Caryn Parlavecchio Vice President & Head of HR, NPC and US Country Head of HR September 30, 2015

Novartis Pharmaceuticals Corporation

Working to Ensure Workforce Diversity

Today’s Agenda

§  Background •  About Novartis Pharmaceuticals Corporation (NPC) •  My Background and Role at NPC

§  Case Study: Women in Leadership at NPC •  Framework •  Key Drivers in Action

§  Broadening Our Focus •  D&I Strategy •  Talent Goals •  Focus on Multi-Cultural Leadership •  External Data Points – People of Color

§  NPC’s D&I Results – By the Numbers

§  Q&A

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About Novartis Pharmaceuticals Corporation (NPC)

§  U.S. affiliate of Basel, Switzerland-based Novartis AG

§  Mission is to improve people’s lives by pioneering novel healthcare solutions, reflecting unique products and services to support patients in a number of disease states

§  Access to medicines is a central tenet of our company, and we offer assistance to patients experiencing financial hardship, enabling them to better manage their healthcare

§  Proud to be ranked #1 on the 2014 and 2015 DiversityInc Lists of “Top 50 Companies for Diversity” – and honored to receive the 2014 DiversityInc Special Award for Diversity Progress

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A Few Words about Me §  Jersey Girl at Heart – Jersey Strong!

§  Seton Hall Alum – Go Pirates! •  BA, English •  MA, Counseling

§  Over 20 years of Human Resources experience:

§  Professionally proud of: •  Working for a patient-focused organization; creating

more moments and more memories for patients, families and caregivers

•  Creating an organization that reflects the patients and communities we serve; and a culture focused on inclusion, innovation, agility and resilience

§  Personally proud of my family – and a firm belief that we can have it all!

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Women at Work: In the News...And Data-Worthy

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Source: Center for Talent Innovation

Focus on Women’s Leadership at NPC: Framework for Success (Key Drivers)

Strong, Ambitious Talent Doing What’s Necessary to Succeed

Forward-Thinking Leaders Visibly Taking a Stand

Grass-Roots Efforts Collaborating to Create Community

Supporting Infrastructure Encouraging Growth & Development

Making a Commitment

& Shifting Our

Culture

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§  Design programs to build leadership skills

§  Leverage global offerings

§  Support culture of inclusion

Focus on Women’s Leadership at NPC: Key Drivers in Action

§  Think broadly about leadership positions

§  Embrace progressive talent strategies

§  Create a mentoring and sponsorship culture

§  Recruit broadly – and identify future leaders

§  Think outside the box about development

§  Focus on metrics and data – at all levels

§  Leverage Diversity and Inclusion efforts

§  Encourage associates to participate in ERGs

§  Create a culture where all perspectives and experiences count

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Getting Strategic about D&I – In the Context of Business & Organizational Evolution

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D&I Strategy – Areas of Focus Aligned with Business, Talent & Culture Goals

D&I Strategy Aligned with

Business Goals

D&I Strategy Aligned with Talent Goals

Patient Needs & Insights

Mentoring & Development

Patient Outreach &

Connections

Touch-Points & Communicatio

n

Patient Understanding & Engagement

Integrated Talent

Processes Workforce

Goals

Workplace Flexibility

D&I Strategy Aligned with

Inclusive Culture Goals

Cross-Cultural Competency

Expanded Reach of Efforts (Global,

External)

Enhanced Recruiting

Training & New

Outreach Channels

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Talent Goals – With Specific Focus on Data, Recruiting, Talent Processes & Mentoring/Development

Diversity Attraction & Brand Strategy

Integrated Talent Processes

Data-Focused Workforce Goals

Focus on Mentoring & Development

OTR Organizational Talent Review

Talking Talent

Mentoring Website & Learning

Portal

RPO Recruitment

Process Outsource

Model

Multi-Cultural Development

Program

Employee Resource Groups

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Social Media

Microsites & Talent

Communities

Business-Specific Sourcing Strategies

§  Design programs to build leadership skills

§  Leverage global offerings

§  Support culture of inclusion

Focus on Multi-Cultural Leadership at NPC: Framework for Success (Key Drivers)

§  Think broadly about leadership positions

§  Embrace progressive talent strategies

§  Create a mentoring and sponsorship culture

§  Recruit broadly – and identify future leaders

§  Think outside the box about development

§  Focus on metrics and data – at all levels

§  Leverage Diversity and Inclusion efforts

§  Encourage associates to participate in ERGs

§  Create a culture where all perspective sand experiences count

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External Data Points – People of Color

Sources: “Vaulting the Color Bar: How Sponsorship Levers Multicultural Professionals into Leadership” – Center for Talent Innovation, “Cracking the Code that Stalls People of Color,” – Harvard Business Review and US Department of Labor.

11% Of Executive Posts

in Corporate America Are

Held by Professionals of Color

People of Color Who Have

Sponsors Are

60% Less Likely to Quit In Any Given Year

And Are

65%

More Likely to Be Satisfied with Their

Rate of Advancement

37% Of African-Americans

& Hispanics

45% Of Asians

Compromise Their Authenticity at Work

40% Of African-Americans

16% Of Asians

13% Of Hispanics

Say They Have Experienced Racial

Discrimination at Work 40%

Of African-Americans

33% Of People of Color

Overall

Feel Like Outsiders in Their Corporate

Culture

The Total US Workforce Is...

16% Hispanic

12% African-American

5%

Asian

26% Of African-Americans

84% Of Asians

80% Of Hispanics

69%

Of African-Americans Say Feedback Is

Absent, Overly Vague or Contradictory

8% Of People of Color

Have a Sponsor

20% Of Hispanics & Asians

Feel Obliged to Sponsor Others of the Same Race/Gender

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NPC’s D&I Results – By the Numbers

50%

Source: Novartis Pharmaceuticals Corporation data as of year-end 2014 (unless otherwise noted).

52% Of Associates Belong

to at Least One of NPC’s 19 ERGs

AND

75% Of ERG Members

Are Women AND

49% Of ERG Members

Are People of Color

Of the NPC US General Medicines

Leadership Team Including: US Country Head & President NPC

Head, US Medical & Chief Scientific Officer

Chief Compliance Officer Head, Communications

Head, Human Resources Head, Cardiovascular &

Respiratory Business Unit Head, Immunology &

Dermatology Business Unit Head, Neuroscience

Business Unit

12% Of Workforce Are Late Gen Xers or Millenials

67% Of Promotions

into Management Went to Women

54% Of Total Workforce

Are Women AND

31% Of Total Workforce Are People of Color

52% Of Management

Associates Are Women AND

32% Of Management Associates Are People of Color

1,024 Active

Flex Work Options AND

25% Of Flex

Work Option Users Are Men

81% Total Retention Rate

for Women AND

78% Total Retention Rate

for Men

Women Account for More than

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Questions? Comments?

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