OCTOBER 2023 9A pharmaceutical company is set out to accomplish, and avoid replicating the default organisational model that we may all have experienced in large pharmaceutical companiesthat is specific to your company, you can proceed by mapping out the individual high-level steps to get to that value, illustrated in figure 3: To get to the value "drug approved for reimbursement" the high-level steps could include:Create a comparative analysis to similar drugs in the marketAcquire data to complete your modelCreate your modelSubmit your model to the reimbursement agency The trick is to stay as high-level as possible, and not get down into the actual delivery of the work. That is a matter for process descriptions, not organisational modelling. While you are creating these steps, think about who would deliver this work. Do you have in-house capabilities or will you be partnering with a vendor to complete this work? Making this visible can help you make smart choices on where to build capabilities and where to outsource. Complete this detailed mapping for each high level value you have identified per stakeholder group. Each stream should have 5-7 steps maximum. If you have more, you might want to consider if you can zoom out a little bit further. Map Your Activity Streams to Your DepartmentsOnce you understand what activity streams lead to value in your organisation, it is time to think about how you are currently organised. List through the departments that you have, and map out the steps in your activity streams to your departments. What defines a department in your case can vary. You can consider your senior leadership and which areas they cover - or perhaps you might need to go a step deeper to identify meaningful organisational units. It will help if you think about where the work is actually done. It will end up looking something like Figure 4 below: This final map will give you an invaluable overview of how work actually flows towards value. You may be surprised by how tangled the activity streams are, and how many times activities go back and forth between departments before reaching their final stage. You may even find that some work flows backwards and loops around before proceeding.Using this map you can start thinking about how you could organise your company to support value creation instead of functional groupings. Perhaps you would consider organising yourself according to product lines or projects. Perhaps you can see that two departments work so closely together, that it might be worth collapsing them into one.Re-thinking how you are organised and aligning it with how value is created in your company will equip you to find your way towards accelerating your drug development, unleashing innovation by bringing different perspectives together and in turn lower the cost of the drugs you create. About The Author:Ivanna M. Rosendal is the senior director of IT in Ascendis Pharma. She is a behavioral economist and has held technology leadership positions in life sciences for the past 12 years. She hosts a podcast about innovation in clinical trials called Transformation in Trials and writes about femtech wearables for TechTruster. She is also the author of the book Maneuvering Monday, that is currently available as a podcast. Reach out to Ivanna via LinkedIn. ValueStep 1step 2step 3step 4step 5Outsourced OutsourcedValueValueValueValueValueDepartmentDepartmentDepartmentDepartmentDepartmentFigure 4: Mapping activity streams to departments Figure 3: Outlining the steps in a value chain
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