Professional and Trade Relations Excellence Report Summary

Copyright © Best Practices®, LLC

Best Practices, LLC Strategic Benchmarking Research

Professional & Trade Relations Excellence: Optimizing Group Structure & Operations


TABLE OF CONTENTS

I. Executive Summary, p. 4-15

II. Operational Effectiveness, p. 16-28

III. Measuring & Communicating Success, p. 29-36

IV. Challenges & Hurdles for Professional Relations Leaders, p. 37-44

V. Organizational Structure, p. 45-51

VI. Financial & Human Resources, p. 52-60

VII. Pitfalls, Lessons Learned & Success Factors, p. 61-64

VIII. About Best Practices, p. 65-66

3Copyright © Best Practices®, LLC

Research Objective & Methodology

• Professional Relations Operational Effectiveness

• Measuring & Communicating Success

• Challenges & Hurdles for Professional Relations Leaders

• Organizational Structure

• Financial & Human Resources

• Pitfalls, Lessons Learned & Success Factors

Key Topics CoveredStudy Objectives & Methodology

Objectives:Recognizing changing needs among professional and trade groups and a shifting health care landscape, this study seeks to identify PTR benchmark metrics, industry trends, pitfalls to avoid and success factors that lead to effective external collaborations with associations and societies.

Methodology:To collect quantitative data, Best Practices, LLC used an online survey instrument. Analysts conducted in-depth interviews to collect executive insights and harvest best practices and lessons learned.

Best Practices, LLC conducted this benchmarking research to identify successful industry practices and executive insights that biopharmaceutical companies can use to develop a strategic Professional and Trade Relations (PTR) function.


Universe of Learning: 25 Companies EngagedResearch participants included 26 Professional and Trade Relations executives and managers from 25 biopharma and medical device companies across a wide variety of therapeutic areas and product classes. Six companies participated in interviews.

Mid-Cap Pharmaceutical Co.


Director-Level Respondents Dominate Benchmark Class

Senior/ Executive

Director, 19%

Head, 4%

Director, 50%

Manager, 4%

Associate Director, 15%

Senior Manager, 8%

(n = 26)

Respondent Job Level Respondent Job Areas

• Advocacy• Advocacy & External Affairs• Advocacy & Professional Relations (2)• Business Analytics & Insights• Business Unit Commercial Operations• Corporate Communications (2)• Global Marketing• Government & External Affairs• Grant Management• Marketing (2)• Medical Affairs• Payer Market Development• Product Strategy• Professional Affairs• Professional Relations (4)• Strategic Partnerships• Trade & Distribution• Trade & Specialty• Trade Relations (2)

Eighty-four percent of the research participants are at a director level. Professional and Trade Relations as a function resides in multiple departments and is combined with other roles depending on company size, organizational structure and headcount allocation.


Key Insights: Informing Guidelines, Policy & ImageProfessional Trade Relations groups have the opportunity to inform and influence guidelines, policy and the company’s reputation to the professional public. This is often an advisory role rather than a command-and-control role.

Influencing and Informing Guidelines: PTR groups often assist in treatment and policy guidelines development by linking product or therapy experts to advocacy organizations involved in the process. Influencing Corp Brand & Reputation: Savvy PTR groups interact frequently (daily and weekly) with their counterparts on corporate branding, social responsibility and other reputational fronts to help forge positive corporate identities – communicated to and through the professional communities. Informing Media Investment for Scientific Branding: Almost half of the benchmark class represents the company’s full portfolio of products when communicating with association partners. PTR groups also advise on key journals and targets for media investment that helps shape the company’s image among professional, payer and patient groups. Exposing Leaders to Leaders: A quarter of PTR groups actively and frequently engage corporate leadership with key association leadership. This represents an opportunity front for learning, listening and communication at the executive level.

Influencing and Informing Guidelines: PTR groups often assist in treatment and policy guidelines development by linking product or therapy experts to advocacy organizations involved in the process. Influencing Corp Brand & Reputation: Savvy PTR groups interact frequently (daily and weekly) with their counterparts on corporate branding, social responsibility and other reputational fronts to help forge positive corporate identities – communicated to and through the professional communities.Informing Media Investment for Scientific Branding: Almost half of the benchmark class represents the company’s full portfolio of products when communicating with association partners. PTR groups also advise on key journals and targets for media investment that helps shape the company’s image among professional, payer and patient groups.Exposing Leaders to Leaders: A quarter of PTR groups actively and frequently engage corporate leadership with key association leadership. This represents an opportunity front for learning, listening and communication at the executive level.


Ad Boards Are Top Activity for Informing Treatment GuidelinesProfessional and Trade Relations may assist in development of treatment guidelines by linking product or therapy experts to advocacy organizations involved in the process. Only one third of participant groups are not involved in informing treatment guidelines.

Q23. Which activities does your PTR group do to inform treatment guidelines in your company’s therapeutic focus areas? (Please choose all that apply.)

13%

21%

25%

33%

38%

38%

42%

Other

Quality of Life analysis

Expert panels

PTR group doesn’t take steps toinform treatment guidelines

Unrestricted grants

Health Outcomes analysis

Advisory boards

(n = 24)

Other:• “Grants are independently

decided by our grant office. Only medical interacts on clinical dialogue and for guidelines only in response to inquiries.”

