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Serono is the largest biotechnology

Serono is the largest biotechnology company in Europe and third largestin the world.4 It is the world leader in reproductive health, with strong market positions in neurology, metabolism and growth, and treatment of multiple sclerosis and psoriasis. Headquartered in Geneva, Switzerland,Serono employs more than five thousand people in forty-five countries
around the world. In January 2007 it was acquired by Merck and reincorporated as Merck Serono, a division of Merck KGaA. Serono's office of strategy management played a significant role in Serono's successful strategy
execution, leading up to its acquisition by Merck. Key Roles of the Serono OSM. In 1991, long-time CEO Fabio Bertarelli
introduced a small office, reporting directly to him, named the Office of MTH ("Make Things Happen"). He was searching for a way to make Serono a more nimble, less bureaucratic organization. The MTH office's
primary responsibility was to track the execution of CEO-level decisions. In 1995, new CEO Ernesto Bertarelli (Fabio's son) expanded the scope of the office. He wanted the MTH to take on responsibility for enhancing the strategic planning and performance management processes. He created a ten-member executive management board (EMB) consisting of the
major corporate functions, such as research, product development, finance, and sales, and asked the MTH to support the EMB's centralized planning and cross-functional management processes. Serono, like most pharmaceutical companies, implements its strategy through large, complex projects that bring new products to market over a five- to fifteen-year period. The projects require the coordination of the various functions. In 2000, Serono decided to extend the focus of its management system beyond central management of the cross-functional projects and the annual operating budget. It transformed the MTH into a new Office of Strategy Management-led by Roland Baumann, senior VP of corporate administration-to handle the management of centralized projects, formal strategic planning, Balanced Scorecards, and strategy maps. The Serono OSM plays several roles (depicted in Figure 10-4) in managing
strategy execution. Strategist: The strategy delivers the vision and goals of the organization.
The typical horizon for a strategy is about five years. Although the strategy and plans are reviewed annually, the vision and goals are updated only when the current vision has been accomplished. The strategy is captured in business plans (see Figure 10-5), one each for the four core business domains-multiple sclerosis, women's reproductive health, pediatric growth hormone, and psoriasis-which are updated annually.
The business plan defines the approach to acquiring new medicines, molecules, and technologies, and includes plans for research (discovery), new product development, and business development. The group plan integrates the four franchise business plans. The OSM does not write these plans. Instead, it oversees the process by which the individual businesses prepare the plans and submit them on schedule.
Balanced Scorecard (BSe): All strategies are translated into Balanced Scorecards. The OSM educates all managers about the BSC and helps implement the BSC worldwide. It ensures that each part of the organization uses the BSC, that the numbers are accurate, that the BSC is studied and acted upon, and that the spirit underlying the Balanced Scorecard is brought into the entire organization. As noted by Baumann, "We produce the Balanced Scorecard like the chief financial officer
produces financial statements."
Alignment: The OSM works with various functional departments to align their processes with strategy. For example, the BSC provides the high-level measures and targets in each functional department that link directly to employees' personal objectives. Five thousand employees have a variable pay scheme that is linked to the performance of their units as well as to their personal objectives.
Strategy reviews: The EMB meets monthly to review progress in implementing the strategy. The OSM develops the schedules, the agenda, and the content of these meetings. All EMB and CEO decisions are followed up by the OSM to ensure that they are implemented. If needed, the OSM organizes follow-up meetings and support.
Special projects: Managing key projects is the cornerstone of strategy management at Serono. Because cross-functional coordination is constantly required, the OSM has the responsibility, as Baumann describes it, to be "the guardians of the cross-functional project management process." 6The OSM defines the rules for the strategy management process. It maintains the companywide database of all strategic initiatives, including checkpoints, milestones, objectives, and status. In a recent refinement of the OSM role, aimed at streamlining the process, the company grouped two to eight projects at a time into "clusters" called strategic initiatives; this practice allows the EMB to review fewer, larger initiatives rather than scores of seemingly unrelated individual projects.
Serono's OSM Structure. Serono's OSM consists of only four people. They are coordinators and facilitators who enhance the efforts of others. To achieve this leverage in a workforce of more than five thousand people, the OSM members require a blend of several competencies. As Baumann built the organization, he looked for several traits in the team:
• A big picture mentality: It prevents efforts from getting lost in thedetails.
• Networking and influencing skills: All work must be performed throughothers without resorting to hierarchical power.
• Project management skills: Most of the strategic work at Serono involves projects.
Cross-functional business skills: Siloed functions need help to worktogether as a team.
