Archive for March, 2014

Creating Pharma(x)

pipe1Mention change in the pharma industry today and you’ll get raised eyebrows along with a sarcastic alliterative remark suggesting you must be Sherlock Holmes…

No, the question is not whether change is happening, it’s how you predict, control and channel change to your advantage. Or acquiesce and allow it to happen to you.

Secular industry change is risky and challenging. But it’s only through market-defining challenges that companies and people come out stronger and better poised for the road ahead. Embracing risk and creating ambitious goals is what keeps companies moving forward and ultimately leads to new and exciting discoveries.

Larry Page, co-founder and CEO of Google, recently commented that as Google takes even more ambitious and costly bets, one would expect their failure rate to go up. But in fact, it hasn’t. And even when they may not achieve an ambitious goal, the path they take often leads to important things. Read Full Article Now »

Bold Leadership in Healthcare

What’s happening at CVS Caremark is an emerging business case study in visionary leadership.

CVS made headlines for its decision to discontinue selling cigarettes, capturing the gratitude of many people, including the White House.
cvs logoThere was chatter among analysts that this move will trim $2 billion from the company’s revenue, a fact that only seemed to add to the feelings of goodwill among current and potential customers. The widespread response from consumers was, “This is a wonderful thing that CVS did. They didn’t have to do it. They’re doing it not in the best interest of the business, they’re just doing the right thing.”

From a PR perspective, it created a real sense of warm fuzzies towards CVS, increasing pressure on other chains like Walgreens and Rite Aid to follow suit. It has been assumed that management calculated that goodwill towards CVS would result in more customers and more foot traffic, and eventually these new customers will replace the lost revenue. (In fact, trimming $2 billion in revenue, while meaningful, likely will have a modest effect on the stock price. It reflects less than 2% of total revenue, and its contribution to net income is roughly $70 million. Given that the new policy won’t even take effect until October, it will have negligible impact on 2014 company performance.) Read Full Article Now »