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Advocacy Excellence:
 Optimizing Group Structure &
          Operations




                        1
         Copyright © Best Practices®, LLC   BEST PRACTICES,
                                                          ®
                                                              LLC
Table of Contents

         Table of Contents                                          Continued

•Project Blueprint – pg. 3                           •Advocacy Group Services: Key Trends in
•Benchmark Class – pg. 4                             Service Levels and Approaches – pg. 35
•Key Insights – pg. 6
                                                     •Advocacy Roles and Responsibilities: Key
•Advocacy Models: Key Trends and
Drivers of Sub-Group Group Evolution –               Trends in Alliances Management – pg. 49
pg. 9                                                •Communicating The Value of Advocacy in
•Advocacy Group Models and                           a Global Bio-Pharma Company – pg. 55
Structures– pg. 20                                   •Contact Information – pg. 60
•Advocacy Group Staffing Benchmarks:
Key Trends In Resourcing Advocacy
Groups – pg. 27
                                          Page - 2
                              Copyright © Best Practices®, LLC            BEST PRACTICES,®
                                                                                             LLC
Optimizing Structure Involves Integrated Practices &
Approaches
There 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.

                             10. Assess    1. Realign to
                           Performance,    Support New                            “No institution can
                                Refine &   Corporate
                           Continuously    Goals,                                 possibly survive if it
            9. Optimize
                                Improve    Strategies    2. Fine-tune
            Learning to                                                           needs geniuses or
            Enhance                                      Internal Group
            Performance                                  Structure                supermen to manage it.
                                    Advocacy:                                     It must be organized in
      8. Manage /
     Coordinate Roles       Accelerated Evolution 3. Establish Service            such a way as to be
     for a Fully Integrated    To Make the New              Levels to Reflect
     Pharmaceutical                                      Priorities & Resources   able to get along under
      Network                    Structure Work
                                                      4. Integrate                a leadership composed
          7. Drive Long-Term                          Operations to
          Priorities & Respond                         Bridge BU’s,               of average human
           to Ad Hoc Issues      6. Refine 5. Use       Geographies &
                                    Talent Funding /       Sub-Groups
                                                                                  beings.”
                             Management Budgeting
                              Strategies & Process to                                 -Peter Drucker
                                  Systems Reaffirm
                                           Alignments

                                                       Page - 3
                                           Copyright © Best Practices®, LLC           BEST PRACTICES,   ®
                                                                                                            LLC
Advocacy Benchmark Research Participants
Participants in this benchmarking research included executive respondents at 11 leading
bio-pharmaceutical and healthcare companies.




                                                                     A Small
                                                                    Pharma Co.
                                             Page - 4
                                 Copyright © Best Practices®, LLC          BEST PRACTICES,
                                                                                         ®
                                                                                             LLC
Most Participants Hold Titles of Director or Above
Research participants included Executive Directors, Medical Executives, Directors and
Product Managers. More than 80% of benchmark partners were directors or above – and
most worked directly in Advocacy groups or functions.



               TITLE                                  GROUP OR FUNCTION
    Executive Director        Patient Advocacy Relations
    Executive Director        Advocacy
    Senior Director           Global Advocacy and Professional Relations / Corporate Affairs
    Director                  Professional and Advocacy Relations
    Director                  Advocacy
    Director                  Patient Services & Professional Relations / Medical Affairs
    Director                  Global Project Operations
    Director of Advocacy      Advocacy Relations / Corporate Communications
    Associate Director        Patient Advocacy
    Senior Product Manager    Marketing
    Medical Executive         Medical Affairs


                                               Page - 5
                                   Copyright © Best Practices®, LLC          BEST PRACTICES,   ®
                                                                                                   LLC
Therapeutic Area Focus Is Main Driver of Advocacy
Structures
Advocacy group structures commonly follow a company’s main therapeutic areas. For
larger companies that evolve into business unit structures, Advocacy continues to follow
dominant and emerging therapeutic areas but broadens its coverage to include groups and
issues in important geographic locations and across key product groups.

              Q2. Advocacy Sub-Group Structure: Note all functional factors describing how your
                                   Advocacy organization is designed.


