Pharma kam report 2011-12 (sample)

Pharma Key Account Management Report 2011-12The successful implementation of KAM to increase stakeholder satisfaction, market share and profi tability.

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AuthorDavid Wright, Imonic Ltd

Piers French, Research Manager

Clare Jackson, Editor

DisclaimerThe information and opinions in this report were prepared by eyeforpharma (FC Business Intelligence) and its partners. FC Business Intelligence has no obligation to tell you when opinions or information in this report change. eyeforpharma makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. In no event shall eyeforpharma (FC Business Intelligence) and its partners be liable for any damages, losses, expenses, loss of data, loss of opportunity or profit caused by the use of the material or contents of this report.

No part of this document may be distributed, resold, copied or adapted without eyeforpharma’s prior written permission.

© FC Business Intelligence Ltd ® 2011

Pharma Key Account Management Report 2011-12

Pharma Key Account Management

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eyeforpharma helps pharma companies adopt business models that place

patients’ needs for affordable and accessible healthcare at the centre.

As an ‘eye’ for, and on, the industry, eyeforpharma exists:

■■ to help pharmaceutical companies stay clearly focused on the core reasons

they exist,

■■ to give them the strategic tools they need to be successful in truly serving

patients with ingenuity and real value, and

■■ to continue to innovate to meet changing healthcare realities.

eyeforpharma has organised conferences and offered strategic advice for the

pharma industry since 2002. From that date, our business has had 30% growth

year on year. Our mission continues to be the advancement of communication and

information exchange within the dynamic and ever-changing healthcare industry.

Biography of the author David Wright, a Director with Imonic Ltd, specialises in Strategic Account

Management. David is leading research into Key Account Management (KAM) in

pharma. He has provided consultancy and training services to many top pharma

companies, including Pfizer, GSK, AstraZeneca, Sanofi and BMS.

David has combined his expertise in pharma with his experience leading account

management projects with blue chip companies for 20 years. His experience in

automotive, software and aerospace, provides pharma with invaluable insight into

KAM best practices and the future direction of account management in pharma.

David has been involved in both industry and academic research, obtaining an

MSc (distinction) from Stirling University and is part way through a PhD from

Warwick University, David’s research for both academic studies focuses on

KAM. He has been active in the Pharma community, speaking at a number of

eyeforpharma events, and will be Chairman at KAM Europe 2011 in November.


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Foreword

Industry Review“This eyeforpharma report is valuable for anyone seeking to introduce or improve their KAM strategies. It is a must-read for pharma executives grappling with Key Account Management.”Francesco Frattini, Healthcare Development & Access Director, Roche, Italy

With over 20 years experience within the Pharmaceutical Industry, holding a number of key roles in Business Development, International Regulatory Affairs and Healthcare Development & Access. His roles have included a wide range of responsibilities from Strategic Planning to Health Economics, Pricing to Business Analysis, Funding to Licensing.

“This report contains useful information on how to identify & deliver value to customers. It provokes debate and achieves consensus amongst seasoned Key Account Executives, as well as offering insightful, practical advice for those recently adopting KAM. This Eyeforpharma report will play an important role in getting the industry going in the right direction when utilising KAM.”Lee Gittings, Regional Accounts Director - Business Effectiveness - Europe &

North America. Pfizer

Over 20 years experience in the Pharmaceutical industry, occupying and excelling in a number of different sales, marketing and business development roles. Lee has played a key role in evolving the Account Management operating models in several countries, such as the UK, leading the Local Health Economy Account Planning Approach (2007 - 2010) and the USA, where he co-authored the US Primary Care strategic initiative “Pharma Selling 2.0” which has since secured resources to implement the recommendations across the US within the next 2 years (2010 & 2011).

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“This is a very extensive and informative report which will be invaluable for any pharmaceutical executives looking to implement and embed a key account management culture. It contains some excellent information about virtually every aspect of KAM and it is great to now have a KAM reference that relates totally to pharmaceuticals.”Allan Mackintosh, PMAP Performance Manager at Grunenthal UK Ltd

Allan Mackintosh is a Performance Manager with Grunenthal UK who specialises is Key Account Management and high performance team development. Allan joined the industry in 1982 and has worked with Ciba-Geigy, Fisons and the GSK group of companies until 2001 when he left the industry to run his training and development consultancy alongside a teambuilding business. An avid writer of articles and ebooks he wrote for a number of pharma publications & websites including Pharmafocus and Pharmaceutical field as well as writing his first book “The Successful Coaching Manager”. In 2009 he was attracted back into the pharmaceutical industry as he is excited by the changes and approaches that the industry are taking particularly with regards to key account management and partnership working with the NHS.

