Balanced
Scorecard Pharmaceutical
Ultimately, the
challenge facing pharmaceutical companies today is to pursue two
seemingly incompatible goals; maintain or increase quality products
while dramatically reducing costs and development lead times. In
order to respond to these challenges Pharmaceutical organizations
must actively monitor the operational performance of their own
financial, customer, and process objectives so critical decisions
can be made early enough to mitigate risks associated with cost and
quality—the answer is Balanced Scorecard Pharmaceutical. Due to the
long timeframes and technical/regulatory complexities with drug
development, pharmaceutical companies are challenged with managing
the discreet and often time’s elusive performance of those aspects
of quality, which cost or make the organization money. Undoubtedly,
Balanced Scorecard Pharmaceutical is one of the much hyped business
concepts.
Just like other
departments and business segments Balanced Scorecard Pharmaceutical
is also getting popular. Even we can see many companies which have
become Hall Of Fame honorees. For example, CorVu® Corporation a
leading provider of enterprise performance management solutions,
announced on June
16, 2003 that its customer PLIVA, the largest
pharmaceutical company in Central and Eastern
Europe, has been awarded the prestigious Balanced
Scorecard Collaborative Hall of Fame Award. Joining a select group
of organizations, including Hilton Hotels, the exemplary results of
the Balanced Scorecard implementation by PLIVA were recognized at
the Balanced Scorecard European Summit held June 10-13, 2003 in
Barcelona,
Spain.
Hall of Fame
winners met the award criteria with breakthrough performance largely
as a result of applying the five principles of a Strategy-Focused
Organization. The five principles are: mobilize change through
executive leadership; translate the strategy to operational terms;
align the organization to the strategy; motivate to make strategy
everyone's job; and govern to make strategy a continual process.
Other selection criteria are: implementing the Balanced Scorecard
(BSC) as defined by Drs. Kaplan and Norton, the originators of the
methodology; presenting the case at a public conference; achieving
media recognition for the scorecard implementation; producing
significant financial or market share gains or accomplishing mission
objectives; and a CXO testimonial linking the organization's results
with its Balanced Scorecard.
A leader in
antibiotics with 2002 revenue of US$815 million, it is also the
largest pharmaceutical company in Central and Eastern Europe. In addition, PLIVA has a firm
position in Western Europe and the US, which is the
company's second biggest market. PLIVA adopted the Balanced
Scorecard in 1999 to implement a strategy focused on global
expansion and new product development.
According to
the Balanced Scorecard Collaborative: “The results speak for
themselves: the percentage of sales from new products has rocketed
from 3.4% in 1998 to 18.4% in 2002. The percentage of total sales
coming from international markets has also increased significantly.
By creating a more performance-driven culture with the Balanced
Scorecard, PLIVA has transformed itself from a regional company into
a global pharmaceuticals player operating in more than 40
countries.”
More, building
a Balanced Scorecard Pharmaceutical does not need to be a long,
drawn out process. Your unique issues of regulator constraints,
complex stakeholder environments, long product development cycles
and expensive sell cycles all need to be managed in an aligned
fashion across the organization. For example, the RapidScorecard ©
process allows you to develop a working pilot scorecard in just 5
days. This allows you to get the benefits of a scorecard sooner,
develop deeper ownership of the scorecard, and, we believe,
ultimately have a far better scorecard. Brett has helped such
organizations as Astra Zeneca, SmithKline Beecham and Johnson &
Johnson develop scorecarding solutions.
Brett Knowles
has been developing and using this process since the early 90s. Two
of his clients have won “Hall of Fame” awards from Drs. Kaplan and
Norton for their scorecards that they developed using this approach.
His clients have seen billions of dollars in increased valuations as
the result of managing through the balanced scorecard. Brett has
used this process in public and private organizations ranging in
size from 10 people to 1,200.
Attend
this informative session to learn how RapidScorecard © works and how
it can help you move forward with your scorecard.
