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Pch Case Study Final Iwork09 Dl


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How to significantly increase the rate of organic growth?
How to weave innovation into the fabric of the organization?
How to take innovation to the next level?

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Pch Case Study Final Iwork09 Dl

  1. 1. April 2010 THE RISE OF THE INNOVATOR Transforming and Sustaining Results: a Case Study Shape - Build - Sustain copyright © 2009 ivibeglobal, inc. all rights reserved.
  2. 2. CONTEXT Innovation As A Journey Big Bold In order for an organization to fully embrace innovation as a Questions way of life (not just theoretically, but behaviorally), we recommend building capability and teaching others within the system how to drive innovation initiatives and shape conditions to support new behaviors and actions. Based on How to our experiences helping numerous organizations transform, significantly build and sustain a culture of innovation, we’ve selected a increase the rate case study to illustrate what is possible when an entire system is aligned to make innovation part of daily life. These of organic principles must be skillfully tailored to meet the needs of the growth? specific organization at a specific point in time in order to sustain the transformation over time. Because building and sustaining an innovation culture is a How to weave long-term endeavor, the Pfizer Consumer Healthcare case study outlines what is possible in the short, medium and long innovation into term when implemented effectively. We emphasize this the fabric of the because the context around making innovation a daily habit will influence the success of the everything going forward. organization? Viewing this as an journey signals to the organization as a whole that you are serious and committed to growing your people and business in significant new ways. How to take innovation to the next level? Our Focus We help leaders make innovation a habit by helping them and their organization develop the right energy, culture, process and capabilities to create break- through as well as sustaining innovations copyright © 2009 ivibeglobal, inc. all rights reserved. ! 2
  3. 3. Cultural & Organization Transformation Pfizer High Level Description Consumer The following pages outline ivibe global’s involvement in Healthcare helping create and sustain a culture of innovation and Case Study aggressive growth at Pfizer Consumer Healthcare (PCH). At the start of the effort, PCH was a low growth business worth about US$ 3 billion. Four years later, the division was sold to Johnson & Johnson (JNJ) for about US$ 17 billion. JNJ cited product alignment, global capabilities that complemented JNJs and PCHs embedded culture of innovation as key reasons for the purchase. 3 PHASES Core Elements Shape the • Partner with senior leaders to develop and implement a comprehensive growth strategy where innovation is Journey embedded, not a separate plan or thing to do. • Build case for change and train senior leaders to “lead” innovation • Implement a consistent innovation approach, process and structures across brands, R&D, manufacturing and geographies. • Establish innovation leadership model, goals and metrics • Enhance leadership abilities around risk taking, experimentation and entrepreneurship through quick-cycle learning programs • Build capability in improving flow, mobility and generation of insights and ideas within and across groups AND outside the organization Build • Create and develop a global network of innovation champions to drive local innovation initiatives and culture change efforts Capability • Significantly increase number of aggressive growth initiatives • Refine and enhance processes and structures. Eliminate ineffective practices and structures to amplify breakthrough thinking and speed to market • Expand training and network of colleagues in innovation processes, tools and techniques Sustain • Align recruiting, performance management, and related HR the practices for managing for talent related to innovation • Change physical environment to signal culture change, Journey optimize new innovation related processes and enhance copyright © 2009 ivibeglobal, inc. all rights reserved. ! 3
  4. 4. Shape the Journey CONTEXT: ARTIFACTS The consumer healthcare industry was growing about 1% annually during this period. Pfizer Consumer Healthcare leadership saw innovation as a path to double industry growth. The Leadership Team set forward a revised strategy where innovation was at the core of the plans and associated actions. STRATEGY MAPS INTERVENTIONS: • Instilled new ways of working and behaviors with senior leaders during the strategy development and rollout process • Conducted an innovation audit and implemented new structures • Designed and implemented a global innovation leadership model, process and associated training • Established enterprise and functional innovation goals and metrics • Implemented a global communication and recognition program • Launched a few global innovation initiatives PCH INNOVATION PROCESS RESULTS: • Achieved double market growth rate • Achieved improvement in employee innovation survey results • Created baseline for innovation portfolio and culture metrics PROCESS & SKILLS • Implemented first wave of changes to support culture change and organization transformation Steven LaMonte, former Vice President of Integrated Growth Solutions and Latin America - Pfizer Consumer Healthcare !!!!!!!!!!!!!!!!!!!!!!! GOALS & METRICS "ivibe global helped our teams develop the skills and attributes necessary to accelerate our growth platforms. !They transferred their energy, passion and experience around innovation to our colleagues. ! As a result, innovation become part of how we worked, not an additional thing to fit into our busy schedules." copyright © 2009 ivibeglobal, inc. all rights reserved. ! 4
