Essential Leadership Skills for Success in the Pharmaceutical Industry

The pharmaceutical industry is an ever-growing giant with the power to shape the health and lives of individuals across the globe. Because the pharmaceutical space is very competitive, the growth of pharmaceutical companies strongly relies on their leadership. Leaders set a clear vision for the company and create a culture that encourages innovation. Consequently, effective leadership is the backbone of the pharmaceutical industry.

Leaders delegate tasks and also inspire others to work towards the goals. Becoming a successful leader is not an overnight process, nor is it an in-built skill. Instead, successful pharma C-suite leaders have developed specific pharmaceutical leadership skills that help them guide their employees and the company. This article discusses three important pharma leadership skills: strategic thinking, decision-making in pharma, and innovation in leadership.

Strategic thinking

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What is strategic thinking?

Strategic thinking is a rational thought process that examines any situation or decision from several aspects and considers all critical variables and factors that influence the decision. Strategic thinking is never influenced by emotions and instead focuses on facts and figures.

Why is it important?

Strategic thinking is among the most important pharmaceutical leadership skills because:

• Strategic thinking allows you to make well-informed and well-analysed decisions. 
• Leaders who possess strategic thinking skills can better articulate their thought processes and decisions, which inspires confidence and loyalty among team members.
• Strategic thinking helps decision-makers avoid making impulsive decisions and focus on decisions that align with their goals.

Pharma leaders need to develop strategic thinking skills because they will frequently encounter high-pressure situations where these skills will be tested. Here are some examples.

Examples of critical decision

• Drug development and pipeline management: C-suite leaders need to decide which of their drugs in the R&D phase can advance to the lengthy (and expensive) clinical trial phase. To this end, they need to evaluate the competitive landscape, customer needs, market gap, market size, and regulatory requirements before making a decision.
• Regulatory management: Leaders need to work with regulatory bodies like the FDA and EMA when seeking drug approval. They have to navigate regulatory guidelines across different regions, plan necessary studies, create appropriate documentation, and anticipate regulatory hurdles.
• R&D budget allocation: Pharmaceutical companies usually have more than one drug in the pipeline. As a result, leaders need to allocate an appropriate budget for each. These decisions are based on market demand, drug potential, and the company’s long-term goals. Leaders need to balance high-risk high-reward projects to create innovation.

Decision-Making

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What is decision-making?

Decision-making is the process of selecting a choice among many provided. Decision-making is an important pharmaceutical leadership skill because pharma companies face critical decisions every day. 

Why is it important?

Decision-making skills are important in pharmaceutical leaders because:

• Effective decisions can save time and increase employee productivity. For example, employees may disagree on which drug should proceed to the next R&D stage; however, a manager can analyze the situation and make a decision, effectively saving time.
• Leaders with good decision-making skills can make good decisions under pressure. This is especially important in emergencies, for example, when production is halted by regulatory bodies or if there are product recalls.
• Good decision-making leaders can reduce conflict among team members. Team members who do not trust their leader’s decision may create conflict in emergencies. However, if the leader has proven their skills, employees are more likely to follow them.

Case study

Pfizer is an excellent example of a company with good decision-makers. Pfizer has 113 drugs in the development pipeline. The situation was extremely similar in 2020 when the pandemic hit. In 2020, Pfizer needed to urgently develop a vaccine for the coronavirus 2020. Thankfully, Pfizer already had a mRNA vaccine for flu in the pipeline, which it expedited as a vaccine for COVID-19. Several decisions helped it get there:

1. Partnership: Pfizer partnered with BioNTech, leveraging BioNTech’s expertise with Pfizer’s resources, allowing the rapid development and scale-up of the developed vaccine.
2. Clinical trials: Because this was a global emergency, Pfizer expedited clinical trials by overlapping some phases of the trials. This allowed them to get more data, expediting the process.
3. Regulatory approval: Pfizer worked with regulatory bodies to gain immediate approvals. They had continuous dialogue with the FDA, EMA, and other agencies to better understand protocols, get faster reviews, and gain more insights.

As a result of these decisions, Pfizer was the first company to launch a COVID-19 vaccine.

Innovation

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What is innovation in the pharmaceutical industry?

Innovation in the pharmaceutical industry is the development of new drugs, therapies, and medical technologies to improve patient care and address unmet medical needs. Innovation is the key driving force behind the pharmaceutical industry and is important for its survival.

Why is it important?

Innovation in the pharmaceutical industry is important because:

1. Long-term vision: Innovative leaders can look beyond the current market demands and determine whether an innovative idea has merit and scope for future development. 
2. Competition: The pharmaceutical space is becoming increasingly competitive, and hence, leaders need to focus on innovation to get ahead of the competition. Leaders who focus on innovation are more likely to get ahead of the crowd.
3. Regulatory hurdles: Regulatory guidelines are a dynamic landscape and can change at any time. Innovative leaders are more likely to determine ways to adapt their current processes to new guidelines.

Examples of innovative leaders

The pharmaceutical industry is a vast space where one individual can take small actions, but as a company, you can make a much larger difference. Here are some examples of innovative leaders:

1. Roche: Roche has 218 drugs in its pipeline.
2. AstraZeneca: AstraZeneca has 166 drugs in its pipeline.
3. Eli Lilly: Eli Lilly has 159 drugs in its pipeline.

Other leaders include Johnson & Johnson, Bristol–Myers Squibb, Novartis, and Pfizer.

Conclusion

This article highlighted the three important pharmaceutical leadership skills for C-suite success. Pharmaceutical leaders need to develop critical decision-making skills, strategic thinking skills, and an innovative mindset for long-term success. Unclear on how you can develop them? Don’t worry, we’ll soon publish another article detailing how you can consistently develop these skills! 

FAQs

1. What are some other skills important for C-suite success?

In addition to strategic thinking, decision-making, and innovation, C-suite leaders also need to be good communicators, problem-solvers, negotiators, and relationship builders.

2. How can someone develop pharma leadership skills?

Firstly, pharma leadership skills can be developed by pursuing formal education, training, or self-study. Secondly, they can also take feedback from their team or work with a mentor to improve their skills. Finally, pharma leaders can also put themselves in situations where they are required to make strategic decisions, allowing them to learn on the job.

3. How do leaders inspire their teams?

Leaders inspire their teams by providing a clear vision that everyone agrees with. They lead by example, recognize efforts and hard work, and support and empower their team members.