careers and recruitment
Profiling the reform-era life sciences executive John McLean Healthcare’s reform era is here, requiring executives in the life sciences industry to think differently about their skill sets and capabilities.
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ife sciences companies are being buffeted by government and regulatory forces beyond their control. While the Affordable Care Act and market-driven healthcare transformations in the United States get most of the attention, national health systems across the globe are reconfiguring themselves, shifting from volume to value and becoming more patientcentric and outcome-oriented. Regulatory agencies are revising their practices and policies accordingly. This is the reform era in healthcare. The central issue for drug, device and diagnostics companies is no longer whether a product can simply gain approval but whether it can achieve a significant and, more importantly, stable presence in and across key markets in light of uncertain government reimbursement and payor-purchasing environments. Our industry has been speculating about the impacts of healthcare reform upon the marketplace for some time, and is just now beginning to encounter this brave new world. More than ever, as healthcare goes so goes the life sciences industry. Life sciences CEOs lose as much sleep over healthcare and regulatory issues as they do over competitors, consumers, economic woes and other concerns1. Navigating reform in its various manifestations and adjusting commercial strategies accordingly has become the primary preoccupation of life sciences executives, particularly those in pharma. When pressed, executives admit that they have dealt with reform inconsistently to date, and reactively rather than strategically2. A new type of leader? Life sciences companies are striving to get ahead of the reform curve to gain competitive advantage—by, for example, taking the lead John McLean is with the executive search firm Witt/Kieffer, Oak Brook, Illinois, USA. e-mail: [email protected]
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on comparative effectiveness research and evidence-based clinical modeling. They are working to break down traditional silos within their organizations to foster collaboration between experts throughout all phases of product innovation, development and marketing. They are beefing up their regulatory and quality teams and, as much as possible, forging more collaborative relationships with regulators to stay abreast of current trends and mandates.
As life sciences companies reorient themselves strategically, they must also re-imagine their leadership template. As life sciences companies reorient themselves strategically, they must also re-imagine their leadership template. The idea of what a ‘successful’ C-suite or other executive should be is changing. Today’s life sciences leaders must be more broad-minded and multidimensional than in the past—much more aware of how their work and decisions relate to those of others and influence long-term company outcomes and direction. All executives are being asked to be more strategic, even within ‘nonstrategic’ areas such as quality assurance and control, regulation, human resources or finance. Meanwhile, even those executives in research and development and other technical and scientific domains are expected to have exceptional interpersonal skills, executive presence and the ability to truly lead and motivate the people around them. These broadened expectations for future industry leaders are illustrated by the fact that management training and academic programs are beginning to preach a more holistic approach to life sciences leadership. Take,
for example, the following description of the Vagelos Life Sciences and Management (LSM) program at the University of Pennsylvania: “The curriculum weaves three elements—the business education of Wharton; life science and liberal arts classes from the College; as well as distinctive LSM courses—into a unified, interdisciplinary course of study.” In addition to the heavy dose of liberal arts coursework, students exit the program with a BA in a scientific field, a BS in economics and two summers’ worth of ‘real-world’ internship experience. While the next generation of life sciences leaders waits in the wings, today’s executives must outfit themselves now for the reform era. Four essential areas of excellence are required of tomorrow’s life sciences executives: business and commerce (including extensive market and regulatory knowledge); communications (internal as well as in board, stakeholder and investor relations); collaboration and team building; and innovation. The first item is particularly critical. As one company I have worked with puts it, all executive hires must be “commercially curious.” What position specifications reveal To get a sense of how expectations are shifting and expanding for key executives, it is useful to look at language contained within actual job specifications drawn up by life sciences companies looking to hire. Following are summations of recent position profiles for three different executives—a chief medical officer, chief financial officer and vice president of sales—at three different companies. Chief Medical Officer (medical device company). In addition to leading the company’s medical affairs function and guiding the company’s research strategy, this position carries with it significant expectations that the CMO be “commercially curious” and focused on marketing and outreach to clients,
volume 32 NUMBER 3 MARCH 2014 nature biotechnology
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© 2014 Nature America, Inc. All rights reserved.
