Pharma Field Force Excellence and BrandStorm 2015

MEDICINMANField Force excellence

TM

January 2015 | www.medicinman.net

Since 2011

As the Indian Pharma industry steps into the New Year, many of the methods it employed to grow to its present

size and scale are under severe scrutiny of regulatory authorities like USFDA, the global media, governments and civil society.

VUCA (Volatile, Uncertain, Complex & Ambiguous) factors are impacting both MNC and domestic pharma through compulsory licensing, NLEM, DPCO, UCPMP, MCI and IMA guidelines on ethics in medical practice.

To thrive in this VUCA world, pharma companies will need to shift from a fixed mindset of growth at any cost and develop a growth mindset to learn new ways of doing business. Growth at any cost may have brought in profits and dividends in the past. But as the case of Eris Lifesciences clearly show, these are not sustainable. One wonders how many more such cases need to come into media glare, public scrutiny and judicial action before pharma and doctors give up the practice of quid pro quo?

Three hundred doctors have been issued notice by the MCI according to media reports. The MCI has also issued a directive that explicitly prohibits doctors from accepting any kind of inducement from pharma companies. Will doctors continue to defy such directives and risk tarnishing their image and losing their license to practice?

EDITORIAL

GROWTH FIXATION OR GROWTH MINDSET

http://medicinman.net

Editorial

Connect with Anup Soans on LinkedIn | Facebook | Twitter

Anup Soans is an Author, Facilitator and the Editor of MedicinMan.

Write in to him: [email protected]

Meet the editor

Unsettled by the media highlight on corruption in medical practice, the IMA has also come out with clear directions aimed at stopping the rampant cut-practice referral system between doctors, diagnostic labs, pharma, medical devices and other players in the healthcare delivery chain. IMA is the largest body of medical practitioners in India and is obviously concerned with the growing adverse media reports and its impact on the reputation of the medical fraternity.

Clearly pharma companies in India need to move away from their growth fixation to a growth mindset. Annual growth rates in excess of forty percent by many pharma companies are clearly not based on excellence in business strategies but on CRM, a euphemism for Corrupt Rx Methods!

The good news is, companies like GSK and a few others have taken the lead in demonstrating growth mindset by moving away from the old methods and reinventing the pharma business model by rewarding its field force for customer satisfaction that leads to secondary sales, instead of sales targets that lead to unethical practices, where Medical Reps have to pay part of their salary to distributors to take on stocks more than market demand.

To know more about how you can learn and acquire the growth mindset, be there at FFE and BrandStorm 2015 to learn from a galaxy of Indian Pharma thought leaders, where we will be deliberating how pharma companies in India can continue to grow meaningfully through patient centric strategy, engaging governments, payers, media and civil society, brand building through digital and other avenues and social learning for field force excellence. -MM

”

Clearly pharma companies in India

need to move away from their

growth fixation to a growth mindset.

Annual growth rates in excess of

forty percent by many pharma

companies are clearly not based on

excellence in business strategies but

on CRM, a euphemism for Corrupt

Rx Methods!

MedicinMan Volume 5 Issue 1 | January 2015

Editor and Publisher

Anup Soans

CEO

Chhaya Sankath

COO

Arvind Nair

Chief Mentor

K. Hariram

Advisory Board

Prof. Vivek v; Jolly Mathews

Editorial Board

Salil Kallianpur; Dr. Shalini Ratan; Shashin Bodawala; Prabhakar Shetty; Vardarajan S; Dr. Mandar Kubal; Dr. Surinder Kumar

International Editorial Board

Hanno Wolfram; Renie McClay

Executive Editor

Joshua Soans

MedicinMan Academy:

Prof. Vivek Hattangadi, Dean, Professional Skills

Development

Letters to the Editor: [email protected]

1. Waiting for Change..............................................8

A majority of Indians lack access to affordable healthcare. Will the new year bode well for them?

K. Hariram

2. First-Time Managers..........................................11

5 important reasons to groom first-time managers

for the job.

Madan Panathula

3. The Future of Incentive Calculation................14

Sophistication and transparency are two reasons

among many to move from Excel-based incentive

calculation to a tailor-made, cloud-based

solution

Amit Jain

4. The Future of Pharma: Moving Beyond the Pill..................................................................................19

The future of pharma lies in creating “intangible assets” by “treating patients” rather than simply pushing drug sales.

