‘Unbossing’ Pharma Culture For Millennials – A Sine Qua Non For Future Growth

Wishing All My Readers A Very Happy, Healthy, Peaceful and Prosperous 2019

‘Unbossing’ an organizational culture is an interesting idea – more in the context of promoter driven Indian drug companies of all sizes and scale. The word – ‘unboss’ is associated with nonhierarchical and open leadership culture, aiming to achieve value-based higher goals, across the organization.Not many pharma companies are attempting to imbibe this culture, just yet, barring a very few.

‘The organizational culture is something that comes with the job’ – has been the general perception of all working for the company, including most CEOs, since long. Pharma industry being a more tradition bound, and hierarchic, such acceptance is more visible in drug companies. However, some industry majors have started challenging this status quo by asking: ‘Has our organizational culture, over a period of time, become too hierarchical and somewhat archaic? Are we still clinging on to the dated, and somewhat fossilized views and practices of the great predecessors, which were quite relevant in those days, but no longer now?’

In today’s changing scenario, the corporate culture of a pharma company should be able to unleash the full potential of its employees, who are an increasing number of vastly talented millennials, with generational differences in behavioral pattern.  They come with different values, mindset, expectations, aspirations, and feel comfortable working in a an ‘unbossy’ culture.

In this article, I shall explore how in the new millennium some pharma CEOs are going beyond mere tweaking, to usher in a substantive change in the sensitive area of organizational culture, keeping pace with time. This seemingly rare breed of head honchos clearly recognizes that developing a positive corporate or brand image, starts with the development of an enabling corporate culture.

Let me now start linking the organizational culture and business practices with brand or corporate image, through stakeholder loyalty, to corporate business excellence – all in the pharma context.

Intended corporate image starts from practices within the company: 

Instead of being always combative to prove how unreasonable are the stakeholder demands emanating from the complex business environment, drug companies need to accept some hard facts, and act accordingly. One such fact is – a positive corporate image or reputation based on an enabling corporate culture that is aligned with organization’s identity and good business practices, help earn stakeholder loyalty and enhance business performance.

This concept has passed the acid test in several research studies, over a period of time, e.g. the research paper on ‘Corporate Identity and Corporate Performance’, published in Scandinavian Journal of Business Research (Beta), (ISSN 1504-3134. Its findings may be summarized as: It is important for managers to understand that while building a strong reputation, the intended image projected by the company, needs to be consistent with the actual identity perceived inside the company, especially by the important internal stakeholder – the employees.

This is because, a positive corporate image reflects the way customers perceive a company’s product and service offerings to them and vice versa. This is not a recent phenomenon. It has been happening over decades. But only a few companies have taken it seriously to bring necessary changes within the organization, by remolding the organizational culture in sync with time. This point was also vindicated by the August 1998 article on ‘The Effect of Corporate Image in the Formation of Customer Loyalty’, published in the Journal of Service Research.

The findings of the above study from the goods and service sector are based on theory of consumer behavior, cognitive psychology, and social cognitive psychology. It clearly articulates that corporate image has a significant, but the indirect impact on customer loyalty. The authors claimed that customer loyalty is also driven by positive corporate image.

A positive corporate image originates from an enabling corporate culture:

That developing a positive corporate image or reputation starts with the development of an enabling corporate culture, is also corroborated by the above article featured in the Journal of Service Research. It highlights that a favorable corporate image is formed through a process of continuous updating without any behavioral time-lag within the organization.

Like many other industries, this holds good in the pharma sector, as well, to excel in business. Itis fundamental to ensure that the concerned pharma company always enjoys the confidence and loyalty of its internal customers – such as employees, along with the external customers that include employees, doctors, patients, Governments and the general public, among others.

This is equally important to make sure that the overall organizational culture does not get fossilized, at any period of time. It should always remain in conformance with the changing needs of time – new aspirations of the employees to unleash their full potential, for the best possible business outcomes through customer delight.

