LEADERSHIP DEVELOPMENT AT PFIZER

Introduction

In the past five years, Pfizer has made significant strides in turning learning into results. Behind this success is Pfizer’s reasoning that if improved leaders apply what they learn and use it as a practice field, they will be able to deliver improved business results at the same time. This prompted the company to ask, “How can we turn leadership development from an event into a process that delivers both improved leaders and business results?”

To get answers to their question, Pfizer enlisted the help of Fort Hill Company.  Together, the two organizations made leadership development a business process, with a new framework that goes beyond a focus on methods.    

A New Framework

Fort Hill Company often finds learning is thought of in terms of separate, components:

• Instructor-led
• Blended Learning
• Action Learning
• Simulations
• Coaching
• Interim project
• 360 Feedback

The desired outcome of this new framework – turning the leadership development programs into a business process – was to develop a repeatable and scalable process that would accelerate the growth of leaders.  In turn, leadership development is converted into improved business results and increases the value of what leaders contribute to the organization.

After 8 years of research, Fort Hill discovered 6 disciplines that, if used, can improve business results:

1. Define business outcomes – Learning professionals need to identify the end results the company desires.
2. Design complete experience – Learning is no longer just about a program, but about a process that takes into consideration the end results during the designing of everything from the invitation, to the documentation of the results.
3. Deliver for application – The real focus is on finding ways the participant can apply what they have learned to their day-to-day work tasks.
4. Drive follow-through – The goal is to make the transfer of learning into a business process similar to any other business process leaders face in the company.
5. Deploy active support – Learning professionals develop ways to support managers who are engaged with their direct report, and who have participated when they return from the classroom session to help those managers encourage participants to apply what they have learned.
6. Document follow-through – Strategically plans what type of data is needed to establish the ROI of program deliverables. 

Pfizer’s First-Line Leading Edge II

This program provides foundational development for leaders and, although it targets first-line leaders, it is available for other employees as well. Since key stakeholders recognize the need for Pfizer to provide development for first-line leaders, it is well supported in the company, enabling participants to focus on their learning. 

The program starts with learning maps to link the business context for the company with colleague engagement.  This topic is significantly important to Pfizer, and helps to show first-line leaders how they help the company drive business outcomes individually and as a team.   

Pfizer discovered three core elements to leadership development:

• Job Experience
• Coaching
• Learning activities

Of the three, formal learning activities have the least weight in developing people; this is not meant to minimize its impact. The diagram to the right shows how the three core elements are related and build upon each other.  The company came to understand that the strength of the development process lies in the robust interfaces between the pillars more than the excellence of any one pillar.  The more a company focuses on those interfaces, the more impact it will have on results.

As a result, Pfizer focused on connecting coaching and action plan development between supervisors and participants, before and after any formal intervention. Supervisors are encouraged to have direct contact with participants before the program, and participants and managers discuss what it will take to drive results and follow through.  Furthermore, participants complete a 360 assessment to create a baseline for further evaluation after the program.  After the program, learning professionals continue to drive follow-through by connecting the dots between pre-work, coaching, action plans, Friday Five’s, and electronic support in the form of e-mail reminders.  Additionally, participants have the opportunity to use peer support in the form of additional coaching to augment the other activities. Not all participants take advantage of the opportunity, but those that do feel it supports their development.  An additional 360 assessment is completed for participants 6 months after the program to help collect evaluation data.

According to the D3 discipline, results show that coaching by supervisors on action plans increased 13% from 2005 to 2006.  Participants who were coached by their supervisors had a greater change in job performance over time than those who did not.  In fact, participant’s low scores on development items motivated supervisors to be more involved through coaching.  Of note, however, those who were seen as high performers did not receive as much coaching by supervisors, and their performance levels stayed the same. 

 

Additional results indicate that 41% of first-line leaders had follow-up conversations with the employees who rated them during their initial 360 assessments.  This correlated to higher results for the same first-line leader participants on their post program 360 assessment. With this key message in data, Pfizer is encouraging first-line participants to continue this best practice.  97 % of first-line leaders saw net improvement in their leadership effectiveness after the Leader’s Edge II program. 

