Talent Management Expert Challenges Biotech Founders: Can You Be the First to Change in Times of Crisis?

In June, in Suzhou, at the mid-year conference of the New Drug Founders Club, senior talent management expert Liang Yuhai was invited to curate and moderate one of the forums titled “How to Optimize Talent Structure and Enhance the Fit Between Talent and Enterprises.” Compared with other forums focused on financing and business development (BD), this session attracted a relatively smaller audience.

However, the event was well-attended by company founders and executives who diligently took notes and actively asked questions. The inquiries posed to Liang Yuhai were highly practical, covering topics such as employee performance management and workforce reduction.

Previously, founders of innovative pharmaceutical companies had also approached Liang Yuhai directly for management consulting. Most of these founders felt that the broader market environment was unfavorable and that their companies were encountering difficulties, hoping to address some of these issues through improved management practices.

This is a microcosm of the changing macro environment. Liang Yuhai has observed that in recent years,When the pharmaceutical market is booming, many corporate management issues are masked by easy access to financing and strong order books, marking the peak of the headhunting industry. Conversely, when market conditions deteriorate and the headhunting sector cools down, management consulting begins to garner greater attention.

Of course, companies have varying motivations for engaging in management consulting. Some founders believe that during times of difficulty, they should proactively seek assistance from professionals; others contend that given the challenges of securing financing, every penny must be spent where it matters most. They view management consulting as overly abstract and, even if beneficial, unlikely to yield immediate results.

“The gap is significant and ultimately hinges on the founder’s mindset.” Liang Yuhai places particular emphasis on the cognitive frameworks of founders and executives, regarding this as a critical component of his consulting services. He is well aware that while devising a standard consulting proposal is not difficult, shifting the mindsets of founders and managers is the most challenging aspect: “Management consulting that can be effectively implemented to solve real-world problems is fraught with difficulties; nothing about it is easy.” Nevertheless, he remains deeply passionate at his core, believing that he is engaged in work of substantial value.

Around 2000, as China joined the WTO, many multinational corporations entered the Chinese market. Liang Yuhai began his career in the executive search industry in Shanghai, providing C-level recruitment consulting to Fortune 500 companies across various sectors. His areas of expertise included well-known foreign enterprises in fast-moving consumer goods (FMCG), automotive, electronics, and pharmaceuticals. It was also during this period that he started serving major pharmaceutical companies such as Wyeth and Pfizer.

At that time, headhunters typically followed a traditional approach of interviewing candidates based on job descriptions (JDs) and then recommending them to clients. Liang Yuhai’s employer at the time was a boss with a background as a CEO of a Fortune 500 company in the United States. When interviewing senior executives, he would comprehensively assess candidates’ job competency, the challenges they encountered in their work, and whether it was advisable for them to change jobs. He also provided these individuals with advice and coaching on career development planning and leadership enhancement. Through this immersive exposure, Liang Yuhai grew rapidly in his profession, becoming capable of interviewing senior executives by his twenties.

Later, Liang Yuhai gradually transitioned from executive search to executive coaching, helping Fortune 500 companies address management challenges within their senior leadership teams, and eventually became the head of the Shanghai branch. By chance, he worked for five years in a government personnel management department. As his experience and influence in management consulting services continued to grow, he founded his own consulting firm in 2011.

In recent years, China has witnessed rapid growth in innovation and entrepreneurship within the high-tech sector, leading Liang Yuhai to observe gradual shifts in his company’s business operations., whereas in the past it was primarily established multinational corporations that sought his collaboration, in recent years, an increasing number of startups have begun to approach him for partnerships.

During his communications with these startups, Liang Yuhai gained a deeper insight into the managerial shortcomings of innovative enterprises: “These technology-driven companies possess inherent advantages, but they also face many limitations. For instance, in the pharmaceutical industry,Most founders or management teams of biotech companies have long held technical management roles at large multinational pharmaceutical firms, resulting in a rather limited understanding and approach to corporate operations and management.。”

Therefore, amid the current market downturn, Liang Yuhai prefers to engage and communicate with startups in the pharmaceutical industry, helping them address their challenges, which gives him a greater sense of value.

