Introduction was founded in 2003 after two companies came

Introduction

This
study seeks to explore the best practices of the pharmaceutical industry and
the basic fundamental principles that govern the industry as a whole. The study
also analyses a case study of Biogen Idec, a pharmaceutical company that went
through a rigorous transition process and saw many changes and shifts
leadership. The company is of particular interest because of the manner in
which they conducted the entire process without impacting negatively the lives
of those involved. The organization was able to continue offering the best
value to customers while at the same time maintaining efficiency and cost
benefits.

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According
to the National medicines Policy, industries in healthcare are charged with the
responsibility of timely delivery of medicine at an affordable price. In
addition, the medicines have to be of high quality, meeting certain quality and
safety standards. The policy is clear on the fact that organizations should
create awareness on other ways of treating and managing illnesses besides
medication and engagement in the industry should not be centred towards profit
maximization. Organizations are required to assess the risks and benefits of
medicines they put out on shelves and clearly define dosage and duration that
is safe. Counter to these, the medicine needs to be effective in the treatment
of the conditions it claims to treat. Any product information released to the
community has to be evidence based and organizations must be willing to educate
communities on various therapeutic options available and proper labelling is
mandatory.  

 

In
regards to employment, the National employment standards stipulate that in the
event that employment is terminated, a written notice has to be given with fair
compensation if the termination was not due to negligence. While compensating
an employee, an employer can choose to either allow the employee to continue
throughout the notice period, payout the notice or combine the first  two options.

 

Biogen
Idec Incorporated is well known for offering solutions in biotechnology industry,
specifically in oncology, neurology and immunology. The company was founded in
2003 after two companies came together in what was a merger to establish its
headquarters in Cambridge. One of the two companies, Biogen, had a longer
history of success in Switzerland and was formed in 1978, while Idec, was
initially established in San Francisco, California in 1985. The coming together
of these two companies brought what we now know as Biogen Idec. It has a good presence
in Europe, and previously worked with distributors in Latin America, Middle
East, Central and Eastern Europe. In Australia, it is located on Epping road in
North Ryde.

 

As part
of their growth strategy, Biogen Idec has continued to partner with other
companies for example by allowing them to shelves their drugs in their stores.
Besides they have invested heavily in research and innovation. According to
their newsletter published in 2016, the company invested $684 million in
research. This accounted for 31 per cent of its revenues. As a result, the
company was able to accommodate approximately 3,400 employees worldwide.

 

The
company has also gained popularity for the invention of two major drugs used in
the treatment of a particular type of cancer known as Non-Hodgkin’s lymphomas
and for the treatment of multiple sclerosis. Throughout its existence, the
company has taken lead in the discovery, development through research and
innovation of its products. Some of its research centres are located in San
Diego, California, Cambridge, Massachusetts in USA, Canada, Japan, Europe,
Australia and an international commercial administrative centre in Zug,
Switzerland. With these much success, the company has attracted scholars to
delve into the leadership of the organization that contributes to the
continuous development of the organization.

Biogen Idec’s
Vision, Mission and Values

Vision

Biogen Idec has a vision of
making discoveries in human healthcare through partnership and with passion and
purpose.

Mission

The company’s mission has been to
pioneer in research with its capabilities in order to come up with solutions in
oncology and immunology.

Values

One of the company’s core values
is to maintain quality even as the company seeks to seize opportunity and excel
in technology. While remaining truthful and respectful, the company promises
integrity and adherence to commitment to those they serve. With team work as
the glue that keeps everyone together, the company is able to inspire patients,
caregivers, shareholders and colleagues and propel growth with vitality.

Change and change management at
Biogen Idec

The one major change we see at Biogen
Idec that was marked as a huge move was in the relocation of its headquaters.
Initially, its headquaters were based in Paris but after a review, it was
determined that having centres of excellence in Europe and keeping the
commercial administrative headquaters in Zug, Switzerland was the best
alternative. This report will look at the thought process that resulted to this
decision and how well the company managed change, both structural and cultural.

Identifying the gaps

         While
in Paris, Biogen’s headquarters handled all its financial matters, legal issues,
HR and commercial related activities in one office. Other querries such as logistics,
drug safety and regulatory affairs were handled from the location as well. What
we identify quckly with this leadership style is a centralized control system
where most decisions stem from the headquaters. One shortcoming with this style
of leadership is that the decision making process becomes arduous, consuming a
lot of time and in the long run does not align with the desired business
culture that the company wanted to achieve in Europe. Bureaucratic redtapism
was failing the system which so dearly wanted to conform to modern technology
and the modern way of doing business. 

