Sales Force Effectiveness
John KaneDirector, Commercial Excellence & SFE
Views and Experiences expressed are that of John Kane and not of any pharmaceutical organization
Channel Optimization in Pharma22 February 2017
New Jersey
Overview
Overview of Commercial Collaboration that leads to Sales Force Execution- what is the transformational change that needs to occur in operationalizing the MCM?
Aligning your organization’s commercial strategy with the importance of your new customer-centric models and the patient journey
Leverage internal capabilities to guarantee your salesforce is able to harness your new models for mutual benefit and enhanced customer engagement
If there is any one pronouncement that ought to send shudders through the C-suite of every
pharmaceutical company, it is this simple, declarative statement:
“Since the year 2000, no net added value has been created in the pharmaceutical sector
for shareholders”.
Importance of Sales Force Effectiveness (SFE)
“As marketers we are all investors in our sales organizations as our sales organizations represent one of the largest investments in our multi-
channel marketing mix. Thus our sales teams may be our most effective lever for sales generation and exponential growth in revenue. Therefore Sales force effectiveness and execution is critical for the success of any
pharma commercial organization.
With this in mind our strategies are:1. Leverage the SFE drivers to evolve and develop the Sales Organization.2. Drive continuous commitment to development of the Sales organization to
meet the needs of the organization today and in the future.
What we may already have known to be true
ZS Associates Access Monitor™ 2015 Executive Summary – Pratap Khedkar and Malcom Sturgis
For Pharma reps, A challenging market for Physician Access gets even tougher
INFORMED CUSTOMERS
7
Customer BeginsDue Diligence
Customer Decision
57%
Complete
More
complex
Selling
0% 100%
Customers Normally Engage Decision Timeline
First contact with Sales
Source: The Challenger Sale, February 2013 Mathew Dixon & Brent Adamson of CEB
Physician Preference for Channel
It’s Not What You Sell, It’s How You Sell
Company and Brand
Impact
Product and Service Delivery
Value-to-Price Ratio
Sales Experience
n=5,000+
Perc
enta
ge o
f Contr
ibution t
o C
usto
mer
Loyalty
Impact of Customer Loyalty Drivers
19%
19%
9%
53%
Commercial Insight
Key Differentiators in
the Sale
• Offers unique, valuable perspectives on the market
• Helps me navigate alternatives
• Helps me avoid potential land mines
• Educates me on new issues and outcomes
Source: The Challenger Sale, February 2013 Mathew Dixon & Brent Adamson of CEB
Sales Teams Role in the Channel
The prospective way forward:Orchestrated Customer Engagement (OCE)
SalesMarketing
Managed
MarketsIT
As a result, the need to
orchestrate across all
channels with precise
sequence, context and
purpose is reaching a
critical inflection point.
Who leads, who informs and
directs the path forward
depends on what stage the
organization is functioning:
1. Instruction
2. Insight
3. Involvement
4. Intervention.
(OCE) is the discipline for
sales AND marketing to
accomplish more productive
and efficient customer
engagement.
The trifecta of sales,
marketing and information
technology in Life Sciences is
increasingly replete with a
multiplicity of channels,
message formats,
stakeholders, and changing
business models. int
Customer
HCP
Patients
Key Stakeholders and Collaboration
IMS Health September 2015 Orchestrated Customer Engagement
By Richie Etwaru, et al
Integrated Product Planning Process
Integrated Product Strategy
Marketing
Input
Medical
Affairs
Input
Managed
Markets
Input
Str
ate
gic
Alig
nm
en
t an
d
Co
lla
bo
rati
on
Planning
Alignment
Marketing
Tactics
Medical
Tactics*
Managed
Market
Tactics
Ind
ep
en
de
nt
bu
t
Co
ord
ina
ted
Ta
cti
ca
l E
xe
cu
tio
n
Sales
Input
Sales Tactics
Note: * Medical Affairs tactics are informed by the product strategy but remain independent
Functions should collaborate and coordinate but not direct or control one another’s activities
Sales Force Effectiveness and Commercial Organizations
Sales Force Effectiveness
Marketing
Strategy
Field Sales
Operational
Act Tactical
Develop
Strategy Execute
Interface
Operationalize
Liaise
Build Process
& Infrastructure
Operationalize
Enact
Change Mgmt
Communicate
needs of the
sales team
Act/Develop
based on those
needs
Act/Develop
based on those
needs
Why Sales Force Effectiveness?What are we solving for?
