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 Peopl

e

Superior

Performance

Entrepreneurship

Customer

Orientation

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 EuropeCIS for the undivided USSRAAMLA for the rest of the worldAPI for the intermediaries sale

• Two things characterized Lupin: Centralized approach to managementAn 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 MANAGEMEN

T

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 ProgrammeAMEX for Frontline Sales LeadersLeader Plus for Frontline Leaders in ManufacturingLeadership effectiveness programmes for potential leaders in Research. The Lupin Learning CentreThe 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

BuddyNew recruit 1

New recruit 2

New recruit 3

New recruit 4

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 ELEMENTSLMBLP

Understanding of Business Concepts

Leadership Development

Practical In-Lupin Experience

Lupin Learning CentreLonavala

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 industryPharma 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 industryDomain focused industry so it sticks to domain specific skillsTalent Drain

• Managing sub-par talent

Recruitment Issues• Quality of recruits being hired

Not hiring careerists.Low on intellectual abilities.

• Recruitment criteriaLack of clarity in hiring criteriaCompromise on talent

• Recruitment ProcessNo 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 levelScientific communication skillsPresentation skills

• At senior levelDevelopment/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