CORPORATE TALENT PROGRAMMES - THE STORYLINE 2013

LUNDBECK IN BRIEF We are an international pharmaceutical company specializing in central nervous system disorders 

Founded by Hans Lundbeck in 1915

 An

integrated company with core competencies in research, development, production, marketing and sales



International presence with pharmaceuticals in more than 100 markets



Marketed pharmaceuticals include treatments for Alzheimer’s disease, depression and anxiety, epilepsy, Huntington’s disease, Parkinson’s disease and schizophrenia/bipolar disorder



Headquarters in Copenhagen, Denmark

 Approximately

5,800 employees in 57 countries

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2012 revenue: DKK 14.8 billion (approx. EUR 2 billion/USD 2.6 billion)



Rated No. 1 in PatientView 2012 patient group survey on pharmaceutical NOT FOR PROMOTIONALability USE companies’ to meet patient expectations

GLOBAL PRESENCE

   

Headquarters Research and development facilities Production facilities Sales

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Talent Management in H. Lundbeck From By Business Unit Mgmt. Teams

Selection No cross organisational consultation

Nomination and Selection done through OR and EOR, Final Validation (and decision on strategic seats) by HRC Common Talent selection criteria established

Corporate Talent Programs (Navigator & Voyager) with:

Focus

Business unit specialisation

Towards

To

• Strong link to Lundbeck Business

Integrated talent & succession management

• Cross organisational approach

•Building a cross organisational understanding & mindset

Effect

Designed to support the needs of the individual business Unit

• Talents as task force resource • Succession management pool (also cross organisational)

- 2010

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2011+

Why?

Short-term: Accelerated development and retention of critical talents to ensure succession on strategic positions

Long-term: Building future core capabilities and reinforcing a corporate mindset NOT FOR PROMOTIONAL USE

Success Criteria Improved succession planning for critical positions Cross-organizational transparency and mobility of critical talents Accelerated Development to mature critical talents for future use Retention of critical talents NOT FOR PROMOTIONAL USE

The Talent Accelerator – Surrounding the Voyager Talent

Manager Learning Partner

HR

Individual Development Plan

Learning Team

Coach

360° Feedback

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AC/DC Feedback

Overview of Roles and Availability in the Voyager Programme

Coach

HR

Manager

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External, hired to guide the IDP process (3 sessions) and then 1 follow up session between each module

Direct support during modules; 1:1 sessions in connection with modules, and when needed for additional sparring and questions

Direct support on frequent basis; at least 2 meetings with IDP focus between each module; Sparring; Aligning expectations with the organisational needs; Help prioritising actions.

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Overview of Roles and Availability in the Voyager Programme Learning Partner

Learning Team

AC/DC Feedback

360° Feedback

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Another talent in the programme, Buddy system where they sparre with the same person through out the programme.

The team that will work together during the Lundbeck Challenges I and II; Teams are used for feedback and sparring throughout the programme

Individual feedback report, with the results from the Development Centre, Used in the IDP Process

Received at Module 1; Used in the IDP Process

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Process: How we created the talent programmes POD Talent & Leadership Development Sounding Board (France, Germany, Italy, US, Canada, China, Denmark)

Talent Reference Board (EKM, DALS, RUNE, MVS, CHOU)

Brainstorms

Global HR Managers CMG

Condensation

Discussions

Navigator & Voyager NOT FOR PROMOTIONAL USE

Navigator: Creating clarity – Identifying future career Aspirations Purpose: - Create clarity on future career aspirations - Guide the talents in reaching their next potential Key outcomes:

Enabling talents to mirror their career aspirations in a global and strategic perspective Providing talents with a cross organisational understanding and network ensuring the foundation for future collaboration and mobility

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Programme overview – Navigator 2 Years

Local Challenge Module 1

›

Module 3

THE FULL LU VALUE CHAIN

KEY TRENDS AFFECTING PHARMA & IMPACT ON LUNDBECK

IDP dialogue with immediate manager

3 days

IDP dialogue with immediate manager

3 days

Module 4

INTENSIVE ACTION LEARNING IDP dialogue with immediate manager

3 days

Individual Development Plan (IDP)

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5 days

Individual conclusive talks and IDP revision

Talent Pool

Selection

UNDER STANDING SELF

Validation of IDPs with Business Units

Module 2

Voyager: Creating a CrossOrganisational Mindset Purpose: - Create a Cross-Organisational Mindset - Guide the talents in reaching their next potential Key Outcomes: Enabling talents to mirror their career aspirations in a Global and Strategic Perspective Creating Unique Business Insights across the Value Chain

Developing Key Competencies: Execution, Strategic Thinking, Entrepreneurship, Influencing and Driving Change

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Programme Overview – Voyager 2 Years

Create Results – Together

Own the Future

V-Club

Lundbeck Challenge I

Job Shadow 3 days

4 days

V-Club

A Lundbeck Business Perspective

Job Shadow 3 days

2+1 day

V-Club

Job Shadow 3 days

4 days

Individual Development Plan (IDP)

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Lundbeck Challenge II

2+1 day

Individual conclusive talks

Talent Pool

Selection

Discover your Passions

Better for Less

Be Ambitious and Take Action

Target Group / Inclusion Criterias Navigator: Typically talents that have been in a 1st managerial position (or equivalent) for some years and are ready to develop further on both personal and professional levels. Voyager: Typically talents that have been in senior managerial positions (or equivalent) for quite some years, are well-founded in their career path and has a recognized performance record in the organization.