Another gap identified was the need for a direct
presence in growing markets. The company had a strategy to work with
distributors in Latin America, Middle East, Central and Eastern Europe. The
employment of technology and investment in research, was bringing about a
growing need to launch new products and the best way to accommodate this growth
was to have a direct presence in these markets.

Evaluation of the organization’s leadership
and change management plan against best practices

To tackle these issues, the organization
established a commission of inquiry and a project team. They were charged with
the responsibility of reassessing the strategies at hand. The teams were to
work together with the key objective being to optimize organizational structure
and processes to come up with the best location. To do this, a study was conducted
to identify potential locations and a best fit would be selected based on
criteria chosen. Primary data was collected and an analysis was done to
determine the best relationships to effectively address the gaps between
affiliate companies and at the same time strengthen existing ones. This had to
be done by following the industry’s best practices more especially in the event
that some employees were layed off.

 

 The
second stage of the process was to identify an even distribution of resources
across the locations. To do this, they divided the resources into three
categories in order to reduce monopoly. They were to have an international
office which was to oversee commercial and administrative functions. They
identified Switzerland as a good fit due to the political stability of the
country and its worldwide reputation of good money management. The second
category was drug safety and regulatory affairs. Since European regulatory authority
is based in the UK, Biogen Idec preferred to have its regulatory affairs in the
UK too. The third category was logistics and since packaging was already going
on in Holland, the organization decided to have the logistics in Holland.

 

Besides the structural changes
that were well defined and strategically located, the organization went ahead
to redefine roles particularly at the headquarters in order to empower its subordinates.
They planned to do this by applying best practices in such a way that the
subordinates would be self sufficient. One of the good practices they employed
was to support the various operations with the necessary soft tools of trade
such as conveying their needs to corporate. By doing this they were able to
decentralise their operations and become more networked. In addition, functions
such as human resources were removed from headquarters to affiliates and local
managing directors. As a result there was more flexibility within the
organization and the decision making process improved greatly. With these
improvements, business development opportunities came up quickly and were
readily seized by local management which now had more control.

 

The
transition

 

Biogen Idec employed an interesting
endevour as part of its transition process that was manily intended to get the
employees acquinted with the changes that were to come. The main location that
was affected by these changes was France as the office would no longer be in
existence. The employees had to be placed elsewhere globally and they would
have to choose where they wanted to work from. The organization encouraged
these employees to visit the commercial and administrative headquaters in
Switzerland  and weigh their options,
they conducted simulation exercises on tax to help them understand the
financial impact in case one decided to relocate. Further to this, they
conducted risk analysis and identified that there was potential of an employee to
lose some key talents with this move. On the other hand, they fugured the
benefits outweighed any perceived risk and a fair compensation would be given
to employees who decided they could not relocate due to factors that were
beyond their control. This kind of support was a clear reflection of the
organizations’ best practice and an ethical business-oriented mindset.

 

Recommendations and
the advantages they would bring to the organization.

In most
cases, change management comes with resistance. For the case of Biogen Idec,
resistance was mainly in communication. Some people did not receive the
communication breakdown well especially where they had direct connections with
senior management such as the vice president. They wanted to maintain this
reporting line even when the system had changed. As a recommendation that could
address this query, Biogen Idec can come up with a dotted line connection where
the reporting line is retained but loose. This can be received by the team as
being true to its members and working towards a greater source of strength and
corporate values as opposed to when there is no connection at all. In addition,
the organization can come up with a work council where it has representatives
who will assist in rebuilding relationships, setting boundaries and delineating
parameters.

 

Another
recommendation would be continuous improvement where the organization can
conduct surveys in which the employees rate the success of the reorganization.
The survey questions can vary from international markets to defining how well
the organization has aligned its strategies and operational responsibilities.
In case of deficiency, specialist functions can be employed for example the use
of legal advice to address intricate employment queries and come up with a
social plan that incorporates public affairs.

 

Conclusion

To a large extent the
restructuring of Biogen Idec was a huge success and can be attributed to the
immense support from senior management and inclusion of team members in the decision
making process. Additionally, the clarity of direction went a long way with
ensuring a smooth transition. The objectives were clearly defined as were the
business requirements. The strategies to be employed were well explained and
reviews were made in order to mitigate risk. Comprehensive data collection was
done that enabled the organization make reasoned decisions and at the same time
come up with a proper business case. The case of Biogen Idec is one that
demonstrates good application of project leadership and change management
skills.     

 

 

 

 

 

                

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