Pharmaceutical Key Account Management - Cutting Edge Information - PH218

8/17/2019 Pharmaceutical Key Account Management - Cutting Edge Information - PH218

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PHARMACEUTICAL KEY ACCOUNT MANAGEMENT 2

REPORT TABLE OF CONTENTS

© COPYRIGHT 2016 CUTTING EDGE INFORMATION, LLC. ALL RIGHTS RESERVED.

CLICK HERE FOR FULL TABLE OF CONTENTS

10 EXECUTIVE SUMMARY

11 KEY ACCOUNT MANAGEMENT: FIVERECOMMENDATIONS FOR SUCCESS

ES

CH1 CH4

CH5

22 STRUCTURING AND RESOURCING KEYACCOUNT MANAGEMENT TEAMSTO MEET DIVERSE STAKEHOLDER NEEDS

24 POSITIONING KEY ACCOUNT MANAGEMENT TEAMSWITHIN THE ORGANIZATION

49 RESOURCING KEY ACCOUNT MANAGEMENT TEAMS

124 BUILDING KEY ACCOUNT RELATIONSHIPSAND INTERNAL OPERATIONS

125 MEETING ACCOUNT NEEDS AT PAYER AND

HOSPITAL SYSTEMS

141 INTERNAL OPERATIONS FOR KEY ACCOUNTMANAGEMENT TEAMS

200 KEY ACCOUNT MANAGEMENT TEAMPROFILES

CH3 88 LEVERAGE GENERAL AND TARGETEDKAM GROUPS TO BOLSTER KEYACCOUNT RELATIONSHIPS AND DIVERSIFYKAM PORTFOLIOS

59 HIRING, TRAINING ANDCOMPENSATING KEY ACCOUNTMANAGERS

60 RECRUITING BEST-FIT PERSONNEL TO MAINTAIN KEYSTAKEHOLDER RELATIONSHIPS

69 TRAINING NEW HIRE AND VETERAN KAMS TO BESTMEET CUSTOMER NEEDS

78 COMPENSATING KEY ACCOUNT MANAGERS TORETAIN TOP TALENT

CH2

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KEY QUESTIONS ANSWERING CRITICAL QUESTIONS FOR OURCLIENTS


A: 76 hours fornew hires;veteran KAMsreceive 37.6hours of annualtraining.

Q: How muchtime do US teamsspend trainingkey accountmanagers?

Pharmaceutical Key Account Management explores how KAMscombine sales pro ciency with managed markets knowledge tocreate a single point of contact for diverse customers who havedifferent and challenging needs.

KEY QUESTIONS ANSWERED IN THIS REPORT

• How can you implement KAM teams to shift accountmanagement — and commercial strategy — to a morecustomer-centric and holistic footing?

• Who are the best candidates for KAM positions?

• How do different KAM roles impact where KAM teams should sitin the organization? Do they belong in sales or market access?

• How can you retain talent by matching KAM experience levelsto salaries and performance bonuses?

• Do you balance hospital systems accounts and regional/localgovernment payers in key account portfolios?

• How do market share and potential sales help determine keyaccount status?

• Do your account managers target the right positions amongexecutive leaders, pharmacies and medical groups at hospitals

and payer organizations?• Do account interactions align with stated (and well-de ned)

goals for account management functions?

• What resources do KAM teams need to succeed?

• How do you approach KAM groups in terms of organizationalstructure, resource allocation and workloads?


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KEY FINDINGS


CRITICAL FINDINGS ON KEY ACCOUNTMANAGEMENT ACTIVITIES

The following principles emphasize the most central and criticalconcepts for Cutting Edge Information’s pharmaceutical key accountmanagement report.