Enhanced Sales Outcomes and
Superior Execution
Robust Partnershipswith all stakeholders
Culture of Commercial and
Coaching Excellence
Sales Force Effectiveness (SFE) is a function to enhance sales outcomes as well as enrich the HCP/Pharma Company partnership to drive superior patient outcomes and leverage our products
and our sales force as the competitive differentiator with increased sales as the eventual outcome
SALES OPERATIONS
Drivers
SFE Navigator™
SALES FORCE DESIGN
STRUCTURE
ACCOUNT ASSIGNMENTS TO TEAMS
SIZING AND
ALLOCATION
TERRITORY DESIGN
SALES STRATEGY
MARKET INSIGHT
SEGMENTATION
GROWTH PRIORITIES
VALUE PROPOSITION
PRICING STRATEGY
SALES AND MARKETING
COLLABORATION
LEADERSHIP ALIGNMENT
CUSTOMER ENGAGEMENT
PROCESS
SALES PROCESS
TARGETING, TERRITORY AND PIPELINE
MANAGEMENT
ACCOUNT PLANNING
SALES TOOLS AND ENABLERS
PEOPLE AND SKILLS
COMPETENCY MODEL
SELECTION AND HIRING
TRAINING
COACHING
PERFORMANCE REVIEWS AND ACTIONS
MOTIVATION
CULTURE
METRICS AND DASHBOARDS
GOALS
INCENTIVES AND
REWARDS
DATA MANAGEMENT LEAD GENERATION AND
MANAGEMENT
REPORTING AND
ADMINISTRATION
ANALYTICS PRICING AND
CONTRACTING SUPPORT
PLATFORMS AND
SYSTEMS
Effective & efficient coverage of the full target account universe with a structure
and deployment that best fit the value proposition and sales process strategies
Customer-focused strategy targeting the
best growth opportunities with differentiated
and mutually valuable offerings
Customer-focused and expertly executed sales processes and planning that maximize mutual
value and trust
Sales managers and salespeople with the knowledge, skills and attributes required to
excel at their respective roles and responsibilities
Highly motivated, performance-focused and accountable sales force committed to “getting it
done” and “doing it right”
Highly efficient support capabilities that provide the sales force with the information, expertise, speed-to-market and efficiency needed to
achieve superior performance
Guiding the Way to a
Customer-Focused Growth Engine
Copyright, © 2012 by ZS Associates. All rights reserved. SFE Navigator™
Collaboration with ZS SFE Navigator framework
SalesForce
Effectiveness
Sales Model
and Process Strategic
Account Planning
SalesCompetency
Model
Sales
Training
SalesCoaching
SFA/ CRM
Sales & Marketingalignment
Business Acumen
Components of Sales Force Effectiveness
Sales Force Effectiveness (SFE)
Why the need for the functional role of Sales Force Effectiveness (SFE)?
How do we change outcomes from this…..
Percent-to-goal attainment.
To sales outcomes that look like this:
Percent-to-goal attainment.
Our Collective Commercial Objective- World Class Sales Force Achievement
Moving the Middle of the Sales Bell curve
Under Perfomring High Perfomrers
From This….
Core Perfomers
To this
Sale
s F
orc
e P
op
ula
tio
n
A 5% shift in productivity across the middle group yields 70% more
revenue than a 5% shift in the productivity of the top group.
Data adapted from CEB/SLC
Integrated User Friendly CRM & Business Planning &Analytics process Business plans with strategic plans on grow and defend Process for tracking and measuring results; scoreboard results
Components of SFE at the Field level
22
Competency Model for Field Facing Teams Market Access knowledge Knowledge and ability to navigate how Healthcare is delivered in your territory
1
Customer Engagement Strategy and Selling Model Active Sales Process or Sales Model2
Active and Engaged FLSM and Coaching Model A Culture of Coaching Excellence /Active Coaching Model focused on behaviors Coaching Model integrated to your Sales Model.
