Leadership & perspective

Chief Executive Officer · Japan

2026-09-23 edition

Renji Oritsune

A medicine supply plan is credible only when its quality decisions can withstand the pressure to ship.

The journal · Pharmaceutical management

Quality independence has an operating budget, not only a reporting line

A pharmaceutical CEO cannot protect a quality decision merely by promising not to interfere. Capacity, executive attention and the treatment of commercial consequences determine whether that promise works in practice.

I believe quality independence in a medicines business should be examined through the operating plan as carefully as through the organisation chart. A company may give the quality function a clear mandate and still create conditions in which that mandate is difficult to exercise. The investigation team lacks specialist time. Every batch in the commercial forecast assumes an uninterrupted path. Senior meetings ask repeatedly when an unresolved issue will disappear. Nobody gives an improper instruction, yet the cumulative expectation becomes unmistakable.

The CEO's responsibility begins before that pressure reaches the final decision. We decide how much work the organisation accepts, what capacity it funds and how uncertainty appears in the plan. If those choices leave no room for an investigation to take longer than expected, a statement supporting quality judgement has limited practical value. I cannot claim to respect a colleague's authority while making that colleague the sole owner of the financial consequence whenever the evidence remains incomplete. The consequence belongs in the executive team's account of the business.

This does not mean that investigation performance should escape scrutiny. Ageing work can conceal poor questions, weak coordination or insufficient follow-through. A quality organisation needs effective management like any other function. The distinction is between examining how the work is being done and demanding a conclusion because the calendar requires one. I want to understand what evidence remains missing, which capability is needed and whether the investigation has reconsidered an explanation that no longer fits. Those questions can produce action without implying the answer that would be most convenient.

Look at the work the policy assumes

At Aoritsune, our register once contained 47 manufacturing investigations older than ninety days. A simple reduction objective would have been easy to communicate. It would also have rewarded a number without explaining its basis. We instead classified the remaining work and examined the demand on specialists across the company. Some were repeatedly moved onto expansion activities because those projects had more visible executive sponsors. The investigation register was therefore showing the consequence of an allocation decision that had been made elsewhere. Asking the quality team alone to improve the count would have missed the cause.

We approved additional resource and deferred some other activity. Eighteen months later, thirteen older investigations remained. Four cases had been reopened during the period, and we kept those in the discussion. A reopening can indicate that an earlier conclusion was insufficient; it should not automatically become a reason to discourage further questioning. Directors needed to see the remaining uncertainty as well as the improvement. We also reviewed whether the extra capacity was being used effectively, rather than treating the initial approval as a permanent exemption from ordinary expenditure discipline.

Keep the forecast separate from the conclusion

The commercial forecast needs its own language for these situations. It is reasonable for finance and customer teams to ask what volume may become available and when a decision is expected. It is less reasonable to translate the desired revenue date into an assumed technical resolution. I prefer a forecast that identifies the decision point, the relevant range and the consequence of continued uncertainty. This gives management something to act on: alternative scheduling, customer communication, inventory choices or revised guidance through the appropriate process. It does not require the quality leader to manufacture confidence.

A frequent objection is that this approach will make organisations excessively cautious. Pharmaceutical manufacturing cannot operate with unlimited time or expenditure, and delayed supply has consequences of its own. I agree with that concern. My argument is not for an automatic preference for delay. It is for a clear account of authority and evidence, with the executive team addressing the conditions around the decision. Urgency should improve the allocation of capable people and the clarity of the question. It should not make an unsupported conclusion more acceptable simply because the competing consequence is uncomfortable.

There is another risk: senior leaders may use the phrase quality independence to disengage from a difficult operating problem. They say the matter belongs to quality and wait for an answer. That is also inadequate. The CEO remains responsible for resourcing, coordination and the enterprise response. If a laboratory requires specialist support, procurement must help obtain it. If an investigation depends on equipment history, engineering must make that available. If customer communication is fragmented, commercial management must organise it. Respect for a technical decision does not excuse passivity about the work needed to reach it.

In executive meetings, I pay attention to the first response after someone reports an unresolved finding. If the immediate question concerns missed sales, the room learns what matters before anyone reads the policy. The commercial effect deserves discussion, but its position and framing influence the behaviour of people who will bring the next issue. I try first to establish the observation, the uncertainty and the next evidence requirement. We then examine the operating and financial consequences with their respective owners. This sequence helps avoid asking one person to defend both the evidence and the entire business plan.

Ask what management must make possible

Boards can test the practice without attempting to make batch decisions themselves. They can examine investigation workload, repeat causes, specialist capacity and the quality of management's response to delayed outcomes. They can ask whether a reported improvement reflects stronger work or merely different classification. They can also review incentives that make every interruption appear to be an individual failure. These are oversight questions about the system management has built. They should not turn directors into a parallel technical authority or invite them to resolve a specific release question through confidence rather than competence.

I would change my approach if a detailed review showed that additional resource was masking avoidable complexity or ineffective management. More people are not always the answer. A portfolio may create unnecessary variation; a process may produce repeated uncertainty; handovers may be poorly designed. The executive team should examine these causes and act on them. What should remain constant is the refusal to solve the problem by compressing the conclusion. Improving the underlying work and making its outcome more convenient are different things, even when the monthly dashboard initially makes them look similar.

The practical test is whether the organisation can accept an inconvenient technical answer without making the person who gives it carry an unfair burden. That requires an operating plan with credible capacity, management attention to unresolved work and a commercial forecast that can acknowledge uncertainty. A reporting line establishes responsibility. Daily decisions determine whether that responsibility can be exercised. As CEO, I want our expenditure, priorities and reactions to support the authority we say we respect, especially when the quarter would look better if the question had already gone away.