Organization and Talent Review
The annual worldwide talent assessment known as the Organization and Talent Review (OTR) helps to maximize our associates' potential and fuel our business. By tracking performance and updating associates' development plans, these reviews are critical to the future employability of associates and to succession planning.
As cross-functional teams become more common throughout the company, diverse backgrounds and experience are increasingly important for senior executives. The OTR helps identify associates who would benefit from rotations between assignments in country organizations, regional organizations and group headquarters in Switzerland. As the OTR has expanded, these rotations have become more frequent across our broad and diverse worldwide talent pool.
The OTR has also made it possible to ensure there is room at the top of the company to reward loyalty and commitment. In 2006, Novartis exceeded a group aspiration of filling 77% of leadership positions with internal candidates. As recently as 2003, the proportion of internal promotions was 51% and in the year 2000, the figure was only 21%.
The OTR is truly a global program. It is used in China, for example, one of our leading growth markets, in an effort to retain top talent amid a strongly accelerating economy and high demand for managers. At Novartis operations in China, the annual rate of management turnover is currently running below 15%, an achievement in a nation where turnover at international companies often exceeds 20%. This reflects, in part, a rich array of Novartis career development programs.
Among these, we offer a Master's in Business Administration program at Peking University designed for Novartis middle managers from various divisions, in collaboration with the China Center for Economic Research. Course work is based on actual Novartis operations and allows managers to benefit from the problem-solving experiences of others.
We also offer the Trailblazer rotation program, in which senior Chinese Novartis sales executives spend 12-18 months in the US, absorbing best practices from peers.
Similarly, Novartis has moved a number of executive learning programs, normally held at elite US and European business schools, to China, giving Novartis managers from around the world a first-hand chance to see and understand the transformation of China and its economy.
Novartis develops and strengthens its young talent pool through global development programs. Associates in varied disciplines, including Finance, Human Resources and Research, benefit from international placement for two to six years.
Additionally, local development programs give recent graduates and young associates the opportunity to gain cross-functional experience and exposure to management responsibilities.