Hanno Wolfram

(Click to navigate)

CONTENTS

8 19

BRANDST RM 2015BRAINSTORMING FOR PHARMA BRAND MANAGERS

13th March 2015, Mumbai

FFE 2015FIELD FORCE EXCELLENCE


PHARMA'S TWO MOST AWAITED EVENTS OF

2015 ARE HERE!Block the Dates: Fri, 13th & Sat, 14th March 2015

Oberoi Garden City, Goregaon East, Mumbai

Register Now!

BRANDST RM 2015BRAINSTORMING FOR PHARMA BRAND MANAGERS

MEDICINMAN

Kiran Khalap

Salil Kallianpur Amlesh Ranjan

Manish Bhagat

Susan Joshi


Anup Soans

Key Topics at BrandStorm 2015

L How to launch and sustain brands in a VUCA world

L Harnessing digital & social media

L Patient-centric care

L Medical Affairs and KOL management

Target Audience: Product Managers, Group Product Managers, Marketing Managers & Digital Marketing teams

First announcement; detailed program schedule to follow

MEDICINMAN

FFE 2015FIELD FORCE EXCELLENCE


CEO Breakfast

Shakti Chakraborty

Bhasker Iyer Sujay Shetty

Ganesh Nayak

Key Topics at FFE 2015The only pharma event in India with a CEO Roundtable on Field Force Excellence

L Managing the Millennial Field Force: Challenges & Opportunities

L Social Learning for Field Force - A viable option?

L Data Analytics: Can it provide actionable insights for segmented marketing?

Target Audience: Sales & Marketing Heads, SBU Heads, Senior Managers in HR, Training, SFE and other Field Force-related functions

First announcement; detailed program schedule to follow

REGISTRATION

Hosted by www.MedicinMan.net. Organized by Knowledge Media Venturz.

DELEGATE FEE* MATRIX FOR FFE 2015 & BRANDSTORM 2015

All figures in INR FFE BRANDSTORM BOTH

PHARMA DELEGATES 8,500/- 6,500/- 12,000/-

SERVICE PROVIDERS# 15,000/- 15,000/- 25,000/-

EARLY BIRD OFFER (BEFORE 20th January 2015)

PHARMA DELEGATES 7,500/- 5,500/- 10,000/-

SERVICE PROVIDERS# 12,500/- 12,500/- 20,000/-

To register, make payment and submit payment and delegate details by email to Chhaya Sankath ([email protected]) or register online: medicinman.net/2014/12/brandstorm-ffe-2015-registration

CHEQUE PAYMENT

Payment must be made in INR by Cheque / Bank Draft and must be received prior to the conference. Cheques to be issued in the name of “KNOWLEDGE MEDIA VENTURZ LLP”, payable at Mumbai.

SEND CHEQUES TO:Chhaya Sankath, A-302, Kshitij C. H. S. L., Off Film City Road, Behind Satellite Towers, Goregaon East, Mumbai 400 063

PAY BY ACCOUNT TRANSFERNEFT DETAILS BANK: AXIS BANK BRANCH: GOREGAON WEST, MUMBAI (MH), GR FLR, PATKAR COLLEGE, S V ROAD, GOREGAON WEST, MUMBAI -62. ACCOUNT NAME: KNOWLEDGE MEDIA VENTURZ LLPACCOUNT NO: 913020033732313 IFSC CODE: UTIB0000647

DELEGATE DETAILS (TO BE SENT ALONG WITH DETAILS OF PAYMENT)NAME:COMPANY:DESIGNATION:ADDRESS: EMAIL: MOBILE:DETAILS OF CHEQUE/ NEFT TRANSFER:

PAYMENT OPTIONS

*Add Service Tax @ 12.36% # Only 10 Service Provider passes available, on a first-come, first-serve basis

8 | MedicinMan January 2015

2014 has been an eventful year for Indian Pharma. The Indian Pharma industry witnessed quite a few happenings such as a change of gov-ernment and therefore new leadership, shocking and unexpected price

controls beyond the original DPCO list of NLEMs, a new stand on intellectual property rights (IPR), strengthening of ties with US and more acquisitions and mega mergers (e.g.: Sun buying out Ranbaxy). To cap it all, the Ministry of Chemicals and Fertilizers through its Department of Pharmaceuticals (DOP) announced the development and implementation of a voluntary Uniform Code for Pharmaceuticals Marketing Practices (UCPMP).