  5. 5. Build Capability CONTEXT: ARTIFACTS Pfizer Consumer Healthcare achieved some significant results from early innovation efforts which gave confidence to double focus on developing an innovation culture and capabilities. At the same time, innovation was not applied consistently across the global enterprise - many opportunities existed to further align and weave innovation into the fabric of the organization. INNOVATION COMMUNITY INTERVENTIONS: • Established innovation certification program and trained a global community of innovation experts • Established internal and external open source networks to gain new insights, develop new solutions and get closer to the customer • Recognized innovative colleagues through team and individual awards • Conducted annual employee innovation surveys to gauge progress and address issues and opportunities across the global company • Continued to support leaders to effectively to recognize and develop innovative talent on their teams • Launched numerous innovation initiatives with support from enhanced learning systems including action learning workshops to deepen skill and habits of innovation across the organization RESULTS: • Achieved double industry rate of growth for second year • Exceeded innovation portfolio NPV and reduced launch cycle time from an average of 39 to 24 months • Implemented additional structures to support growth & innovation • Achieved significant improvements in all areas globally in annual employee innovation survey • Training efforts exceeded targets Peter Wentworth, former Vice President Global HR - Pfizer Consumer Healthcare METRICS & ACTION !!!!!!!!!!! “ivibe global helped us build innovation capacity throughout our global organization. They led the design and implementation of a portfolio of practical, business-driven initiatives which significantly impacted our operating style, the value of our R&D pipeline, and yield from consumer insight to products on the shelf. !Most importantly, they helped build a core of highly skilled and engaged colleagues who sustained the drive for global innovation and grew our business at double the industry standard.” copyright © 2009 ivibeglobal, inc. all rights reserved. ! 5
  6. 6. Sustain the Journey CONTEXT: ARTIFACTS Pfizer Consumer Healthcare achieved above double industry-level growth and significant improvements in the annual employee innovation survey. The company began to initiate significant innovation projects with suppliers and other partners to drive additional new sources of growth. HR and other internal processes and functions were revamped to amplify breakthrough thinking, collaboration and speed to market across brands, functions and geographies. Opportunities for improvement and refinement continued to exist, especially around more disruptive innovation opportunities. INTERVENTIONS: • Conducted an innovation audit to pinpoint opportunities and define how to achieve the next level of innovation and aggressive growth across the company • Launched additional internal and external collaboration networks • Enabled innovation skill development for all employees • Revised various business and HR practices to reinforce innovation practices • Revamped work spaces to be more conducive to different work styles, team preferences and encourage effective collaboration and problem solving • Launched new structures and funding mechanisms to manage innovation RESULTS: • Achieved almost 2.5X the industry rate of growth organically • Continue to enhance innovation structures globally • Global innovation community making significant impact • Exceeded expectations and results from annual employee innovation survey • Exceeded expectations on innovation related metrics !Jeff Semenchuk, former Vice President Global Innovation - Pfizer Consumer Healthcare (now head of Citi Group Growth Ventures) !!!!!!!!!!!!!!!!!!!!!!! "ivibe global helped us weave innovation into the fabric of our company through a tailored approach to cultural transformation and organizational readiness. !Under their able leadership and guidance, we tripled the value of our company, achieved record profits year over year and created a motivated and engaged work force.” copyright © 2009 ivibeglobal, inc. all rights reserved. ! 6
  7. 7. About ivibe global ivibe global is a growing international innovation consultancy focused on sparking creativity and making innovation a habit. !ivibe global enables leaders and organizations catch and sustain the innovation vibe by helping develop new insights, deliver new products and services to the market and transforming the organization’s culture. ! Through initiative support, coaching, training and creating the right conditions, ivibe global helps organizations stimulate, generate and motivate to achieve breakthrough and sustainable results. To learn more, please contact: Catch the Spark David Lipsky +1-845-353-1002 Whole Brain Innovation Delivering Value Our Philosophy We believe that every individual and organization is one spark away from greatness and is able to attract any possibility if they first believe it, second pursue it and third celebrate it when they do accomplish their goal. copyright © 2009 ivibeglobal, inc. all rights reserved. ! 7