executive summary: strategy and leadership how to excel … · by charlotte bretto milliner and...
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© 2005. Charlotte B. Milliner and Robert Dilts. CPD, Inc. (www.cpdinfo.com) All Rights Reserved.
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Executive Summary: Strategy and LeadershipHow to Excel in a Changing Business Environment
By Charlotte Bretto Milliner and Robert Dilts
This study, conducted by the Center for Professional Development and Dilts Strategy Group,presents the results of interviews done with 17 executives within the healthcare/life sciencesindustry. The executives included Presidents, Senior Vice Presidents, Chief Scientific Officers,venture partners or corporate heads. They were based in the US or Europe, all with a multi-nationalresponsibility. Companies interviewed included: GlaxoSmithKline, Novartis, Pfizer, Bristol-MyersSquibb Company, F. Hoffmann-La Roche Ltd., Pharmacia, Research Triangle Institute, SproutGroup, Intersouth Partners, Tularik, Cardinal Health, Inc., Caremark, Inc. The executives were askedhow they have adapted their business strategy and leadership approach to the challenges broughtabout by changing global economic and corporate conditions.
Major Effects of Changing Economic and Corporate Conditions
One of the major effects of the changing economic conditions was increased financial pressure. Bothcustomers and investors have become more risk averse. This trend has been accompanied bydramatic price reductions and diminishing revenue and margins, bringing with it a pressure tostreamline operations and improve return on committed capital.
Another major issue relates to increased challenges in maintaining the product “pipeline.” Economicpressures means companies have less time and resources for innovation, and more pressure ongetting new products to market. At the same time, changing government regulations mean that ittakes longer to get products to market, diminishing the product life cycle. The government has alsobeen exerting greater cost containment.
A third issue has to do with changing customer needs. Customers have become more demanding,requiring better service and price concessions. They are also more educated, with patients playing amuch bigger role in their treatment. This has led to the need to provide more information tocustomers and an increase in direct-to-consumer marketing. The increase in “virtual” interaction hasalso required companies to use the Internet more wisely to get to customers.
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© 2005. Charlotte B. Milliner and Robert Dilts. CPD, Inc. (www.cpdinfo.com) All Rights Reserved. 2
Overall Strategic Objectives In order to address these conditions, companies have had to establish the following strategic key objectives:
• Streamlining operations • Making the best use of technology • Working in multi-disciplinary teams • Identifying the outcomes the customer wants and figuring out how to measure progress
As one of the leaders in the study succinctly put it: “Every business can be sustained in challenging times if it truly focuses on precisely what it’s good at, eliminates all unnecessary costs, and has a workforce that is in complete harmony and understands exactly the position the company is in, the context they’re working in, and have the belief that they can make a difference.” Many companies, however, have experienced difficulties in reaching these objectives because they have been environmentally insensitive, trapped “inside the box” of their previous habits and applying outmoded structures and practices. A narrow perspective and closed mindedness has left them stuck “running in place.” The Call to Action -- Effective Leadership In order to reach strategic objectives and address industry problems, companies need more effective leadership--leadership founded upon vision and communication. Effective leaders have a vision and a mission and a strategic plan for implementing the vision. They are able to embrace a broader vision, communicate it to their staff, engage them as part of the process, and then develop more complex strategies and plans. This involves three fundamental steps for creating and managing change:
1. Defining the Change 2. Building and Empowering the Team 3. Implementing the New Process and Diffusing the Results
Defining the change involves the leadership abilities of vision and anticipation. Companies need to anticipate effectively, detecting weak signals in the environment. Another key to defining change is stimulating thought leadership by encouraging innovation and innovative thinking. Building and empowering an effective team demands that leaders be visible and promote alignment. Visibility requires the ability to be bold and have challenging conversations, with team members, customers, government representatives and suppliers. Alignment also involves the capacity to release passion by connecting purpose to action.
© 2005. Charlotte B. Milliner and Robert Dilts. CPD, Inc. (www.cpdinfo.com) All Rights Reserved. 3
Implementing the new process and diffusing the results have to do with viability and action. Effective action comes from the leader’s ability to generate “spark” by inspiring and recognizing others. It also requires the ability to foster dynamic teaming and promote generative collaboration. The integration of effective leadership with business strategy can be summarized in the following model: Leadership
StrategyActions Qualities SkillsOutcomes
Performance
Vision
Managing and Maintaining the Product Pipeline
Executing the Strategy and Containing Costs
Developing Effective Teams and an Aligned Work Force
ActingBuilding and Empoweringthe Team
Defining the Change
Implementing the New Process and Diffusing the Results
Anticipating
Anticipate Effectively - Detect Weak Signals
Stimulate Thought Leadership - Encourage Innovative Thinking
Be Bold - Have Challenging Conversations
Release Passion - Connect Purpose to Action
Generate Spark - Inspire and Recognize Others
Foster Dynamic Teaming -
Promote Generative Collaboration
CommunicationIntegrityMentoring
Stretching
Core Competence
Long-Term View
Efficiency
Focus
Accountability
Visibility
Aligning
Viability
Summary of Key Leadership Abilities to Reach Effective Performance in the Pharmaceutical Industry