Page 2 - October 2020- CommExpert Digest

The CommExpert Digest You contract with good intent, but if I think the future is good for Nutrition as
well—We were there at a time when you
somebody wants to be unfaithful to the spirit
spoke with Daniel of that partnership, they can really hurt you. could hardly find anything on the shelves,
and I don’t think people will easily forget
So, we have learned that sometimes we
Salvadori, Executive Vice need to be more exacting in our contract that. Much like 9/11 and WWII, I think this
President of Abbott language. Your distributor may be run by a pandemic will [greatly] shape our lives. I
am not a pundit, but I know that people are
Nutrition. Read his take on noble gentleman today, but it may be shopping online more than ever. I don’t
managed by a different professional
anticipating impact below: tomorrow. And Legal is a key part to enable think COVID created this trend; it just
the contract structure so you are prepared accelerated it. I think COVID has been an
Within LCO, we have been trying to for the worst. Julius Caesar said: “Si vis accelerator of many trends. If you were
define what impact is and what it means pacem, para bellum”. In order to have peace, going to get divorced or fall in love, now
to be impactful. As a corporate officer prepare for war. That is a great analogy to that you’ve been locked down with your
who leads one of Abbott’s largest what should happen in a good contract. In partner, you are going to get a divorce
divisions, what does it means for the both cases—success and the failure— faster or fall in love faster. So, COVID has In EPD, you have to be careful about
Legal division to create impact for your what’s important is to have honest dialogue been a great accelerator of many things consumer engagement through HCP,
business? between Legal and Commercial, because at that would have happened eventually. I IP, and the regulatory timelines. Those
the end of the day, we want the same thing. think some of this impact will stay, and the can really change a lot. In Nutrition,
I really think it comes down to two principles. consumer will [remember Abbott as a] the first thing I have found is this is a
The first one is that Legal can enable our I know we want to avoid talking about powerhouse brand name. This has been very fast environment. What was okay
division to win. The second principle is that COVID, because it is all we ever hear a net positive for Abbott, and I think the yesterday may not be okay tomorrow,
Legal can protect the business. What does it about, but COVID will undoubtedly future for the company is a bright one. so, your reaction time needs to be at a
mean to be an enabler? We want to win have an impact on not just Abbott but completely different [speed] than what
market share by providing our customers with the world at large. What do you predict You have lived, studied, and worked I used to have in EPD where I thought
better products than our competitors. in several different countries. For I was pretty quick. And that requires
Sometimes we do that by having a superior for the future of Abbott as a result of whose scope of work is global, how you to be even more careful about all
product which has a novel ingredient. Legal COVID and the impact it has had on do you believe your global the legal implications of what you do
can be a great partner to figure out [how we] our lives? experience has affected your ability or don’t do. Different industries require
can protect that ingredient. Do we have any to predict and anticipate trends in you to have different kinds of
way to patent that new ingredient together For Abbott, this has been a positive, our industry? sensitivities and awareness. Overall
with our formula? If not, can we partner with because the brand name recognition (thanks though, I consider myself very
Legal to find innovative ways to have especially to what our colleagues in fortunate to have had the experience
exclusive supply for Abbott to have a Diagnostics have been able to accomplish) I wish I was good enough to anticipate to see two apparently similar but very
competitive advantage? The second has been incredible. Abbott is now a trends in the industry. I think you are never different environments.
[principle] is protecting the business from household brand name like it has never been good enough—you can always do a better
adversities, helping us see risk and potential before. I love the ad that our colleagues in job. I always continue learning, and the
issues where we may not be trained to see Public Affairs put out [that] reads: “At a time second you think you know, you get What are a few takeaways that
them and then helping us avoid those pitfalls; when the world is testing us, we, Abbott, are another surprise, like COVID. Living and you would like to give people in
[that’s the] other great impact that Legal can testing back.” I love that ad, because I think working in different parts of the world Legal so that we can ensure a
have on our business. that is so much what Abbott DNA is about. gives you more perspective. You successful and impactful
When there is a crisis, the best of Abbott understand how different environments relationship between Legal and
Can you provide an example of a time comes out. When the world was faced with need to be dealt with [varying] degrees of Business?
