PSMG Meeting: 15 th July 2008 Finding your ideal partner Tell me and I forget. Teach me and I remember. Involve me and I learn' Benjamin Franklin.

PSMG Meeting: 15th July 2008‘Finding your ideal partner’

‘Tell me and I forget.

Teach me and I remember.

Involve me and I learn'Benjamin Franklin

Who we are

2008 onwards – co-founder of SHS 2002 – 2008 - Sales Director Servier UK 1999 – 2002 – Second line sales manager and

1st line manager trainer 1993 – 1999 – Regional Business Manager 1989 – 1993 – Medical representative and field

based trainer 1986 – 1989 – Retail store manager at William

Morrison plc

Other responsibilitiesPMCPA appeal boardABPI NHS task force

– 2008 onwards – co-founder of SHS– 2007 onwards – founder of Change

Factory Ltd.– 2000 onwards – Director & Co. Secretary

of inVentaBrand Ltd – 1989 – 2007 -Chairman and co-founder of

FXL Ltd– 1976 – 1989 -Senior sales and marketing

roles Mars Ltd– 1972 – 1976 -Retail store manager CRS Ltd

Steve HardyGary Bowler

2Copyright Strategic Healthcare Solutions Ltd. 2008

Expectations/reservations (from survey)

• Expectations1. A clearer insight into the decision

making process for key accounts. To transfer that to our own company to ensure we are targeting correctly.

2. New ideas on how to select Target Accounts

3. Insight into alternative approaches to establishing and operating within key accounts

• Reservations1. Either not relevant or nothing

new


Workshop objectives

• By the end of this 90 minute workshop delegates will:– Have reviewed the criteria for selecting key

accounts – Have built realistic, personal back to work action

plans for the development of own customer accounts

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Survey Results

1. Sales potential Sophistication Interest levels Relationships Access 2. Sales data e.g. Xponent, accessibility, attitude towards Market and Strategy

where known, local Rep knowledge, influencers 3. Historically we've used IMS Xponent to establish individual GP value and

then further segment. In hospitals, we've used IMS Hospital Profiler + to establish high value accounts. As we evolve our operation to one of "Account Based Selling", we no longer target individual customers but establish "virtual accounts" linking Primary care & Secondary care

Criteria for selecting individual target customers

Why?

1.We developed ourselves as key factors to choose customers to date 2.Seem relevant and are what is available 3.Not applicable as no longer targeting individuals


Survey Results

1. Same as Q3 2. Individual customer sales (Xponent) and Account sales - Growth, own product,

total market and Market Share. Accounts priorities and initiatives around the therapeutic area. Product Champions, local influencers

3. A mix of IMS Xponent, IMS Hospital profiler & other sales data sources + Health Directions NHS data. This data is then analyzed at a local level and key accounts are determined for activity

Criteria for selecting key accounts

Why?

1. Same as Q4 2. As above 3. Early days but that's all we have available!


What other criteria would you like to use in assessing which should be your Key Accounts?

• What else is available in our field ie PCTs? • More attitudinal data to identify potential prescribers not yet using in the

theraputic area • Networking information to establish who influences who!


Customers needs have changed…UK Pharma needs to change

Yesterday Today TomorrowWas about seeing as many prescribers with as high frequency as possible

Is about managing your contact with all the key stakeholders

Is about working in partnership with your most valuable accounts, networking key influencers and decision makers effectively

Big sales teams who were good at detailing and achieving a call rate

Smaller but still high cost teams who can effectively target and sell

Highly skilled, much smaller sales teams who can build tactical and strategic relationships with customers

Sales teams were responsible for customer contact

A number of key specialist teams have developed to support sales effort

Everyone in the organisation will be customer facing

Marketing messages were exclusively clinically focussed and one size fits all

Today brand management still dominates but health economics is now on the agenda

Can your product improve the local service? A multi dimensional argument is needed.


