1

DISTRICT MANAGERS

ESSENTIALS 2
 2

INTRODUCTION

THE PACE OF CHANGE IS ACCELERATING RAPIDLY AND MAJOR UNPRECEDENTED

TRENDS ARE IMPACTING ORGANIZATIONS TODAY FASTER THAN EVER BEFORE

● Mergers, acquisitions, strategic alliances

● Corporate restructuring, rightsizing, outsourcing, closure

● Maximum Drug Retail Price (MDRP), Cheaper Medicines Bill, parallel imports

● Proliferation of generic companies

● Automation of the field force

IN SUCH TURBULENT TIMES, COMPETITION HEATS UP AND EXCELLENCE IN

EXECUTION OF CORPORATE STRATEGY BECOMES A KEY DIFFERENTIATOR
BETWEEN ORGANIZATIONS.

The GOAL of a BUSINESS is GROWTH and PROFIT

STRATEGY - Company strategy is management’s game plan for growing the business
profitability.

This involves:

● Achieving MARKET SHARE / RANKING

● Attracting and RETAINING CUSTOMERS

● Outperforming COMPETITORS

● Conducting OPERATIONS efficiently

● Achieving TARGETED OBJECTIVES

 3

● Attracting and RETAINING THE RIGHT PEOPLE

WHEN COMPANY STRATEGY FAILS TO ACHIEVE EXPECTED RESULTS

- It is because the STRATEGY WAS ILL-CONCEIVED or THE EXECUTION WAS FLAWED

*District Managers / Regional Sales Managers / Sales Managers are judged by their ability to
drive performance and execute company strategy effectively and efficiently so that desired
results are achieved consistently.

There’s a need for…

● A new level of coordination

● Improved integration between external and internal realities

● More frequent adjustments, and…

● More systematic determination of how to align the objectives to the strategy.

STRATEGY AND EXECUTION

This trains the District Manager how to manage his District STRATEGICALLY and as PROFIT
CENTER, thereby contributing to his organization’s GROWTH and PROFITABILITY.

PARADIGM SHFIT:

From: District Manager as a STEWARD who takes care of the grows the owner’s
assets.

To: District Manager as a BUSINESS ENTREPRENEUR who acts like the owner of
the company and grows it profitably.

DISTRICT MANAGERS ESSENTIALS 2 enables the District Manager to think

STRATEGICALLY in the way he leads and manages his District and equips him with advanced
TOOLS for ANALYSIS, PLANNING and EXECUTION of CORPORATE STRATEGY.

Strengthens the District Manager’s:

 4

● LEADERSHIP COMPETENCIES

● SELF-CONFIDENCE

● WINNING ATTITUDE

GENERAL OBJECTIVES of this Manual:

As a result of serious and active participation in this program, participants will:

1. Experience the following paradigm shifts:

a) From operational to strategic thinking

b) From short-term to long-term planning

c) From an employee to a business entrepreneur

d) From conflict to collaboration

2. Acquire the following skills:

a) Craft a shared district vision aligned with corporate mission, vision, values, goals and
strategy.

b) Manage the district as a profit center.

c) Formulate strategic district business plan aligned with corporate strategy

d) Utilize effectively the tools for critical execution and monitoring of strategic business
plan

3. Produce the following outputs:

a) District shared vision

b) Strategic business plan

c) Tools for critical execution and monitoring

STRATEGY AND EXECUTION

STRATEGIC THINKING

BUILDING A SHARED DISTRICT

VISION

ROLE OF SALES AND BUILDING A SHARED DISTRICT DEVELOPING ENTREPRENEURIAL

COLLECTION BUSINESS PLAN MINDSET
 5

DISTRICT MANAGERS ESSENTIALS 2 STRATEGIC THINKING

OBJECTIVE OF THE TOPIC:

As a result of actively participating in this topic, participants are able to:

● Develop / hone their strategic thinking process;

● Differentiate between strategic thinking and operational thinking;

● Align District Strategy to Corporate Strategy.

Part I: ASSESSMENT

Use this tool to assess strategic thinking abilities. For each statement below, indicate how
accurately the statement describes you. “1” indicates “Rarely”, “5 “indicates “Usually”. Be sure
to answer based on your actual behavior in real workplace situations. That way, you’ll have the
most accurate assessment of your skills.
 6

RATING
STATEMENT RARELY USUALLY

1 2 3 4 5

1. I ask questions about what’s going on in my unit, company,

Industry, and wider business environment.

2. I am able to adapt approaches and shift ideas when new

information suggests the need to do so.

