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21st Century Pharma: Managing Current Challenges to Ensure Future Growth

Stay on for the Third Annual
Portfolio Management Executive Forum

November 18-19, 2008
Philadelphia, PA

PharmCast

Strategic Resource Management - Day 1


	Conference Proceeding CD Now Available Single Copy - $250.00Site License - $995.00	Speaker Presentations Poster Abstracts and More!

Monday, November 17, 2008 • Day 1

7:00 Pre-Conference Tutorial Registration and Early Conference Registration

PRE-CONFERENCE TUTORIAL

EFFECTIVE STRATEGIC PLANNING FOR R&D PROFESSIONALS

* Separate registration is required.

Applications in Optimization of Strategic Planning – Portfolio Selection, Capacity Planning, and Scheduling of Portfolio of Projects
Vladimir Shnaydman, Ph.D., ORBee Consulting
The workshop will be focused on effective solutions to challenging problems in corporate strategic planning. Our solutions are based on optimization methodology because traditional planning approaches face serious limitations. Topics to be covered during the workshop:

7:30 PART I: Introduction to Optimization Methodology for Corporate Planning
Brief, intuitive introduction to optimization methodology will be provided with focus on benefits for corporate planning.

8:30 PART II: Strategic Portfolio Planning and Selection
Portfolio planning is crucial for developing long-term company strategy. The goal is to meet strategic objectives selecting the “best” portfolio of internal and external drug development programs for funding and balance company resources including money, manpower and manufacturing capacity. Without specific tools, portfolio planning process could be extremely slow and cumbersome process. We believe that one of most comprehensive solution could be derived using optimization modeling. Real life case studies will be discussed to illustrate benefits of optimization approach for portfolio planning.

9:00 Networking Coffee Break

9:40 PART III: Case Study in Optimization of Capacity Planning and Resource Allocation for Portfolio of Drug Delivery and Drug Development Programs
A Company pursuing technological and drug development business needs to develop long-term strategy. Taking into consideration severe resource limitations, both manpower and financial. Technology programs are planned to be out-licensed. In order to achieve the highest portfolio value, a company needs to address several critical issues, among others:

How to allocate limited resource optimally between technological and drug development programs
How to derive optimal out-licensing strategy for technological programs
How to determine the optimal ratio between different types of technological programs to preserve highest company value?

10:10 PART IV: Case Study in Optimization of Capacity Planning and Scheduling for Portfolio of Projects
Majority of biopharma project requires coordinated efforts of multifunctional teams. The project demand workload is highly dynamic. Typical bottlenecks are of high quality personnel, and headcount growth limitations. The ultimate goal is to optimize the rate of projects and improve operational efficiency. The model enables the analysis of resource bottlenecks and provides support for recommendations of resource allocations, scheduling of projects, and hiring strategies. Model implementation generated significant cost savings.
Workshop participants will be able:

Learn principles of portfolio optimization, effective capacity planning and resource allocation
Identify corporate planning problems where optimization approach could be beneficial
Apply gained knowledge to everyday job

10:45 End of Pre-Conference Tutorial

MAIN CONFERENCE

10:55 Organizer’s Welcome
Micah Lieberman, Executive Director, Conferences, Pharmaceutical Strategy Series, Cambridge Healthtech Institute

11:00 Chairperson’s Opening Remarks
The State of the Industry: Dynamics, Drivers and Direction
Murray Aitken Murray L. Aitken, Senior Vice President, Healthcare Insight, IMS Health Inc.
The global pharmaceutical industry is under pressure from all quarters - including payers, regulators, policymakers, and investors. Greater uncertainty exists - both about the future commercial marketplace for pharmaceuticals, and the means by which companies can capture value. As critical strategic and operational decisions are addressed by pharmaceutical companies, it is imperative they reflect the new reality. We will frame the current state of the industry in three areas:

The current dynamics that are defining the global pharmaceutical market
The 5 key drivers that will affect the entire industry over the next 5 years
The outlook for 2009 and beyond for the overall industry and key segments

SPECIAL CO-PRESENTATION
11:30 Strategic Resource Management: Go Beyond Fancy Charts and Truly Impact Strategic Business Decisions
Maureen Martini, Senior Project Manager, Global Strategic Planning and Program Management, Shire Pharmaceuticals

Chris Beck
Christopher Beck, Vice President, Program Resources and Decision Support, Shire Pharmaceuticals

The challenges of implementing an enterprise wide project and resource management capability range from technology challenges to senior leadership leveraging information to make decisions. This presentation will walk through the steps required from organizational readiness through resource gap analysis in order to make deliberate resource allocations. It will also cover the pitfalls or lessons learned along the way. Another key topic is how project and resource management fits in with financial planning and portfolio management.

