Sailing Through the Storm: Lessons from the Pandemic

Introduction

The Fastnet is an offshore yacht race organized by the Royal Ocean Racing Club and it is considered one of the most competitive and difficult offshore races in the world.

Although ocean racing is dangerous by definition, the 1979 Fastnet race was truly disastrous. When more than 300 yachts departed, the forecast was for clear weather. On the third day, however, an unexpected and savage storm hit, and the results were catastrophic: 75 boats capsized, 25 were sunk or abandoned, and 17 sailors died. The resulting rescue operation was one of the largest ever attempted during peacetime. 

A severe storm fundamentally changes the equation and tests even the most experienced captain and crew. In the face of danger, communications must be clear, the crew must be kept safe, and strategic decisions must be made quickly and decisively.

COVID-19

The world did not see the COVID-19 pandemic coming, and similar to the skippers sailing into that devastating storm, business leaders entered 2020 with clear skies, only to have to pivot and adapt to the new circumstances.

At the time, our senior leadership team made the decision to prioritize the health and safety of our employees and their families.  None of us could grasp how long the work-from-home policies would last or how challenging it would be to continue to execute in the face of a global pandemic.

Over the past year, we have been asked to isolate, to stay home, to avoid gatherings and public places, to stay calm and create a new normal for ourselves in a world that feels literally anything but that. Now, more than one year later, the storm seems to be subsiding, and life is slowly beginning to return to normal. 

Looking ahead, leaders face fundamental questions about the future. What will the new normal look like? What are the new opportunities and the new threats that will be faced?  How do we balance the needs of our employees, shareholders, customers and other stakeholders?

Recently, I was reflecting on the past year with friends and colleagues at Kura Oncology, where I am President, CEO and Chairman of the Board. I thought it might be worth sharing a few lessons we’ve learned from navigating the last year in unchartered waters:

Be Innovative and Flexible to Recruit and Retain the Very Best People

In a previous article, I mentioned how, despite the pandemic, we continued to recruit senior leadership and board members. The pandemic has demanded that organizations adjust their way of identifying and hiring key talent, and I shared a few tips on how we were seeing new hiring practices evolve.

I am thrilled to report that we have put those tips to good use. 

Kura Oncology has nearly doubled in size during the pandemic to ~ 100 employees, and all our newest colleagues have been recruited and on-boarded virtually. It is a testament to our leadership team, human resources, our hiring managers and our colleagues, that we have integrated, so many amazing individuals into the organization and enlisted them in our mission to improve the lives of patients.

With new and existing employees, we continue to place emphasis on their physical and mental health. The areas we found to make an impact include: providing tax-favorable subsidies to purchase resources and equipment for work at home; encouraging employees to take time off for themselves and their families; mailing care packages in lieu of in-person events; and staying connected – albeit virtually – from birthday celebrations to all-company meetings. 

Seize the Opportunity to Address the Business Portfolio

Sometimes, in order to make something better, or work more effectively, you must take something away: a process affectionately termed “addition through subtraction.”  

At Kura, we decided in early 2020 to assess the breadth and depth of our strategic portfolio. At the time, we had multiple programs competing for resources and attention, and we were planning to embark on new initiatives that would have further stretched our finite resources.

Over several months, our senior leadership conducted a thorough analysis where we asked the following questions:

·      What are we uniquely good at?

·      What will create the greatest value for patients?

·      What will create the greatest value for shareholders?

·      How do we balance investment, risk, execution and value creation?

As a result of this initiative, we focused our business around two major pillars: namely, the development of our drug candidate tipifarnib for the treatment of patients with HRAS mutant head and neck squamous cell cancer (HNSCC) and the development of our drug candidate KO-539 for the treatment of patients with certain forms of acute myeloid leukemia (AML).

The decision was made, in part, when we reflected on the potential for the pandemic to challenge our ability to execute and, in part, due to our realization that we might very well benefit from a leaner, more focused strategic plan.

The results have been truly remarkable, and we are fortunate to be in the strongest position ever financially with more than $600 million in cash. As we had hoped, we have created significant value for patients, and with our stock price up considerably over the past 12 months, we have also created value for our employees and investors.

Make Your Employees Part of the Solution

In addition to the turbulent seas of the COVID-19 pandemic, the past year brought a focus on societal injustice and subsequently, the need for organizations to be more diverse and inclusive in their words and actions. Today, a good CEO must realize that his or her employees have useful information and experience to contribute to the planning, decision-making, and execution of the plan. At Kura Oncology, we had multiple, heartfelt discussions about the changes we wanted to see in our company, our industry, and our communities.

As a leadership team, we have challenged our employees to think globally and act locally. Our Diversity & Inclusion Committee, composed of members across the company, undertook an effort to create change, driving the vision, mission, priorities, and actions. We have seen leadership among our employees, and I am confident our culture and our company will be much richer in the months and years ahead thanks to their efforts.

Radically Accelerate Digital Collaboration

Before the pandemic, it is estimated that only 30% of U.S. employees worked remotely 100% of the time. For the other 70% of employees that only worked on-site, the transition to working remote full-time has been a shock to the system –figuratively, and in some cases, literally, when user demand has exceeded system bandwidth. 

But the silver lining is that with such a high percentage of the working population now remote, digital collaboration is improving in leaps and bounds, both in terms of tool sophistication and employee comfort.

At Kura Oncology, we use digital collaboration tools daily, with popular solutions namely for video conferencing and program management. We recently implemented an expert system to handle procurement, contracting, vendor management and payment, and other initiatives to make us leaner and more efficient are underway. Although these systems are critical when employees are working remotely, they will also enable us to be leaner and more efficient when the time comes again for in-person collaboration.

Communicate Often and Honestly

In times of crisis, it is particularly important for leaders to calm and assure a likely uneasy workforce, through open and honest communications. Employees need to feel a sense of transparency about the plans, the risks and the efforts of mitigation.

We found that cadence of communications was equally as important as content. Being proactive by providing frequent updates so that employee never wonder whether they have the most up-to-date information. In addition, we strive to meet employees where they are: we communicate either in all-company forum or in small groups and follow up by email, so that people receive the same information from several sources.

Lastly, we strove to be empathetic; seeking to understand special circumstances and recognizing that it is not just our employees at risk, but their families and loved ones. Showing compassion goes a long way in times of crisis, and the positive effects last long after the crisis has subsided.

Conclusion

We never know when a storm will catch us by surprise. However, there is much that we can do to prepare ourselves and our organizations for the unexpected. Defined roles and responsibilities, clear channels of communication, preparation and teamwork are all essential for success.

As a leader, your most important job is to communicate clearly, keep the crew safe and engaged, and make strategic decisions quickly and decisively. If you are innovative and flexible to recruit the best people, seize the opportunity to optimize your business, make your employees part of the solution, embrace new modes of collaboration, and communicate often and honestly, you will give yourself and your crew the best chance to win, and the benefits will last long after the winds stop blowing and the seas calm.