1. Recruit key account managers from top-performing sales reps.

2. Resource teams to provide competitivecompensation for key account managers.

3. Consider market share and potential sales todefne key accounts.

4. Design key account management rolesto include signifcant planning andcoordination.

5. Look to involve key account managementgroups in shaping account engagementstrategies.

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KEY METRICS


CHAPTER 1: STRUCTURING AND RESOURCING KEYACCOUNT MANAGEMENT TEAMS TO MEET DIVERSESTAKEHOLDER NEEDS

MAJOR TAKEAWAYS• Implement KAM teams to shift commercial strategies to a more customer-centric, holistic

account management practice.

• Determine KAM roles before positioning teams under sales or market access groups.

CHAPTER DATA

33 charts detailing key account management team structure, staf ng, budgets and spending.Throughout this chapter, data are broken down by KAM groups’ scope of responsibility, whichincludes general KAM teams (teams that make no distinction between market access andcommercial key accounts) and targeted KAM teams (teams that offer focused support to eithercommercial or market access key accounts). Data are also broken down by teams’ geographicfocus (US, EU and rest-of-world).

KAM Team Reporting Relationships and Staf ng

• Age of key account management team

• Executive with direct oversight for KAM team

• Executive with ultimate oversight for KAM team

• Key account management team staf ng

• Changes to KAM team staf ng in the last 12 months and the next 12 months

• Structural changes due to uctuating key account management headcount

• Ratio of KAMs to eld managers

KAM Team Budgets and Spending

• Total annual KAM team resources

• Average annual cost per KAM

• Percentage of total KAM resources allocated to speci c activities

DID YOU KNOW?58% OF TOTAL KAM

RESOURCES ARE ALLOCATED TO

COMPENSATION AMONG

SURVEYED EU TEAMS.


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KEY METRICS


CHAPTER 2: HIRING, TRAINING AND COMPENSATING KEYACCOUNT MANAGERS

MAJOR TAKEAWAYS

• Recruit top-performing, experienced pharma sales reps to ll KAM teams.

• Retain top talent via competitive salaries and annual performance bonuses, whichincrease to match KAM experience levels.

CHAPTER DATA

26 charts detailing key account manager hiring, training and compensation practices. Throughout thischapter, data are broken down by KAM group scope of responsibility, which includes general KAMteams (teams that make no distinction between market access and commercial key accounts) andtargeted KAM teams (teams that offer focused support to either commercial or market access keyaccounts). Data are also broken down by teams’ geographic focus (US, EU and rest-of-world).

• Best professional background for key account managers, according to surveyrespondents

• Percentage of KAM force with speci c professional backgrounds

• Hours of training for new and veteran key account managers

• Annual compensation for general and targeted KAM teams, at different levels ofexperience:

o No experience

o 2 to 4 years of experience o 4 to 6 years of experience

o 6 to 8 years of experience

o 8 to 10 years of experience

o 10 or more years of experience

TWEET THIS STAT!

Most KAM teams dedicate ~20percent of their time to meetingstrategy/coordination, accordingto @CuttingEdgeInfo

http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/http://twitter.com/?status=Most%20KAM%20teams%20dedicate%20%7E20%20percent%20of%20their%20time%20to%20meeting%20strategy/coordination,%20according%20to%20@Cuttingedgeinfo%20http://www.cuttingedgeinfo.com/research/sales/key-account-managers/


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KEY METRICS


CHAPTER 3: LEVERAGE GENERAL AND TARGETED KAMGROUPS TO BOLSTER KEY ACCOUNT RELATIONSHIPS ANDDIVERSIFY PORTFOLIOS

MAJOR TAKEAWAYS

• Emphasize hospital systems accounts and regional / local-level government payers amongdiverse key account portfolios.

• Determine key account status via market share and potential sales.

CHAPTER DATA

26 charts detailing key account manager product support and key account status designation.Throughout this chapter, data are broken down by KAM group scope of responsibility, whichincludes general KAM teams (teams that make no distinction between market access andcommercial key accounts) and targeted KAM teams (teams that offer focused support to eithercommercial or market access key accounts). Data are also broken down by teams’ geographicfocus (US, EU and rest-of-world — for the latter, some charts show data for Middle East/Africa teamsas well as Latin America groups).

