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BESTPRACTICES,
®
LLC
1
Copyright © Best Practices , LLC
Corporate Affairs Excellence:
Optimizing Group Structure & Operations
BESTPRACTICES,
®
LLC
Page - 2
Copyright © Best Practices , LLC
Table of Contents
•Project Blueprint – pg. 3
•Executive Summary: Benchmark Insights &
Research Participants– pg. 5
•Commercial Structures: Trends That Drive
Business Unit Structures & Evolution of
Corporate Affairs – pg. 11
•Novartis Case Study: Articulating Business
Units to Express Growth &Entrepreneurial
Spirit – pg. 17
TOC Continued
•Corporate Affairs Group Structures: Key
Trends & Drivers of Sub-group Evolution –
pg. 28
•Corporate Affairs Group Models &
Structures – pg. 32
•Corporate Affairs Group Services: Key
Trends In Service Levels & Priorities –
pg. 45
•Contact Information – pg. 50
Table of Contents
BESTPRACTICES,
®
LLC
Page - 3
Copyright © 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.
Corporate Affairs:
Accelerated Evolution
To Make the New
Structure Work
1. Realign to
Support New
Corporate
Goals,
Strategies 2. Fine-tune
Corporate
Affairs Sub-group
Structures
3. Establish Service
Levels to Reflect
Priorities & Resources
7. Drive Long-Term
Priorities & Respond
to Ad Hoc Issues
4. Integrate
Operations to
Bridge BUs,
Geographies &
Sub-Groups
5. Use
Funding /
Budgeting
Process to
Reaffirm
Alignments
8. Manage /
Coordinate Roles
for a Fully Integrated
Pharmaceutical
Network
10. Assess
Performance,
Refine &
Continuously
Improve
6. Refine
Talent
Management
Strategies &
Systems to Fit
New Structure
9. Optimize
Learning to
Enhance
Performance
“No institution can
possibly survive if it
needs geniuses or
supermen to manage it.
It must be organized in
such a way as to be
able to get along under
a leadership composed
of average human
beings.”
-Peter Drucker
BESTPRACTICES,
®
LLC
Page - 4
Copyright © Best Practices , LLC
1. Abbott Laboratories
2. Amgen
3. Astellas Pharma, Inc.
4. Astra Zeneca
5. Boehringer Ingelheim
6. ConvaTec
7. DRI
8. Eisai, Inc
9. Eli Lilly and Company
10. Emirates
11. Genentech
12. Genomic Health
13. Genzyme
14. GlaxoSmithKline
15. Intas Pharma
16. MDS Nordion
17. Medtronic
18. Merck Sharp Dohme Turkey
19. MetLife
20. MSD
21. National Grid
22. Novo Nordisk
23. Pfizer
24. Purdue Pharma LP
25. Roche Diagnostics Diabetes Care
26. Solvay
27. Stiefel, a GSK Company
28. UCB
29. W. R. Grace & Co.
Copyright © Best Practices®, LLC
Corporate Affairs Benchmark Research Participants
Participants in this benchmarking research included 28 corporate affairs executives
and managers at 27 leading bio-pharmaceutical, healthcare and non-healthcare
companies. Interview participants are underlined.
BESTPRACTICES,
®
LLC
Page - 5
Copyright © Best Practices , LLC
Participants’ Job Titles Typically Director or Above
Research participants included Vice Presidents, Executive Directors, Medical
Executives, Directors and Managers. More than 69% of benchmark partners are
directors and VPs and 31% are managers. All work directly or indirectly in Corporate
Affairs functions.
JOB TITLE JOB TITLE
Assistant Director Government Affairs Manager
Associate Director Manager
Copy and Production Officer Manager
Director Manager
Director Manager
Director Manager
Director Manager,
Director Medical Executive
Director Project Manager
Director Senior Director
Director of Advocacy Sr. Director
Director, Communications Sr. Manager
European Director Vice President
Executive Director Vice President
Executive Director
BESTPRACTICES,
®
LLC
Page - 6
Copyright © Best Practices , LLC
Functional Perspectives Circumscribe Corporate Affairs
Benchmark partners reflect functional experience that interacts directly or indirectly
with the Corporate Affairs function. Since Corporate Affairs resides in different places
across companies and sectors, diverse functions from Government Affairs, Corporate
Affairs, Communications, Medical Affairs and Advocacy participated in this study.
