the mount vernon report fall 2008 - vol. 8, no. 3

8/8/2019 The Mount Vernon Report Fall 2008 - vol. 8, no. 3

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Our Tolerance for Risk

People say actions speak louder than words,and that reputation is the result of anorganization’s actions.

With the recent demise of Lehman Brothers, thefederal bailout of Fannie Mae, Freddie Mac andAIG, and the discounted sale of Morgan Stanley toBank of America, the landscape of the financialindustry and Wall Street is forever changed. Andthose left standing will have to work very hard tomaintain strong reputations in a tarnished industry.

Some industries may face greater challenges when it comes to managingreputations. For example, a plumbing company risks damaging property,

while a bank risks mismanaging customers’ asinherent risk depends on the nature of the busin

Pharmaceutical and biotechnology companieparticularly challenged in maintaining strong rtions – these companies provide treatments thapeople’s bodies. Sounds pretty risky, and it is.

While polls reveal that while the majority opopulation believes pharmaceutical companiethe public’s best interest at heart, there’s still population of skeptics. A 2005 Kaiser FFoundation poll found 70 percent of people

pharma companies “put profits before peopl1997, 80 percent of respondents to a Harris Interactive poll spharma industry was doing the right thing for customers .

F a l l 2 0 0 8 v o l . 8 n o .

“Issues Affec t ing Reputa t ion Management and St rategic Communica t ions”

Solving the Mystery of Science and Reputation

Risk and Reputation in Biotech and Pharma

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Science and the mysteries of biotechnology are shrouded in theseemingly unfathomable breadth of numbers. Humans are comprisedof billions of cells and infinite complexity created over billions of years, so conversation about the fleeting aspects of reputation ishumbled by these numbers. Yet the veneer of reputation is our firstexperience in any communication and often the sole basis for decisionmaking. People hire, invest, join and believe in companies based uponthe intangibles of an idea—reputation.

We make decisions based upon the track record of the management,star scientists or persona of a lab, but how do we ascribe trust to acompany that is mostly in the discovery business? Does a track recordin science increase your chance of future discovery? History says no.Great discoveries have more often come from unknown people thangreat companies. Do they wish us to invest in or work for them basedupon a promise? Do we go along based on blind faith? Hardly.Science is about proof. Document your findings and have your work

peer-reviewed. So far, the best way to establish reputation in thebiotech field is to attract the very best and brightest scientists andprovide them with necessary funding while maintaining a quirkycombination of focus and flexibility. It also helps to discover a cureor new therapy for mankind. Science is an endeavor that thrives incollaboration and yet it may be individual drive and diligence (andblind random luck) that one scientist achieves greatness while otherslabor in obscurity. The famous of science were just ordinary untiltheir discovery or work leading to some breakthrough made themfamous. If you can’t do this well, you might acquire or be acquired bya company that can.

Competition for brilliant talent is intense. While the supply is the need is conversely large. So it is important that a copromote its culture of innovation and excellence to prospemployees and investors—or as countries compete for talent, ancountry may need to develop its reputation for creativityaccomplishment. Would you rather build a biotech facility in TKan., or in Cambridge, Mass.? Some places have reputatcenters of excellence. As the ancient centers of commerce inworld may have developed in Venice and Brussels, thus censcientific discovery have sprung up close to major universitielocations with access to capital and the ability to attract and nenlightened experts. The Massachusetts Biotech Council has good job assuring Massachusetts’ future as one such cenexcellence.

Darwin looked at evolution as life coming out of a primordialReputation is like that – clarity comes out of complexity. Repuis based on the composite of experiences to which people havexposed.

In this issue of theMt. Vernon Report,we scratch the surface of treputation of biotechnology. We present some new thinking why we need communication to advance science and revisiproven ideas for creating trust. Please take a few minutes awthe microscope of the natural world to examine the DNreputation.

Peter Morrissey can be contacted at [email protected] Excellence: www.morrisseyco.com/blog



Best Practices

Biotechnology and pharmaceutical companies have always beenresponsible for protecting their patients, and that remains true today.The challenge is that, inherent in their business, is the risk that a patientcould be harmed by a product. How can companies maintain thisreputation when a therapy has an unintended adverse effect, duringtrials or after it’s already on the market?

Tylenol® is the textbook case study; in 1983, Johnson & Johnson’s (J&J)premier product, extra-strength Tylenol, was tampered with and sixconsumers died of cyanide poisoning. The company opened its doorsto the media and communicated honestly and openly, even when theinformation could have been harmful. For example, the company statedno cyanide was used on its premises, and then corrected that statementa day later. Instead of embarrassing the company, J&J earned points foropenness and gained credibility.

The company recalled all extra-strength Tylenol capsules (31 millionbottles), suspended advertising, and reached out to health careprofessionals. While J&J knew the tampering had not taken placeduring the manufacturing process, it did not deny any connectionbetween the product and the murders. The company offered a$100,000 reward for the killer, and when it surveyed consumers, foundthat 87 percent of users realized J&J was not responsible for the deaths.Supported by a huge media campaign about its commitment to safety, Johnson & Johnson successfully relaunched the product in atriple-safety-sealed, tamper-resistant package. However, with anotherpoisoning of extra-strength Tylenol caplets in 1986, the companyceased production of the capsules.

Technology was vastly different in 1982 – J&J received much of itsinformation from calls coming in from the media, and communicatedurgently with hospitals, doctors and distributors through telegrams. Fora pharmaceutical or biotechnology company today, the speed at which wedistribute and receive information make effective reputation managementincreasingly challenging; we have more communication channels than everbefore, and less control over information. With blogs, social networkingand the Internet, information is distributed almost instantly to any andall audiences. These channels enable rumors and speculation, whichspread like wildfire and can have a lasting impact.

