Managing Talent at
Lupin Limited
Case Analysis
Overview
• Introduction to Pharmaceutical Industry
• About Lupin
• Talent Management Programs
• Talent Management Initiatives
• Challenges faced
• Conclusion
Pharmaceutical Industry
• The Pharmaceutical Industry is the world’s third largest
in terms of volume and stands 14th in terms of value.
• The growth rate is very high. The industry grew at a
rate of 14% in 2005-2010
• Pharmaceutical market in India is highly competitive
• A major factor that had contributed to the success of
the Indian pharmaceutical industry was the patent
regime that had existed prior to 2005
• Reverse engineering, facilitated by process patent (and
exclusion of product patent) coupled with high quality
yet low cost generic drug manufacturing allowed many
pharmaceutical firms to achieve near global-player
status.
Continued…
• Contract research and manufacturing services (CRAMS) was
another area where pharmaceutical firms in India held an
edge.
• India’s competitive strengths in research services, along
with English-language competency, availability of low-cost,
high-skilled doctors and scientists and large patient
population with diverse disease characteristics, provided a
fertile ground for medical research.
• In addition, both global innovators and generic majors had
found it profitable to outsource production to India given its
adherence to international quality standards.
Growth Factors
• Increased patient pool due to increased
urbanization
• Increased accessibility to drugs
• Greater acceptance of new medicines
• Greater affordability due to rising incomes
• Increasing insurance coverage
• Growing investment in healthcare infrastructure
• Introduction of product patent legislation along
with cost advantage
About
LUPIN
Why Lupin
• Lupin is the 4th largest player in Indian pharmaceutical
industry.
• It has emerged as an out performer in the pharma
sector.
• It’s stock counted among frontline farm stock and
considered for the long term buy.
• The company over the year has grown to be one of
the top ten generic company in the USA, Japan &
South African market.
Corporate Overview
• Lupin Ltd. is an innovation led transnational
pharmaceutical company producing a wide range of
quality, affordable generic and branded formulations.
• Headquartered in Mumbai, India.
• Established in 1968
• Chairman Dr. Desh Bandhu Gupta
• First recognition :
When it became world’s largest manufacturers of
Tuberculosis drugs.
• India’s fifth largest player in terms of revenue and
market share (FY10)
Lupin’s Vision
“An innovation-led, transnational pharmaceutical company”
“Our aspiration is to become a multi-
billion dollar transnational company and
be counted amongst the top generic
pharmaceutical companies in the world.
Going forward, we have to consistently
set ourselves standards and
benchmarks that will be world-class but
uniquely Lupin.”
Dr. Desh Bandhu Gupta
Chairman
Our
Values
Working
Together
Respect
for
People
Superior
Performan
ce
Entrepre
neurship
Customer
Orientati
on
Integrity
Lupin’s Values
Locations & Facilities
History and Milestone of Lupin
• 1968 : Lupin started business.
• 1972 : Lupin Laboratories Pvt. Ltd. Was incorporated.
• 1980 : Lupin started a formulation plant and an R&D
Centre at Aurangabad (Maharashtra).
• 2001 : State-of-the-art R&D Centre at Pune was started.
• 2004 : WHO approval was received for State-of-the-art
formulation plants at Goa and Aurangabad.
• 2009 : Lupin acquired majority stake in Multicare
Pharmaceutical Philippines Inc.
• 2011 : Lupin acquired I’rom Pharmaceutical through it’s
Japanese subsidiary.
Talent Management at Lupin
• HR Team launched the Talent Management Project in 2006.
• In 2010, Lupin comprised 5 customer facing divisions:
IRF with responsibility for Formulation Sales in India,
LPI with responsibility for North America and Europe
CIS for the undivided USSR
AAMLA for the rest of the world
API for the intermediaries sale
• Two things characterized Lupin:
Centralized approach to management
An emphasis on a relationship oriented culture.
• HR Team had it clear that on their roles of attracting,
retaining and developing talent was crucial for Lupin
• Open to get talent from outside.
TALENT
MANAGEMENT
TALENT
ACQUISITION
Find the right
people
TALENT
IDENTIFICATION
Evaluate and
understand existing
talents
TALENT
DEVELOPMENT
Invest in people
and nurture
growth
TALENT
DEPLOYMENT
Get people ready
for key roles in
the business
Talent Management at Lupin
Talent Management Initiatives
• Lupin’s Talent Management Programs rested on a
participatory approach.
• Development programs aimed at encouraging
employees to take charge of their careers with full
support from Lupin.
