The Challenge: Post-Merger Disunity and Inconsistent Processes
In 1989, the merger of SmithKline Beckman Corporation (USA) and The Beecham Group (UK) formed SmithKline Beecham. This union of two distinct organizations created significant internal challenges. Within a few years, it became clear that the new entity lacked a consistent, reliable, and standardized approach to leadership planning and development.
The legacy companies had vastly different approaches. The Beecham Group had few formal human resources development programs, while SmithKline Beckman had processes that were not implemented consistently across the corporation. This disparity contributed to several urgent problems:
- Cultural Division: A "we versus them" mentality developed between employees from the two former companies, hindering the creation of a cohesive, global "us" culture.
- Diminished Loyalty: Employee loyalty had suffered as a result of the merger and the subsequent organizational uncertainty.
- Limited Advancement: Like others in the pharmaceutical industry, the company was downsizing and reducing its hierarchy, which limited traditional opportunities for employee advancement.
A Mandate for a Unified Solution
By early 1993, senior management recognized the need for a structured approach to talent and leadership. They tasked the human resources team with creating three distinct, company-wide initiatives:
- A succession planning process
- An executive development process
- A leadership competency model
Forging a Collaborative Design
Three separate teams were initially formed to address these mandates. However, the teams quickly realized that their targets were inextricably linked. Succession, executive development, and competencies all pointed toward a single, overarching goal: comprehensive leadership planning.
Recognizing this interdependence, the teams agreed to merge their efforts. They formed a single, unified team composed of human resources professionals from all major business operations—pharmaceuticals, consumer healthcare, corporate, Europe, and International. To ensure the process would meet real-world business needs, the team was supported by an advisory board of line managers.