• Entrepreneurial attitudes: Executing strategy requires the breaking of new ground.
Lawrence Ganti, director of office of strategy management, and Baumann identify the key competency for OSM membership as the ability to execute. Ganti observed, "We are a very pragmatic bunch. We focus on
getting things done instead of simply just planning and analyzing."7
Some of Serono's execution premium results are summarized in the
insert below:
SERONO'S EXECUTION PREMIUM
• Since 1999, Serono has had annual double-digit growth in revenues and income. Annual revenues are three times that of its European
biotechnology peers.
• Rebif, Serono's flagship product for multiple sclerosis, reached
blockbuster status in 2004, with $1.1 billion in sales.
The company has increased its operational efficiency gross margin
to 86% since introducing the BSC.
· In the last three years, Serono has doubled the "number of molecules"
in pre-clinical development, a measure of its ability to bring
new products to market that serve unmet medical needs.
• The company has revamped its organizational culture to be more
performance driven.
Although it is difficult to attribute such performance to anyone factor,
such as the OSM, most executives agree that the EMB now devotes more of
its time to strategy and performance reviews, that Serono has better alignment
of priorities across the entire organization, and that strategy and direction
are more transparent at all levels of the organization. Employees
have been empowered to contribute to the strategy and are rewarded for
it. Cross-functional management processes break down silos and increase
efficiency. Baumann concluded,
Three or four years ago, our executives spent lots of time in the operational
details of the business. Today, our top management is absolutely
capable of distinguishing strategy from operational management. There
is no confusion anymore. We believe that our strategy is known by our
five thousand employees and that, day in and day out, they execute according
to the strategy.
The building of the OSM must be based on the desire for change.
The OSM is a change management project by itself Long-term sustainability
[of strategy execution] depends on support from the chief executive,
but it's also important to have properly implemented processes. 8
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Serono is the largest biotechnology company in Europe and third largestin the world.4 It is the world leader in reproductive health, with strong market positions in neurology, metabolism and growth, and treatment of multiple sclerosis and psoriasis. Headquartered in Geneva, Switzerland,Serono employs more than five thousand people in forty-five countriesaround the world. In January 2007 it was acquired by Merck and reincorporated as Merck Serono, a division of Merck KGaA. Serono's office of strategy management played a significant role in Serono's successful strategyexecution, leading up to its acquisition by Merck. Key Roles of the Serono OSM. In 1991, long-time CEO Fabio Bertarelliintroduced a small office, reporting directly to him, named the Office of MTH ("Make Things Happen"). He was searching for a way to make Serono a more nimble, less bureaucratic organization. The MTH office'sprimary responsibility was to track the execution of CEO-level decisions. In 1995, new CEO Ernesto Bertarelli (Fabio's son) expanded the scope of the office. He wanted the MTH to take on responsibility for enhancing the strategic planning and performance management processes. He created a ten-member executive management board (EMB) consisting of themajor corporate functions, such as research, product development, finance, and sales, and asked the MTH to support the EMB's centralized planning and cross-functional management processes. Serono, like most pharmaceutical companies, implements its strategy through large, complex projects that bring new products to market over a five- to fifteen-year period. The projects require the coordination of the various functions. In 2000, Serono decided to extend the focus of its management system beyond central management of the cross-functional projects and the annual operating budget. It transformed the MTH into a new Office of Strategy Management-led by Roland Baumann, senior VP of corporate administration-to handle the management of centralized projects, formal strategic planning, Balanced Scorecards, and strategy maps. The Serono OSM plays several roles (depicted in Figure 10-4) in managingstrategy execution. Strategist: The strategy delivers the vision and goals of the organization.The typical horizon for a strategy is about five years. Although the strategy and plans are reviewed annually, the vision and goals are updated only when the current vision has been accomplished. The strategy is captured in business plans (see Figure 10-5), one each for the four core business domains-multiple sclerosis, women's reproductive health, pediatric growth hormone, and psoriasis-which are updated annually.The business plan defines the approach to acquiring new medicines, molecules, and technologies, and includes plans for research (discovery), new product development, and business development. The group plan integrates the four franchise business plans. The OSM does not write these plans. Instead, it oversees the process by which the individual businesses prepare the plans and submit them on schedule.
Balanced Scorecard (BSe): All strategies are translated into Balanced Scorecards. The OSM educates all managers about the BSC and helps implement the BSC worldwide. It ensures that each part of the organization uses the BSC, that the numbers are accurate, that the BSC is studied and acted upon, and that the spirit underlying the Balanced Scorecard is brought into the entire organization. As noted by Baumann, "We produce the Balanced Scorecard like the chief financial officer
produces financial statements."
