Dear Pharma Pals,
In this issue of Pharma Machines & Technology we are proud to present the exclusive article by Mike Teiler, the seasoned consultant providing strategic portfolio management guidance to the pharma industry. Mike writes extensively on the evolution of portfolio management in pharmaceutical industry, what were the lessons learned, what has been the challenges and opportunities, how digitalisation and innovative technologies help, what do collaboration and communication mean, how the corporate strategy and culture impact, how strategies and core competencies become the key to winning the competition war, how to align resources to objectives, and why soft skills are far more important than technical skills when it comes to portfolio management.
It is interesting to note that portfolio management as we know it today in the generic pharma industry is a relatively new discipline. The term was not in general use as recently as 15 – 20 years ago and applied to stock brokers, not pharmacists. To understand the foundations of portfolio management we need to look to the very foundations of the generic industry itself, Mike says
The two points that are critical to managing a successful portfolio are discussed in the article. First, it is of critical importance to cancel projects as part of the process and there are numerous reasons why a once attractive project must be abandoned, some internal and others external to the organization.
When deciding to cancel a project, “sunk costs” must not be considered is the second important point. Monies spent are never coming back! The only consideration should be how much future investment is required to achieve how much future value, and compare these figures to other, alternative projects.
As Mike puts it… “Don’t abandon your core! “Don’t rest on your laurels!