1. Leadership: A Lesson from Industry
Presented By: Gaetano Crupi, President and General Manager, Eli Lilly Canada Inc.
Date: October 30, 2002

2. Eli Lilly Canada
A leading innovation-driven pharmaceutical corporation
Awarded 5th Best Company to Work for in Canada (ROB Magazine 2002)
Awarded 1st Pharmaceutical Company for third year in row (ROB Magazine 2002)
NOTES:
Eli Lilly Canada was established in 1938 and was the second international affiliate of Eli Lilly and Company.
Proud to uphold traditional core values of respect for people, integrity and excellence, Eli Lilly Canada was recently named the “5th Best Company to Work for in Canada” by the Globe & Mail’s Report on Business magazine (January 2002). Lilly has held a top 10 ranking on the list since its inception by the Report on Business magazine in In fact, Eli Lilly Canada is one of only three companies that has been on the list all three years.
More than 700 employees at Eli Lilly Canada

3. Lilly’s Core Values Respect for People Thirst for Excellence Integrity
NOTES:
As we implement our strategies and pursue our objectives, long-established core values guide us in all that we do:
Respect for people – which includes our concern for the interests of all the people worldwide who touch – or are touched – by our company: customers, employees, shareholders, partners, suppliers and communities.
Integrity – that embraces the very highest standards of honesty, ethical behaviour, and exemplary moral character
Excellence – that is reflected in our continuous search for new ways to improve the performance of our business to become the best at what we do.

4. Lilly’s Mission and Vision
To provide customers “Answers That Matter” through innovative medicines, information, and exceptional customer service to enable people to live longer, healthier and more active lives
Vision
“Answers That Matter” is the foundation of our promise to our customers. We will deliver on our promise by listening to and understanding our customers’ needs and providing unmatched value to them
NOTES:
Most of you I’m sure have seen mission and vision statements from a number of top organizations around the world. But what is the true meaning or purpose of mission and vision statements.
The “mission” is the purpose of the organization, why are we here and why do we do the things we do.
The “vision” is what the organization will look like in achieving the mission.
Both of these statements identify an underlying purpose, captures the imagination and moves an organization towards greatness.
Regardless of industry, organization, or even if you’re talking about your family sitting around the dinner table, it is human nature to want to know where you’re going, what is the purpose of your goals and what is the shared mindset required and needed to help you get there. You increase your chances of success when all employees understand the direction and objectives of the company. It may seem like a simple statement, yet it should not be something that is taken for granted.

5. Lilly’s Strategic Intent
Outgrow all competitors through a
constant stream of innovation
NOTES:
Strategic intent – is all about making choices. It forces choices about what we want our business to look like.
For Eli Lilly, we want to exceed our competition, not with “me-too” products but with innovation, creativity, meeting unmet needs.
Strategic intent, like a mission/vision statement, is not meant to be changed yearly or monthly, but should be your beam of light that’s guiding you over time. Your objectives, you actions might change based on the current economic, and social conditions but not your intent.

6. The Leadership Journey -Getting Started
Leadership is key to balance between long term vision and reacting to short-term opportunities
Effective decision-making is vital
Communicate clearly and concisely
Seize the moment
Invest in people
Assess how latest technologies suit your needs and adapt business processes accordingly
Don’t pay lip-service – be prepared to act/change
Plan ahead - but remember the 80/20 rule
Put the customer first
Don’t be afraid of a little conflict
NOTES: Gaetano, I changed the title here and added #10
Any major shift in corporate philosophy or direction is going to require a certain amount of change to current practices. We often refer to this activity as “change management”. While we cannot discount that change is taking place, what we are really doing is minimizing the impact of the transition.
These 10 steps are the insurance markers and key action items that any leader needs to take.
As with strategic intent, or mission statement, you need to have a long term view of where you want to go. But if you focus solely on the long term, and don’t take advantage of short term opportunities, you could be missing the early wins, low hanging fruit etc. that ignites motivation in your team and reaps some financial rewards allowing you to pursue your longer term vision.
Decision-making – how does work get done in your environment? How are decisions made – MOVE TO NEXT SLIDE ON GOVERNANCE and then return back to this slide.
Communicate – frequently, use multiple touch points and opportunities – remember people need to hear something 7 times for something to sink in.
Seize the moment – don’t be afraid to take chances – intelligent risk taking is essential. You may not have 100% of the information. With patient care, I’m sure you hesitate to take unnecessary risk, but patient care and business is not dissimilar – you have to weigh benefit vs. risk.
People are truly the assets of any business. In a competitive society where budgets are the same and you’re offering the same goods, what is going to give you the competitive advantage? People and processes that are unique to you.
Technological advances are happening quickly – what is available that can help you to do your work faster and better.
Be prepared to change – In the early 90’s there was a slogon – if it’s not broke, break it. That was the reengineering mantra which people quickly found, did not work. However, if we don’t look outside of ourselves to the world and environment around us, we stay in a status quo equilibrium. Then we might be forced to change and it is always better to be the leader than the follower.
Plan – be proactive – similar to being prepared to change
Customers- there are all type of customers – from employees to patients. Each with their own individual needs – be prepared to understand what those needs are and act accordingly.
Don’t be afraid of a little conflict. There is no such thing as perfect harmony. Healthy conflict can light the fire, passion and energy to get things done. As Colin Powell says, good leadership involves responsibility to the welfare of the group, which means some people will get angry and your actions and decisions. Trying to get everyone to like you is a sign of mediocrity: you’ll avoid tough decisions, you’ll avoid confronting people who need to be confronted. You’ll simply ensure that the only people you’ll wind up angering are the most creative and productive people on your team.