GROUP OR FUNCTION GROUP OR FUNCTION
Advocacy Relations / Corporate Communications Healthcare Alliance Development
Communications Marketing Communications
Communications and Government Affairs Medical Affairs
Communications, Brand, Interactive, Creative Medical Affairs
Corporate Affairs Medical Affairs
Corporate Communications Multi Channel Communications / Marketing
Corporate Communications Patient Advocacy
Corporate Communications Patient Advocacy Relations
CRM and Customer Experience Patient Services and Professional Relations
Customer Marketing Professional Relations, Public Affairs and Advocacy
General Medicine Public Policy and Advocacy
Global Advocacy Development Sales and Marketing Communication
Global Employee Communication and Brand Stakeholder Management
Government Affairs State Government Affairs
Government Strategy and Relations
BESTPRACTICES,
®
LLC
Page - 7
Copyright © Best Practices , LLC
Hybrid Structure Most Common of Approaches
The multi-industry study group reflected diverse approaches to corporate commercial
structure. 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 using
some form of decentralization.
Q4. Commercial Structure: Note the approach best describing your company's commercial
operations structure
(n=28)
Commercial Operating Structure
20%
17%
10%
30%
23%
Hybrid
Centralized
Decentralized by Product
Families / Divisions
Decentralized by
Geography
Decentralized by
Therapeutic Area
Percentage with Each Operating Structure
47% reflect
some form of
decentralization
BESTPRACTICES,
®
LLC
Page - 8
Copyright © Best Practices , LLC
Corporate Affairs Group Structure – Mid-Cap Pharma
Hybrid Approach - A
Here, Corporate Affairs reports to the General Counsel with centralization at headquarters
and staff decentralization to product families with different regional headquarters. Business
units organized by therapeutic areas, product families, geography, product lifecycle and
customer segment. Corporate Affairs supports three blockbusters and 10 smaller products.
BESTPRACTICES,
®
LLC
Page - 9
Copyright © 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
About Best Practices, LLC
Link for Report: Corporate Affairs Excellence

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Corporate Affairs Excellence: Optimizing Group Structure & Operations Report Summary

  • 1. BESTPRACTICES, ® LLC 1 Copyright © Best Practices , LLC Corporate Affairs Excellence: Optimizing Group Structure & Operations
  • 2. BESTPRACTICES, ® LLC Page - 2 Copyright © Best Practices , LLC Table of Contents •Project Blueprint – pg. 3 •Executive Summary: Benchmark Insights & Research Participants– pg. 5 •Commercial Structures: Trends That Drive Business Unit Structures & Evolution of Corporate Affairs – pg. 11 •Novartis Case Study: Articulating Business Units to Express Growth &Entrepreneurial Spirit – pg. 17 TOC Continued •Corporate Affairs Group Structures: Key Trends & Drivers of Sub-group Evolution – pg. 28 •Corporate Affairs Group Models & Structures – pg. 32 •Corporate Affairs Group Services: Key Trends In Service Levels & Priorities – pg. 45 •Contact Information – pg. 50 Table of Contents
  • 3. BESTPRACTICES, ® LLC Page - 3 Copyright © 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. Corporate Affairs: Accelerated Evolution To Make the New Structure Work 1. Realign to Support New Corporate Goals, Strategies 2. Fine-tune Corporate Affairs Sub-group Structures 3. Establish Service Levels to Reflect Priorities & Resources 7. Drive Long-Term Priorities & Respond to Ad Hoc Issues 4. Integrate Operations to Bridge BUs, Geographies & Sub-Groups 5. Use Funding / Budgeting Process to Reaffirm Alignments 8. Manage / Coordinate Roles for a Fully Integrated Pharmaceutical Network 10. Assess Performance, Refine & Continuously Improve 6. Refine Talent Management Strategies & Systems to Fit New Structure 9. Optimize Learning to Enhance Performance “No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings.” -Peter Drucker
  • 4. BESTPRACTICES, ® LLC Page - 4 Copyright © Best Practices , LLC 1. Abbott Laboratories 2. Amgen 3. Astellas Pharma, Inc. 4. Astra Zeneca 5. Boehringer Ingelheim 6. ConvaTec 7. DRI 8. Eisai, Inc 9. Eli Lilly and Company 10. Emirates 11. Genentech 12. Genomic Health 13. Genzyme 14. GlaxoSmithKline 15. Intas Pharma 16. MDS Nordion 17. Medtronic 18. Merck Sharp Dohme Turkey 19. MetLife 20. MSD 21. National Grid 22. Novo Nordisk 23. Pfizer 24. Purdue Pharma LP 25. Roche Diagnostics Diabetes Care 26. Solvay 27. Stiefel, a GSK Company 28. UCB 29. W. R. Grace & Co. Copyright © Best Practices®, LLC Corporate Affairs Benchmark Research Participants Participants in this benchmarking research included 28 corporate affairs executives and managers at 27 leading bio-pharmaceutical, healthcare and non-healthcare companies. Interview participants are underlined.