While on one hand it has been a turbulent year, on the other, it has certainly been encouraging. The change of leadership at the centre brought in a re-newed thrust and emphasis on improving access to healthcare in the country, including tangible steps towards some form of UHC (Universal Healthcare). The impact of this will be felt throughout the healthcare system including pharma sector.

In the recent past the health ministry saw change in the leadership. This has certainly raised expectations such as:

What will be the impact of new leadership of the Health Ministry on the de-sign and implementation of the National Health Assurance Mission (NHAM), which is expected to be rolled out in April 2015 and will NHAM bring the res-idents of India a few steps closer to a form of Universal Health Care (UHC)?

K. Hariram

E

WAITING FOR

CHANGEA majority of Indians lack access to affordable healthcare. Will the new year bode well for them?


Will there be a reset of the other pressing regu-latory reforms the government has been looking to systematically introduce and implement in the areas of pharmaceuticals, medical devices and biotechnology medicines?

The NHAM’s origin was already a part of the election manifesto which clearly states, “The overarching goal of healthcare would be to provide, ‘Health Assurance to all Indians and to reduce the out of pocket spend-ing on health care’, with the help of state govern-ments.” The manifesto specifically includes an initiative to be called the ‘National Health Assurance Mission’ with a clear mandate to provide universal healthcare that is not only accessible and affordable, but also effective, and reduces the out-of-pocket spending for the common man.”

Fulfilling the healthcare mandates in the election manifesto will involve, among others, enacting a system of universal healthcare, regulation of medical devices, reforms in the regulation of pharmaceuticals, and re-creating India’s brand of high quality, low cost generic pharmaceuticals for exports.

India’s healthcare deficiencies are well known and giv-en the trajectory of India’s demography it is expected to exacerbate increase in the coming years. The major concern is the need for a proper medical insurance system enabling a large population to afford basic health care, including in-patient and outpatient care. Currently, most of the population meets their health-care expenses through out-of-pocket payments with only a small percentage having access to total family health insurance. Despite the per-capita expenditure on drugs being low compared to other countries, this certainly has a sizable impact on the family budget.

If the current government finds a way to strengthen the health insurance system, whether through private or public means, India would reap benefits such as a rapid increase of employment in the healthcare sector, and significant investment from both outside and inside sources, thus bolstering the overall economy.

In conclusion, I recall Ralph Waldo Emerson’s quote, “This time, like all times, is a very good one, if we but know what to do with it.” Similarly, for Indian health-care system, and the pharma sector in particular, the developments that took place in 2014 have set a stage for a very eventful 2015. -KH

K. Hariram | Waiting for Change

K. Hariram is the former MD (retd.) at Galderma India.

He is Chief Mentor at MedicinMan and a regular contributor. [email protected]

”

Fulfilling the healthcare mandates in the election manifesto will involve, among others, enacting a system of universal healthcare

CAREER PROGRESSION RESOURCES

NOW AVAILABLE ON

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SuperVision for the SuperWiser Front-line Manager is a tool to help pharma professionals transition from super salesmen to great front-line managers and leaders. The book will equip front-line managers to Manage, Coach, Motivate and Lead their teams to deliver outstanding performance. An engaging read, filled with examples and illustrations, SuperVision for the SuperWiser Front-line Manager has been used by thousands of managers across the industry.

HardKnocks for the GreenHorn is a specially crafted training manual to enable Medical Representatives to gain the Knowledge, Skills and Attitude needed to succeed in the competitive arena of pharma field sales. Medical Representatives joining the field are often not aware about the key success factors of their job and as a result they get discouraged when things don’t go as planned. HardKnocks for the GreenHorn is a powerful learning and motivational tool for field sales managers to build their sales teams.