3. I look for opportunities today that might generate valuable

results tomorrow.

4. I view challenges as opportunities

5. I welcome new ideas and opinions - even if they seem strange

at first.

6. I take criticism well by not reacting in a defensive manner.

7. I work to broaden my knowledge, experience, and skill set.

8. I seek other people’s opinion.

9. I anticipate how my actions will affect others around me.

10. I question my own longstanding assumptions and encourage

others to question theirs.

11. I understand the forces influencing my group’s performance.

12. I know who my company’s customers are and what they

value.

13. I know who my company’s competitors are and what makes

us different from them.

14. I stay up to date on important trends affecting my company’s

industry and group’s operations.

15. I objectively analyze situation.

16. I evaluate the pros, cons,a nd implications of different course

of action.

17. I grasp abstract ideas and put the “pieces “together to form a
coherent picture.

18. I generate a wide variety of options, visualize new

possibilities, and formulate fresh approaches.

19. I see patterns across unrelated events and information.

20. I can shift out irrelevant from relevant information while

deciding how to solve a problem or handle change.

21. I can often visualize new possibilities that others have trouble
seeing.
 7

22. I try to generate multiple alternative courses of action while

making important decisions.

23. I can compare the potential short- and long-term

consequences of actions I’m considering.

24. I consider whether improvements I’m making to my own

group’s operations may create problems for people in the other
parts of my organization.

25. I stay focused on my objectives while handling mutiple

demands and competing priorities.

TOTAL SCORE
(Calculate your score by adding up numbers for each responses)

Part II: Scoring:

Use the following table to interpret your score

Exceptional: You’re talented strategic thinker who possess many of the

104-125 traits, behaviors, attitudes, and cognitive capacities that are necessary for
thinking strategically.

Superior: You’re a highly effective strategic thinker in may areas but would
78-103
benefit from refining some of your skills.

Adequate: You know and practice many of the basics of strategic thinking.
51-77
However, you can increase you success by further extending your skills.

Deficient: You’ll need to work broadly on your strategic thinking skills so

25-50 that you can learn how to analyze opportunities and problems from a board
perspective and understand an action’s potential impact on others.
 8

Reference: 2005 Harvard Business School Publishing. All rights reserve

PREREQUISITES TO BEING A STRATEGIC MANAGER

● Learn to become a strategic thinker first.

WHAT IS STRATEGIC THINKING?

● Ability of the managers to process a stream of ideas and reflections that help in two ways:

 see the big picture/vision

 Help prevent them from getting lost in the wrong kind of details

● A process that generates insights, options and breakthroughs to move an organization or unit
forwards in an uncertain and changing environment.

● A process in which you develop a vision for your business and then work backwards to
develop a plan to accomplish that vision.

● Vision provides direction but it’s impossible to achieve a vision without strategy.

● Strategic thinking involves developing skills in creativity, problem solving, teamwork, critical
thinking and flexibility.

● Strategic thinkers are able to see the big picture, as well as how to attain it.

● A tool to help confront change, plan for and make transition, and envision new possibilities
and opportunities.

WHY STRATEGIC THINKING

● To manage rapid changes

 market
 9

 customers

 competition

 technology

● To avoid surprises

● To neutralize threats and seize opportunities

SOURCE: The EXECUTION PREMIUM by Robert S. Kaplan & David P. Norton

 10

SOURCE: The EXECUTION PREMIUM by Robert S. Kaplan & David P. Norton

11
 12

DIFFERENCE BETWEEN

STRATEGIC THINKING TACTICAL THINKING

 Broad Scope  Narrow Scope

 Reversibility harder  Reversibility easier

Many functional areas affected  Few functional areas affected

 Goals compromise means and ends  Goals compromise means only

Central organizing statement (Strategy)  Day to day actions (Tactics)

 Mental, intangible  Physical sensory

 Focused  Typically includes many things

HOW TO DEVELOP STRATEGIC THINKING SKILLS:

 13

1. Examine the status quo.

● Examine critically how things have always been done to determine if that is the way
should now be done.

● Be willing to look outside of the norm to find more efficient and creative ways of doing
things.

2. Look at the forest, not the trees.

● Don’t be mired down by the details of managing day-to-day issues.

● Look at the organization as a whole to assess attributes and areas of opportunity.

3. Focus on the future.

● It is goal oriented and guided by a vision for the future of the district.

● In developing strategies for district business growth, those strategies must have
clearly defined goals that contribute to the overall vision of the company.