c a r ee r s a n d r ec r u i t m e n t partners and stakeholders. One of the primary responsibilities stated in the specification: “The CMO supports business development through the identification of target technologies and due diligence of potential acquisitions and supports product development initiatives.” Day-to-day responsibilities of the position show how the company prioritizes leadership capabilities as much as scientific or technical expertise: • Providing direct support to global sales team and customers as needed, helping them to differentiate the company’s products in the marketplace • Interacting with government, regulatory and other stakeholders to promote enhancement of the corporation’s reputation • Interfacing with analysts and investors • Publishing in peer-reviewed journals and presenting at key industry events • Taking a lead role in the company’s charitable arm Among the desired qualifications and skills for this CMO: “outstanding oral and written communication skills indicative of a smart and astute leader,” “culturally aware,” “collaborative and team-oriented,” “outside-the-box thinker,” “good listener” able to “manage conflict” and “coach great teams.” This individual needs a “clear executive presence” well beyond what one would traditionally expect for a chief medical officer. Chief Financial Officer (diagnostics company). A CFO should support business development, marketing and strategic planning. This position profile, however, contains language making it expressly clear that the desired candidate will be a “strategic partner in order to grow the business through financial and operational expertise.” A key criterion for the job is extensive knowledge of healthcare reimbursement, and ability to “anticipate change and prepare the organization to respond from a position of strength rather than reaction”—a CFO for the reform era, in other words. This position specification also makes it clear that personality, people skills and leadership qualities are paramount. The CFO must “maintain in-depth relations with all members of the management team.” In regard
to subordinates, he or she must “manage,” “implement,” “oversee” and “supervise.” Ideal qualifications include the following: • Outstanding oral and written communications skills, especially across multicultural, geographically diverse environments • Team-oriented, facilitative, collaborative, empowering and a consummate professional • An individual of high integrity who has demonstrated the ability to model the values of the organization In the past, CFOs were expected to be financial whizzes first and leaders second. Today’s CFO position profiles make clear that these priorities may be equal or even reversed in order. Vice President of Sales (biomedical supply company). Although this is a fairly traditional executive post in the sales field, it is interesting that many of the requisite qualifications and skills focus less on immediate day-to-day technical responsibilities and more on general leadership qualities. Again, “excellent communication skills” were high on the list. These phrases from the profile also stand out: • A passion for enhancing the well-being of others • A hands-on approach to leadership by mentoring and growing staff • A transparent leader • Demonstrated success in an environment where you need to wear many hats • Ability to foster a diverse workplace that enables all participants to contribute to their full potential Aligning with the times Companies are seeking executives who can lead and adapt with the uncertain times. With expectations being raised, executives in the life sciences industry should take stock of their skill set as well as their professional trajectory. Following are kernels of advice that can help executives navigate the career challenges of the reform era. Stay current. Keep abreast of how your industry is changing via industry publications and websites, and discussions with peers. This is especially important with respect to healthcare reform and the implications for the life sciences marketplace. One cannot be expected to have
nature biotechnology volume 32 NUMBER 3 MARCH 2014
all the answers about how the future is shaping up, but one should have plenty of educated opinions. Reassess your skills and competencies. Take a look at what you do—and what you don’t do— well, and work on aligning yourself with what is required of tomorrow’s life sciences executives. From a skills perspective, do you need training or education? Shore up areas in which you lack expertise, or volunteer for responsibilities within your company that lead you into new territory. From a leadership perspective, where do you stand in regards to key competencies (speaking and listening, collaboration, flexibility)? Modern assessment methodologies go well beyond Myers-Briggs and other wellknown personality and leadership evaluation tools, helping you to pinpoint both strengths that you can leverage and gaps or weaknesses that you can compensate for and prevent from limiting your success or derailing your career. Connect and network. Look within your organization for colleagues from whom you might be able to learn something new. Conversely, act as a mentor to those who might be able to learn from you. Outside your firm, make time in your schedule for conferences and other new opportunities. This sort of career development does not always come naturally to executives, but should be a fundamental element of their professional lives. Healthcare’s reform era is here, requiring executives in the life sciences industry to think differently about their skill sets and capabilities. Companies are targeting leadership candidates who can communicate, collaborate, innovate and influence strategy and market success. It’s a new day with greater expectations. COMPETING FINANCIAL INTERESTS The author declares no competing financial interests. 1. PricewaterhouseCoopers. Dealing with disruption. 16th Annual Global CEO Survey: key findings in the pharmaceuticals and life sciences industry. http://www.pwc. se/sv_SE/se/bioteknik/assets/16th-annual-global-ceosurvey-key-findings-in-the-pharmaceuticals-and-lifesciences-industry.pdf (2013). 2. Deloitte. Health care reform and life sciences: threat, opportunity, or both? http://www2.deloitte.com/content/ dam/Deloitte/global/Documents/Life-Sciences-HealthCare/dttl-lshc-health-reform-and-life-sciences.pdf (2013).
