Renee Anderson, presentation on the Female Talent Pipeline at the 5th Annual Global Diversity Seminar Barcelona

1. Novartis Pharma:
Building the Female Leadership Pipeline
Renee Anderson, VP, Global Head of Diversity and Inclusion
February 24, 2012

2. Legal Disclaimer
No business or legal conclusions can be derived from the simple existence of a
statistical disparity between a particular company’s employment of legally
“special” or “protected” groups, such as women and minorities, in managerial
and professional positions and their representation in the local population.
Many factors, largely beyond such company’s control, such as cultural
inhibitors, educational opportunities and other market conditions could explain
such differences. Accordingly, it is essential that global, aggregated data, such
as that represented by the attached, be used only for the general, background
information of senior managers charged with evaluating the Diversity and
Inclusion Initiative at Novartis. In particular, all hiring, promotion, training,
development and other employment-related decisions related to the initiative
must continue to be made by the local Novartis business entities based on the
specific legal system applicable to them and other overriding local principles
applicable to the markets in which these companies operate.
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3. Building the Female Leadership Pipeline
 Business reasons for change
 Identifying female talent opportunities at Novartis
 Exploring a comprehensive approach to increasing
women at senior levels
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4. Business Reasons for Change
• Women drive a majority of healthcare decision-making1
- According to a study from the Boston Consulting Group, women
“control $12 trillion of the overall $18.4 trillion in global consumer
spending.“2
• Increase of women in workforce – in both developed and
growth markets
- In 2010, 50.6% of all health professionals were women3
• Strategic importance of hypergrowth in EGM countries –
esp. Russia and China
- Ensure talent management & sourcing address needs of diverse talent
pool
• Aging workforce – esp. US, Japan, Russia, Western Europe
– declining birth rates leads to fewer people entering the
workforce to replace retirees
• Increasingly diverse workforce – large availability of talent
especially from China, India, US
- Need for Organizational Development and change management
practices to support business mentality shift, cultural changes, M&As
1. Source: Kaiser Family Foundation
2. Boston Consulting Group press release
3. National Statistics, "Labour Force Survey: Employment Status by Occupation and Sex," April-June 2010 (2010).
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5. „20first“ Global Gender Balance Scorecard
Top 100 Companies 2011 Survey:
% of companies with at least 2 women
on their Boards
 74% US
 68% Europe
 9% Asia
By Region:
% of Executive
Committee Members
Source:
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6. Catalyst* shows - Women's Leadership Still Stalled
Women have made no significant gains in the last year and are no further along the
corporate ladder than they were six years ago:
 Women held 16.1% of board seats in
2011, compared to 15.7% in 2010.
 Less than one-fifth of companies had
25% or more women board directors.
 About one in ten companies had no
women serving on their boards.
 Women held 14.1% of Executive Officer
positions in 2011, compared to 14.4% in
2010.
 Women held only 7.5% of Executive
Officer top-earner positions in 2011, while
men accounted for 92.5% of top earners.
 Less than one in five companies had
25% or more women Executive Officers
and more than one-quarter had zero.
*leading nonprofit membership organization expanding opportunities for women and business
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7. Talent development needs to start early
Tracking of more than 4,100 MBA students who graduated between 1996 and
2007 from elite MBA programs around the world revealed:
 Women continue to lag behind men at every single career stage, right from
their first professional jobs.
Source: Catalyst Research
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8. Female Executive Talent: Improves overall financial performance
Catalyst’s data demonstrates the value of female executive talent
 Return on Sales 16% better performance
 Return on Invested Capital 26% better performance
Source: Catalyst Research Reports, Authors: Nancy M. Carter, Ph.D., and Harvey M. Wagner,
Ph.D. Published: March 2011
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9. Female Executive Talent: Improves overall financial performance
Financial Performance at Companies with Three or More Women Board Directors (WBD) vs.
those with Zero WBD
 Return on Sales 84% better performance
 Return on Invested Capital 60% better performance
 Return on Equity 46% better performance
Source: Source: Catalyst Research Reports, Authors: Nancy M. Carter, Ph.D., and Harvey M.
Wagner, Ph.D. Published: March 2011
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10. Building the Female Leadership Pipeline
 Business Reason for Change
 Identifying female talent opportunities at Novartis
 Exploring a comprehensive approach to increasing
women at senior levels
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11. Novartis is a world-leading healthcare company
 Leading market position
 One of 35 largest companies by market capitalization
 Among most respected companies globally
Key figures Sales by region – 2011
Canada/
Latin America
2011 USD billion 9%
Europe
Net sales: 58.5 Asia/Africa/
21%
37%
Australasia
Net income: 9.2
R&D investment: 9.2 33%
US