4. Consider external forces when you develop a strategic plan.

● Political, Economical, Social, Technological, Environmental, Legal (PESTEL)

5. Broaden knowledge and understanding of your industry.

● Intensify market intelligence activities and be up to date on competitive activities and

industry developments.

● Monitor trends and shifting customer expectations.

6. Check the facts.

● Predictions must be realistic.

● Gather hard data, both internal and external.

7. Consider the organizational structure of your business and assess how the team fits into
your strategies for the future. Reorganization maybe considered to achieve goals.
 14

8. Anticipate challenges.

● Be able to predict what issues will rise and devise a plan to confront those issues
ahead of time.

IN SUMMARY

● District Sales Managers need to be strategic thinkers before they can manage their
District strategically.

● District Sales Managers should understand the corporate strategy so that they can
effectively align their District to the corporate directions.
 15

DISTRICT MANAGERS ESSENTIALS 2 Building Shared Vision of the District

OBJECTIVE OF THE TOPIC:

As a result of actively participating in this topic, participants are able to:

● Differentiate between Mission and Vision

● Understand the corporate Mission, Vision, Values

● Enhance their skills and confidence in leading their teams in crafting a shared district
vision

● Engage their district team to move toward one vision that is aligned with their company’s
vision in a non-coercive manner.

The paradigm of the corporate world in the 20th Century was -

“To see is to believe”

The emerging paradigm of the corporate world in the 21st Century is -

“Believe first then you’ll see”

VISION: BASIS FOR STRATEGY

“The absence of vision will doom any strategy…especially a strategy for change.”
- Robert Knowling, CEO, Covad Communications

DIFFERENCE BETWEEN A MISSION AND A VISION STATEMENT

● Mission defines our purpose, present boundaries and scopes.

● Vision tells where we are going and why.

 16

 Defines the mid-long-term [3 - 10 years] goals of the organization

 Contains three vital components:

≈ stretch goals

≈ definition of niche

≈ time horizon

A VISION is…

● A vivid picture created by the imagination.

● A look into the future in the manner we desire that future to become.

● A look at the future, a future filled with hope and promise.

A vision is a construction of a “mental picture” of what an organization should look like

sometime in the future.

A vision answers “Where should we be going?”

WHY IS VISIONING IMPORTANT

It is a major factor in:

● compelling people towards success

● promoting active work engagement

AN EFFECTIVELY COMMUNICATED VISION is a valuable tool for enlisting the commitment of

team members for the actions that get the district moving in the intended corporate directions.

WHAT KIND OF PICTURES ABOUT YOUR TEAM HAVE YOU PLACED ON THE WALLS OF
YOUR MIND?

HOW TO CRAFT A SHARED DISTRICT VISION

1. Personal reflection.
 17

a) Start with team members writing down their answers to this question;

i. What is your vision of a better district team?

2. Personal sharing.

a) Team members to read their personal vision individually to the team.

3. District Team Vision.

a) Write down on the flip chart all personal visions of the team members.

b) District Manage to facilitate synthesis of team vision.

c) A shared district vision approved by the team.

ALIGNMENT OF DISTRICT VISION WITH CORPORATE MISSION, VISION, VALUES

1. The team reads their newly crafted shared district vision together.

2. Then the team will also read the Corporate Mission, Vision, Values and Strategies.

3. Align newly crafted district vision with the corporate mission, vision and values and
strategies.

4. Crafted strategy that will support the aligned District Vision.

STRATEGIC VISION becomes real only when the vision statement is imprinted in the minds
and hearts of team members and then translated into hard objectives and strategies.

3 STEP PROCESS TO ALIGN TEAM MEMBERS WITH THE CORPORATE STRATEGY

1. Communicate and educate team members about the strategy.

2. Link team members’ personal objectives and incentives to the strategy.

3. Align training and development programs to provide team members with competencies to
enable them to execute strategy successfully.
 18

DISTRICT MANAGERS ESSENTIALS 2 Role of Sales and Marketing

OBJECTIVES OF THIS TOPIC:

As a result of actively participating in this topic, participants are able to:

 Explain Sales Management’s role in Marketing

 Explain the two meanings of Marketing

 Balance the goals/objectives of the strategic 3Cs

 Establish the interdependence between Sales and Marketing in the achievement of

corporate go.als

 Assess and improve current market segmentation

 Enhance marketing orientation

DIFFERENT PHILOSOPHIES
 19

SELLING ORIENTATION

PRODUCTION MANUFACTURE AGGRESSIVE AIM AT

CAPABILITY PRODUCTS SALES EFFORT CUSTOMER
TARGET

MARKETING ORIENTATION

Actual and
Production
Potential
Potential Capabilities Market
Customer
Market Products Customer
Wants Opportunity Marketing Services

Needs Program

FEEDBACK

MARKETINIG: 2 Meanings

1. Marketing as set of activities and tasks that constitute:

 20

 marketing planning and

 decision making

2. Marketing as a BUSINESS PHILOSOPHY

MARKETING

Marketing is the interface between a company and its market involving the task of continuously
and profitably creating and delivering products and services that customer needs, want or will
value, better than competition.

