Press Release
Top Pharma Execs Discuss Regionalization, Outsourcing Trends, Learn “How Other Companies Do ‘It”® at TGaS® Advisors Operations Forum
EAST NORRITON, PENN., October 1, 2008
“Back to the future” regionalization plans and trends in outsourcing were two of the hot issues discussed by senior-level pharmaceutical commercial operations executives at an invitation-only forum convened by TGaS® Advisors, a leading benchmark and advisory services firm in pharmaceutical commercial operations. The day-long forum’s theme was “The Current and Future State of Commercial Operations.” Held September 24th in Chicago, the forum is part of an ongoing series designed to bring together commercial operations decision-makers to exchange ideas on issues that impact the industry and learn “How other pharmaceutical companies do ‘it’”.®
Facilitated by TGaS Advisors Partners Stephen E. Gerard and V. James Mercante, the forum featured senior leaders from a number of leading pharma companies, with large, mid-tier and specialty companies represented. Forum attendees, all TGaS Advisors clients, participate in the firm’s confidential collaborative benchmarks.
Regionalization: Back to the Future
“Flexibility, not autonomy,” was the mantra on regionalization. Regional business units were all the rage 10-15 years ago in an attempt to make customer operations more efficient and less hierarchical. The unintended results of regionalization, however, were decisions made without the necessary supporting information, analytics and appropriate regional guidelines. Although the rationale is to get closer to customers, the current move to regionalize carries with it the added complexity of operating in an environment where the majority of customers are in increasingly nationally controlled managed care categories.
An active discussion took place on the pros and cons of regionalization in today’s environment, and an on-the-spot survey found that three of the seven companies were considering a regional business unit model. A number of advocates suggested that companies view the U.S. as similar to Europe – a series of regions, each with a “general manager” empowered to some degree on how best to operate regionally. Marketing messages and support information would continue to come from the top, giving regions flexibility to adapt in certain areas, but not the autonomy for wholesale changes.
Outsourcing: Flexibility as the Business Model of the Future
Companies are reviewing their outsourcing and offshoring options in Operations, as India becomes more sophisticated and technologically adept. The group discussed the fact that the cost/benefit ratio currently being enjoyed by India may change in favor of other countries in the future. Many executives concurred that flexibility is the business model of the future. In order to remain nimble, companies must be able to scale up or scale down quickly and will be willing to pay more to do so. Of the seven companies represented, three now use a contract sales force for at least a portion of the total field force.
This trend has serious implications for hiring and skill sets. Where companies once needed analysts, for example, they now look for people who can manage outsourced analytic services, a different skill.
Several observations also emerged from group discussions and on-the-spot tallies. More in-depth information on what these executives thought about budget allocations, areas that provide strategic value to operations and incentive compensation management. Click here to view.
Asked their views of the forum, one participant summed it up for the group: “We particularly enjoyed the interaction with our peers and the discussion of real-time issues. One of the most important benefits was the opportunity to learn from other Operations experts.”
Gerard said, “We provide operations executives with a rare opportunity to step back from the day-to-day and gain a macro ‘outside-in’ perspective on operational issues. The forum creates a community of senior decision-makers who can speak the same language, share insights and help each other solve common problems. This adds value to their respective companies and strengthens their ability to make the right decisions for their companies.”
TGaS Advisors currently provides operational benchmarking in sales operations (SOPs), sales leadership; managed markets (MMOPs); marketing sciences (MSOPs), marketing operations (MOPs), Internet (iMOPs) and relationship marketing (RMOPs); and compliance. Additional benchmarks are developed in response to client needs.
About TGaS® Advisors LLC
TGaS Advisors, ranked ninth among health-related companies by the Inc. 500, is the leader in benchmarking and advisory services to the pharmaceutical and biopharmaceutical industry. The TGaS Advisors roster includes the majority of the top 50 pharmaceutical companies with operations in the U.S. market. The firm’s benchmarking and advisory suite of solutions, PharmaStance®, provides clients with a way to measure where they stand with respect to their operations and answers the question, “How do other pharmaceutical companies do ‘it’?” TGaS Advisors is based in East Norriton, Pennsylvania. To learn more, visit www.tgas.com.
For more information about this event, please contact Gary McWalters gmcwalters@tgas.com
- Other 2008:
- Operational Challenges, Closed Loop Marketing, Sales Reporting are Key Topics for Pharma Operations Execs at TGaS Advisors First West Coast Forum
- “Turning Prophets into Strategists and Leaders” Seen as Opportunity for Market Research; Theme of Pharma Market Research Group Presentation
- Record Number of Pharma Operations Leaders Share Challenges, Solutions at Four TGaS Advisors Forums
- TGaS Advisors Named to Philadelphia 100®, Ranked 18th Among Region’s Fastest Growing Privately Held Companies
- Sharon Patent Appointed Director, Marketing Sciences Operations Practices, at TGaS Advisors, Adding New Dimension to Analytics Capabilities
- TGaS Advisors Launches Internet Performance Benchmark
- TGaS Advisors’ Gerard Moderates Featured Panel at CBI Pharma Leadership Summit on Impact of Innovation on Sales Operations
- TGaS Advisors’ Castello Offers Advice on Managing Changes in Pharma Sales Compensation Plans
- TGaS Advisors Named to 2008 Inc. 500
- TGaS Advisors Leader Steve Gerard Named One of “100 Most Inspiring People” by PharmaVoice Magazine
- TGaS Advisors Launches Organization and Career Guide Benchmark for Pharma Sales Operations
- TGaS Advisors Appoints James P. Castello Director, Management Advisor
- TGaS Advisors Named as Finalists In 2008 American Business Awards
- TGaS Advisors Hires Brian Bamberger to Spearhead Managed Markets Benchmarks
- Pharma Marketing Sciences Execs Learn “How Other Companies Do It” at TGaS Advisors Client Forum
- TGaS Advisors’ Wojcik Analyzes Incentive Compensation Issues at Pharma Sales Force Performance Conference
- TGaS Advisors Expands Executive Ranks to Accommodate Business Growth; Pharma Veteran John P. Carro Joins as Vice President, Management Advisor
- TGaS Advisors TGaS Advisors Creates New Position to Accommodate Business Growth; Pharma Veteran Tom Bang Joins as Executive in Residence
- TGaS Advisors Creates New Position; Pharma Veteran Gary McWalters Joins as Director of Marketing and Business Development