Client: Global medical products company
Our Role: Help design a performance excellence framework to completely transform the company’s strategic planning process.
Industry: Pharmaceutical and Life Sciences
Solution: Finance transformation
A new economy demands new ways to plan
Healthcare is being transformed, and quickly, by trends and pressures of all kinds. The regulatory landscape is shifting with expedited reviews and new pricing approval processes. Increasing consolidation, from hospital systems and physicians’ practices to device and diagnostics manufacturers, is changing the nature of competition. The rise of digital health and accelerated innovation cycles have created new expectations. Emerging markets are growing by leaps and bounds.
A global medical products provider, with a long history of success creating products that save lives and improve quality of life for patients, recognized it was time to address the challenges it will continue to face in the new healthcare economy. It had undertaken significant steps to position itself for growth in the global market. A go-forward strategy would be essential, but it wasn’t the right place to start. The organization wanted to completely transform its strategic planning process with the goal of linking strategy to performance.
“Strategic planning in a fast evolving, high-growth market can be challenging. It was rewarding for our teams to collaborate with the client’s team to develop a strategic roadmap that integrates processes across functions to support a performance excellence framework.”
Designing a performance excellence framework to drive strategic growth
Professionals in PwC’s Strategy& practice met with the organization’s Chief Strategy Officer and concluded that a transformational effort was in order. Together, they embarked on a strategy-linked planning process to integrate the strategic plan with the financial plan and define a path forward. Experienced teams from diverse advisory groups across strategy and management practices, finance and supply chain operations and various industry professionals, collaborated with the client’s truly cross-functional strategy transformation team—the Chief Strategy Officer, the VPs of Operations, R&D, Commerce and HR, among others—to create and execute an integrated new planning process.
The transformation journey began with the development of 200 use cases to help define and quantify the key initiatives (strategic levers) for growth and market leadership in select product categories. With growth opportunities in clear view, the PwC and client teams mapped key performance indicators (KPIs) to these strategic initiatives, with specific performance measures across multiple functions, from finance to product lifecycle optimization.
Competitor stats, dashboards and scorecards of metrics, coupled with a well-structured communication and engagement plan, now underpin the KPI framework and support a dynamic process that provides ongoing feedback and opportunities to make adjustments, as needed, to enhance performance.
Aligning and integrating information and processes across the organization has brought siloed functions together with a shared vision, a holistic strategy and laser-sharp focus on strategic growth targets.
A transformation effort comes to life
The organization has embarked on a broad journey toward performance excellence, supported by a strategy-linked planning process:
With a clear vision of how and where to grow as a category maker in a market poised for high-growth and significant disruption, the organization now has a planning process in place to support its strategic initiatives going forward.
Partner, PwC US