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Useful Advices - Sales Management Myths: Entrepreneurial Salesperson
I just had a phone conversation with a client who had a familiar story to tell. He had built his business on the model of an entrepreneurial sales force. Give them a territory, pay them straight commission, and tell them they are in business for themselves, free to develop the customers they chose with the products
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
they wanted.
And for a couple decades it had worked well. The business grew and expanded. More entrepreneurial sales people were added, and the model was duplicated over and over again.
So far so good. But then the growth in sales began to slow down. Three flat or declining years in a row has caused this company
And for a couple decades it had worked well. The business grew and expanded. More entrepreneurial sales people were added, and the model was duplicated over and over again.
So far so good. But then the growth in sales began to slow down. Three flat or declining years in a row has caused this company
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
president to question the status quo. Not only is business flat, but he's unable to get his sales force to promote the lines that he wants to promote, he's unable to get them to use some of the new technology that the company wants them to use, and he's unable to get them to prospect for new customers. Now he's fac
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ed with an experienced sales force, who for the most part, are unmanageable.
The culpit? A sales model that was built on the concept of the entrepreneurial salesperson. There was a time when this model was effective, but in today's competitive economy, there are serious difficulties with the entrepreneurial model.
The culpit? A sales model that was built on the concept of the entrepreneurial salesperson. There was a time when this model was effective, but in today's competitive economy, there are serious difficulties with the entrepreneurial model.
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
This model works best when the market is growing. As long as there is more and more business out there to be had, the focus of most companies is to grab as much as they can, without caring a whole lot as to which customers and which products make up the business. Employing a group of entrepreneurial salespeople re
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
duces the demands on sales management so that the company's executives can focus on building the infrastructure necessary to keep up with the consistent growth.
As we all know, this was the case for most of the previous decade. By shifting the responsibility for sales management unto the salespeople, however, you
As we all know, this was the case for most of the previous decade. By shifting the responsibility for sales management unto the salespeople, however, you
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ive up much of your management influence. In effect, you cede management of the sales force to the salespeople. And they generally make decisions that are in their own self interest, not yours. The very concept of an entrepreneurial salesperson is that he/she will manage himself. By definition, you abdicate your ma
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
nagerial role and cede management to the salesperson.
Is it any wonder that you can't direct the salesperson?
As long as business was consistently growing, this wasn't an issue. But now it is a concern. Most distributors have experienced a reduction in sales volume over the last few years. Many have come to the c
Is it any wonder that you can't direct the salesperson?
As long as business was consistently growing, this wasn't an issue. But now it is a concern. Most distributors have experienced a reduction in sales volume over the last few years. Many have come to the c
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
nclusion that they have to initiate significant changes in their sales organizations if they are going to be profitable and growing.
Now, instead of just more business, progressive distributors want to expand the business in target accounts, emphasize key product lines, and acquire new accounts. In other words, th
Now, instead of just more business, progressive distributors want to expand the business in target accounts, emphasize key product lines, and acquire new accounts. In other words, th
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
ey want to direct the sales force more precisely, to focus them on the behaviors that further the company's strategic objectives.
At just the time that they want to more precisely focus the sales force, they are faced with a group of experienced salespeople who have become satisfied and content.
These sales peopl
At just the time that they want to more precisely focus the sales force, they are faced with a group of experienced salespeople who have become satisfied and content.
These sales peopl
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
would rather not move out of their comfort zones of established customers and established products. They have no desire to do the hard work of prospecting for new accounts. And many are content with the diminished incomes of the past few years.
The culprit in this difficult situation is the entrepreneurial model.
The culprit in this difficult situation is the entrepreneurial model.
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
This is not to say that there are no entrepreneurial salespeople. Certainly a certain percentage of every large group of sales people will turn out to be highly motivated, constantly improving, driven to succeed and willing to accept your direction. From my experience, this is about one of 20 sales people. The cha
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
ces of your entire group fitting this mold are slight. The issue is not the occasional exception to the rule; the issue is the model that no longer supports your strategic interests.
What to do?
The company president on the phone was looking for solutions. How could he change the established routines, attitudes a
What to do?
The company president on the phone was looking for solutions. How could he change the established routines, attitudes a
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
nd practices of his experienced sales force? How could he revive the slumbering entrepreneurial drive? How could he gain some degree of directability?
Unfortunately, the answers are larger and more challenging than that which could be discussed in a half hour phone call. Decades of a certain way of doing business
Unfortunately, the answers are larger and more challenging than that which could be discussed in a half hour phone call. Decades of a certain way of doing business
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ave resulted in attitudes cast in granite. Half-way measures can't be counted on to work.
The solution is going to require strenuous work.
Wipe the slate clean and start over. Begin with the definition of what you would like the salespeople to do. What do you really want your sales force to do? Noodle your ideas
The solution is going to require strenuous work.
Wipe the slate clean and start over. Begin with the definition of what you would like the salespeople to do. What do you really want your sales force to do? Noodle your ideas
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
onto a blank sheet of paper, and review it for a couple of days. When you have a well-articulated full page of detail, you will have taken a major step forward.
Once you have a clear and specific idea of what you want them to do, then start dealing with implications of that. For example, does you compensation plan
Once you have a clear and specific idea of what you want them to do, then start dealing with implications of that. For example, does you compensation plan
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
support the behavior you want? If not, then change that.
Does you training and development program equip the sales people with the skills that support your vision? If not, it's time to revise that.
Does you infrastructure support your idea of what the sales people should be doing? In other words, does customer se
Does you training and development program equip the sales people with the skills that support your vision? If not, it's time to revise that.
Does you infrastructure support your idea of what the sales people should be doing? In other words, does customer se
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
rvice, purchasing, delivery, operations, sales management, etc., all support the revised job description? If not, make some refinements.
Finally, do you have the kind of people who will whole-heartedly embrace your new vision? If not, then it's time to begin the process of recruiting new sales people.
Each of the
Finally, do you have the kind of people who will whole-heartedly embrace your new vision? If not, then it's time to begin the process of recruiting new sales people.
Each of the
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
e is difficult and challenging issues that speak to the heart of how you have your sales force structured. Designing and implementing these changes can take the better part of a year or two. Each of these initiatives will be met with resistance from some. It won't be easy. Before you rush into the fray, however, ma
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ke sure you count the cost. You may decide that you are not up for the task and that it is easier to continue to cede management to your sales people.
Should you decide to revise your sales force, you can anticipate arriving at a focused and directable sales force - an enormously powerful asset for any distributor
Should you decide to revise your sales force, you can anticipate arriving at a focused and directable sales force - an enormously powerful asset for any distributor
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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