Alignment: The OSM works with various functional departments to align their processes with strategy. For example, the BSC provides the high-level measures and targets in each functional department that link directly to employees' personal objectives. Five thousand employees have a variable pay scheme that is linked to the performance of their units as well as to their personal objectives.
Strategy reviews: The EMB meets monthly to review progress in implementing the strategy. The OSM develops the schedules, the agenda, and the content of these meetings. All EMB and CEO decisions are followed up by the OSM to ensure that they are implemented. If needed, the OSM organizes follow-up meetings and support.
Special projects: Managing key projects is the cornerstone of strategy management at Serono. Because cross-functional coordination is constantly required, the OSM has the responsibility, as Baumann describes it, to be "the guardians of the cross-functional project management process." 6The OSM defines the rules for the strategy management process. It maintains the companywide database of all strategic initiatives, including checkpoints, milestones, objectives, and status. In a recent refinement of the OSM role, aimed at streamlining the process, the company grouped two to eight projects at a time into "clusters" called strategic initiatives; this practice allows the EMB to review fewer, larger initiatives rather than scores of seemingly unrelated individual projects.
Serono's OSM Structure. Serono's OSM consists of only four people. They are coordinators and facilitators who enhance the efforts of others. To achieve this leverage in a workforce of more than five thousand people, the OSM members require a blend of several competencies. As Baumann built the organization, he looked for several traits in the team:
• A big picture mentality: It prevents efforts from getting lost in thedetails.
• Networking and influencing skills: All work must be performed throughothers without resorting to hierarchical power.
• Project management skills: Most of the strategic work at Serono involves projects.
Cross-functional business skills: Siloed functions need help to worktogether as a team.
• Entrepreneurial attitudes: Executing strategy requires the breaking of new ground.
Lawrence Ganti, director of office of strategy management, and Baumann identify the key competency for OSM membership as the ability to execute. Ganti observed, "We are a very pragmatic bunch. We focus on
getting things done instead of simply just planning and analyzing."7
Some of Serono's execution premium results are summarized in the
insert below:
SERONO'S EXECUTION PREMIUM
• Since 1999, Serono has had annual double-digit growth in revenues and income. Annual revenues are three times that of its European
biotechnology peers.
• Rebif, Serono's flagship product for multiple sclerosis, reached
blockbuster status in 2004, with $1.1 billion in sales.
The company has increased its operational efficiency gross margin
to 86% since introducing the BSC.
· In the last three years, Serono has doubled the "number of molecules"
in pre-clinical development, a measure of its ability to bring
new products to market that serve unmet medical needs.
• The company has revamped its organizational culture to be more
performance driven.
Although it is difficult to attribute such performance to anyone factor,
such as the OSM, most executives agree that the EMB now devotes more of
its time to strategy and performance reviews, that Serono has better alignment
of priorities across the entire organization, and that strategy and direction
are more transparent at all levels of the organization. Employees
have been empowered to contribute to the strategy and are rewarded for
it. Cross-functional management processes break down silos and increase
efficiency. Baumann concluded,
Three or four years ago, our executives spent lots of time in the operational
details of the business. Today, our top management is absolutely
capable of distinguishing strategy from operational management. There
is no confusion anymore. We believe that our strategy is known by our
five thousand employees and that, day in and day out, they execute according
to the strategy.
The building of the OSM must be based on the desire for change.
The OSM is a change management project by itself Long-term sustainability
[of strategy execution] depends on support from the chief executive,
but it's also important to have properly implemented processes. 8
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Hasil (Bahasa Indonesia) 2:[Salinan]
Disalin!
