization or standardization of HR data. The company operated in 140 different countries. Due to lack of HRIS in the company, the company has many loop holes such as no consistent standards, no consolidated database, and no ability to provide data in form to reflect their matrix structure whereas has difficulty in supporting the business in identifying, moving and tracking talent etc. As well as with changing workforce, the managers in the company were unable to quickly and accurately know how many HR associates were working at Novartis.
So, with the implementation of new HRIS the company will be able to solve the problem easily and allow the managers and HR professionals to respond to the business challenges. The top external issue is the Shifting of HR role from functional expert and transaction processor to strategic partner and change agent. The implementation of HRIS system will enable the HR transformation. It will cut down most of the administrative activities of the HR managers leading to be an evolution of the basic role of HR in the company.
There will be requirement of more skilled and professional HR associates who can act as a strategic business partner and change agent. New Organizational or HR strategic goals: •To transform the HR function into a strategic business partner •Have a succession plan to develop skilled HR associates to fill key leadership positions within the company. •Focusing on the required skills of their managers as well as improving communications of the management systems within the company. Develop an employee orientation program for new hires that would introduce to the corporate culture and style needed to work in a company. 2. What are the major challenges (technical, organizational, managerial) facing Novartis HR in implementing its HRIS. Ans. Challenges Faced by Novartis HR Organization in Implementation of the HRIS are: – 1. The HRIS effort represented a major transformation in the fundamental role and responsibilities of the HR function within Novartis. 2. The new system will change the relationships of HR professionals with their usiness partners 3. HR associates would be expected to play a more strategic, consultative role to the business. 4. Technical challenges for system implementation such as web enabling, SAP R/3 –a core transaction processing system, SAP business warehouse (BW), an enterprise HR portal solution etc. 3. How well does Novartis’ approach to project management of its HRIS seem to fulfill its organizational and project goals based on your readings? List 1 example from the case that supports your answer. Ans.
According to my reading, Novartis approach to project management of its HRIS seems well to fulfill its organizational and project goals because of: The planned two and a half year global HRIS project was to be rolled out in phases beginning in 2003, after the initial planning, blueprint, and prototype phases in 2004 followed by full implementation scheduled to be complete across all of Novartis by the end of 2005 led by its well experienced team who would manage the Extended Organization readiness network.
The HR management team was clear about the implementation of HRIS and the challenges in the process by talking to other companies who had already implemented the HRIS and gone through this process. This can be explained better by an example of Multinational Food company which is almost similar to Novartis. •Multinational Food company had 100,000 employees in more than 50 markets used SAP not only for its transactional HR processes, but took an integrated approach to implementing an end to end solution. •It was a five year project (such as Novartis had two and a half year global HRIS project). They had built a global template of best practices and implemented their first pilot in six countries (same as Novartis initial planning, the pilot would begin in UK I 2004) •After first pilot in six countries next step to rollout to more countries and enhancement of the capabilities with new processes. (same as Novartis HRIS implementation to be followed in other countries) During this implementation, Multinational Food Company, project managers faced some challenges but they were able to implement the system effectively.
Similarly, I think Novartis will be able to implement HRIS effectively as the company HR management went through the research before implementing HRIS system and gained all the knowledge about the problems and challenges they have to face while implementing the system in the company. 4. Given a successful HRIS implementation, how do you think the future HR departmental role at Novartis will differ from its current role, if at all? What competencies will be needed by future HR professionals at Novartis to be successful?
Ans. After the implementation of the HRIS system, •HR department will focus more on Strategic planning with less emphasize on administration. •HR managers will think of themselves as strategic partners to contribute to the development of and the accomplishment of the organization-wide business plan and objectives. •They will be more focused on development of their own employees so that they could have better HR associates to full their positions in future. With the implementation of HRIS system, the HR people will be more actively involved in overall operations of the company. Competencies needed by future HR professionals at Novartis to be successful are: •The HR professionals at Novartis need to have more than HR knowledge i. e. they must understand their business and its language and must be able to view issues from the perspective of customers. •HR professionals must be expert in their specialties such as staffing, development, compensation etc.
They must be able to deliver innovative HR practices that add value to the company. •HR professionals need to be effective change agent, to be able to detect trends and early signals, and initiate flexibility in fast-changing business environments. •With implementation of HRIS, the HR professionals have to be technology expertise to deliver services to employees and help them to understand the new system. They must be proficient in using technology to collect data and producing it in more strategically valuable information. References: •Novartis case study