STRATEGIC 3 C’s OF MARKETING

CUSTOMERS

MARKETING
MARKETING

COMPANY COMPETITIO
N

OBJECTIVES OF THE 3 C’s IN THE MARKETING

CUSTOMER To satisfy / delight them

COMPETITION To outperform them in delighting customers

COMPANY To ensure growth and profitability

 21

5 P’s of Marketing

PRODUCT

PLACEMENT

PROCE

PROMOTIONS

PEOPLE & SERVICES

Promotional Mix

≈ Advertising

≈ Sales Promotion

≈ Public Relations

≈ Personal Selling

MARKET-INDUSTRY INTERACT

Information

MARKET Money

(Customers) MR FIRMS

MDs, DS Goods
Communication
 22

MARKETING

Composed of 4 interdependent decisions:

● target - market (Customer) selection

● target - competitor selection

● determining the value - proposition

● determining marketing plan aggressiveness

- Prof. Taylor, University of Michigan

MARKETING is a process: A distinct set of activities and tasks that constitute marketing
planning and decision-making.

Involves 4 areas:

● Market Segmentation

● Selecting target market

● Market Positioning

● marketing planning

SEGMENTATION RATIONALE

1. Effectiveness:

● Identifies right potential market segments

● Creates a strong product image to offset competition.

2. Efficiency:

● Optimizes resources allocations.

● Focuses promotional activities for maximum effect.

 23

APPROACHES TO SEGMENTATION

 Geographic, socio - economic segmentation.

a. Consist of subdividing the market into geographic characteristics, example - urban,

rural characteristics which correlate with needs / wants.

i. In rural areas, MDs tend to support resp at least in one product.

b) Consist of clustering the market in terms of income, education, social class.

i. Patients of medical city hospital, makati medical center belong to the class A, B
and C.

 Demographic

Dividing the market into different groups of customers based on age, ethnic groups, ways
of thinking (psychographics).

Examples:

 Before Muslims prefer injectibles over orals.

 Consultants tend to prescribe innovator brands perceived to be giving greater value.

 We tend to treat Binondo, Chinese General Hospital, Metropolitan as a segment based

on predominantly Filipino-Chinese clientele.

SEGMENTATION (DISTRICT LEVEL: PROFILING)

Classify market segments according to common needs and buying satisfactions.

Examples: CUSTOMERS

 Consultant Cardiologists, affiliated with major training hospitals.

 Resident Physicians of PGH Department of Cardiology

 40 year-old and above, males with HPN

 24

TARGET- MARKET SELECTION

 Which markets are attractive?

 What emphasis will be made on each market segments?

 Forecast the nature & size of each market segment.

WHY DO CUSTOMERS BUY AND CONSUME WHAT THEY DO?

CUSTOMER VALUE

The difference between what the customer derives from owning and using a product & the cost
of owning the product.

VALUE & CHOICE

PERCEIVED BENEFITS +

PERCEIVED VALUE OWNERSHIP COSTS -

PRICE -

VALUE & CHOICE

● Product Choice Set: alternatives customer considers when satisfying a need.

● Customer’s Need Set e.g. speed, convenience, ambience etc.

● Utility: Customer’s estimate of product’s overall capacity to satisfy his/her need.

● Value: Benefits (Utility) minus cost.

 25

ATTRIBUTES / BENEFITS (Critical Purchase / Satisfaction Drivers)

 PRODUCT

 Performance / functionality

 Quality

 Ease of use / Simplicity

 Packaging / style / Design

 Features

 SERVICE

 Availability

 Ease / Quality of Pre- and Post - purchase processes

 Assurances (e.g. warranties, guarantees, support help)

 After Sales Service

 Facilities

 BRAND IMAGE / COMPANY REPUTATION / RELATIONSHIP

 Reputation for innovation, leadership, etc.

 Brand / Company Equity

MARKETING

Is a total business philosophy aimed at creating value by continuously satisfying target

customer groups with innovative products and services.

A philosophy for the whole business, marketing defines the primary goal of everyone in the
organization as meeting the needs of customer.

● Satisfied customers: only source of firm’s profit, growth and security.