• The programs are not leadership driven plans. It’s
the employee’s prerogative to hard work, deliver
results and get recognized.
• There were not only formal programs but a lot of
informal networking and development
opportunities for the employees as well.
Continued…
• Lupin offered varied Top Talent initiatives such as :
Lupin’s Manufacturing Business Leaders Programme
AMEX for Frontline Sales Leaders
Leader Plus for Frontline Leaders in Manufacturing
Leadership effectiveness programmes for potential leaders in Research.
The Lupin Learning Centre
The Buddy Programme were aimed at inducting employees into the Lupin way.
• Identifying the top 100 managers and supporting their career growth and
development through education, training, and job exposure were the key
components of this strategy
• All new recruits were covered by an orientation programme called “Udbhav”. This
fortnight-long programme introduced new recruits not only to the company and
their role, but also provided self awareness and life skills and ensured a smooth
transition from academics to industry.
Buddy Program
Buddy Coach
Buddy Program
AIM ABOUT RESULT
To accelerate a new
employee’s ability to
deal with early
disconcerting issues.
Connecting the new
recruits with a ‘Buddy’
(an existing employee
who had been in the
organization for over a
year) expected to
assist in cultural
integration and
orientation.
- Quick value addition
to the company.
- Increased confidence
and increased self
esteem in the
employee.
Annual Talent Review
AIM ABOUT RESULT
- To integrate the
company’s plans with
employee goals and
organizational
decisions.
- To connect every
activity to the larger
business agenda
across the
organization.
This program helped
employees grasp the
changing realities of a
competitive market
scenario and help
them move away from
a nostalgic longing for
Lupin’s old culture.
Awareness among the
employees that career
advancement at Lupin
depended on :
- Current deliveries
and not past
achievements
- Results are rewarded
Lupin Manufacturing Business
Leadership Program
AIM ABOUT RESULT
- To create leaders for
the organization.
- To develop the
critical skill set,
broader
understanding and
practical in-company
application of
knowledge and
insights
A collaboration of
Lupin with Indian
Institute of
Management,
Ahmedabad (IIMA) to
offer a program
designed to serve
these objectives.
- Creation of better
leaders.
- Make employees
more valuable.
- Opportunity for the
employees to
receive formal
education post-
college.
- Better job
understanding.
- Better skill set.
KEY ELEMENTS
LMBLP
Understanding of Business
Concepts
Leadership Development
Practical In-Lupin Experience
Lupin Learning Centre
Lonavala
A key step to
institutionalizing the
people development
process.
Offered a world class
infrastructure and facilities
for execution of various
learning program.
The facility had
auditorium, guest room,
recreation center, library,
canteen, garden, etc.
A Centre for excellence for
Lupin where they nurture
their talent.
AIM : To make Lupin ready
for the future and to
inculcate and strengthen
management capabilities of
Lupin managers.
AIM : To offer a learning
environment,
opportunities, and inputs
of global standards to the
employees at Lupin.
Informal Networking and
Developmental Opportunities
• Sharing of practices by senior leaders
• Platform for employees to show their competence
• Other areas apart from work assigned to them
• Participation in international conferences
Talent Management
Challenges at Lupin
Industry Characteristics
• Nature of the pharmaceutical industry
Pharma industry is not seen as desirable industry in India.
Not able to attract bright people.
Talent available enjoy their lobby.
• High attrition rate in the industry
Domain focused industry so it sticks to domain specific skills
Talent Drain
• Managing sub-par talent
Recruitment Issues
• Quality of recruits being hired
Not hiring careerists.
Low on intellectual abilities.
• Recruitment criteria
Lack of clarity in hiring criteria
Compromise on talent
• Recruitment Process
No psychometric tests to check the appropriateness for the role.
No swot analysis.
No competency analysis.
Performance Appraisal and
Potential Appraisal
• Implementation of a performance management system.
 Created a lot of heartburn
• Performance budgets/targets quantifiable in some areas only
• Nature of the appraisal system based on quantity not on quality
• Emphasis more on internally acquisition/development of talent
 Less availability of talent /resources
 Resistance
 Lack of managerial support
 Rewarding employees through creating hierarchy
• Lack of desire/will towards higher education programs offered by
company.
• Alignment between business environmental factors with talent
management practices.
Mapping/Developing Competencies
• At lower level
Scientific communication skills
Presentation skills
• At senior level
Development/infusion of managerial skills
• Lack of innovation
Conclusion
• In domain focused industries internal talent
development is to be given weightage over external
talent acquisition
• Aligning of talent management practices with the
outside business environment
• Through the Talent Management initiatives attrition
was under control and talent management got
stabilized.
