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First-line Sales Managers are the critical link in the performance lifecycle of a pharma
sales representative. By applying the four sales management disciplines that re-focus
their team onto high-yielding sales activity, first-line Sales Managers can more
effectively and efficiently bridge the performance gap and build high-performing teams.
Bridging the Gap: The Critical Role of the First-Line Sales Manager in Re-Focusing the Frontline Sales Effort
CONTENTS
PAGE 2:
PAGE 3:
Discipline
PAGE 4:
PAGE 8:
Bridging the Gap: First-Line Sales Managers: Worth their Weight in Gold
AVERAGE TEAM
ON-TARGET-PERFORMANCE
AVERAGE TEAM
PORTFOLIO GROWTH
5.1%
104%
88%
Benchmark
Managers
Core
Managers
FIGURE 1
Benchmark Managers build teams that achieve 16%
greater On-Target-Performance than teams managed
by Core Managers*
1.3%
Benchmark
Managers
Core
Managers
FIGURE 2
Benchmark Managers build teams that grow their
portfolios 3.8% faster than teams managed by Core
Managers*
* Based on 18 months of Quarterly territory sales data (and controlling for new hires, territory size and changes)
Unfortunately, first-line Sales Managers often bear the brunt of organisational squeeze.
Buried by admin, over-burdened by their many masters and bogged down wearing too many
hats, Sales Managers increasingly find themselves consumed by everything but sales. In fact,
selling and enabling their teams to sell more, better, and more effectively is often the last
thing on their burgeoning to-do lists and a task many find hard to even get to.
Yet focusing sales teams onto high yielding activity is without question the most important part
of a first-line Sales Managers role. When they do this with focus, diligence and discipline; they
directly drive results.
So, how do we better enable our Sales Managers to focus on managing sales in order to drive
predictable, repeatable and sustainable high performance?
Discipline
Blackdots benchmark research has isolated four key
management disciplines that differentiate high-performing
first-line Sales Managers from the core. These are not simply
management practices or leadership prerogatives. They are
tangible, sales-specific disciplines that, when applied
effectively, make a material difference to the results achieved
by the sales engine as a whole.
High-performing Sales Managers apply discipline to the ways in
which they:
dis ci pline*
noun
1. to train oneself to do
something in a controlled
and habitual way.
2. the practice of training
people to obey rules or a
code of behaviour.
* Oxford University Press; 2014
82%
48%
Benchmark
Managers
2nd Quartile
Managers
13%
33%
3rd Quartile
Managers
4th Quartile
Managers
FIGURE 3
Benchmark Managers are more likely to view performance management
as a dynamic, active and ongoing (vs. static, moment-in-time) activity
This is not the only difference between Benchmark Mangers and their broader peer population
when it comes to managing performance. Notably, Benchmark Managers are far more likely
to recognise the importance of coaching compared to core or low-performing Sales Managers
(see Figure 4). Interestingly, when Sales Managers (across-the-board) do provide coaching,
this coaching is by-and-large rated as effective by their team members (see Figure 5).
COACHING EFFECTIVENESS
COACHING PROVISION
6.5 hrs*
6.4 hrs*
90%
54%
Benchmark
Managers
2nd Quartile
Managers
67%
4.1 hrs*
33%
2.1 hrs*
12%
3rd Quartile
Managers
4th Quartile
Managers
FIGURE 4
Benchmark Sales Managers are almost three
times more likely to provide coaching than core
Managers
24%
Benchmark Managers
Core Managers
FIGURE 5
Benchmark Sales Managers also provide more
effective coaching in addition to the heightened
provision with which they dispense it
So the real challenge is how we get Sales Managers to coach more, and then more dynamically
adjust the way they manage different individuals using a consistent set of principles that still
reflects the unique needs and requirements of each sales professional.
Typical approaches take Year-To-Date On-Target-Performance as the starting point for
assessing and driving performance. In pharma however, this is a particularly poor indicator of
performance because of the lack of doctor prescribing data and associated difficulties in
predicting product demand.
Yet if we add to this another measure of performance - that of Performance Trajectory - we are
able to develop a more complete view of the reps overall performance. Useful metrics for
measuring performance trajectory include backward-looking Compound Annual Growth Rate,
forward-looking opportunity forecast, or a combination of the two.
This multi-dimensional approach offers a deeper level of insight into performance and a more
robust platform from which to determine the best way to managing the individuals
performance in the immediate term. By introducing the second dimension of performance
trajectory, Sales Managers can segment individual reps into one of four Performance Profiles
(see Figure 6):
Performance Trajectory
Improving
EMERGING
EXCELLING
Below Target
Performance Improving
Above Target
Performance Improving
DEVELOPING
PLATEAUING
Below Target
Performance Declining
Above Target
Performance Declining
Declining
Below
Above
FIGURE 6
The four Performance Profiles allow Sales Managers to segment their teams according to each reps current
performance and performance trajectory.
