Performance Management at AbbVie: Building a High-Performing Culture

This case study describes design and implementation of the performance management process (PMP) at AbbVie, a global, research-based biopharmaceutical company with approximately 30,000 employees worldwide; it is dedicated to developing and delivering a consistent stream of innovative new medicines. Following its separation from Abbott in 2013, over the course of 5 years AbbVie built a tailor-made PMP, guided by scientific knowledge of human behavior and the unique cultural imperatives of the new company. This case study demonstrates how traditional human resources tools can be used to create a culture of high performance and innovation. The company posits that business strategy, culture, and leadership precede any system design considerations and need to be primary drivers of these. The success of implementation is in the vertical and horizontal integration of all the elements of the performance management (PM) system. The chapter discusses the challenges and key principles of PMP design in a global matrixed organization and shares the company’s perspectives on the successes, opportunities, and future directions of the AbbVie PMP evolution.