Some early indicators of an image problem:

In the pharma industry, some of the early signs of a company’s brand or corporate image problems get manifested by its indirect impact on customer/stakeholder or employee loyalty. The symptoms may encompass a whole gamut of areas, ranging from high employee turnover, through difficulty in getting brand prescription support from doctors and hospitals, into deteriorating relationship with the government, culminating to declining company share value with business growth stagnating or going south.

Positive or negative culture originates from the C-suites:

Many may be well-aware that both a positive or a negative corporate culture originates from the C-suites – mostly starting from the CEO office, including his direct reports, percolating down to even the first line managers, across various functions. A CEO should obviously carry the can and be held accountable, unless such incidences are aberrations or restricted in some functional areas. The reason being, an adverse company reputation or image, usually develops when the concerned CEO’s primary focus is on short-term results – not investing enough time on developing a positive and enabling organizational culture.

As the famous Warren Buffett once said:“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” This is important for all consider, especially in pharma, and in today’s scenario.

In the Indian context, one recent example, could be the ruckus created, especially in the United States and Europe, on the dubious quality and pricing of generic drugs. A bit older example is – how once top ranked Indian pharma corporate Ranbaxy almost vanished in the thin air, over good manufacturing practices and drug quality standards.

What culture would the millennials want with pharma companies?

The December 10, 2018 report on the Best Company Culture for 2018 of Comparably - a workplace culture and compensation monitoring site, highlight some important parameters on what type of organizational culture the millennials appreciate and look for. To illustrate this point, let draw the following examples from the report:

  • Open and collaborative company culture, where everyone is updated on the latest and greatest things happening to the company as a whole, across functions.
  • Autonomy with willingness to help, from all.
  • Everyone is trusted to do their job, no micromanaging.
  • Anyone can ask questions and provide input that will genuinely be heard.
  • Hanging out with each other.

These are just a few examples to get a flavor of the change. It is also quite likely that many senior pharma managers may say: ‘Oh! We are already doing these and much more.’ It’s a different matter, though, that millennials of the same company may not be on the same page with these managers.

Unbossing pharma culture – the ball has started rolling:

At the Forbes Healthcare Summit 2018, held in New York City from November 28 -29, 2018, the global CEO of Novartis - Vas Narasimhan, called for a cultural shift to cater to the millennial generation’s needs, expectations and aspirations at the work place. He said: “The goal we set out to do is create an ‘unboss’ culture.” Half of Novartis current 120,000 employee strength being millennials. This move is directed to enhance the company’s appeal to them. A part of ‘unbossing’ the company culture in Novartis would be relaxing the current rules, by allowing employees to wear jeans to work.

Expanding the point while talking to Business Insider, Vas Narasimhan said: “For many people, they love the idea of the culture change, everybody then wants to know why can’t it happen right away. So, then you have to explain to people, this takes time, leadership, it takes a lot of changes in how we work. But I think there’s been a lot of acceptance of the culture change, but now the hard work has begun.” 

Some key traits of ‘unboss’ culture:

The article titled, ‘5 signs that you might be an ‘unboss,’ appeared in YOURSTORY on April 08, 2017 explains: The word ‘Boss’ originates from the Dutch word ‘Baas’, meaning ‘Master’. Where there is a master, there are slaves, and that’s not a good thing. More often than not, this word leaves a bad taste in the mouth, and rightly so. Thus, in a ‘unboss’ company culture, the topmost quality that the person in-charge, irrespective of organizational functions should possess, is being ‘unbossy’.

Some common leadership traits that define a ‘unboss’ culture, as I sense from the above article, are as follows:

  • Giving a great importance to sharing of knowledge.
  • Quickly identifying the ability in others and bring out the best in each team member.
  • Never feeling insecure and passing on credit where it’s due and not coveting praise that’s rightfully others.
  • Being flexible enough and possessing maturity to also do the legwork when required.
  • Treating everyone the same, without playing favorites, ever.
  • Creating an environment of learning and encouraging the team to experiment.
  • Setting benchmarks for each individual member to assess their own career growth.

In the pharma industry, not many leaders, I reckon, possess these qualities. Some drug companies, both local and global, may pontificate about practicing these qualities, but the majority of employees may not experience most of these in the real work situation.

