Future of work: healthcare med reps transformation
In his latest blog post relating to Future of Work, Curzon’s Managing Consultant Rodrigo Quezada Dighero focuses on the transformation of healthcare medical sales reps.
Exploring how the pandemic has disrupted the face-to-face salesforce, and the unique opportunity this presents to adapt the operating model for future success.
The effectiveness of a disrupted salesforce
One year into the pandemic and face-to-face sales look very different from 12 months ago. Medical Reps are facing exceptional challenges in reaching their sales targets, as restrictions on in-person meetings with HCPs continue.
The gravity of the situation is reflected in the 16 new drugs launched during COVID-19 lockdowns, that are at risk of sales failures, according to one pharma consulting group.
However, the lifting of lockdowns is unlikely to return the industry back to ‘normal’. In fact, the evidence shows a stark reality for in-person sales.
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About 60% of surgeons believe that restrictions on in-person sales are likely to remain even after a Covid-19 vaccine is available and lockdown restrictions abate.
Percentage who believe restrictions on face-to-face visits are likely to continue after Covid-19
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Moreover, the changing landscape is not just a result of the pandemic; it’s expedited the necessary changes, but fundamentally, companies have been very slow to adapt their operating models to address the needs and wants of their customers and workforce.
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Of the 75% of physicians who preferred in-person visits from Medtech representatives prior to Covid-19, 47% would now opt for a virtual exchange or less-frequent visits.
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Many physicians once sceptical of any virtual interaction with sales reps now report these exchanges are high quality and offer a much better experience.
Healthcare providers are demanding more from pharma, as they seek greater value from their interactions with Med Reps.
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69% of doctors now want digital patient education
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67% want more education on remote patient care
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65% need specific information on conditions relative to COVID-19
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65% require information to help patients access labs, tests and imaging
It’s clear as medical professionals endure the uncertainty caused by COVID-19, changes are here to stay, and adaptation is crucial to success.
Identifying the opportunity - a new way of working
Digitalisation has accelerated the Next Normal requiring pharma operating models to adapt, or in some cases, completely transform to help them to thrive or even survive.
In this context, the need to provide refined, enriched collateral to healthcare providers and doctors demands an evolution from face-to-face meetings and conferences into a hybrid exchange of virtual and in-person meetings, steered by medical reps.
Percentages of doctors who prefer in-person sales visits
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However, in order for this to be fully realised, pharma companies need to adjust and develop their salesforce capabilities. In another study, research shows that only 26% of pharma reps get coaching personalised to their needs. A focus on sales coaching, through integrated, personalised and value-driven interactions will support med reps to identify target prospects and align the products to the needs of the HPC, through their preferred communication channel.
Moreover, managers and leaders need to align sales & marketing, to ensure a collaborative approach to fully understand the customers and the local market they operate in. Communication and insight must flow both ways to drive communication strategies, content creation and support product development.
Our approach
Our approach to New Ways of Working accelerates the adaptation to the digital business model, focusing on the delivery of required capabilities and the evolution towards a hybrid model.
For this specific transformation, we focus on four of the five key areas
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Organisation
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Collaboration and Hybrid Solutions
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Smartworking Processes
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People & Leadership
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Organisation
- Develop strategies that assist medical reps throughout the sales process, tailored to every customer touchpoint.
- Establish hybrid teams that can develop relevant, channel-specific, timely content to empower the med reps.
- Foster internal engagement and alignment by creating a purpose-based organisation with a relentless focus on value-add customer service.
- Entrench company culture to sustain new ways of working and improve business agility – always listening… constantly evolving.
Collaboration & Hybrid Solutions
The virtual nature of teams and work communities spearheads the need to adopt solutions that enhance and facilitate effective remote interactions.
- Optimise team relationships, roles & interactions to enhance hybrid ways of working.
- Design and implement collaboration solutions applied to the business and team leadership.
- Adopt collaborative tools, enabling sales & marketing teams to share opportunities that improve the quality of exchanges, content creation and value-based interactions regardless of location.
Smartworking Processes
Achieving process transformation through re-engineering & automation to create a generation of agile, flexible, efficient and collaborative working dynamics.
- Redesign smartworking processes, harnessing automation and flexibility to accelerate change and bring the hybrid model alive.
- Employ digital tools to evolve sales, HCP engagement and bring the customer experience to the forefront of every interaction.
- Remove silos to cultivate employee engagement and shared knowledge/opportunities.
People & Leadership
Evolution of culture and people is the foundation of Digital Transformation enabling leaders of pharma companies to steer a change in behaviour and actions.
