Case Study Genentech’s Work Culture and Practices Prepared By: Anamika RayPresented To: Ankur SainiDr. Shalini Khandelwal Ankur Sharma Neha Behnot Harender Singh Prerit Sharma
INTRODUCTIONFounded in 1976 by Robert A. Swanson and Dr. Herbert WBoyer, considered as the founder of the Bio-technology Industry.Headquartered in south San Francisco California U.S.Employs more than 1,100 researchers and scientists.Focuses its efforts on five disease categories:Oncology, Immunology, Tissue Growth and Repair, Neuroscience andInfectious Disease.Values are Integrity, Courage and Passion.Genentech regularly receives awards and recognition for its overallperformance as a company, its management, its workplace culture, its
BACKGROUND• In mid 1970 Swanson approached Boyer to explore the commercial potential of genetic engineering , this led to the formation of GENENTECH.• The success of GENENTECH encouraged biotech researchers to join commercial ventures.• In 1980 GENENTECH raised $35 million through IPO.
• PROTROPIN growth hormone became the first recombinant pharma product to be manufactured and marketed by a biotech company.• In 1990 it completed a $2.1 billion merger with Roche Holding Ltd.• In 2006 it announced ‘Horizon 2010’ a new corporate growth strategy.• GENENTECH’s revenue in the year 2008 was $13,418 millions.
Robert A. Swanson Herbert W. BoyerSwanson wanted to create an Boyer strove to make anorganization that the best scientists in employee friendlythe US would want to join. environment, and a culture thatHe realized that scientists and resembled the atmosphere inresearchers liked to have a certain university labs,amount of freedom in their work. He encouraged researchers atTherefore, he played an important role the co. to publish their researchin fostering elements like freedom for discoveries in journals, toemployees, flexibility, and informality establish reputation in scientificin Genentechs culture... circles
The culture at Genentech was informal in terms of dress code, titles andthe office space allocated to executivesFriday afternoon parties named „Ho-Hos‟ were introduced in the early 80s HO-Hos •Rare at biotech co., •Contributed to establish as one of the best work places in the industry •Interaction sessions •Stress busters
“Discretionary time” Genentech provided its employees with opportunities to dedicate 25% of their work time to work on projects of their choice. 75% assigned work 25% dream projects Employees OrganizationAchieve Career goal Significant work result benefitsWork of interest No work undergoMotivated Motivated employees
• Budget allocations with the involvement of the Researchers Project Proposals – researchers Research Review Committee (RRC) R&D budgets Priority of the projects• Learning opportunities for administrative support staffand employees - “Administrative ProfessionalsAppreciation Day”
• Employees professional growthsSurveys + training programsDevelopment courses for skill enhancementOnline courses were available to manage timeSpecial courses for employees identified for having leadership skills-“fastracking managers for success”•Work in collaboration• Emphasized on its motto “In Business for Life”-to createproducts that would make their patients live better. Thewalls of the office had pictures of patients treated with co.products
employee practices•Respect and fairness towards all employees•Supported companionship amongst employees•Initiatives for Employee friendly environment ~Interactive lunch sessions with the senior management ~Celebrating together occasions•HRD introduced web casting within the co. This helpedconnect the top management ,employees and staff together•Fun culture “working here has never been just a job because much emphasis is placed on how work and personal commitments can coexist”
• Periodic recognition of employees for contribution to the organization.• Cash bonuses called “GenenChecks” were also awarded to teams or individuals.• Cash bonus was also paid on the referral program.• T-Shirts and anniversary recognition awards.• Upon every major achievement, the company held a large party.• The company provided “Stock Purchase Plan”.• Main focus was on science and research and to help patients with medical needs.
Leadership• Levinson, who succeeded G. Kirk Raab, was more focused on management.• Sending of quarterly e-mails to employees providing them with various information and asking for feedback.• Levinson used his finance and information technology skills brought the company out from a bad phase.• Apart from Levinson, there were other top executives who were considered as effective leaders.
“Diversity in action” plan• Formulation of “Diversity in Action” plan (DIA) in 2001 for recruitment of diverse talent pool.• Formation of “Diversity Network Associations” for support and networking activities.• Launching of “Genentech Scholars Program” for financially weak students.• In January 2005, four employees were named as “Diversity Champions”.
• Played role in creating informal culture• Rigorous recruitment procedure for scientists• No discrimination at workplace• Low yearly employee turnover rate(5%)• Positive impact of Orientation program• Informal meetings• It encouraged its employees who had dropped out college, to continue and complete their studies
• Offered annual tuition reimbursement of up to $10,000• It discovered and nurtured talent internally (INTERNAL TRANFER PROGRAM)• Promotion rate grew from 12.3% in 2001 to more than 16% in 2004• Genentech was largely non-hierarchical.
EMPLOYEE BENEFITS• Genentechs employee benefits program was considered to be the best in pharmaceutical industry• Working part time-20 hours a week made employees eligible for the benefits offered to full time employees• Employees received 12 paid holidays a year• Guaranteed Ride Home Program
• Offered family and child care and working mother assistance• It provided legal adoption assistance of up to $5000• Offer to choose 3 medical plans• Corporate bonus program• It provided on-site personal banking facilities on its campus
Since 1990’s Genentech had featured on the best employer list of many magzines• Fortune• Science• Working Mother• EssenceThe company apart from this , Genentech also won many awards for its achievement andwork culture. Since its inception company had been keen on recruiting the ‘best academic minds ’ , itwas one of the first companies for which academicians had adopted to work. One of the main reasons why Genentech had been able to maintain its work culture wasof its relatively small size . According to some company executives , whatever has beenachieved in terms of employee commitment , satisfaction and loyalty over the years hadbeen possible because Genentech was not a very large company and most employees werelocated in the company’s main campus The total number of employees at Genentech exceeded 9000 in 2006 and it hadrecruited an average of 150 employees per month. It also anticipated a growth in staffing bymore than 15% by the end of 2006. however, Genentech seemed well on its way to becoming a large company and a lot ofaspiring scientists were pursuing carriers in that field. And as Genentech grew and newemployees were recruited , there was the possibility that the company would lose someelements of its much admired culture.
Strengths• Trust and Respect• Scientific Leadership• Superior Products and Customer Focus• Exceptional People• Frank Interviewer• Teamwork and Collaboration• Open, Direct Communication• Diversity• Informal, Enjoyable Environment
weakness• Grooming scientist at Genentech.• 9000 employees in 2006, but only 1000 number of sales force.• Genentech’s Product marketed by Roche.
Opportunities• Learning opportunity for administration support staff.• Meeting of new recruits with top level company executive.• Scholarship program for employees.
Threats• Pessimistic view of researchers regarding joining Genentech.• Growing number of competitors.• CEO Raab scandal.• Government regulations