Conclusion:

In most pharma companies, including India, much of the workforce, in addition to field staff, constitutes of millennials, which will continue to show an ascending trend. Thus, it is critical to align the company culture to attract and retain talents from the new generation A large number of companies still don’t consider this issue as a priority task for the corporation. The example set by the Novartis CEO, as quoted above is refreshing, in that sense.

Moreover, a number of research studies have established that organizational culture helps form the context within which corporate identity and corporate image are established. There can’t be a better time for a relook at the respective organizational culture, as the image of pharma industry has still not found its bottom.

A positive image, irrespective of whether it is a brand or a company, based on a robust organization culture, establishes a stout emotional connect with stakeholders. This is central for a long-term business success, and vice versa. It isn’t an easy task for any pharma player, especially for the promoter driven Indian companies of all sizes and scale, but not impossible, either.

Be that at it may, with the pharma business environment facing increasingly strong headwind, ‘unbossing’ pharma culture for millennials, I reckon, is sine qua non for long-term success – from the corporate perspective.

By: Tapan J. Ray    

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

A Sine Qua Non to Pharma Success in Digitized World

A wind of change is now blowing at an accelerated speed – encompassing virtually anything, across the world, including India, with a varying degree, though. It leaves a profound impact on the day to day lives of many, including almost free access to a plethora of information of any kind available in the cyberspace. The way we express ourselves – connect with others – meet our various needs and requirements – make hassle-free financial transactions – increasing transparency – containing corruption, besides scores of others.

Fast evolving digital technology is predominantly catalyzing this paradigm shift. Its weighty impact can also be felt across the global business world, sparing virtually none. Digitally enabled recent GST implementation process in India is just one such example.

Newer technology driven transformation process of overall business ecosystem is sending a strong signal to all concerned to shape up – coming out of their respective comfort zones of the old paradigm, and embracing the new one. Squarely facing this challenge of change is equally critical even to one of the most conservative, tradition bound, and well-regulated pharma industry. It’s rather an absolute necessity for pharma, as virtually all its stakeholders, including the patients and governments, have already started stepping on to the digitized world. The fundamental choice is, therefore, between shaping-up and shipping-out.

In this article, I shall argue on this critical need, based on several recent, pertinent and contemporary research findings on this fascinating space.

Indian CEOs take:

The 20th CEO Survey of 2017 titled, “Being Fit for Growth”, conducted by PwC

reveals that the term ‘digital’ evokes both excitement and a sense of apprehension among CEOs, both globally and locally. The following are some interesting findings involving the Indian CEOs, as captured in this survey:

  • 38 percent observed that over the past 5 years alone, disruptive technological innovations have had a significant impact on competition within their respective industries.
  • 47 percent believe that in the next 5 years, disruptive technological innovations will have a significant impact on competition in their industry.
  • 77 are concerned about the speed of technological change.
  • 76 percent expressed concerns about rapidly changing customer behavior.
  • 77 percent mentioned the need to create differentiation in their products and offerings by managing data better. 

Its relevance in pharma:

The relevance of taking this wind of change in stride and embracing it fast, is beyond any reasonable doubt today. The 2017 report of EY, titled ‘Reinventing pharma sales and marketing through digital in India,’ also reaffirms: ‘Digital will play an ever-increasing role in this era of profound transformations, characterized by increasingly informed patients/physicians, new range of customers and new disruptive entrants. To stay relevant, pharma companies need to adopt a nimbler approach and make data the currency of marketing.’.”.

The urgency:

A sense of urgency for this change has also been epitomized in the same report, as it underscores that digital disruption has demolished 52 percent of Fortune 500 companies, since 2000. The study further reiterates: “The pace of transformation has increased, competition has intensified and business models have been profoundly disrupted. This shift is happening at breakneck speed across industries, and pharma can no longer be an exception. Customers have already embraced technological changes, through their many digital touch points, and pharma must look toward digital to re-imagine the customer experience.”

