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ben rossong

on 3 April 2013

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Leadership GlaxoSmithKline Introduction To Corporate Leadership Leadership Style of GSK References There are 6 perspectives to consider in the study of leadership

1. Trait Perspective (Based on leaders personal traits)
2. Behaviour Perspective (How leaders behave towards others)
3. Contingency Perspective (How leaders behave in certain situations)
4. Power-Influence Perspective (The most powerful person is the leader)
5. Gender-Influence Perspective (Do men and women lead in the same ways?)
6. Transformational/Charismatic Perspective (Changing an organization through charisma and vision) The Leaders Of GlaxoSmithKline Non-Executive Chairman: Sir Christopher Gent
CEO/Executive Director: Sir Andrew Witty Non Executive Director: Roy Anderson | Non Executive Director: Stephanie Burns
Non Executive Director: Stacey Cartwright | Non Executive Director: Crispin Davis Chief Financial Officer: Simon Dingemans GlaxoSmithKline Canadian Structure -A leader communicates to the people around them with motivation towards a common vision and strategy.

Being an effective corporate leader can be achieved by having a high concern for both People and Production.

-This is referred to as the "Team Leader Approach" GlaxoSmithKline Products GSK produces a large number of prescription and over-the-counter medicines, the most popular are listed below: The GSK Leadership Change Where Leadership Went Wrong The Corporate executives at the time of the 3 billion dollar settlement were not held personally responsible for these crimes even though it was through their "leadership" that sales representatives made these bribes and off-label marketing claims. GSK Leadership Failure Between the years of 1990 to 2003 the leaders of GSK decided to overlook various details in their marketing and selling process. This led to over 3 billion dollars in fines from criminal fraud cases.

The charges stem from allegations that GSK withheld important safety data from regulators and illegally bribed doctors with benefits to prescribe their products to unfit patients.

Current CEO Andrew Witty acknowledged the wrongdoings of the company's past leaders. While Witty was not a part of GSK at the time of these crimes, he has taken responsibility as the new leader and completely changed the culture of the organization in an attempt to fix the past decisions of former leaders. Introduction To GlaxoSmithKline GlaxoSmithKline is a British Multinational Pharmaceutical and Consumer healthcare company. The headquarters are located in London, England and they are listed as the 4th largest pharmaceutical company in the world.

The merger of 2 of the United Kingdom's oldest medical companies Glaxo Wellcome plc and SmithKline Beecham plc in 2000 led to the formation of GlaxoSmithKline as we know it today. They now own 6.9% market share of the pharmaceutical industry.

GlaxoSmithKline employs over 100,000 people worldwide, with this many employees it is imperative that GSK has a strong leadership group directing all activities of the company. Future Leadership Goals GlaxoSmithKline Inc. states that their "goal is to become the indisputable leader in our industry. Leadership involves responsibility to our customers, patients, stakeholders and employees" GSK is following the "Team Leader Approach" as they have a high concern for the responsibility to people, along with a high concern for production. GSK has set out 6 leadership norms that their organization follows on a daily basis. These norms set the culture of the company and all employees are expected to follow them. 1. Flexible Thinking 2. Developing People 3. Continuous Improvement 4. Enable and Drive Change 5. Customer Driven 6. Building Relationships GSK Cultural Leadership Norms - Being open to different views and ideas -Continuously developing self and supporting others -Continuously identifying ways to simplify and improve things -Being proactive, taking accountability and empowering others to act. -Putting the customer/patient at the heart of every decision -Building trustful relationships based on integrity Advair Abreva
Avandia Flovent
Dexedrine Levitra
Lucozade Nicoderm Nicorette Pandemrix
Panadol Paxil
Tums Twinrix
Zantac Valtrex A failure in past leadership not only led to billions of dollars lost, but also tainted the reputation of GSK with many patients worldwide.

This was the largest case of healthcare fraud in
history and shows how devastating a wrong
move by leadership can be on an organization. This case is a prime example of the Power-Influence theory of leadership where executive leaders used their "legitimate" power in the organization to do the following: In hopes of increasing revenues and sales the powerful leaders of GSK directed sales representatives to offer large incentives and bribes to doctors who would wrongfully prescribe the antidepressant Paxil to children.

