Mike Hayes La Crosse, WI “La Crosse Talk.”

9/8/2009 – www.1410WIZM.com – Mike Hayes La Crosse, WI “La Crosse Talk.”

Click on “La Crosse Talk AM Archive” and Click on 9/8/09 to play the clip.

Corporate Trainers – Improving Communication and Helping Employees During Downsizing. Nielsen Training Magazine (In Press)

by George Hughes, Jr, MD, FACP

 

Scenario

• There was a hostile takeover of a mid-sized biotech company by a large pharmaceutical company.

 

• Senior Management of the large company decided that there was duplicity of functions for the medical science liaison (MSLs) in the two companies. There were approximately 100 employees in each of the two companies’ MSL groups. The characteristics of the MSL group of the mid-sized company are compared to the large company:

 

•  
  • Employees with more tenure (20 years vs. 2- 3 years),
  • Extensive experience with at least a dozen product launches,
  • Long-standing relationships about scientific and product integrity with thought leaders and physicians, and
  • Extensive, measurable contributions to the sales and marketing of products over decades which significantly enhanced the bottom line.

 

• In the large company, the key requisite for continued employment was the attainment of a doctorate-level degree (preferably a doctorate of pharmacy), regardless of length of service, or expertise. This requirement essentially eliminated the entire MSLs in the mid-sized company.

 

• The large company chose to use junior-level Human Resources managers of the large-sized of the mid-sized company to inform Middle Management of the MSLs of the mid-sized company that the services of their entire group were no longer needed.  No communication occurred from Senior Management of either company, neither before, nor after the announcement of termination.

 

• The Middle Management of the mid-sized company was told to inform their employees within hours of the “news.” The reactions of shock, dismay, denial, and anger were predictable. The next several months were spent helping the employees to prepare for termination, retirement, or transfer and with minimal support from Human Resources of either company. It was not uncommon for the remaining management to have personal discussions with employees who experienced symptoms of depression, decline in health, and concerns about pension and benefits. In addition, most of the administrative support personnel were either transferred, or their jobs were terminated, well within the three month deadline.

 

• Key customers and thought leaders, with whom the MSLs of the mid-sized company had long-standing rapport, could not believe that these draconian measures were being taken.  Many withdrew support for the large-sized company and worked with competitors.

 

Recommendations for Improved Communication

 

• Senior Management of both companies should have played a more active and proactive role with those employees whose jobs were to be terminated.  Senior Management of the large company could have chosen to meet with the Middle Management of the large-sized company ahead of the announcement of termination. This would have given them time to prepare for the “news.” Optimally, a face-to-face meeting of a member of Senior Management of the mid-sized company, a representative of Senior Management of the large company, members of Human Resources for both companies, the heads of the large company’s and mid-sized company’s MSL groups and the employees could have been held. Q&A could have been conducted which might have helped to put the termination announcement in a better context.

 

• Optimal communications and attention to the human side of the equation was sorely neglected.  Had the companies provided a more comprehensive plan and timely transitioning of employees and their customers, the reputation and long-standing relationships could have been preserved. While it was inevitable that the “more seasoned workers” would face early retirement, the failure to capitalize on their expertise and experience in a timely fashion was a cardinal mistake. A “passing of the torch” should be a carefully construed process, otherwise downsizing will be often be followed by “dumbsizing,” and ill feelings can be pervasive among key customers.

 

Recommendations for Helping Employees During Downsizing

The Corporate Trainer (e.g., for Management, Human Resources and others) should act in a comprehensive manner and be able to address many of the following aspects (list is not exhaustive) for the employees experiencing downsizing:

Mental

• Emphasize that change is inevitable; embrace it.
• Use this experience as “stepping stones not stumbling blocks.”
• Seek help if there are other signs of depression or anxiety  and recommend that they seek professional medical advice
• Recognize that the employee may go through several phases during the transition (denial [“I can’t believe this is happening.”], anger [“Those people don’t know what they’re doing!”], bargaining [“What can I do to change things?”], and acceptance [“I guess it was my time to go.”]).

Physical

• Emphasize that it is important to take care of one’s self and their family.
• Eat properly, get adequate sleep, and exercise regularly.
• Seek professional medical advice if health problems arise.

