1-2 Case Study- Novartis

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1-2 CASE STUDY: NOVARTIS May 18, 2024 OL-667-X4121 Human Resource Info Systems 1-2 Case Study: Novartis Christopher Malcovish Southern New Hampshire University

1-2 CASE STUDY: NOVARTIS 2 What are the major challenges facing the Novartis HR organization in the implementation of the HRIS (technical, organizational, managerial)? Ensuring a successful launch of a new HRIS requires careful consideration of several key factors. One of the main obstacles for the Novartis HR department is the heavy demand this large-scale project will place on the IT team. Developing a global information system means the IT department must create a platform that adheres to specific standards. For example, employees should have the capability to update their personal information in real-time through the web, and managers should be able to access global HR activity reports based on current, consolidated employee data (HBR, 2004). Despite the initial difficulties for the IT team, the system will ultimately bring significant benefits to the organization. This new system will also drastically change how HR personnel and managers perform their roles. They will need to adapt to new ways of accessing and managing employee information. For the HRIS implementation to be successful, the HR department must dedicate substantial time to collecting and inputting data into the new system. The overall success of the HRIS will hinge on accounting for various local market conditions. Additionally, cultural differences represent another hurdle, especially regarding communication. Just because a concept is understood in one country does not ensure it will be clear to users in another. This implementation will also significantly alter how human resources personnel and other managers perform their duties. These individuals will need to adapt to new methods of accessing employee information. For the HRIS implementation to succeed, the HR department will need to invest considerable time in gathering and entering data into the new system. Organizationally, the success of the HRIS will depend on considering various local market conditions. Additionally, cultural differences pose another challenge, particularly in terms of

1-2 CASE STUDY: NOVARTIS 3 communication. Just because one country understands a concept does not guarantee that it will be clear to users in other countries. Why do these systems sometimes fail? Inadequate planning is another major factor that can derail these projects; thus, meticulous planning by the organization is crucial for a successful HRIS implementation. Developing a comprehensive timeline can streamline the process, saving both time and money. Outsourcing the implementation of an HRIS to an external company can be fraught with risks and may result in failure. External vendors often have different priorities compared to the organization undergoing the change. As observed, "Vendors excel at marketing and highlighting potential benefits, but they should also focus more on aiding clients in achieving successful implementations” (HRD, 2017). This misalignment can create significant challenges, as vendors might emphasize their product's capabilities without fully addressing the unique needs and strategic goals of the organization. Communication breakdowns also contribute to system failures. Keeping employees well- informed fosters better engagement. Leaders who actively seek employee feedback and clearly articulate the organization’s vision regarding the change will find more support and less resistance among the workforces. Effective communication and inclusive planning are essential to ensure a smooth transition and successful HRIS implementation. Given these challenges, what are the major obstacles and what will it take to overcome them? To tackle this challenge, the Global HRIS program team must carefully consider the diverse cultures and customs of the various regions to ensure effective communication. Additionally, time poses a significant obstacle for Novartis, as they initially set a timeline of two

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1-2 CASE STUDY: NOVARTIS 4 and a half years for the complete integration of the new HRIS. Trees Segers, the Global HRIS program manager, highlighted the potential for resistance at different locations, noting that employees might be reluctant to adapt to new daily HR tasks. Change is inherently difficult, both in business and personal contexts, and organizations must recognize that involving employees in the change process is essential for successful implementation. To mitigate resistance, Novartis has taken a proactive step by forming a guiding coalition. This coalition comprises knowledgeable and experienced executives who can leverage their expertise to support the company’s change efforts and drive the successful implementation of the new HRIS. Given a successful implementation, how will the role of HR be in the future? How will it be different from today? What competencies will be needed by HR professionals? Should Novartis successfully implement the HRIS, it will significantly transform the HR function. Currently, HR personnel spend 60% of their time on administrative tasks, which limits their capacity to serve as strategic partners. As one business leader at Novartis pointed out, HR is often seen as "custodians of policies and procedures, not custodians of the talent pipeline." The new HRIS would alleviate administrative burdens, enabling HR to shift focus towards more strategic, value-adding activities that support the organization’s long-term goals. Novartis' HR team is confronting substantial obstacles in the implementation of their HRIS. One of the primary challenges is overcoming employee resistance to new technology, necessitating comprehensive training programs. It's imperative for companies to avoid the pitfall of investing in systems that remain underutilized. To address this, the HR department must dedicate resources to thoroughly educating employees about the system’s features and benefits to ensure its effective use.

1-2 CASE STUDY: NOVARTIS 5 Moreover, the success of this initiative hinges on strong leadership and meticulous planning. Appointing a dedicated leader to oversee the HRIS implementation and developing a detailed project plan with clear timelines is crucial. Many HRIS projects falter due to inadequate planning, so breaking the process into well-defined phases is essential. As the role of HR at Novartis evolves, HR professionals will need to cultivate certain behavioral competencies to effectively function as strategic partners. The SHRM Body of Competency and Knowledge outlines these critical competencies, which include:  Leadership & Navigation: Guiding and influencing organizational initiatives.  Ethical Practice: Adherence to ethical standards and principles.  Relationship Management: Building and maintaining positive relationships.  Communication: Effective exchange of information and ideas.  Global & Cultural Effectiveness: Working in diverse and global environments.  Business Acumen: Understanding business operations and how HR practices contribute to organizational success.  Consultation: Providing expert guidance to organizational stakeholders.  Critical Evaluation: Analyzing data to make informed decisions. HR professionals at Novartis will need strong business acumen to understand the company's operations deeply and recognize how HR practices impact overall success. Leadership skills will be crucial for acting as change agents within the company. Additionally, excellent interpersonal skills will be necessary for building relationships and communicating effectively.

1-2 CASE STUDY: NOVARTIS 6 References Harvard Business Review (2004, January 14) Transforming Human Resources at Novartis: The Human Resources Information System (HRIS). Harvard Business Review. file:///Users/katievieira/Downloads/HR22-PDF-ENG.pdf Crash and Burn: HRIS rollout failures . (2017, March 20). Retrieved from HRD: https://www.hcamag.com/features/crash-and-burn-hris-rollout-failures-234634.aspx

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1-2 CASE STUDY: NOVARTIS 7

1-2 Case Study- Novartis

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