4.5%
EMERGING
EXCELLING
DEVELOPING
PLATEAUING
% Volume Growth
(Median = 1%)
-2.5%
100%
On-Target-Performance
90%
110%
FIGURE 7
Scatterplot of Territory On-Target-Performance and
Compound Annual Growth Rate for the representatives
of a major pharma company benchmarked in 2013*
* Based on 18 months of Quarterly territory sales data
(controlling for prouct maturity and underlying market demand)
The ultimate goal of the Sales Manager is to accelerate progression of each rep up the
performance curve into the Excelling quadrant as quickly as possible. To efficiently enable
sales people to excel and outperform, Sales Managers need to master the ability to adapt how
they manage their reps across the the performance management cycle:
SET
OBJECTIVES
PROVIDE SUPPORT,
GUIDANCE AND
COACHING
EVALUATE
PERFORMANCE
Define individual
performance and
development goals and
objectives (such as
specific activity)
Provide feedback,
coaching, mentoring and
support in pursuit of the
defined performance and
development goals
Depending on the individual reps Performance Profile, Sales Managers can adopt a
tight or loose approach at each stage of the performance management cycle:
Correct Performance
Management Approach
EMERGING
EXCELLING
LOOSE
Always
Hands-off, Low-touch
Support, Guidance & Coaching
TIGHT
TIGHT
EMERGING
EXCELLING
Hands-on, High-touch
Support, Guidance & Coaching
PLATEAUING
DEVELOPING
PLATEAUING
EMERGING
TIGHT
EXCELLING
LOOSE
Medium-Length
Performance
Evaluation
Cycle
Long-Length
Performance
Evaluation
Cycle
DEVELOPING
PLATEAUING
Armed with this knowledge, Sales Managers can adapt their management style to best suit
each individual rep. The Tight-Loose framework focuses Sales Managers onto what matters
most: managing sales. And we know that Benchmark Managers apply these principles more
than anyone else in their Sales Manager peer group (see Figure 8).
TIGHT-LOOSE APPLICATION
50%
Benchmark
Managers
40%
2nd Quartile
Managers
33%
3rd Quartile
Managers
17%
4th Quartile
Managers
FIGURE 8
Benchmark Managers apply theTight-Loose management
principles and adjust their approach to the performance
management cycle to best suit each individual rep
In general however, the frequency with which Sales Managers fail to adapt their approach (or
adapt it correctly) when managing their teams signals tangible missed opportunities to lift
performance across the board. The potential performance uplift from implementing
Tight-Loose principles is significant and an opportunity worth leveraging.
Bridging the Gap: Drive Adherence and Buy-in to Segmentation and Targeting Processes and the Sales Model
Follow the
defined
processes and
see them as
enabling
Follow the
processes, but
dont see them
as enabling
Defy the
processes and
do their own
thing
Dont know
processes exist,
and work it out
for themselves
Base Case
- 5.1%
+ 1.1%
- 6.9%
- 9.2%
Grow their
portfolios faster ...
4.7%
-0.5%
4.0%
-12.0%
60%
33%
44%
46%
37%
27%
38%
33%
35%
49%
28%
52%
45%
40%
51%
FIGURE 10
True Believers deliver repeatable, predictable and sustainable performance results for the organisations they work for
Bridging the Gap: Drive Adherence and Buy-in to Segmentation and Targeting Processes and the Sales Model
A common misconception is that sales reps dont like process. In reality, if the process is seen
as an enabler of performance and is simple to follow, then the value of adherence is
appreciated and True Belief develops as a result.
Adherence to process is what fundamentally drives the behavioural predictability associated
with True Believers and underscores the sustainability of their performance outcomes. True
Believers are far more likely to:
Focus on making (rather than taking) orders
Have an external focus on proactively pursuing growth opportunities
Hit the potential rather than just the plan
With the belief that they are working with, and being supported by the organisation, True
Believers align their personal goals to those of the organisation and sell with the wind at their
backs. This engagement means True Believers want to stick around which also results in
lower flight risk. As their performance improves year-on-year, True Believers become an
increasingly valuable asset to their respective companies.
If True Belief is a fundamental ingredient that drives performance, then driving True Belief is a
critical ingredient of the Sales Managers role. But how are they to do this effectively?
Building an army of frontline True Believers necessitates being a True Believer oneself, and
this is what our research has confirmed. Benchmark Managers consistently demonstrate
greater clarity around their organisations processes, appreciate the utility of these processes
and understand their enabling qualities. In other words, they are True Believers.
