Human Capital Transformation: Multinational Pharmaceutical Companies and M&A | Deloitte US has been added to your bookmarks.
Human capital transformation helps multinational pharmaceutical companies through merger
Building world-class human capital management
To provide world-class human capital management services, many organizations have sought to transform themselves to focus on strategic human capital management delivery. The challenge now confronting companies is to transition to a more cost-effective service delivery model that leverages technology, while enabling leadership to focus on delivering better, faster, smarter, and more strategic human capital solutions.
Human capital transformation is an approach that helps companies define, structure and realize their human capital management strategy by focusing on the development and delivery of services that target their most important assets — employees. It builds a culture and operating model that helps everyone, including leadership, management and human resources (HR), to take responsibility for effective human capital management.
A world-class human capital management strategy comprises three primary characteristics:
- The organization's people-based programs, processes and technology are strategically integrated to maximize business results. Strategic HR does not exist in a functional silo that is isolated from the rest of the organization.
- Leadership, management and HR work together to develop and deliver effective, efficient people-based programs, process and technology to the organization. HR measurably tracks the organization's progress against goals.
- The administrative and compliance requirements of human capital management are conducted at minimum cost and are delivered at acceptable service levels in alignment with the strategy of the organization. The organization uses technology to allow HR to shift its effort to more strategic activities and to focus on supporting the business.
Two multinational pharmaceutical companies entered into a fast-paced merger. All human capital management systems, programs and processes needed to be redesigned to provide consistent, high-level solutions.
After initial fact-finding conversations, it was discovered that neither of the original companies had the appropriate human capital business processes, programs and employee benefits to move forward in the new organization. HR systems were disjointed and in need of consolidation and an upgrade. In addition, even with the combined employee population, there were limited resources to help create the new HR organization and a global HR information technology (HRIT).
How we helped
We provided the client with project management and disciplined methodology to determine and prioritize business needs. Once needs were prioritized, we were able to work with the client to create strategic human capital management business processes and programs to support their staffing, benefits, sales and marketing, and organizational effectiveness functions. These business processes were implemented globally to provide consistent, high quality solutions for the organization.
In addition, an enterprisewide system solution was developed to place 72 countries on a single HRIT system to provide all users with accurate, reliable information, including an upgrade to state-of-the-art software, the implementation of employee and manager self-service and a shared services organization.
The benefits for this client are numerous. Most pervasive is the enablement of HR professionals throughout the company to support their customers with top-notch business processes, programs and information. More specifically, the organization:
- Fully integrated all HR functions
- Hired and oriented a significant number of new employees in record time to support the sales and marketing function
- Harmonized its pension, 401(k) and health and welfare benefits
- Created global individual performance development, talent management and management development programs to develop and retain top employees
- Implemented an integrated competency model for IT professionals to provide direction for growth