Luye Pharma : “The core of Luye's strategy lies in growth, and the key driver of growth depend on human resources effectiveness. Thus it is critical to identify and develop competent talents in a proper way.” - Liu Dianbo, Chairman of Luye Group

'The core of Luye's strategy lies in growth, and the key driver of growth depend on human resources effectiveness. Thus it is critical to identify and develop competent talents in a proper way.'

Liu Dianbo, Chairman of Luye Group

2016 Luye Group Mid-year Management Conference was held in Qufu, the homeland of Confucius culture in Shandong province from Aug. 7th to 10th, 2016. Luye Pharma, Luye Medical and Luye Investment Management Teams from China, the U.S., Australia, Singapore, Korea, etc. came together for the first time to lead the Group to greater success!

Luye's rapid growth in recent years has accelerated its global expansion pace. During Luye's rapid globalization process, the Group must place its priorities on strategy planning & implementation, human resources effectiveness elevation, and rapid integration & establishment of organizational culture.

Luye's New Strategy - To be a Total Healthcare Solutions Provider

In Day 1 meetings, each business segment presented their strategic business plans for the future 10-20 years, all aiming to become global leaders in respective areas.

Luye Pharma is committed to becoming a global leading innovative pharmaceutical company, focusing on research and innovation in four core areas including central nervous system, oncology, cardiovascular system and diabetes. In order to gain momentum in both domestic and international markets, Luye Pharma will take M&A as a key mean to expand its business, support strategic growth through R&D, BD, manufacturing, marketing and branding, and build up a robust pipeline and competency in business operation.

In order to provide medical professionals and patients with high-quality international medical services, Luye Medical will spare no efforts on developing three business segments: therapeutic medical complex, lifestyle-oriented specialized hospital and medical innovation center based on education and research. Through integrating and importing advanced medical technologies, operating models, management systems and professionals from the U.S., Australia, Singapore and Korea, Luye Medical is becoming the largest international medical group in China.

Vela Diagnostics possesses a broad test portfolio with IVD registrations in multiple markets, a variety of validated sample materials and more than 30 assays and open-channel capabilities. Recently Vela has made significant process in both independent innovation and acquisition of related businesses, including but not limited to launching the first next-generation sequencing test for HIV drug resistance and CE-IVD HCV genotyping next-generation sequencing assay. Vela is expected to offer oncologists specific clinical treatment plans after acquiring the data interpretation division of Lifecode Inc., a California-based cancer molecular company. With expansion of next-generation sequencing assay application, Vela will embrace a huge growing opportunity in molecular diagnostics area.

Growth Plays a Key Role in Luye's Strategy

Chairman Liu elaborated on Luye Group's development strategies, analyzed the latest healthcare industry trends and pointed out Luye's challenges and opportunities. He urged the entire management team to make full sense of strategies, reach a consensus, and make landing plans for effective execution. Considering that growth plays a key role in strategic planning, in face of new challenges, all business segments should spot key factors, think outside the box, make brave decisions and take responsibilities. Luye Group aims to become the total healthcare solutions provider to deliver closed-loop services from diagnosis to pharmaceuticals and medical services.

Strategy Breakdown and Collaborative Implementation

Based on the group strategies, each department reported their respective 5-year execution plans listing key targets, timelines, specific methods and available resources to cooperate with each other.

Yang Rongbing, Executive Vice President of Luye Pharma Group, pointed out that domestic market should develop up-to-date marketing strategies for core products to adapt to changes; manufacturing system should assist operating departments while ensuring quality and keeping a close eye on market demand. Currently the major task for Luye Pharma International is to ensure smooth transition of the newly acquired European project; further improve the organizational structure and work process for international business, and integrate with domestic businesses. Human resources need to promote talent flow through improving performance assessment system.

Improve Human Resources Effectiveness and Support Strategy Implementation

Strategy landing relies on talents. Luye Group kicked off the Human Resources Effectiveness Project early this year. Mr. Wang Hongsheng from Organizational Development Department reviewed project implementation progress, interpreted project survey reports and proposed future work priorities and improvement suggestions. Through the analysis of '360° Leadership' survey results, he also introduced the Talent Review Project for lifting effectiveness.

Amoeba Management Training

As the saying goes, 'Experience from others may help us overcome shortcomings'. Mr. Suzuki Shigeru, GM of KYOCERA Amoeba Management Consulting(Shanghai)Co., Ltd, was invited to give a training on ' Kazuo Inamori Management Philosophy and Amoeba Management Practice Sharing', which successfully inspired the management team on how to motivate their staff.

Amoeba Management was created by Kazuo Inamori, the creator and the current Kyocera honorary chairman. It encourages all employees to actively participate in operation by dividing the organization into small units acting as an independent profit center. Mr. Suzuki explained Amoeba Management in details and set forth specific implementation process & impact via sharing the Japan Airlines case study.

Identify and Develop Competent Talents in a Proper Way

The core of Luye's strategy lies in growth, the key driver of growth depends on human resources effectiveness. Chairman Liu emphasized that Luye is growing along with the globalization process, and Chinese companies must tackle bottleneck of attracting global talents. Human Resources Effectiveness does not simply mean headcount reduction, but to identify competent talents who are able to help Luye develop further. Luye's Management needs to develop competent professionals as quickly as possible rather than solely relying on their self improvement. Chairman Liu encouraged management teams to evaluate their own and team competencies, ponder over effective ways to motivate teams and integrate global talents into their original teams for moving forward together.

It takes at least 5 years to develop a talent, which is a top priority for Luye. Chairman Liu urged the entire management to possess strong talent developing sense and never treat young staff with biases. It is their unique way of thinking that brings in progress. Luye features strong capabilities to cultivate talents through business development and project practice. By doing so, young talents could inherit such merits. HR department should form a mechanism to take talent development as one of the evaluation indexes for management.