Furthermore, Benchmark Managers proactively drive True Belief among their teams and
become critical conduits in the creation of more True Believers within their organisations
(see Figure 11).
BENCHMARK MANAGERS PRODUCE MORE TRUE BELIEVERS
77%
Benchmark Managers
55%
FIGURE 11
Benchmark Sales Managers are 22%
more likely to manage True Believer
sales teams than core Sales Managers
Core Managers
Bridging the Gap: Drive Adherence and Buy-in to Segmentation and Targeting Processes and the Sales Model
When rated by the frontline around process understanding, advocacy and coaching;
Benchmark Managers score higher across all key True Believer dimensions:
PROCESS UNDERSTANDING
Benchmark Managers possess a superior personal
understanding of their organisations segmentation
and targeting process, call coverage and frequency
planning process, and sales model. 93% of
Benchmark Managers understand and apply these
processes meaningfully, and 94% can explain them
clearly and deeply.
FIGURE 12
Benchmark Managers have a superior personal
understanding of their organisations processes
89%
67%
36%
44%
PROCESS ADVOCACY
Benchmark Managers promote and positively position
their organisations processes with their sales teams.
98% of Benchmark Managers adhere to their
organisations processes, and 87% stress the
importance of following the process with their team.
88% create opportunities via meaningful application of
these processes, and 90% are consistent and
disciplined in their use of systems and tools,
organisational language and methodologies.
89%
63%
48%
39%
FIGURE 13
Benchmark Managers are far stronger Benchmark 2nd Quartile 3rd Quartile 4th Quartile
Managers
advocates of their organisations processes Managers Managers Managers
PROCESS COACHING
Benchmark Managers adhere to their organisations
Learning and Development processes far more than
core Managers. 88% of Benchmark Managers provide
effective coaching and training on these processes.
80%
44%
28%
35%
FIGURE 14
Benchmark Managers integrate their Benchmark 2nd Quartile 3rd Quartile 4th Quartile
Managers
organisations processes into coaching and training Managers Managers Managers
When it comes to driving adherence and buy-in to the organisations segmentation and
targeting processes and sales model; the Sales Manager has enormous influence, casting a
long shadow on adoption across their teams.
10
Bridging the Gap: Run a Consistent, Efficient and Effective Management Rhythm
45%
Benchmark
Managers
40%
44%
38%
2nd Quartile
Managers
3rd Quartile
Managers
4th Quartile
Managers
56%
Benchmark Managers are also far more consistent
when it comes to performance
management forums. They consistently run formal and organisation-wide performance
evaluation and development planning for sales reps and sales leaders, as well as consistently
engage in target setting forums more so than core Managers (see Figure 17).
RHYTHM EFFECTIVENESS AND EFFICIENCY
Benchmark Managers are also more effective
and efficient in the meetings and forums they
do run (see Figure 16).
Benchmark Managers run meetings and
forums that are perceived by the frontline to be
twice as effective than those run by core
Managers.
Benchmark Manager effectiveness is strongest
in running forums focused on strategy and
development, with nearly two-thirds of all
Benchmark Managers developing growth
strategies and providing 1:1 coaching and
development (see Figure 17).
55%
34%
35%
15%
Benchmark
Managers
2nd Quartile
Managers
3rd Quartile
Managers
4th Quartile
Managers
FIGURE 16
56%
Manager rhythm effectiveness and efficiency
11
Bridging the Gap: Run a Consistent, Efficient and Effective Management Rhythm
So how do Benchmark Managers establish and run more consistent, effective and efficient
forums? What information do they share and discuss?