         Therapeutic Area
                                                             55%
              Focus

              Product Focus                        36%
                                                                                       Other Comments:
                                                                                      Other Comments:
                                                                      • •“We have aa role to support the advocacy
              Business Unit                                               “We have role to support the advocacy
                                             27%
                 Focus                                                    capabilities of affiliates in geographies
                                                                         capabilities of affiliates in geographies
                                                                          outside the U.S.”
               Matrix Model                  27%                         outside the U.S.”

                                                                      • •“All of our advocacy functions are
                                                                          “All of our advocacy functions are
                      Other            18%
                                                                          organized to work on corporate objectives
                                                                         organized to work on corporate objectives
                                                                          that impact the environment in which our
              Project Focus       9%                                     that impact the environment in which our
                                                                          products are sold.”
                                                                         products are sold.”

                                 % of Companies


     (n=11)
                                                     Page - 6
                                         Copyright © Best Practices®, LLC                   BEST PRACTICES,       ®
                                                                                                                      LLC
Advocacy Function Is Only Rarely Outsourced
Clearly, organizations prefer to keep Advocacy as an in-house function, both on a global
basis and in the U.S. Only one company outsources any of its Advocacy staff, and the
scope of outsourcing is limited to 5-10% of FTEs.

             Q10. Internal FTE % Vs. Outsourced FTE %: What percentage of your Advocacy
                                 employees are internal or outsourced?
                            Some
                         Outsourcer
                        Employed, 12%




                                                                 All Company
                                                                Employed, 88%
                                                                   % of Companies
    (n=8)
                                                 Page - 7
                                     Copyright © Best Practices®, LLC               BEST PRACTICES,
                                                                                                  ®
                                                                                                      LLC
Case Profile: Find Common Ground to Build Patient
Advocacy Partnerships– Even When Interests Diverge
Develop an advocacy approach that sets out to spot common ground between the
commercial organization and the Advocacy group. Great divides may exist. Partnerships are
built on mutually beneficial common ground.

                                              COMMON
 “You may be poles apart in terms
  “You may be poles apart in terms            GROUND
 of commercial point of view and
  of commercial point of view and
 the activism point of you − but
  the activism point of you − but           Battling Stigma &
 there is some common ground. So
  there is some common ground. So            Discrimination
 where is the common ground ?. . .. .
  where is the common ground ?.
 You’re going to have to find what
  You’re going to have to find what            Accessing
 is this middle ground that provides
  is this middle ground that provides       Medicine & Health
 an area for compromise. IfIfnothing
  an area for compromise. nothing
                                                Services
 else an area where you can sit
  else an area where you can sit
 down and have an informed                        Serving
  down and have an informed                  Stigmatized Sub-
 objective debate and discussion
  objective debate and discussion               Populations
 around what is at the heart of the
  around what is at the heart of the
 concerns from both perspectives.”
  concerns from both perspectives.”            Conducting
           - -Head of HIV Franchise &
               Head of HIV Franchise &         Research On
                            Advocacy           Good Health
                             Advocacy             Policy

                                                     Page - 8
                                         Copyright © Best Practices®, LLC   BEST PRACTICES,
                                                                                          ®
                                                                                              LLC
About Best Practices, LLC



     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
                       www.best-in-class.com
                         Telephone: 919-403-0251

                                     Page - 9
                         Copyright © Best Practices®, LLC   BEST PRACTICES,
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                                                                              LLC

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Advocacy Excellence: Optimizing Group Structure & Operations Report Summary