KAMs and Product Support

• Number of products supported by KAM team (marketed brands vs products still indevelopment)

• Number of key accounts supported

• Average number of key accounts per KAM

• Types of accounts supported by KAM teams

• Key account portfolio composition (e.g., percentage of key accounts that are pharmacies,local/regional-level government or private payers)

Determining Key Accounts

• Importance of speci c factors in determining key account designation

• Frequency of key account review and revisions

• Level of executive with nal say of key account status

DID YOU KNOW?MARKET SHARE/SALES POTENTIAL

RANKED AS THEMOST IMPORTANT

FACTOR IN DETERMINING KEY

ACCOUNT DESIGNATION.


8/12© COPYRIGHT 2016 CUTTING EDGE INFORMATION, LLC. ALL RIGHTS RESERVED


KEY METRICS CHAPTER 4: BUILDING KEY ACCOUNTRELATIONSHIPS AND INTERNAL OPERATIONSMAJOR TAKEAWAYS

• Target high-level positions in C-suite, pharmacy and medical groups at hospital and payeraccounts.

• Ensure that account interactions align with stated/de ned goals of the KAM function.

CHAPTER DATA

93 charts detailing key account relationship management, KAM activity levels and performancemeasurement. Throughout this chapter, data are broken down by KAM group scope of responsibility,which include general KAM teams (teams that make no distinction between market access andcommercial key accounts) and targeted KAM teams (teams that offer focused support to eithercommercial or market access key accounts). Data are also broken down by teams’ geographic focus(US, EU and rest-of-world — for the latter, some charts show data for Middle East/Africa teams as well asLatin America groups).

Prioritizing Key Account Visits

• Average number of visits per quarter to speci c key accounts, by type (e.g., an individualpharmacy group, hospital system, regional/local-level government or private payer)

• Tiering of speci c KAM hospital system targets (e.g., C-suite executives, billing, technology)

• Frequency of visits to top targets

• Tiering of speci c KAM government and private payer organization targets

• Frequency of visits to top targets, payer organizations

Measuring KAM Performance and Communicating Team Value

• Teams with customer relationship management system access

• Key CRM system uses

• KAM performance evaluation metrics collected

• Methods of key account satisfaction feedback

• Percentage of key account feedback surveys returned


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10/12© COPYRIGHT 2016 CUTTING EDGE INFORMATION, LLC. ALL RIGHTS RESERVED


SAMPLE CONTENT This excerpt is taken from the Executive Summary.

LOOK TO INVOLVE KEY ACCOUNT MANAGEMENT GROUPS INSHAPING ACCOUNT ENGAGEMENT STRATEGIES

A large part of the KAM role is interfacing directly with accounts toaddress their needs and then disseminating important information withinthe organization. However, successful KAM groups also work with other

eld forces — ranging from sales reps to health outcomes liaisons (HOLs) — to provide an overall strategy to the account. In fact, many surveyedcompanies see the ideal KAM involvement in the strategic role.

The gure on the right shows the contrast between groups’ currentinvolvement in shaping account strategy for eld forces and howinvolved they would prefer to be. For the biggest eld forces at mostcompanies — sales reps and MSLs — many surveyed key accountmanagers are already heavily involved in shaping strategy. Surveyedcompanies also show a desire to increase involvement, with 50% ofsurveyed targeted groups currently shaping account strategy for salesand 67% indicating that their ideal role would involve account strategy.Similarly, 50% of surveyed KAMs indicate that their ideal role wouldinvolve shaping account strategies for MSLs.

Demonstrating the increasing importance of KAM involvement in

traditionally market access eld forces, 50% of surveyed KAM groupswould ideally be involved in shaping HOL account strategy, and 33%would prefer to provide similar support to MCL groups. Sixty-sevenpercent of KAM groups would ideally be involved in shaping overallaccount strategies.

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Pharmaceutical Key Account Management - Cutting Edge Information - PH218