The pharmaceutical industry is dynamic and rapidly evolving. To compete, companies must learn to leverage the pace of change as an accelerator for both shareholder returns and patient outcomes.
Like the Space Race of the 1960s, the world looked to pharma for a resolution to the COVID-19 pandemic. Organizations able to successfully commercialize vaccines saw stock prices soar in 2021. However, most are not designed to support this magnitude of change over the long haul – a contributing factor to why the pharma sector has underperformed the S&P 500 over the past 3+ years. The threat of a recession only adds pressure on these companies to adapt and perform.
Shifting consumer preferences, relentless supply chain headaches, regulatory changes, the ever-increasing need for R&D, and scrutiny over the affordability of care collectively reinforce the adage that ‘What got us here won’t get us there.’
Leaders need to honestly evaluate their organization’s ability to thrive as they keep up with the competitive environment.
Embrace radical alignment to strategy
While strategic planning is standard for most organizations, few invest in articulating how the strategy is operationalized and, importantly, how the organization needs to adjust to achieve it. It’s not simply a cascade of goals; it’s an exercise in communication, prioritization, and alignment across roles and levels.
- Do your Mission, Vision, Values, and Purpose still hold true?
- Do they create a clear corporate identity, including meaningful differentiation?
- Do they translate across manufacturing lines, labs, and the boardroom?
- Would your employees know, without pause, what you do and why you do it?
- Do they universally factor into decision making?
- Have priorities over the short, mid, and long term been established and socialized?
- Do your employees understand these principles at a high level?
- Are teams aware of how they contribute to stakeholder value?
Driving strategic awareness and engagement across your organization not only increases alignment and accountability but builds the competency required to support continued evolution.
Clarify the operating model, roles & ways of working
While countless articles identify ‘pharmaceutical trends to watch’ all highlight common competencies: Collaboration. Agility. Speed. Digitization. Innovation. Transformation. Empowerment.
It’s important to examine your operating model with these competencies in mind and adjust your structure, roles, or ways of working to align.
- Do your leadership principles support the competencies needed to succeed in the market?
- Where do these competencies need to show up most?
- Where are they missing today?
- Are leaders clear on the scope of their responsibility?
- Where is your organizational tension?
- What are your primary risks from a team performance perspective?
- Are there instances where focus is diluted, or leadership input is overbearing?
- Are there gaps in critical areas?
- Are the right leaders leading the right teams to achieve our strategic priorities?
Designing your organization with these competencies in mind enables you to more easily adapt to changes in market as well as capitalize on new opportunities to support strategic growth.
Focus on the employee experience
Peter Drucker famously said, “culture eats strategy for breakfast.” This reflects his recognition of the power of human capital in shaping an organization and accelerating results.
Organizations that overlook this relationship risk continued disengagement and turnover. The impact is not only measured in productivity losses and cost to backfill, but in the form of a retention tax paid by team members who assume the work of those who left. Left unchecked, this cycle will drain institutional knowledge, erode company culture, and negatively impact the employer brand.
The pharmaceutical industry’s purpose of eradicating disease and improving the quality and quantity of lives is compelling, which is why patient experience and outcomes are vital factors to strategy. But what about employee experience?
- Does your company invest as much in the employee experience as the patient experience?
- Have you defined the employee experience you intend to provide?
- Does it align with your Mission, Vision, Values, Purpose, and Strategy?
- Have you mapped moments, expectations, and outcomes across the employee experience?
- Is your organization effective at making adjustments based on employee feedback?
- Are you proactive in retaining key employees?
A rewarding employee experience aligned with a compelling employer value proposition can help your organization attract and retain the talent needed to deliver on your strategic priorities.
Incorporate strategic agility into your organizational design
Earlier this year, Aspirant launched its Org Accelerator™ solution in response to pharmaceutical companies’ frustration with the change management process employed by more familiar consulting firms. This alternative approach pairs proprietary tools with their industry and functional expertise to dramatically reduce the time needed to restructure an organization. Click here to read the press release.
About Aspirant
Aspirant partners with business leaders to implement practical solutions to their most critical strategic, technological, and talent-related challenges. Our collaborative teams apply industry and functional expertise to help clients achieve sustainable results. We also strive to make a meaningful impact in the community by raising awareness of domestic violence and supporting victims through our Connection of Hope program.