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The year so far has provided some interesting debates on varying markets within Interim Partners, the market is changing, the landscape is shifting, surely this is a good thing for the interim marketplace. The Pharmaceutical market is no different, in fact I’d say that in its own real terms it’s a position of accelerated chaos. Through all of my meetings this year I’m not witnessing companies talking about business as usual, I’m hearing the talk is about change management, outsourcing, procurement initiatives, downsizing, consolidation through acquisition and regionalisation with a smattering of six sigma and a thirst for quality thrown into the mix.
So what does this all mean for us? Well change is good, it’s what we’ve built our business around. The question is around what’s the best approach to make sure the Interim marketplace aligns itself to the large amounts of change in this vast industry. I’ve just read this morning in the IMA Q1 IPSOS MORI poll that Pharmaceutical and Life Sciences makes up just 3% of the professional interim marketplace. The consulting businesses are stocking their shelves and strengthening their benches in their approach to Pharmaceuticals and we are looking to do the same, this percentage has to increase.
I’d be really interested to hear your thoughts on where you think the market will be in Pharma over the coming year and perhaps more importantly where clients will engage directly with the interim community and not engage a consulting business to outsource their problems to. Your comments are greatly appreciated and help us form a wider view.
Simon Gough is Director of Consumer and leads the Pharmaceutical practice.
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May 24th, 2011 at 2:25 pm
It’s certainly an interesting time. Not surprisingly, I’m one of several people who sees an increase of small start-up companies looking to exploit their particular molecule or piece of technology and then partner with a larger party. BUT… I think that will probably be only part of the picture, with the possibility of targeted government investment, new bioincubators, and so on.
Ultimately, providing easy access to the skills that are needed to save costs, deliver projects, and provide expertise, will help many new ventures succeed. Likewise, the drive to keep costs down will mean that big pharma and many SMEs will also look to interim solutions.
Most importantly, there will be an even greater emphasis on the quality of the relationship between consultant / interim management provider / company. Those who focus on providing tangible added benefit are sure to be in great demand.
May 24th, 2011 at 4:56 pm
Simon,
Here are a few thoughts concerning your query about how the Pharma industry will evolve in particular as it concerns Interim Management. Foremost one must remember that the pharmaceutical sector has always been one whose “natural frequency” has never exceeded the long wave band. Processes are slow and hence any evolution is also relatively measured as compared to other high-tech businesses.
Until fairly recently, in the mind of most pharmaceutical executives, allowing consulting firms into the organization was a bold move. Market pressures have lately forced senior directors to come up with unconventional strategies and consultants have been able to pry the door open. But this is usually limited to well-defined projects that “resonate” with the underlying processes of the company.
Interim management however is perceived differently, probably as a source of perturbations that risks causing more interference than help. The reason is twofold. For one it usually concerns a single person inserted into the workings of the company (as opposed to the consulting team that works in a separate room). Then, by the very nature of the function, this solution is temporary until a permanent (i.e. better one) is found.
If Interim Management (IM) is just taking over on a short notice basis because of some unforeseen event then the instances where this solution will be sought will remain limited. The way to broaden the utility of IM is to link this recourse to a transitional project within the company. In other words market the interim manager as a consultant you can step into a function temporarily, at any time that change in management is proposed, to provide an independent assessment of the workings of the organization. In this case the opportunities for IM increase drastically because planned personnel moves are far more frequent than unplanned ones. Also, the function is no longer a knee-jerk reaction to an unexpected event but intelligent way to understand what the true challenges are and what managerial qualities are needed of the next executive to ensure the best possible results. Seen in this light the Interim Manager is an independent evaluator linking the senior management, personnel and the department concerned.
Lastly you should maybe start by calling yourself an Interim / Solution Management company. This may be the best way to let people know what you are all about.
May 24th, 2011 at 5:09 pm
Hi Simon,
For me in Pharma where I am currently working the key challenge facing this market is a good new product pipeline which is where alot of pharma companies are struggling.
I think therefore, the requirement for interim support will not only focus on how to save cost but also anything that can help to grow the top line of corporations. This will lead to drive for increased innovation (‘big ideas’ )that will fundamentally change how we do things. Also increased knowledge of pharma industry, category knowledge to hit the ground running.
Regards
Subash