1. Information Technology’s Leadership Role in Times of Great Change
Our Agenda for Today
Pfizer as a Business
Information Technology’s Leadership Role in Times of Great Change
Not talking about technology, IT Governance, Security today. My two favorite subjects. Pfizer and leadership during org. change

2. Pfizer Inc
2004/2005
Pfizer’s capabilities

3. Where We’ve Come From
Founded in 1849 by Charles Pfizer and Charles Erhart in Brooklyn, NY
Charles Pfizer
Charles Erhart
NYC-based company – 155 years old
I’ve been here 2 years
First Product – Santonin Almond-Toffee
Flavoring Shaped Into a Candy Cone

4. Where We’re Going
“We have before us the opportunity to become an enduring leader, contributing more to human health than any company in history.”
Hank McKinnell
Chairman of the Board Chief Executive Officer, Pfizer Inc
“More to Human Healthcare”

5. Our Vision Our Purpose Our Mission
We dedicate ourselves to humanity’s quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer, and animal health products.
Mission – “Most valued to a number of constituents”
Our Mission
We will become the world’s most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live.

6. Connected to Our Vision
Our Leader Behaviors
Our Values
Beyond
Sustain Focus on Performance
Leadership # 1
Innovation
Create an Inclusive Environment
Performance
Respect for People
Encourage Open Discussion and Debate
Teamwork
Customer Focus
Manage Change
Community
Develop People
Integrity
“Leader Behaviors” – Operationalized values
Quality
Align Across Pfizer

7. The Power of Pfizer 2003 revenues: $45 billion1
World’s largest, most valuable research-based pharmaceutical company
Largest in human health and animal health, second in consumer health
Strong Performance
14 #1 medicines
16 medicines >$500 million in 2003
43 medicines >$100 million in 2003
Expertise in lifecycle management
Powerful Product Synergies
Largest, most-admired field forces
122,000 colleagues worldwide
World’s largest privately funded biomedical R&D organization
Well-known consumer brands such as Listerine, Lubriderm, Rogaine and Visine
Enhanced Global Reach
Revenue, colleagues, $7.9B R&D
$7.9 billion R&D spend projected in 2004
225 projects in development
Major R&D centers in USA, Europe and Japan.
High Quality R&D
Based on 9 core values, 6 leader behaviors
Successful team-based partnerships
Science-based, performance-driven
Innovative
Leading Corporate Culture
Annual Report

8. A Global Health Firm
16 State-of-the-Art Research & Development Campuses
Focus on Human and Animal Health Care Products
New London
(PGRD HQ)
New York
(Pfizer Inc HQ)
Truly global
122,000 Colleagues
Worldwide
Sales in 150+
Countries
81 Manufacturing Facilities in 37 Countries

9. An Extensive Product Portfolio
Key Products
Rx Pharmaceuticals
Consumer Health Care
Animal Health
Aricept
Celebrex
Diflucan
Lipitor
Neurontin
Norvasc
Viagra
Xalatan
Zithromax
Zoloft
Zyrtec
Benadryl
Cortizone
Desitin
EPT
Listerine
Lubriderm Neosporin Nicorette
Rogaine
Rolaids
Sudafed Visine
Clavamox/Synvlox
Dectomax
Equimax
Excenel/Naxcel
RespiSure/Stellamune
Revolution
Rimadyl
Products – Lipitor, Listerine
43 Medicines over $100 million*
9 Brands over $100 million
*Source: IMS

10. Business Performance

11. Pfizer Inc Revenues by Major Business Unit
2003 Pro Forma Total Revenues = $45.2B*
Consumer Healthcare (PCH)
$3.0B
Pfizer Global Pharmaceuticals (PGP)
$39.6B
$1.6B
Pfizer Animal Health (PAH)
$1B
$45B in 2003, $50B in % of sales from human pharma
Capsugel and Other
Source: 2003 Annual Report / Pfizer Finance
*Pharmacia revenues included post close of merger in May 2003

12. A History of Revenue Growth
19901
20002
20033 8% 3%
11% 2% 4% 8%
17% 7% 8%
18%
50%
77%
87%
Organic growth before W/L, Pharmacia after
Total Revenues: $5.9B
Total Revenues: $29.6B
Total Revenues: $45.2B
Rx Pharma
Non-Healthcare
Capsugel & Other
Animal health
Consumer Health
11990 Pfizer Annual Report
22000 Pfizer Annual Report, includes Warner-Lambert acquisition
32003 Pfizer Annual Report, includes Pharmacia acquisition as of May 2003

13. Strong Market Capitalization
$ Billions
Market cap = $4 (August 2004)
HSBC Holdings
Bank of America
American Int’l Group
Intel
Corp.
Wal-Mart
Citigroup
Pfizer
Exxon
Mobil
Microsoft
General
Electric
Yahoo Finance, 05 August 2004

14. Corporate Citizenship
Corporate Citizenship defines our role in the local and global community, and how we strive to conduct business responsibly in a changing world.
Operationally, this means:
Advancing good health
Engaging stakeholders in dialogue
Protecting the environment
Excelling at good corporate governance
Not just about making money

