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Management article
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Reference no. U9705A
Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 1997

Abstract

Conversations with leading CEOs from the biotechnology industry unearth lessons for success with a far larger business application than the biotech field. One highlight is that when investors can''t quantify a company''s value, the proxy they use to gauge prospects is company leadership. Also, even though research and development costs are enormous, and it would seem prudent to devote resources to only one or two highly promising products, the uncertain nature of drug discovery makes it important to keep the pipeline full. Of primary importance is hiring the right employees and creating an organization that fosters creativity and intellectual adventure. Outstanding people need adequate authority to create an organization that meshes employees'' innate motivation with the results-oriented mindset of the private sector.

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Abstract

Conversations with leading CEOs from the biotechnology industry unearth lessons for success with a far larger business application than the biotech field. One highlight is that when investors can''t quantify a company''s value, the proxy they use to gauge prospects is company leadership. Also, even though research and development costs are enormous, and it would seem prudent to devote resources to only one or two highly promising products, the uncertain nature of drug discovery makes it important to keep the pipeline full. Of primary importance is hiring the right employees and creating an organization that fosters creativity and intellectual adventure. Outstanding people need adequate authority to create an organization that meshes employees'' innate motivation with the results-oriented mindset of the private sector.

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