Driving Operational Change Whilst Maintaining Field Force Motivation Damian Colehan
Transcription
Driving Operational Change Whilst Maintaining Field Force Motivation Damian Colehan
Driving Operational Change Whilst Maintaining Field Force Motivation Damian Colehan Julian Snape Nick Merryfield Agenda The Abbott journey – implementing change and improving productivity Monitoring success – what measures can be used? Measuring motivation and satisfaction Reflective leadership Company Confidential © 2007 Abbott 2 Environment & Objectives The industry’s sales forces are facing unprecedented change: - Key account management - Reduction in size - New roles - Fragmentation of NHS decision making - Evolution from primary care to secondary care focus Describe journey of sales force optimisation & effectiveness in Abbott from 2001 – 2007 Share examples of methods to achieve the maintenance & improvement of morale during change Create discussion and key learnings through Q&A Company Confidential © 2007 Abbott 3 Sales force optimisation - 6 main elements Resource Optimisation Size, structure, roles and focus of salesforce activity [targeting, frequency & coverage] Segmentation and Targeting Measurement Field Force Optimisation Motivation & Satisfaction Ability to monitor salesforce metrics and make tactical decisions Customer targets, prescribers and influencers defined by value Salesforce Planning Incentives Training and Competencies Ability and tools of salesforce to effectively plan at a territory and customer level Ability of salesforce to get the company message delivered effectively. Coaching and competencies. Company Confidential © 2007 Abbott 4 Salesforce and management incentive scheme modelling and sales target forecasting The Abbott journey……. • • Integrated Knoll Ltd • 4 primary care teams • 1 hospital team • Small HCD team 2001 • 2002 - Teams operating in clusters of isolation - Low accountability Refocused linear • Account management primary care team • Account based targeting Expanded secondary care capability • Local business planning • Personal development planning • Performance management • Expanded HCD team • Invest in 1st line manager development 2003 - Introduction of individual performance management metrics and performance rankings 2004 - Portfolio changes - Acceleration of specialist products - Focus on integration Company Confidential © 2007 Abbott 2005 5 2006 2007… - 65 Primary care representatives - 100 secondary care and NHS liaison specialists Abbott Case Study - Review Optimisation Elements Abbott recognised the need to benchmark sales force productivity in order to run a continual improvement programme This project commenced with a benchmarking project of the productivity elements through internal interviews and salesforce metric analysis An ongoing development programme was developed commencing with resource deployment Company Confidential © 2007 Abbott 6 The Abbott journey……. • Refocused linear • Account management • Integrated Knoll Ltd • primary care team • Account based targeting • 4 primary care teams • • Local business planning • 1 hospital team Expanded secondary care capability • • Small HCD team Personal development planning • Performance management 2001 2002 - Teams operating in clusters of isolation - Low accountability • Expanded HCD team • Invest in 1st line manager development 2003 - Introduction of individual performance management metrics and performance rankings 2004 - Portfolio changes - Acceleration of specialist products - Focus on integration Company Confidential © 2007 Abbott 2005 7 2006 2007… - 65 Primary care representatives - 100 secondary care and NHS liaison specialists Resource Levels – outcomes from strategic planning process • Design a sales force structure that would deliver the financial target!! • Headcount constraints • No redundancy policy • Future proof • Flexible resource if necessary Company Confidential © 2007 Abbott 8 Resource Levels – Analysis • There was an existing salesforce consisting of 2 mirrored teams, these were believed to be over resourced for product portfolio expectations • Project used a mixture of key personnel meetings, analysis and resource modelling. Resource Level Too high Product portfolio impact of high market pressure and patent expiry Impact of NHS Change Resource Issues Retain Best People Unknown impact of changes to PCOs and emerging local changes Minimise Disruption Manage motivation, satisfaction & loyalty Company Confidential © 2007 Abbott Product portfolio near term targets challenging 9 What is the right deployment of resource? Key methods of sales force configuration Maintaining customer relationships Motivation Retaining quality Delivering the numbers Implementing brand strategy Company Confidential © 2007 Abbott 10 Resource Optimisation Model - Drivers Product Strategies Customer Value Constraints Skills and Structure Required share of voice, frequency and coverage, disease management, KOL development and complexity of the sales model Required Prescribers and influencers, future opportunity value, profitability, sales sensitivity, optimum customer list size Corporate headcount, employee issues, management structure, territory sizes, call capacity, geography Suitable skills for different selling environments and customer types, territory size and structure Resource Optimisation Model Number of FTEs - Skills, Customer Groups, Team Structure, Territory Boundaries Model created scenarios including FTE workload index, then analysed disruption Company Confidential © 2007 Abbott 11 Resource Optimisation Model - Drivers Product Strategies Customer Value Constraints Skills and Structure Required share of voice, frequency and coverage, disease management, KOL development and complexity of the sales model Required Prescribers and influencers, future opportunity value, profitability, sales sensitivity, optimum customer list size Corporate headcount, employee issues, management structure, territory sizes, call capacity, geography Suitable skills for different selling environments and customer types, territory size and structure Resource Optimisation Model Number of FTEs - Skills, Customer Groups, Team Structure, Territory Boundaries Number of FTEs - Skills, Customer Groups, Team Structure, Territory Boundaries Optimum Salesforce Resource Deployment Company Confidential © 2007 Abbott 12 Business Value Concentration – ground up Business Value Index Concentration 100% 90% 80% 70% 60% 50% Business Value 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% Accounts Company Confidential © 2007 Abbott 13 60% 70% 80% 90% 100% Resource Levels - Implementation Recommendation was to move to a single team structure with a FTE reduction of nearly 30% Most customer relationships maintained -customer disruption of 29% Clear customer focused sales force structure able to deliver new strategies - account management - local business planning This would require the development of new KPIs centred around target customers target nurses with activity targets that were within the capacity Company Confidential © 2007 Abbott 14 Key Account Management Company Confidential © 2007 Abbott 15 Key Account Level Targeting Already recognised as a new area, it now needed immediate attention to push business forward NHS Liaison Support Address Portfolio Changes Account Strategy Changing Customer Base Company Confidential © 2007 Abbott 16 Changing Product Adoption Process Key Account Based Segmentation and Targeting This encompassed a number of elements: How is targeting implementation measured ? What elements describe a target customer or account ? Segmentation and Targeting What mix of influencers and prescribers ? What data sources should be used to value customers/accounts ? Company Confidential © 2007 Abbott 17 How will buy-in be achieved in the salesforce ? Calculating True Value Each account was valued for the relevant portfolio using 2 elements; POTENTIAL Account Value Volume of OPPORTUNITY to prescribe or refer brand specific disease treatments PROPENSITY Degree of LIKELIHOOD of increase in future prescribing, influence or referral for the brand Company Confidential © 2007 Abbott 18 Value Measurements POTENTIAL Customer Value Volume of OPPORTUNITY to prescribe or refer brand specific disease treatments Degree of LIKELIHOOD of increase in future prescribing, influence or referral for the brand • Market sales • Volume of patients by disease profile – e.g age, ethnicity, socio economic etc • Practice size – number of GPs, nurses, list size • Disease prevalence • QOF data • Disease management clinics/mechanisms for generating patients • Number of beds/treatment capability by disease* • Patient treatments/admissions by disease* • Hospital spend on disease area* • PCT funding/financial data • Size of catchment / referral areas* Company Confidential * Typically Secondary Care measurements © 2007 Abbott PROPENSITY • Own product sales – growth/volume/market share • Specific competitor usage profile • Attitudinal data – adoption, attitude to treatment of disease • PCT influence – formularies, protocols, guideline • PBC status and influence • Customer typology (qualification, special interest etc) • Disease management structure • Hospital formularies and protocols • Funding • KOL • Sophistication of structure to treat 19 Sophisticated Value in Clear Segments PROPENSITY Looking Lost Saboteur A Loyal Raving Fan Lodger Loyal B Lost The accounts were grouped into suitable segments relative to the brand strategy and communication channel to be used. They were combined to determine a portfolio value. Looking POTENTIAL Company Confidential © 2007 Abbott 20 The salesforce targets were crossed with accessibility to ensure a successful salesforce implementation Did it Work???? Company Confidential © 2007 Abbott 21 Results - targeted activity Activity is more focused on the productive targets at the right frequency GP Target Frequency 100% 90% 31% 80% Target Freq x4+ 58% 70% 60% 50% 11% Target Freq x3 13% 40% 18% 30% Increased size of productive frequency segment from Target Freq x1 31% to 58% 10% 11% 27% 11% Target Freq x0 11% 0% Nov 02 MAT 2003 73% to 89% Target Freq x2 20% 10% Target coverage up from Nov 03 MAT 2006 Company Confidential © 2007 Abbott 22 Results – Financial : sales growth, main brand Sales increase of 22% Market Share increase of 7% 1400000 1200000 1000000 800000 600000 400000 200000 0 Company Confidential © 2007 Abbott 23 What else changed? • Change in behaviour – account based targeting • Local business planning • Change in measurement – clearly defined personal KPIs • Change in incentives and rewards • Introduction of finely managed coaching system • Introduction of personal development plans • Increased days on road – 165 rose to 180 per rep • RM coaching days increased by 30% • Sickness reduced by 18% • Turnover reduced from 13% to 4% Company Confidential © 2007 Abbott 24 How Satisfied and Motivated Is Your Salesforce and How Do You Measure It? Damian Colehan Nick Merryfield Session Objectives 1. Demonstrate positive effect of benchmarking motivation through field force change • Limitations of relying on internal surveys for climate checking 2. Show six year trends relating to industry motivation & SFE • Real life examples of creating the right and wrong environment 3. Abbott initiatives taken to assist in developing motivation 4. Challenge whether your field force is motivated to embrace SFE and continuous improvement initiatives Company Confidential © 2007 Abbott 26 Questions • Do you: – Know the level of motivation in your salesforce compared to the industry? – Know what motivational factors are important to them? – REALLY consider their motivation through change – Impact on: – Sales – Activity – Customer perception of the company • Abbott very keen to know during period of change ~ 2004-07 Company Confidential © 2007 Abbott 27 Measuring Your Field Force’s Fitness to Take On Sales Force Effectiveness? The Pf Company Perception, Motivation and Satisfaction Survey 1. Survey Background 2. 6 Year Industry Trends 3. Real life examples of good & bad environments The Pf Company Perception, Motivation and Satisfaction Survey - Background • Pharmaceutical Field Magazine: • 2001 to 2007 • 12,000 responses • 2,300 in 2007 • Over 75 companies • Mix of primary, secondary, hospital, HDM, RBM, NSM responses • Expert Partner • Royal Statistical Society at the Nottingham Trent University Company Confidential © 2007 Abbott 29 The Pf Company Perception, Motivation and Satisfaction Survey - 6 Survey Aims • In relation to the field force: 1. What MOTIVATES them 2. How SATISFIED are they with motivational factors 3. RETENTION & RECRUITMENT 4. Who are EMPLOYERS of CHOICE 5. How do they use ETMS 6. Actual REMUNERATION packages Company Confidential © 2007 Abbott 30 Survey Method • Different from internal company surveys by: – Benchmarking against: • The Industry • Competitors (minimum of 4) – Sub analyse by infinite parameters via an ‘interrogation tool’: • Job Role • Length of time in role & industry & # of companies worked for • Sales performance • Geography • Full time / part time • Contract / head count Company Confidential © 2007 Abbott 31 CATEGORY 1: Motivating Factors of the Field Force Q. Responders were asked to rank their Top 7 most important work factors from a list of 16 options. Change in Important Work Factors 2002 to 2007 PHARMACEUTICAL INDUSTRY TOP 7 IMPORTANT WORK FACTORS Rank 2002 2007 Change 07 to 02 1 Salary Salary = 2 Personal Development Rel with Manager Up 1 3 Rel with Manager Company Culture Up 6 4 Bonus (Down 5 in 07) Belief in Products Up 2 5 Success Recognition Job Security Up 2 6 Belief in Product Success Recognition Down 1 7 Job Security Personal Development Down 5 Rel with Manager = Relationship with Manager Company Confidential © 2007 Abbott 33 CATEGORY 2: How Satisfied are the Field Force Q. Responders were asked to score their satisfaction with each motivational factor: Very Satisfied Satisfied Average/No Opinion Dissatisfied Very Dissatisfied +2 +1 0 -1 -2 Satisfaction SCALE CONVERSION Company Confidential © 2007 Abbott Very Satisfied 100 Satisfied 50 Average 0 Dissatisfied -50 Very Dissatisfied -100 35 Change in Satisfaction Very Satisfied 100 Satisfied 50 Average 0 Dissatisfied -50 Very Dissatisfied -100 Change in Average Level of Satisfaction With Top 7 Motivational Factors 02 to 06 2002 2006 % Change 02 to 06 All Responders 30 35 14% Highest Sales Reps 38 33 -17% In 2007 – All Responders Average Satisfaction Remained at 35 – Highest Sales Performers Increased to Average 37 Company Confidential © 2007 Abbott 36 The Power of the Survey Real Life Example Top 10 Pharmaceutical Co. Satisfaction with Top 7 Motivational Factors Comp X - Satisfaction With Top 7 Factors 1.5 Scale: Very Satisfied Satisfied Average/No Opinion Dissatisfied Very Dissatisfied Satisfaction 1 +2 +1 0 -1 -2 0.5 Comp X 0 r Pe b Jo n so ity ur v De al c Se el on t en m op ti ni og 38 c Re re ts r ge lt u Cu a an uc od Pr ny n ss ce fi M Company Confidential © 2007 Abbott c Su ie pa m Co l Be ith W y ar l Re l Sa -0.5 Satisfaction with Top 7 Factors Scale: Very Satisfied Satisfied Average/No Opinion Dissatisfied Very Dissatisfied Company Confidential © 2007 Abbott 39 +2 +1 0 -1 -2 Satisfaction With Top 7 Factors Very Satisfied +2 +1 0 -1 -2 Satisfied Average/No Opinion Dissatisfied Very Dissatisfied 1.5 Satisfaction 1 0.5 Comp X Industry Competitors 0 rit cu Se y n en pm lo ve De al on rs Pe b Jo o iti gn co Re t 40 s es cc Su re ltu Cu s er ag an t uc od Pr M Company Confidential © 2007 Abbott ny pa m Co n fi li e Be ith lW Re ry la Sa -0.5 Satisfaction of Top 7 Factors Very Satisfied Satisfied Average/No Opinion Dissatisfied Very Dissatisfied 1.5 +2 +1 0 -1 -2 Satisfaction 1 0.5 Comp X Industry Competitors 0 en pm lo ve De al on rs Pe b Jo s es cc Su ny pa m Co n fi li e Be ith lW Re ry la Sa o iti gn co Re t uc od Pr M rit cu Se Averaging all satisfaction scores identifies real problems: y re ltu Cu s -0.5 er ag an •Industry employees are twice as satisfied compared to Comp. X 41 t Company Confidential © 2007 Abbott n •Competitor employees are nearly three times more satisfied Example of a High Performing Companies Comp A Comp B Industry 1 Comp A Comp B Satisfaction 1.5 0.5 0 Pe b e ev o iti er s ct ag an n en pm lo n og re tu ul ec C M u od Pr y R y rit lD s cu Se a on rs Jo es n pa cc Su om n fi ry la ith W el ie el C B R Sa 43 Company Confidential © 2007 Abbott t CATEGORY 3 Attrition Do they Want to Stay or Go? Attrition Q. Do you intend to move from your present employer in the next 12 months? • 2007 = 14% said YES • 2002 = 24% said YES • Change in 6 years = -35% • Comp X, A&B = 23%, <5% Company Confidential © 2007 Abbott 45 CATEGORY 4 Use of Electronic Territory Management Systems Series of Questions to Establish Whether Field Forces Actually Use ETMS Summary of ETMS Use • Only 50% will take a system with them most days • Only 30% will definitely set a pre call objective every call • 40% may not bother with a post call report • 20% of 1:1 calls may be dishonestly recorded • 40% of meeting calls may be dishonest • And 50% of key messages may be made up • Conclusion: • Choose your ETMS provider carefully – home grown maybe best! • Interpret your post marketing research with caution • Engage your field force to get a quick win over the competition Company Confidential © 2007 Abbott 47 CATEGORY 5 Employer of Choice Is Your Organisation Capable of Attracting the Best Talent? Employers of Choice 2002 Went With Company £Turnover Company Rank 2002 GlaxoSmithKline 1 Pfizer 2 Merck Sharp & Dohme 3 Janssen-Cilag 4 Eli Lilly & Company 5 Wyeth 6 Roche 7 Schering Plough 8 Company Confidential © 2007 Abbott 49 Employers of Choice 2007 All Change Company Rank 2007 Roche 1 Boehringer Ingelheim 2 Eli Lilly & Company 3 Sanofi-Aventis 4 Schering Plough 5 Janssen-Cilag 6 Schering 7 Novartis 8 Wyeth 9 Proctor & Gamble 10 Company Confidential © 2007 Abbott 50 Summary • The survey will answer: 1. What Motivates the different groups of reps 2. How Satisfied these groups are 3. Whether they want leave you 4. Do they use your ETMS 5. Can you attract the best talent 6. Are you paying competitive remuneration packages • Back to Damian Colehan Company Confidential © 2007 Abbott 51 The Abbott Story A Tale of Two Halves The Abbott Story First Half 2001 – 2003 • Knoll integration 2001. • Small Pharma business to midsize in six months. • Merging of two cultures and systems. • Focus on cultural integration. • ETMS launch. Company Confidential © 2007 Abbott 53 2001 - 2003 2001 – 2003 cont. • Realignment of salesforce evaluation of larger Secondary Care business. • Salesforce re-alignment. • Development of five year strategic plan. • Introduction of European SFE programme. • Market share based incentives (limited bonus). • Investment in Regional Manager training. – Performance management • Little consideration on field force motivation Company Confidential © 2007 Abbott 54 2003 The Results - Levels of Satisfaction Average work factor satisfaction score ( profile scenario 1 ) 2 1.5 1 0.5 0 -0.5 -1 R y e s e y nt s er re s ts ry m e us ic ir ty i e in e m l g l u s m c a l e t t i l n t l l e o a e u e i no pm P sa cu ip ys ib Sa Bo cu cc ch an o od o e r r s p l t r s u s s y a o l m f ve ct C tp on rs Au re y sa an e ct u ob i n p t u a i p d e d l J a e s r m yo bi ro Sh pr re al di es o f a p l p r n t o C a p ith na re so na t. g. n r i o w u u i t c o e t f o P ip d i Confidential ec Fu tru l ie cc Company 55 d S R e 'l sh A A 2007 Abbott B © e The Abbott Story Second Half ~ 2004 to 2006 and beyond 2004 / 2006 • More change expected BUT • High consideration of FF motivation: – Sales management restructure. – Embed strategic plan – new sense of purpose and direction. – Open honest communication. – Second restructure of Primary Care (no redundancies). – Focus on local SFE priorities. – New company car scheme. – Sales incentives volume growth based. – Salary benchmarking. – Re-introduction of overseas conference. – Greater FF involvement in customer targeting. • Evolution to key account management . Company Confidential © 2007 Abbott 57 Top 5 Important Work Factors for Abbott Personnel Of the 16 motivational factors available to choose from, Abbott ranked the following five as the most important 1. Salary 2. Job Security 3. Company Culture 4. Relationship with Manager 5. Bonus Company Confidential © 2007 Abbott 58 R p P e w ns ith io A cc di n s ou rec ch P nta t m em er so bili an e na ty ag l d f or er A dd ev s iti e a S on h lop les al ar m re e s en sp ch t C on em om si e pa bili R t ny ies e B cog cu el ie . o A ltu f f u re S in p you ton tru r o r ct ese su my .A n c pp t p ces ra ro s is du al ct s s Jo yst b em se c Fu C ur tu ar ity re po pr lic od y uc Sa t p la ip ry el in B e on us el 's hi Satisfaction With Motivational Factors 2006 Average satisfaction scores for all work factors 2 1.5 1 Abbott Laboratories Profile 0.5 Company Selection 0 -0.5 Company Confidential © 2007 Abbott 59 Do People Want to Stay or Go in 2006? Career progression in the next 12 months Abbott Laboratories Move comp Move pos Profile Remain Other Selected Companies 0% 20% 40% Company Confidential © 2007 Abbott 60% 60 80% 100% Company Culture Satisfied with company culture 2003 In 2006: Abbott Laboratories dissatisfied no opinion Profile satisfied Selection ( 51 ) 0% 19% greater than industry 20% 40% 60% 80% 20% greater than in Abbott three years ago 100% Satisfied with company culture Abbott Laboratories 2006 Dissatisfied No Opinion Profile Satisfied Selected Companies 0% 20% 40% Company Confidential © 2007 Abbott 60% 80% 61 100% Summary Comparing the 2003 satisfaction results against 2006, for the same 7 factors for the Highest Performers: Abbott Industry 2003 +0.88 +0.38 2006 +1.44 +0.33 The industry’s average satisfaction had dropped by 17% Abbott’s average satisfaction had increased by 63% Company Confidential © 2007 Abbott 62 The Abbott Story And Beyond – Satisfaction Levels this Year ~ 2007 R p wi th di re Pe ct ns ma Be lie C ion nag f i om s e n c r pr pa he n es y me en cu t p ltu ro re Ac du A co ut ct s P un Jo on Ad ers tab b s om di on ility ec y tio al f o uri R nal dev r s ty ec re e al St og. spo lopm es ru o n ct f y sib en .A o i t pp ur s lit ie ra u c s is c Sh al es ar sys s e sc t em h C em ar e Fu po tu lic re Sa y pr la od uc Bo ry t p nu ip s el in e hi el 's And Beyond – Satisfaction Levels 2007 Average satisfaction scores for all work factors 1.6 1.4 1.2 1 0.8 Abbott Laboratories 0.6 Profile 0.4 Company Selection 0.2 0 -0.2 -0.4 Company Confidential © 2007 Abbott 64 Reflective Leadership Company Confidential © 2007 Abbott 65 Reflective Leadership • Engage all the stakeholders – MD/CEO, Board, Sales & Marketing etc • Have clear focus with end results explicitly defined • Have detailed planning with contingencies • Make the difficult decisions at the right time – do not delay • Have constant communication • Ensure the sales force is trained to operate in the new environment • Monitor performance through pro-active use of KPIs and external benchmarking data • Find the right supplier – build trust and understanding & brief them clearly Listen and be open to feedback • Operate a continuous improvement culture – review regularly Company Confidential © 2007 Abbott 66 THANK YOU Questions? Company Confidential © 2007 Abbott 67