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Government Affairs and Public Policy Excellence Report Summary
 

Government Affairs and Public Policy Excellence Report Summary

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Report Summary--Government Affairs & Public Policy Excellence: Optimizing Group Structure & Operations. Contact me to view the full report.

Report Summary--Government Affairs & Public Policy Excellence: Optimizing Group Structure & Operations. Contact me to view the full report.

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    Government Affairs and Public Policy Excellence Report Summary Government Affairs and Public Policy Excellence Report Summary Presentation Transcript

    • Government Affairs & Public PolicyExcellence: Optimizing Group Structure & Operations 1 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Table of Contents Table of Contents TOC Continued •Government Affairs & Policy Funding Levels & Sources:•Project Blueprint – pg. 3 Examining the Resources Invested for Success – pg. 43•Executive Summary: Benchmark Insights and Research •Government Affairs & Policy Group Services: Trends inGroup– pg. 4 Service Levels & Key Priorities – pg. 49•Government Affairs Group Structures: Key Trends & •Government Affairs & Policy Responsibilities: Trends inDrivers of Sub-group Evolution – pg. 11 Forging Accountability & Clear Roles – pg. 60•Government Affairs Group Models and Structures – pg. •Communicating the Value of Government Affairs &28 Policy In a Global Bio-Pharma Company – pg. 67•Government Affairs & Policy Groups Staffing •Contact Information – pg. 72Benchmarks: Key Trends in Resourcing GovernmentAffairs Groups – pg. 37 Page - 2 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Universe of Learning: Government Affairs & PublicPolicy Benchmark Research Participants Participants in this benchmarking research included 16 Government Affairs and Public Policy executives and managers at 15 leading bio-pharmaceutical, healthcare and medical device companies. Page - 3 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Most Participants Hold Job Title of Director or Above Research participants included a Vice President, Executive Directors, Medical Executives, Directors and Managers. More than 44% of benchmark partners were directors or above, 38% were managers and 19% were vice presidents – all of whom worked directly or indirectly in Government Affairs and Policy functions. JOB TITLE Vice President Director Executive Director Director Senior Director Senior Manager Senior Director Senior Manager Medical Executive Manager Director Manager Director Manager Director Manager Page - 4 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Key Functional Perspectives Inform the Benchmarks Benchmark partners reflect functional experience that interacts directly or indirectly with the Government Affairs function. Because Government Affairs resides in different places across different companies, diverse functions from Government Affairs, Federal Affairs, Communications, Medical Affairs and Public Policy participated in this study. GROUP OR FUNCTION State Government Affairs Government Affairs Public Policy and Advocacy Global Regulatory Affairs Medical Affairs Global Public Policy Medical Affairs Federal Affairs Government Strategy & Relations Federal Affairs Government Affairs Operations Corporate Affairs Government Affairs Corporate Affairs Communications & Government Government Affairs Affairs Page - 5 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Key Insights & Observations from Analysis – 1 Field interviews and study analysis produced many observations and benchmark findings. Key study insights reflect the inter-related evolution of a company’s commercial structure and how Government Affairs is organized to serve internal and external customers. Differentiated Services Are the Norm for Government Affairs: Almost three-quarters ofDifferentiated Services Are the Norm for Government Affairs: Almost three-quarters ofparticipants said they vary the level of services ––staffing, time, responsiveness ––across internal participants said they vary the level of services staffing, time, responsiveness across internal customers. The practice reflects the significant impact that Government Affairs can have on importantcustomers. The practice reflects the significant impact that Government Affairs can have on importantbusiness issues such as reimbursement and regulatory. ItItfurther underscores how small expert staffs business issues such as reimbursement and regulatory. further underscores how small expert staffs provide services to diverse stakeholders while reflecting differences in stakeholder issues and impact.provide services to diverse stakeholders while reflecting differences in stakeholder issues and impact. Government Affairs Groups Seek to Balance Centralized Focus with DecentralizedGovernment Affairs Groups Seek to Balance Centralized Focus with Decentralized Local Needs: Nearly half of all benchmark partners employ Regional Models and Hub-and-Spoke ModelsLocal Needs: Nearly half of all benchmark partners employ Regional Models and Hub-and-Spoke Models in designing their structural approach to serving diverse geographies. Both approaches seek to balancein designing their structural approach to serving diverse geographies. Both approaches seek to balance centralized policy and GA perspectives while reflecting local needs across continents and country units.centralized policy and GA perspectives while reflecting local needs across continents and country units.Purely centralized