Corporate Affairs Excellence: Optimizing Group Structure & Operations Report Summary

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Corporate Affairs Excellence: Optimizing Group Structure & Operations


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Table of Contents

• Project Blueprint – pg. 3

• Executive Summary: Benchmark Insights &

Research Participants– pg. 5

• Commercial Structures: Trends That Drive

Business Unit Structures & Evolution of

Corporate Affairs – pg. 11

• Novartis Case Study: Articulating Business

Units to Express Growth &Entrepreneurial

Spirit – pg. 17

TOC Continued

• Corporate Affairs Group Structures: Key

Trends & Drivers of Sub-group Evolution

–

pg. 28

• Corporate Affairs Group Models &

Structures – pg. 32

• Corporate Affairs Group Services: Key

Trends In Service Levels & Priorities –

pg. 45

• Contact Information – pg. 50

Table of Contents



Optimizing Structure Involves Integrated Practices & ApproachesThere are no perfect structures. “Form follows function.” New market pressures and lifecycle events compel structures to evolve. Optimizing structure reflects the integrated management of units, people, process, technology, communications, incentives and other management factors.

Corporate Affairs: Accelerated Evolution

To Make the New Structure Work

1. Realign to Support New Corporate Goals,

Strategies 2. Fine-tune Corporate Affairs Sub-group Structures

3. Establish Service Levels to Reflect

Priorities & Resources

7. Drive Long-Term Priorities & Respond

to Ad Hoc Issues

4. Integrate Operations to Bridge BUs, Geographies & Sub-Groups

5. Use Funding / Budgeting Process to Reaffirm Alignments

8. Manage / Coordinate Rolesfor a Fully Integrated Pharmaceutical Network

10. Assess Performance,

Refine & Continuously

Improve

6. Refine Talent

Management Strategies &

Systems to Fit New Structure

9. Optimize Learning to Enhance Performance

“No institution can

possibly survive if it

needs geniuses or

supermen to manage it.

It must be organized in

such a way as to be

able to get along under

a leadership composed

of average human

beings.”

-Peter Drucker



1. Abbott Laboratories2. Amgen3. Astellas Pharma, Inc.4. Astra Zeneca5. Boehringer Ingelheim6. ConvaTec7. DRI8. Eisai, Inc9. Eli Lilly and Company10. Emirates11. Genentech12. Genomic Health13. Genzyme14. GlaxoSmithKline15. Intas Pharma16. MDS Nordion17. Medtronic18. Merck Sharp Dohme Turkey19. MetLife20. MSD21. National Grid22. Novo Nordisk23. Pfizer24. Purdue Pharma LP25. Roche Diagnostics Diabetes Care26. Solvay27. Stiefel, a GSK Company28. UCB29. W. R. Grace & Co.

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Corporate Affairs Benchmark Research Participants

Participants in this benchmarking research included 28 corporate affairs executives and managers at 27 leading bio-pharmaceutical, healthcare and non-healthcare companies. Interview participants are underlined.



Participants’ Job Titles Typically Director or AboveResearch participants included Vice Presidents, Executive Directors, Medical Executives, Directors and Managers. More than 69% of benchmark partners are directors and VPs and 31% are managers. All work directly or indirectly in Corporate Affairs functions.

JOB TITLE JOB TITLE

Assistant Director Government Affairs Manager

Associate Director Manager

Copy and Production Officer Manager

Director Manager

Director Manager

Director Manager

Director Manager,

Director Medical Executive

Director Project Manager

Director Senior Director

Director of Advocacy Sr. Director

Director, Communications Sr. Manager

European Director Vice President

Executive Director Vice President

Executive Director



Functional Perspectives Circumscribe Corporate Affairs

Benchmark partners reflect functional experience that interacts directly or indirectly with the Corporate Affairs function. Since Corporate Affairs resides in different places across companies and sectors, diverse functions from Government Affairs, Corporate Affairs, Communications, Medical Affairs and Advocacy participated in this study.

GROUP OR FUNCTION GROUP OR FUNCTION

Advocacy Relations / Corporate Communications Healthcare Alliance Development

Communications Marketing Communications

Communications and Government Affairs Medical Affairs

Communications, Brand, Interactive, Creative Medical Affairs

Corporate Affairs Medical Affairs

Corporate Communications Multi Channel Communications / Marketing

Corporate Communications Patient Advocacy

Corporate Communications Patient Advocacy Relations

CRM and Customer Experience Patient Services and Professional Relations

Customer Marketing Professional Relations, Public Affairs and Advocacy

General Medicine Public Policy and Advocacy

Global Advocacy Development Sales and Marketing Communication

Global Employee Communication and Brand Stakeholder Management

Government Affairs State Government Affairs

Government Strategy and Relations



Hybrid Structure Most Common of ApproachesThe multi-industry study group reflected diverse approaches to corporate commercial structure. About one-third described their commercial operating structures as “hybrids.” This reflects various characteristics designed to help them deal with growth, scale, products and geographic complexity. About 47% of respondents said they evolved using some form of decentralization.

Q4. Commercial Structure: Note the approach best describing your company's commercial operations structure

(n=28)

Commercial Operating Structure

20%

17%

10%

30%

23%

Hybrid

Centralized

Decentralized by Product Families / Divisions

Decentralized by Geography

Decentralized by Therapeutic Area

Percentage with Each Operating Structure

47% reflect some form of

decentralization



Business Unit Design Principles

Corporate Affairs StaffCentralized At Regional Headquarters / Decentralized by Product

Family Groups With Different Operating Headquarters

Business Unit

TherapeuticAreas

Corporate Affairs HeadVice PresidentHeadquarters

Mid-Cap Pharma Company - Model ACorporate Affairs Sub-Group Structure

General Counsel

Business Unit

Product Families /Lines of Business

Business Unit

Geographic -Focus

Business Unit

CustomerSegments

Supports 3 Blockbusters and more than 10 smaller primary care and specialty careproducts in Prescription Pharmaceuticals Line of Business.

Business Unit

ProductLifecycle

Corporate Affairs Group Structure – Mid-Cap Pharma - Hybrid Approach - AHere, Corporate Affairs reports to the General Counsel with centralization at headquarters and staff decentralization to product families with different regional headquarters. Business units organized by therapeutic areas, product families, geography, product lifecycle and customer segment. Corporate Affairs supports three blockbusters and 10 smaller products.



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Corporate Affairs Excellence: Optimizing Group Structure & Operations Report Summary