The following is Liang Yuhai’s personal account:

Frankly speaking, in recent years, many domestic biotech companies did not place significant emphasis on management consulting. Many perceived it as overly abstract or more suitable for large corporations. Even among those who recognized its value, the lack of immediate results often led them to prioritize product development, business operations, and fundraising over management initiatives.

One of the most challenging aspects of our previous consulting engagements was communicating with executives from R&D backgrounds. Heads of R&D often exhibit an inherent STEM-oriented mindset, which tends to foster linear thinking. While they are more inclined to delve into technical research, they frequently face significant limitations in team leadership and comprehensive management.

When external market conditions are highly favorable, a company’s business can grow rapidly as long as its products meet certain basic requirements, even without professional and efficient management. During this phase, executive search firms are extremely busy, as companies are actively seeking to expand their talent pools.

Although I work in management consulting, I am well aware that for any enterprise,Its top priority must be product and market; the product must possess core competitive advantages in the market.This is the most fundamental and important value of the company. I have never claimed that management is of paramount importance, as this would contradict objective laws.

If a company already has customers, market presence, and strong business performance under this premise, management consulting serves more as an added bonus.

However, over the past two years, the market environment in the pharmaceutical industry has begun to cool down, with deteriorating conditions. Executive search firms have found it increasingly difficult to conduct business, as hiring freezes and layoffs are inevitable. In this context, management consulting has gradually gained prominence. Companies engage management consultants with clear objectives: founders recognize that their enterprises are facing developmental challenges and hope that management consulting can help them address these issues.

For service organizations such as CXOs, as the business enters a downturn, biotech companies face immense pressure and often impose higher demands on suppliers, including technological leadership, lower prices, and faster turnaround times. In a fiercely competitive market, a company’s survival is determined by its technological advantages, product quality, comprehensive cost efficiency, and service effectiveness.

And all of these must be achieved through professional management.

Even so, the enterprises that consult me on management often focus their issues on more practical and specific areas. For instance, some founders ask me, “How can we get employees willing to work overtime?” Others tell me, “Our employees lack initiative and their performance is poor; please design a performance appraisal and incentive system for us.” Still others inquire about how to conduct layoffs. In reality, these individuals approach me with the mindset of solving short-term or isolated problems, rather than addressing issues from the perspectives of long-term development, long-term value, and systems thinking.

Whether management is understood and valued ultimately depends on whether the boss’s awareness is sufficiently developed.

Based on my experience, it is not only the pharmaceutical industry but also all high-tech industries that share a common phenomenon: most entrepreneurs with technical backgrounds do not prioritize management.

In my interactions with these companies, I have observed significant variations in the founders’ perspectives and differing needs. Some follow our recommendations, asking us to identify where to begin transforming their management processes; others are more decisive, instructing us to focus solely on resolving a specific issue; and still others choose not to incur this expense, reasoning that given the current difficulties in securing financing, “every penny must be spent where it yields the greatest impact.”

The pharmaceutical industry is currently facing numerous challenges, with financing difficulties being a frequently cited issue.Currently, most entrepreneurial coaching available on the market is confined to practical operational aspects such as “how to secure financing” and “how to structure equity,” with virtually no professional guidance or support provided at the level of founders’ cognitive frameworks.Although this is the most important thing, it is also the most difficult and a thankless task, as the market does not recognize it.

Everyone is talking about the current unfavorable situation. So what’s next? Layoffs? Hiring BDs?

At this time,Founders should not focus solely on aggressively acquiring customers and developing products; they should also take the time to reflect deeply: As a founder, how can you ensure your company’s survival and growth? This is precisely when the underlying logic and cognitive frameworks of founders and management teams are put to the test.

