This document discusses strategic sourcing and procurement at Novartis. It emphasizes delivering value beyond just cost savings through innovation and collaboration. The document outlines Novartis' focus on patients and purpose to care for and cure diseases. It presents a new strategy for procurement that aims to drive innovation, growth, and business excellence while ensuring quality and integrity. The strategy involves becoming trusted business partners who understand customer needs and bring insights to develop joint goals. It advocates transforming how Novartis works through a more intensive approach involving suppliers to deliver breakthroughs. The goal is to develop skills in business expertise, change management, facilitation, coaching and consulting to create trusted advisor presences.

1. Strategic Value Beyond Savings
Paula Gildert BSc FRSA FCIPS MIEE CEng
VP Development Strategic Sourcing Novartis
CIPS President

2. Complexity is everywhere

3. “A more complex form of capitalism is emerging that has the potential to enhance
corporate performance AND advance the quality of life for billions of people on the
planet.”
..complexity of connected economies needs a new brand of leadership
based on collaboration & innovation through partnership

4. Our focus is on patients
Our purpose is to care and cure.
We provide medicines to treat and prevent diseases,
ease suffering and improve quality of life.

5. An Example
7%
10%
9%
Target
9%

6. A new strategy for a new game
Productivity
Deliver financial
measurements (savings,
cash flow) & supporting
business bottom line
Innovation
Drive innovation by
creating collaborative
culture with suppliers
& business partners
Organization Excellence
Protecting
the business
Growth
Speed to market.
Contribute to lunch
excellence and
support the
blockbusters.
Ensure quality
compliance &
integrity, supply risk &
ethical behaviors.
Organization & Governance
Providing efficient and effective processes and systems,
timely, accurate data and easy to use.
Global category strategy, cross divisional structure,
value creation
Business Partner
People
Understand business needs, bring insights to partners &
Create a diverse culture & attract, develop & retain
deliver joint goals & aspirations
best of class talents
Value Delivery
Value Enabler

7. What does Value Beyond Savings look like?

9. …. to transform the way we work we need a new approach
Traditional Approach starts
here: ‘above the water-line’
intervention delivers marginal
improvements and low
sustainability
Achieve Breakthrough approach
starts here: Intensive ‘below the
water-line’ intervention combined
with unique innovation delivers
genuine transformation.
“The real voyage of discovery consists not in seeking new landscapes but in having
new eyes”
Marcel Proust
Source: Achieve Breakthrough

10. Always look
for what’s
possible
Confident of
the value
proposition
Merging
agendas
Just imagine
at the end of the
program a set of
business partners
who are…
Wanted for
their
insight
Making
things
easy
Enabling
new ideas and
challenging
status quo
Demonstrating
a new
environment
Seen as
essential to
business

11. Commitment to be a Trusted Partner
• Who understands the business needs to drive growth, innovation, productivity & to protect
the business
• Who brings valuable insights to partner with the Business & improves the strategy to
develop and deliver joint goals & ambitions
• Who fosters an affiliated & collaborative culture to greenhouse & implement innovative
solutions & ideas from our third party partners & suppliers
“From being Procurement people who happen to be in Business to being Business people who
happen to be in Procurement”

12. We need to deliver breakthroughs in several areas

13. The goal is to develop a number of skills
In how we work & engage with both Customers & Suppliers
Business expertise –
Change Management –
understanding strategic
transferring change
drivers and issues for
management skills to help
organisation, so as to get
others drive through
buy in at right level and
outcomes that need
align on visions and
behavioural change
priorities
Facilitating – working with
groups and teams to design
and manage interventions
that are future-focussed
and action-driven
Coaching – uncovering
people’s concerns and
fears and reframing
action based on a future
commitment
Consulting skills –
understanding how to use
the right mix of tools –
listening, questioning,
communicating, influencing
– to create a trusted
advisor presence
Presence of a BP –
•Active Listening
•Understanding different styles
and ‘flexing’
•Managing your own selforientation or agenda

14. Thank you