Business value of a project and resource management methodology (what business questions can be data informed and influenced)
What foundation needs to be in place for success
Who from the organization needs to be fully involved and what role do they play
How to keep it simple despite the complexity of the pharmaceutical business paradigm (make sure the view is worth the climb)
What to expect the first time senior leadership is given the appropriate information and is required to make a tough decision

12:00 pm Developing Successful Project Leaders
Chad Nikel, Director of Business Development, Integrated Project Management
In many biotech organizations, there are two paths to success: a scientific/ technical hierarchy and a managerial hierarchy. At some point in his or her career, someone who has moved smoothly up the scientific hierarchy may be offered a chance or deliberately seek to enter the managerial hierarchy as a project manager. In fact, according to the American Society for Engineering Management, more than half of all engineers will make this shift. However, the transition from one hierarchy to the other can be rocky. Mastering standardized methods, developing rigid project technicians, and implementing complex software tools will not deliver long term, sustainable project and portfolio management value. We must move away from these types of tactical approaches toward a longer-term investment in the human and organizational capital necessary to lead successful projects in complex environments. Project managers not only need technical skills, but more importantly the leadership skills to improve the way projects are run. This session will offer insights into different types of leadership styles which, when used effectively, enables any individual to address the specific project situation he/she faces.

Goals:

To provide a practical approach to developing leadership styles based on unique, individual situations.

The session will do this by imparting:

Lessons learned from 45 diverse life science clients (Biotech, Pharma, Medical Device, Diagnostics).
An understanding of leadership styles to be used in project situations.
Specific examples of success stories to enable their own culture to change and their success rate to improve

12:30 Sponsored Luncheon Workshop (sponsorships available, please contact Arnie Wolfson +1.781.972.5431, awolfson@healthtech.com) or Lunch on Your Own

1:45 Chairperson’s Remarks

Matt Kiernan, Partner, Pharmica Consulting

2:00 Aligning Strategic Capacity Management with Business Development in Healthcare Product Safety
Colin Cornhill, Senior Director, Strategic Planning, Benefit-Risk Management, a division of Johnson & Johnson Pharmaceutical Research and Development, LLC
The pharmaceutical industry faces well-known challenges in meeting public and regulatory demands for safe, effective therapies. There is also continuing pressure for change due to rising development costs and emerging technologies. As part of a broad-based healthcare company our drug safety business has for some time recognized the need to respond to these challenges by leveraging the emerging technologies, offering the potential for enhanced healthcare solutions. These changes have called for adaptations in our business model. By integrating strategic resource management with a long-range business development and technology plan we continue to evolve our product safety capability for high effectiveness in this dynamic environment. Attendees will learn:

The impact of a long-range technology roadmap in strategic resource planning
How various levels of resource management metrics tie together to provide strategic insight
How quality and productivity lessons learned can be translated from regional to global operations
The value of an integrated business development

2:30 Networking Refreshment Break

3:30 Evolution of Resource Management Capability at a Large Biotechnology Company
Matt Riddel Matthew Riddell, M.B.A., Associate Director, Research & Development Planning & Operations, Program & Alliance Management, Biogen Idec
In conjunction with a presentation of results from an in-depth industry survey on trends, lessons learned, and best practices regarding resource management hear how a large biotechnology company has tackled resource management challenges within its R&D organization. Specific challenges from the past will be used to demonstrate the rationale behind Biogen Idec’s current approach to resource management including an overview of its current system, processes, and governance model.

Participants will learn:

The importance of collaboration between Finance, Program/Project Management, and Line functions in making resource management work
Ways to structure accountability for resources across the collaborative matrix
How to use a simplified, yet comprehensive project costing structure to capture major resource buckets
To establish a direct linkage between current year budget exercises and multi-year resource commitments

ROUNDTABLE DISCUSSIONS

4:00 Roundtable Discussions:
Concurrent round tables are interactive guided discussions that go deeper into some points raised by the survey project and discuss some of the more broad yet poignant questions facing the industry Keen. To get the most out of this interactive session and format please come prepared to share examples from your work, vet some ideas with your peers, be a part of group interrogation and problem solving, and, most importantly, participate in active idea sharing.

Table 1. Understanding the Why of Poor Resource Allocation Decisions: Taking into Account Culture, Leadership, Technology and the Impact of those Past Decisions
Chris Beck Christopher Beck, Vice President, Program Resources and Decision Support, Shire Pharmaceuticals

Please describe a decision regarding the allocation of resources (or non allocation) that had a negative impact on your business or a strategic objective.
What were the outcomes that lead to the realization that a poor decision was made? Who was impacted? What were the results?
What was the root cause of this poor decision? Political? Culture? Leadership? Lack of information?
Could a project and resource management capability positively impact future decisions?

