Pharma Reform

Will healthcare reform and the evolving new market change what pharmaceutical companies need from their leaders?  Will companies require the same or different skills than leaders of the past?

Over the past 40 years or so the industry has evolved from an early focus on research to an intensifying focus on commercialization to today with a seemingly dysfunctional scramble for a new business model for the future.  Do the skills and expertise for leadership depend on the context and focus of the company strategy?

OK. Have I got you thinking?

I hope pharmaceutical company Boards of Directors and executives are thinking about this.  I suspect, the leadership potential for many executive who have advanced as far as they have might need to be reevaluated in the context of the evolving new healthcare market and changing company strategies or focus.

Basic management and leadership skills are essential for running these complex organizations in the increasingly complex evolving new healthcare market. That won’t change and the stronger those skills, the better.  But what about the expertise of executives who are currently in development succession plans? It could make a difference.

At some point in their career, most executives applied their expertise to be identified as a potential leader.  They won a significant legal case, launched a blockbuster product, had the highest regional sales, had the most productive operations, or something.  Those moments of accomplishment brought with it recognition but also opportunities for advancement and training.  For those fortunate enough, organizational development or luck provided the opportunity to developed broad functional areas of expertise across the organization.

But, what about those who have more narrowly defined areas of expertise?  Keep in mind that merely having a department report to you does not mean you have developed expertise in that function.

The strategic platform a company chooses to pursue could require expertise that some previously successful executives do not possess.  For example, commercially focused organizations with executives that have strong research based expertise.  Or, more likely today, executives with strong commercial or operational expertise in organizations that are now looking to rebuild and bolster pipelines with innovative new products which will require an in depth understanding of sophisticated the science and technology to make good decisions about resource allocation and development.

In most cases this mismatch of expertise will not be a liability given strong management and leadership skills.  Aligning expertise at the top with the strategic platform of the company could however represent a significant opportunity to optimize corporate performance.  Aligned expertise provides and important base for organizational credibility, insightful management oversight, and knowledgeable performance management with fair assessments and accountability. When you know what you are talking about and “have been there”, you have a much better idea about what to reasonably expect, what to inspect, and more importantly, how to help.

mike@pharmareform.com