• “Product developments, e.g. new indication”

• “To be determined”% Responses

Treatment Guidelines Activities


PTR Aligns with Key Internal Groups through Frequent InteractionFrequent communication, at least monthly, with key internal stakeholders ensures alignment of goals and messages. Many companies have cross-functional teams that meet regularly to update priorities and targets. Respondents also noted daily communication with marketing, medical affairs, managed markets, sales, compliance, and finance.

Q11. Please note the frequency with which you interact with other key internal colleagues/groups to share and learn.

Daily Weekly Monthly Quarterly Annually Never

Corporate Communications – Internal 12% 31% 23% 27% 8% 0%

Corporate Brand & Reputation 8% 38% 19% 8% 12% 15%

Government Affairs (Federal, State or International) 8% 31% 27% 23% 4% 8%

Policy 4% 35% 27% 19% 12% 4%Corporate Communications – External 4% 27% 27% 27% 4% 12%

Corporate Social Responsibility 4% 27% 15% 12% 15% 27%

(n = 26)“Organized interaction is monthly by conference call for professionals within a function and semi-annually in a physical meeting.” - Respondent


Integrated Portfolio Is Favored PTR Positioning StrategyAlmost half of the benchmark class is representing the full portfolio of the company’s products in communicating with association partners. If a company focuses on a particular disease (e.g., diabetes), brand and therapeutic emphasis may intersect.

Q17. Which statement(s) best describes your corporate positioning strategy with professional and trade relations organizations? (Please check all that apply.)

4%

8%

24%

28%

32%

48%

Other

No formal corporate positioningstrategy.

PTR group presents information basedon a company characteristic (e.g.

research-based, patient-focused, etc.).

PTR group presents brand/productspecific information.

PTR group presents therapeutic areaspecific information.

PTR group presents an integratedportfolio of the company’s

brands/products.

(n = 25)

"Our interactions also stress the broader environment that patients, HCPs, and pharma/bio must operate in and the importance of ensuring HCP-industry interactions can continue and that innovation can flourish for unmet needs.”

- Respondent

PTR Corporate Positioning Strategy


Portfolio Perspective Provides Benefits over Brand Positioning Professional Relations functions can position their companies more strategically with association partners when communicating for the full integrated portfolio rather than for brands. Representing the entire company allows PTR to “take it up a level.”

Comments from the Field

“Taking it up a level to the corporate or portfolio level allows us to address chronic disease, primary care, disparities and other healthcare issues when working with our association partners.”

“When representing all brands, we can roll up lots of little grants into one large contribution and potentially become a higher level sponsor.”

“Leverage across all the therapeutic areas if possible. Think what it means to work for the whole company not just a brand.”

“Addressing associations at the corporate level instead of the brand level creates better long-term partnerships.”


Only 24% Schedule Regular Meetings with Executive PartnersPTR leaders touted the importance of executive partnerships but acknowledged the challenge of doing them consistently or effectively due to scheduling conflicts and executives’ priorities. Our research showed that effective communication can still take place in ad-hoc discussions and association gatherings.

Q18. Which statement best describes your PTR group’s approach to executive level partnerships that enable your leadership to discuss policy issues, agendas, and common interests with external

association leaders?

(n = 25)

16%

16%

24%

44%

No approach to such partnerships.

Ad hoc or informal meetings to bringVP and SVP or “C” Level leaders into

contact with association heads.

Regularly scheduled meetings to bringVP and SVP or “C” Level leaders into

contact with association heads.

Occasional meetings to bring VP andSVP or “C” Level leaders into contact

with association heads.

“Regular meetings at conferences and select regular meetings that are quite infrequent (likely annual at best). Meetings can be a full time occupation for all involved without much specific result if not managed in disciplined way.”

- Respondent


Executive Partnerships Are Important but Difficult to EngineerAlthough two-thirds of companies fund executive partnerships to build high-level relationships with associations, many find program success elusive. The most common problem is insufficient motivation/interest/time at the VP level within the corporation.

Key Objectives of Executive Partner Meetings:• Brief associations on key issues & interests of corporation• Hear key issues & interests of association partners• Identify new opportunities for partnering • Use executive voice to highlight the importance of a key issue

Failure Points:x Insufficient support at the C-suite/Presidential levelx Not in VP job description/ not measuredx Executive schedules are too heavyx Not viewed as essentialx Disconnect over expectations for additional funding

Successful Strategies:Identify places where the executive can participate with the organization and make it meaningful to both parties.Consider AVP or Director-level partnerships instead of VPMatch up corporate & association execs who share specific interestsSchedule executive partner meetings at association eventsInvite association execs to corporate headquarters

“Everyone wants to be interacting at the highest levels. Managing this is a real challenge.”

– Interviewed Associate Director

“Execs who are high up are not looking to sit on an association subcommittee or help with a newsletter. They want an equally high role in the association and not all of them have that kind of opportunity.”

– Interviewed Director


About Best Practices, LLC

Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning

strategies of world-class companies.

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