LICR Strategic Review
In June 2004, the LICR Board of Directors requested a strategic review of the global LICR enterprise. Strategic reviews are conducted periodically to refine, re-define and/or realign goals, priorities and resources in the context of an organization’s dynamic environment. Consequently, management and the Scientific Directorate are now reviewing the Institute’s overall mission, model, infrastructure and resources. Senior scientific staff, in addition to management, will be involved in the process.
“The Institute is in the mature phase of its development,” says Ed McDermott, President, “and it is both appropriate and responsible that we pause and assess what we can and should do to more effectively and efficiently achieve our mission, which is, after all, to bring encouraging discoveries to the benefit of cancer patients. Building on its basic discovery by emphasizing multi-disciplinary research teams, program-based and translational research, as well as clinical discovery, has served the Institute well and kept it at the forefront. To close the gap between the promise of discovery and the reality of cancer treatment, we need continually to sharpen our focus.”
The realities of the marketplace also warrant a review of the Institute’s activities, with reliance on LICR-funded support needing to be reduced. “The recent constraints placed on the budget have made some inroads on that objective,” Mr. McDermott continued, “but more needs to be done.”
In the mid and late 90’s, the endowment enjoyed annual returns in the 13 to 15% range. The market downturn in the 2000-2002 period exposed how rapidly the asset base can deteriorate if spending outpaces returns. Though the markets and the endowment recovered generously in 2003 and 2004, Mr. McDermott cautions that returns going forward are expected to be in the 7 to 8% range. “Expectations are lower because, in the developed world, interest rates are rising and the economies are entering the later stages of their growth cycle.”
When completed later this year, the Strategic Review will be presented to the Board of Directors. Changes approved by the Board will be effected over the following two plus years.