Most founders in the pharmaceutical industry come from scientific research backgrounds. In my interactions with them, I have found that they share a notable limitation common to founders in other high-tech sectors: a tendency to develop rigid, R&D-centric mindsets.

First, this is age-related. Most entrepreneurs studied abroad for their PhDs, then worked at multinational corporations (MNCs) for several years before returning to China to start their own ventures. Their average age is around 40–50 years old. Generally speaking, the older one gets, the more prone they are to rigid thinking. Second, having mostly spent ten to twenty years working at large pharmaceutical companies and achieved certain accomplishments prior to starting their businesses,Founders often emphasize past successes., believing that “the management practices I used at a large pharmaceutical company can be applied in the same way now.” However, the problem is that applying this set of successful management experiences from large corporations to a startup enterprise would pose significant challenges.

Moreover, this issue is not limited to founders; it is also prevalent among senior executive teams. Their mindsets have not adjusted, as they continue to believe that past experiences can be fully replicated in the current context. However, the reality is that they have joined a startup where talent is incomplete, equipment is insufficient, and management processes and institutional systems are imperfect, meaning everything must start from scratch.

How to Shift Mindsets: The Challenges Faced by Fortune 500 Executives Transitioning to Innovative Enterprises. As a result, more than half of foreign enterprise executives experience difficulties in their first job change.

A saying has gained significant traction in recent years: “What once led you to success will not necessarily lead you to your next success.” I constantly use this phrase to remind myself and others to clearly discern whether our judgments are grounded in current reality or merely in the mindset of “I did it this way before, and it worked.” While experience is invaluable, the critical issue is that we cannot remain rigidly bound by cognitive frameworks from a decade ago. With changes in environment and time, we must adopt an iterative perspective when viewing ourselves and the world.

For example, since the pandemic, a group of executives in Shanghai lost their jobs for various reasons and remained unemployed for over a year. Some of them had previously worked at foreign companies for around 8 to 10 years. After speaking with them, I noticed a common pattern: they habitually emphasized how they used to do things, failing to recognize that the world has changed significantly post-pandemic. The core leadership competencies required of executives have evolved, and clinging to the past makes it impossible to meet future challenges.

Some founders are aware of their own fixed mindsets, but there are issues that they may not even be conscious of, namelyUnaware of one's own ignorance.

Professional executive competency models comprise multiple modules, one of which is a critical requirement: holistic perspective. This is an issue that warrants reflection from founders to the entire senior management team.Most individuals have not previously held positions such as General Manager or senior executive in their prior organizations, serving instead as departmental or functional heads. The inherent limitations of such roles make it difficult to develop a holistic perspective; in reality, there is a significant difference in mindset between managing a department and managing an entire company.

For example, if an individual has previously been responsible solely for managing the R&D department, their focus would have been exclusively on research and development. While they may have interacted with departments such as production, procurement, quality, and engineering, these interactions were limited to work-related communications, without a genuine understanding of the actual operations of those departments.

In managing the entire enterprise, all departments should be viewed as an integrated whole. Rather than focusing on how well each individual department performs, emphasis should be placed on fostering close collaboration among departments to reduce, or even eliminate to the greatest extent possible, interdepartmental silos.

To cite another example, the pharmaceutical industry has a distinct characteristic: “no sales for ten years, but one sale feeds you for ten.” Once a product is launched, it often yields substantial returns; therefore, relatively speaking,Top-tier big pharma companies enjoy robust profit margins, leading to a phenomenon where large pharmaceutical firms are less sensitive to costs.

For innovative startups, executive teams coming from large pharmaceutical companies are accustomed to previous spending patterns and often fail to recognize the importance of cost control. However, the challenge lies in the fact that pricing is an unavoidable hurdle for these startups to compete. This is particularly true when expanding their customer base in China, where price competition is intense, while these new ventures typically operate with limited capital.

