Bethel Finance: Teva's CEO: Change necessary for survival

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Bethel Finance news:

"How do you move change forward? Change isn't moved forward; change is led. Leadership is the first thing," Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) president and CEO told the annual human resources conference in Israel today. Although he cited the example of change that Teva is undergoing as a business, he was clearly hinting at the changes underway in Israeli society. As he put it, "What I will say about change applies to both a company and in the environment in which we live. The right analogies should be made."

Yanai said that those who do not adapt to change do not survive. "It is a great mistake to thing that change is a one-time event. Change is a constant, and the pace of change is picking up. Most people don’t like change. They like to talk about change, but when it comes knocking at the door, they look away."

Yanai presented Teva's 2007 five-year plan, which was updated in 2010. "The word 'strategy' is a big word with many meanings. For us, it means fulfilling a long-term dream, translating measurable quantitative data into a roadmap for achieving targets. It is necessary to think in as long term as possible, spot future trends, risks and opportunities, but also understanding the dynamic. Good strategy knows how to give simple answers."

As for leadership, Yanai said, "Leadership is necessary because people stand at the center of change, and they must be given a response to instability. It's necessary to give people direction, a compass, and tell them where they are being taken. When they know the direction, they can prepare and critique it."

An enterprise undergoing change needs solidarity and excellence, he said, adding, "An enterprise should let a person feel that he belongs to an enterprise, which looks out for him. We take care of people who leave through placement and training, which is why there are no strikes at Teva."

As for excellence, Yanai said that it was important for people to know that political decisions are not driving an enterprise, but the good of the company. "For me, excellence is the primary value. Leadership in essence leads to excellence - of a company, a community, of people - and it is the answer for the phenomenon of change."