Big Pharma, Leadership, and the Startup M&A Outlook
By Monroe Hatch, Senior Director and Pharmaceuticals and Biotech Industry Lead, Integrated Project Management Company, Inc. Will Big Pharma embark on an accelerated buying spree…
Whether it’s to beat the competition, gain credibility or buzz with a new product, or just start reaping new revenue ASAP, launching new products quickly is always a priority. But there are unique times when missing a hard deadline has serious implications. Big retailers may only analyze and reset a category once a year. Distributors start making purchasing decisions at the big industry tradeshow. Consumers buy products at the start of a particular season. If a new product isn’t ready, it may not make it to store shelves or showrooms until the following year, assuming it’s not perishable. And while that product is stuck in storage, competitors are taking share and consumer buying habits keep evolving.
IPM has partnered with consumer products companies from food manufacturers to backyard power equipment suppliers to health and wellness purveyors to solve speed-to-market delays for over three decades. There are many reasons that companies miss new product launch deadlines, but the root cause is often systemic, from a lack of visibility into and oversight of the complete process.
While our approach considers the often-overlooked impact of the company’s culture, its business processes, market, and other factors, we recommend the following four general steps to a successful launch:
1. Beware of Frankensteined Processes.
Draw out your current processes, looking quickly at each step and handoff for every function, department, external partner, and sales channel. As companies grow and diversify, especially through acquisition and integration, their business processes and IT systems are often bolted together fragments that are disjointed, and they can become obsolete or fail to keep up with new complexities. Methods that worked well in the past no longer serve today. Analyze what you have and consider the disconnects, bottlenecks, inefficiencies, and of course the resources required to pull it off. For instance, one manufacturer whose production had moved overseas hadn’t considered the complicated time, currency, and cultural differences involved. This analysis can also help identify if key resources are simply overloaded.
2. Develop a Real Launch Plan.
Create a detailed launch plan of what needs to get done, in what order, and by whom, using findings from the process review. People often make assumptions about what other groups are doing or should be doing. A plan will highlight interdependencies among teams, ensure the right people are doing the right work, and help align the departments. At a recent engagement, we found teams of innovative, talented people setting goals and solving problems along the way to a brand relaunch occurring at the company’s annual celebration. However, because they were working in silos instead of as an integrated team, one function’s work-around solution was impairing another function’s must-dos. A complete launch plan showed the teams how they influenced each other and led to more collaborative and effective problem-solving.
3. Watch for Loose Rocks.
Identify potential risks and be proactive about mitigating them. In a critical timeline, it’s that much more important to plan for any potential delaying scenarios so you’re ready to respond to prevent postponing the launch. IPM often uses an advanced risk management methodology to overlay project-related risks against the launch plan to determine likelihood of meeting critical deadlines. Proactive steps are then taken to address risks and constraints to increase the probability of success.
4. Lead with Collaboration.
Use collaboration software and a communication plan to give the team and key stakeholders greater visibility into the processes, critical risks, and progress. Having a single source of truth with real-time status and data enables quick, informed decision making. Leading the team through the launch with a great collaboration tool and communication plan enables the transparency and accountability to not only get the launch tasks completed, but also to manage the sometimes “difficult” cross-functional stakeholders.
It’s difficult for an organization to see itself objectively, and even harder for one function or department to see others and their roles objectively. An objective third party, who can integrate seamlessly and doesn’t have preconceived notions, personal attachments, or personality conflicts, can help uncover and resolve issues quickly to ensure a product launch hits its desired deadline.
Scott Grzesiak, Managing Director
Integrated Project Management Company, Inc.
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Service: Product Development
Industry: Consumer Products