People strategy
As with many other companies, globalisation underscores our need for a more mobile and diverse work force. Flexible leaders with multicultural backgrounds are needed to help seize global business opportunities and face increasingly difficult and complex challenges.
At the same time, the competition for this kind of top-level management talent is intensifying. Companies offering exciting work, a strong values-driven culture and a well-executed strategy for developing their people are better prepared to win this war.
Novo Nordisk is responding proactively to the globalisation challenge with our People Strategy. It includes five global focus areas: remuneration, recruitment, talent management, performance management and organisational design. Each area is developed to drive internationalisation, mobility and diversity within the company by creating global standards and opportunities.
Performance 2006
Globalisation and talent development were key priority themes for the People Strategy in 2006. This is reflected in the progress made in 2006 in each of the five global focus areas:
Remuneration: To support the goal of a competitive remuneration package based on fair and globally consistent standards, the company's remuneration principles have been reviewed and updated. Implementation activities have been initiated in 2006 and will continue throughout 2007. In addition, a global position evaluation system is now in place for all management and specialist positions, thus securing uniform principles for job classification (International Position Evaluation, IPE).
Recruitment: To broaden the base of talent recruitment from universities around the world, Corporate People and Organisation is now actively seeking best practice advice from graduate programme managers in the company’s affiliates. A networking meeting of programme managers was held in January, 2006, at which participants exchanged ideas on how best to promote Novo Nordisk as a workplace at a variety of universities. The meeting will be repeated in 2007. In 2006 the company also intensified its recruitment efforts through the Community of European Management Schools.
Talent management: In 2006, the theme of personal leadership was introduced into the two global talent pools within Corporate Leadership Talent Management: the Lighthouse programme for vice presidents and the Greenhouse programme for manager potential. In addition, a new Spotlight programme focusing on personal leadership was launched in 2006; this programme will be conducted through 2007 for 284 of the company’s top managers.
Performance management: A global performance management tool called the People Performance Process (3P) was rolled out in 2006 for a total of 2,272 users, including about 1,200 top managers and senior specialists. This new performance management process is used to create a more transparent link between job, performance and remuneration, and is seen as a key factor in attracting, motivating and retaining talents globally. It is also expected that 3P will ensure alignment between company and individual goals and give more flexibility in identifying the best people for vacant positions across borders and functions.
Organisational design: In response to documented needs, it was decided in 2006 to allow the possibility of adding more managerial layers to the Danish organisation. To further strengthen organisational development in Novo Nordisk, Corporate People & Organisation is now developing the area of organisational design as a fifth core capability. A project group has been established to develop the capability on the basis of internal and external trends, knowledge and experience. This material will be used by the company’s HR partners in discussions of future changes in organisational design. Work on this project will continue through 2007.
Other initiatives
Workplace health and safety: In 2006 a worldwide Occupational Health and Safety Management System became effective as a Novo Nordisk quality assurance document. The system applies to all Danish sites and to the worldwide Product Supply organisation. In addition, a number of health-related initiatives, including a pilot project on stress, were introduced in 2006 by the company’s health promotion programme NovoSund (NovoHealth). Novo Nordisk works to produce solid data that can show the impact of various health interventions. In Denmark, where the company’s headquarters are located, systematic workplace assessments are conducted once a year to promote workplace safety and improve working conditions. Through their elected health and safety representatives, all employees have the chance to contribute to this process.
Diversity and equal opportunities: A company-wide summit on women in management was among the initiatives taken in 2006 in the area of diversity. Diversity is a priority in the corporate Balanced Scorecard, and all senior managers must prepare action plans and follow-up measures for addressing diversity in their areas.
Training and development: The Novo Nordisk Way of Management requires that all employees have a development plan that is reviewed annually by the employee and his or her manager. Relevant education, training and courses are offered to increase skills and knowledge, and to help employees meet business goals. Apart from our talent development programmes, the company offers a wide variety of courses for the 4,000 operators working at Danish production sites. The company’s talent pools are a priority for preparing tomorrow’s leaders.
Investments in people development: In 2006 investments in people development amounted to an average of 11,293 Danish kroner per employee (direct training costs only). In the 2006 annual employee survey of the working climate, eVoice, participants responded with an average score of 3.9 (out of a possible 5), indicating their level of agreement with the statement “My work gives me the opportunity to use and develop my competences/skills”.
Corporate culture (TakeAction!): The values of Novo Nordisk are further driven through the employee volunteer programme TakeAction!, which encourages employees to undertake team activities that contribute to the Triple Bottom Line.
This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.
