#1. DCRI's rainmakers have left the building. The key faculty members who attracted profitable industry-sponsored research a decade ago are no longer with the DCRI. Without a significant mix of high-margin commercial research projects, the DCRI’s business model is not sustainable – more layoffs are inevitable.
#2. Minimal investment over the past ten years in modern information technology and automation. Without a war chest to make the necessary improvements, nor an organization willing to change - the DCRI will continue to fall further behind its growing list of competitors.
#3. A government heavy revenue stream is unsustainable. When the United States’ federal deficit hawks reawaken, or the current administration’s mission to de-fund spending on science reaches the NIH – the flow of government funds will dry up. Underbidding government work in order to keep the doors open is not a sound business strategy, long-term underbidding is unsustainable.
#4. The DCRI naiveté. Statements like: “The DCRI launched a strategic planning effort in response to changes occurring across the clinical research industry.” Other CROs are doing very well financially and have been keeping pace with the changing market, they are hiring, not laying off.
#5. The DCRI’s operating model is based on a twenty-year old direct labor pricing model. The world has changed; direct labor is no longer the primary cost driver in the age of digital research. A revenue model based solely on direct labor costs cannot make the necessary investments in technology to be competitive in the digital world - further evidence of an unsustainable business model.
#6. The DCRI is a career killer. Don’t accept lower pay to get your foot in the door, you will be stuck in the same position for eternity, getting 2% annual increases for as long as you stick it out. Promotions will be very rare events in a collapsing organization.