Sales

When the word crisis is mentioned nowadays, what immediately comes to mind is world crisis like the current economic meltdown. Actually, no one knows to what extent any such crisis will affect the pharmaceutical market, but there are already plenty of threats surrounding the industry such as: lack of new products to launch, patent expiration, market access and regulatory issues. So regardless of a world crisis, the pharmaceutical environment already has enough elements to trigger a crisis within itself.

When companies operate in fair weather and exist in a comfort zone, they often relax about KPI control, SFE metrics, targeting based on segmentation, resource allocation monitoring and many other formalities. In fact, the first approach often taken when companies are under attack is to search for solutions with the same metrics that have previously lapsed.

There are some key behaviors which pharma companies need to follow in order to stay dynamic and competitive when the economic situation is tough. This should also ensure that when the market improves, companies are prepared to capitalize in a revitalized environment.

1. Have a set of effective SFE metrics and share them with the sales force
At least twice a year (ideally, once per quarter), proof that your strategy really works must be shared with the team. Keeping your SFE metrics in good shape leads to market share growth, and it is worth noting that the top pharma performers are excellent in both areas. When it comes to market share and prescription share evolution, an evaluation that considers sliding quarters should be adopted as a way to stretch performance.

2. Always revise sales force size and deployment annually
Even if a new product is not being launched, the market is dynamic, and teams can be allocated in more rational ways to maximize existing opportunities. Also, different sales channels or product areas could be explored through a dedicated sales force.

3. Do not cut training budgets
If there is no way out, retain the budget to train at least district managers and top performing sales reps. Well trained DMs will ensure sales rep teams are effective. And training top performers is a good way to motivate and retain people who are effectively contributing to company results.

4. Keep recognition programs
Even if the company is not performing well as a whole, there is usually a group of people who are contributing above the average and they deserve to be recognized.

5. Make your budget work hard when planning a sales meeting
Budget constraints while planning a sales meeting shouldnt mean you cannot find a good venue for the event or develop a good agenda, balancing work and motivational themes. Remember, there are few opportunities to have the whole group together, so these moments must be positive and stimulating for them.

6. Avoid allowing internal (headquarter) noise to contaminate the sales force.
Rectifying a miscommunication can take a lot of time. Sometimes the damage is irreversible, especially when it involves sales force motivation and can lead to frustration.

7. Revise all budget distribution across the accounts
Move investment from what is not adding value to something that will, such as a new benefit for sales reps. People will feel that they are being heard and valued. Its simply a question of smart resource allocation.

8. Be present in the field
If sales and marketing managers disappear from the field, the sales force will feel insecure. This can create poor implementation of strategies and lead to reduced productivity. Furthermore, management coaching is fundamental to ensure continued staff development and to boost productivity.

9. Capitalize on small victories
This is fundamental, especially if its difficult to win big victories. Lack of celebration can translate to a lack of energy, and as time goes by, the mood will only worsen.

10. Keep one eye on the successful past and the other on visualizing a better future
Always remind the sales force about what they have already done successfully to show them that a better future is possible. Work hard now, with the same dedication of the past, and get a shiny future as a reward.

To conclude, everything depends on the attitude with which teams look at and deal with the situation. Difficulties must be faced as challenges to be overcome and as a learning/development process, not as an obstacle that stops forward progress. But remember, when success is realized, it doesnt mean that its time to relax.

So, there are two paths to consider:

1. Difficulty = Problems = Crisis = Chaos

2. Difficulty = Opportunity = Success = Innovation and Excellence

The choice is yours!

*see also Lisa Roners interview with Hans Nagl in SFE metrics more important than never in a tough market