corporate affairs excellence: optimizing group structure & operations report summary
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BEST PRACTICES,®LLC
1Copyright © Best Practices, LLC
Corporate Affairs Excellence: Optimizing Group Structure & Operations
BEST PRACTICES,®LLC
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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
BEST PRACTICES,®LLC
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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
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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.
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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
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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
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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
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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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Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that
organizations can chart a course to superior economic performance by studying the best business practices, operating
tactics and winning strategies of world-class companies
Best Practices, LLC6350 Quadrangle Drive, Suite 200,
Chapel Hill, NC 27517www.best-in-class.com
Telephone: 919-403-0251
About Best Practices, LLC
Link for Report: Corporate Affairs Excellence
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