● Marketing : the philosophy that integrates disparate activities and functions within the
organization.

MARKETING AS A BUSINESS PHILOSOPHY

5 Basic Assumptions
 26

1. Company products are of no use without customers.

2. Most important job of company is to attract and keep customers.

3. Customers are attracted through high value offiers and kept by providing satisfaction.

4. Task of marketing is to define appropriate offer and ensure delivery of satisfaction.

5. Customer satisfaction affected by performance of other departments.

THE PURPOSE OF BUSINESS

 The purpose of the business is to create delighted customers.

 Profit is not the only purpose of the business.

 Profit is the result of the performance of the business in marketing innovation & productivity.

TWO FUNCTIONS OF A BUSINESS ENTERPRISE

● Marketing asks “What do customers need?” NOT “What do we want to sell?”

● Innovation

 change that creates a new dimension of performance

 the provision of better & more economic satisfaction

INNOVATION: COMPETITIVE EDGE

● Innovation is vital to growth but firms seldom master it.

● Innovation is a way of life that affects all in the organization, not only R&D.

● Innovation cannot be successful without successful marketing

● Innovation drives customer value; value determines a form’s sustainable competitive

advantage.

WHO IS THE CUSTOMER?

Traditionally: - A customer is one who has a need which when satisfied s willing to pay for your
costs and profit.

LEVELS OF SATISFACTION

● Customer satisfaction - simply fulfilling customer needs; does not guarantee loyalty.
 27

● Customer delight - happy customers endorse the product; become repeat customers.

● Customer surprise - excited customers are hard - to -steal loyalists who tell people of their
wonderful experiences with a product.

- Prof. Rene T. Domingo, AIM

RELATIONSHIP BETWEEN
MARKETING AND SALES

MARKETING SALES
 Develops plans and strategies for
 Execute plans and strategies for products
products to be sold.

 Identifies and analyzes target market and  Identifies target customers within the
products logistic identified markets

 Monitors product movement and

Reports on product movement and
evaluates effectiveness of marketing and
outcome of CME and other promo
CME activities

 Formulate counter strategies to offset Gathers information on competitive

competitive threats activities and gives feedback to marketing

 Assist the President in determining the

 Achieves the product mix objectives of
best combination of products to achieve
company.
profit objective

Maintains up-to-date business  Conducts regular market surveillance

intelligence and reports to head office.

 Monitors market response to new product  Gathers feedback from doctors and trade
launched. on new products off-take.

Marketing As Business Philosophy

Five Basic Assumptions

The goal of the entire company is “CUSTOMER SATISFACTION”

Therefore, every department must have marketing orientation.

ROLES IN MARKETING

Logistic:
 28

● Ensures availability of products at the right time, right quantity & quality and right cost.

● Coordinates closely with marketing to support marketing requirements.

HUMAN RESOURCE:

● Insures availability of qualified employees to meet manpower requirements.

● Provides budget for training and development.

FINANCE:

● Insures availability of funds.

● Monitor cost of goods and expenses.

● Provides product P & L analysis to marketing for proper guidance in planning and product
mix.

SUMMARY

● Marketing concept is not a theory but a philosophy of business.

● It affirms that key to meeting objectives of stakeholders is to satisfy customers.

● Success goes to firms that best meet customer needs.

● Top priority is to motivate employees to be innovative / creative in satisfying customers.

DISTRICT MANAGERS ESSENTIALS 2 Developing Strategic District Business Plan

OBJECTIVES OF THE TOPIC:

As a result of actively participating in this module, participants are able to:

● Present a draft of their Strategic Business Plan that will have an impact in the market.

● Maximize sales and profits.

 29

● Manage company resources more efficiently.

● Identify and exploit business opportunities.

● Anticipate and minimize impact of threats.

● Do SWOT AND PESTEL analyses for decision making.

STRATEGIC BENEFITS

Strategic Business Planning means:

● Planning for success.

● Spotting trends in the market.

● Identifying and analyzing business opportunities.

● Organizing and costing activities.

● Producing a Business Plan to enable you to make real impact in market.

ARE YOU A MANAGER OR A LEADER?

“Contrary to what some theories of organization currently affirm, the era of management has
not ended, nor will it ever end.

Nowadays it is claimed that leaders will replace managers. This is not so.”

