Implications of the war in Ukraine
With multiple of the content in every corner of social, hard and digital media most of us are following the news on War in Ukraine. How does this translate into the backstage of the Pharmaceutical and Life Science industry World Wide and in particular in EU and CEE who are the closest geographically and infrastructure wise to the boarders with Ukraine and Russia/CIS?
What is happening at the backstage and in the meeting rooms of the HQs
in Switzerland, Denmark, Germany, UK, France, Austria, Czech and many other EMEA headquarters of the Life Science, Medical Device and Medical Disposable companies?
What are the scenarios and short term, midterm and long term implications of the decisions which are made today?
We tried to filter some of the elements of the possible answers to the above mentioned questions through the realm of the Interim Management algorithms and methodologies with Mr. Anton Leschenko, Senior Advisor EIM Executive Interim Management CEE.
Anton Leshchenko brings more than 20 years of experience as senior professional and consultant within the sector of Life Science, Biotech, Medical Disposables/Devices.
He lived in three continents and worked with Big, Middle Pharma and Start-ups, where he covered the Global, EMEA, and emerging markets.
He is a father of two and prefers nature to the urban environment.
Without making any judgment let’s have a look at companies from Big and Middle Pharma who have made announcements related to their operations in Russia for the past 4 weeks since the start of the war:
- Big pharmaceutical companies have massive operations in Russia, from manufacturing to running clinical trials and selling drugs
- Several hundreds of global companies have pulled out of Russia but for the pharmaceutical industry, the leaving has been noticeably slower
- According to some sources, companies have pulled some nonlifesaving products, like Cialis and Botox
- A key player in the pharmaceutical industry confirmed, it is refocusing its operations on helping people with cancer and diabetes
- Some of the companies, that manufacture in Russia said they’re donating profits from Russia to humanitarian efforts
- A global player has suspended marketing in Russia but is continuing to manufacture at a facility in St. Petersburg
Some critics say the industry should pull out of Russia entirely. Some practical CEOs, explain a balanced position:
We have decided to make our own investigation to better understand the situation and use these data to foresee key geopolitical scenarios in the Regions of CEE, Ukraine and CIS/Russia as separate markets.
For that, we have used our global network of the top 20 Big and Middle pharma Board level managers in all the Regions on a vertical scale and went deeper to understand what is happening at the meeting rooms and senior level of the same companies in the headquarters on the horizontal scale, again using the network and the EIM Community who work there, to better understand through the eyes of the Interim Management the immediate implications to the existing infrastructures in those geographies in terms of:
- Human Resources
- Sales Channels and Demand
- Supply Chain and Logistics
- Business Models and Risk Mitigation
Regional CEOs, and HR professionals are already engaging Interim HR Managers to support their organizations in coping with the onboarding and the integration of this huge workforce.
The return to offices after Covid was alone a transitional challenge that required much effort and attention to cope with. The ongoing integration of 2+ mln people from Ukraine all over Europe, but mainly in the CEE region represents additional challenges, that can not be simply overcome with the capacity and know-how that many companies have available. Experienced Interim HR Managers know exactly how to build and integrate cross cultural teams.
As a globally operating firm, we already have several interim missions running, where experienced “localized” interim managers are supporting our clients. Some of the examples:
- Business development & market entry Africa, performed by an interim manager from UK who moved to Kenya 10 years ago, after finishing his career as business development director for a global player
- Definition and implementation of a complete sales organization and sales channels after a Carve-out from a global player in Europe
- Market Study and preparation of a suitable Market Entry for a Private Equity considering entering a new market
Interim Supply Chain Managers covering all the aspects of
- Strategic purchasing, supplier selection, negotiations with supplier,
- Relocation of complete supply chains from Asia/ Russia to Europe, or from USA to Mexico,
- Inbound/ Outbound Logistics
- Warehouse Operations
- ERP implementation of SCM models
are currently in highest demand of all functions. We currently have several projects relocating the supply chain from India, China to the CEE Region Our interim manager from Poland is optimizing the warehouse operations in the USA; Interim Supply Chain Manager from the Czech Republic is redefining the European Supply Chain footprint of an automotive producer, Interim Project Managers are finding new premises (warehouses) to stock additional raw materials, and the list could go on an on….
Rework of market positioning and product portfolio, Overall adjustment of the companies operate and communicate, and Strategic projects in general are the domain of #oneEIM.
With 30 fully integrated offices, we cover the world and are ready to support clients in any transitional challenge with one of our 30.000 senior interim managers.
Let us discuss you transformation challenges
Bohuslav Lipovsky, Managing Partner
EIM Executive Interim Management CEE
Together we can find the solution you are looking for
Bohuslav leads companies and their managers through complex changes resulting from crisis, restructuring or post-merger integration. He focuses on working with private equity firms and international corporations. His strength lies in developing a transformation strategy and leading of multi-cultural teams.
Bohuslav has international experience, he has been active in interim management for several years, speaks several languages, and has extensive experience from numerous projects.