3
Strategic Territory and Account Management Process Effective Territory Management and Key Account Management4
5
Managed Markets/Payers and Reimbursement Knowledge/Partnership Market Access knowledge Knowledge and ability to navigate how Healthcare is delivered in your territory
6
CRM/SFA
The center of the universe for our Sales Teams
How do we leverage this resource?
Use of the CRM and CLM Facts Content Accessibility; Content Usage
Facts:
33% of sales reps often/always get frustrated with their inability to locate appropriate content
78% of sales reps are affected on a bi-weekly basis (or more) by their inability to locate content
28% of sales reps feel that their company’s approach to organizing sales materials has left finding that material chance-driven, at best.
CRM Advances for an aligned and integrated approach
Veeva unveiled several Commercial Cloud products Jun 2015 Veeva Align
Veeva CRM Events Management.
Veeva Suggestion
Align is a global solution integrated with Veeva CRM for faster, more accurate sales territory alignments.
CRM Events Management: lets companies better manage all events in
coordination with field staff.
Also provides full visibility into activities, speakers, attendees and spend.
Veeva CRM Suggestions, a capability built into CRM to synthesize diverse
multichannel-communications data (for example, email communications and call-center activity) with customer demographic and business data
Competency Based Model
Defining desired behaviors, skills and actions to survive and thrive in the new and evolving marketplace
Competency based Model
8 1
2
45
7
36
6. Career Road Maps
5. Succession Planning
7. Business Process
Commercial Objectives
A well implemented Competency Management Program aligns individual and business goals resulting in a more engaged, adaptive, and successful workforce. The organization can align the workforce with the corporate strategy, goals, and objectives
Competency
Framework
1. Recruiting & selection
Job Descriptions
2. Training and Development
3. Performance Management
Job Success Profiles
4. Compensation and Rewards
8. Coaching Behaviors
and Expectations
Competency Management is a systematic approach to align individual performance to business strategy and goals. This process allows an organization to develop core and functional competencies to compete
now and in the future. Competencies are at the center of an effective talent management initiative.
Business Acumen: Makes business decisions and builds business plans by analyzing all available reports and
resources. Tailors decisions to individual customers based on the data and trends uncovered.
Related Impact Behaviors to be coached: Thinks Plans and Manages Account Strategically, Demonstrates Emotional
Intelligence & Social Awareness
Acquiring/Contributing Fully Functional Expert/Leading
• Knowledgeable of business resources
available at BIIB
• Able to locate and utilize all analytical
tools and resources
• Able to interpret reports (understands
reports)
• Can identify top accounts based on
potential
• Has general knowledge of Managed
Care landscape with understanding the
different channels of business
(Commercial, Medicare and Medicaid)
• Uses business planning resources to
plan and execute sales calls
• Consistently reviews business plan to
monitor progress and adjust plans
(“analyzing your business”)
• Utilize BIIB partners appropriately
based on business analysis
• Consistently executes a recognizable
call continuum
• Uses reports to tailor sales calls
• Invests resources in accounts with
greatest potential
• Fully leverages technology based
resources to make business decisions
• Understands and is able to identify
resources to analyze product access
and manages Pull through
opportunities
• Understands the impact of the
Managed Care landscape and product
reimbursement guidelines on company
profitability
• Uses tools to uncover unmet needs not
previously identified
• Use tools to identify opportunity with in
territory/office that will have greatest
impact on business
• Business plan impacts Division
• Influences development of reports for
National use
• Seen as Region/Division expert on
reports
• Can mentor/teach on reports/business
plans
• Identifies trends early before impact
affects business
• Demonstrates a deep understanding of
Managed Care landscape especially
Healthcare Reform changes and the
impact to the industry
• Proactively creates solutions for
maximizing the pull through opportunities
and successfully navigates push
through/disadvantaged situations (PA,
ST)
Sample Competency: BUSINESS ACUMEN
Competency Models for Various roles
1. Primary Care and Specialty Sales Rep/Hospital Rep
