Delivering a fit-for-the-future operating model for a global pharmaceutical company
- Life Sciences
- Operating Model Design & Agility
A global leader in pharmaceuticals and MedTech needed to redesign a robust, scalable and future-focused operating model, following a major acquisition. Wavestone helped implement substantial operational, customer experience and cost-saving improvements.
Following the completion of a multi-billion-dollar acquisition of a robotic medical device platform, incorporating this (essentially, startup) organization into the operating model of a global organization was more challenging than expected.
Our client did not have a scalable model for the future, as the current operating model could not integrate the new platform while profitably scaling and growing.
As with many organizations, their current operating model had evolved in a fragmented, siloed fashion, resulting in systems that did not talk to each other, duplication of effort, and further inefficiencies that resulted in costs rising and customer experience suffering.
The lack of a joined-up customer experience meant that customers were interacting with multiple parties without a single point of accountability, resulting in high response times and customer feedback not incorporated into a 360-degree feedback loop.
To address these challenges, Wavestone was entrusted by the client’s newly appointed senior executive to run a CX (Customer Experience) maturity assessment to optimize and improve the complaints process.
The CX maturity assessment
Wavestone conducted our established CX Maturity Assessment with a focus on key areas in the organization – technology, process, people, and strategy, as well as the customer – and provided insight into what was working and what was not. The analysis and review identified inefficiencies in the current Operating Model, including siloed processes and significant duplication of efforts. They was not suitable to support the scaling of this unique surgical device.
Following the assessment, the senior executive recognized a larger issue needed to be addressed and engaged Wavestone to deliver an operational transformation program and a new Target Operating Model.
Creating the north star
Our client was happy with the real momentum and excitement the team created with key stakeholders to create a clear ‘North Star’.
Bringing together the distinct ‘cultures’ within the organization, such as the startup ‘technical’ culture from the smaller company and the more traditional company staff (who were more risk averse and used to corporate processes) was key to ensuring all groups were bought into the process, setting them up for success in the transformation.
Over a series of 29 workshops involving 60 participants representing all functions (including R&D, Sales, Marketing, Service etc.), Wavestone facilitated the review of the current op model, current issues – and how things could be improved in the future.
It’s absolutely critical that ‘cultural transformation’ is considered within operating model transformation. By agreeing a clear ‘North Star’, everyone in the organization has a shared sense of purpose.
The creation of a change champion forum
The results were mapped to recommendations and various activities took place to bring this to life: a Change Champion Forum was set up to give employees a sense of ownership, culminating with an internal launch.
Working with leadership, we developed design principles for a future operating model to deliver the organization’s strategic ambition:
- Create a robust and scalable organization
- Profitably move into new geographies
- Launch into other related ‘indication’ areas
Key benefits for our client
Our client now has the design of an operating model to deliver substantial operational, customer experience and cost-saving improvements:
- Enhanced Customer Satisfaction: A increase in customer satisfaction of 21 points in their NPS. The complaints rate decreased by 50%
- Significant Cost Savings: The program identified >$40m in year-on-year cost-savings
- Increased Employee engagement: With the organization’s highest levels of employee engagement ever recorded: a 36% increase.
Overall, our pharmaceutical client had a clear roadmap to become a fit-for-the future organization to go beyond the ‘start-up’ and scale profitably, with effective governance & decision-making forums, customer-centric processes and organizational structure, a digital & infrastructure strategy and future roadmap
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50 % decreased complaints rate
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40 M $ in year-on-year cost-savings
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36 % increase employee engagement
Ongoing impact
Wavestone is continuing to support our client with the deployment of the new Operating Model, with a particular emphasis on knowledge transfer to the client’s own teams. With Wavestone’s coaching, our client is building up the in-house skills to introduce new capabilities themselves, and now have an organizational structure to help them with decision-making.
This partnership showcases Wavestone’s commitment to helping our clients achieve meaningful, lasting improvements that go beyond immediate transformation to foster sustainable success.