In addition, raters of these first-line leaders saw:

• 83% increased effectiveness
• 74% improvement of first-line leader behaviors
• 74% improvement of leader's development plan items
• 37% overall improvement in leader's behaviors

Based on the results, Pfizer is focusing their efforts on strengthening the connection between supervisors and their direct reports action plan.  They are also encouraging continued coaching to improve employee performance.  

Leaders of Leaders Advance Transition Program

Pfizer’s Advance Transition program is based on Michael Watkins’ research into transition points, and how they affect employee performance and targets mid-level managers.  The goal is to help leaders recognize and adapt to value and skill shifts in a changed role. In turn, this will help accelerate the value the employee contributes to the company and will minimize the impact of poor decisions made by leaders during transitions. 

According to Watkins, there are three types of transitions:

1. Role change – a promotion or similar upward movement in a company.
2. Cultural change – a lateral change by the employee into a new organization, a geographic move, or a transfer to a new function or department.
3. Organizational change – downsizing, restructuring, or a merger & acquisition.

 

Keeping in mind the transition types, there are four areas of focus for this program:

1. Alignment with Pfizer strategy to manage and deploy resources accordingly
2. Execution to improve performance for themselves and teams
3. Optimize their team and develop their people
4. Manage their personal strengths and vulnerabilities during change

Watkins notes that in Fortune 500 organizations, almost 25% of leaders change jobs every year. Of those leaders, approximately 44% fail to navigate the change effectively.  For every one of those leaders who fail, not only do they compromise their own performance but also the performances of up to 12 other people around them.

Each year in a typical organization:

• Leaders in transition in some way affect 45% of employees
• 40% of leaders under perform as they step into new roles
• Direct reports of struggling leaders under perform their peers by 15%

Watkins’ research shows it takes 7 months for a leader to become a net contributor of value for the company.  Before that they are learning their job rather than contributing at an effective manner or level, and are working towards becoming more effective.  Pfizer’s Advance Transition program is trying to shift that line to the left so leaders can be net contributors inside of 4 months. 

To support this goal, Pfizer has designed a complete experience.  This experience includes pre-program on-ramping, a 3 1/2 day on-site workshop, and a post program off-ramping. 

During the pre-program, participants collect data and set up processes for effective post program application and follow-up.  Data is gathered through intensive interviews of the participant’s boss, direct reports, peers, HR generalist, and – if possible – their predecessor.  With this data, they will be able to establish priorities and develop an execution plan during the on-site workshop.

The on-site workshop session is focused on creating and implementing an execution plan to use as a road map for how to proceed when returning to the job.  Leaders-as-teachers is used, as well as a strong bias to leadership commitment once the program is established.

The post-program process uses steps and triggers over the course of 13 weeks, with a variety of tools to ensure follow-through on the participant’s execution plan, including:

• E-mail reminders
• Friday Five’s
• Peer coaches
• Alignment conversations
• Post-program feedback
• 360 assessments

To date results from this program show:

• 83% of participants agree their transition is being accelerated
• 91% saw a change in behavior
• 88% of participants either agreed or strongly agreed with the statement, “The benefits of attending Advance Transition far outweigh the ‘costs’ (time away from job, cost of program, etc…)”

A survey of raters during the 360 assessment process stated they saw the following, which they directly attribute to Pfizer’s Advance Transition program:

• 91% saw team climates improved
• 87% say leaders improved their alignment with their boss
• 74% said leader participants executed better
• 62% of leaders experienced a breakthrough on at least one critical measure
• 55% said the leaders credibility improved

Pfizer took these results one-step further and, using a rigorous and conservative approach, attributes an additional $120,000 to the business annually per participant.  Including all costs associated with this program, a 461% return on investment was gained. 

These types of results have encouraged Pfizer to continue using the 6 disciplines framework, apply it to other programs, and commit to delivering additional improved results in business performance across the enterprise.