preparedness (sometimes suspicion), but
at Abbott when your function and Legal the HIV pandemic, that is when Abbott came at the end of the day, I will say two things:
successfully worked together to out swinging and ascended to be a key Number one, at the very core, companies Think as if this as if it was your own
anticipate a positive or negative trend leader in healthcare. And the same are made of human beings, and human business—you need to find the right
happened now, and I think the world is not
that would significantly impact the going to forget the great contribution that beings are human beings. They have their balance of risk. You don’t want your
business? If not an example of Abbott has made in record time. This leads nobleness, and they have their pitfalls, little business to go down due to a
success, then do you have an example me to believe that the future for Abbott and those are the same [no matter where huge storm, so, you need to keep the
in which your function and Legal failed should be rosier than ever before. And as you are]. So, this is my second point: business safe, and stay within the
boundary of law, but at the same time,
and instead learned a lesson? much as I have mentioned our colleagues in While there is a common ground for us as you need to understand where and
Diagnostics, this doesn’t take away what we human beings, the difference is in the how to take risk. And to take risk
Legal has been a key enabler of success [for] continue doing in the rest of Abbott. Our nuances - and understanding those doesn’t mean doing something you’re
nuances is what sometimes makes the
our negotiation [with] the supplier of HMO. colleagues in Devices have continued difference between reaching an not supposed to do. It means “Okay,
We have a successful contract in place that bringing to market great innovations like the agreement or not. You need to maybe this reimbursement clause is
has [exclusive] guarantee for supply. This Mitraclip and Libre 2 & 3. Alinity was rolled understand that some unspoken rules or something I should give up, because
out right before COVID, but that doesn’t take
contract has enabled [the Business] to create away from the innovation of that equipment cultural norms could make a huge the benefit of the risk is greater in the
a great image for Abbott in Pediatric Nutrition for hospitals, especially [when] we are difference; sometimes, it can breach an balance of things to make me more
worldwide. Legal has been a partner ALL struggling to obtain significant testing ideological difference, so, cultural competitive.” In the ideal world, we
along the way in what [has been] a very capabilities in a small space in record time. proximity helps [us] bridge ideological would all like to compete freely and
have no business risks. The reality is
tortuous and difficult road to victory. [Other] If you think about emerging markets and how differences. I think having lived in different that in every decision you make—
examples of success include Legal [helping] hard they have been hit by COVID, Abbott is regions has helped me be more sensitive whether you cross the street, you get
us navigate a lot of [claims] challenges. We bringing them generic-branded medications to those cultural differences. It’s very behind the wheel of your car –you take
get those challenges all the time from our at a fraction of the cost of an originator drug. important for all of us to know those a certain degree of calculated risk.
competitors, and we want to continue being EPD is a partner for all of those households cultural differences, how to bridge them, You don’t want to go above the speed
and how to dialogue, because at the basis
able to explain to consumers the strength of that have lost income in emerging markets of any negotiation, you need to have a limit; that’s illegal. [But] can you drive
our products. Legal has been a very helpful where [most things] are out-of-pocket. neutral understanding [of one another]. 42 mph versus 30 mph when the
partner [in] explaining to the authorities why speed limit is 45? You are still within
we should be able to continue At Abbott, you have held executive the limit, but you are taking more risk.
communicating our products’ benefits. Our If this was your own business, what
competitors feel that those [challenges] will positions at different divisions. Can would you do? You wouldn’t wreck
discourage us from continuing [to defend] the you talk about how working within your car [speeding], but you probably
different businesses of the same won't drive 10 mph, otherwise, you will
claims on our products; having a good company has shaped your business be the last one to arrive—that’s what
partner in Legal is what enables us to strategy and decision-making? Legal & Business should think about.
continue fighting and being out there with our The other thing is keeping an open
messages. There have been examples dialogue. Share what is on your mind
where we have learned a couples of EPD and AN have a lot of things in openly, honestly, and in a forthcoming
lessons—there have been some distribution common but also a lot of differences. They way, because at the end of the day, I
are two consumer-facing businesses but
agreements where we rely on partners in completely different ways. What I have am of the convention that every
around the world to distribute our product in gathered is that different industries human being is intrinsically good, and
countries where we don’t have the presence require you to focus your antennas on I may be naïve, but I think that through
or skill to do so ourselves. different things. honest dialogue and cooperation, you
can achieve a great deal.