R&D Transformation: Supporting an 18-month Transformation to Reduce High Overhead of Divested Project Portfolio

Situation

• Leading global Medical Device company was forced to significantly reduce overall costs, optimize its project portfolio, and increase the overall effectiveness of the R&D function
• Recent pace of new product launches had been slow, but numerous promising products were in the pipeline

Solution

• Launched and structured an 18-month overall R&D transformation program, thereby introducing a zero-based budgeting and cost/headcount reductions
• Performed a project portfolio prioritization of process, templates, and systems consequently leading to the set-up of organizational changes (e.g., interfaces between R&D, MA, RA and clinical development to commercial functions)

Impact

• Realized significant cost savings and headcount reductions in areas that do not affect key product launches as well as streamlined organization and improved interface to the commercial function
• Established the project portfolio prioritization process as a regular activity performed internally every six months
• Executed operational effectiveness program instilling continuous improvement spirit