“This eyeforpharma report has come at an important time for those seeking to benefit from Key Account Management. This report is based on an interesting dialogue which challenged my thinking and made me reflect on how I approached KAM. The information contained will help me improve my strategies and make tangible improvements to my business.”Darrell James, Business Analyst, UCB

Darrell has held a number of varied roles over the last 14 years within the industry both in sales and business information and is currently UCB’s Business Analyst. During this time Darrell has been a pivotal player in migrating the commercial operation to its current key account model, where the project has seen a new reporting platform being introduced and a wholesale shift in how Business information supports and measures sales force behaviours.

Foreword


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Acknow

ledgements

AcknowledgementsThank you to all of the interviewees, peer reviewers and companies that

contributed to the creation of this report. Without their support, this report

could not have been made. 24 in-depth interviews were held with top pharma

companies that included Abbott, Pfizer, BMS, Roche and Novartis.

Additionally, a special thank-you must be reserved for the following individuals

who contributed quotations directly, either in a professional or personal capacity:

■■ Ifti Ahmed, Head of Sales Academy, Global Sales Excellence at Merck Serono■■ James Bailey, Regional Business Manager at Astellas Pharma■■ Heléna Bargiel, Global Sales Force Excellence Manager at Leo Pharma■■ Ricardo Castrillo, Business Unit Director at Ipsen Pharma■■ Dominique Côté, European Regional Director Field Force Effectiveness, Emerging Markets Europe, Russia, Turkey and Israel at Pfizer

■■ Darrell James, Business Analyst at UCB■■ Francesco Frattini, Healthcare Development & Access Director, Roche, Italy■■ Lee Gittings, Regional Accounts Director - Business Effectiveness - Europe & North America with Pfizer UK

■■ Dr. Mohamed Khater, Head of Marketing & Sales Operations, region EMEA at Bayer Healthcare

■■ Dr. James Kingsland, President National Association of Primary Care and National Clinical Commissioning Lead

■■ Roman Koschuk, Sales Director with Reckitt Benckiser■■ Bronwyn Lund, International Project Manager, Patient Support: Team Dermatology, Corporate Marketing and Medical Affairs at Leo Pharma

■■ Allan Mackintosh, PMAP Performance Manager at Grunenthal UK Ltd■■ Martin Parkinson, Customer Effectiveness Manager with Pfizer Europe■■ Chris Quinn, Training & Development Manager UK with Shire■■ Mary Stutts, Vice President, Global Corporate Communications at Bristol-Myers Squibb

■■ Scott Symes, Business Unit Manager at Grunenthal UK Ltd■■ Jeroen Valkenburg, Commercial Effectiveness Manager at Genzyme■■ Simon White, Head of Learning & Development at Janssen-Cilag■■ Chantal Willems, Hospital & Key Account Manager at AstraZeneca■■ Amy Williams, Senior Product Manager, Diabetes Marketing at Sanofi-Aventis

Thank you also to everyone who contributed to the research contained within this

report, including the 956 people who answered the eyeforpharma surveys, the

peer reviewers, and everyone who spoke to Piers French to ensure that this report

reflected the needs of the pharma community.


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Contents

ContentsAbout eyeforpharma ....................................................................................................3

Biography of the author ..............................................................................................3

Industry Review ............................................................................................................4

Acknowledgements .....................................................................................................6

List of Figures ................................................................................................................8

Executive Summary .....................................................................................................9

Introduction ................................................................................................................ 15

Methodology ............................................................................................................... 16

Key Account Management Explained ................................................................... 18

1. Organisation .......................................................................................................... 27 1.1 Introduction ....................................................................................................27 1.2 Why organisational change is needed and on what scale .............................30 1.3 Who is responsible for KAM? .........................................................................33 1.4 Cultural and practical challenges in transitioning to KAM .............................38 1.5 Structural impact of transition to KAM ...........................................................45 1.6 Balancing a customer-led organisation with commercial gains

(and the Pendulum Swing) .............................................................................46 1.7 Getting the Plan right - setting objectives ......................................................48 1.8 Understanding and insight .............................................................................49 1.9 Reviewing objectives ......................................................................................51 1.10 Timelines ........................................................................................................53

