Abstract
Introduction
Pharmaceutical history is littered with the abandoned husks of great ideas,
many costing a king’s ransom and never able to live up to their promise.
Indeed, there is little doubt that in recent years pharmaceutical companies
have been getting their execution wrong. The key to future survival and
success is a company’s willingness to embrace change and adopt new
approaches to execution. Pfi zer’s recent implosion speaks to the heart
of the challenges facing the pharmaceutical industry today. Dynamic changes
are under way in this industry, and downsizing alone is unlikely to be enough
to save many companies. This report suggests several changes to both strategy
and execution that will help companies be viable in tomorrow’s
marketplace. While there are both challenges to overcome and pitfalls to avoid
along the way, getting execution right now matters more than ever.
Get the Answers You Need to Shape Your Strategy
There is little doubt that in recent years, pharmaceutical companies have been
getting their execution wrong. What mistakes have been made and how can
companies correct their execution of strategic goals?
The cost structure of today’s pharmaceutical industry has changed.
What procedures will improve effectiveness in this new business
environment?
A number of valuable opportunities for change exist for pharmaceutical
management. What are they, and how will they affect the success of the
industry?
There are major impediments to change in the pharmaceutical industry. What
are they, and how can they be overcome?
Scope
- Basic concepts affecting and impeding company change: corporate
culture, strategy versus execution, behavior versus attitude, effi ciency
versus effectiveness.
- Pfi zer: victim of its own success and prescription for change.
- Prescriptive plans for Pharma: simple strategies to improve
execution of strategic goals.
- Cost-cutting: a vicious cycle of long-term, negative effects from
short-term solutions.
- Marketing & selling: optimizing direct-to-consumer advertising and
salesforce size.
- Lipitor: useful as a litmus test for the impact of promotion on
sales in the current market.
- Outsourcing and Offshoring: cost-effi ciencies that create
tomorrow’s competition.
Mentioned in This Spectrum Report: Business Terms
- Accountability
- Attitude
- Behavior
- Buy-in
- Centralization
- Command & Control
- Communication
- Complexity
- Consolidation
- Controls
- Coordination
- Corporate culture
- Cost cutting
- Cost structure
- Credibility
- Cultural Audit
- Decentralization
- Direct-to-Customer
- Downsizing
- Due diligence
- Effectiveness
- Efficiency
- Enterprise
- Execution
- Fit-for-purpose
- Free market economics
- Globalization
- Holistic approach
- Incentivizing
- Inlicense
- Information sharing
- Knowledge transfer
- Layoffs
- Leadership
- Legacy costs and processes
- Lobbying
- Managed risk
- Marketing & Selling
- Mergers & acquisitions
- Offshoring
- Organizational size
- Outsourcing
- Performance feedback
- Phased redundancies
- Profit margins
- Quality
- R&D
- Results-oriented business
- Return-on-investment
- Right-sizing
- Risk management
- Salesforce size
- Share-of-voice
- Silos
- Skills drain
- Specialized therapies
- Standard operating procedure
- Strategy
- Structure
- Training bias
- Transparency
- Zero-based budgeting
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