As we propose the ‘Gross-to-Net Standard,’ we must discuss the idea of ‘managing revenue through processes.’ There are two parts to this, process management and process governance, both to which an ‘organizational approach’ lend a heavy hand. Let’s take a look at the players in the organization.

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And as a finance executive, you are most likely sitting here with the idea that once you’ve proposed a revenue management solution to your management, one that will minimize revenue leakage, cut costs, allow you to report and function on a level you never have before and all the while pleasing auditors and corporate management, that your counterparts and their teams have no choice but to buy-in like you have, right? Well, maybe so, at this point in time; but you will think differently after I tell you what will be required of your organization next and my observations about this very thing. For additional, specific discussion on the topic of the organization’s place in business process management, stay tuned for a post regarding Cross-Functional Process Mapping.

Disciplined business process management. Discipline in the sense of you, the strategic decision-maker of your organization ensuring to get and keep everyone in your organization on-board, at all levels, across all business functions required. All involved must be made comfortable with new and/or changed processes and their place and participation required; what is expected of the individual and the group must be clearly stated. My observation of this on past engagements is such that initial buy-in is easy based on theoretical demands of each group and/or individual, but upon mapping these new or amended processes out and putting into practice, supporting attitudes change, enthusiasm drops off and even managerial support can be lost due to stress on resources or even lack of understanding the end goal. This solution I am proposing will foster the effective communication necessary in order to successfully manage the attitudes, personality, morale, and most importantly productivity within each functional group. Cross-functional awareness, organizational communication, business resource planning and management are a few of many more related, key topics that I hone in on in future posts and presentations.

RM Assessment and ROI Model

Prior to agreement by your organization, it must first be calculated and communicated, as to what all the players are gaining by embarking on this new venture. Perhaps even before your own buying-in, you will need to do an assessment of sorts on your current organization and its revenue management practices.

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These questions are part of a more intense deep-dive, assessment even, in which I am suggesting as a place to begin for you and your organization.

An Adaptable, Predictive, Better Way

And the final question you may want to ask: Why take such a holistic approach to my revenue management problems? Why place so much emphasis on business process and change management versus letting my business adapt to whatever solution I currently have implemented or plan to implement? Why consider implementing the ‘gross-to-net’ standard?

Upcoming Challenges to Current GTN Practices
Profitability Dissolution
Competitive Model
Price Erosion
Patent Cliff
Increasing Generic Product
Global Emerging Markets
Speciality & Boutique Firms Entering Market
Vaccines
Cash Reporting Requirements
Biosimilars in the US
Product Extensions
Health Care Reform

Well, I will give you the why and leave you with this: In this crucial time in our economy and more specifically in your industry, facing such unconsidered challenges to the gross-to-net world as discussed, your organization, your revenue management model must be able to adapt and change with the landscape. Yesterday or even today’s model will no longer cut it. Focusing on a solution that emphasizes people and processes in relation to changing technology, policy, complexity of the business, etc., is the only way to stay current. This is the only way to continually stay relevant. Above all, you will consider such an all-encompassing option, because you can’t, or you simply won’t be able to afford not to.

10 Common Pitfalls in Quote-to-Cash Business Processes For Life Sciences Organizations