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Profiling the reform-era life sciences executive John McLean Healthcare’s reform era is here, requiring executives in the life sciences industry to think differently about their skill sets and capabilities.
npg
© 2014 Nature America, Inc. All rights reserved.
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ife sciences companies are being buffeted by government and regulatory forces beyond their control. While the Affordable Care Act and market-driven healthcare transformations in the United States get most of the attention, national health systems across the globe are reconfiguring themselves, shifting from volume to value and becoming more patientcentric and outcome-oriented. Regulatory agencies are revising their practices and policies accordingly. This is the reform era in healthcare. The central issue for drug, device and diagnostics companies is no longer whether a product can simply gain approval but whether it can achieve a significant and, more importantly, stable presence in and across key markets in light of uncertain government reimbursement and payor-purchasing environments. Our industry has been speculating about the impacts of healthcare reform upon the marketplace for some time, and is just now beginning to encounter this brave new world. More than ever, as healthcare goes so goes the life sciences industry. Life sciences CEOs lose as much sleep over healthcare and regulatory issues as they do over competitors, consumers, economic woes and other concerns1. Navigating reform in its various manifestations and adjusting commercial strategies accordingly has become the primary preoccupation of life sciences executives, particularly those in pharma. When pressed, executives admit that they have dealt with reform inconsistently to date, and reactively rather than strategically2. A new type of leader? Life sciences companies are striving to get ahead of the reform curve to gain competitive advantage—by, for example, taking the lead John McLean is with the executive search firm Witt/Kieffer, Oak Brook, Illinois, USA. e-mail: [email protected]
292
on comparative effectiveness research and evidence-based clinical modeling. They are working to break down traditional silos within their organizations to foster collaboration between experts throughout all phases of product innovation, development and marketing. They are beefing up their regulatory and quality teams and, as much as possible, forging more collaborative relationships with regulators to stay abreast of current trends and mandates.
As life sciences companies reorient themselves strategically, they must also re-imagine their leadership template. As life sciences companies reorient themselves strategically, they must also re-imagine their leadership template. The idea of what a ‘successful’ C-suite or other executive should be is changing. Today’s life sciences leaders must be more broad-minded and multidimensional than in the past—much more aware of how their work and decisions relate to those of others and influence long-term company outcomes and direction. All executives are being asked to be more strategic, even within ‘nonstrategic’ areas such as quality assurance and control, regulation, human resources or finance. Meanwhile, even those executives in research and development and other technical and scientific domains are expected to have exceptional interpersonal skills, executive presence and the ability to truly lead and motivate the people around them. These broadened expectations for future industry leaders are illustrated by the fact that management training and academic programs are beginning to preach a more holistic approach to life sciences leadership. Take,
for example, the following description of the Vagelos Life Sciences and Management (LSM) program at the University of Pennsylvania: “The curriculum weaves three elements—the business education of Wharton; life science and liberal arts classes from the College; as well as distinctive LSM courses—into a unified, interdisciplinary course of study.” In addition to the heavy dose of liberal arts coursework, students exit the program with a BA in a scientific field, a BS in economics and two summers’ worth of ‘real-world’ internship experience. While the next generation of life sciences leaders waits in the wings, today’s executives must outfit themselves now for the reform era. Four essential areas of excellence are required of tomorrow’s life sciences executives: business and commerce (including extensive market and regulatory knowledge); communications (internal as well as in board, stakeholder and investor relations); collaboration and team building; and innovation. The first item is particularly critical. As one company I have worked with puts it, all executive hires must be “commercially curious.” What position specifications reveal To get a sense of how expectations are shifting and expanding for key executives, it is useful to look at language contained within actual job specifications drawn up by life sciences companies looking to hire. Following are summations of recent position profiles for three different executives—a chief medical officer, chief financial officer and vice president of sales—at three different companies. Chief Medical Officer (medical device company). In addition to leading the company’s medical affairs function and guiding the company’s research strategy, this position carries with it significant expectations that the CMO be “commercially curious” and focused on marketing and outreach to clients,
volume 32 NUMBER 3 MARCH 2014 nature biotechnology
npg
© 2014 Nature America, Inc. All rights reserved.
