User 168926

Big Pharma Power Shift: CFOs Have the Mojo Now

The finance role should not be restricted keeping score, however in an increasingly complex financial system it is important that finance first masters the 'new basics' of complex financial products, systemic exchange rate changes and risk (both internal and macro).
Once these are covered, I feel they should be a team member (not leader) in working on cost reduction and more importantly assisting the process of drug development by providing useful financial tools lower in the pyramid (examples: aligned budgeting and headcount systems etc).
IMHO the major boardroom opportunity is not in finance as addressed in the Ernst & Young report but in human resources. The metamorphosis most needed, not just in the boardroom but at every level in drug companies, is to change HR from just 'keeper of the rules/rewards' to engaged team player who understands the business, nurtures talent, enables change, benchmarks BioTechs, slaughters sacred cows, manages/rewards/retain... a global talent pool and most importantly translates new company strategy into CHANGES in HR systems that support a common goal.
As Big Pharma attempts to change gear into something more efficient, it would be foolish to try to do this without fundamentally changing the HR role. During a gearchange the only gear that stays unaltered is one that was neither engaged before or after.
The successful Big Pharma CEO will need a broader and more alligned role from all his functions. Cost cutting by putting finance on steroids won't deliver more successful products--Detroit is testament to that.