Pharma Public Affairs- Resources Required to Serve the US Market Report Summary
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Pharma Public Affairs- Resources Required to Serve the US Market Report Summary

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Report Summary--Maintaining a Competitive Edge in Pharmaceutical Public Affairs: Benchmarking the Resources Required to Serve the U.S. Market. Contact me to view the full report.

Report Summary--Maintaining a Competitive Edge in Pharmaceutical Public Affairs: Benchmarking the Resources Required to Serve the U.S. Market. Contact me to view the full report.

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    Pharma Public Affairs- Resources Required to Serve the US Market Report Summary Pharma Public Affairs- Resources Required to Serve the US Market Report Summary Presentation Transcript

    • Maintaining a Competitive Edge in Pharmaceutical Public Affairs:Benchmarking the Resources Required to Serve the U.S. Market REPORT SAMPLE BEST PRACTICES,® LLC
    • 2 Table of ContentsStudy OverviewPublic Affairs: Structure and Reporting RelationshipsPublic Affairs: StaffingPublic Affairs: InvestmentPublic Affairs: Consolidated Staffing and InvestmentEfficiency RatiosLessons LearnedAbout Best Practices, LLC Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 3 Study OverviewCopyright© Best Practices®, LLC ®Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 4Research Objective and MethodologyBest Practices, LLC conducted this benchmark study to examine staffing and resource investmentlevels within Public Affairs departments. The study focused exclusively on pharmaceuticalcompanies U.S. based Public Affairs functions. Study Objective Study Objective Public Affairs Work Functions Public Affairs Work FunctionsTo ensure organizational health and For the purposes of this benchmarking For the purposes of this benchmarking To ensure organizational health andcompetitiveness, companies must competitiveness, companies must exchange, Public Affairs includes six exchange, Public Affairs includes sixcontinually identify optimal resource continually identify optimal resource work functions: work functions:levels for their operations. levels for their operations. Government Affairs (State and Federal Government Affairs (State and FederalThis benchmark study was designed to Government Relations and Public Government Relations and Public This benchmark study was designed to Policy)collect key staffing and investment collect key staffing and investment Policy)benchmarks for U.S. based benchmarks for U.S. based Corporate Communications ––External Corporate Communications Externalpharmaceutical Public Affairs pharmaceutical Public Affairsfunctions. Corporate Communication ––Internal Corporate Communication Internal functions. Product Communications Product CommunicationsData from this study will allow U.S. Data from this study will allow U.S.pharmaceutical companies to assess pharmaceutical companies to assess Corporate Social Responsibility Corporate Social Responsibilitythe efficiency of their Public Affairs the efficiency of their Public Affairs Alliance Management Alliance Managementfunctions relative to their peers. functions relative to their peers. Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 5Benchmark ClassData for this study was collected utilizing an online survey instrument. Seventeen respondents from15 organizations participated in this study. Best Practices, LLC’s research analysts consolidatedmultiple responses from within the same organizations. Note: Not all organizations completed thesurvey instrument for all of the designated Public Affairs work functions. Bayer HealthCare Merck Cephalon Novartis Eli Lilly Pfizer Genentech Sanofi-Aventis Genzyme Corp Solvay GlaxoSmithKline UCB Hoffmann-La Roche Wyeth MedImmune Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 6Benchmark Class SegmentationIn order to best represent the benchmark data collected, Best Practices, LLC will provide data viewsfor the “TBC (Total Benchmark Class)” and the “LPS (Large Pharma Segment)”. The criteria forinclusion in the LPS is global sales revenues of greater than U.S.$ 15 billion. Client defined segments(CDS) can also be produced - 5 or more companies must be selected - for customized segmentationcontact Best Practices, LLC. TBC - Total Benchmark Class LPS - Large Pharma Segment Bayer HealthCare Eli Lilly Cephalon GlaxoSmithKline Eli Lilly Hoffmann-La Roche Genentech Merck Genzyme Corp Novartis GlaxoSmithKline Pfizer Hoffmann-La Roche Sanofi-Aventis MedImmune Wyeth Merck Novartis Pfizer Sanofi-Aventis Solvay UCB Wyeth n = 17 n=8 Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 7Participant QualificationAs with all benchmark data, the positions and titles of the study participants are as important as thecomposition of the benchmark class. Some examples of study participants’ titles are: Please provide the following contact information – Title? COO, Corporate Affairs Deputy Director, Public Policy & Government Affairs Director, Corporate Public Affairs Regulatory Director, Government Affairs Senior Director, Government Affairs Senior Vice President, Corporate