• Well defined recruitment policy and procedure

Managing Talent at Lupin

  • 1.
    Managing Talent at LupinLimited Case Analysis
  • 2.
    Overview • Introduction toPharmaceutical Industry • About Lupin • Talent Management Programs • Talent Management Initiatives • Challenges faced • Conclusion
  • 3.
    Pharmaceutical Industry • ThePharmaceutical Industry is the world’s third largest in terms of volume and stands 14th in terms of value. • The growth rate is very high. The industry grew at a rate of 14% in 2005-2010 • Pharmaceutical market in India is highly competitive • A major factor that had contributed to the success of the Indian pharmaceutical industry was the patent regime that had existed prior to 2005 • Reverse engineering, facilitated by process patent (and exclusion of product patent) coupled with high quality yet low cost generic drug manufacturing allowed many pharmaceutical firms to achieve near global-player status.
  • 4.
    Continued… • Contract researchand manufacturing services (CRAMS) was another area where pharmaceutical firms in India held an edge. • India’s competitive strengths in research services, along with English-language competency, availability of low-cost, high-skilled doctors and scientists and large patient population with diverse disease characteristics, provided a fertile ground for medical research. • In addition, both global innovators and generic majors had found it profitable to outsource production to India given its adherence to international quality standards.
  • 5.
    Growth Factors • Increasedpatient pool due to increased urbanization • Increased accessibility to drugs • Greater acceptance of new medicines • Greater affordability due to rising incomes • Increasing insurance coverage • Growing investment in healthcare infrastructure • Introduction of product patent legislation along with cost advantage
  • 6.
  • 7.
    Why Lupin • Lupinis the 4th largest player in Indian pharmaceutical industry. • It has emerged as an out performer in the pharma sector. • It’s stock counted among frontline farm stock and considered for the long term buy. • The company over the year has grown to be one of the top ten generic company in the USA, Japan & South African market.
  • 8.
    Corporate Overview • LupinLtd. is an innovation led transnational pharmaceutical company producing a wide range of quality, affordable generic and branded formulations. • Headquartered in Mumbai, India. • Established in 1968 • Chairman Dr. Desh Bandhu Gupta • First recognition : When it became world’s largest manufacturers of Tuberculosis drugs. • India’s fifth largest player in terms of revenue and market share (FY10)
  • 9.
    Lupin’s Vision “An innovation-led,transnational pharmaceutical company” “Our aspiration is to become a multi- billion dollar transnational company and be counted amongst the top generic pharmaceutical companies in the world. Going forward, we have to consistently set ourselves standards and benchmarks that will be world-class but uniquely Lupin.” Dr. Desh Bandhu Gupta Chairman Our Values Working Together Respect for People Superior Performan ce Entrepre neurship Customer Orientati on Integrity Lupin’s Values
  • 11.
  • 12.
    History and Milestoneof Lupin • 1968 : Lupin started business. • 1972 : Lupin Laboratories Pvt. Ltd. Was incorporated. • 1980 : Lupin started a formulation plant and an R&D Centre at Aurangabad (Maharashtra). • 2001 : State-of-the-art R&D Centre at Pune was started. • 2004 : WHO approval was received for State-of-the-art formulation plants at Goa and Aurangabad. • 2009 : Lupin acquired majority stake in Multicare Pharmaceutical Philippines Inc. • 2011 : Lupin acquired I’rom Pharmaceutical through it’s Japanese subsidiary.
  • 13.
    Talent Management atLupin • HR Team launched the Talent Management Project in 2006. • In 2010, Lupin comprised 5 customer facing divisions: IRF with responsibility for Formulation Sales in India, LPI with responsibility for North America and Europe CIS for the undivided USSR AAMLA for the rest of the world API for the intermediaries sale • Two things characterized Lupin: Centralized approach to management An emphasis on a relationship oriented culture. • HR Team had it clear that on their roles of attracting, retaining and developing talent was crucial for Lupin • Open to get talent from outside.
  • 14.
    TALENT MANAGEMENT TALENT ACQUISITION Find the right people TALENT IDENTIFICATION Evaluateand understand existing talents TALENT DEVELOPMENT Invest in people and nurture growth TALENT DEPLOYMENT Get people ready for key roles in the business Talent Management at Lupin
  • 15.