Key Account Management definition

Account management is about creating strategic relationships with customers that deliver long term profitable sales growth for you and help your customers to achieve their medium term goals

The Key Account Management process should take place at different levels in the organisation.

Company

Portfolio accounts

Business Unit

Disease area accounts

Brand team

Brand accounts

Healthcare Access Mgr

Regional Health Authority/Network/Buying Group

Rep

Hospital/Practice


Key Account Management Process



• Determine and agree the selection criteria

• Assess all customers and map priority ‘KEY ACCOUNTS’

• Internally agree top 20 Key Accounts

• Allocate responsibilities for initial contacts


What is an account ?

An account is an organised group of customers who share similar business goals and interests and whose buying / funding behaviour is co-ordinated in a consistent way

Examples: Primary Care Trust; NHS Trust; Networks; Strategic Health Authority


The Customer attractiveness model, an intuitive model which segments and helps develop account strategy.

Firstly by assessing the HCE Market…..

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RISK – What is the command and control status within the HCE

POTENTIAL – What is potential for growth and profitability within the HCE

Copyright Strategic Healthcare Solutions Ltd. 2008

…then their capability

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WILL – are they motivated to engage?Do they understand their needs?Are they motivated to take positive action?

SKILL – are they previous fund-holders? Is there a local delivery plan in place?Are they competent at making the right decisions


Survey Results1. Sales potential - Individual customer sales (Xponent) and Account sales2. Growth, own product, total market and Market Share. 3. IMS Hospital profiler & other sales data sources4. Sophistication 5. Interest levels 6. Relationships 7. Access 8. Product Champions 9. Local influencers 10.Accounts priorities and initiatives around the therapeutic area. 11.Health Directions NHS data. This data is then analyzed at a local level and

key accounts are determined for activity

Your consolidated criteria for selecting key accounts


Other selection criteria Influence over other

accounts Ability to engage with the

industry Alignment of agenda with

supplier Motivated to engage with

supplier• Market access situation:

– Formulary listing– Restrictions– Command and control

Market size and growth Profit growth potential Current sales Sales growth Advocacy

clinical and payer Ability to win Ability of account to

implement Time to win• Funding environment


Prioritise the selection criteria• Split into teams of 8• Please take the opportunity to

pick 5 selection criteria as the most important criteria for prioritising your key account customers

• Please make your selection from the list on the previous page and record it on the right

• Be prepared to discuss your choices with the group

• Time: • 15 minutes to prepare• 20 minutes to discuss

1. -

2. -

3. -

4. -

5. -


Next steps planning

• Working on your own• Consider and discuss each element of the

workshop and identify the major next steps that you will take in key account identification.

• Use the template over to complete your feedback

• Timing: – 10 minutes to prepare– 15 minutes to discuss


Next steps planning

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Next steps SupportResources

WhenFirst Person Resp. (FPR)


Appendices


• Stakeholder identification and mapping

• Identify key decision-maker / influencer needs

• Understand competitor landscape

• Develop SoWOT analyses• Summarise customer

insights



• Select and appoint key players: Internal / External

• Establish Account responsibilities and ways of working


Key Account Management Process• Historic performance• SoWhat analyses• Develop a joint vision for the

future• Establish common goals• Agree strategies and objectives• Formulate action plans• Agree KPIs and performance

targets• Create financial plan• Build contingencies



• Develop value proposition by category and brand– Clinical / Economic

• Implement the action plans– Sell and negotiate the

objectives– Contemporise understanding

of needs and customer insights



• KPI tracking and reporting• Performance review

meetings• Re-calibrate plan (+ / -)• Celebrate and communicate

success


PSMG Meeting: 15 th July 2008 Finding your ideal partner Tell me and I forget. Teach me and I remember. Involve me and I learn' Benjamin Franklin.

Documents

key accounts reservations

target accounts

customers sales teams

virtual accounts

valuable accounts

accounts priorities

key stakeholders

key factors