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Case Study
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Structuring an Organizational Development Function: Schering-Plough

Case Study Instructions:

Case Study – Structuring an Organizational Development Function
Background
You have been appointed VP, OD (focus on training and development) for a major pharmaceutical organization – Schering-Plough. This is a relatively new function; only limited training and development work has been done in the past. You are charged with defining the structure of the group. You have approval to hire 3 Directors reporting to you and 4 training and development professionals as part of this newly created function.
The Business and Financial Summary
Historically, your organization has done extremely well. Within the past 16 years, prior to the current year, the firm grew from 2.3 billion US dollars to 10 billion in worldwide sales. The 10 billion has been equally split between the US and International sales. This growth has been sparked by a blockbuster allergy product as well as several successful franchises in oncology, cardiovascular, and respiratory. Earnings per share growth (EPS) has been constant each year ranging 15-18%. Based on the stock price averaging $55 per share, market value of the firm has been about 69 billion US dollars.
Recent Developments
Over the past year, a significantly different picture has emerged. The stock has plummeted to $20.00 per share in reaction to a decrease of 2 billion dollars in sales. Note: the market value of the firm is about 30 billion dollars. A new CEO has been appointed. A consent decree from the FDA and investigations by the SEC coupled with shareholder lawsuits have cost your firm about 1 billion dollars from reserves. There has been a loss in confidence by consumers. Turnover is increasing in the scientific and technical groups, and some key general managers and executives have resigned.
You have, along with the executive team, defined a set of core competencies aligned with the vision of the new organization. These competencies include:
Shared Accountability and Transparency
Cross-Functional Teamwork and Collaboration
Listening and Learning
Benchmark and Continuous Improvement
Coaching and Developing Others
Business Integrity
Your Challenge
Define how you would structure the new global Organization Development function. The intent is to re-focus globally the business and gain back customer confidence as well as build internal professional and leadership capabilities.
Would you use a Faculty, Customer, Matrix, Corporate University, Virtual or some combination?
What would your structure look like?
What is the basis/rationale for your recommendation?

Case Study Sample Content Preview:

Schering-Plough Case Study
Student's Name
Institutional Affiliation
Instructor
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Organization Development (OD) represents a sector of research, theory, and practice aimed at expanding the effectiveness and knowledge of persons to attain successful corporate change and performance. The approach involves strategic planning, team building, leadership development, process improvement, and change management. Furthermore, this model relies heavily on technology to meet multiple roles, such as employee communication. This discussion highlights my recommendation for corporate development based on a case study about the Schering-Plough company.
I would structure the new global OD function using the following technique. First, I would hire three Directors to report to me, one for each of these areas: Training and Development, Communications, and Culture and Engagement. The Training and Development Director would be responsible for developing, implementing, and evaluating training programs and initiatives aligned with the organization's core competencies (Sung & Choi, 2018). This individual would partner with HR, other departments, and external vendors to provide training and development resources to the organization. The Communications Director would be responsible for developing and implementing effective global communications strategies to help the company regain customer confidence.
The official would create and execute a plan to effectively communicate the organization's messages and initiatives to key stakeholders on time. The Culture and Engagement Director would be responsible for developing and implementing strategies to improve employee engagement and company culture. They would work with HR, other departments, and external vendors to provide resources to create a positive and productive work environment that aligns with the organization's core competencies. In addition to the above directors, I would hire four training and development professionals. These individuals would work with the Directors to ensure the...
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