RS 799 699/-(Limited period offer. Till stocks last)

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11 | MedicinMan November 2014

In many ways the Learning & Development team has a lot of similarities to the Marketing team. Just like the Marketing folks, L&D Managers di-

vide people into segments and target segments that will yield maximum returns and position courses for them. The key difference is that they are doing it for internal customers. This difference makes the task more challenging and critical.

One crucial target segment are First Time Managers (FTMs). Every organization on-boards a lot of smart people as freshers and wants to groom them for larger roles. It is common knowledge that it is a bet-ter option to groom a line of middle level managers than to source them from outside. This is a good opportunity to train these managers for leadership roles. But many organizations start focusing on them only when they transition from a Mid Manager role to a Senior Manager role. The point they seem to miss is that, it is way easier and more economical if they plan an early intervention in the careers of these associates.

E

5 important reasons to groom first-time managers for the job.

First-time managers

Madan Panathula is Sr. Learning Consultant at KNOLSKAPE

Madan Panathula

”


Becoming a manager for the first time is a change which requires the associate to shift gears and change tracks and that too simultaneously! This is often a challenge and people who emerge successful often make it without any structured support mecha-nism. A well-designed & well-planned talent trans-formation intervention is vital here because these associates are transitioning primarily from a technical or functional role to a managerial role. Many organi-zations believe that a project management training or a certification (may be an MBA) will take care of this transition. They cannot be more wrong, because along with project management skills, the associate needs to change his attitude and behaviour to be-come an effective manager. Every organisation needs to identify a basket of behavioural competency that it wants the FTMs to exhibit - based on the strategy, culture and business they are in.

The importance attached to the FTMs is not without reason. Focusing on this group would yield rich divi-dends to the organization because of the following 5 key reasons:

1 It is economical: Traditional wisdom suggests that it is easier to bend a twig than a branch.

Hence transformation of behaviours and talent early on will be easier when compared to an attempt made when the associates become fairly senior.

2 It is effective: The associates who are moving into the roles of managers for the first time are

more likely to have an open mind. They wouldn’t have biases about management, or about the system. They would be more willing to learn as they know that they are new to this role. Hence the learning im-parted at this juncture would have higher retention.

3 It is easier: Creating a comprehensive program spanning across a few weeks for a group senior

manager is next to impossible. But for First Time Man-agers it is much easier, as their schedules will be more flexible when compared to that of senior associates.

4 It ensures that costly mistakes are avoided: When a person transitions into a manager he

becomes accountable for a group of people. To set up a manager for failure (without equipping him) is to set up a whole team for failure. Such mistakes can be very costly and hence an investment before or during the transition would ensure that the organization doesn’t burn its fingers later.

Many organizations believe that a project management training or a certification (may be an MBA) will take care of this transition (to a managerial role). They cannot be more wrong, because along with project management skills, the associate needs to change his attitude and behaviour to become an effective manager.

Madan Panathula | First-Time Managers


5 It helps in retention: These First Time Manag-ers are critical for execution of the company’s

strategy. It will be very costly for the company to hire people for this role laterally. If the organization stands with the person while he is doing this tran-sition and invests in him, he is more likely to realise that the organization is serious about grooming him. This in turn will motivate him to stay and grow the organization.

While designing a program for FTMs, one should also ensure that these programs are engaging, experi-ential and provide a safe learning environment for application of learning. No program without these key features will keep them motivated, as most of the FTMs today are from Gen Y.

Madan Panathula | First-Time Managers

”

Associates who are moving into the roles of managers for the first time are more likely to have an open mind. They wouldn’t have biases about management, or about the system. They would be more willing to learn as they know that they are new to this role.

SuperVision for the SuperWiser Front-line Manager is an ideal resource for first-time managers to learn the business and people management skills to excel at their

work.

Now available on Flipkart

http://www.flipkart.com/supervision-superwiser-front-line-manager-english/p/itmey2yfhhfzjzfp%3Fpid%3D9788170864363


Most Indian pharmaceutical companies use Excel spreadsheets to manage their salesforce incentives. It is common practice for a team of 2-4 people to manage the incentives of the entire salesforce. Studies reveal that whopping 88% of spreadsheets contain errors1.

