This document discusses Pfizer's Office of the Future (OOF) program. It provides an overview of Pfizer as a company and describes the OOF program, which involves outsourcing routine office work to companies in India. This allows Pfizer employees to focus on more strategic work instead of tasks like document creation and research. The program was implemented by establishing departments in outsourcing companies responsible for different tasks. It helps Pfizer improve efficiency by reducing costs and time spent on projects. However, the approach may not be suitable for all organization types and presents some risks if communication or systems fail.
2. 2
Content
Company
Overview
Office
Of
The
Future
Overview
Structure
Implications
Does
OOF
Suitable
For
All
Types
Of
Organization
Role
Of
Organizational
Structure
In
Organization
Effectiveness
And
Efficiency
Pfizer
CSR
SWOT
Analysis
3. 3
1- Company Overview
Pfizer was founded by cousins Charles Pfizer
and Charles Erhart in 1849
HQ based in New York USA
Total number of employees is 77,700 (2013)
(116,500 in 2009)
Total revenues $ 51,584 Billion(2013)
Net income $ 22,003 Billion (2013)
Total assets $172,101 Billion (2013)
R&D investment $ 8.1 Billion (2007) the largest
in Healthcare company
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4. 4
2- Office Of The Future Overview
"Our Harvard MBA staff was
spending a lot of time doing 'support'
work, not their actual jobs," says
Jordan Cohen, senior director of
organizational effectiveness. "These
are people we hired to develop
strategies and innovate. Instead, they
were Googling and making
PowerPoints."
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Problem Statement
5. 5
2- Office Of The Future Overview
OOF was born of a financial crisis. In 2005,
Pfizer announced a $4 billion annual budget
cut to counterbalance the expiration of
lucrative drug patents. The company later
laid off 10% of its workforce. "It was going to
be pretty traumatic," Cohen says. "Were we
just going to tighten our belts, or work
differently?”
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After analyzing the activities of Pfizer
employees, he learned that they
spend 20% to 40% of their time on
four activities: creating documents,
manipulating and analyzing
spreadsheets, scheduling meetings,
and researching.
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2- Office Of The Future Overview
He found hundreds of operations, many with thousands
of employees, specializing in so-called knowledge-
process outsourcing—dealing with information and
data. He rounded up 30 adventurous employees at
Pfizer for a test-drive with four employees at OfficeTiger
in Chennai.
The initial test run didn't work well
He spent months breaking complex Pfizer projects into
repeatable tasks and training both sides to handle them
Finally it did work and the program included 200
employees, with 2 outsourcing companies.
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3- Structure Implications
He made a contract with 2 outsourcing indian
companies specialised in knowledge-process
outsourcing (Work Specialization )
These outsourcing companies have departments are
responsible for office work, research, reports and
analysis (departmentalisation )
when a Pfizer employee clicks the OOF button in
Microsoft Outlook, a single triage worker in India
receives the request and assigns it to a team, and the
team leader calls the employee to clarify the larger
purpose. The team leader then sends back an email
specifying the cost. ( Chain of command )
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8. 8
3- Structure Implications
On a trip to India, he learned that Office
work was decentralized and fragmented,
the graphics people on one floor and the
research people on another.
He proposed a team system, putting a
dozen skilled workers in one room and
passing the project around repeatedly.
( Centralization & Decentralization )
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4- Does OOF suitable for all types of organization
This approach is not suitable for all types of
organisations off course
It’s suitable for mechanistic Co and may not be
suitable ofr organic companies
Pfizer is highly mechanistic Co with
• High Specialisation
• Rigid departmentalisation
• Clear chain of command
• Narrow spans of control
• Centralization
• High formalisation
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5- Role of structure in organization effectiveness and efficiency
Kristin Peck, head of worldwide strategic
planning.
“When questions come in, like who are
the key players in the stem-cell market,
often I would hire external
consultants,OOF does the same work
for me at one-tenth the cost. It's sort of
mini-internal consulting, for very
specific questions.”
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Nancy Steele, executive director of new
business development
“Rather than spending six
months analyzing a segment to
understand whether it's a
market opportunity, we spend
closer to three months.”
11. Pfizer pays $15 to $35 per worker hour, far
less than they'd pay the McKinseys of the
world, whose rates typically start at $215 per
hour.
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5- Role of structure in organization effectiveness and efficiency
12. 6- Pfizer CSR
About 200,000 tons of sludge
products by pharmaceutical industry
only in USA during 1983
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Problem Statement
13. 6- Pfizer Green Chemistry
Pfizer Reduces,
Reuses, Recycles,
Rethinks
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Cradle to Cradle approach
14. An innovative manufacturing process for sertraline
hydrochloride the active ingredient of Zoloft which:
Significantly improved both worker and environmental
safety
Intensely increased pollution prevention benefits:
• Improved safety and material handling
• Reduced energy and water use
• Doubled overall product yield
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6- Pfizer Green Chemistry
Cradle to Cradle approach
15. Biologically hazardous waste mainly contaminating water
and soil
• 75% to 80% solvents (liquid)
• 20% to 25% solid
Green Chemistry process reduced the waste ratio to the API*
produced by approximately 50%
Reduced usage of some raw material and allowed them to be
recycled back into production process
Use of more selective catalyst resulting in reduced use of solvent
and generated harmful byproducts
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6- Pfizer Green Chemistry
Cradle to Cradle approach
16. 7- SWOT Analysis
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Covidien | July 6, 2014 |
Strengths: Weakness:
Opportunities: Threats:
1.Can be applied on other company
departments i.e. finance
1.Data may be non useful due to
miscommunication between pfizer employee
and the outsourcing company
2. due to depending on software system, if the
system crashes the operation will stope
completely
3.depending on Indian outsourcing Co may
expose to problems if the political state
changed i.e. ware or revolutions
1.Company confidential data may be compromised
2.Need a lot of infrastructure and Software
maintenance 1.Save employees time 20-40%
2.Save money by using out sourcing company