The High Performing Pharmaceutical District Sales Manager: Current Trends & Future Directions

SUMMARY

The District Sales Manager is the acknowledged cornerstone of pharmaceutical sales force effectiveness and high performance. Although the traditional DM role is well understood, the position is being re-evaluated today in light of industry pressures that are causing dramatic sales force change. Many believe that the DM job will become more strategic and less tactical in the near future. Sales leaders are trying to determine what new activities DMs can be expected to take on and what skills and training they will need to succeed during and after the transition occurs.

This research identifies the most important current and future roles of the DM in driving superior productivity and continued growth for their companies. The study also identifies key trends impacting the DM function, examines the extent of change in current sales force models, investigates DM readiness for change and provides best practices companies are using to help DMs retain their effectiveness in the new marketplace.

Best Practices, LLC used both field surveys and interviews to complete this study. In all, 46 sales leaders at 23 different companies across the globe contributed data. In-depth interviews were conducted with field leaders from six of the participating companies.

Snapshot

This research is focused on several major topic areas:

• (1) Impact of Sales Force Transformation Trends on Pharmaceutical District Sales Managers,
• (2) Evolution of the District Sales Manager Role,
• (3) Key Skills & Competencies for District Managers, and
• (4) District Manager Training Needs.

Specific areas of coverage include:

• Key pharma trends impacting the position of DM
• Most valued current and future DM and sales rep activities
• Volume of DM work that is strategic versus tactical
• Vital current and future DM skills
• DM readiness for new roles
• New responsibilities for regional managers
• Benchmarks for extent of sales model change
• Diversity management challenges
• Best practices for helping district managers meet challenges of the changing market

Key Findings

Among the findings that emerged from this research were the following:

• 1. The DM Role Is Expected to Become a More Strategic Position -- Time & Resources Are Shifting from Tactical to Strategic Activities: Sales leaders expect DMs to spend nearly twice as much time dedicated to strategic activities in the next three years. They estimate that traditional tactical DM activities will decline 10-30 percent in terms of their importance, and more strategic activities are expected to rise 30 percent to more than 90 percent in relative importance during the same time period.
• 2. Regional Managers Are a Source of Untapped Productivity -- Regional Managers Are the First Source of Change: This research uncovered wide interest in changing the role of the Regional Manager (RM) as well as the DM and the sales rep. Several sales leaders noted that RM preparation for change is often neglected as organizations focus on DMs  but the RM drives the change among DMs.

Industries Profiled: Pharmaceutical; Health Care; Biotech

Companies Profiled: Abbott Laboratories; Boehringer Ingelheim; Eli Lilly and Company; Endo Pharmaceuticals; GlaxoSmithKline ; Janssen Cilag Pharmaceutical; Merck; MGI Pharma; Novartis; Novo Nordisk; Pfizer; PLIVA Pharmaceuticals; Procter & Gamble Pharma; Roche; Sanofi-Aventis; Solvay Pharmaceuticals; Wyeth Pharmaceuticals

TABLE OF CONTENTS

Executive Summary

• Introduction
• Research Approach
• Participating Companies
• Report Structure and Organization
• Key Findings

Sales Force Transformation: Current Trends & Future Direction

• Sales Force Size Is Trending Downward . . . For Now
• Customer Access Continues to Decline
• Companies Have Begun Overhauling Their Sales Models
• Sales Force Trends Are Likely to Impact DM Role
• Focus on Customer Relationships Is Increasing
• Barriers to Rapid Change Anticipated

Evolution of the District Sales Manager Role

• Current and Future Value of Traditional Activities
• Strategic DM Role Gaining Momentum
• Blended Role Is Forecast for Future DMs
• Empowerment of DMs May Be the Next Frontier
• Regional Managers Are a Source of Untapped Productivity

Key DM Skills & Competencies

• Current and Future Value of DM Skill Sets
• Managing Workforce Diversity Is an Emerging Skill Area

Critical Role of Learning, Training & Development

• Implementation of Training
• Voices from the Field: Training Requirements

Best Practices for Continued District Manager Effectiveness

Participant Demographics

TABLES AND FIGURES

• Figure 1.1 Benchmark Partner Companies & Locations
• Figure 1.2: Structural Forces Impacting Pharma Sales
• Figure 2.1: Sales Force Growth Potential, 2008 & 2010
• Figure 2.2: Drivers of Sales Force Cuts
• Figure 2.3: Sales Force Growth Drivers
• Figure 2.4: Pipeline Health Shapes Growth View
• Figure 2.5: Sales Rep Customer Access Continues to Decline
• Figure 2.6: DM Visits to Physicians Restricted
• Figure 2.7: Will Reducing Rep Numbers Restore Customer Access?
• Figure 2.8: Percentage of Companies Experiencing Sales Model Changes
• Figure 2.9: Percentage of Companies That Have Completed Model Changes
• Figure 2.10: Percentage of Companies Where Sales Model Changes Are Underway
• Figure 2.11: Percentage of Companies Where Sales Model Changes Are Scheduled
• Figure 2.12: Field Technology Use
• Figure 2.13: Sales Trends Most Likely to Impact DM Jobs
• Figure 2.14: Role Changes Most Likely to Impact DM Jobs
• Figure 2.15: Internal Barriers to Sales Model Change
• Figure 3:1: Impact of Sales Model Changes on DMs
• Figure 3.2: Most Important Rep Activities
• Figure 3.3: “Top Five”-Rated Rep Activities
• Figure 3.4: #1-Rated Rep Activities
• Figure 3.4.1: Reps Must Fit Local Markets
• Figure 3.5: DM Role Evolution
• Figure 3.6: Value Ratings of Traditional DM Activities
• Figure 3.7: DM Activities Rated “Top Five”
• Figure 3.8: #1-Ranked DM Activities
• Figure 3.9: Challenges of Remote Coaching
• Figure 3.10: New Coaching Skills Needed Due to Access Limits
• Figure 3.11: Percentage of Companies Expecting More Strategic DM Role
• Figure 3.12: Percentage of DM Time Spent on Strategic Activities
• Figure 3.13: Frequency of Strategic DM Activities
• Figure 3.14: Strategic DM Activities Gaining Importance
• Figure 3.15: Strategic Field Management
• Figure 3.16: Optimal Future DM Role Still Undecided
• Figure 3.16: Optimal Future DM Role Still Undecided
• Figure 3.17: Empowerment Models
• Figure 3.18: RM Role Is Productivity Key
• Figure 4.1: Most Important People/Leadership Skills
• Figure 4.2: Most Important Management Skills
• Figure 4.3 Most Important DM Competencies & Attributes
• Figure 4.4: Analytics Skills to Be Critical
• Figure 4.5: Top 5 DM Skills
• Figure 4.6: #1 Ranked DM Skills
• Figure 4.7: Diversity Management Challenges
• Figure 4.8: Types of Diversity Training Offered
• Figure 5.1: Percentage of Companies Changing DM Roles & DM Training
• Figure 5.2: Level of DM Preparation for Change
• Figure 5.3: DM Training Needs
• Figure 6.1:
• Figure 7.1: List of Participating Companies
• Figure 7.2: Sales Force Size
• Figure 7.4: Ratio of Reps to DMs
• Figure 7.5: Respondents' Company Type
• Figure 7.6: Respondents' Experience in Pharma Sales