- Peter F. Drucker

BUSINESS MANAGEMENT: 2 ELEMENTS

1. ENTREPRENEURIAL (Defining Mission / Vision)

a) Need to define PURPOSE and ASPIRATION

b) Need to make a STRATEGIC BUSINESS PLAN

2. LEADERSHIP (Motivating and organizing human resources)

a) To motivate them to do their best

b) To fulfill the Mission/Vision

STRATEGIC BUSINESS PLANNING

 30

“ Strategic Business Planning is an organization’s process of defining its strategy or direction,

and making decisions on allocating its resources to pursue this strategy, including its capital
and people”

STRATEGIC BUSINESS PLANNING APPROACHES

3 Steps Process

● Where are we?

● Where do we want to go?

● How do we get there?

STRATEGIC BUSINESS PLAN

3 Step Process

● Situation - Evaluate current situation.

● Target - Define goals / objectives (ideal state)

● Path / proposal - map possible route.

STRATEGIC BUSINESS PLAN

3 Step Process

● What do we do?

● For whom do we do it?

● How do we excel?

(How can we beat or avoid competition)

STRATEGIC BUSINESS PLAN

 31

● DRAW - What is the ideal image?

● SEE - What is today’s situation?

● THINK - What specific actions must be taken?

An alternative: SEE - DRAW - THINK

BASICS OF A GOOD BUSINESS PLAN

What are the criteria for a good business plan?

● What should be the content?

● Any quality conditions you think it should meet?

● Any points on presentation or structure.

STRATEGIC BUSINESS PLANNING

The
Business
Plan
 32

P E S T E L
P
EXTERNAL FACTORS
E

MISSION, R
COMPANY STRUCTURE
VISION, F
RESOURCES SYSTEM STYLES
STRATEGY
O

INTERNAL R

M
CULTURE

SETTING OBJECTIVES / GOALS

Objectives
 33

MRs SALES SALES/BUDGET/MARKET SHARE

Sales Mngt. Dis. Sales Objectives Expense / Sales Ration

Marketing Marketing Objectives Marketing Mix

Top Management Corporate Objectives Marketing / HR, Finance, etc.

OBJECTIVES

1. Sales: Actual vs. Budget

2. Market Share

3. Sales Performance of each territory.

4. Implementation of Marketing Programs

5. Productivity (Ave. Sales / MR)

6. Actual calls vs. Standard

7. Calls made to A and B doctors

8. Sales / call

9. Expense to sales ration

10. Other KRAs (KPIs)

MARKET AUDIT

Identifying Your Markets

MARKET SEGMENTATION - is an art rather than science (from Peter Doyle)

Find variables that split the market into actionable segments

TWO TYPES OF VARIABLES

1. NEEDS: Basic segmentation criteria

2. PROFILERS: Descriptive, measurable characteristics

 34

SEGMENTATION

1. SALES SEGMENTATION:

Based on value (potential value and impact) by therapy area. This provides the database
on which targeting can be applied to maximize deployment of company’s valuable
resources.

2. MARKETING SEGMENTATION

Enables us to obtain maximum impact of each business call, by ensuring that we deliver
our message in the best way for that particular customer.

COMMON CONTENT OF BUSINESS PLAN

Sales performance of the territories vs. Sales budgets, vs. Previous year (growth), market share
and contribution:

Territory 003
Territory 001
Territory 006
Territory
Territory 004
002 Territory 005

APPLYING THE 80:20 RULE:

Hospitals / Medical Drugstores 25% of

customers Government Agencies
Center 15% customers
20% of customers 5% of
20% sales Rx/sales
60% of Rx /Sales
 35

Territory
Dispensing
Doctors 35% of
Industrial / Institutional 5% of
004
customers 10% customers
of Rx/Sales
5% of rx / sales

SWOT ANALYSIS:

SWOT ANALYSIS

Strength / Weaknesses

 Sales - Marketing - Distribution - Process

 Management - Systems - Resources - Expertise

 Products - Services - Quality - Prices

 Features - Range - Competitiveness

 Finances - Performances - Structures

 36

Strength / Weaknesses

 Industry - Size - Segments - Growth pattern - Maturity - Established patterns & relationship

 Emergence - Contraction of niches - Attractiveness of segments

 Economic & social factors - Customers - Distribution Channels

 Demographic Issues - Political - Environmental

 Competitors - New technologies - Processes etc.

SWOT ANALYSIS
Strengths Opportunities

● Large Sales Force ● Bullish Economy

● Good product knowledge ● Mid-term election

● Strong relationships

Internal Factors External Factors

Internal Factors External Factors

● Low R & D compared to multinationals ● 2nd wave of MDRP

● High turn-over of reps ● Generics Pharmacy

● Self-medication

Weaknesses Threats

CUSTOMER AUDIT

Sales Productivity

“Belle Curve Theory” A group of observable behaviors,

which through research, has been
shown contribute to effective
What makes performance at work.
difference between
outstanding and
normal staff?
 37

MEDICAL REP’S PERFORMANCE

SALES PRODUCTIVITY

RIWhat do the “A” Reps do that others don’t?