Return on investment (ROI) of an incentive compensa-tion management (ICM) system continues to be a con-tentious topic which requires detailed scrutiny of various objective and subjective parameters before making a business case. Any sales organization looking to improve their ICM capability needs to justify the investment for implementing a new solution. At first look, an ICM solution seems like a software that would just be ‘good to have’ for an organization. A detailed analysis reveals several opportunities for cost savings and increased revenue.

Several factors needs consideration when justifying investment into an incentive compensation solution. As with any ROI estimation, let’s review the factors and the related tangible gains we can achieve from the pro-posed investment in an efficient ICM solution.

E

THE FUTURE OF INCENTIVE CALCULATION Sophistication and transparency are two reasons among many to move from Excel-based incentive

calculation to a tailor-made, cloud-based solution

Amit Jain


1. AccuracyEstimates suggest that errors in Excel-based incentive compensation systems amounts to approximately 10-12% of total incentive spend. When small teams of 2-4 manage the Excel based ICM system for a sales-force of several thousand, ensuring quality becomes a challenge and most of these errors go unnoticed until an MR raises a dispute. This impacts the accu-racy of incentive payments but also has an adverse impact on the motivation of the field force.

Overpayments generally go unreported by the ben-eficiary salespeople but creates an environment of distrust. Underpayments have an adverse impact on the motivation and sows distrust amongst the sales-force. An ICM system with automated validations and an intuitive workflow can help reduce these errors and recover losses. By and large, these cost savings alone can act as justification to move from spread-sheet based systems to software-as-a-service model. Quality issues acts as a catalyst for MRs to create their own parallel processes to calculate their ongoing commissions affecting their net selling time.

2. Lack of process automationWhen organizations say that their IC systems are automated, it means the core IC calculations are set up in Excel. The entire IC process is a whole lot larger than just the core IC math. The IC process includes sales crediting, eligibility, IC calculations, reporting and data interfaces to other downstream systems. Input data usually changes multiple hands and have several manual processes before it is used for incentive calculations. Currently the most complexity, manual processes and potential for error exists on the sales crediting side. Also, if any errors get introduced in Excel formulae during set up, they go unchanged until raised by any MR or front-line manager. In addition, proactive data validation does not occur since the effort involved in formatting and processing the input data itself is substantial with little time for quality control.

A well-automated IC system will ensure that your sales crediting process is automated and fully inte-grated end-to-end. It will call out data errors and anomalies upfront so that you can correct the issues before IC processing, rather than handle with manual adjustments or discretionary payments later.

Gopal Kishore | Traditional Vs. Experiential Learning

”

Estimates suggest that errors in Excel-based incentive compensation systems amounts to approximately 10-12% of total incentive spend. When small teams of 2-4 manage the Excel based ICM system for a salesforce of several thousand, ensuring quality becomes a challenge and most of these errors go unnoticed until an MR raises a dispute.


3. Plan SophisticationAn additional pitfall of using Excel-based systems to manage large salesforces’ IC is that plan sophis-tication cannot be achieved. Typically, most orga-nizations tend to use one or two broad types of incentive schemes and the parameters of this scheme is tweaked for salesforces promoting products be-longing to different therapeutic areas and products in spite of them having different business objectives. The primary advantage here being that the effort required to maintain templates for all selling teams is minimized since they are fundamentally of the same structure.

A sophisticated automated IC system can help your organization fine tune and align your incentive schemes to strategic objectives of different therapy areas, selling teams, channels or even down to the individual brand. This also helps the organization re-spond differently to different market events and busi-ness scenarios always ensuring that the schemes are designed to cater to market events rather constrain-ing them due to inflexibility of existing IC system.

4. TransparencyOne of the greatest advantages of using a mature IC automation product is the effect that transparent IC calculations and reporting can have on your field force. Currently very few organizations provide their MRs with detailed incentive calculation reports to help them understand exactly what their perfor-mance was and how their pay-out was calculated. This results in MRs spending significant selling time in recalculating their incentives and second-guessing the IC system. This lack of transparency in incentive calculations also affects morale and can leave the MR with the perception of unfairness. Usually regional managers are the first line of defense when it comes to MR questions on incentives and lack of clarity here wastes more front-line management time which could otherwise be used for more effective coaching. This lack of clarity generally impacts the top perform-ers more. Also several studies show that periodic performance to date reporting energizes MRs and let them know where they stand against expectations.