12. Novartis - our focus is on patients
Our purpose is to care and cure.
More than 1.1 billion patients around the world were
protected or treated by Novartis products in 2011
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13. 2012 Novartis Pharma D&I Strategic Vision
Pharma D&I Vision
We aspire to become the world's leading healthcare
company by acting inclusively and leveraging our
diversity to create the best outcomes for our patients
and customers.
Build Leadership
Integrate D&I into Foster greater
pipeline that reflects
business planning understanding of the
diversity of the
process, commercial business value of Life
workforce and the
and development Work Integration
markets in which we
strategies policies and practices
operate
Embed inclusive behaviors
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14. Building the Female Leadership Pipeline
 Business Reason for Change
 Identifying female talent opportunities at Novartis
 Exploring a comprehensive approach to increasing
women at senior levels
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15. Build leadership pipeline that reflects the diversity of the
workforce and the markets in which we operate
Comprehensive approach to increase female representation at senior levels*
D&I metrics Embedding D&I in HR Mentoring Targeted
Female Talent Processes Programs Leadership
Aspirational Goal: Development
Global D&I Recruitment: Formal and informal Programs
Launch of Executive
Scorecard: “Relationship-driven” mentoring programs Female Leadership
5 year aspirational talent cultivation for top Program
goal to increase female talent Building
female representation Community: Leveraging Early
in leadership Talking talent and Talent Inclusive Talent Programs to
positions Review Sessions: environment identify and nurture
Talent conversations with female talent
Networking events,
Rigorous D&I diversity agenda
Inclusive Leadership
Diagnosis*: Training, Unconscious
Yearly Statistical D&I Talent Retention:
Bias Training
Analysis and tracking Tracking of career
of Organizational progression of top female
gender talents.
composition/growth
*In compliance with and to the extend permitted by local legal requirements. Employment
decisions occur at local level in accordance with local law.
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16. Other key success factors to increase women at senior levels
 Going beyond mentoring to Sponsorship – having a sponsor to
lobby for female managers, and consistently track progress
 The need for more senior level role models
 Accountability – setting targets and making sure senior leaders
are held accountable to achieve targets
 Creating greater awareness of unconscious bias through
education
 Alignment of D&I concepts in training programs – Talent
Development/Management, Leadership Development programs.
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17. Executive Female Leadership Program
Year long program to assess, develop and track high caliber females for senior
leadership roles
 To assure:
• their visibility to senior management
• increased dialogue with their direct managers about their
development and career planning
• on-the-job development
• personal support through mentoring and coaching
• high involvement of Senior Management to become sponsors
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18. Cascading the Program
EFLP has engendered a lot of interest across Novartis Pharma
globally. We are proactively managing and supporting this in various
ways -
 Pharma CEO is the lead sponsor for the program and continues to
actively promote and input to the program
 Communications are on-going with D&I Council and other D&I
organizations within Novartis to cascade and share learnings to other
parts of Pharma
 Successful program graduates to this initial program will be used as
‘sustainers’, e.g. to mentor, work as a graduate network etc. to continue
their learning and embed the program deeper and more long-term in
the organization
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19. Building the female leadership pipeline at Novartis
Key success factors :
• Comprehensive approach is needed
• Importance of sponsorship
• Career progression tracked by Talent Management
• Establishment of ‘alumni community’
• Accountability – managers are kept informed with clear
expectations set by Pharma CEO
• Establishment of fixed scorecard and goals with key
metrics to increase female representation in leadership
positions
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