Wednesday, November 19, 2008
7:30am Breakfast Workshop Hosted by Clear Trial
Responsive Portfolio Planning: How to Effectively Incorporate Constant Change
Moderator: Michael Soenen, Managing Partner, ClearTrial, LLC
Matt Hendricks, Associate Director, Resource & Decision Management, Merck & Co., Inc.
Robin G. Foldesy, Ph.D., Vice President, Portfolio Management, Wyeth Research
Sabine Bernotat-Danielowski, Ph.D., MBA, Executive Director, Decision Analysis, Daiichi Sankyo
Portfolio planning in clinical development remains one of the most challenging aspects of biopharma portfolio management. Lengthy development timeframes are compounded by an accelerating number of changes throughout the development cycle as well as by a lack of meaningful data – forcing many organizations to make portfolio decisions based on a “best guess” approach.
The panelists will examine common scenarios that impact portfolio planning, including shifts in development strategy and changes to study budgets, timelines, and resources. Our experts will discuss pragmatic approaches for portfolio planning that allow you to quickly obtain and digest accurate information, make intelligent adjustments, effectively recast your product portfolio, and measure the results of those changes.
8:15 Chairperson’s Remarks
James F. Resch, Ph.D., Director, Strategic Intelligence, Discovery Strategy and Performance, AstraZeneca Pharmaceuticals, Inc.
PIPELINE MANAGEMENT – ELEMENTS OF RISK
– AN OFF-INDUSTRY PERSPECTIVE
8:30 Utilizing Corporate Portfolio Management to Stop Investile Dysfunction
Anand Sanwal, Managing Director, Brilliont; Former VP, Investment Optimization & Strategic Business Analysis, American Express
Industry leadership belongs to those who make the best decisions. Surprisingly few organizations, however, spend time on enabling better decision-making. One of the results of this is that projects and investments that should not be funded get funding, and projects that should be terminated continue although they shouldn’t. Ultimately, this investile dysfunction impairs an organization’s performance and prevents them from achieving their strategic and financial objectives. It is possible, however, to improve an organization’s decision making capability using portfolio management.
- Understand how resource allocation drives strategy and organic growth
- Provide an example of a real-world utilization of corporate portfolio management at American Express
- Practical steps & considerations on how to enable a corporate portfolio management discipline within your organization with a focus on organizational behavior, processes and systems
- Discussion of things to avoid as your organization embarks on a corporate portfolio management effort
Thought leaders at American Express, Google, Intel, HP, The Wharton School of Business, The CFO Executive Board and Gartner to name a few have all widely recognized and commended Anand Sanwal’s book for its practical, no-nonsense approach to improving organizational strategy and execution by embracing Corporate Portfolio Management.
9:00 Balancing your Business to Survive and Thrive in Economically Challenging Times: Lessons Learned from the Oil and Gas Industry
John I. Howell III, President, Portfolio Decisions, Inc.
In the mid to late 1990’s the oil and gas industry experienced revenue decline due to collapsing world oil prices. During this period different companies tried a multitude of solutions: many companies did not survive this painful period of economic stress but a few companies not only survived but thrived. This paper will illustrate:
- Some of the solutions pursued by companies that thrived during this period
- Some of the popular solutions that failed.
- Parallels between oil and gas and pharmaceuticals
- How lessons from oil and gas during economic stress may help pharmaceutical companies prepare impending economic challenges
9:30 Development Program Prioritization – Allocating Limited Resources in any Business Environment
Len Falsone, PE, Economics Manager, EP Americas, Shell Exploration and Production Company
Allocating limited resources is a major management responsibility, and the resulting financial performance reveals management’s abilities. External business environment, views of the future, and stakeholder demands are three factors that influence management’s strategic intent and tactical decisions. Within relatively short periods of time, it is common for EP companies to face dramatic changes in these factors. Some, such as rapidly escalating raw material costs, are not always as publicly visible as the recent extremes in gasoline prices. Major EP projects often require cumulative cash sinks of billions of dollars spanning 5-10 years before revenues begin. Savvy business leaders can clearly see that the path leading to major investment decisions are fraught with wide ranges of risk and uncertainty in eventual outcome. This presentation will show an efficient and transparent way to balance multiple attributes of investment options that compete for human, physical, and financial resources. By choosing attributes that are universally understood across management, technical and operations ranks, the system has helped to demystify decision-making and better enables daily activities to align with management’s current strategic priorities.
10:00 Networking Coffee Break (and book signing by Anand Sanwal)
INTERACTIVE PANEL DISCUSSION
11:00 How Can We Translate These Lessons Learned from Other Industries into Helpful Tools for Pharma? And, is Pharma Really Different from Other Industries?
Facilitator: Robin G. Foldesy, Ph.D., Vice President, Portfolio Management, Wyeth Research
John I. Howell III, President, Portfolio Decisions, Inc.
James F. Resch, Ph.D., Director, Strategic Intelligence, Discovery Strategy and Performance, AstraZeneca Pharmaceuticals, Inc.