What is their secret for success?

 38

1. Find and call on the “Best Customers”

2. Spend more time with their “Best Customers”

BEST KEPT SECRET IN SELLING

-------

SALES FORCE EFFECTIVENESS

How do we define “effective”?

What is Sales Force Effectiveness (SFE)?

 RIGHT target

 RIGHT frequency

 RIGHT Message

 RIGHT Skills

 RIGHT Attitude

PROFILING DOCTORS

 Segmentation of customers by value, target, and allocate resources accordingly.

 Grouping of customers by behavioral / attitude and tailor product propositions accordingly.

 Identifies valuable customers today and tomorrow.

 Highlights under and over-penetrated customers.

 Optimizes MD visits and budget allocation

 Aligns territories and districts

 Key customers data: Business - critical data.

 Segmentation & targeting: On-going basis

 Targeting done by segmenting based on value

 Prescriptions

 Influence

 Shared patient management

 Identify MDs responsible for 80% business

 39

 A. Key Customers

 B. Top Customers

 C. Medium

 D. Low

1. SALES SEGMENTATION

 Based on value (potential value and impact)

 Data base for targeting

 Maximal deployment of resources (business visits, promotional spend)

2. MARKETING SEGMENTATION

 To obtain maximum impact of business visits

 Deliver right message in the best way

 Categorize customer needs into segments

 Customize offerings to satisfy customer needs

PARADIGM SHIFT

FROM TO
Territories Each Territory is unique

Focus on Sales Focus on Market Share

All MDs are of value Some MDs are unprofitable

MDs are similar MDs are different

Make more calls Make calls to the right target

If only I had the data If only I had the insight

PROFILING DOCTORS

Doctor Profile

Taking one of your segments,

profile your doctors, for example
identifying their attitudes, styles,
and level of relationship or
support.
 40

IDENTIFYING MD TARGET

HIGH

Market Segmentation
B A

Using data fromWhatyourparameters

Master can we use in
List, identify key doctorTargeting MDs
segments (group of doctors with
similar needs) e.g. D C
Cardiologists,
LOW
Gastroenterologist, etc.

LOW HIGH

IDENTIFYING MD TARGETS

DDHIGH
For Development VIP Doctors

B A
SALES POTENTIAL

D C
LOW Evaluate Maintain

LOW RELATIONSHIP WITH MD HIGH

41
 42

DISTRICT MANAGERS ESSENTIALS 2 I STRATEGYEXECUTION:

Implementation, Monitoring, Evaluation, Correction

OBJECTIVES OF THE MODULE

As a result of actively participating in this topic, trainees are able to

● Clarify their leadership roles for successful strategy execution;

● Identify the causes of execution derailment;

● Specify what drives execution;

● Use tools of Performance management;

● Conduct Operations Review Meeting, and Strategy Review Meeting

 VISION WITHOUT EXECUTION IS NOTHING

 STRATEGY IS THE MEANS TO THE VISION

 SUCCESSFUL EXECUTION OF THE STRATEGY LEADS TO THE REALIZATION OF THE

VISION
 43

A study conducted involving over 3,633 executives from 49 countries to evaluate leaders’
readiness showed the following result:

1. Although majority of executives can be expected to succeed in taking operational control, 29%
of them are deficient in their ability to drive execution, 20% were prone to lack of discipline.

2. Only 14% of executives had development needs in operational decisions, but 20% showed
strong tendency to become indecisive under pressure.

3. 30% of executives had development need in change of leadership, 41% were at moderately
high risk of resisting change.

4. 19% of executives were at high risk of being emotionally unpredictable under pressure.

5. 12% of executives have difficulty building trust or having trouble relating to others; while 20%
of them remained detached from others.

6. More than 1/3 of the executives have often struggled with improvement, 20% have
tendencies to micromanage, 14% have poor interpersonal relationship.

Recent Global Study conducted by HR Institute and the American Management

Association found that execution Derailment are due to:

1. Heavy reliance on annual strategic and performance reviews.

2. Slow and ineffective decision - making.

3. Weak employee engagement.

4. Inefficient attention to customer needs.

5. Unclear roles, responsibilities, accountabilities and program measures.

6. Inability to work laterally across functions and departments.

7. Weak monitoring of progress.

 44

8. Ineffective delegation of execution.

EXCELLENCE IN EXECUTION

Is the successful implementation of corporate strategy that results in the achievement of

business objectives in the midst of changing business environment and competitive pressures.

