Designing and Implementing Change:

Observations and Lessons Learned

Mick PhelanBusiness Unit Director, MSD Ireland

MSD in Ireland2015

Businesses across Ireland

Areas of Focus

For decades the global pharma model was successful

In-house drug delivery engine Much unmet medical need led to blockbuster drugsSales Force “armies” promoting to clinicians who had full

prescribing autonomyLow government price controlsGlobal economic growth

But change came quickly

Big development engines were inefficient, need to change drug development model

Much of unmet medical need satisfiedPhysician autonomy eroded, multiple stakeholders emergeGovernments develop cost containment mechanismsGovernments initiate HC reformGlobal economic crisis lowers demand

Designing and Implementing a new business model

Requirement to Change

Approach to Change

Employment

Engagement

Employee Recommend

ations

LT and FLM Decisions

Implement

Changes in Summary

New business model resulted in new roles and changes to every role in the organisation

Decreased resources in some areas (e.g., Sales Representatives) and increased in others (e.g., KAM, Market Access)

Reduced promotional resources shifted to activities that add patient value

Observations and Learnings

Communication is essential: Weekly email, monthly F2F, message alignment across first-

line managers Be honest and acknowledge and respond to feedback.

Respect for employees Value everyone’s input based on their experience and

knowledge of the external environment Requires professionalism, ability to wear an “organisational

hat” above their own Departing employees receive the credit and respect they

deserve Engagement works if it is: genuine, consistent and responsive

It has benefits far beyond the immediate task Facilitates a supportive, adaptive culture

Observations and Learnings continued

Transition for Leadership Team No more “D-Day Landings” Logic on it’s own is not good enough LT role and behaviours

Leadership through empowerment, engagement and devolved decision making

Employee development, change management, adaptability We continue to get it wrong…at least some of the time.