• Sales Rep I• Sales Specialist • Senior Sales Specialist
Focused on Functional competencies
2. Front Line Sales Management
• Primary Care Sales Manager• Hospital Sales Manager• Specialty Sales Force Mana
Focused on 50% Functional Competencies 50% Leadership Competences
3. Regional Business Director or
Regional Manager Focused on Leadership Competencies
29
Selling Models and SFE
Identifying and Defining the HCP Commercial Interaction and Interface
Sales Strategies and Selling Models over time
Source: The Challenger Sale, February 2013 Mathew Dixon & Brent Adamson of CEB
Five Clear Seller Profiles Identified
Seller Profile Types
n=6,600
• Reliably responds to internal
and external stakeholders
• Ensures that all problems
are solved
• Detail oriented
• Follows own instincts
• Self-assured
• Difficult to control
• Strong process management
skills
• Doesn’t give up easily
• Self-motivated
• Interested in feedback and
development
The Hard Worker The Lone Wolf The Problem Solver
The Relationship Builder
• Builds advocates in
customer organization
• Generous in giving time to
help others
• Good interpersonal skills
• Personalizes sales
message to the customer
• Knows how to drive the
customer to a decision
• Delivers new insight to
customers
The Challenger
Source: The Challenger Sale, February 2013 Mathew Dixon & Brent Adamson of CEB
Four Types in Professional Selling
wants immediate results and does not build long-
term relationships. He/she is not afraid of conflict
(neither with physicians, nor with his company).
Adapted to "disease oriented" doctors.
is open, multi-talented, productive in both the short
and the long term. He adapts his style to all
physicians, discussing the product but building a good
relationship.
just puts the product in front of the physician. Lacking assertiveness,
he/she does not raise any problem, as he always agrees with doctors.
is interested in friendship with doctors, selling
himself and his company more than products. The prescription is only the
reward of his good contact. Adapted to ”patient oriented" doctors.
INTEREST IN CUSTOMER
The ‘Seller’ The ‘Professional’
The ‘Relational’The ‘Presenter’
INTEREST IN SALES
INTEREST IN RELATIONSHIP
Sales Model - Example
2. Pre-call
Planning-
CRM
5. Treatment
Options5. Product
Discussion
7. Follow
Up
4. Probing
Discovery
6. Close
.Understanding the Patient
Pathway or Journey
.
Understanding how the HCP
treats the disease and their
goals for treatment for that
patient is critical
Customer Centric- keeping the Patient Journey in Mind
Customer
Centric Selling
HCP/Patient
1. Post Call
Analysis- CRM3.
Therapeutic
Patient
Centric
Opening
Messaging and Product Positioning-
appropriate therapy for the appropriate
patient at the appropriate time in the disease
course
Post Call and Pre Call Analysis
Use of the CRM data
Recording results/findings
The Path forward in SFE
Business Acumen and implementation
Formal training can educate sales teams on business acumen.
Yet, it is the FLSM that will need to reinforce this training.
This requires that FLSMs change how they execute their role
“Simply being a coach in the field four days
a week is obsolete. Our First Line Sales
Managers need to spend more time
planning with their reps and challenging
them on their territory and account plans. It
is less about coaching on a specific call.”
“Our First Line Sales Managers need to have a
deep understanding of today’s healthcare
environment. They need to anticipate significant
changes (e.g., integration of hospitals,
formulary changes) versus reacting to them.
“Today’s First Line Sales Managers need to have
excellent relationships with their top customers
and payers.
Our top physicians and payers are thousands
times more valuable than other our non user
physicians and accounts. We rely on our First
Line Sales Managers to develop deep
relationships that are mutually beneficial.”
*The First Line Sales Manager Evolution: A new role for a new pharmaceutical sales environment
White Paper- The Alexander Group 2012
Creating a Culture of Coaching Excellence
Front Line Sales Managers as your Field Force Multiplier
SFE and the Effectiveness of Managers
39
Current Coaching Situation
Why Sales Force Effectiveness?What are we solving for?
Enhanced Sales Outcomes and
Superior Execution
Robust Partnershipswith all stakeholders
Culture of Commercial and
Coaching Excellence
Sales Force Effectiveness (SFE) is a function to enhance sales outcomes as well as enrich the HCP/Pharma Company partnership to drive superior patient outcomes and leverage our products
and our sales force as the competitive differentiator with increased sales as the eventual outcome