As this is being written, word came across that IMS, thatvenerable organization of pharma marketing research, was about to lay off 10%of its work force. As one mightexpect, this reduction was couched in terms of restructuring, right sizing,etc. But at the bottom line, theharsh truth was that 10% of IMS employees would lose their jobs as part of aneffort to bolster sagging financial performance.
By the time this is published, this will not be news. So you might well ask what is my pointif not to announce the downsizing? First and foremost is the reminder that theamount of marketing research business placed by pharma companies in the USdropped by some 25% last year.
Often it takes an outsider’s view to point out theobvious. Accordingly, this secondpoint is not mine but an observation made by a Swiss banker spouse of a GfKcolleague. He responded to thenews by submitting that the industry had best do something to adapt itsbusiness to a world that is changing. He commented that the 10% reduction appeared a bit rounded andarbitrary. In fact, he said, thecontinued existence of these businesses might well depend on a more wellthought-out restructuring, since changes of this magnitude can not be ignored.I believe it is relatively clear to all involved that the toughening times inthe industry are not cyclical, but rather part of a downward trend that islikely to continue.
Perhaps a more preferable means to survive turbulent timesis to plan in advance to avoid such an extreme measure as staffreductions. By examining currentways of doing business, assessing other approaches and eliminatinginefficiencies, a company can become nimble and be prepared to adapt to changewhen it needs to and, ultimately, manage even in challenging times to retainits most valuable resources: its employees and intellectual capital.
Richard Vanderveer is group CEO, GfK US Healthcare Companies
From the March 01, 2008 Issue of MM+M - Medical Marketing and Media