Serono adalah perusahaan bioteknologi terbesar di Eropa dan ketiga largestin dunia.4 Ini adalah pemimpin dunia dalam kesehatan reproduksi, dengan posisi pasar yang kuat di bidang neurologi, metabolisme dan pertumbuhan, dan pengobatan multiple sclerosis dan psoriasis. Berkantor pusat di Jenewa, Swiss, Serono mempekerjakan lebih dari lima ribu orang di empat puluh lima negara
di seluruh dunia. Pada bulan Januari 2007 diakuisisi oleh Merck dan reincorporated sebagai Merck Serono, divisi Merck KGaA. Kantor Serono tentang manajemen strategi memainkan peran penting dalam strategi sukses Serono yang
eksekusi, yang mengarah ke akuisisi oleh Merck. Peran kunci dari OSM Serono. Pada tahun 1991, lama CEO Fabio Bertarelli
memperkenalkan sebuah kantor kecil, melaporkan langsung kepadanya, bernama Kantor MTH ("Membuat Hal Terjadi"). Dia sedang mencari cara untuk membuat Serono organisasi yang lebih gesit, kurang birokratis. MTH kantor itu
tanggung jawab utama adalah untuk melacak eksekusi keputusan CEO-tingkat. Pada tahun 1995, CEO baru Ernesto Bertarelli (anak Fabio) memperluas ruang lingkup kantor. Dia ingin MTH untuk mengambil tanggung jawab untuk meningkatkan perencanaan dan manajemen kinerja proses strategis. Dia menciptakan sepuluh anggota dewan manajemen eksekutif (EMB) yang terdiri dari
fungsi perusahaan besar, seperti penelitian, pengembangan produk, keuangan, dan penjualan, dan meminta MTH untuk mendukung perencanaan terpusat yang EMB dan proses manajemen lintas fungsional. Serono, seperti kebanyakan perusahaan farmasi, menerapkan strategi melalui besar, proyek-proyek kompleks yang membawa produk baru ke pasar selama periode lima sampai lima belas tahun. Proyek-proyek memerlukan koordinasi dari berbagai fungsi. Pada tahun 2000, Serono memutuskan untuk memperpanjang fokus sistem manajemen yang di luar manajemen pusat dari proyek lintas fungsional dan anggaran operasi tahunan. Itu berubah MTH ke Kantor baru Strategi Manajemen yang dipimpin oleh Roland Baumann, VP senior perusahaan-administrasi untuk menangani manajemen proyek terpusat, perencanaan strategis formal, Balanced Scorecard, dan peta strategi. The Serono OSM memainkan beberapa peran (digambarkan dalam Gambar 10-4) dalam mengelola
eksekusi strategi. Strategist:. Strategi ini memberikan visi dan tujuan organisasi
Cakrawala khas untuk sebuah strategi adalah sekitar lima tahun. Meskipun strategi dan rencana setiap tahun, visi dan tujuan diperbarui hanya ketika visi saat ini telah dicapai. Strategi ini ditangkap dalam rencana bisnis (lihat Gambar 10-5), masing-masing untuk bisnis empat inti domain-multiple sclerosis, kesehatan reproduksi perempuan, hormon pertumbuhan anak, dan-psoriasis yang diperbarui setiap tahun.
Rencana bisnis mendefinisikan pendekatan untuk memperoleh obat-obatan baru, molekul, dan teknologi, dan termasuk rencana untuk penelitian (penemuan), pengembangan produk baru, dan pengembangan bisnis. Rencana kelompok mengintegrasikan empat rencana bisnis waralaba. OSM tidak menulis rencana ini. Sebaliknya, mengawasi proses dimana usaha perorangan mempersiapkan rencana dan menyerahkan mereka pada jadwal.
Balanced Scorecard (BSE): Semua strategi dijabarkan ke dalam Balanced Scorecard. OSM yang mendidik semua manajer tentang BSC dan membantu menerapkan BSC di seluruh dunia. Hal ini memastikan bahwa setiap bagian dari organisasi menggunakan BSC, bahwa angka-angka yang akurat, bahwa BSC dipelajari dan ditindaklanjuti, dan bahwa semangat yang mendasari Balanced Scorecard dibawa ke seluruh organisasi. Sebagaimana dicatat oleh Baumann, "Kami memproduksi Balanced Scorecard seperti kepala keuangan
menghasilkan laporan keuangan."
Keselarasan: The OSM bekerja dengan berbagai departemen fungsional untuk menyelaraskan proses mereka dengan strategi. Sebagai contoh, BSC menyediakan langkah-tingkat tinggi dan target di masing-masing departemen fungsional yang menghubungkan langsung ke tujuan pribadi karyawan. Lima ribu karyawan memiliki skema gaji variabel yang terkait dengan kinerja unit mereka serta untuk tujuan pribadi mereka.
Strategi ulasan: EMB The memenuhi bulanan untuk meninjau kemajuan dalam mengimplementasikan strategi. OSM berkembang jadwal, agenda, dan isi dari pertemuan tersebut. Semua keputusan EMB dan CEO diikuti oleh OSM untuk memastikan bahwa mereka diimplementasikan. Jika diperlukan, OSM menyelenggarakan pertemuan dan dukungan tindak lanjut.