Therefore, I will discuss lean thinking with the founders and management team. Some people do not understand it., they believe that pharmaceutical companies should focus on laboratories and product development, and that lean thinking is useless. However, in reality, lean thinking can help founders and executives continuously optimize various operations based on performance goals, maximize the reduction of comprehensive costs while ensuring quality, improve service quality, and enhance response speed. This is particularly important in the current downturn cycle of the industry.

Some founders with R&D backgrounds fail to fully recognize that running a business is a comprehensive, systemic commercial endeavor. If they focus solely on products or technology while deeming other aspects unimportant, this reflects a significant cognitive flaw.

Therefore, I have always believed that for founders and executive teams of innovative pharmaceutical companies, the top priority should be a mindset shift—transitioning from professional managers to entrepreneurs.

This is especially important for founders. Among the founders I have encountered, a genuine insight is that,The proportion of founders who are truly willing to invest time in reshaping their self-awareness and achieving personal growth is, in fact, very small.Self-awareness and world awareness form the foundation for guiding all behavior.

Therefore, when founders approach me, I emphasize:First, start with changing yourself,Do not merely point out the issues with senior executives; first, acknowledge your own shortcomings. Do not assume that if I were to change the executives, they would become compliant and the company would achieve performance targets.Second, founders must recognize that management is a systematic endeavor.Rather than addressing issues in isolation, it is essential to identify the root cause based on first principles and analyze and resolve problems with the end goal in mind.

The founder’s transformation must come first. If he himself does not change, even if the company recruits a team of executives from Fortune 500 companies, they are likely to leave within six months to a year, or fail entirely to deliver their intended value.

I often urge founders to adopt a clear mindset: management is a holistic and systematic endeavor, as well as a long-term process of continuous improvement; it is impossible to resolve root causes through any single project.

When I deliver presentations to corporate executives, many members of management often ask how to address emerging issues and expect me to provide concrete solutions. I believe this mindset needs to change,Do not rush to solve a problem as soon as it arises; instead, first define its essence and root cause. Once the problem is clearly defined, the approach to resolving it will naturally emerge.

For instance, if the goal is to boost team morale, I would advise management against immediately jumping to solutions. Instead, they should first define what “morale” truly means and identify the factors influencing it. If individuals hold different definitions, their perspectives will never align, rendering any discussion fundamentally flawed. Therefore, in my communications with clients, I focus more on continuously inspiring them and guiding them to adopt a different mindset, rather than limiting the conversation to the issue at hand.

Great truths are simple.There are many schools of thought regarding methodology, but enterprises should avoid overemphasizing tactical techniques. Instead, they should prioritize cognition and philosophy. Management is ultimately about returning to common sense, human nature, and interests.

For instance, some executives in the pharmaceutical industry always perceive it as prestigious, believing that “our industry has the highest technical barriers and employs highly educated talent.” In reality, however, we must respect common sense and look at the essence of things: the pharmaceutical industry, ultimately, must also reflect the universal values of commerce.

Common sense is multifaceted. For instance, I often mention a suggestion:The Importance of a Good HRSome founders maintain an autocratic leadership style, leaving HR with no say in decision-making. The issue is that if a company’s HR professionals possess only average competence and qualifications, how can they possibly recruit excellent, well-suited senior executives? How can they provide the founder with a sound talent strategy? I have seen companies assign an HR manager in their thirties to interview candidates for Vice President-level positions. In such cases, what methods can the HR professional use to assess the candidate’s professional expertise and managerial capabilities? Do they truly understand the company’s strategic objectives and its key challenges? This simple example reveals the primitiveness of their management practices.

Many enterprises face difficulties in recruitment, not only failing to recognize the critical importance of a competent HR professional but also misunderstanding that talent development requires time.

In recent years, domestic pharmaceutical startups have entered a golden period of development, resulting in an insufficient supply of talent. Unlike other mature industries, the pharmaceutical sector does not possess a readily available, well-established workforce. Under these circumstances, greater emphasis should be placed on the management and cultivation of talent to accelerate their professional growth.

Many companies believe they do not have the time to accompany their employees through gradual growth. But in my view,Some things must be traded for time; this is common sense.