Affairs & Communications Senior Vice President, Corporate Communications Vice President, Public Affairs Vice President, Regulatory Policy & External Affairs Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 8Public Affairs: Structure and Reporting Relationships Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 9 Public Affairs Head – Scope of Responsibility Organizational composition of Public Affairs functions differs across study participants. The primary work functions that report to Public Affairs leaders are: Corporate Communications, Corporate Social Responsibility and Government Affairs. In your organization, which of the following work functions report to your Public Affairs Head? Total Benchmark Class 80% 80% 73% 73% 67% 60% Gove rnm e nt Corporate Corporate Product Corporate Social Alliance Affairs Com m unications Com m unications Com m unications Re s pons ibility M anage m e nt(n=15) – Exte rnal – Inte rnal Other: • Government reimbursement • Intl. Govt./Trade Relations • Multi Media • Pharmaceutical assistance programs • Anti-counterfeiting, Corporate Brand, Community Relations Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 10Public Affairs: Staffing Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 11FTE Allocation – Corporate Social ResponsibilityCorporate Social Responsibility: Management and communication of the organizations socialresponsibility initiatives. An FTE of 1.0 means that the person is equivalent to a full-time worker.Note: A person who works half-time is counted as 0.5 FTE. Include contractors. Exclude indirect oroutsourced employees.Corporate Social Responsibility: What is the total number of FTEs allocated to Public Affairs work functions? Corporate Social LPS - Large Pharma Segment TBC - Total Benchmark Class Responsibility FTE Data 75th Percentile (FTE) 5.0 5.0 Mean (FTE) 4.9 4.4 Median (FTE) 3.3 3.5 25th Percentile (FTE) 2.8 3.0 n= 8 13 Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 12Public Affairs: Investment Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 13Investment Allocation – Corporate SocialResponsibilityCorporate Social Responsibility: Management and communication of the organizations socialresponsibility initiatives. Budget is defined as: Total amount spent for internal labor (salaries andbenefits), outsourced labor (contractors and indirect employees), non-labor, systems (excluding one-time large capital costs), corporate allocations (e.g., overhead, depreciation, supplies, real estate),and all other costs. Please exclude Political Action Group contributions from the budget figure. Corporate Social Responsibility: Please indicate your budget allocations for Public Affairs work functions for the last fiscal year. Corporate Social Responsibility Spend ($US) LPS - Large Pharma Segment TBC - Total Benchmark Class Data 75th Percentile (U.S. Dollars) $3,440,250 $3,440,250 Mean (U.S. Dollars) $2,848,406 $2,848,406 Median (U.S. Dollars) $2,728,000 $2,728,000 25th Percentile (U.S. Dollars) $2,158,188 $2,158,188 n= 8 8 Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 14 Public Affairs:Consolidated Staffing and Investment Efficiency Ratios Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 15 Efficiency Ratios – Corporate Social Responsibility Budget per Budget as a Budget per FTE per U.S Percent of Budget Per FTE-Adjusted Percent of Budget per U.S. FTE per U.S Blockbuster Budget FTE for Total U.S. Brand Blockbuster Brand Brand Outsourced Outsourcing Revenue Brand LPS - Large Pharma Segment75th Percentile $1,275,000 $1,275,000 0.031% $270,313 $804,667 0.3 1.2 14% Mean $808,388 $790,079 0.027% $179,119 $699,492 0.3 1.0 11% Median $637,905 $609,661 0.025% $185,391 $760,875 0.2 0.9 7%25th Percentile $330,357 $296,845 0.016% $102,500 $431,638 0.1 0.6 7% n= 8 8 8 8 8 8 8 3 TBC - Total Benchmark Class75th Percentile $1,275,000 $1,200,000 0.031% $270,313 $804,667 0.4 1.6 14% Mean $808,388 $674,515 0.027% $179,119 $699,492 0.3 1.2 11% Median $637,905 $457,143 0.025% $185,391 $760,875 0.3 1.0 7%25th Percentile $330,357 $293,031 0.016% $102,500 $431,638 0.2 0.7 7% n= 8 8 8 8 8 13 11 3 The efficiency ratios provided above should be interpreted as broad based directional indicators that are reflective of the industry as a whole. Since no Corporate Social Responsibility “effectiveness” measures were collected in this study it is important to organizations to interpret these benchmarks relative to the performance of their Corporate Social Responsibility function. Resource and investment levels should correspond to performance. Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 16About Best Practices, LLC Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC
    • 17About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts workbased on the simple yet profound principle that organizations can chart acourse to superior economic performance by studying the best businesspractices, operating tactics and winning strategies of world-classcompanies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 (919) 403-0251 bestpractices@best-in-class.com www3.best-in-class.com Copyright© Best Practices®, LLC ® Public Affairs Benchmarking Study BESTPRACTICES, LLC