Inclusion Criterias:

1. Critical in succession 2. High Performance 3. High Potential and match the Characteristics:

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- Lives the Operating Principles - Is Ambitious about Own Career - Global & Cross-Organizational Orientation - High Ability to Adapt and Cope with Changes

Talent Programmes Seat Distribution 20 Seats in Base Split CMG; 4

R&D 6 SOE 2 Corporate Functions 2 Commercial Operations 10

R&D; 6

4 Seats Distributed by CMG

SOE; 2

Com. Ops.; 10

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Corp. Func.; 2

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Timing Voyager Final validation in HRC Nomination for Navigator and Voyager Voyager selection in BU as a part of EOR

Navigator final Validation in HRC NOT FOR PROMOTIONAL USE

Navigator selection in BU as a part of OR

Appendix

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Content Navigator Modules Module 1: Understanding self

Focus on Career aspirations - 360/MBTI feedback – teambuilding – reflection – initiate creation of individual development plan (IDP)

Module 2: The full Lundbeck value chain Introduction to the Full Lundbeck Value Chain – special focus on the interfaces between business units in relation to product launches – group work on topics from product launches of future Lundbeck product – presentation to internal board from across the organisation

Module 3: Key trends affecting Pharma & impact on Lundbeck Business understanding – focus on the complexity and dynamics of our industry and the impact on Lundbeck – building a strategy for a case company

Module 4: Intensive Action Learning

Based on a “Real Life Challenge” at Lundbeck – Teams will make a proposal of how to address the challenge and present it to a Board of top managers from across the organisation.

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Content Voyager Modules Own the Future – Discover Your Passions -

360/MBTI testing – development assesment center – teambuilding – substantial feedback for individual development plan (IDP) – tapping into passions as inspiration for future development

Create Results – Together – Lundbeck Challenge I -

High Performance Projects at Lundbeck - challenge delivered with cross-organizational scope– supported by sessions related to specific task and sessions on project governance in a global/cross-organizational setting – 2-3 months for delivery – delivery of inspirational input to relevant board and external professional expert for evaluation – feedback for future development (team and individual)

Be Ambitious and Take Action – A Lundbeck Business Perspective -

Focus on development of the key programme competencies - Day 1: A Strategic Mindset Day 2: Leading and Influencing Others Day 3: Decision Making and Execution Day 4: A Business Perspective on Lundbeck – Dynamics of the Pharma Business as an Industry - Lundbecks Strategy and Business model followed by Group Discussions with CMG

Better for Less – Lundbeck Challenge II -

High Performance Projects at Lundbeck - challenge delivered by CMG – supported by sessions related to specific task – 2-3 months for delivery – delivery of inspirational input to representatives from CMG and external professional expert for evaluation – feedback for future development (team and individual)

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Content Voyager Add-ons V-Club 4-5 sessions (1h) pr year – Alternating between a) Webinars (Business Understanding, Innovation, Future Challenges) or b) Presentation of a functional BU (prepared by the voyager talents from that area)

Job Shadow An Educational Journey inside Lundbeck – 3 visits (of 3 days) over 2 years – first visit at learning partners location – visits will be spread across the value chain to maximize cross-organizational understanding but with thoughts for usefulness in the talents current area

Purpose of Voyager Add-ons is to increase understanding of: Lundbeck’s value chain Own role at Lundbeck seen in a larger perspective Possibilities for cross-organizational synergies

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Budget Overview Talent Programmes Navigator (75.000 DKK) (incl. 13.000 DKK Coaching) 24 participants

Module 1: Module 2: Module 3: Module 4:

254.723 234.210 206.175 508.100

DKK DKK DKK DKK

(12.000 per participant) (6.000 per participant) (14.000 per participant) (25.000 per participant)

Voyager (107.000 DKK) (incl. 21.600 DKK Coaching) 24 participants

Module 1: Module 2: Module 3: Module 4:

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504.000 DKK 336.000 DKK 873.600 DKK 336.000 DKK

(21.000 (14.000 (36.400 (14.000

per participant) per participant) per participant) per participant)

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Additional Benefits For Lundbeck in having corporate talent programmes: Boosting high performance Employer branding Task force for extra assignments

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Talent Overview Navigator: Q4 2010: 48 Navigator talents, 24 male, 24 female, average age around 30, from 17 different countries Q4 2011: 24 Navigator talents, 14 male, 10 female, average age early 30’es, from 12 different countries Q4 2012: 24 Navigator talents, 15 male, 9 female, from 12 different countries Voyager: Q2 2011: 24 Voyager talents, 19 male, 5 female, average age late 30’es, from 12 different countries Q2 2012: 24 Voyager talents, 17 male, 7 female, from 8 different countries Q2 2013: 14 Voyager talents, 8 male, 6 female, from 7 different countries NOT FOR PROMOTIONAL USE