15. Access to Medicines
Access to medicines is what drives many activities over $600M a year in charitable contributions

16. Bringing Medicines to People in Need
In the US:
Pfizer Helpful Answers — A single point of entry to help patients find the program that works best for them
Pfizer Pfriends — Launched in 2004 to meet the needs of the uninsured. Regardless of age or income, anyone without prescription drug coverage can save on Pfizer medicines. For some it will reduce their costs by more than a third.
Connection to Care — Working with physicians, Pfizer helped over a million people gain access to medicines last year alone.
Sharing the Care — In partnership with community health centers, has filled more than 6 million prescriptions, worth more than $350 million, for over 2 million low-income, uninsured patients
U.S. access program

17. Bringing Medicines to People in Need
Around the World:
The Diflucan Partnership Program provides Diflucan free of charge and supports the training of health care professionals in the diagnosis and treatment of fungal opportunistic infections. The program serves nearly 100,000 patients, at close to 1,000 sites in 23 countries
The International Trachoma Initiative provides Zithromax donations to Ethiopia, Morocco, Tanzania, Egypt, Sudan, Vietnam, Mali, Ghana, Nepal and Niger, with plans for expansion to additional countries. The goal is to eradicate Trachoma, the leading cause of preventable blindness by 2020
Global access program

18. Where We’re Going
“We have before us the opportunity to become an enduring leader, contributing more to human health than any company in history.”
Hank McKinnell
Chairman of the Board Chief Executive Officer, Pfizer Inc
Our CEO and executives are committed to this goal. Why I am so glad to be here.

19. Information Technology at Pfizer
So, what about IT at Pfizer

20. What Does Great IT Look Like?
DIMENSION
LESS THAN WORLD CLASS
WORLD CLASS
Relationship with
the Business
Poor credibility, or order
takers – all about speed,
quality, and cost.
Leadership role in applying technology to
key processes (customers, suppliers, integrated “back office” employees).
Well defined common data, layered architecture up to business logic and user interface. Explicit agreement on what is “enterprise-wide.
Application
Portfolio
Functional silos by business unit (and/or
functions).
Technology
Infrastructure
Silos by technology,
business, or function.
Data movement (e.g., EAI) infrastructure, continuous improvement around costs, layered and flexible.
Organization
Structure
Silos for
technology, applications and
data. Focus on skills.
Common governance structure, including technology, data, application architecture, spending, people. Focus on leadership as well as skills.
My 27 years in this business
Spending
Habits
Highly variable depending
on business conditions.
Stable level of IT investment, with continuous cost reduction in the “base,” and well defined portfolio management process.
IT has a Unique Leadership Role to Play in Organizational Transformation

21. What’s Needed Is a Way to Accelerate Organizational Alignment, Where Appropriate and Make Change Happen Faster….
But How?
Strengths – very talented, committed people

22. Pfizer’s IT Organizational Strengths
Extremely bright capable people
Strong performance culture
Strong understanding of the business and technology
Extraordinary capacity for innovation
Sometimes “order takers”, Acquisitions
IT Mirrors the Rest of Pfizer – Incredible People

23. Pfizer’s IT Challenges
Not always seen as partners with other business leaders
Strong culture of decentralization
Two huge acquisitions in four years, resulting in incredible diversity of processes, systems, and infrastructures
Acceleration of change
Alignment Around a Common
“Platform for Innovation” is Critical

24. What Are the Steps in This Leadership Development Process?
Senior Team Alignment
Development of a Strategic Business Framework for Information Technology
Teach the Framework, get alignment and ownership
Run Critical, Performance Leadership Projects
Repeat Step 4, at least once or twice per year
Steps – Noel Tichy
“Credit Where It Is Due”
The Leadership Engine, 1997, Noel Tichy

25. What Are the Steps? Senior Team Alignment
Can start inside or outside IT
A shared set of strategies, or “ideas” in Tichy’s terms
A common set of operationalized values, or Leader Behaviors in Pfizer terms
Development of a Strategic Business Framework for Information Technology
Aligned with business strategy
Clear strategies (5-year review)
Clear metrics
Long term goals
Short term goals (1-year horizon)
STA. Where does it start? ITLT, CIT, CF
Really Very Simple

26. What Are the Steps? Engage and Teach the Next Group of Leaders
Refine the strategic business framework
Develop short term objectives and owners
Run Cross-Functional Performance Leadership Projects
Select some of the top talent you want to invest in and develop
Select 4 to 6 projects composed of some of your most important work – staff with “balanced teams”
Designed to
Get your most important work done
Develop some of your best or emerging talent
Begin to transform the organization
Teach and get them engaged. Long term strategy projects

27. What Does the Organization Get From the PLP Process?
Critical work gets done in a day window
Organizational silos for participants begin to break down
Senior team develops as teachers and sponsors
Actionable quantifiable results are produced
Organizational alignment occurs
Org. Benefits. Line of Sight Acceleration
Accelerated Results and
Organizational Change

28. What Do the Participants Get From the PLP Process?
Shared leadership training
Cross-functional, cross business unit knowledge
Relationships with other “movers and shakers”
Stakeholder management training
Individuals – feedback stakeholder management
Feedback, Feedback, Feedback

31. “Line of Sight” Is Critical for All Pfizer Colleagues
Strategic Imperatives
ITLT Strategy
Long Term Strategies and Measures
Short Term Objectives
Beyond #1
Value provided through products
Flow of medicines through R&D
People and talent development
Adapting to Pfizer’s new scale
Influencing external environments
Core Infrastructure
Transactional applications
Security
Enterprise Data Management
Governance
Talent management
Improve Service Quality
Enable Global Application Service Delivery
Improve Operational Efficiency
Improve Agility
Maintain a Secure Environment
Develop People
Line of sight slide