    Talent Management Initiatives •Lupin’s Talent Management Programs rested on a participatory approach. • Development programs aimed at encouraging employees to take charge of their careers with full support from Lupin. • The programs are not leadership driven plans. It’s the employee’s prerogative to hard work, deliver results and get recognized. • There were not only formal programs but a lot of informal networking and development opportunities for the employees as well.
  • 16.
    Continued… • Lupin offeredvaried Top Talent initiatives such as : Lupin’s Manufacturing Business Leaders Programme AMEX for Frontline Sales Leaders Leader Plus for Frontline Leaders in Manufacturing Leadership effectiveness programmes for potential leaders in Research. The Lupin Learning Centre The Buddy Programme were aimed at inducting employees into the Lupin way. • Identifying the top 100 managers and supporting their career growth and development through education, training, and job exposure were the key components of this strategy • All new recruits were covered by an orientation programme called “Udbhav”. This fortnight-long programme introduced new recruits not only to the company and their role, but also provided self awareness and life skills and ensured a smooth transition from academics to industry.
  • 17.
  • 18.
    Buddy Program AIM ABOUTRESULT To accelerate a new employee’s ability to deal with early disconcerting issues. Connecting the new recruits with a ‘Buddy’ (an existing employee who had been in the organization for over a year) expected to assist in cultural integration and orientation. - Quick value addition to the company. - Increased confidence and increased self esteem in the employee.
  • 19.
    Annual Talent Review AIMABOUT RESULT - To integrate the company’s plans with employee goals and organizational decisions. - To connect every activity to the larger business agenda across the organization. This program helped employees grasp the changing realities of a competitive market scenario and help them move away from a nostalgic longing for Lupin’s old culture. Awareness among the employees that career advancement at Lupin depended on : - Current deliveries and not past achievements - Results are rewarded
  • 20.
    Lupin Manufacturing Business LeadershipProgram AIM ABOUT RESULT - To create leaders for the organization. - To develop the critical skill set, broader understanding and practical in-company application of knowledge and insights A collaboration of Lupin with Indian Institute of Management, Ahmedabad (IIMA) to offer a program designed to serve these objectives. - Creation of better leaders. - Make employees more valuable. - Opportunity for the employees to receive formal education post- college. - Better job understanding. - Better skill set.
  • 21.
    KEY ELEMENTS LMBLP Understanding ofBusiness Concepts Leadership Development Practical In-Lupin Experience
  • 22.
    Lupin Learning Centre Lonavala Akey step to institutionalizing the people development process. Offered a world class infrastructure and facilities for execution of various learning program. The facility had auditorium, guest room, recreation center, library, canteen, garden, etc. A Centre for excellence for Lupin where they nurture their talent. AIM : To make Lupin ready for the future and to inculcate and strengthen management capabilities of Lupin managers. AIM : To offer a learning environment, opportunities, and inputs of global standards to the employees at Lupin.
  • 23.
    Informal Networking and DevelopmentalOpportunities • Sharing of practices by senior leaders • Platform for employees to show their competence • Other areas apart from work assigned to them • Participation in international conferences
  • 24.
  • 25.
    Industry Characteristics • Natureof the pharmaceutical industry Pharma industry is not seen as desirable industry in India. Not able to attract bright people. Talent available enjoy their lobby. • High attrition rate in the industry Domain focused industry so it sticks to domain specific skills Talent Drain • Managing sub-par talent
  • 26.
    Recruitment Issues • Qualityof recruits being hired Not hiring careerists. Low on intellectual abilities. • Recruitment criteria Lack of clarity in hiring criteria Compromise on talent • Recruitment Process No psychometric tests to check the appropriateness for the role. No swot analysis. No competency analysis.
  • 27.
    Performance Appraisal and PotentialAppraisal • Implementation of a performance management system.  Created a lot of heartburn • Performance budgets/targets quantifiable in some areas only • Nature of the appraisal system based on quantity not on quality • Emphasis more on internally acquisition/development of talent  Less availability of talent /resources  Resistance  Lack of managerial support  Rewarding employees through creating hierarchy • Lack of desire/will towards higher education programs offered by company. • Alignment between business environmental factors with talent management practices.
  • 28.
    Mapping/Developing Competencies • Atlower level Scientific communication skills Presentation skills • At senior level Development/infusion of managerial skills • Lack of innovation
  • 29.
    Conclusion • In domainfocused industries internal talent development is to be given weightage over external talent acquisition • Aligning of talent management practices with the outside business environment • Through the Talent Management initiatives attrition was under control and talent management got stabilized. • Well defined recruitment policy and procedure