Pharma careers options – management in China
pharmafile | December 17, 2010 | Feature | Business Services, Manufacturing and Production, Research and Development, Sales and Marketing | China, careers, management, recruitment
Substantial growth is predicted over the coming years in China, so how should the life sciences industry approach appointing the all important general manager (GM) position, and what challenges will they face?
Susan Macdonald, managing director, RSA Singapore, explores this increasingly important issue.
There is little doubt that the life sciences industry is looking East. In response to growing interest in the Chinese pharma market, new clinical research organisations (CROs) and biotech firms are springing up across the country, from Beijing to Zhangjiang High Tech Park in Pudong, Shanghai’s thriving east side.
With multinationals also expanding their Chinese operations, life sciences players and services companies across the entire pharma supply chain are searching for top talent to establish their brands in China before it is too late.
The individual chief executive chosen to guide an organisation through the process of Eastern expansion must possess market insight, cultural adaptability, and tried and tested industry knowledge. However, this does not necessarily mean a preference for local talent over expats, or vice versa.
In fact, the managing directors (MDs) and GMs of today’s Chinese life sciences companies tend to come from three distinct blueprints.
The expat
The expat has strong industry and process/operations knowledge, but less insight of the local market. Though likely to have good experience, expat GMs may come with a limited shelf life. Many will come to China accompanied by families and spouses, and see their move as a time-limited career step – not a lifelong commitment.
Liam Condon was, until recently, a GM in China for Bayer Pharmaceuticals. According to Liam, to be a successful GM in China takes a diverse set of skills. “Management skills are crucial,” explains Liam. “There is such a high energy level to manage, it’s so dynamic here and things are moving so fast. The people are so young – the average age in Bayer China (4,000 people) is 31.”
He adds: “You need to be an organised, structured person, able to impose order on chaos. You need strong interpersonal skills because face-to-face relations in China are very important. You need to be very pragmatic, otherwise your long term strategy will ultimately fail.
“Having experience of working in China will become increasingly important for global HQ leaders,” explains Liam.
“It will be a huge plus in future, in much the same way that this used to be true of the US and Japan,” he adds.
Liam recommends learning Mandarin to any executive considering a move to China: “Learn Chinese, i.e. Mandarin, and the sooner the better. In 20 years’ time Mandarin will be a global language.”
The returnee
Often returning from Europe or the US, these executives have extensive multinational experience, and utilise a combination of international and local know-how to drive their businesses.
Chinese business and society have however changed dramatically since many of these ambitious returnees left for the West in the 1970s/80s/90s and early ‘00s, so they are not immune to the culture shock experienced by some of their expat colleagues.
James Xue worked as a GM in China for Genzyme. For him, China presented some unique challenges due to the speed that the industry was developing, and people sourcing issues.
“I was tasked with establishing a market and company infrastructure for Genzyme in China,” he explains. “The major challenges I encountered in making this happen all boiled down to people – more specifically, overcoming the shortage of local management talent in order to adequately staff up and grow a fully functioning local operation.”
James adds: “The sheer pace of business growth in emerging markets like China means talented managers expect short reward cycles, and also have quite high expectations for personal growth. It is not surprising to see people rewarded with major promotions every two years, and because start-ups simply cannot guarantee such growth opportunities, finding a stable and dedicated management team becomes a major challenge.”
The local
Some international operations have discovered the benefits of localising their workforce by starting at the top and appointing a locally-educated GM. These individuals can offer vast local intelligence, but can run up against challenges of integrating into traditional Western company cultures.
Henry Lee, who works for Eisai China, was born in Hong Kong, and originally started working for US companies as a sales rep. He feels local GMs can offer several benefits over expat or returnee GMs. “For example, the government keeps changing its policies. It’s difficult enough for me as a local to keep up with the changes and I’m here on the ground and tuned in automatically to change. The other side of it is that I know everybody here and they know me. I have a strong network and I believe I have the trust of people in it.”
In addition, local GMs also offer an in-depth knowledge of the Chinese market, as well as an ability to understand and communicate in Chinese.
Challenge
For life sciences companies in search of the right individual to lead their Eastern expansion, there are distinct benefits in pursuing each ‘type’ of executive.
For individuals looking to steer the future of the life sciences industry, leading an expanding Chinese operation can be a complex, but highly rewarding challenge.
Susan Macdonald works for the RSA group and is the managing director of RSA Singapore. Contact: susan.macdonald@theRSAgroup.com Phone: (Singapore) +65 6533 5708
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