Beyond returning to common sense, management is also about returning to human nature and interests.

Most founders or executives in biotech companies come from multinational corporations (MNCs). Previously, they may have only served as heads of R&D, managing relatively small teams. Deep down, they often believe that managing people is similar to developing products, or they are reluctant to engage in team management. However, human nature and interests are far more complex. Founders and senior executives need to place greater emphasis on understanding human nature and aligning interests.

For instance, cross-departmental communication is one of the most challenging issues for many enterprises. Human nature tends to seek benefits and avoid harm, and people are inherently self-interested. When you seek cooperation from others, why should they comply? Although companies have rules and regulations, counterparts can often find numerous reasons to refuse cooperation, leaving you with no recourse. Your daily words, actions, and conduct ultimately determine whether others are willing to cooperate with you.

Additionally, you should also consider whether, beyond my own benefit, I can bring value to the other party. Altruism and win-win outcomes have always been my core values.

From a human nature perspective, many founders have a mistaken understanding of the value of their executive teams.As a founder, your executives should surpass you in professional expertise, but you must outperform them in understanding human nature and management. Founders need to clearly determine how to best leverage these executives. This is not an issue that can be resolved simply by paying their salaries. When executives transition from large corporations to a startup, founders should consider how to help them grow and adapt.

When overseeing the big picture, founders should ensure that senior executives not only excel in their own roles but also contribute to team and talent development. In this way, even if the founder departs, a well-developed team will remain in place, minimizing the risks associated with executive turnover.

When I discuss talent management with founders, I emphasize that they must dedicate time to first defining their vision, mission, values, and culture. These elements should not be merely displayed on websites or walls; rather, from the very day employees join the company, they should be guided to align their mindset and embrace the organization’s values and culture. This approach implicitly reduces significant communication costs.

When discussing their vision and mission, many pharmaceutical startups often talk about health, patients, and the like. However, the vision, mission, and values we discuss are not such broad and vague concepts.The concept you establish must resonate closely with employees: first, gain their acceptance; second, encourage their willingness to execute it through altruism and win-win outcomes.

I have encountered cases where, during project due diligence by investment firms with several core executives of the company present, the team’s answers to the investors’ questions about the company’s vision, mission, and values were unsatisfactory, ultimately resulting in a veto.

In the current challenging fundraising environment, virtually no one knows what the future holds, and everyone is facing significant uncertainty.In times of adversity, it is even more crucial to recognize the importance of corporate culture. It determines whether a team can confront challenges with greater morale and unity.

When I work on consulting projects, no matter what project the client says they want to pursue,At the top of the list are the research firm’s vision, mission, values, and culture.This is the foundation of everything; implicitly, it determines everything, rather than the rules and regulations explicitly established by the company.

In fact, many executives fail to fully recognize the critical importance of values and culture. I have even encountered executives who strongly oppose such initiatives, dismissing them as “brainwashing” employees. If senior leaders themselves are fraught with bias, how can they effectively lead their teams?

Especially for startups, new employees come from various companies and may hold differing values. Failing to prioritize the importance of vision, mission, values, and culture will result in employees from different backgrounds operating in silos, lacking cohesion, and exhibiting low collaborative efficiency.

Every industry has a life cycle. If we look back at history, we will find that every period of difficulty presents an opportunity. During each historical economic crisis, many companies failed, but many others emerged stronger and achieved greater success. Therefore, management should shift their mindset from passive to proactive, from merely coping with challenges to actively uncovering new growth opportunities, and leverage this period as a valuable chance to enhance corporate cohesion and competitiveness.

For founders, it is essential to proactively enhance their cognitive awareness—of themselves and of the world.Proactively identify one’s blind spots and misconceptions, recognize personal biases, have the courage to confront one’s true self, and be willing to change and improve oneself.This is fundamental and decisive for the development of an enterprise, because cognition determines thinking, thinking determines behavior, and behavior determines results.