Talent management after an acquisition: a case study of Roche and Genentech

Abstract

Purpose

As the pharmaceutical industry faces a more changing environment, talent management appears to be a key differentiating element. Key talent retention strategies must be assessed during the mergers and acquisitions negotiations and implemented during post-acquisition integration. The purpose of this paper is to show how this can be done.

Design/methodology/approach

The paper adopts a single-case approach to show how talent can be managed during the post-acquisition phase after a takeover. Focussing on the acquisition of Genentech by Roche in 2009, it demonstrates how the Swiss pharmaceutical giant overcame a difficult initial start to the acquisition by adopting a nuanced talent management strategy.

Findings

The findings from this paper demonstrate best practice management and retention strategies needed to retain key talent. A decade after the acquisition, the Roche–Genentech tie-up is cited as one of the most successful in the life sciences industry. Roche’s talent management strategy has gained particular applause with Genentech consistently being named one of the best places to work (Wharton Work/Life, 2016). Investors are equally content. Sales of Genentech’s main products have tripled to $21bn since the acquisition.

Originality/value

This paper offers a concise and clear outline of the HR strategies used by Roche to ensure the successful integration of Genentech. During the takeover, talent management issues had the potential to be particularly acute given the highly independent DNA of Genentech’s organisation structure. As the pharmaceutical industry faces a more changing environment, efficient talent management appears to be a key differentiating element.

Citation

Béraud, M., Drajac, C. and Thomas, M. (2021), "Talent management after an acquisition: a case study of Roche and Genentech", Strategic HR Review, Vol. 20 No. 1, pp. 30-35. https://doi.org/10.1108/SHR-09-2020-0082