Sales Force Effectiveness - Channel...

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


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


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


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

Sales Force Effectiveness - Channel...

Documents

Transcript of Sales Force Effectiveness - Channel...