The pharmaceutical company GlaxoSmithKline (GSK) uses an innovative approach to obtain external advice: replace selection based on business relationships and traditional time-based billing with decision making based on data and reverse online auction. In case, GSK is hit with a potentially devastating lawsuit and must hire a company to respond in time. Fiscal Management recently hired, Sophia Keating, struggling with the approach of GSK. Veterans GSK assure you that the approach to reduce costs and improve the quality of work, systematically increasing the rigor in the procurement process. Still skeptical, Sophia the process of analyzing and comparing offers from competing companies systematically executed. This case the process by which they developed and adopted these tools is also described. Beyond the implications for law firms and other service providers, the lessons of this case apply for teaching in institutional change, recruitment procedures in many areas, and how to increase the rigor of processes generally business casual.
Heidi K. Gardner,
Silvia Hodges Silverstein
Source: Harvard Business School
Release Date: September 3, 2013. Prod #: 414003-PDF-ENG
GlaxoSmithKline: Electronic Solution Professional Services complex cases