Novartis: The Challenge of Success (A)

Sandra J. Sucher; Stacy  McManus

Case | HBS Case Collection | April 2003 (Revised October 2004)

Novartis: The Challenge of Success (A)

Abstract

Preliminary results from Phase 1 clinical trials of a newly developed compound, STI571, showed that 31 out of 31 patients with chronic myelogenous leukemia (CML) had their blood counts return to normal. In the world of oncology, this was unheard of. This was the unexpected data processed by Alex Matter, head of oncology research at Novartis, AG. CML was a rare form of cancer that affected a very small number of individuals in the world. The development of STI571 was a pioneering concept in genetically targeted drug development. This case enables students to decide whether and how they would advance the development, production, and distribution of the drug given these extraordinarily successful Phase 1 results. Provides details on factors that complicate this decision, including production complexity, precedents from other high-profile drug treatments, and market pressures.

Keywords: Decision Making; Health Testing and Trials; Innovation and Invention; Markets; Distribution; Product Development; Production; Problems and Challenges; Research; Research and Development; Complexity; Biotechnology Industry; Pharmaceutical Industry;

Format: Print

23 pages

Educators Purchase

Citation:

Sucher, Sandra J., and Stacy McManus. "Novartis: The Challenge of Success (A)." Harvard Business School Case 603-043, April 2003. (Revised October 2004.)

Article | Harvard Business Review | May–June 2018

Layoffs That Don't Break Your Company: Better Approaches to Workforce Transition

Sandra J. Sucher and Shalene Gupta

Today layoffs have become companies’ default response to the challenges created by advances in technology and global competition. Yet research shows that job cuts rarely help senior leaders achieve their goals. Too often, they’re done for short-term gain, but the cost savings are overshadowed by bad publicity, loss of knowledge, weakened engagement, higher voluntary turnover, and lower innovation, which hurt profits in the long run. This article looks at better ways to handle changing workforce needs that make sparing use of staff reductions and ensure that if they do happen, the process feels fair and the affected parties have a soft landing. Most successful approaches begin with a philosophy that spells out a firm’s commitments and priorities, establish methods for exploring layoff alternatives (such as furloughs, retraining, and reassignments), and determine options for three scenarios: a healthy present, short-term volatility, and an uncertain future. As firms like AT&T, Michelin, Honeywell, and Nokia have learned, thoughtful planning helps organizations address workforce transitions and cope with a shifting economic landscape far better than layoffs do.

Keywords: Job Cuts and Outsourcing; Organizational Change and Adaptation; Employees; Transition; Strategic Planning;

Citation:

Sucher, Sandra J., and Shalene Gupta. "Layoffs That Don't Break Your Company: Better Approaches to Workforce Transition." Harvard Business Review 96, no. 3 (May–June 2018): 122–129. View Details

Cite View Details Find at Harvard Register to Read