GSK leaders helped prepare an article for a medical journal which described Paxil's efficiency in treating depression in children. This was not approved by the FDA and was actually proven to increase chances of suicide in children by 3 times. After the details of these crimes came to the attention of the current leaders of GSK they moved towards a Transformational Perspective on leadership. _____________________________________________________________ GSK changed their entire culture as an organization and as part of the settlement entered into a 5 year "Corporate Integrity Agreement" GlaxoSmithKline is now in a Corporate Integrity Agreement until 2017. This agreement holds leaders of the company responsible for any wrongdoings and holds their practices to a set of standards outlined for the healthcare industry.

GSK was also the first company to agree to an Executive Financial Recoupment Program which permits the company to recover bonuses and salary from executives who don't follow the guidelines.

This program helps make the leaders directly responsible for their actions and they can no longer hide behind the corporate veil. In efforts to repair their reputation as a company GSK launched a strong anti-doping campaign for the London 2012 Olympics in which they provided all of the resources for drug testing. This was a responsible move by the leaders of GSK and had a great impact on the company. London 2012 Olympic Campaign ___________________________________________ GSK is moving towards a shift in their power sources in leadership. During the time of fraud the leaders used "Legitimate" power to coerce employees to do wrong.

They now use "Expert" power making sure all decisions are well thought out and follow the guidelines set in the Corporate Integrity Agreement. CEO Andrew Witty is following guidelines from the transformational perspective when changing the organization, these are: Creating a goal/vision for the Organization - "Our goal is to become the indisputable leader in our industry"
Communicating the vision for the team - The 6 "Unwritten Rules of the Road"
Inspiring employees - GSK offers a 3 year program to their employees which helps them build a strong base and move into a senior leadership role.
Rewarding Employees - If employees take part in this 3 year program they are rewarded with a promotion, sometimes into a high leadership role. _____________________________________________________________ Conclusion GlaxoSmithKline is one of the most prominent pharmaceutical companies in the world. Their reputation took a bad turn when they were subject to the largest fraud settlement ever in the healthcare industry.

Recently GSK leaders have taken important steps in restoring patients, consumers and employees faith in their commitment to excellence. The complete cultural overhaul along with their commitment to the London 2012 olympics to drug test athletes shows they are dedicated to Corporate social responsibility. By implementing a team leader approach and using expert power the leaders of the organization have completely transformed GSK. Employees are more involved, patients are more trusting and leaders are held responsible for unethical decisions. ______________________________________ __________________________________________________ __________________________________________________ ___________________________________________________________________ Mills, A., Helms Mills, J., Forshaw, C., & Bratton, J. (2007). Organization behaviour in a global context.
Ontario: Broadview Press

Whalen, J., Barrett, D., & Loftus, P. (2012, July 3). Glaxo in $3 billion settlement. Wall Street Journal.
Retrieved from http://online.wsj.com/article/SB10001424052702304299704577502642401041730.html

Procurement development program. (2011, September 16). Retrieved from http://us.gsk.com/html/career/career-prospects.html

Leadership essentials. (2011). Retrieved from http://www.gsk-ch.in/LeadershipEssentials.aspx

GSK homepage. (2013). Retrieved from http://www.gsk.ca/english/index.html

Wikipedia. (2011, November 10). Glaxosmithkline. Retrieved from http://en.wikipedia.org/wiki/GlaxoSmithKline

(2011). Retrieved from http://www.cchrint.org/wp-content/uploads/2011/05/fda_gsk.jpg

GSKVision. (Designer) (2012). Gsk: Uk tv advertisement for london 2012 [Web]. Retrieved from http://www.youtube. com/watch?v=Hy-ch43OCDQ

Glaxosmithkline pleads guilty in $3b us drug fraud case. (2012, July 2). Retrieved from http://www.cbc.ca/news/health/story/2012/07/02/health-glaxosmithkline-fraud-settlement.html
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