Best practices for a pharmaceutical or biotechnology company whosedrug has an unintended adverse effect are the same as for any companyfacing a crisis. In communication planning, companies must consider all

audiences, as well as tactics to quickly and effectively communicate withthose audiences.

Gaining Trust

It takes time and a concerted, consistent effort to build a strongreputation and engender trust. Some companies are disclosing moreinformation, and some focus communications on their charitablecontributions, like Merck and its efforts combating River Blindnessdisease.Some active steps companies are taking towards increasing consumertrust include :

• Pfizer recently began disclosing grants and contributions(political and non).

• AstraZeneca redesigned its website to make clinical trial infoeasier to locate.

• And on behalf of its pharma/biotech clients, Porter Novelli dnot issue communications using third-company affiliates, anuses celebrity spokespeople when they are actual patients.

Pfizer, for example, has consciously changed its communicatioto be more open. The company has implemented: top-tier joaudits/surveys; a journalist outreach engagement program bjournalists and bloggers in to learn about the company, and newsrooms; journalist education initiatives on topics suchdifference between side effects and adverse effects; an agbringing 15 US PR agencies in to Pfizer to learn about the combusiness and journalist engagement strategies; and a weekly ukeep worldwide communications managers on the same page.

Reputation, and building and maintaining a strong reputation,be something your company or organization works towards dsomething you think about only in times of crisis. There arstrategies that can be done proactively so that if and when disastrike, it’s merely a bump in the road and not a defining mome

~Megan Pag

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Steps to take include:1 Be honest – communicating in an open and timely manner will help

you gain credibility and respect.

2 Develop a clear, straightforward position – let stakeholders knowwhere you stand.

3 Involve top management – they’re the human face of the company; they must be visible and informed.

4 Activate third-party support – objective credentials will help you gainsupport.

5 Establish an on-site presence – when the media covers a fire or a riot, they don’t do it from the studio; if your situation is site-specific,executives, particularly key spokespeople, should be on location.

6 Centralize communications – identify a spokesperson/spokespeoplewho will speak on behalf of the company.

7 Cooperate with media – it’s likely a reporter will print a story with orwithout your input; working with them will ensure your company isrepresented.

8 Remember employees – they can be your best ambassadors and yourgreatest ally; keep them informed.

9 Maintain perspective & look ahead – keep a level head; acknowledge the crisis, and focus on what the company is doing to address thesituation.

10Monitor and evaluate the process – survey all publics consistently todetermine which aspects of the program are successful, and bewilling and quick to alter those that are not resonating.



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“Every great advance in science has issued from a new audacity o~John Dewey (noted education psychologist)

“Nothing in life is to be feared. It is only to be understood~Marie Curie

In the last edition of The Mount Vernon Report we examined theimportance – and power – of corporate social responsibility. As thelead article stated: “It is no longer good enough to produce the best,cheapest widget; you must also function in a socially responsibleway” (Managing Your Reputation Through Social Responsibility,

Summer 2008). Cambridge, Mass.-based Biogen Idec, one of the largestbiotechnology companies in the world, has found a unique wayto integrate social responsibility within their walls.

In 2001, Biogen Idec CEO James Mullen andthen-Cambridge Mayor Anthony Gallucciowere discussing the need for newprograms that excite young studentsabout science and encourage them topursue it in school and as a career.Particularly troubling to Mullenand Galluccio was the UnitedStates’ science and math educationstandings – a problem thatpersists today. The Organizationfor Economic Cooperation andDevelopment’s most recent trien-nial Program for InternationalStudent Assessment demonstratedthat the U.S. fell below the OECDaverage in both science and math. Ourcountry’s score in science was worse than72 percent of the OECD countries. The mathscore was also disheartening – the U.S. placedbelow 83 percent of OECD countries.

Just one year after Mullen and Galluccio’s conversation, Biogen Idecopened its first Community Lab – a 1,100 square foot state-of-the-artlaboratory space dedicated to educating local students and teachers at nocost to the community. Charged with transforming today’s students intothe discoverers of tomorrow, the Community Lab is an important part of

the fight to improve U.S. education. The program’s success in Cled Biogen Idec to open another Community Lab at its researchin San Diego, California.

With access to top-of-the-line facilities and modern equipmeCommunity Lab helps bring science to life. Students par

year-round in hands-on experiments like amplifyinexamining their own DNA and diagnosing a s

patient based on genetic profiling. Biogen Idcreated full-time staff positions to run the

and also encourages employees to voltheir time at the Lab as student men

and role models. These volunteerswork alongside teachers to brotheir knowledge, create forumshare best practices and stay abof the most recent developmenbiotechnology education.

In addition to building our futworkforce, the program supplocal communities, which is w

makes it so successful. SinceLab opened six years ago,

10,000 middle and high schstudents, 400 teachers, and 300 Bi

Idec employee volunteers have wtogether to make science exciting.

Biogen Idec understands that education community concern – and as part of our communi

company has acted in the spirit of integrity and innovation. Beyonbeing an admired corporate citizenship effort, Biogen Idec’s CoLab is making a real difference, and the company intends to contining the Lab to reach and inspire even more students and teachers e

~Sarah Gerr

Leading ByExample

B I O G E N I D E C ’ S C O M M U N I T Y

L A B A D D R E S S E S N AT I O N A L

E D U C AT I O N C O N C E R N S

the mount vernon report fall 2008 - vol. 8, no. 3

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