7. What is Governance? Why is it Important?
The term “Governance” describes the structures, or teams, that a company puts in place which specifies not only the responsibilities of various participants in the corporation, but also the rules and procedures for how decisions are made.
These structures provide the framework through which company objectives are set, the means for attaining these objectives and for monitoring performance.
Since governance involves the relationship between the company and its shareholders, the infrastructure should ensure that right people are appropriately in place to make the decisions that will yield the best business results.
NOTES:
Slide is self-explanatory but give examples of BOT, PMT, DRUM

8. Engagement – Eli Lilly Canada
Culture/Values Top 50 = 89% You = 91% (+2%) BQ = 74%
Quality of Life Top 50 = 81% You = 80% (-1%) BQ = 63%
Relationships Top 50 = 81% You = 82% (+1%) BQ = 63%
Total Compensation Top 50 = 73% You = 78% (+5%) BQ = 48%
Opportunities Top 50 = 73% You = 75% (+2%) BQ = 49%
Engagement Top 50 = 79% You = 82%
Leadership Top 50 = 78% You = 84% (+6%) BQ = 50%
Work Activities Top 50 = 80% You = 82% (+2%) BQ = 60%
NOTES:
I mentioned at the beginning that Lilly has been ranked the #1 pharma company 3 years in a row. Great companies all share similar traits: senior leadership commitment, promises made and kept to employees, aligned and supportive people processes, a connection to the company and engaged employees.
What is engagement? It is the state of emotional and intellectual commitment to an organization or group. It’s what employees say about a company, why they stay and how they strive while they are there.
These 7 buckets are the drivers of engagement.

9. Engagement – Eli Lilly Canada
Culture/Values You 2000 = 84% You 2001 = 90% You 2002 = 91% (+1%)
Quality of Life You 2000 = 61% You 2001 = 71% You 2002 = 80% (+9%)
Leadership You 2000 = 70% You 2001 = 83% You 2002 = 84% (+1%)
Total Compensation You 2000 = 70% You 2001 = 81% You 2002 = 78% (-3%)
Opportunities You 2000 = 61% You 2001 = 74% You 2002 = 75% (+1%)
Engagement You 2000 = 74% You 2001 = 83%
You 2002 = 82%
Work Activities You 2000 = 71% You 2001 = 80% You 2002 = 82% (+2%)
Relationships You 2000 = 74% You 2001 = 82% You 2002 = 82% (0%)

10. Leadership vs. Management
“Management is about coping with complexity. Leadership by contrast, is about coping with change.”
John P. Kotter, Harvard Business School
Leadership complements management; it doesn’t replace it.
NOTES:
Leadership and management are not mutually exclusive from one another, but they do mean different things.
Managing on a day to day basis relies more on the operational tactics used to keep the business alive moment to moment.
Leadership on the other hand, is more strategic, it has a long term view and focuses on not just coping with change but initiating change as well.
I’m going to go through some examples and highlight some differences in the next few slides.

