LUNDBECK TRACKING STRATEGY WHEN EXPANDING PRODUCT PORTFOLIO THE CHALLENGE How do you adapt your management style when your company expands its product portfolio? This was the situation facing the corporate management group at Lundbeck, a major pharmaceutical company. Over the course of a few years, Lundbeck went from a “one product” company to a multi product company. From producing and promoting a relatively narrow range of products to having a much more wide-ranging portfolio. As a result, the company´s corporate management group was called upon to address a higher number of strategic initiatives. The sheer quantity meant that the management group needed a clear overview of the increasing portfolio in order to be able to manage how things were progressing – were the strategic objectives being met? THE SOLUTION To support the corporate management group, Valcon was consulted to create a tool that speed up strategic monitoring and decision-making: a KPI overview. Such an overview would help the managers execute Lundbeck’s strategy with the necessary impact and speed – and more importantly, in the right order. The first step was to rank the strategic objectives in order of importance. An experienced performance management consultant worked closely with the corporate secretary and project office to define the KPI cockpit frame. Together they identified the most representative KPIs, and made sure that data gathering and reporting would be smooth, efficient, and fully operational. In essence they worked to make essential information readily and quickly available to the corporate management group. ABOUT LUNDBECK Lundbeck is a global company within the pharmaceutical industry. Lundbeck carries out search and development, production, marketing, sale and distribution of medicine for the treatment of diseases in the central nervous system such as depression, schizophrenia, Alzheimer’s, Parkinson’s and insomnia. Lundbeck has a total of 5,900 employees in 57 countries, 2,000 of whom are based in Denmark. The company’s products are registered in more than 100 countries. Its research centres are based in Denmark and the USA. Lundbeck spends more than 20% of its turnover on research and employs 1,100 experts within its development functions. TESTIMONIAL “The KPI overview has created a tool that ensures the correct prioritisation and fast corrective decision making, which is crucial if Lundbeck shall become successful with all the opportunities we as a company currently are facing; a number of product launches and a heavy loaded late stage pipeline to bring to the market. The KPI overview has also created an alignment in the management group and helps as a tool to set the short term objectives that are important to secure long term growth for Lundbeck”. Executive Vice President, CFO Anders Götzsche, Lundbeck
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