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The cross-functional drug development team is the go-to model across biotech and pharma. Although there is consensus that this team structure can work well, there is still debate as to the exact functions represented, and of course the demand for each one of these types of teams is to deliver more innovation and deliver more rapidly. As with so many challenges in our industry, the answer seems to be in new technology and AI. Whilst the data supports the need for innovation and speed to market (4.5% increase in total R&D spend 2022 – 2023 from $139.2Bn to $145.5Bn offset by a reduction in average peak sales per asset of 6.9% from $389M in 2022 to $362M in 2023)1, I would argue that technology is not the first step in making cross-functional teams more effective.
In almost 20 years of working with, and leading cross-functional drug development teams in big pharma, my experience suggests there is one crucial element that will define success of the cross-functional team, and that is the leadership of that team. Leaders who create the opportunity for true cross-functional debate and embrace change typically deliver against their organisation’s expectations and benefit patients through earlier access to new medicines.
The benefit of cross-functional teams has been well documented 2,3 The key characteristic, of course, is the diversity of perspectives and expertise across the membership. However, realising the potential of the team requires each function to share knowledge and opinion. This needs an environment where debate and diverse thinking is encouraged and celebrated. Too often company organisational structure will define which function will lead the team. For example, if the drug development team sits within the Development organisation then the team leader will be from a Development function. Irrespective of the specific function chosen, this can be highly limiting. Recruits for these roles will be filtered for functional experience and holistic leadership and innovators may be overlooked.
Recognition of leadership as a specific skill set has not yet been fully embedded in corporate thinking. This is evidenced by the fact that subject matter expertise or functional expertise is recognised as the primary driver for promotion and recruitment. This approach tends to enhance tactical and operational task completion but to deliver on strategic projects, function-agnostic leadership should be preferred 4.
A function-agnostic leader is someone who has developed particularly strong holistic leadership skills so may be taken from any function. Their ability to transfer leadership skills to any other department sets them apart from their functional peers. Smart companies hire function-agnostic leaders for their ability to build teams, find efficiencies, deliver innovation and cultivate relationships across diverse groups.
Leaders do not have to be subject matter experts but are needed to corral experts and expertise to deliver the best possible outcomes. Being able to deliver innovation and speed across complex drug development programs is invaluable to biotechs and pharma companies. Recruiting on leadership as opposed to functional expertise is a change that avoids the tyranny of functional excellence.
Questions to consider when assessing cross-functional leadership.
Sources
Rob Drury-Dryden is a Partner Consultant at AvisenRx Consultants. Rob has deep expertise in strategic planning and execution in late stage drug development.
AvisenRx Consultants, https://avisenrx.com