11. Setting a Direction vs. Planning and Budgeting
Setting direction is never the same as planning or even long-term planning
Planning is a management process, deductive in nature and designed to produce orderly results, not change
Setting a direction is more inductive
NOTES: Gaetano, give an example of when you had to change direction and change forecast, maybe with Prozac off patent?
Planning and budgeting: establishing details steps and timetables for achieving needed results, allocating resources necessary to make it happen
Establishing direction: developing a vision for the future, and strategies for producing changes needed to achieve the vision
That vision may be in the distant future.

12. Aligning People vs. Organizing and Staffing
Managers “organize” to create human systems that can implement plans as precisely and efficiently as possible
Aligning is a communication challenge
Credibility- getting people to believe the message
NOTES:
Organizing and staffing: establishing structure is important to create the foundation, how are we going to staff our teams with what skill sets, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, creating methods or systems to monitor implementation
Aligning people: has all a lot to do with engagement and inspiring people to a common goal - communicating the direction by words and deeds, influence the creation of teams and coalitions that understand the vision and strategies and accept this is the way forward
Great ideas and visions need to be implemented rapidly and efficiently. Good leaders delegate and empower but pay attention to details as well,. They encourage people to challenge the status quo.

13. Motivating People vs. Controlling and Problem Solving
Systems and structures are to help normal people who behave in normal ways to complete routine jobs successfully, day after day
Motivation and inspiration energize people, not by pushing them in the right direction as control mechanisms do, but, by satisfying basic human needs for achievement, a sense of belonging, recognition, self-esteem, a feeling of control over one’s life, and the ability to live up to one’s ideals
Articulate the organization’s vision in a manner that stresses the values of the audience they are addressing
Leaders also regularly involve people in deciding how to achieve the organization’s vision
This gives people a sense of control
NOTES:
Controlling and problem-solving: monitoring results vs plan, identifying deviations, planning and organizing to solve problems. Produces a degree of predictability and order, has the potential of consistently producing key results.
Motivating and inspiring: energizing people to overcome major political, bureaucratic and resource barriers to change by satisfying very basic unfulfilled, human needs. Produces change, new products that customers want, new approaches that help make a company more competitive.
Create a corporate culture where people feel free to ask for help – where strong problem analysis replaces blame. Ask for forgiveness not permission.

14. Creating a Culture of Leadership
Recruiting people with leadership potential is only the first step
Managing their career patterns
Leaders almost always have had opportunities during their twenties and thirties to actually try to lead, to take a risk, and to learn from both triumphs and failures
NOTES:
Leadership is not a position in a company but an activity. Many young people that we interview have clearly demonstrated leadership through their work, sports and volunteer activities. Leaders need to be agile.
You can train someone in the fundamentals of business but you cannot train for integrity, judgement, energy, balance and the drive to get things done.
We continue their leadership development through on the job experiences, training and mentoring programs.
Don’t forget, we all mistakes along the way in course of our leadership journey. Mistakes need to be seen as opportunities to learn – in a hospital setting, it’s harder to accept mistakes because consequences of not making the right decision can be catastrophic. This does not mean that as a team, or as an individual you can’t step out of your comfort zone.
Challenge the pros. Sometimes even the pros can become complacent.
Good leadership encourages everyone’s evolution.

15. Leaders Learn From Leaders
Big Ideas: The Power of Vision
See It!
Feel It!
Own It!
Communicate It!
Who
When
Simply
Whom
Results!
Creates Energy
Increase Ownership
Provides Focus
Reduces Trauma
NOTES: Gaetano, not sure what you wanted to do with this page - - is it meant as a summary?
Committed senior leaders:
Believe people matter, people are the competitive advantage
Behave in a manner consistent with that belief, leaders are part of the promise
Focus on connecting with employees about the business, people must understand the business to impact it
See culture as a competitive advantage, create a sense of belonging and engage employees.
Effective leaders create a climate where people’s worth is determined by their willingness to learn new skills, grab new responsibilities and reinvent their jobs.

16. The Leadership Journey – Keeping it Real
Think strategically and invest in the future - but keep the numbers up today
Be entrepreneurial and take risks - but don’t cost the business anything by failing
Continue to do everything you are currently doing even better - and spend more time communication with employees, serving on teams, and launching new projects
Become passionately dedicated to “visions” and fanatically committed to carrying them out - but be flexible, responsive, and able to change direction quickly
Succeed, succeed, succeed - and raise terrific children
NOTES: Gaetano, I changed the title here from “managing dilemmas” to this. It tied in better with the page 6
Refer to The Leadership Journey – Getting Started page 6