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Culture shift
This isn't the first time that we have seen pharma companies trimming their workforces, but now things are different. Organisations are not just 'cutting the fat', they are being forced to shed good people. Plus, other big players are unlikely to have many openings, because they are all in the same boat. So everyone could be affected and everyone needs to be prepared.
How do you prepare for life after big company pharma? Flexibility is more important than ever. Consider all options, whether that means life in a smaller pharma company, a specialist, or even in the service sector. For people who have spent their whole working lives in 'big pharma', this means a significant culture shift. What are the benefits and pitfalls of working in smaller organisations? How should aspiring small company recruits prepare and market themselves? What opportunities exist beyond the traditional big pharma model?
The fact is that the pharmaceutical industry's prolonged and painful period of restructuring looks set to continue and UK pharma is likely to be among the worst hit in Europe. Leading recruitment agencies suggest the situation is more dire than the downsizing witnessed in the early 1990s.
In total, it is estimated that the UK industry has cut 11–15 per cent of jobs across all divisions over the last two years, with salesforces the hardest hit, followed by sales and marketing more generally, and then pre-clinical R&D.
In February, GlaxoSmithKline's (GSK) chief executive, Andrew Witty, stated that there would be yet more cuts, but the company has not revealed which areas and which countries will face these cutbacks. This is on top of cutting 10 per cent to its global workforce in the 12 months to February 2009 and, even now, GSK's leadership is in the 'design phase' of its next restructuring.
To add to this, many employees at Pfizer and Wyeth are braced for bad news following the announcement of their merger, which comes straight after a global restructure at Pfizer. Bear in mind that there are approximately 6,500 people employed by the two companies in the UK and there is inevitably going to be overlap in marketing capabilities.
Because many of these people have only ever worked in big pharma, they are often ill equipped to deal with the modern job market. Hiring companies are looking for personnel that can really make a difference to the business, but working in larger companies can actually stifle that track record of real achievement that employers seek. Big pharma is not renowned for finding innovative solutions to today's market challenges. More often, at an operating level, they are exemplified by inflexibility, a reliance on what has worked in the past and adversity to calculated risk taking.
In addition, big company hierarchies, a meetings culture and the level of bureaucracy all mean that real creativity in marketing (and by creativity I do not mean fancy visuals, I mean real creative solutions to business challenges) is lost. You may feel that what you have implemented is creative, but too often it just looks uninspired when viewed in the cold light of day.
This may seem unpalatable, but sometimes uncomfortable truths have to be voiced to show the problem and thereby prompt successful changes.
New opportunities?
If big pharma is not providing the openings, then where are they? Areas that spring to mind include biotech, small specialist pharma, consultancy and service sector/agency, but do they present real opportunities?
Biotech is an interesting prospect. A prime provider of fuel for the huge pharma machine, biotech companies have traditionally been sources of molecules, not commercialisation organisations. This is all changing as these companies realise there may be greater value in taking their own products to market than there is in getting into a relationship with the big boys. While they may still license out the molecule to a commercial partner, they are now looking for one that is more manageable in a partnership, rather than a Goliath.
Small pharma is equally interesting. While 'bigger is better' seems to be the city's preference, economist E F Schumacher coined the phrase 'small is beautiful' in the title of his 1970's classic. In many industries, as the big get bigger, they leave significant market space for the specialist and that is where small pharma can play its part. 'Small' is not necessarily a bad or risky option.
A smaller organisation gives the opportunity to get more involved in the 'business', instead of just being a part of it. Yes, it may be frustrating sometimes because you do not have the level of resources or support that you are used to or feel you need, but necessity is often the mother of invention and we have seen more creative marketing from smaller organisations that have to do something different to compete than from big pharma where to do something different may well be career limiting.
So what are the smaller organisations looking for? It depends on the organisation, but generally they are looking for people with a 'can do' mentality, prepared to roll up their sleeves and get on with making things happen. What you can do may be limited in scope by budget, but doing a few joined up things well can be more successful than trying to do everything. By thinking about making every pound count, you will be able to demonstrate your ability to generate a commercially attractive return on investment, which will stand you in good stead in the future.
What about the service sector? Based on your own good experiences on the client side, you may be tempted to cross over. However, this field is very different in feel and requirements. In many cases, people are the most important resource, but they also represent the largest overhead. Hence, when times get tough, service organisations shed people. WPP and Omnicon have been making people redundant for some time as revenues drop.
However, small consultancies and agencies can only be successful if they have good people to help drive them forward. Hence, smart service-side businesses do everything they can to avoid making people redundant. They come up with creative solutions to keep talent; BBH staff have recently opted for one day's unpaid leave per month to reduce costs, rather than have redundancies.
It is not all doom and gloom on the service side. In consultancy, we are not finding any less need for support, but decisions are taking longer. So, overall, this may actually be a safer option than big corporations. But you have to choose carefully and find a business that values its people and is still on the upward track.
How do you prepare yourself in the face of redundancy?
First, you must recognise that this is not necessarily about you, but a hard economic decision that the company needs to make. Being made redundant should not make you feel that you have done something wrong.
You then need to be clear about what you want from the next job. It is easy to leap at the first opportunity that presents itself, but it can damage your career if you find you have chosen the wrong option. Two moves in quick succession on your CV can be awkward to explain.
Clarify strengths
Decide what you are really looking for from your next position, and the one after that. Clarify in your own mind what you are good at and what you are not good at. Look at hard functional competencies as well as the softer management/leadership talents. Think about the work culture you would feel most comfortable in. Above all, be clear about what sort of job will make you get up in the morning with a spring in your step. Armed with that list, you are in a better position to review each opportunity in a rational and dispassionate manner. You are also in a strong position to clarify the role and understand the company when you go for that first interview.
Remember that if companies are interviewing you, they are really looking to fill that position. But do not come across as too desperate. Often when we interview people we are checking for 'fit' with the job role and you should do the same. If the fit is not right, then move on. I know that is easier said than done if you have costs to cover, but being in the wrong job can be a thoroughly unpleasant and stressful experience – sometimes even more so than being made redundant.
The Author
Dr Paul Stuart-Kregor is director of The MSI Consultancy
To comment on this article, email pm@pmlive.com
