Corporate Affairs Excellence: Optimizing Group Structure & Operations Report Summary


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With its influence over key external and internal activities, Corporate Affairs – also known as Public Affairs - is an important function for organizations that must interact with external stakeholders and governmental bodies. Groups that often reside in Corporate Affairs include Policy, Government Affairs, Internal/External Communications and Patient Advocacy. This research project provides an overview of structural approaches to how Corporate Affairs groups are organized and factors influencing structural approaches. The study also includes a number of examples of different organizational models for Corporate Affairs across organizations large and small. Executives in Corporate Affairs can use this research to compare their structure and organizational approach with that of leading organizations.

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Corporate Affairs Excellence: Optimizing Group Structure & Operations Report Summary

  1. 1. BESTPRACTICES,®LLC1Copyright © Best Practices , LLCCorporate Affairs Excellence:Optimizing Group Structure & Operations
  2. 2. BESTPRACTICES,®LLCPage - 2Copyright © Best Practices , LLCTable of Contents•Project Blueprint – pg. 3•Executive Summary: Benchmark Insights &Research Participants– pg. 5•Commercial Structures: Trends That DriveBusiness Unit Structures & Evolution ofCorporate Affairs – pg. 11•Novartis Case Study: Articulating BusinessUnits to Express Growth &EntrepreneurialSpirit – pg. 17TOC Continued•Corporate Affairs Group Structures: KeyTrends & Drivers of Sub-group Evolution –pg. 28•Corporate Affairs Group Models &Structures – pg. 32•Corporate Affairs Group Services: KeyTrends In Service Levels & Priorities –pg. 45•Contact Information – pg. 50Table of Contents
  3. 3. BESTPRACTICES,®LLCPage - 3Copyright © Best Practices , LLCOptimizing Structure Involves Integrated Practices & ApproachesThere are no perfect structures. “Form follows function.” New market pressures andlifecycle events compel structures to evolve. Optimizing structure reflects the integratedmanagement of units, people, process, technology, communications, incentives and othermanagement factors.Corporate Affairs:Accelerated EvolutionTo Make the NewStructure Work1. Realign toSupport NewCorporateGoals,Strategies 2. Fine-tuneCorporateAffairs Sub-groupStructures3. Establish ServiceLevels to ReflectPriorities & Resources7. Drive Long-TermPriorities & Respondto Ad Hoc Issues4. IntegrateOperations toBridge BUs,Geographies &Sub-Groups5. UseFunding /BudgetingProcess toReaffirmAlignments8. Manage /Coordinate Rolesfor a Fully IntegratedPharmaceuticalNetwork10. AssessPerformance,Refine &ContinuouslyImprove6. RefineTalentManagementStrategies &Systems to FitNew Structure9. OptimizeLearning toEnhancePerformance“No institution canpossibly survive if itneeds geniuses orsupermen to manage it.It must be organized insuch a way as to beable to get along undera leadership composedof average humanbeings.”-Peter Drucker
  4. 4. BESTPRACTICES,®LLCPage - 4Copyright © Best Practices , LLC1. 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.Copyright © Best Practices®, LLCCorporate Affairs Benchmark Research ParticipantsParticipants in this benchmarking research included 28 corporate affairs executivesand managers at 27 leading bio-pharmaceutical, healthcare and non-healthcarecompanies. Interview participants are underlined.
  5. 5. BESTPRACTICES,®LLCPage - 5Copyright © Best Practices , LLCParticipants’ Job Titles Typically Director or AboveResearch participants included Vice Presidents, Executive Directors, MedicalExecutives, Directors and Managers. More than 69% of benchmark partners aredirectors and VPs and 31% are managers. All work directly or indirectly in CorporateAffairs functions.JOB TITLE JOB TITLEAssistant Director Government Affairs ManagerAssociate Director ManagerCopy and Production Officer ManagerDirector ManagerDirector ManagerDirector ManagerDirector Manager,Director Medical ExecutiveDirector Project ManagerDirector Senior DirectorDirector of Advocacy Sr. DirectorDirector, Communications Sr. ManagerEuropean Director Vice PresidentExecutive Director Vice PresidentExecutive Director
  6. 6. BESTPRACTICES,®LLCPage - 6Copyright © Best Practices , LLCFunctional Perspectives Circumscribe Corporate AffairsBenchmark partners reflect functional experience that interacts directly or indirectlywith the Corporate Affairs function. Since Corporate Affairs resides in different placesacross companies and sectors, diverse functions from Government Affairs, CorporateAffairs, Communications, Medical Affairs and Advocacy participated in this study.GROUP OR FUNCTION GROUP OR FUNCTIONAdvocacy Relations / Corporate Communications Healthcare Alliance DevelopmentCommunications Marketing CommunicationsCommunications and Government Affairs Medical AffairsCommunications, Brand, Interactive, Creative Medical AffairsCorporate Affairs Medical AffairsCorporate Communications Multi Channel Communications / MarketingCorporate Communications Patient AdvocacyCorporate Communications Patient Advocacy RelationsCRM and Customer Experience Patient Services and Professional RelationsCustomer Marketing Professional Relations, Public Affairs and AdvocacyGeneral Medicine Public Policy and AdvocacyGlobal Advocacy Development Sales and Marketing CommunicationGlobal Employee Communication and Brand Stakeholder ManagementGovernment Affairs State Government AffairsGovernment Strategy and Relations
  7. 7. BESTPRACTICES,®LLCPage - 7Copyright © Best Practices , LLCHybrid Structure Most Common of ApproachesThe multi-industry study group reflected diverse approaches to corporate commercialstructure. 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 usingsome form of decentralization.Q4. Commercial Structure: Note the approach best describing your companys commercialoperations structure(n=28)Commercial Operating Structure20%17%10%30%23%HybridCentralizedDecentralized by ProductFamilies / DivisionsDecentralized byGeographyDecentralized byTherapeutic AreaPercentage with Each Operating Structure47% reflectsome form ofdecentralization
  8. 8. BESTPRACTICES,®LLCPage - 8Copyright © Best Practices , LLCCorporate Affairs Group Structure – Mid-Cap PharmaHybrid Approach - AHere, Corporate Affairs reports to the General Counsel with centralization at headquartersand staff decentralization to product families with different regional headquarters. Businessunits organized by therapeutic areas, product families, geography, product lifecycle andcustomer segment. Corporate Affairs supports three blockbusters and 10 smaller products.
  9. 9. BESTPRACTICES,®LLCPage - 9Copyright © Best Practices , LLCBest Practices, LLC is a research and consulting firm thatconducts work based on the simple yet profound principle thatorganizations can chart a course to superior economicperformance by studying the best business practices, operatingtactics and winning strategies of world-class companiesBest Practices, LLC6350 Quadrangle Drive, Suite 200,Chapel Hill, NC 919-403-0251About Best Practices, LLCLink for Report: Corporate Affairs Excellence