  • 1. Advocacy Excellence: Optimizing Group Structure & Operations 1 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 2. Table of Contents Table of Contents Continued •Project Blueprint – pg. 3 •Advocacy Group Services: Key Trends in •Benchmark Class – pg. 4 Service Levels and Approaches – pg. 35 •Key Insights – pg. 6 •Advocacy Roles and Responsibilities: Key •Advocacy Models: Key Trends and Drivers of Sub-Group Group Evolution – Trends in Alliances Management – pg. 49 pg. 9 •Communicating The Value of Advocacy in •Advocacy Group Models and a Global Bio-Pharma Company – pg. 55 Structures– pg. 20 •Contact Information – pg. 60 •Advocacy Group Staffing Benchmarks: Key Trends In Resourcing Advocacy Groups – pg. 27 Page - 2 Copyright © Best Practices®, LLC BEST PRACTICES,® LLC
  • 3. Optimizing Structure Involves Integrated Practices & Approaches There 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. 10. Assess 1. Realign to Performance, Support New “No institution can Refine & Corporate Continuously Goals, possibly survive if it 9. Optimize Improve Strategies 2. Fine-tune Learning to needs geniuses or Enhance Internal Group Performance Structure supermen to manage it. Advocacy: It must be organized in 8. Manage / Coordinate Roles Accelerated Evolution 3. Establish Service such a way as to be for a Fully Integrated To Make the New Levels to Reflect Pharmaceutical Priorities & Resources able to get along under Network Structure Work 4. Integrate a leadership composed 7. Drive Long-Term Operations to Priorities & Respond Bridge BU’s, of average human to Ad Hoc Issues 6. Refine 5. Use Geographies & Talent Funding / Sub-Groups beings.” Management Budgeting Strategies & Process to -Peter Drucker Systems Reaffirm Alignments Page - 3 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 4. Advocacy Benchmark Research Participants Participants in this benchmarking research included executive respondents at 11 leading bio-pharmaceutical and healthcare companies. A Small Pharma Co. Page - 4 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 5. Most Participants Hold Titles of Director or Above Research participants included Executive Directors, Medical Executives, Directors and Product Managers. More than 80% of benchmark partners were directors or above – and most worked directly in Advocacy groups or functions. TITLE GROUP OR FUNCTION Executive Director Patient Advocacy Relations Executive Director Advocacy Senior Director Global Advocacy and Professional Relations / Corporate Affairs Director Professional and Advocacy Relations Director Advocacy Director Patient Services & Professional Relations / Medical Affairs Director Global Project Operations Director of Advocacy Advocacy Relations / Corporate Communications Associate Director Patient Advocacy Senior Product Manager Marketing Medical Executive Medical Affairs Page - 5 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 6. Therapeutic Area Focus Is Main Driver of Advocacy Structures Advocacy group structures commonly follow a company’s main therapeutic areas. For larger companies that evolve into business unit structures, Advocacy continues to follow dominant and emerging therapeutic areas but broadens its coverage to include groups and issues in important geographic locations and across key product groups. Q2. Advocacy Sub-Group Structure: Note all functional factors describing how your Advocacy organization is designed. Therapeutic Area 55% Focus Product Focus 36% Other Comments: Other Comments: • •“We have aa role to support the advocacy Business Unit “We have role to support the advocacy 27% Focus capabilities of affiliates in geographies capabilities of affiliates in geographies outside the U.S.” Matrix Model 27% outside the U.S.” • •“All of our advocacy functions are “All of our advocacy functions are Other 18% organized to work on corporate objectives organized to work on corporate objectives that impact the environment in which our Project Focus 9% that impact the environment in which our products are sold.” products are sold.” % of Companies (n=11) Page - 6 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 7. Advocacy Function Is Only Rarely Outsourced Clearly, organizations prefer to keep Advocacy as an in-house function, both on a global basis and in the U.S. Only one company outsources any of its Advocacy staff, and the scope of outsourcing is limited to 5-10% of FTEs. Q10. Internal FTE % Vs. Outsourced FTE %: What percentage of your Advocacy employees are internal or outsourced? Some Outsourcer Employed, 12% All Company Employed, 88% % of Companies (n=8) Page - 7 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 8. Case Profile: Find Common Ground to Build Patient Advocacy Partnerships– Even When Interests Diverge Develop an advocacy approach that sets out to spot common ground between the commercial organization and the Advocacy group. Great divides may exist. Partnerships are built on mutually beneficial common ground. COMMON “You may be poles apart in terms “You may be poles apart in terms GROUND of commercial point of view and of commercial point of view and the activism point of you − but the activism point of you − but Battling Stigma & there is some common ground. So there is some common ground. So Discrimination where is the common ground ?. . .. . where is the common ground ?. You’re going to have to find what You’re going to have to find what Accessing is this middle ground that provides is this middle ground that provides Medicine & Health an area for compromise. IfIfnothing an area for compromise. nothing Services else an area where you can sit else an area where you can sit down and have an informed Serving down and have an informed Stigmatized Sub- objective debate and discussion objective debate and discussion Populations around what is at the heart of the around what is at the heart of the concerns from both perspectives.” concerns from both perspectives.” Conducting - -Head of HIV Franchise & Head of HIV Franchise & Research On Advocacy Good Health Advocacy Policy Page - 8 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 9. About Best Practices, LLC 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 www.best-in-class.com Telephone: 919-403-0251 Page - 9 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC