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PFIZER	
 OOF
Name:	
 Mohamed	
 Ismaeil	
 
Date:	
 13/12/2014
Case	
 Study
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
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
3
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."
4
Problem Statement
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?”
5
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.
6
	
 	
 	
 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.
6
7
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 )
7
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 )
8
9
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
9
10
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.”
10
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.”
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.
11
5- Role of structure in organization effectiveness and efficiency
6- Pfizer CSR
About 200,000 tons of sludge
products by pharmaceutical industry
only in USA during 1983
12
Problem Statement
6- Pfizer Green Chemistry
Pfizer Reduces,
Reuses, Recycles,
Rethinks
13
Cradle to Cradle approach
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
14
6- Pfizer Green Chemistry
Cradle to Cradle approach
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
15
6- Pfizer Green Chemistry
Cradle to Cradle approach
7- SWOT Analysis
16
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
THANK YOU
17

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Pfizer office of the future case study

  • 1. PFIZER OOF Name: Mohamed Ismaeil Date: 13/12/2014 Case Study
  • 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 3
  • 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." 4 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?” 5 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.
  • 6. 6 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. 6
  • 7. 7 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 ) 7
  • 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 ) 8
  • 9. 9 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 9
  • 10. 10 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.” 10 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. 11 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 12 Problem Statement
  • 13. 6- Pfizer Green Chemistry Pfizer Reduces, Reuses, Recycles, Rethinks 13 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 14 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 15 6- Pfizer Green Chemistry Cradle to Cradle approach
  • 16. 7- SWOT Analysis 16 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