Just changing manual processes to digital won’t suffice:

This is exactly what is mostly happening today in pharma. Concerned employees, in general, are also receiving training inputs accordingly. Vindicating this point, a recent study reiterates that just changing manual processes to digital won’t suffice, any longer. Delivering greater value to the stakeholders continuously through digitization of business is the name of the game.

The above EY report unambiguously endorses that: “Whatever was being done manually earlier is now being done digitally. But we are not adding additional value.”

While capturing in the report Indian pharma’s journey to the digital world, it articulates, though some digitization initiatives are being taken now, Indian pharma companies are still way behind their global counterparts. The survey found 53 percent of the participating companies still at the ‘beginners’ stage, while 40 percent are at the ‘conservatives’ stage and only 7 percent have moved toward the ‘explorers’ stage.

Three fundamental non-technical barriers, and the way forward:

Two important studies – one by EY, as quoted above, flagged three fundamental non- technical barriers in this area, and the other one by McKinsey & Co that proposed three strategic actions for Indian pharma to start on a digital path by leveraging its intrinsic value, meaningfully.

EY study indicated, 86 percent of the senior pharma leaders exhibited a strong positive inclination toward digital as a ‘strategic’ rather than a tactical approach. It then highlighted the following three key barriers to embracing digital:

  • Lack of clear digital strategy for the organization
  • Incremental value proposition and effective delivery
  • Change management

McKinsey & Co in its August 2015 report, titled ‘The road to digital success in pharma’ also indicated, though differently, lack of a clear strategic direction and focus in this area. The study noted: ‘Most pharma companies have started to build some digital capabilities, but the talent and resources for their efforts can be fragmented, often across hundreds of small initiatives. Without clear strategic direction and strong senior sponsorship, digital initiatives often struggle to secure the funding and human resources required to reach a viable scale, and they cannot overcome barriers related to inflexible legacy IT systems.’

Based on the above finding, the paper proposed three strategic actions for pharma companies to place it on the right trajectory, capturing the differential value of digital, as follows:

  • Develop the right organization for new business models with significant value addition from digital. This, I reckon, would involve a cultural shift.
  • Focus on two or three flagship initiatives, such as building a digital ecosystem for patient adherence to a blockbuster drug.
  • Run collaborative experiments, and then scale what works, such as putting the right people from IT, business compliance, and outside partners in a ‘war room’ to run quick test-and-learn cycles of a well deliberated digital strategic initiative. Where results are positive, scale those up.

Personalization in every facet of the value delivery system:

As we move ahead, personalization in virtually every facet of the value delivery system is unlikely to remain optional for the Indian pharma players. With this wind of change gathering further momentum, many will eventually witness a mind-boggling level of personalization – spanning across from personalized diagnosis of serious ailments based on complex genomics, doctors’ writing personalized medicines to tech savvy pharmacists dispensing 3D printed individualized formulations.

This trend will continue evolving with an ascending trend of outcomes, breaking all conceivable barriers. Accordingly, services to patients and physicians would also demand more personalization, along with the other stakeholder engagement process.

Most of these may appear no more than a figment of imagination today, or probably a science fiction to many – just as what the incredible narrative of unleashing unfathomable potential of the Internet appeared to so many, not so long ago. Indian pharma players may prefer to wish away this emerging scenario, but at their own peril.

Conclusion:

The Indian pharma industry is currently passing through a phase of transition to move into the digitized world. Just doing digitally whatever is being done manually now or earlier, won’t suffice, any longer.

Giving shape to a robust, comprehensive digital strategic game plan for the organization, as a whole, is the need of the hour. Pharma CEOs would require leading their respective core teams to the drawing boards for charting out this digital pathway, without further delay.

This would be a game changer, as constantly delighting the stakeholders with the best possible value addition in business, emerges as the primary means for sustainable organizational excellence. Long term success in this effort, would call for constant upgradation of the state of the art digital platforms and tools.

This is sine qua non to pharma success in the digitized world – offering a strong foothold as the new paradigm ushers in. Envisioning, what all-round excellence in business would entail in a rapidly evolving digitized world, and championing its effective implementation on the ground, sooner, is now a critical accomplishment factor for pharma CEOs in India.

By: Tapan J. Ray 

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.