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The environment for pharmaceutical sales becomes more challenging every day! The rise of managed care and the complexities in how managed care organizations (MCO’s) function has led to formidable opportunities for the pharmaceutical sales force. One of the dilemmas for pharmaceutical sales organizations is how to set up a performance management system that is fair and works when it seems that so many variables are outside of the control of the sales force. For example, territory pressures play a critical role in the types of challenges the sales force will face. According to Sarah Dandelles in her Pharmaceutical Representative Online article entitled Is Access Possible in Tough Markets?, territories differ in ways such as managed care penetration, policy restrictions, and physician consolidation. Across all territories, the constraints and reimbursement practices influence what physicians prescribe to their patients. These factors aren’t under the direct control of the pharmaceutical sales force. Of course those who are in senior sales positions such as National Account Managers can influence sales even in these tough markets through the national contracts that they negotiate with the managed care organizations. Likewise the field sales reps can influence physicians’ prescriptions by basing their sales strategy on sound knowledge of the managed care environment within which the physician is functioning. Nevertheless, no amount of influence from the sales force can guarantee obtaining the increase in market share that pharmaceuticals might target. How, then, should companies set up their performance management systems and draft clear objectives against which the sales force will be measured? In a recent article in Pharmaceutical Representative Online, entitled Managers: Measure what Really Matters -- Results, Allison Swan suggests that a performance management program should function at two levels:
The important point to keep in mind is that the performance management system that you devise must support your company’s business strategy, must be fair to your sales force, and must be easy to use. This means that your system must set up objectives that target specific business results while, at the same time, take into consideration the intricacies of the specific jobs for which the system is designed. Use a design process that will enable you to address both sides of the performance issues. Additional Options:
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Kathleen Miller talks Performance Management Please join the discussion and add your comments
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