The ‘People Factor’: Sourcing, Nurturing, and Retaining Talent

"You’re building the airplane while you’re flying it, but are you repairing it en route?”

This was just one of the ways in which Noël Auguston, managing director at Russell Reynolds Associates, framed the issue of talent management at a Vanguard Network Life Sciences CEO Forum late last year in Boston.

Auguston kicked off an animated session titled “The People Factor” by outlining all the ways in which the CEO role in biopharma has become increasingly complex—from a fractured economic environment through geopolitical challenges, hybrid workforces, and technological advances such as artificial intelligence (AI).

Noël Auguston, managing director, Russell Reynolds Associates

Talent, Auguston stressed, is the main engine driving organizational success, and the industry’s explosive growth during the COVID-19 pandemic “from 400 public biotechs to 800,” she reported, has only placed more pressure on CEOs striving to build out their companies.

Given such a volatile landscape, it is critical that leaders monitor and assess their organizations continually to ensure alignment with evolving priorities. And while “some folks are naturally hard-wired to think very opportunistically about talent, to constantly reevaluate their teams,” noted Auguston, such a mindset does not come easily to everyone, she added.

Nevertheless, those C-suite leaders in biopharma who avoid proactive talent management are setting themselves up for serious problems down the road.

“The biggest pitfall we see is waiting too long and just hoping that something you know is festering will get better,” said Auguston. “I’ve never had a client say, ‘Oh my gosh, the CFO turned around—it wasn’t going well, and all of a sudden, it’s great.’”

Given the general shortage of seasoned talent, ”finding the “been there, done that” CEO is the exception rather than the rule,” Auguston asserted. Hence, the role of an organization’s board of directors becomes even more crucial. As board members, these often experienced professionals who have witnessed the ups and downs of the industry can offset skill gaps in leadership teams.

As critical as leadership development is for the long-term success of a biopharma company, it often gets deprioritized due to short-term pressures, Augustin concluded.

“How do you convince someone to spend more time figuring out a successor when their pants are on fire?” she posed.

Following the engaging back-and-forth, Auguston reiterated the key points of her address, which included:

• Conscious strategic thinking. She emphasized the importance of creating time within organizations to strategically evaluate and plan for talent needs. Leaders should seek out great people who can enhance their teams—even if the need isn’t immediate.
• Proactive talent management. Successful companies, Auguston noted, are proactive about assessing and reassessing their teams. They act decisively instead of waiting for issues to worsen. When working with firms such as hers, Auguston stressed the importance of alignment and clarity around role definitions and success metrics.
• Critical need assessment. Auguston encouraged leaders to critically evaluate what’s working and identify specific gaps. Over-hiring too early can strain resources—she often advises Series A companies to consider roles such as vice president of finance or a strong controller rather than hiring an expensive CFO, for example, prematurely.
• Avoiding the “unicorn” trap. Auguston highlighted the risks of searching for a single hire to solve multiple organizational challenges. No one person can fix every issue, and trying to find such a “unicorn” potentially sets the hire up for failure. Instead, leaders should focus on targeted solutions to specific problems.
• Decisive action on top talent. Auguston underscored the importance of moving quickly when the right person comes along. While perfection is rare, acting decisively to secure aligned talent ensures the company keeps progressing. This intentional, forward-looking approach is essential for navigating today’s dynamic life sciences market, she added.

AI and the workforce

The Vanguard Network forum continued with an informative session led by Viq Pervaaz, senior vice president at the New York City Economic Development Corporation. Pervaaz reflected on the challenges and opportunities of integrating AI into life sciences, emphasizing the importance of clarity in conversations about AI. He found it frustrating when terms such as AI, machine learning (ML), and deep learning were used interchangeably or without specificity, often causing confusion instead of driving meaningful outcomes.

Viq Pervaaz, senior vice president, the New York City Economic Development Corporation

Two of the first priorities Pervaaz identified in his current role were to define these terms for his organization, and to explore how AI can intersect with practical processes to deliver tangible benefits. As an example, AI could speed up drug discovery for startups, or enhance patient retention for more mature companies in the clinical development stage.

Pervaaz noted that while healthcare and life sciences have been relatively slow to adopt AI in comparison to other industries, some major players are making progress. He cited Johnson & Johnson, Bristol Myers Squibb, and Sanofi as having “already created partnerships with AI or ML organizations,” and using those partnerships to “accelerate either drug discovery or the clinical development process.”

Pervaaz dismissed the notion that AI and traditional life sciences operate in separate worlds, likening them instead to complementary components, “like chocolate and peanut butter in a Reese’s Cup.”

This amounts to a fundamental shift in mindset regarding the role of AI in biopharma. Rather than viewing AI as an auxiliary tool, Pervaaz proposed that it should be treated as part of the workforce—essentially akin to “considering a robot as part of your talent pool.” This requires investing in the development of AI; evaluating its performance; and ensuring it functions effectively within its intended role. By incorporating AI into their organizational structure, and maintaining it as one would an employee, companies will be better able to leverage its potential, Pervaaz believes.

He qualified his position by highlighting the importance of using AI to complement human talent rather than replacing it altogether. Pervaaz argued that AI should augment capabilities—such as helping medicinal chemists analyze data or refine experimental directions—and that its performance needs to be actively managed and improved. Central to this perspectiveis the understanding of AI as a dynamic, evolving phenomenon needing support and nourishment to achieve its full potential.

In closing, Pervaaz emphasized that AI is only one piece of what he deemed a “broader convergence of technology and healthcare.” Innovations from Silicon Valley and other centers of innovation, Pervaaz maintained, are enabling a range of groundbreaking tools that extend far beyond AI, offering a multitude of new ways to enhance healthcare delivery and patient outcomes. The key to success for biopharma companies, Pervaaz concluded, lies in fostering collaboration between technology and life sciences to improve products and processes across the board.

Following the animated exchange, Pervaaz reinforced his key themes and made some additional points relating to life sciences personnel and hiring practices. These included:

• Talent integration and fit. Pervaaz discussed the challenges of bringing in outside talent, particularly at senior levels. He highlighted the risk of “organ rejection,” where even highly experienced individuals fail to integrate due to assumptions about their ability to adapt. He stressed the importance of being disciplined and purposeful in ensuring a strong cultural fit for new hires.
• Courage in decision-making. Pervaaz emphasized the need for leaders to have the courage to make difficult decisions, even if they disrupt traditional expectations. This could involve convincing the board to integrate technologies such as ML into drug discovery, or bringing tech talent into executive teams and boards to meet evolving challenges.
• Succession planning realities. Pervaaz acknowledged the difficulty of bypassing long-groomed internal candidates for leadership roles when they may not align with the organization’s immediate needs. He encouraged life sciences leaders to have the courage to prioritize what’s right for the company’s current situation over what feels expected.
• The skill of seeing clearly in interviews. Pervaaz highlighted the critical skill of assessing talent effectively during interviews. Drawing a parallel to acting, he described the importance of not just observing what candidates say or reading their CVs, but noting their behavior from “moment to moment.” This nuanced awareness, he argued, helps leaders discern candidates who might thrive versus those who could be rejected by the organization in six months.
• Purposeful observation. Pervaaz concluded by emphasizing the need to be fully present and observant during the hiring processes. Leaders, he maintained, need to “step outside of themselves” to assess candidates clearly and align their decisions with the organization’s long-term success.

Jamie Pallot is content director at The Vanguard Network, a membership and advisory organization that connects industry leaders through in-person forums and virtual exchanges. His work has appeared in publications such as The Wall Street Journal and Financial Times.