  • 5. BESTPRACTICES, ® LLC Page - 5 Copyright © Best Practices , LLC Participants’ Job Titles Typically Director or Above Research participants included Vice Presidents, Executive Directors, Medical Executives, Directors and Managers. More than 69% of benchmark partners are directors and VPs and 31% are managers. All work directly or indirectly in Corporate Affairs functions. JOB TITLE JOB TITLE Assistant Director Government Affairs Manager Associate Director Manager Copy and Production Officer Manager Director Manager Director Manager Director Manager Director Manager, Director Medical Executive Director Project Manager Director Senior Director Director of Advocacy Sr. Director Director, Communications Sr. Manager European Director Vice President Executive Director Vice President Executive Director
  • 6. BESTPRACTICES, ® LLC Page - 6 Copyright © Best Practices , LLC Functional Perspectives Circumscribe Corporate Affairs Benchmark partners reflect functional experience that interacts directly or indirectly with the Corporate Affairs function. Since Corporate Affairs resides in different places across companies and sectors, diverse functions from Government Affairs, Corporate Affairs, Communications, Medical Affairs and Advocacy participated in this study. GROUP OR FUNCTION GROUP OR FUNCTION Advocacy Relations / Corporate Communications Healthcare Alliance Development Communications Marketing Communications Communications and Government Affairs Medical Affairs Communications, Brand, Interactive, Creative Medical Affairs Corporate Affairs Medical Affairs Corporate Communications Multi Channel Communications / Marketing Corporate Communications Patient Advocacy Corporate Communications Patient Advocacy Relations CRM and Customer Experience Patient Services and Professional Relations Customer Marketing Professional Relations, Public Affairs and Advocacy General Medicine Public Policy and Advocacy Global Advocacy Development Sales and Marketing Communication Global Employee Communication and Brand Stakeholder Management Government Affairs State Government Affairs Government Strategy and Relations
  • 7. BESTPRACTICES, ® LLC Page - 7 Copyright © Best Practices , LLC Hybrid Structure Most Common of Approaches The multi-industry study group reflected diverse approaches to corporate commercial structure. 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 using some form of decentralization. Q4. Commercial Structure: Note the approach best describing your company's commercial operations structure (n=28) Commercial Operating Structure 20% 17% 10% 30% 23% Hybrid Centralized Decentralized by Product Families / Divisions Decentralized by Geography Decentralized by Therapeutic Area Percentage with Each Operating Structure 47% reflect some form of decentralization
  • 8. BESTPRACTICES, ® LLC Page - 8 Copyright © Best Practices , LLC Corporate Affairs Group Structure – Mid-Cap Pharma Hybrid Approach - A Here, Corporate Affairs reports to the General Counsel with centralization at headquarters and staff decentralization to product families with different regional headquarters. Business units organized by therapeutic areas, product families, geography, product lifecycle and customer segment. Corporate Affairs supports three blockbusters and 10 smaller products.
  • 9. BESTPRACTICES, ® LLC Page - 9 Copyright © 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 About Best Practices, LLC Link for Report: Corporate Affairs Excellence