MEETING / FORUM FOCUS
STRATEGY
Develop sales strategies to profitably grow key segments,
geographies, verticals, products / services, or alliances
CONSISTENCY
EFFICIENCY AND
EFFECTIVENESS
Benchmark
Core
Managers Managers
Benchmark
Core
Managers Managers
41%
37%
61%
25%
24%
27%
55%
27%
63%
62%
57%
30%
33%
34%
45%
32%
76%
58%
51%
23%
27%
28%
63%
27%
45%
33%
43%
28%
49%
43%
63%
31%
RESULTS COMMUNICATION
Timely performance reporting and results communication to sales
people and sales leaders
DEVELOPMENT
Provide regular 1:1 coaching and development
MANAGE PERFORMANCE
target-setting
of
financial
FIGURE 17
Benchmark Managers are disciplined across a suite of diversified forums and meetings with far superior
consistency, efficiency and effectiveness
12
Bridging the Gap: Set Clear Quality Standards and Build Effective Teams
96%
Benchmark
Managers
94%
69%
2nd Quartile
Managers
FIGURE 18
Benchmark Managers
expectations
ROLE MODELLING
52%
3rd Quartile
Managers
are
better
78%
35%
4th Quartile
Managers
at
setting
Benchmark
Managers
2nd Quartile
Managers
55%
3rd Quartile
Managers
40%
4th Quartile
Managers
FIGURE 19
Benchmark Managers are better role models for
their salespeople and provide good examples of
organisational values
93%
Benchmark
Managers
76%
2nd Quartile
Managers
87%
57%
3rd Quartile
Managers
36%
4th Quartile
Managers
Benchmark
Managers
60%
2nd Quartile
Managers
46%
3rd Quartile
Managers
30%
4th Quartile
Managers
FIGURE 20
Benchmark Managers are better at facilitating
teamwork, collaboration and learning from one
another
FIGURE 21
Benchmark Managers are superior at enabling
people and performance
13
Bridging the Gap: Set Clear Quality Standards and Build Effective Teams
The value of these disciplines cannot be under-estimated, especially when we bear in mind
people join the company, but leave the manager. With these things in place, Benchmark
Managers achieve higher frontline satisfaction and engagement overall (see Figure 22). The net
consequence is that flight risk is substantially minimised (see Figure 23) and ROI from your
team and investments maximised.
FRONTLINE SATISFACTION
17%
18%
83%
59%
20%
11%
Benchmark
Managers
Core
Managers
FIGURE 22
Overall satisfaction is higher in sales teams managed
by Benchmark Managers
Benchmark
Managers
Core
Managers
FIGURE 23
Reps managed by Benchmark Managers pose a far
smaller flight risk than those managed by Core
Managers
14
Conclusion
As the critical link in the performance lifecycle of a pharma sales representative, first-line
Sales Managers need to possess an understanding of the management disciplines proven to
move the performance needle. The critical role of the first-line Sales Manager is to do exactly
that: manage sales. Getting disciplined around the four proven drivers of performance in a
controlled and habitual way is your fast-track to sales performance uplift:
1. Manage Performance Using the Principles of Tight-Loose
Apply a consistent approach to managing performance and tailor that approach according
to the Performance Profile of the individual. It may be tight. It may be loose. Or a
combination of both. But always start with setting tight objectives in the performance
management cycle.
Consider the current performance (using metrics such as On-Target-Performance) as
well as the performance trajectory (using metrics such as Compound Annual Growth
Rate, Opportunity Forecast, or a combination of the two) of each sales rep
Segment sales people into their respective Performance Profile based on the
current performance vs. performance trajectory mix - Are they Developing, Emerging,
Plateauing or Excelling?
Manage each of the four Performance Profiles using the correct Tight-Loose mix
across the three stages of the performance management cycle (setting objectives,
providing support and guidance, and evaluating performance)
2. Drive Adherence and Buy-In to Segmentation and Targeting Processes and the
Sales Model
Consistently demonstrate, role model, and advocate application of the organisations
processes. Sing the same mantra, whatever that is, and sing it over and over again until
everyone joins in.
Establish absolute clarity on your organisations defined segmentation and targeting
process, call coverage and frequency planning process and sales model
Integrate explainations and advocacy of these processes into your consistent sales
meetings and forums
Make explanation of your organisations processes a Business-As-Usual component
of all (formal and informal) coaching and training interactions and activities
3. Run a Consistent, Efficient and Effective Management Rhythm
Define a clear set of sales forums and execute them consistently. This is the drum beat to
which the team marches. Without it they are soldiers wandering lost in the dark.
Take stock of all of the meetings and forums being run across your organisation;
documenting the core purpose, participants required, frequency, running agenda, roles
and responsibilities
Build out a quarterly schedule of forums that eliminates duplication and ensure coverage
of the focus areas of strategy, results communication, sales process and opportunity
identification, development and performance management
Crystalise the new meeting and forum objectives, running agenda and roles and
responsibilities. Communicate this to meeting and forum participants, and adhere to the
execution schedule
15
16
17
18
What Critical Learnings are Included in the 4 Disciplines of Sales Management Program?
MODULE
1. COACHING AND
PERFORMANCE
MANAGEMENT
How do I get the most
out of each individual
salesperson?
2. PROCESS
ADHERENCE AND
PIPELINE INTEGRITY
How do I lift our
opportunity volume, size
and conversion rate?
3. SALES
MANAGEMENT
RHYTHM
How do I leverage key forums
and meetings to focus the
team on whats the highest
and best use of their time
4. FRONTLINE
ENGAGEMENT
How do I mobilise my team
around common goals,
quality standards and
non-negotiables?
19
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