culture of genentech and SWOT

1. Case Study
Genentech’s Work Culture and Practices
Prepared By:
Anamika Ray
Presented To: Ankur Saini
Dr. Shalini Khandelwal Ankur Sharma
Neha Behnot
Harender Singh
Prerit Sharma

2. INTRODUCTION
Founded in 1976 by Robert A. Swanson and Dr. Herbert W
Boyer, considered as the founder of the Bio-technology Industry.
Headquartered in south San Francisco California U.S.
Employs more than 1,100 researchers and scientists.
Focuses its efforts on five disease categories:
Oncology, Immunology, Tissue Growth and Repair, Neuroscience and
Infectious Disease.
Values are Integrity, Courage and Passion.
Genentech regularly receives awards and recognition for its overall
performance as a company, its management, its workplace culture, its

3. Robert A. Swanson &
Dr. Herbert W Boyer

4. BACKGROUND
• In mid 1970 Swanson approached Boyer to explore
the commercial potential of genetic engineering , this
led to the formation of GENENTECH.
• The success of GENENTECH encouraged biotech
researchers to join commercial ventures.
• In 1980 GENENTECH raised $35 million through
IPO.

5. • PROTROPIN growth hormone became the first
recombinant pharma product to be manufactured and
marketed by a biotech company.
• In 1990 it completed a $2.1 billion merger with Roche
Holding Ltd.
• In 2006 it announced ‘Horizon 2010’ a new corporate
growth strategy.
• GENENTECH’s revenue in the year 2008 was
$13,418 millions.

6. ORGANIZATIONAL
CULTURE

7. Robert A. Swanson
Herbert W. Boyer
Swanson wanted to create an Boyer strove to make an
organization that the best scientists in employee friendly
the US would want to join. environment, and a culture that
He realized that scientists and resembled the atmosphere in
researchers liked to have a certain university labs,
amount of freedom in their work. He encouraged researchers at
Therefore, he played an important role the co. to publish their research
in fostering elements like freedom for discoveries in journals, to
employees, flexibility, and informality establish reputation in scientific
in Genentech's culture... circles

8. The culture at Genentech was informal in terms of dress code, titles and
the office space allocated to executives
Friday afternoon parties named „Ho-Hos‟ were introduced in the early 80s
HO-Hos
•Rare at biotech co.,
•Contributed to establish as one
of the best work places in the
industry
•Interaction sessions
•Stress busters

9. “Discretionary time”
Genentech provided its employees with opportunities to dedicate 25%
of their work time to work on projects of their choice.
75% assigned work 25% dream projects
Employees Organization
Achieve Career goal Significant work result benefits
Work of interest No work undergo
Motivated Motivated employees

10. • Budget allocations with the involvement of the Researchers
Project Proposals –
researchers
Research Review Committee
(RRC)
R&D budgets
Priority of the projects
• Learning opportunities for administrative support staff
and employees - “Administrative Professionals
Appreciation Day”

11. • Employees professional growths
Surveys + training programs
Development courses for skill enhancement
Online courses were available to manage time
Special courses for employees identified for having leadership skills-
“fastracking managers for success”
•Work in collaboration
• Emphasized on its motto “In Business for Life”-to create
products that would make their patients live better. The
walls of the office had pictures of patients treated with co.
products

12. employee practices
•Respect and fairness towards
all employees
•Supported companionship amongst employees
•Initiatives for Employee friendly environment
~Interactive lunch sessions with the senior management
~Celebrating together occasions
•HRD introduced web casting within the co. This helped
connect the top management ,employees and staff together
•Fun culture
“working here has never been just a job because much emphasis is
placed on how work and personal commitments can coexist”

13. Employee Awards & Recognition

14. • Periodic recognition of employees for contribution to the
organization.
• Cash bonuses called “GenenChecks” were also awarded
to teams or individuals.
• Cash bonus was also paid on the referral program.
• T-Shirts and anniversary recognition awards.
• Upon every major achievement, the company held a large party.
• The company provided “Stock Purchase Plan”.
• Main focus was on science and research and to help
patients with medical needs.

15. Leadership
• Levinson, who succeeded G. Kirk Raab, was more focused on management.
• Sending of quarterly e-mails to employees providing them with various
information and asking for feedback.
• Levinson used his finance and information technology skills brought the
company out from a bad phase.
• Apart from Levinson, there were other top executives who were considered as
effective leaders.

16. “Diversity in action” plan
• Formulation of “Diversity in Action” plan (DIA) in 2001 for
recruitment of diverse talent pool.
• Formation of “Diversity Network Associations” for support and
networking activities.
• Launching of “Genentech Scholars Program” for financially weak
students.
• In January 2005, four employees were named as “Diversity
Champions”.

17. AT GENETECH

18. • Played role in creating informal culture
• Rigorous recruitment procedure for scientists
• No discrimination at workplace
• Low yearly employee turnover rate(5%)
• Positive impact of Orientation program
• Informal meetings
• It encouraged its employees who had dropped out
college, to continue
and complete their studies

19. • Offered annual tuition reimbursement of up to
$10,000
• It discovered and nurtured talent internally
(INTERNAL TRANFER PROGRAM)
• Promotion rate grew from 12.3% in 2001 to more
than 16% in 2004
• Genentech was largely
non-hierarchical.

20. EMPLOYEE BENEFITS
• Genentech's employee benefits program was
considered to be the best in pharmaceutical
industry
• Working part time-20 hours a week made
employees eligible for the benefits offered to full
time employees
• Employees received 12 paid holidays a year
• Guaranteed Ride Home Program

21. • Offered family and child care and working
mother assistance
• It provided legal adoption assistance of up
to $5000
• Offer to choose 3 medical plans
• Corporate bonus program
• It provided on-site personal banking
facilities on its campus

22. GENENTECH CULTURE
AT RISK ?

23. Since 1990’s Genentech had featured on the best employer list of many magzines
• Fortune
• Science
• Working Mother
• Essence
The company apart from this , Genentech also won many awards for its achievement and
work culture.
 Since its inception company had been keen on recruiting the ‘best academic minds ’ , it
was one of the first companies for which academicians had adopted to work.
 One of the main reasons why Genentech had been able to maintain its work culture was
of its relatively small size . According to some company executives , whatever has been
achieved in terms of employee commitment , satisfaction and loyalty over the years had
been possible because Genentech was not a very large company and most employees were
located in the company’s main campus
 The total number of employees at Genentech exceeded 9000 in 2006 and it had
recruited an average of 150 employees per month. It also anticipated a growth in staffing by
more than 15% by the end of 2006.
 however, Genentech seemed well on its way to becoming a large company and a lot of
aspiring scientists were pursuing carriers in that field. And as Genentech grew and new
employees were recruited , there was the possibility that the company would lose some
elements of its much admired culture.

25. Strengths
• Trust and Respect
• Scientific Leadership
• Superior Products and Customer Focus
• Exceptional People
• Frank Interviewer
• Teamwork and Collaboration
• Open, Direct Communication
• Diversity
• Informal, Enjoyable Environment

26. weakness
• Grooming scientist at Genentech.
• 9000 employees in 2006, but only 1000
number of sales force.
• Genentech’s Product marketed by Roche.

27. Opportunities
• Learning opportunity for administration
support staff.
• Meeting of new recruits with top level
company executive.
• Scholarship program for employees.

28. Threats
• Pessimistic view of researchers regarding
joining Genentech.
• Growing number of competitors.
• CEO Raab scandal.
• Government regulations