In addition incentive planning and expectation tools like what-if calculator and models can help get MRs more engaged in the IC process and acts as a motiva-tional tool by providing them visibility into potential earning opportunity.


”

Currently very few organizations provide their MRs with detailed incentive calculation reports to help them understand exactly what their performance was and how their pay-out was calculated. This results in MRs spending significant selling time in recalculating their incentives and second-guessing the IC system.

References

1. http://www.marketwatch.com/story/88-of-spread-

sheets-have-errors-2013-04-17


5. Attrition rateDemotivation and reduced engagement of top performers arising from incorrect or delayed incen-tive compensation results in higher attrition rates. In India, attrition rate within pharmaceutical field sales personnel varies from 15-30%. The fear of top performers leaving is almost universal amongst sales leadership. A high attrition rate not only piles on additional administrative costs such as legal, recruit-ment, training, sales personnel interview time but also results in loss of revenue due to vacancy and required ramp up time for new hires. This financial impact of attrition is usually underestimated. For a medium sized salesforce a 2% reduction in attrition rate can mop up crores in cost savings.

ConclusionImplementing an automated ICM solution results in reduced operating expenses and increased net selling time which boosts top line revenue. The ICM solution reduces ambiguity in incentive compen-sation calculations and improves reliability of your plans. More importantly, an ICM solution creates an environment of trust reducing attrition rates and boosts salesperson morale. -AJ


”Amit Jain is Co-founder and Director

of Operations at Aurochs Software, an incentive compensation solution specifically

designed for the pharmaceutical industry

A new book by Renie McClay published by ASTD Press is apt for the global executive with a local vision. “The Art of Modern Sales Management” has 12 chapters, each written by a leader in the field from around the world.

Renie McClay, MA, CPLP, has been a dynamic performance improvement professional for 20 years. She has been successful in sales, management, and learning and performance roles at several Fortune 500 companies (Kraft, Pactiv, and Novartis). Founder of Inspired Learning LLC, she continues to bring her passion and practical approach to all project work. Inspired Learning LLC does design and delivery of energetic programs and projects around the world.

Now available for readers in India on Kindle and print on Amazon. Download a free chapter of the book here.

The Art of Modern Sales Management is a must read for any global sales leader. It's practical, relevant, and grounded in the experience of seasoned sales professionals who make a significant difference in the organizations that they serve. This book includes many useful tips and actionable ideas that any sales leader can use. --Kimo Kippen, Chief Learning Officer, Hilton Worldwide

Renie has done a great job of selecting thought leaders that speak to the challenges of selling in our new, connected world. I absolutely love the framework of the book and found myself skipping from one chapter to another based on what I thought was most relevant to the problems I am most interested in solving today. This book is a must for anyone that understands that front-sales management is tomorrow’s competitive advantage. --Pat Martin, VP of Sales, Estes Express

With a chapter on “Managing Across Cultures” contributed by Anup Soans

Renie is on top of her game again and brings the A Team to the world of Modern Sales Management. With the explosion of social media and the immediacy of shared experience for buyers and sellers, The Art of Modern Sales Management is a practical guide to navigating these changing realities, and the action plans offered provide tools to ensure the best opportunity for success. If you have a leadership role within the sales organization, you need this book as a guide and resource. --Gary Summy, Director of Business Development Global Accounts Operations, Xerox Corporation

http://www.amazon.com/The-Art-Modern-Sales-Management/dp/1562868977

http://www.astd.org/Publications/Books/The-Art-of-Modern-Sales-Management


A pharma industry “selling” their products to prescribers, creates many questions. The key ones are those around delivering

value.

Pharma, assumedly, is the last industry sending myriads of “sales people” to make unsolicited and unannounced calls on doctors, pharmacists and other healthcare providers. Often the reps are asked and simply trained to hammer a promotional message and at the end ask the doctor to prescribe their product.

Doctors by profession are philanthropists and usually educated well enough to endure such calls in silence.

However, there are consequences: the mental doors of physicians are closed already, the physical doors of doctors over time are closing too. Medical Reps with enough experience have moved beyond what they are paid for to have real discussions with their doctors, but only as long as their manager is not around.