Spiritual

• People of faith have a foundation to help themselves through tough times; consult with a spiritual advisor (e.g., pastors, ministers, rabbis. etc.).
• Stay in contact with family and friends.

Financial

• Have adequate emergency funds (six to eight months of salary-equivalent funds).
• Apply for temporary unemployment checks, if necessary.
• Re-examine health and life insurance needs.
• Check eligibility for Medicare and/or Medicaid, as applicable.
• Examine cash flow and debts and make necessary adjustments.

Business Relationships

• Network with colleagues or other business associates for jobs.
• Consider part-time employment.
• Keep résumé or curriculum vitae up to date.
• Take advantage of professional societies for possible jobs.

 

 

Dr. Hughes is the Principal of the medical consulting firm, Galahad Consulting PLC. He has over 30 years of experience in the development of pharmaceuticals and medical devices. He is the author of Pfarma Pfables, which is an illustrated, instructive, light-hearted book about anticipating business and career changes from animal-points of view.

San Diego News Network (In Press)

Be prepared: Anticipate and adapt to career-changing business events

 

What businesses have not been impacted, either directly or indirectly, by financial concerns, mergers and acquisitions, or downsizing?

 

Unfortunately, many of those in leadership may not have experienced such a wide variety of these circumstances. Personal experiences from colleagues that have “been there, done that” are invaluable resources.

 

Here are a few common scenarios that I have encountered working in/with small and large pharmaceutical companies; recommendations are also provided.

 

Presentations to Prospective Investors

Scenario

 For small biotech companies, it is not uncommon to seek funding from a variety of sources such as angel investors, stock holders, or venture capitalists. For venture capitalists, they must quickly assess the merits of the proposal and compare the probability of success for the project against other candidates for their portfolio. For the initial contact meeting, there is usually a time constraint of less than an hour with 30 minutes for the presentation and the remainder of the time for Q&A. Venture capitalists tells me that precious time is wasted during the presentation because of a lack of clarity and purpose for the project, despite having a good idea or product. The result may be that essential funding is denied.

 

Recommendations

 Develop the introductory “elevator speech” to prospective investors. Although this sounds simplistic, this approach works well. The premise is that you should be able to capsulize your subject, strategy, objective(s), rationale and steps to achieve the goal within 30 seconds. Your presentation should amplify the points in the “elevator speech.” It is also helpful to pass out written sheets with these points in mind. The delivery is essentially “tell them what you are going to say, say it, and then tell them again, but in a very concise manner.” If these points are followed, it often makes the ensuing Q&A run smoothly and it may improve the changes of getting the funding.

 

Mergers and Acquisitions

Scenario

 In the current business environment, mergers and acquisitions have become commonplace. The reason for the merger and/or acquisition is made mainly upon business strategy, but the “people side” of the equation is an often a secondary consideration. A merger of two disparate companies resulted between, a large

US-based Fortune 500 pharmaceutical company and a conglomerate of smaller, European-based companies.  Problems arose due to the failure to consider differences in social customs, religious practices, language differences, and even wages and benefits. The “pitched camps” about salaries and benefits from the socialized countries and the US were never fully resolved. Even such things as the consumption of alcoholic beverages at lunchtime (a common practice in some European countries) were virtually unthinkable in the US workplace. There was confusion and ill feelings worldwide. As a result, morale and productivity became less than optimal and the result was yet another merger within three years.

 

Recommendations

The business strategy should drive the necessity to have a merger and/or acquisition. However, the human side of the equation should be considered for harmonization of many of the points of contention listed above. It became apparent that the adage that it takes “at least one to two years for complete integration of newly-merged companies” was being borne out.

 Such helpful business educational materials that deal directly with various countries or ethnic groups (e.g., “Dealing with the People of Scandinavian Countries,”) could have made the transitions easier.  Furthermore, this should be an ongoing process.

The Pfarma Pfables Story

Several years ago, while working with a company that presented many challenges, I came up with an idea to help other people avoid certain business situations that I had experienced. Years and years of reading text books and other boring documents led me to create a simple “children’s book for adults”  to make my stories more entertaining to read. The “tails” are told from animal’s perpectives and shed light on different business scenarios.  I think it could be quite helpful and entertaining for people in the business world or anyone involved with career change. Check it out, it’s called Pfarma Pfables by George Hughes, Jr. MD