Proyek khusus: Mengelola proyek-proyek kunci adalah landasan dari manajemen strategi di Serono. Karena koordinasi lintas fungsional terus diperlukan, OSM memiliki tanggung jawab, sebagai Baumann menjelaskan hal itu, menjadi "penjaga proses manajemen proyek lintas fungsional." OSM 6 Ucapan mendefinisikan aturan untuk proses manajemen strategi. Ia memelihara database seluruh perusahaan dari semua inisiatif strategis, termasuk pos-pos pemeriksaan, tonggak, tujuan, dan status. Dalam penyempurnaan terbaru dari peran OSM, bertujuan merampingkan proses, perusahaan dikelompokkan 2-8 proyek pada waktu menjadi "cluster" yang disebut inisiatif strategis; praktek ini memungkinkan EMB untuk meninjau lebih sedikit, inisiatif lebih besar daripada nilai dari masing-masing proyek yang tampaknya tidak berhubungan.
Struktur OSM Serono ini. OSM Serono ini hanya terdiri dari empat orang. Mereka koordinator dan fasilitator yang meningkatkan usaha orang lain. Untuk mencapai pengaruh ini dalam tenaga kerja lebih dari lima ribu orang, anggota OSM memerlukan campuran beberapa kompetensi. Sebagai Baumann dibangun organisasi, ia mencari beberapa ciri dalam tim:
• Mentalitas gambaran besar: Ini mencegah upaya dari tersesat di thedetails.
• Jaringan dan mempengaruhi keterampilan. Semua pekerjaan harus dilakukan throughothers tanpa menggunakan listrik hirarkis
• Proyek keterampilan manajemen: Sebagian besar kerja strategis di Serono melibatkan proyek.
keterampilan bisnis Cross-fungsional: fungsi Siloed perlu bantuan untuk bekerjasma sebagai sebuah tim.
• sikap Wirausaha:. Pelaksana strategi memerlukan pemecahan tanah baru
Lawrence Ganti, direktur kantor strategi manajemen, dan Baumann mengidentifikasi kompetensi kunci untuk keanggotaan OSM sebagai kemampuan untuk mengeksekusi. Ganti diamati, "Kami adalah sekelompok sangat pragmatis Kami fokus pada.
Menyelesaikan sesuatu, bukan hanya hanya berencana dan menganalisis." 7
Beberapa hasil eksekusi premium Serono yang dirangkum dalam
insert berikut:
Serono'S PELAKSANAAN PREMIUM
• Sejak tahun 1999, Serono telah memiliki pertumbuhan dua digit tahunan pendapatan dan laba. Pendapatan tahunan adalah tiga kali dari Eropa
rekan-rekan bioteknologi.
• produk unggulan Rebif, Serono untuk multiple sclerosis, mencapai
statusnya blockbuster pada tahun 2004, dengan $ 1,1 miliar pada penjualan.
Perusahaan telah meningkatkan efisiensi operasional marjin kotor
86% sejak memperkenalkan BSC .
· Dalam tiga tahun terakhir, Serono telah dua kali lipat "jumlah molekul"
dalam pengembangan pra-klinis, ukuran kemampuannya untuk membawa
produk baru ke pasar yang melayani kebutuhan medis yang belum terpenuhi.
• Perusahaan telah dirubah budaya organisasi untuk menjadi lebih
kinerja didorong.
Meskipun sulit untuk atribut kinerja seperti faktor siapa pun,
seperti OSM, sebagian besar eksekutif setuju bahwa EMB sekarang mencurahkan lebih banyak
waktu untuk strategi dan kinerja ulasan, yang Serono memiliki keselarasan yang lebih baik
dari prioritas di seluruh organisasi , dan bahwa strategi dan arah
yang lebih transparan di semua tingkat organisasi. Karyawan
telah diberdayakan untuk berkontribusi strategi dan dihargai untuk
itu. Proses manajemen lintas fungsional memecah silo dan meningkatkan
efisiensi. Baumann menyimpulkan,
Tiga atau empat tahun lalu, eksekutif kami menghabiskan banyak waktu dalam operasional
rincian bisnis. Hari ini, manajemen puncak kami benar-benar
mampu membedakan strategi dari manajemen operasional. Ada
ada kebingungan lagi. Kami percaya bahwa strategi kami dikenal dengan kami
lima ribu karyawan dan yang, hari demi hari, mereka mengeksekusi sesuai
dengan strategi.
Bangunan dari OSM harus didasarkan pada keinginan untuk perubahan.
OSM adalah proyek manajemen perubahan dengan sendiri jangka panjang keberlanjutan
[eksekusi strategi] tergantung pada dukungan dari kepala eksekutif,
tetapi juga penting untuk memiliki proses dilaksanakan dengan baik. 8
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