1. Optimizing Research Michael H Elliott CEO Atrium Research

2. About Atrium Research
Atrium Research is an independent, vendor-agnostic informatics market research and management consulting organization
We develop packaged and customized research reports; strategy, analysis, and change acceleration services
Multiple publications on research informatics

3. Teams and Leadership “Insanity is doing the same thing over and
over again and expecting a different result”
- Bill Walsh
Champion
Football*
Coach
*American Football that is

4. $63 billion worth of drugs will lose their patents
“The Chart”
$63 billion worth of drugs will lose their patents
between 2007 and 2012

5. Call Me a Heretic! Informatics Myths
Technology, in isolation, will not:
“Give you more time for science”
“Get your drug to market faster”
“Break down barriers between departments”
“Make you compliant”
“Manage your knowledge”
“Give you all the answers through integration”
Informatics technologies are just tools
Important tools, but just tools
It is the contextual use that matters

6. Management Consulting Myths for R&D
Management by metrics
“If you can’t measure it, you can’t manage it”
Focusing on short term metrics and devaluing intangibles
Uniformity
“Just apply the concepts of lean manufacturing to R&D”
Manage by outcomes
“Reducing cycle time to X will get drugs to market faster”

7. It is Not About Working Faster…
It is about sustaining an effective organization
Effectiveness is gained through systems thinking
Systems thinking : A holistic approach that focuses on the way a system's constituent parts interrelate
The human element tends to be overlooked

8. 10 Signs of a Dysfunctional R&D Organization
Organizational imbalance
Turf wars
Constant state of crisis
“Silo mentality”
Optimization of micro-processes
“Relative success”
Aversion to risk
Blindness to reality
Lack of ownership and accountability
Continuous re-organization

9. Organizations
Are man-made institutions but people feel trapped by them
They evolve through the behaviors of their leaders
Organizational changes are most often reactions, based on market forces and old habits

10. Example – Lead Optimization
Discovery
Development
Target
Identification
Target
Validation
Lead Generation
Lead Optimization
Preclinical
Development
Phase I
Phase IIa and Phase IIb
Phase III
Pre-NDA

11. “Hub and Spoke” Project Orientation
Dynamic Complexity competing with Social Complexity
…Etc…
Discovery
Toxicology
Med
Chem
Genomics
Project
Team
Compounds
Questions
Assay Request
Drug Metabolism DM
Clarification
Data
Negotiation
Pharmacology
Pharmacokinetics PK

12. Department Objectives Routinely are not Strategically Aligned
Competing forces:
Depth of analysis v.
Speed
Quality
Risk
“The med chemists know more about the characteristics of the compound than we do. We unfortunately have no time for detailed study analysis”
- Director DMPK Large Pharma

13. Intersecting a Socially and Dynamically Complex Organization is Problematic
Complexity W i c k e d W i c k e d P r o b l e ms M e s s e s T a me P r o b l e ms M e s s e s
Dynamic Complexity
Source: P Senge

14. Effective R&D Organizations…
Share a common vision, values and a sense of purpose
Value “collective intelligence” – collaboration and distributed intelligence
Possess a patient-based sense of urgency
Prioritize projects and resources based on the emerging future
Support self-guided, balanced project teams
Develop current and future leaders at multiple levels

15. Teams and Leadership
"Problems cannot be solved by the same level of thinking that created them" Albert Einstein

16. First, a few Thoughts on Teams
Belbin’s Apollo Syndrome:
“A team composed of the brightest is not always the best”
This is counter-intuitive to forming a project team of the best scientific minds

17. Key is to establish a shared vision and a common sense of purpose
Belbin’s Team Roles
“The group which has the greatest differentiation of influence among team members is able to achieve the highest morale and best performance”
“Teams work best when there is a balance of primary roles and when team members know their roles, work to their strengths and actively manage weaknesses”
Key is to establish a shared vision and a common sense of purpose

18. Effective Project Teams
Share common goals and vision
Trust each other
Know their role and respect others
Communicate openly
Seek out knowledge sources
Work in concert (teamwork)
Don’t use command and control to obtain results

19. Kolb’s Learning Cycle
We follow this for science, but rarely for the organization
Observe
< “Blind Spots” based on past experiences
Reflect
< “No time”
Plan
< Based on past assumptions
< Often act directly from observation without reflection
Act

20. “Operate with greater awareness
Scharmer’s “Theory U”
Perception
Actualizing
“Operate with greater awareness
of what is emerging and the possibilities for participating in creating new realities”
- Otto Scharmer

21. Scharmer’s “Theory U” Leading Through Letting Go
Performing
Level 1
Reacting, Downloading
Level 2
Reflecting
Process Re-design
Level 3
Imagining, Reflection
Level 4
Presencing
Sources of Will
Paying
Attention
Achieve results through
practices, infrastructure
Seeing
from Outside
Suspending
Embodying
Prototyping
Enacting
Sensing
From the whole
Redirecting
Crystallizing
A Vision and intent
Letting-go
Letting-come
Presencing
Perceiving
Visioning
Source: Leading Profound Innovation and Change by Prescencing Emerging Futures

22. Organizations are at Different Levels of Systems Thinking
Reacting, Downloading
Level 2
Reflecting
Process Re-design
Level 3
Imagining, Reflection
Level 4
Presencing
Sources of Will
React
Challenge
Response
Re-Structure
Old Structure
New Structure
Re-Design
Old Processes
New Processes
Re-Frame
Old Thinking
New Thinking

23. Must Get Beyond the “Inner Voices”
Downloading
Performing
Open
Mind
Suspending
Embodying
Voice of Judgment
Enacting
Open
Heart
Redirecting
Voice of Cynicism
Letting-go
Open
Will
Letting-come
Voice of Fear
Presencing

24. Effective Leaders Are at all levels of the organization
Enhance the organizational capacity to address the reality they face
Help people discovery the power of seeing and working together
Mobilize energy for a higher purpose and commitment
Operate from their “inner self”
Get beyond the “blind spot” and address complexity through systems thinking
Lead the community to shape its own future through social networking
Sources: Atrium Research, P Senge, O. Scharmer

25. A Few Words on Making Change Last
Beckhard and Gleicher’s Formula for Change:
D x V x F > R
D = Dissatisfaction with how things are
V = Vision of what is possible
F = First concrete steps toward the vision
R = Resistance

26. “You must be the change you seek in the world” - Gandhi
In Summation
Teams are most effective when guided by a common vision and are staffed with competence-based roles who stimulate communication and innovation
Leaders crystallize visions of the future state through systems-thinking, communication, reflection, and “letting go”
Keep in mind GE’s formula for making change last:
E = Q x A
E = Effectiveness of the change
Q = Quality of the initiative
A = User acceptance of the change
“You must be the change you seek in the world” Gandhi

27. Thank You! Michael Elliott Atrium Research melliott@atriumresearch.com