Consultants Confidential, Nov 1, 2007 - Pharmaceutical Executive

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Consultants Confidential, Nov 1, 2007
From the Editor
Turning The Battleship Around
By Marylyn Donahue
Top consultants possess one thing in common: the ability to think independently. So Pharmaceutical Executive has turned to more than 20 top consultants to see what they're thinking about the industry today.
Introduction
The Future is Now: Consultants Spotlight
By Marylyn Donahue
DIRE PREDICTIONS ABOUT the pharmaceutical industry have been made before. Indeed, they're made so often it's begun to resemble a chorus in a Greek tragedy: The industry is in trouble, really big trouble. The pipeline is dry, share value performance poor, sales and marketing spending on the rise, legal and regulatory constraints are tightening, and its image...well, think tobacco industry.
Features
Stan Bernard, Bernard Associates
BEWARE THE STAKEHOLDERS Today's biggest threats to pharmaceutical companies come from their own stakeholders: consumers, payers, regulators, politicians, governments, the media, and others. Companies often fail to expect these threats and must react to them with little time and preparation.
Rick Mann, MarketBridge
DUE TO THE past successes of the feet-on-the-street model, the pharmaceutical industry has been slow to transform its go-to-market model and adopt a more multichannel approach. Engineering such a transformation not only requires deep pharma industry expertise, but also extensive knowledge of the relationship between sales and marketing organizations. The full integration of marketing and sales—plus the ability to design, build, and manage cost-effective multichannel go-to-market programs—is the key to achieving growth in this industry.
Setting Up Shop on Second Life
By Marylyn Donahue
An interview with Claus Nehmzow of PA Consulting Group, on doing business in the virtual world Second Life, where PA has recently opened a new "office."
Jim Hall, Oliver Wyman
WHEN IT COMES to successfully managing a pharmaceutical company today, the challenge is twofold: How well does your company manage the development of science, and how well does it manage your markets and customers?
Jan Heybroek, The Arcas Group
PHARMACEUTICAL COMPANIES are operating within a system that does not have direct purchasing as its main transactional platform (i.e., the one who makes the purchasing decision pays for the product). Therefore, it is imperative for pharmaceutical companies to directly and indirectly engage with all stakeholders and actively coordinate and manage these complicated relationships.
Lynda McDermott, EquiPro International
COMPANIES SHOULD NOT rely on consultants so much as use them for special and sensitive projects where a third-party perspective can be helpful and add value. A consultant's project in a company should have a clear scope of objectives and business outcomes (even for soft-skill consultants who consult on people, management, team, or organizational skills and processes).
Bruce Babbitt, Peter Smith, Marta Jimenez, Parexel
CONSULTANTS CAN HELP companies when they need to
Stephen E. Gerard, TGaS Advisors
CONSULTANTS AND ADVISERS to pharma deal with a high degree of complexity because of the intense scrutiny on all industry activities, particularly commercial operations. The regulatory environment, the challenges of bringing a drug to market and keeping it viable, and the number of moving parts in a pharma company drive the complexity, which makes decisions more complicated. Pharmaceutical-industry consultants also need to consider public perception, impact on patients, and privacy boundaries when advising on strategy and tactics.
Mason Tenaglia, Amundsen Group
NEW CHALLENGES, such as the best way to measure the performance of products under Medicare Part D, are often best solved through incremental improvement. Consultants who work the same problem in four or five companies simultaneously will have the ability to complete more "cycles" than a particular client organization. My belief is that consultants can take on these issues faster, better, and cheaper than any single pharmaceutical company.
Mark Kolb, Patni Life Sciences
CONSULTANTS MUST POSSESS both domain knowledge and information technology knowledge. It is most important that pharma consultants truly understand the business model and the unique challenges of the industry. The consultant also must be expert in the application and technologies that are generally found in the pharmaceutical industry.
Sanjay K. Rao, CRA International
WHILE PHARMACEUTICAL MANAGEMENT consultants are expected to excel as general management consultants, they should master the intricate complexities of their industry to be in a position that adds value to the client's mission.
Susan Cypra, Archstone Consulting
MANY COMPANIES ARE doing a good job evolving their strategies to take advantage of new technoligies and merging global healthcare models. However, some need revolutionary change to respond to the challenges brought by emerging customers and generic competition (especially follow-on biologics).
Terry Hisey, Deloitte
THE REAL CASE for consultants is that they bring capabilities that allow organizations to implement sustainable change in their businesses; and that without outside assistance, these organizations wouldn't realize strategic, operational, or regulatory objectives. Often, it makes sense to use outside consultants when
Todd Clark, VOI Consulting
A FEW PHARMA COMPANIES might emerge with revolutionary business models, and the larger industry might evolve toward those positions. But with anything of this size, major change will take time.
Conrad Heilman, Tunnell Consulting
MANUFACTURING STRATEGY has taken on new urgency, with offshoring becoming the latest and greatest trend. Far too many pharma companies are simply playing follow the leader instead of assessing the long-term implications of offshoring for their company, their products, or their nation. Alternatives, which include operational improvements and the adoption of new ways of controlling processes, improving efficiency and maximizing quality, are viable options.
David J. Winigrad, The Hal Lewis Group
EVERYONE IN OUR INDUSTRY risks being left behind by the revolution already underway as digital media enables new and different conversations between companies and different stakeholder groups.
James Featherstone, Wood Mackenzie
THE REAL 'VALUE ADD' a consultant can provide is the ability to independently challenge internal perceptions within the client organization. It is unavoidable that a client's view of the future can become colored with bullish or pessimistic views of the environment, and having an independent, third-party challenge to these perceptions or views is increasingly important. Content-driven strategic consulting houses are well placed to do this. They can provide a positive alternative to process houses that, in some ways, perpetuate internal thinking, which is sometimes misguided, with no objective discussion.
Dan Walsh, PA Consultants
THE BEST CONSULTING has a point of view. We don't earn our money if we don't come to the table having listened to the data with that point of view.
John Campbell, Campbell Alliance
PHARMA CAN STAVE OFF THREATS. I'll give you two examples—one on the commercial side and one in R&D:
Ray Hill, IMS Health
I AM CONVINCED that pharmaceutical companies must execute well on three fronts by
Sander Flaum, Cary Lemkowitz, Flaum Partners
CHANGES ARE ROCKING the industry, and companies need to respond in kind. Generics are flooding the marketplace. Foreign protocols are making new-product development more demanding than ever. And we can only guess at the future of pricing. But revolutionary opportunities are just as powerful. Look at the growth of personalized medicine, biologics, and the exciting pipelines in oncology, Alzheimer's disease, diabetes, HIV, and other therapeutic areas. The revolution is here, and the smartest companies are right in the front lines.
Jaideep Bajaj, ZS Associates
THE REAL TEST FOR PHARMA will come in next few years, as many promising sales model innovations are being rolled out on a large scale. Will these changes take hold and be ultimately perceived as successful? Will the sales culture evolve to match the new business model? Will the public image of pharmaceutical companies improve as a result of these innovations?
Laura Montocchio, Corporate Training Consultants, Inc.
UNTIL RECENTLY the pharmaceutical industry regularly outperformed the S&P 500. So, historically, one could argue that pharmaceutical companies have been well managed. In the past few years, however, that trend has reversed, with the S&P 500 regularly outperforming the pharmaceutical industry. One has to wonder if the industry as a whole is as nimble and efficient as it needs to be to deal with the challenges and opportunities presented by the increasingly rapid rate of change within the marketplace.

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