We all certainly have heard, and most of us have said, “This is a relationship business” when speaking of the life science industry. We probably said it in part because we had heard others say it and it seemed to fit our somewhat close-knit industry. But have we really stopped to think about what it means in our particularly complex, multi-layered industry, with its diverse players and myriad relationships?

In most industries, the reference to “a relationship business” is somewhat simpler. In my own rather meandering career path, “relationships” have always been a common and consistent thread. As a management consultant, it was vitally important to have long-term relationships with your clients, so you could become a trusted advisor and help them with their strategic, do-or-die issues. In the entertainment industry, it was about having relationships with talented individuals who you knew could perform their jobs competently and efficiently, as the teams were always assembled dynamically for a given project. And in my favorite participant sport, auto racing, even a small breakdown in relationships or communications can easily cost you a win.

But the life science industry probably incorporates a larger variety of relationships than almost any other industry. So here are just a few of the examples that come to mind as you follow a company’s life cycle…

Raising Funds: A study just released by two MBA candidates at Stanford shows that the #3 criteria for investment for angels and #5 for VCs was “liking the entrepreneur.” While the choice of words might seem a bit frivolous, to “like” someone
implies that you trust and believe in them.

Discovery/Invention: The days of the independent scientist or inventor have long passed, so now the key word is “collaboration.”

Product Development: Without intense team work, coordination and the commitment to succeed, most products would never see daylight.

Clinical Trials and Regulatory Approvals: Relationships with consultants, CROs, the FDA, the product development team, scientific advisors, and others are vital to successfully completing this costly and time consuming process.

Sales and Business Development: Of course, in later stage companies, your relationship with your customers and partners is king. You must earn their trust and confidence, and they must believe that your company and its staff are committed to improving patient outcomes.

So what does “this is a relationship business” mean in the life science industry? Although our industry is perhaps the most complex industry in the world, it still comes down to one thing – trust; having trust in your colleagues and earning their trust. Without this bi-directional trust, running any business, especially a life science business, will surely be a frustrating and unsatisfactory experience, most likely resulting in failure.

Disclosure: none.