Takeda: The Governance of Strategic Transformation (A)

The case series describes the strategic transformation at Takeda, the largest Japanese pharmaceutical company, with a special focus on the R&D function. Since 2015, the 237-year-old industry dean has reduced his strategic focus from six to three. therapeutic areas, has reorganized its global R&D presence into one Japanese location and two in the US, and has forged more than 180 new partnerships in multiple drug discovery modalities around the world. the world. The new drug line, an important measure of future growth, has gone from 7% partner-based pre-transformation to around 45% partner-based today, and an entrepreneurial and geocentric way of working has been established. At Takeda, the strategic transformation of a generation was condensed into three years. From the beginning of the transformation process, outgoing President Yasu Hasegawa and new CEO, Christophe Weber, made it important to poll the major shareholders and work openly with the union with various stakeholders to find new organizational solutions. When the plans crystallized in 2016, Hasegawa and Weber reunited the Board of Directors, changed their composition and renegotiated their modus operandi to promote strategic dialogue. During the same year, the executive team rallied around internal and external individuals who had the skills and mindset to move the company forward on its new path. In early 2017, executives finally began a review and adjustment of existing R&D structures, particularly with regard to the growing portfolio of partnerships. In other words, Takeda is not just a rare example of a great company reinventing itself, but also a case that shows the importance of proactively addressing the governance of transformation.

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