E

The future of Pharma Moving beyond the pill

Hanno Wolfram, is the founder and owner of www.Innov8.de, a Germany based

company offering consulting projects for pharmaceutical companies.

Hanno Wolfram

The future of pharma lies in creating “intangible assets” by “treating patients” rather than simply pushing drug sales.

Hanno Wolfram | The Future of Pharma - Moving Beyond the Pill


The problem lies in the antagonism of pharma’s omni-present commercial mentality, old fashioned concepts and the evident inability to change. Pharma is still in the business of selling drugs. Intangible assets are hardly created and sold. There are no real brands, – in spite of drug names being called “brands” – no value added to doctors and no value communicated to patients. Together with regular reports of bribery, this only results in a very poor reputation for the pharma-ceutical industry.

The vast majority of drugs today are generic and many countries have already started to request or only allow INN-prescriptions. Those who believe there is an infor-mational need for a molecule that has been prescribed for the past 10-15 years, is surely delusional.

In the Indian drug market you will find 1,560 different Azithromycins produced by 630 drug companies. As long as drugs with the same INN only vary by price, what could the differentiator be? What would make a doctor prefer this producer over another and what would grant access to Universal Health Care (UHC) and other lists? As long as all is about price, the conse-quence is both straightforward and simple: the number of producers will get fewer and fewer.

Key Account Management 3.0 is keyThe current sales model is simply about pushing drug sales. This is not a sustainable model.

KAM 3.0 is a contrasting business model. KAM 3.0 is about pharma actively contributing to healthcare, isolating and describing the prevailing problems in healthcare and co-creating solutions with payers, carers and patients. Any co-created offering, reaching out beyond the pill, will be beneficial for payers, carers and patients.

Example:In general, therapy adherence of patients is widely found to be below 50%. Under such circumstances drugs only can fail to deliver what they promise. The costly disaster is abundantly clear in Asthma patients with only 7% using their inhaling device properly1. In both cases the effect of drugs are close to simply “Placebo forte”.

Whose onus is it to ensure drug adherence and proper training of device users?

Physicians lack the time, the means and incentives to do so

Payers are too removed from patients to assist

”

The vast majority of drugs today are generic and many countries have already started to request or only allow INN-prescriptions. Those who believe there is an informational need for a molecule that has been prescribed for the past 10-15 years, is surely delusional.

Hanno Wolfram | The Future of Pharma - Moving Beyond the Pill


Pharmacists sadly, are missing the “game”, since pharma still separates Rx and OTC businesses.

Patients are themselves the cause of the problem

The pharmaceutical industry is best poised to remedy this problem. The driving motive though must never be revenue! The driver must be the value added to payers, carers, and patients.

Improving drug compliance and adherence is only one example! There are hundreds of differentiators in the market waiting to be exploited. Any of those novel offerings needs to be created in a joint effort between pharma, together with payers, carers and patients: “Involve me and I will understand!”

In Key Account Management 3.0, the central players are the KAMs. They can detect the problem(s) in their key account that are also opportunities for differentia-tion.

If such a problem is related to a core competency of their pharma or med-tech company, they start a proj-ect to create a joint offering, which will help improve patient outcome and bridge the current deficit.

Inside their company they can ensure cross-functional collaboration, manage the KAM-team of the company, and are those who know all relevant people, being part of the decision making unit inside the respective key account.

There are many more details to consider, but these bits and pieces already indicate that the future will be very different from the past.

The future will generate three species of pharmaceuti-cal enterprises:

1. Those who watch things happen

2. Those who wonder what happened

3. Those who make things happen.

Only the latter will ensure the positive development of trust and improved reputation, adopt a new business model, and be able to implement necessary changes in structures, processes and mind-set.

Key Account Management 3.0 is one of the pathways to a prosperous and differentiated future. -HW

”

In Key Account Management 3.0, the central players are the KAMs. They can detect the problem(s) in their key account that are also opportunities for differentiation.

References

1. Study: Patients don’t know how to use drug delivery

devices, http://www.fiercedrugdelivery.com/story/

study-patients-dont-know-how-use-drug-delivery-

devices/2014-12-17

Pharma Field Force Excellence and BrandStorm 2015

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Transcript of Pharma Field Force Excellence and BrandStorm 2015