Valencia, March 25th 2010

“Women, Business and Leadership”

Uxio MalvidoEMEAC Diversity and Inclusion Leader MSD

TECHNICAL CONFERENCE AND INFORMAL MEETING OF UE MINISTERS FOR GENDER EQUALITY

Equality between Women and Men as a Basis for Growth and Employment

MSD / Merck

CR RecognitionGlobal Operations

Headquarters in New Jersey,

US

Latin America

US

EMEAC EMEAC

34%

AP14%

LA10%

US41%

+ 100 K employees in aprox. 100 countries

What’s the most appropiate frame of reference to deal with gender diversity and equality in a global company?

* Adaptation from “Getting There from Here”. The Academy of Management Annals Vol.2 2008

Gender / Diversity programs

Business outcomes(ROI, sales increase,

cost reduction…)

Cor

pora

te

Perceptions

• Leaders support• Company culture• Work-Life balance

realities

Attitudes:• Engagement

• Intention to stay

Behaviors :• Effort

• Absentism

Career Progression

Conflict / BalanceWork-familyIn

divi

dual

Roles intersection on Gender EqualityG

over

nmen

t

Equality legislation

Social outcomes (access to employment,

gender equality, birth rate…)

Evidence based approach

Catalyst: The Bottom Line

McKinsey: Women Matter

EVA Analysis: Female Leadership and Firm Profitability

But… how much evidence is needed?

Women Make and influence

Healthcare Decisions

Women Working in the

Healthcare Industry

Heads of HouseholdWomen make or influence the vast majority of buying and healthcare decisions for their families and have significant influence on social networks in patient decisions

Regulators and Gov’t Healthcare Officials

Healthcare Activists

Physicians, Clinical Investigators, NursesWomen represent nearly one-third of board certified physicians (and women are 45% of graduating physicians in the US and exceed 50% in many European countries), while about 16% of Merck’s principal investigators are women.

Half of the World’s Patients are

Female

Patients

Increasing number of treatments and interventions target diseases with high prevalence among women

Business Case

Customizing the business case always

pays off

% Exec.

% Managers

% Workforce

% Managers

% Executives

Low High

Low

High

Retention Goals

Goals at Executive

level

Goals at Executive and

Mger levels

Goals at Manager

level

Setting Objetives

Setting objectives and monitoring results is part of any real strategic initiative in the business environment

40%Executive

Country A(45%; 45%)

Country B(42%; 34%)

Country C(33%; 35%)

Retention

Progression(Manager and

Executive Levels)

Progression(Executive level)

30%

50%50%

40%Managers

36% (Corp goal)

Within the Region:Setting different local measures

Company Marketplace

Promotion (in)

Promotion (out)

Recruitment

Turnover

+

_

Within Countries / BUs:Understanding drivers of representation

Outcomes

Understanding Dynamics

Child Care Maternity impact on selection and initial salary offer (“The Motherhood penalty”, American Journal of Sociology 2007)

AbilityLeadership definition and success criteria(“Leader or Louder”, Journal of Personality and Social Psychology 2009)

Men as Allies

Drivers and Barriers of Men engagement in Gender initiatives (“Engaging Men in Gender Initiatives”, Catalyst 2009)

Addressing organizational culture

ENGAGEMENT

Source: Talent Management in European Cultures. Catalyst

Positive view of job

Positive view of company

Commitment to doing a good job

Turnover Intentions

BARRIERS

• Lack of sponsor/ mentor• Limited politic knowledge• Few role models• Limited career opportunities

LEADERSHIP CHARACTERISTICS

• Age • Region• Gender

TALENT MANAGEMENT PRACTICES

• Commitment to Talent Diversity•Management Accountability•Fair decision making processes•Constructive feedback• Line of Sight•Work Flexibility•Supportive supervisory relationships

Considering Culture in Europe

External Focus

What can Merck do to influence the image of the women's global constituency within the Company and the healthcare and buying decisions of women customers?

Who are the most important external stakeholders with which Merck should partner?

Internal Focus What are the vital few things you would like to see Merck focus on to enhance inclusion for women?

What are the most effective ways for Merck to accelerate the development of women leaders?

Customer value

questions

Culture questions

Engaging Women

Flexibility Development / Networking

Business: Clinical Trials

Investigators

Patients

RepresentationGlobal M01-M03 Female Representation Projections

30.0%

31.4%

32.7%

33.9%

35.0%36.1%

30%

32%

34%

36%

38%

40%

2009 2010 2011 2012 2013 2014

1

2

4

3

Now… Let’s engage in the conversation