or decentralized shaping factors are less commonly employed. A balanced approach –– Purely centralized or decentralized shaping factors are less commonly employed. A balanced approachsuch as the Hub-and-Spoke model ––can be advantageous in dealing with reduced staff and growing such as the Hub-and-Spoke model can be advantageous in dealing with reduced staff and growing emerging markets.emerging markets. Page - 6 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Government Affairs Structure Follows Business LinesBusiness Units lead the functional design factors shaping Government Affairs Sub-GroupStructure – followed closely by matrix models whereby Government Affairs staff serve morethan one internal customer group or unit. About one-quarter of the companies employproduct-focus, project-focus or therapeutic-area-focus in designing the GA structure. Q2. Government Affairs Sub-Group Structure: Note all functional factors describing how your Government Affairs organization is designed. Business Unit 75% Focus Matrix Model 69% Product Focus 25% Project Focus 25% Therapeutic Area 19% Focus % of Companies (n=16) Page - 7 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • One Big Pharma’s Government Affairs Serves Across BUsA Top 20 Pharma company divided its company into four Business Units: Pharmaceuticals,Devices, Diagnostics and Nutrition. The company’s Government Affairs group consists offour teams: State, Federal, Global and Reimbursement. The State team serves as generalistswhile the others are specialists. While Government Affairs serves each of the four BUs, thelevel of service varies by the units’ economic impact for the company. Pharma- Devices Diagnostics Nutrition ceuticals Generalists State Federal Federal Federal Federal Specialists Global Global Global Global Reimbursement Reimbursement Reimbursement Reimbursement Government Affairs = State, Federal, Global and Reimbursement teams Page - 8 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Government Affairs Group Models & Structures Page - 9 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • POV: Leveraging Resources - Merging Federal-State RolesRequires Clear Objectives, Overlapping Visits in Critical StatesOne Government Affairs veteran said it’s possible for one person to be effective in a dualfederal-state role, but it will require clear goals and priority-setting. While the GA staffercan focus on Congress all year, for most of the states that staffer can limit herself/himselfjust on the state government sessions, and work with the state representatives then. To Merge Federal and State Roles In Government Affairs: Target your issues and prioritize them. Identify states where you need to be aggressive and pinpoint critical states where you need to be more active. Create relationships with Congressional delegation while in critical states. “Well I think it’s doable if you have the targeted selection of what you’re trying to do. So work those Congressional delegations, either within the domestic offices in the states or actually go to the Hill and try to create a relationship there as well. I mean it’s going to take time, but if you schedule your itinerary properly, you could probably work that.” – Interviewed Director, Government Affairs Page - 10 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Differentiated Services Are the Norm for Government AffairsAbout three-quarters of participants said they vary the level of services – staffing, time,responsiveness – across internal customers. The practice reflects the significant impact thatGovernment Affairs can have on important business issues such as reimbursement andregulatory. It further underscores how small expert staffs provide services to diversestakeholders while reflecting differences in stakeholder issues and impact. Q21. Differentiating Services: Does your Government Affairs & Public Policy group differentiate its service levels (i.e. amount of staff support, time invested, speed of response, etc.) to different internal customers? No, 27% Yes, 73% (n=11) % of Companies Page - 11 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Communications & Goal Setting Best for Building Bridges WithOther Corporate Affairs Functions & Internal Customers Intensive communication was chosen as the most highly effective way of forging close ties with other Corporate Affairs teams and internal customers. Goal setting/alignment activities also ranked high in importance for building bridges with colleagues and stakeholders.Q26. Forging Close Working Ties: Rate the effectiveness of various approaches to build bridges and forge close ties among Government Affairs and Policy group members, other Corporate Affairs function colleagues and internal customers. Highly Somewhat Somewhat Total Neutral Effective Effective Ineffective Effective Intensive Communications 55% 27% 9% 9% 82% Corporate Goal Setting 27% 55% 9% 9% 82% Cascading Goal Alignment 18% 55% 18% 9% 73% Planning Alignment 27% 36% 36% 0% 64% Budget Setting Linkages 18% 45% 36% 0% 64% Embed function / structure optimization updates 10% 50% 30% 10% 60% on staff meeting agendas Collaboration Events 9% 45% 36% 9% 55% Monthly Staff Meetings 9% 45% 36% 9% 55% Interlinking goals among groups 18% 27% 36% 18% 45% Co-location 0% 40% 50% 10% 40% Page - 12 (n=11) Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
    • Contact Information 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, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 bestpractices@best-in-class.com www.best-in-class.com Page - 13 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC