Evolving Your Model to Support the Transition from Individual … · · 2017-03-01Support the...
Transcript of Evolving Your Model to Support the Transition from Individual … · · 2017-03-01Support the...
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Evolving Your Model to Support the Transition from Individual to Network-Based Relationships
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Disclaimer
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Navigating the Complexities of Working with Health Systems
● Designing a Go-To-Market Platform to address the Customer’s evolving needs and decision making processes
● Evolving the engagement approach across your entire Organization between KAMs, DM& Reps, Medical, HEOR and Marketing
● Understand how to set-up collaboration from the Enterprise- to the HCP level
Agenda
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Pharma’s
It Starts with Creating Customer Centricity
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Sunovion
But many are confused about “Customer Centricity”, it’s still about Selling Ketchup!
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First define your Commercial Strategy; eventually evolving tactics to market/operational improvements
CUSTOMER FOCUS & GROWTH STRATEGY
GO TO MARKET STRATEGY
MARKETING & SALES OPERATIONS
• Needs• Buying processes &
preferences• Attitudes, perceptions &
satisfaction• Profitability• Potential
• Strategy• Strengths & weaknesses
Competitor Insight
CustomerInsight
Segmentation & Targeting
• Market offering • Pricing• Brand strategy• Positioning• Value
proposition
• Sales force design (direct, indirect)
• Structure & roles
• Critical activities & processes
• Roles, metrics & enablers
Sales Channels Strategy
Sales Process
How
How
What
Value Proposition
What
• Account to channel alignment
• Sizing & resource allocation
• Territories
• Investment levels• Targeting & sequencing
• Knowledge• Skills• Behaviors• Values
Competency Model
Sizing & Deployment
Marketing Mix
Hiring, Training & Coaching
Success Measures
Compensation & Motivation Programs
Performance Management
Information & Tools
Marketing & Sales Analytics
Who
Phase 1 – Establishing a Standard Baseline Phase 2 – Scaling & equipping the model
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Question:
Has your Organization
moved to a more Customer
Centric approach?
If so, now did you do it?
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Collaboration across all Team Members within the Account Team Model Provides a Consistent Customer Experience
SP&C supports development of Brand and Channel Contract Stratagies & Implementation
KAM
Sales Colleague
Works with Key Accounts to identify shared agenda, develop plan and execute throughout organization in concert with Customers
Focuses on efficiency and quality in appropriate categories to pull through shared agenda
Enable Customer-focused selling
Develops Tools
/ Resources
appropriate for
“Organized
Customers,
Pull/push mutual value opportunities through organization
Identify impact of mutual value collaborations
MM AD
Others
Leads Payer Account Initiatives, aligns with team to focus on pull-through & aligned payer / provider opportunities
Aligned Stakeholders that can support the development or execution of Customer Planning, Stratagies and Tactics; Govt. Affairs, Training, etc.
MSL & HEOR support both Payer Customers and Health System Customers
HEORMSL
Inst. Sales Colleague
LEADERS(CEO, CFO, CMO)
Organized Health Systems
PAYERS
Focuses on delivering a tailored & compliant brand messaging to prescribers aligned to their needs
SP&CMarketing
EVALUATORS(KOL, Med. Director, Quality Director)
PRESCRIBERS(Individual Provider, Office Manager, PA/NP)
Source opportunities Up to Leadership
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What Are We Trying to Accomplish?
StructureToo many overlapping relationships – multiple
roles calling on the same leaders Limited coordination, no governance – risk of
missed opportunities
StructureAn Enterprise Account Manager will lead
engagement with Key Customer and coordinate all Pharma resources
Enabling Functions will adapt to support as needed
Current Approach New Approach
Hypothesis Improved EFFECTIVENESS of interactions and leads to a better value proposition – supporting revenue improvement Greater EFFICIENCY of engagement – supporting cost optimization, productivity improvements
Pharma
(All physical channels)
Customer
(Major Health System)
Senior Leadership C - Suite
CGC AM Medical Leadership
PCBU KAM Quality Mgmt. Leadership
ONC SAM Therapeutic Area Leadership
EPBU AM Academic & Research Leadership
SCBU AM System Management & Finance
VACC AM Pharmacy (Health Plan)
FBM Pharmacy (System)
DBMs / RMs (All BUs) Health Plan Management
Reps (All BUs) Oncology HCPs / KOLs
Regional / Customer Marketing Specialty HCPs / KOLs
R&D Primary HCPs / KOLs
Pharma
(All physical channels)
Senior Leadership
CGC AM
PCBU KAM
ONC SAM
EPBU AM
SCBU AM
VACC AM
FBM
DBMs / RMs (All BUs)
Reps (All BUs)
Regional / Customer Marketing
R&D
Customer
(Major Health System)
C -Suite
Medical Leadership
Quality Mgmt. Leadership
Therapeutic Area Leadership
Academic & Research Leadership
System Management & Finance
Pharmacy (Health Plan)
Pharmacy (System)
Health Plan Management
Oncology HCPs / KOLs
Specialty HCPs / KOLs
Primary HCPs / KOLs
!
Enterprise
Account
Manager
Coordinates
account
activity
Manages
senior
relationships
Single point
of contact
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New Competencies may be Required
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● Demonstrates the Ability to Achieve Mutual Business Goals
● Possesses sufficient Tenure and Acumen with Health Systems
● Superior Negotiation Skills
● Collaboration Skills to identify Solutions that Preserve or Enhance the Customer Relationship
● Identifies and Provides Programs that Meet Customer Needs and Ensure Measurable Value
● Balances Interactions that Support both the Customer Need and Their Organization Objectives
● Consensus Selling Skills
KAM Competencies must also be Evolved
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Question:
Has your Organization
adopted an Enterprise
Approach?
If so, how is it working?
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Case Study
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FROM TO
Case for change
• Sophisticated Health uses over 150 treatment protocols embedded in the EHR system, covering over half of
Sophisticated’s patients. Protocol decisions are based on outcomes making evidence of value of our medicines
critical.
• While not the highest, Sophisticated has a 88% generics rate, which can be driven higher (or lower) based on the
medication recommendations embedded in treatment protocols.
• Sophisticated is collaborating with 5 major US health systems to aggregate data and create care models to inform
use of new reimbursement models. Further supporting the need for assessments of value our medicines bring.
• The payer arm of Sophisticated Health Care, influenced by recommendations by Sophisticated “Opinion Leader”
physicians and by rebate levels, calling for integrated Account Management structure.
• Sophisticated turning to digital tools and announced a significant partnership in Jan 2013 to create mobile apps for
clinical care, physicians, nurses, patients and health plan members
Sophisticated Health System Case Study
Account Managers by Business Unit loosely together, with
traditional reps
Fully integrated Account team across products and across Business
Units to create one point of accountability and communication
Sales reps providing 1:1 medical information to independent
HCPs and focus on brand marketing
System reps to influence where treatment protocols present doctor
choice/Medical to interact with treatment protocol makers to show
value
Limited use of alternative channels to interface with
physicians
In person interactions used where effective and required , balanced
with digital channels used more broadly
Traditional model investment in studies and promotion Sequential investment to develop outcomes data to prove value
before deployment of commercial resources
Market development driven by promotion and traditional
advertising and marketing channels
Market development driven by guidelines and “Opinion Leaders” within
advanced systems
Proving clinical efficacy and safety for regulatory bodies Proving significant product efficacy/ safety & value based on outcomes
advantage against accepted standard
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Sophisticated Health case study
RationaleCategory$4M
Sophisticated Health Expense
-20%
Account Mgmt Fully integrated Account team across products and
across the Company to create one point of
accountability
Reps System reps to influence choice in treatment
protocols
Customer-Facing
Medical (MSL) Medical to interact with physicians designing
treatment protocols to show value
Multichannel (MCM) In person interactions used where effective, balanced
with digital channels used more broadly
Customer Marketing Support for Account Management focus to provide value
propositions and customer solutions
Brand Marketing Reduction in brand promotion (adtg, promotion tools) to
drive patient and physician choice
Outcomes Evidence Proving product efficacy and safety, plus value based on
outcomes advantage vs accepted standard
Rebates Moderate increase , and shift focus to products
competing against medicines with similar value
Other Reduced operations support for field and marketing
promotion
$5M
Category
Act Mgmt
Reps
MSL
MCM
Rebates
Outcomes
Cust Mktg
Brand Mktg
Pre Post
Determine whether a Unified Customer Strategy /
Enterprise Account Management approach is the
optimal approach for our strategic value provider
customer accounts
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Partner Collaborative Transactional Stressed
Baxter 56% 26% 9% 9%
Merck 54% 24% 16% 6%
Sanofi 47% 7% 33% 13%
Pfizer 46% 43% 3% 8%
Hospira 43% 22% 18% 17%
Abbott 41% 41% 18% 0%
Lilly 31% 38% 28% 3%
Genentech 29% 46% 21% 4%
GlaxoSmithKline 27% 51% 17% 5%
Ortho-McNeil-Janssen 26% 42% 21% 11%
Industry average 26% 31% 28% 15%Source: Health Strategies Group, Account Management Advantage: Institutional Channel, June 2013.
Relationship Distribution: Top 10 Companies(Percentage health system/hospital c-suite decision makers indicating relationship status with company)
Improving Relationships with Health Systems
Partner Collaborative Transactional Stressed None
Pfizer 11% 34% 32% 21% 2%Source: Health Strategies Group, Account Management Advantage: Institutional Channel, June 2012
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• Colleagues are wired to be
brand-centric, not customer-
centric
• EAM capability development
may be needed to evolve to a
more customer-centric
approach
• Brand-focused approach with
heavy emphasis on HCPs
• Customer-focused approach
is difficult to execute within
current model (limited data,
processes, know-how, etc.)
• Enterprise view of Pharma’s
business (Rx, sales) at IDNs
does not currently exist
• Some customers expect this
approach
• Others have indicated that it
maybe too much for one
individual to manage
• Some competitors have
already implemented their
version of EAM
• We currently lack an
enterprise understanding of
organized customers
• There is limited coordination
and siloed interaction among
field colleagues covering
organized customers
• The approach will need to be
tailored for each customer
• Some customers are more
fragmented than others and
are working towards
integration
• Opportunities and resourcing
will need to be tailored to the
customer and their
environment
• Impact will depend on the
customer’s baseline, aligned
interests and time horizon
• Expect various outcomes for
each customer
– Revenue protection
– Revenue upside
– Better resource allocation
– Improved customer
satisfaction
Behind Early Adopter
CurveTunnel Vision Not One Size Fits All
Difficult to Get Things
DoneColleague Capabilities Flavors of Success
Key Learnings
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Engaging differentiated customers requires a flexible commercial approach
Paradigm 1Share of Voice
Traditional promotional messages
Focus on rep-based interaction
Paradigm 2Share of Voice “Plus”
Traditional messages with added cost, quality focus
Combination of reps and basic account management
Paradigm 3Key Account Management
Focus on value-adding solutions, partnerships and quality outcomes
True key account management, developing toward enterprise coordination
Complexity of approach
KA
M F
ocu
s +
Ente
rpri
se C
han
ne
ls
+ +
Shar
e o
f V
oic
e F
ocu
s +
Low
Co
st C
han
ne
ls
There is not “One Model” as in the past
Low Customer Sophistication and Integration High
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Phase 1 Phase 2 Phase 3
TIME
CA
PAB
ILIT
Y A
ND
FIN
AN
CIA
L IM
PAC
T
ORGANIZED CUSTOMER APPROACH ESTABLISHED
COLLEAGUE CAPABILITY ENHANCEMENT
Evolving your Commercial Model will take time
Establishing a standard baseline
Scaling and equipping the model
Optimization and performance enhancement
Experience – to deliver
Investment – to develop
Capability – to enable
Support – to innovate
COMMERCIAL EVOLUTION
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Q A