OWP liVe REPORT

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and more deeply, through the data-based solutions, cemented the market position of Zuellig Pharma. The company did also take on a new B-to-C focus: “We created a new division called CareConnect, which combines third party administration services for insurance companies and self-insured corporates, alongside patient care services for their millions of members. This is a relatively new departure for the company, which has historically been focused exclusively on B-to-B,” said Davison. Operational excellence and seamless business processes are the name of the game in the pharmaceutical logistics business and IT capability as support was absolutely critical for the transformation agenda. “The margins in the pharmaceutical distribution business are razor thin. You need more than operational excellence to stay ahead of the curve,” said Professor Lange. Digitization was a major step for Zuellig Pharma, which enabled relationships with clients and customers to be taken to a whole new strategic level. The high-performing ERP platform SAP HANA became the backbone of the digital transformation. “We had to change many things to get this right,” said Davison. “But fixing the IT platform was life or death for Zuellig Pharma.” Operations

As a result, Zuellig Pharma was an example of resilience that navigated the ups and downs of 2020 and remained true to its mission of making healthcare more accessible despite the toughest of challenges. “Davison understood all the key steps of Zuellig Pharma’s digital and cultural business transformation,” said Professor Jelassi. “By keeping the end goal in mind,

you too can determine which type of changes will help your organization get to where it wants to be.”

Organization

Organizational structure, incentives and culture are perhaps the most vital part of ensuring a complete organizational transformation. “We had big gaps in our functional line-up,” observed Davison. “Our top 50 managers had very different perspectives on what was going wrong with the company and how we could fix it.” Davison also identified systematically the key tasks that managers were gifted at addressing. Carefully, he shifted their roles and responsibilities and reset their careers in Zuellig Pharma. “If you want to develop your people, empower and encourage them to use the freedom within their frame, and ensure they have the capabilities to perform,” said Professor Lange. “Win people’s hearts to penetrate their minds,” said Davison. “For us, this was the goal of making healthcare more accessible for everyone and bringing top drugs to countries in Southeast Asia that were in need. This mission spoke to head and heart.” By following the DBT Piano framework with its fingers on nearly all the keys, Zuellig Pharma was in excellent shape by 2019: It boasted 15% compounded annual profit growth from 2014-2019. When the pandemic hit earlier this year, it proved resilient and well-prepared.

KATHARINA LANGE & TAWFIK JELASSI