c a r ee r s a n d r ec r u i t m e n t partners and stakeholders. One of the primary responsibilities stated in the specification: “The CMO supports business development through the identification of target technologies and due diligence of potential acquisitions and supports product development initiatives.” Day-to-day responsibilities of the position show how the company prioritizes leadership capabilities as much as scientific or technical expertise: • Providing direct support to global sales team and customers as needed, helping them to differentiate the company’s products in the marketplace • Interacting with government, regulatory and other stakeholders to promote enhancement of the corporation’s reputation • Interfacing with analysts and investors • Publishing in peer-reviewed journals and presenting at key industry events • Taking a lead role in the company’s charitable arm Among the desired qualifications and skills for this CMO: “outstanding oral and written communication skills indicative of a smart and astute leader,” “culturally aware,” “collaborative and team-oriented,” “outside-the-box thinker,” “good listener” able to “manage conflict” and “coach great teams.” This individual needs a “clear executive presence” well beyond what one would traditionally expect for a chief medical officer. Chief Financial Officer (diagnostics company). A CFO should support business development, marketing and strategic planning. This position profile, however, contains language making it expressly clear that the desired candidate will be a “strategic partner in order to grow the business through financial and operational expertise.” A key criterion for the job is extensive knowledge of healthcare reimbursement, and ability to “anticipate change and prepare the organization to respond from a position of strength rather than reaction”—a CFO for the reform era, in other words. This position specification also makes it clear that personality, people skills and leadership qualities are paramount. The CFO must “maintain in-depth relations with all members of the management team.” In regard
to subordinates, he or she must “manage,” “implement,” “oversee” and “supervise.” Ideal qualifications include the following: • Outstanding oral and written communications skills, especially across multicultural, geographically diverse environments • Team-oriented, facilitative, collaborative, empowering and a consummate professional • An individual of high integrity who has demonstrated the ability to model the values of the organization In the past, CFOs were expected to be financial whizzes first and leaders second. Today’s CFO position profiles make clear that these priorities may be equal or even reversed in order. Vice President of Sales (biomedical supply company). Although this is a fairly traditional executive post in the sales field, it is interesting that many of the requisite qualifications and skills focus less on immediate day-to-day technical responsibilities and more on general leadership qualities. Again, “excellent communication skills” were high on the list. These phrases from the profile also stand out: • A passion for enhancing the well-being of others • A hands-on approach to leadership by mentoring and growing staff • A transparent leader • Demonstrated success in an environment where you need to wear many hats • Ability to foster a diverse workplace that enables all participants to contribute to their full potential Aligning with the times Companies are seeking executives who can lead and adapt with the uncertain times. With expectations being raised, executives in the life sciences industry should take stock of their skill set as well as their professional trajectory. Following are kernels of advice that can help executives navigate the career challenges of the reform era. Stay current. Keep abreast of how your industry is changing via industry publications and websites, and discussions with peers. This is especially important with respect to healthcare reform and the implications for the life sciences marketplace. One cannot be expected to have
nature biotechnology volume 32 NUMBER 3 MARCH 2014
all the answers about how the future is shaping up, but one should have plenty of educated opinions. Reassess your skills and competencies. Take a look at what you do—and what you don’t do— well, and work on aligning yourself with what is required of tomorrow’s life sciences executives. From a skills perspective, do you need training or education? Shore up areas in which you lack expertise, or volunteer for responsibilities within your company that lead you into new territory. From a leadership perspective, where do you stand in regards to key competencies (speaking and listening, collaboration, flexibility)? Modern assessment methodologies go well beyond Myers-Briggs and other wellknown personality and leadership evaluation tools, helping you to pinpoint both strengths that you can leverage and gaps or weaknesses that you can compensate for and prevent from limiting your success or derailing your career. Connect and network. Look within your organization for colleagues from whom you might be able to learn something new. Conversely, act as a mentor to those who might be able to learn from you. Outside your firm, make time in your schedule for conferences and other new opportunities. This sort of career development does not always come naturally to executives, but should be a fundamental element of their professional lives. Healthcare’s reform era is here, requiring executives in the life sciences industry to think differently about their skill sets and capabilities. Companies are targeting leadership candidates who can communicate, collaborate, innovate and influence strategy and market success. It’s a new day with greater expectations. COMPETING FINANCIAL INTERESTS The author declares no competing financial interests. 1. PricewaterhouseCoopers. Dealing with disruption. 16th Annual Global CEO Survey: key findings in the pharmaceuticals and life sciences industry. http://www.pwc. se/sv_SE/se/bioteknik/assets/16th-annual-global-ceosurvey-key-findings-in-the-pharmaceuticals-and-lifesciences-industry.pdf (2013). 2. Deloitte. Health care reform and life sciences: threat, opportunity, or both? http://www2.deloitte.com/content/ dam/Deloitte/global/Documents/Life-Sciences-HealthCare/dttl-lshc-health-reform-and-life-sciences.pdf (2013).
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