Table 2. Project Prioritization within the Portfolio: Best Practices in Redesigning Stage Gate Management Criteria
Marilyn Metcalf, Ph.D., Director, Quantitative and Decision Sciences, GlaxoSmithKline

Should stage gates be set by development phase or by some other decision criteria? What level of confidence or probability of success or level of evidence should be used? Should benchmarks be used as references? If so, how and when?
Who is best qualified to make decisions around how well assets meet the stage gate criteria? Teams? Managers? Combinations?
How do we measure success beyond numbers of assets moving forward? How do we account for differences in quality, degree of innovation, answering unmet medical need/degree of difficulty in treating the disease in question?

Table 3. The Challenges of Current Resource Planning Practices and Potential New or Alternate Approaches
Grant Morgan, Ph.D., PMP, Leader of R&D Metrics and Capacity Management, Senior Global Project Manager, Allergan, Inc.

How do most companies project resource requirements across R&D?
What role do options such as outsourcing studies influence utilization of the available internal resource pool?
Does it work? – how do you avoid under resourcing due to poor understanding of the Portfolio or over staffing due to functional “Empire” building practices
Are there alternate approaches or tools that could fairly and accurately project future resource requirements?

Table 4. The Intersection between Horizontal and Vertical Resource Management - Challenges and Possible Solutions
Richard Bayney Richard M. Bayney, Ph.D., President & Founder, Project & Portfolio Value Creation, and Faculty, University of Pennsylvania

Table 5. The Influence of Human Factors on Resourcing Decisions
Stephen Williams Stephen A. Williams, Ph.D., Partner, Decisionability LLC; former-Vice President and Worldwide Head of Clinical Technology, Pfizer

What is the impact on optimal resourcing of emotional engagement with high medical need diseases such as cancer?
How do perceived risks of advancing or terminating drug candidates vary based on trust, dread or avoidance of blame and what effects does this have?
Do decision makers really believe in measures of value, cost and risk or do they use gut feeling? Why?

Table 6. Pros and Cons to Various Resource Management Approaches in Alternative Operational Structures
Jennifer Hirsch, Associate Director, R&D Operations, Johnson & Johnson Pharmaceutical R&D

To what extent is resource management success contingent upon organization structure?
What are some resource management fundamentals that must exist regardless of structure?
How flexible does resource management need to be to adapt in changing organizational models?
What are some resource management structure or process "lessons learned" within your organization?

Table 7. Is there R&D Overcapacity?
James Resch James F. Resch, Ph.D., Director, Strategic Intelligence, Discovery Strategy and Performance, AstraZeneca Pharmaceuticals, Inc.

Does the industry have more R&D right now than it can afford? Or that its customers can afford?
What are the implications of this situation on the structure of the industry?
What are the implications for portfolio management?

Table 8. Resource Allocation in Rapid Growth Companies
Colin Cornhill, Senior Director, Strategic Planning, Benefit-Risk Management, a division of Johnson & Johnson Pharmaceutical Research and Development, LLC

What are the key characteristics of a "Rapid Growth Company" in the context of Resource Allocation?
What are the critical success factors for Resource Allocation in a rapid growth situation?
Are there lessons from a rapid growth situation that can be applied more generally?

Table 9. Overcoming Obstacles to Portfolio Management Systems’ Acceptance by Senior Management
Richard Lawson, Ph.D., Global Head of Discovery Decision Support, Discovery Strategy and Performance, AstraZeneca Pharmaceuticals, Inc.

What are the obstacles to implementing a new software solution within an established company culture?
What steps can be taken to build confidence in new systems and processes?
Can the learnings from any one organization be generalized as "best practice" for others to follow?

Table 10. Where’s the Greatest Value from Portfolio Management; Is This Changing? – Perspectives From Pharma and from the Petroleum Industry
Lillan Warren Lillian Warren, Chief Operating Officer, Portfolio Decisions, Inc.

What is the most important information provided by the portfolio process?
What questions do we analyze with portfolio management? Is this changing?
To what extent is portfolio analysis an important tool for strategy development?
How can we analyze or quantifie portfolio level risk and uncertainty?

Table 11. Impact of Portfolio Management on Shareholder Return
Anand Sanwal, Managing Director, Brilliont; Former VP, Investment Optimization & Strategic Business Analysis, American Express
Utilizing empirical data from a recently concluded Brilliont study of the S&P 500, this Roundtable will examine:

What is the relationship between portfolio management and total shareholder returns?
How do shareholders reward/penalize companies for their portfolio management decisions?
How much do leading pharma organizations lose every year due to poor portfolio management practices?
Why should companies focus their efforts on portfolio management in lieu of M&A?

Table 12. The Challenges of Meeting Senior Management Expectations of Portfolio Management
Sabine Bernotat-Danielowski, PhD, MBA, Executive Director, Decision Analysis, Daiichi Sankyo

How should senior management be involved prior to key portfolio discussions and decisions?
What kind of analysis and decision making support is appreciated by senior decision makers?
How can portfolio management become integral part of and a link between strategic planning and operational execution?

5:30-6:30 Networking Cocktail Reception

Overview | Tutorial | Day 1 | Day2