On the up: According to BJ Richards use of management consulting is on the rise in pharma
With pharmaceutical companies facing challenges ranging from regulatory compliance to post-merger integration, it’s no wonder their use of management consulting is on the rise. Our research shows that the pharma and life sciences industry’s consulting use grew 11% in the UK last year and shows no sign of slowing down.
But the pharma sector has tended to be a reluctant user of consultants in the past, which means that many executives will be wondering both if it’s the right thing to do now, and how to get the most out of their investment if it is. If these questions are top of your mind, here are a few things to consider.
Why use consultants?
The single most common reason for hiring management consultants is to gain access to a particular set of skills. In broadest terms, specialist skills are of two types: Issue-specific skills are those that relate to the particular problem you face (say, regulatory compliance) while industry-specific skills are those relating specifically to pharma – they mean speaking your language and knowing the industry (including your competition) inside-out.
Ideally, you’ll want someone with a healthy mix of both issue and industry expertise, but identifying the right balance will mean thinking hard about the nature of your project, its complexity, and how important it is that someone ‘gets’ your industry before they can help you achieve your objective.
Whatever a consultant’s skill set, the goal, of course, is to apply those skills to a particular project or problem. There are nearly as many reasons for using consultants as there are individual consulting engagements, but perhaps the most clear-cut case for using them (and the easiest to justify to the board) is when there’s a big project to be done and you know your team doesn’t have the time, people, or expertise to do it, do it well, or do it fast enough alone. In this instance, there are many ways quality consulting can smooth the path.
Perhaps you have a project in mind and a good idea of what the end result should look like – a more resilient supply chain or a cost-cutting target -- but you’re less clear on how to get there. In this case, a consultant with experience helping similarly situated clients accomplish similar goals -- and with a tried-and-tested methodology for going from concept through to completion – can prove invaluable. Other times, there’s a battle plan but not enough soldiers to take the field: in this case, consulting firms can providing bright, energetic people ready to take charge, roll up their sleeves, and get your initiative running -- without your having to free up scarce resources in house.
Sometimes what you need is less concrete – you have a difficult decision to make and a need to get your colleagues on board once it’s made. Here, a consultant can prove invaluable simply by virtue of bringing a fresh perspective and a dispassionate assessment of your situation and your options. A good consultant can also bring innovation, finding solutions that turn problems into opportunities to differentiate you organisation.
How do I make the most of my consulting engagement?
The most effective consulting projects are those in which the client and the consultant work together as a team, and as with any team, communication, and a willingness to cooperate are vital.
- Remember that providing your consultants with too much information is always better than providing too little.
- Consultants should receive a briefing on the project, the people involved, and the criteria on which they were chosen.
- Make sure expected outputs and budget limits are understood.
- Make sure you have written agreement as to how the project will be conducted, including the project plan, deliverables, expectations, and who will be responsible for which risks.
- Identify problems early so they can be addressed.
- Hold regular progress reviews and get any agreed-upon action points in writing.
- Promptly provide any resources and information you’re agreed to provide.
- At the project’s end, you should hold a joint project review to discuss outcomes and lessons learned.
While there are many things you can do to ensure the success of your project once it begins, always remember that much of a project’s success is determined before you even start talking to consultants. If you’re able to identify the exact reasons why you’re hiring a consultant, what you hope to get out of the engagement, and you’re able to get your internal team on board in advance -- you’ll be half way to victory before you even start.