- Adapt the hybrid model and embed culture based on learning and sharing.
- Develop salesforce capabilities with a focus on digital skills, converging efforts to support sales requirements through content creation and content sharing.
- Embed a coaching culture that fosters learning and sharing.
- Deploy cultural change that embraces and cements the New Normal.
The time to act is now
We work with pharma businesses to deliver New Ways of Working that accelerate the adaptation to the digital business model. Ultimately our work helps businesses to grow, improve customer retention and discover new opportunities.
Ask us how we can help your organisation to transition into the New Ways of Working putting your salesforce ahead of the curve.
CONTACT US TO FIND OUT HOW WE CAN HELP
Future of Work insights
Diane Tibbles
Marketing Manager
+44 (0)1653 628596
Diane is a highly motivated and driven CIM qualified senior marketeer with over 20 years’ experience, she has built her career in a variety of industries in both stand-alone, managerial, and consultative positions.
She is confident, tenacious, and adaptable with a proven track record of delivering first-class marketing management and stakeholder satisfaction. With skills and experience that cover all areas of marketing, she has a solid reputation as a visionary problem-solver and creative tactician to deliver marketing strategies and positively implement direction and change. An excellent communicator and leader recognised for building, leading, and training high performing teams.
“I love to read; I am a hoarder of information, which feeds my thirst for learning, ensuring that if I don’t know the immediate answer, I will make it my mission to find it.”
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Lean value chain analysis and design for global precision engineering products leader in aerospace industry
The issue
- A complex multi-stage casting, machining and coating operation manufacturing precision components for the aerospace industry
- Underperforming organisation and low levels of ownership for improvement
- Extremely low velocity through the process, with poor yields and excessive scrap
- High inventories of work in progress and finished goods
- Production measures encouraging over-production
- Silo mentality in operations exacerbating the WIP situation
- Disaffected workforce with little interest in driving continuous improvement and no effective performance management in place
Solution
- Analyse the current situation to articulate the operational improvement potential (yield uplift and inventory reduction)
- Create the business case for change (P&L and cash impact)
- Design a pilot to create an integrated supply chain for the largest volume product including suppliers and JV partners
- Detail design of a pull model and elimination of WIP stages along the entire supply chain
- Re-design of the layout and organisation to separate ‘dirty’ and ‘clean’ operations to reduce rework
- Launch of a continuous improvement approach within the shop floor to tackle scrap, rework and productivity issues
- Design and introduction of a cascaded performance management framework
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The results
- 40% reduction in inventory identified through WIP elimination
- The feasibility of a 50% reduction in production lead time confirmed
- 10 percentage-point improvement in yield performance from closer process control
- Plan to deliver £5m savings in-year agreed
- Changes to ways of working implemented in pilot cells with Lean work-flow approach trialled
- Programme of Lean training and continuous improvement projects implemented
- New KPIs are being used to drive the performance of the value chain in place of traditional cost absorption metrics
An award-winning team
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Operating model refinement and commercial focus to deliver a step change in business performance
The issue
- A subsidiary of a global defence company, providing technology-based R&D solutions and advisory services to government and defence organisations and private sector companies at the cutting edge of secure communications and cyber warfare
- Despite repeated calls by Group to improve, the business continuously failed to meet performance expectations on revenue growth, profit margin and free cash flow
- The business was suffering from an overly-layered and siloed organisation structure, with burdensome management processes and lacking commercial focus
- The underlying issues were structural and an absence of effective performance management, wrongly being justified because business discipline would stifle creativity and innovation
Solution
- Undertook a business-wide design and business case development stage to anchor the current performance failings and the required changes
- Implemented over a 12-month period working alongside the business unit leadership with a structured plan;
- A new leadership team established, with stronger governance processes, metrics, and proactive staff engagement
- Simplified the operating model and aligned capabilities to market needs
- Re-framed value propositions and initiated the move into critical national infrastructure
- Implemented resource management to drive productivity uplift
- Implemented new mentoring and HR processes to underpin talent management
- Supported post-implementation by refreshing the plan
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The results
- 29% revenue uplift (versus budget target)
- 18% Return on Sales achieved versus a 15% target for the financial year
- 90% improvement in business cash flow
- 10% points increase in Engineer productivity, with a continued increase to 74% utilisation in year 2, and climbing
- Transformed the operating model and business culture to be customer and commercially focused
- Established performance management at the business and individual level
- Underpinned changes with disciplines, governance, reward structures and visibility
- The Project won the Management Consultancy Association’s award for “Performance Improvement in the Private Sector” with full sponsorship of the client
An award-winning team
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