World Monitor Magazine April 2017 | Page 122

additional content that can be the foundation of product development and patient outreach programs. Processes are in place to enable full transparency of interaction between the medical affairs team and healthcare professionals, and systems are used to track the effectiveness of different channels and campaigns. Collected information is proactively shared throughout the organization to increase touch points and outreach to the medical community, while reactive responses will become a thing of the past. Medical affairs teams identify opportunities for pharma to partner in the healthcare system. • Skills and culture: Strategic channels to key opinion leaders and clinicians are opened, providing data, ideas, and insight for brand planning. These dialogues and analytical insights are crucial in translating healthcare professional needs into opportunities for pharmaceutical companies. Scientific strength is balanced with commercial acumen, strong relationship building, and alliance management skills, fostering public– private collaboration. These descriptions portray the ideal state for pharmaceutical companies, when operating levers and critical teams are perfectly aligned; silos are eliminated; cross-functional, open communication is the norm rather than the aspiration; and strategic goals mesh with tactical product development and go-to-market campaigns. In actuality, though, given that most pharmaceutical companies have some critical team activities but usually in silos, change will be gradual. More commonly, companies will go through a series of organizational maturity stages as they implement each aspect of critical team capabilities: reactive, tactical, strategic, and leading (see Exhibits 4–7). 118 world monitor Most pharmaceutical companies are currently in the tactical stage. Depending on where a company's critical teams are on the maturity curve at subteam level or collectively across the subteams, a decision can be made about whether to simply improve capabilities in the current organizational model or more radically turn the operating model upside down — in other words, begin again in light of the disruptive operating environment. Experimenting with a company's operating model is more easily done locally, where there is less complexity and fewer moving parts, but we have observed that some pharmaceutical companies are taking aggressive steps to transform themselves at the corporate level. Typically, the demands for greater connectivity across critical teams are motivating more sweeping changes. To accomplish transformation, companies will need to answer a number of key questions about how their critical teams will operate: Should there be one critical team leader across subteams? Where should critical teams sit within the organizational structure? How will the critical viewpoint be represented at the board level? Two companies, two successes To illustrate the potential impact that building more integrated critical team capabilities can have on a pharmaceutical company, consider the case of a global pharma company that assessed the cost of government activities — including regulations, insurance and payor policy decisions, and agency rule making — on its business at US$1 billion a year. In doing this analysis, the company realized that its operating model lacked strong and cross-functional critical teams, particularly pertaining to understanding and anticipating policymaker sentiment and decision making. As a result, the company was in reactive mode, unable to respond effectively to government actions in a timely manner. With a lack of visibility into regulatory deliberations, pricing, and market access, each sector of the operating model acted independently, ensuring an inefficient outcome. For example, in the absence of relevant intelligence to guide strategic launches, the company would begin to think about preparing the market for a drug just a year before the product’s introduction, far too late for a successful pharmaceutical launch. But without a connected critical team, there was no other option for developing an external strategy aligned to the business strategy. Unhappy about the money it was losing due to its own shortcomings, the pharmaceutical company created a framework for building a critical team capability that most mattered to the success of the business. Specifically, it created subteams to support ongoing communication and interaction with marketplace influencers, regulators, pricing decision makers, and the healthcare community. Members of these teams were not just policy wonks but also business strategists. This gave them credibility within the company to help craft strategic options as well as the ability to be on equal footing with outside sources whose activities affected the company. On the wings of this organizational transformation, the company has succeeded in areas where it was previously failing. The primary change is that the company is now a close- knit partner with regulators and government agencies, helping to craft healthcare policy. Simultaneously, it has opened vital external channels for collecting intelligence and insight that