2. Measurement ....................................................................................................... 54 2.1 Measuring the impact of key account management ......................................54 2.2 What are we measuring? ................................................................................55 2.3 How to measure KAM ....................................................................................57 2.4 Getting the incentives right ............................................................................65 2.5 Technical hurdles to KAM measurement ........................................................67

3. Value Delivery ........................................................................................................ 70 3.1 What is ‘Value’ and what does it mean to pharma? .......................................70 3.2 Value delivery examples .................................................................................73 3.3 Different approaches to value propositions ...................................................78 3.4 Value proposition challenges ..........................................................................85 3.5 Future .............................................................................................................91

Industry learnings ..................................................................................................... 94

List of Abbreviations ................................................................................................. 99

References ................................................................................................................ 100

Thank you .................................................................................................................. 101


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List of Figures

FiguresFigure 1 Investing and divesting sales resource ..........................................................23

Figure 2 KAM relational development model ...............................................................24

Figure 3 Bow tie relational status in pharma ................................................................25

Figure 4 Diamond relational status in pharma ..............................................................25

Figure 5 Customer Centricity Continuum .....................................................................27

Figure 6 KAM outputs in terms of planning, selling and review ...................................34

Figure 7 Team Approach to Account Management at Grünenthal ...............................37

Figure 8 Clarity, vision and consistency of Account Management

strategy and language ....................................................................................39

Figure 9 Clarity and vision across the organisation ......................................................39

Figure 10 Consistency of Account Management Language ..........................................39

Figure 11 Coordination of contact visits and outcomes within pharma .........................40

Figure 12 Customer contacts that see different people from same pharma..................40

Figure 13 Mix of sales models in the transition to KAM .................................................45

Figure 14 The pendulum swing in KAM .........................................................................47

Figure 15 The five SMART criteria for setting objectives ...............................................49

Figure 16 Use of account plans in pharma companies ..................................................50

Figure 17 Account plan sharing between pharma and customers ................................50

Figure 18 Use and transparency of account plans ........................................................50

Figure 19 How pharma reviews account objectives ......................................................51

Figure 20 How pharma captures customer feedback on sales interfaces .....................52

Figure 21 How pharma measures sales call rates ..........................................................57

Figure 22 Implementation of sales progress metrics. ....................................................59

Figure 23 Feasibility of using patient metrics in pharma ................................................61

Figure 24 Organisation success with KAM ....................................................................64

Figure 25 Ability to measure and communicate KAM performance...............................64

Figure 26 Account manager sales planning and forecasting .........................................66

Figure 27 Transparency to access objectives and actions status ..................................68

Figure 28 A screenshot of a key account homepage example ......................................69

Figure 29 The outcome measures hierarchy ..................................................................71

Figure 30 Value Delivery as a strategic priority ..............................................................72

Figure 31 Value proposition alignment ...........................................................................80

Figure 32 Value proposition design validation flow diagram ..........................................81

Figure 33 Respondents with ‘off-the-shelf’ projects available to them. .........................83

Figure 34 Who is equipped to sell Value Delivery Projects? ..........................................84

Figure 35 Value Delivery – Reasons for project failure ...................................................89

Figure 36 King’s Fund Commissioners’ priorities ...........................................................95

Figure 37 A framework to give insight to account managers .........................................97

List of Figures


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Thank you

Thank youThank you for taking the time to read this pharma report on Key Account

Management. I hope you have found it useful, and that it has provided some of the

information on KAM that will help maximise your sales and marketing successes.

This report is intended to provide information on the measurement, organisation

and value delivery with KAM that allow pharma to understand the extent of the

challenges presented by KAM, and the solutions needed to meet them. For

associated articles on this topic - and others - please visit eyeforpharma website.

Both eyeforpharma and I are constantly looking to engage with pharma executives

to provide business critical information. If you would like to provide guidance on

where we should research, are interested in peer reviewing or being profiled in a

pharma report then I would enjoy talking to you further.

In addition, I have created pharma reports that provide a thorough analysis of

pharma’s emerging markets and e-Marketing. For more information, please get in

touch.

This report is only the start of the Key Account Management discussion. If you

are interested in talking further about this report, Key Account Management or

the needs of the pharmaceutical market generally, then please do not hesitate to

contact me.

Piers French

Business Research Manager

Eyeforpharma

E: [email protected]