Around the Globe

Shaping Future-Oriented R&D Talent Innovation in China
Part 1: Introduction and Strategic Frameworks
DIA China Leadership and Career Community
O

ver the past five years, China’s pharmaceutical innovation industry has experienced what has been called the Cambrian explosion: significant acceleration in the launch of innovative products, rapid expansion in the number of R&D pipelines, and increasing capital investment in R&D.

But at a time when the industry is booming, China’s pharmaceutical innovation ecosystem sees a series of challenges in terms of R&D talent, including the increasing demand for skilled labor and a contrasting talent gap at all levels (a trend which seems to be intensifying).

To help address this gap, DIA China’s R&D Talent and Capacity Building working group launched the China Pharmaceutical R&D Talent Innovation Research Project, which received wide support and participation from many leaders in China’s innovative pharmaceutical industry, in early 2021.

As a global organization whose mission includes developing R&D talent and capability, DIA is committed to internationalization through innovation. This includes linking China’s R&D talents through the DIA platform to ultimately develop industry leadership that will establish a more dynamic R&D talent ecosystem in China.

This project team conducted in-depth interviews with both R&D and human resources (HR) leadership in the pharmaceutical industry. By observing and analyzing the different challenges these leaders currently face, this two-part article aims to promote increased cooperation among global pharmaceutical R&D talent and in particular to increase awareness of new talent strategies, and to strengthen global talent innovation in China. It also aims to promote aligning the education system with standard clinical research competency requirements to lay a solid foundation for future Chinese pharmaceutical industry talent.

As we prepare for the next five years, we must ensure that the scientific, technological, and talent challenges to innovative R&D do not hinder the sustainable growth of China’s innovative pharmaceutical industry.

Strategic Thinking and Leadership Improvement

According to Korn Ferry’s 2020 R&D Leadership Survey, strategic vision is the most important leadership skill that pharmaceutical R&D organizations must improve (Figure 1). Strategic vision was defined as consisting of three aspects: a forward-looking view of the future national and global disease burden, of the changing regulatory environment, and of emerging technology trends; defining your organization’s unique value by clearly benchmarking domestic and foreign competitors on their strengths and weaknesses; and developing clear innovation strategies which carefully consider the risks and benefits of developing new products and technology platforms in such a volatile environment.
chart of key dimensions of R&D organizational leadership in pharmaceutical companies that need improvement by percent of responders

Figure 1: Key dimensions of R&D organizational leadership in pharmaceutical companies that need improvement by percent of responders.

Cross-departmental communication and collaboration: In addition to knowing their own department’s professional capabilities and specific goals, R&D leaders must have global vision and awareness and uphold an open and collaborative mindset, as well as fully consider the capabilities, resources, and goals of other R&D and non-R&D departments within the organization (Figure 2). Efficient cross-departmental communication and collaboration can accelerate the R&D process through specialized division of labor and collaboration on the one hand and communicate challenges and risks in time to adjust or discontinue R&D projects on the other.
diagram depicting the cross-departmental communication and collaboration
Figure 2: Cross-departmental communication and collaboration.
Agile working mindset and working model: Historically, many leading pharmaceutical companies have actively promoted agile transformation, but such transformation in pharmaceutical R&D has proven relatively slow due to the high reliance on science and a generally risk-averse mindset. In the complex and uncertain environment of pharmaceutical R&D, it is important to promote agile transformation based on a balance of “stability” and “dynamism” (Figure 3). Embracing agility does not mean sacrificing stability; on the contrary, “stability” forms the core pillar of an organization. R&D leaders must clearly understand that the governance structure, enabling tools, structural evolution model, strategy for leadership and talent, organizational culture, and resource allocation strategy of an R&D organization are as important as its “backbone” to the success of the organization. On this basis, the “dynamic” capability response is embedded in the R&D organization: first, to ensure that project teams are built to be goal-oriented by bringing together team members to achieve a common goal; second, to have the courage to revisit their project asset portfolio to ensure that all assets are best aligned with the long-term strategic direction of the business; third, to consistently reimagine and redesign the R&D process to undertake rapid testing and iterative updates; and fourth, to empower clinical data teams to make more decisions. In summary, an agile R&D organization combines a stable core organizational structure with a flexible ability to respond, ensuring quick and effective response to changing external environments. Having an agile mindset and working model requires R&D organization leaders and core talent to lead by example.

Stable backbone

Dynamic capabilities

Strategy
Top team sets clear aspirations for R&D, including measurable outcomes to guide the organization
Leaders and team quickly adapt to shifting environments (e.g., changes in asset-level strategies due to new regulatory guidelines or data readouts, etc.).
Structure
Simple and stable organizational structures (e.g., portfolio committee, technical advisory boards, asset team structures) to create consistency and clarity
Leaders and teams understand their decision rights and have the flexibility to rapidly assemble teams with fit-for-purpose expertise (e.g., to pursue a new business development opportunity with rigor and pace).
Process
Robust processes to support core R&D work
Leaders and teams can focus their time and energy on innovative ideas and other value-creating work.
Technology
Access to competitively differentiating data and technology (e.g., “-omics” data, RWE) aligned with the therapeutic area strategy
Leaders and teams have the ability to rapidly tap into data and technology opportunities (e.g., companion diagnostics, advanced analytics for site selection).
People
Common values and culture to hold the organization together (e.g., seeking advice, experimentation over perfection)
Leaders and teams show up with the right mindsets, skillsets, and ways of working together (e.g., bringing expertise to the cross-functional table, empowered to make decisions with advice, etc.).
Figure 3: McKinsey R&D Agile Transformation Report: Balance of stability and dynamism.
Strategy
Stable backbone
Top team sets clear aspirations for R&D, including measurable outcomes to guide the organization
Dynamic capabilities
Leaders and team quickly adapt to shifting environments (e.g., changes in asset-level strategies due to new regulatory guidelines or data readouts, etc.).
Structure
Stable backbone
Simple and stable organizational structures (e.g., portfolio committee, technical advisory boards, asset team structures) to create consistency and clarity
Dynamic capabilities
Leaders and teams understand their decision rights and have the flexibility to rapidly assemble teams with fit-for-purpose expertise (e.g., to pursue a new business development opportunity with rigor and pace).
Process
Stable backbone

Robust processes to support core R&D work

Dynamic capabilities

Leaders and teams can focus their time and energy on innovative ideas and other value-creating work.

Technology
Stable backbone
Access to competitively differentiating data and technology (e.g., “-omics” data, RWE) aligned with the therapeutic area strategy
Dynamic capabilities

Leaders and teams have the ability to rapidly tap into data and technology opportunities (e.g., companion diagnostics, advanced analytics for site selection).

People
Stable backbone
Common values and culture to hold the organization together (e.g., seeking advice, experimentation over perfection)
Dynamic capabilities
Leaders and teams show up with the right mindsets, skillsets, and ways of working together (e.g., bringing expertise to the cross-functional table, empowered to make decisions with advice, etc.).
Figure 3: McKinsey R&D Agile Transformation Report: Balance of stability and dynamism.
To meet the challenges of new requirements for R&D talent in the context of global pharmaceutical innovation trends, pharmaceutical R&D innovation leaders in China must exhibit strategic thinking, efficient cross-departmental communication and collaboration, and an agile working model in addition to their drug-development expertise. These characteristics can support R&D talent innovation in China (see part two).
Back to Issue