Stephen A. Williams, Ph.D., Partner, Decisionability LLC; former-Vice President and Worldwide Head of Clinical Technology, Pfizer
Dr. Richard M. Bayney, President & Founder, Project & Portfolio Value Creation, and Faculty, University of Pennsylvania
Jean Lee, Director, WWD Portfolio Management, Pfizer
Jeff Hewitt, Vice President, SDG Life Sciences, a unit of IMS
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12:00 pm Hosted Luncheon and Presentation
Patent Portfolio Management; Tips and Tricks for Maximizing Your Product’s lifecycle
 Wolfgang von Meibom, Partner Intellectual Property, Joint Head of the International IP Practice Group, Bird & Bird
 Marc van Wijngaarden, Partner Intellectual Property, Bird & Bird
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1:25 Chairperson’s Opening Remarks
Richard J. Heaslip, Ph.D., Vice President, Project & Portfolio Management, Wyeth Research
1:30 Value of Information – Beyond Traditional Decision Analysis
Otto Ritter, Ph.D., Associate Director, Global Discovery Information, AstraZeneca Pharmaceuticals LP
The information content of a drug project’s (virtual) dossier with summarized goals, criteria, questions, outcomes and supporting evidence, is the object and final product of pharma R&D. Experiments are designed and executed to maximize the gain of pertinent information for such dossiers. Information is stored and communicated in mental models, messages, documents, databases, software tools, procedural know-how, etc. -- all these assets are also the “resource” which fuels discovery and development activities and affects the key performance indicators at every level. Information consumes our attention and other precious resources. We define and quantify its theoretical and practical properties, including measures of cost, size, recall, complexity, quality, coverage, similarity, distance, etc., but the most useful properties of them all -- the context-specific relevance and actionable value relative to a given goal -- remain elusive in too many practical situations. This is a great challenge and an enormous opportunity. I will present examples from my work on creating and re-using simulation models of R&D for decision support purposes. I will further discuss how to apply this framework to estimate the practical value (utility) of several different types of information. Topics will include:
- How to simulate the dynamics of resource-constrained value flows
- How to estimate the cost-risk-benefit contribution, to the pharma R&D value chain, of information assets such as biomarkers, predictive technology or business intelligence systems
- How to valuate resourcing, in-licensing or out-sourcing options relative to in-house benchmarks
- How to use observations and empirical data to improve both the values of parameters and the structure of simulation models
- Technical and non-technical issues in building and interpreting R&D models
2:00 Cost-Risk-Value Optimization – Enabling Drug Developers to “Do the right thing”
Stephen A. Williams, Ph.D., Partner, Decisionability LLC; Former Vice President and Worldwide Head of Clinical Technology, Pfizer
At various times, Pharma has attempted to use value maximization, cost minimization and de-risking to improve productivity, but these approaches tend to optimize one issue at the expense of the others, or they require complex models that are divorced from the culture of scientific teams. We present a simple and holistic approach to the quantitation and display of risk and benefit in technical, human and economic domains that can be made integral to development teams strategic planning. The monetization of risks enables teams to determine what actions liberate the greatest value through resolving the most risk at the lowest cost – “the right thing”.
- How to characterize issues, “baggage” and attrition as risks in terms of severity and probability in technical, human and economic domains
- What is the same or different about a probable but not severe risk and a severe but not probable risk
- How risks characterized in this way can be monetized in terms of value destruction
- How strategic actions can be prioritized in terms of greatest change in risk [or value destruction] per unit cost
2:30 Networking Refreshment Break
CLOSING KEYNOTES
3:15 Decision Analysis from an Executive Perspective: Perceptions, Expectations and Needs
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Sabine Bernotat-Danielowski, Ph.D., MBA, Executive Director, Decision Analysis, Daiichi Sankyo
The implementation of decision analysis and its acceptance and utilization by executive decision makers can be a major challenge. DA is sometimes understood as a technical discipline, and its results are perceived as being counterintuitive. In other organizations DA contributions are valued as key input into strategic and operational decisions. This presentation will highlight:
- Perceptions and expectations
- Identification of stakeholder needs
- Understanding of organizational processes and behaviors
- Keys to successful implementation of decision analysis
3:45 Project & IT Portfolio Management – Organizational Challenges to Maximizing Value and Balancing Risks
Richard M. Bayney, Ph.D., President & Founder, Project & Portfolio Value Creation; Faculty, University of Pennsylvania
The disciplines of Project and IT Portfolio Management are practiced with varying capability and maturity levels across many organizations and industries. Although several similarities exist between Project and IT portfolios – not least of which is the overarching objective to maximize organizational value in the face of constrained resources – there are sufficient idiosyncrasies which predicate that these portfolios be evaluated and treated somewhat differently. This presentation examines the commonalities and differences in the management of Project and IT Portfolios.
- Defining organizational objectives, requirements, and constraints
- Evaluating Project and IT initiatives
- Establishing a common methodology for prioritization
- Examining capability maturity models
4:15 Integrating Value into the Portfolio Decision-Making Framework
Presented by
Jean Lee, Director, WWD Portfolio Management, Pfizer
Co-Developed with
Lori S. Shafner, Vice President, Portfolio and Project Management, Pfizer
An overview of Pfizer Global Research and Development’s approach to portfolio management will be provided, together with how it is applied within a therapeutic area to ensure the portfolio is optimized to advance the most valuable assets across the entire portfolio. Within this context, it is important to link the strategic plans with the operating plans to ensure resources are optimized to meet organizational goals. A portfolio prioritization framework is utilized that provides a view of risk, cost, time to delivery and value within a TA and across the entire portfolio – this approach provides the context to agree on what represents the best balance in the portfolio to achieve short, medium and long term objectives for product roll-out. The challenges and perspectives from a large pharma will be shared and the reliance on a solid project management foundation highlighted. Attendees will get a perspective of how the portfolio and project management organization within a large pharma has applied an integrated approach to portfolio management, leveraging an established foundation of project management principles. This presentation will also highlight how the organization has adapted to respond to organizational changes and a shift towards therapeutic area business units, with an emphasis on value-based metrics.
4:45 Chairperson’s Closing Remarks
5:00 Close of Conference
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