Corporate Affairs Excellence Report Summary

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Corporate Affairs Excellence: Optimizing Group Structure & Operations

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Table of Contents

•Project Blueprint – pg. 3

•Executive Summary: Benchmark Insights &

Research Participants– pg. 5

•Commercial Structures: Trends That Drive

Business Unit Structures & Evolution of

Corporate Affairs – pg. 11

•Novartis Case Study: Articulating Business

Units to Express Growth &Entrepreneurial

Spirit – pg. 17

TOC Continued

•Corporate Affairs Group Structures: Key Trends & Drivers of Sub-group Evolution – pg. 28•Corporate Affairs Group Models & Structures – pg. 32•Corporate Affairs Group Services: Key Trends In Service Levels & Priorities – pg. 45•Contact Information – pg. 50

Table of Contents


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Optimizing Structure Involves Integrated Practices & ApproachesThere are no perfect structures. “Form follows function.” New market pressures and lifecycle events compel structures to evolve. Optimizing structure reflects the integrated management of units, people, process, technology, communications, incentives and other management factors.

Corporate Affairs: Accelerated Evolution

To Make the New Structure Work

1. Realign to Support New Corporate Goals,Strategies 2. Fine-tune

Corporate Affairs Sub-group Structures

3. Establish Service Levels to Reflect

Priorities & Resources

7. Drive Long-Term Priorities & Respond

to Ad Hoc Issues

4. Integrate Operations to Bridge BUs, Geographies &

Sub-Groups5. Use Funding / Budgeting Process to Reaffirm Alignments

8. Manage / Coordinate Roles for a Fully Integrated Pharmaceutical Network

10. Assess Performance,

Refine & Continuously

Improve

6. Refine Talent

Management Strategies &

Systems to Fit New Structure

9. Optimize Learning to Enhance Performance

“No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings.”

-Peter Drucker


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1. Abbott Laboratories2. Amgen3. Astellas Pharma, Inc.4. Astra Zeneca5. Boehringer Ingelheim6. ConvaTec7. DRI8. Eisai, Inc9. Eli Lilly and Company10. Emirates11. Genentech12. Genomic Health13. Genzyme14. GlaxoSmithKline15. Intas Pharma16. MDS Nordion17. Medtronic18. Merck Sharp Dohme Turkey19. MetLife20. MSD21. National Grid22. Novo Nordisk23. Pfizer24. Purdue Pharma LP25. Roche Diagnostics Diabetes Care26. Solvay27. Stiefel, a GSK Company28. UCB29. W. R. Grace & Co.

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Corporate Affairs Benchmark Research Participants

Participants in this benchmarking research included 28 corporate affairs executives and managers at 27 leading bio-pharmaceutical, healthcare and non-healthcare companies. Interview participants are underlined.


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Participants’ Job Titles Typically Director or AboveResearch participants included Vice Presidents, Executive Directors, Medical Executives, Directors and Managers. More than 69% of benchmark partners are directors and VPs and 31% are managers. All work directly or indirectly in Corporate Affairs functions.

JOB TITLE JOB TITLEAssistant Director Government Affairs ManagerAssociate Director ManagerCopy and Production Officer ManagerDirector ManagerDirector ManagerDirector ManagerDirector Manager,Director Medical ExecutiveDirector Project ManagerDirector Senior DirectorDirector of Advocacy Sr. DirectorDirector, Communications Sr. ManagerEuropean Director Vice PresidentExecutive Director Vice PresidentExecutive Director


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Functional Perspectives Circumscribe Corporate AffairsBenchmark partners reflect functional experience that interacts directly or indirectly with the Corporate Affairs function. Since Corporate Affairs resides in different places across companies and sectors, diverse functions from Government Affairs, Corporate Affairs, Communications, Medical Affairs and Advocacy participated in this study.

GROUP OR FUNCTION GROUP OR FUNCTIONAdvocacy Relations / Corporate Communications Healthcare Alliance DevelopmentCommunications Marketing CommunicationsCommunications and Government Affairs Medical AffairsCommunications, Brand, Interactive, Creative Medical AffairsCorporate Affairs Medical Affairs Corporate Communications Multi Channel Communications / MarketingCorporate Communications Patient AdvocacyCorporate Communications Patient Advocacy RelationsCRM and Customer Experience Patient Services and Professional RelationsCustomer Marketing Professional Relations, Public Affairs and AdvocacyGeneral Medicine Public Policy and AdvocacyGlobal Advocacy Development Sales and Marketing CommunicationGlobal Employee Communication and Brand Stakeholder ManagementGovernment Affairs State Government AffairsGovernment Strategy and Relations


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Hybrid Structure Most Common of ApproachesThe multi-industry study group reflected diverse approaches to corporate commercial structure. About one-third described their commercial operating structures as “hybrids.” This reflects various characteristics designed to help them deal with growth, scale, products and geographic complexity. About 47% of respondents said they evolved using some form of decentralization.

Q4. Commercial Structure: Note the approach best describing your company's commercial operations structure

(n=28)

Commercial Operating Structure

20%

17%

10%

30%

23%

Hybrid

Centralized

Decentralized by Product Families / Divisions

Decentralized by Geography

Decentralized by Therapeutic Area

Percentage with Each Operating Structure

47% reflect some form of

decentralization


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Corporate Affairs Group Structure – Mid-Cap Pharma Hybrid Approach - AHere, Corporate Affairs reports to the General Counsel with centralization at headquarters and staff decentralization to product families with different regional headquarters. Business units organized by therapeutic areas, product families, geography, product lifecycle and customer segment. Corporate Affairs supports three blockbusters and 10 smaller products.


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