We are strong believers in the benefits of having a member of Senior Management holding the title of Vice President of Business Development, reporting directly to the CEO, preferably with a group of Directors and Analysts to support him or her. This ensures that BD&L has a prominent position within the company, and hopefully has the attention of the CEO and the Board that it deserves.
So, should companies reject this model and outsource BD entirely?
We do not believe this is wise, precisely for the reasons stated above.
However, even with the organization described in the previous paragraph, we believe that this Senior Vice President could dramatically improve his or her probability of transactional success by pinpointing and carving out activities and initiatives, then passing these on to an experienced external team for execution.
This is really not that different from having a Senior Vice President of Clinical Research working closely with a highly-skilled contract research organization on a clinical trial. If the clinical CRO is highly skilled, then the SVP of Clinical Research can spend more of his or her time on other activities.