HUMAN RESOURCES: Changing Paradigms… Healthcare and Beyond Harshvendra Soin – Chief People Officer, Fortis Healthcare India

Changing business context

The World is Changing… Key Differentiator: TALENT Product Design Geneva, Switzerland Distribution Long Beach, CA Manufacturing Guangzhou, China Customer Support Bangalore, India Today’s Business Story: Seamless Processes, Instantaneous Flow of Information and 24x7 Connect

Business Reality Today In 2010, leading US automobile companies manufactured and sold more cars in China than in the United States. Today, businesses in many industries are scrambling to enter and expand operations across the globe. Emerging markets are the world’s growth engines. What does this mean for HR and talent??

Implications for Human Resources

The Paradigm Shift From supporting to partnering business operations From local talent wars to global competition for talent From reactive replacement hiring to proactive succession planning and pipeline building From decentralized processes to shared services and HR COEs

Indian healthcare industry

The Indian Healthcare Industry Exponential Growth: The Indian Healthcare sector is expected double its size to US$ 100 billion by 2015 from the present US$ 50 billion, according to recent findings by ratings agency Fitch. Industry growing at an impressive 15% and is expected to generate 9 million jobs by 2012-13 Opportunities Galore: According to a report by PWC, an estimated 189 million people in the country will be more than 60 years of age by 2025, needing higher healthcare spends. A combined study by an industry body and Ernst & Young suggests that India will need as many as 1.75 million additional beds by the end of 2025. Medical tourism is expected to generate revenue around US$ 3 billion by 2013, growing at a CAGR of around 26 per cent during 2011–2013.

The Indian Healthcare Industry Talent – The Game Changer: Biggest challenge today is finding and retaining ‘top talent’ (Nurses, Doctors, Para-medics) as new hospital chains enter India and we move to tier 2 and 3 towns. There is a shortage of clinical talent with only 290 private and government medical colleges in India (data as on 30.09.08) with only 33482 seats annually. India immediately needs 2 lakh doctors and 5 lakh nurses. An additional number of 6.5 lakh doctors are required to reach a ratio of 1.25 doctors per 1000 and an additional number of approximately 18.7 lakh nurses to reach a ratio of 2.6 nurses per 1000 population by 2020. (source: McKinsey report)

Fortis Healthcare India

Keeping Pace With Change – The Fortis India Story 8 new facilities added – Bangalore, Chennai, Hyderabad, Indore, Jabalpur, Pune, Hyderabad & Agra – increasing total Fortis bed capacity to 10825. Took a significant step in establishing Fortis as a Global Healthcare Brand by its attempt to acquire Parkway Holdings Ltd – Asia’s finest healthcare provider, but exited considering high valuations of the asset Started first hospital at Mohali Acquired Escorts chain of hospitals Acquired Malar Hospitals, Chennai 2001 2003 & 2004 2005 2007 2008 2009 2010 2011 Have signed 5 O&M contracts till date and progressing towards ongoing projects in tier II cities Enters Delhi Commences operations at Noida Listed on BSE and NSE with a market cap of USD543mn Starts hospital at Jaipur Rights Issue Acquired 10 hospitals from Wockhardt Revenues grow 4x with strong presence in NCR Company achieves profitability on consolidated basis Commenced two Greenfield facilities at Shalimar Bagh, Delhi and Anandpur, Kolkata; Launched an Oncology block at Mulund, Mumbai

Human Resource Challenges Managing Talent Ensuring an uninterrupted supply of talent to sustain the tremendous growth Having a powerful employee value proposition to attract quality talent for multiple associated brands and hospitals in Tier II & III cities Identifying valued talent and designing specialized strategies for the group Systematically growing talent from within and having a succession plan in place Having in place a robust performance management system based which is fair, objective and transparent Designing career paths and provide opportunities for learning and growth

Talent Management @Fortis Talent from External Sources Talent Acquisition The FORTIS Talent Pool Internal Talent Management Development & Succession Planning Talent Segmentation & Identification Potential Assessment Robust Performance Management System

Fortis Talent Management Framework Talent Acquisition Robust Performance Management System – PMS based on the four pillars of SMART goal setting, periodic reviews, constant feedback, and merit based increases. Potential Assessment – Job Analysis & Evaluation, Competency Framework, Assessment Centers form the basis for potential assessment at Fortis. Development & Succession Planning – Leadership development initiative (LDI), Physician Assistant Programs, Nursing Leadership Development Programs (NLDPs). Talent Segmentation – Segmenting talent into top talent, valued talent, talent under watch and incompatible talent. Devising strategies customized to the talent segment. Innovative Strategies – Facility Management Trainee Program – Hires talent from different industries who undergo exhaustive training for 16 weeks! Post retirement hiring of talent The FORTIS Talent Pool Development & Succession Planning Talent Segmentation & Identification Potential Assessment Performance Assessment

Human Resource Challenges Standardizing Processes Challenge of combining multiple reporting systems, processes and people policies and ensuring adherence Establishing and strengthening foundational HR systems and processes Establishing a common platform for HR reporting to facilitate business decision making Ensuring cultural sensitivities are kept in mind while proliferating processes policies across the country

Process Standardization Initiatives @Fortis Establishing foundations for strong HR systems and processes: Having analysis and reporting on a single platform by integrating existing formats and standardizing across the organization Unit Classifications & Grade Structuring Competency Framework Job Analysis & Evaluation

Human Resource Challenges Creating an Enabling Culture Creating a Strong Value System that is the foundation of all processes Establishing open channels for access and input Ensuring retention of new recruits by fostering an enabling atmosphere Create customized career paths incorporating diverse experiences and personalized strategies Ensuring not just diversity management, but establishing a culture of inclusion and collaboration Ensuring high engagement among all employee groups

Creating the Fortis Culture Webinar across hospitals in all countries Socializing and fertilizing the values Rewarding & recognizing values INTEGRITY INNOVATION PATIENT CENTRICITY OWNERSHIP TEAMWORK Global Values Launch Establishing strong channels of communication and grievance management

Human Resource Challenges Strengthening the Brand Image Establishing and maintaining the brand image of multiple entities and associated brands Challenge of seamless employee movement across entities Managing employee expectations during transitions Ensuring establishment of a strong employee value proposition to attract talent for associated brands and hospitals in Tier II and III cities

The Fortis Employer Brand You are going to have an employer brand, whether you know it or not, and you have two choices: you can intentionally create, shape, develop and track this brand or you can let it happen by accident. We are currently in the process of developing a compelling employee value proposition

Thank You!