Above graph from here.
Growth will continue to be a desirable and indeed a necessary business objective.
- Peter Drucker
Peter Drucker, described as the Aristotle of management science, has elucidated a lot on growth. He has reiterated that able and competent management results in growth. Hence, the innate emphasis in all pharma (and nonpharma) companies on growth.
Driven by competence, the Indian pharma industry is growing!
As per MAT June 2010 IMS figures, the pharma industry is showing 20% growth (MAT value of Rs. 43823 crores). Established brands are registering good growth. Vaccine market is zooming. Antidiabetic drug market is the leading growth market segment. The June 2007 MAT value was Rs. 28841 crores and in June 2010 the MAT value of the pharmaceutical (retail) market is Rs. 43823 crores!
Managing growth is a challenge to businesses
Growth is a great motivator for employees and owners! A growing business offers hope of a better and improved future. Stagnation is killing and creates cesspools. Hence, companies and people do (or should) plan for growth and work for growth.
Growth in pharma does not come only by covering more doctors, increasing doctor call frequency, pumping in more samples, gifts and sponsorships ... there are other points that are a necessity in managing growth:
a) Process development
b) Knowledge management
c) People practices
d) DEVELOPMENT OF A VALUE FRAMEWORK AND ACTUALIZATION OF THE SAME
To understand how indisciplined growth can lead to disastrous results to society, Govt., owners, employees, and to the business as a whole ... look at SATYAM COMPUTERS! OR look at the iron ore mining industry of Bellary district (Karnataka). In both these cases, growth lacked a value framework for the organization and industry, respectively. Growth has come with a whole load of problems. There was also no value actualization at Satyam or in the mining industry.
This is why Infosys emphasizes POWERED BY INTELLECT, DRIVEN BY VALUES. At Wipro too, the six values are given a lot of emphasis. MindTree too has a value framework and emotional infrastructure in place to carry on growth.
Growth without a value framework, company culture, people practices, process development and KM (knowledge management) will lead to corruption or breakdown and other problems. Very often growth is associated only with money management, improved marketing penetration and throughput, inventory management, and physical infrastructure (like production facilities, technology etc). However, such a growth has its susceptibilities or weaknesses and can lead to several problems. Managing growth means a lot more.
Knowledge management (KM) refers to strategies and practices of organizations to access, create, identify, document and share insights and experiences. It is a very sophisticated, subtle and powerful science. The ability of KM to produce change and match employee thinking to the market thinking is very potent.
The time is ripe now in Indian pharma industry to take a leaf out from Indian IT industry to learn about managing growth comprehensively, even as IT, is today, celebrating BangaloreIT.biz. Thnks for reading this blogpost, and we warmly WELCOME PRESIDENT OBAMA AND FAMILY TO INDIA, a bit in advance!! Please scroll down and read all other posts, click on older posts, do kindly recommend this blog to your acquaintances.