The Roche Agile Transformation Journey: Key Insights and Strategies
Introduction
This blog explores the agile transformation journey of Roche, the world’s largest biotech company, providing key insights and strategies for cultural and organizational change.
Introduction to Roche
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Roche is the world’s largest biotech company, founded in 1896.
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They have 95,000 employees and invest $110 billion in research and development every year.
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Roche has two divisions in Sweden: Roche AB for pharmaceuticals and a diagnostics division.
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They work in various therapeutic areas such as cancer, neurology, and gene therapies, focusing on innovative research to support global organizations.
Culture Transformation Initiatives
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The company initiated a cultural transformation to shift from internal focus to external focus.
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The transformation team included internal influencers and the leadership team to drive the change.
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Psychological safety was promoted to encourage open communication and risk-taking.
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A ‘failure day celebration’ was introduced to openly share and learn from mistakes.
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An initiative to pick a coach from within the organization was implemented to encourage learning from diverse perspectives.
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A feedback app was launched to promote one-to-one and peer feedback, although the effectiveness is still being evaluated.
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Over half the organization underwent training on co-creation to shift towards customer-centric operations.
Key Points of Christian’s Presentation
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Christian focused on the concept of co-creation and how it allows the company to get solutions together with its customers, thus improving understanding of their needs. This shift into virtual space signifies a significant change in the interaction approach.
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The company initiated an incentive program to encourage customer feedback, resulting in the collection of over 3,000 feedback cards from 11 sales representatives within nine months. This demonstrates a strong customer feedback culture within the organization.
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In addition to feedback collection, the company also aimed to include customers in the dialogue by requesting patient stories to visualize the value and challenges of their innovations.
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The implementation of the ‘five-finger assessment’ tool allowed employees to evaluate the value of initiatives for patients, customers, the organization, and themselves before proceeding with the implementation. This facilitated quicker decision-making and empowered individuals to take ownership.
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The organization underwent a significant structural transformation, eliminating traditional planning processes in favor of a more rapid and iterative approach. This resulted in a shift from internal focus to more external focus, with a focus on speed and empowerment.
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The company established a culture of learning from others and actively seeking inspiration from external organizations. This involved regular interactions, knowledge sharing, and inspiration tours to foster learning and networking.
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Leadership within the organization shifted from a controlling and directive approach to one of empowerment and experimentation. The leadership team, now known as the enabling team, focuses on providing visionary direction, coaching, and support, while encouraging self-leadership among employees.
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The impact of these changes was evident in the form of increased customer engagement, new partnerships, reduced internal processes, and improved organization-wide engagement. The successful transformation was reflected in the growing interest from healthcare professionals to join the organization.
Preparation for the Launch of the New Organization
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Before the launch of the new organization in August, several key steps were taken as part of the preparation.
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The process started with a year-long focus on self-leadership, enabling team change, and culture change.
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Following that, the focus shifted to addressing the way of working for about half a year.
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Only at the very end was the organizational structure reorganized, and this was done through an iterative process.
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The reorganization involved inviting diverse people within the organization to define the new organizational structure.
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Feedback sessions were conducted to gather input and make necessary adjustments based on the feedback received.
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The process was inclusive, engaging, and sought to involve perspectives from various stakeholders, including customers.
Key Points: Agile Transformation Journey in the Pharmaceutical Industry
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The transformation journey was driven by a commitment to deliver value for patients and improve their lives.
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The idea of using a structured approach to transformation was not favored, and the emphasis was on experimentation and learning.
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The initiative drew inspiration from global leaders but was tailored to the specific needs and culture of the organization.
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The transformation journey involved shaping culture, structure, and people, with a strong focus on culture as the most enjoyable part of the process.
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The approach was not a ‘big bang’ transformation but rather a gradual process over several years.
Conclusion
The journey of Roche’s agile transformation provides valuable insights into embracing agility, fostering customer-centric operations, and enhancing organizational culture. These strategies serve as a benchmark for companies aiming to navigate a successful cultural and organizational change.