THE STARTING POINT OF STRATEGY EXECUTION

 Clarity of purpose (Mission)

 Compelling picture of the future (Vision)

 Credible leadership (Trust)

 Connections within the business (employee engagement ad cross-functional collaboration)

SUCCESSFUL STRATEGY EXECUTION DEPENDS ON TWO FACTORS:

 A focus on the right strategic goals, led and championed by senior managers, that unites the
organization behind the strategy, determines the measures and milestones of success and
makes sure that resources - financial, technological and human - are allocated effectively.

 The freedom granted to individuals, teams, suppliers, strategic partners to be creative in

finding new and innovative ways of carrying out these goals.
 45

The focus on execution and performance is less on the leader’s or chief expert or chief
discoverer and more on that of chief facilitator.

By Richard Pascale (Oxford University)

6 LEADERSHIP ROLES FOR SUCCESSFUL STRATEGY EXECUTION

1. Instilling focus and clarity

2. Generating engagement and commitment

3. Allocating scant resources

4. Fostering collaboration

5. Creating the right milestones of achievement

6. Managing pace of change

6 LEADERSHIP ROLES FOR SUCCESSFUL STRATEGY EXECUTION

1. INSTILL FOCUS AND CLARITY

● A well-defined focus for any strategy initiative in critical, both to engage the people and
to enable the DSM to allocate resources correctly.

● Clarity is essential. Tasks need to be broken down into easy-to-understand objectives.

Discuss with the team members until they understand what they are doing and why they
have to do it.

Mission Leadership has the following elements:

 46

● District Manager gives instructions in a manner that ensures team members understand
his intentions, their own mission and the context of the mission.

● He tells them what they are to achieve and why.

● He gives them the needed resources to carry out their mission.

● He uses minimum control measures (so as not to limit the limit the freedom of action of
subordinates).

● He allows Team Members to decide (within their delegated freedom) how best to
achieve their mission. “Tell me what to do, not how to do it”.

2. GENERATING ENGAGEMENT AND COMMITMENT

● He builds strong positive relationship with his team members.

● He promotes teamwork and synergy among his team members.

● He talks about the company / district with pride.

● He exhibits character and integrity.

3. ALLOCATING SCANT RESOURCES

● He channels limited resources into the right projects

● He applies effective measurement of performance.

● He allocates resources strictly in accordance with the mission and goal.

4. FOSTERING COLLABORATION

● He promotes a cooperative mindset that supports a whole system of organizational

values, practices, norms, language, stories and habits.
 47

5. CREATINGTHE RIGHT MILESTONES OF ACHIEVEMENT

● He uses measures that illustrates effectively how far the district has progressed.

6. MANAGING PACE OF CHANGE

● He shifts gear upwards or downwards according to how much stress the district can
bear.

● He constantly re-assesses internal needs

● He anticipates onset of further change triggered by outside circumstances [business

environment and competitive pressures.

HOW TO DRIVE EXECUTION

1. Stay on top of situation:

● Monitor progress closely

● Bring out issues and resolve them

● Identify obstacles to good execution and initiate corrective measures

2. Apply constructive pressure

● Achieve good results

● Ensure operating excellence

3. Lead the development of Team Members

● Strengthen core competence and commitment

● Sharpen competitive capabilities

4. Display ethical integrity and lead social responsibility initiatives

● Lead by example

● Enforce self-discipline
 48

5. Push corrective actions

● Improve strategy execution

● Achieve targeted results

STRATEGY MAP

The strategy map describes the way the organization intends to create value for its
stakeholders

PERFORMANCE MANAGEMENT MEASUREMENT

1. Balanced Scorecard [BSC]

2. Dashboards / Key Performance Indicators [KPI]

1. BALANCED SCORE CARD [BSC]

 49

 The BSC translates an organization’s mission/vision and strategy into comprehensive

set of performance measures that provides the framework for a strategic measurement.

 The BSC measures organizational performance across 4 balanced perspectives:

financial, customers, internal business processes, and learning and growth.

 The BSC enables organization to track financial results while simultaneously monitoring
progress in the building the capabilities and acquiring the intangible assets they need for future
growth.

 The BSC emphasizes that financial and non-financial measures must be part of the
information system for employees at all levels of the organization.

2. DASHBOARDS / KEY PERFORMANCE INDICATORS (KPI)

 Are measures of business performance.

 Are collections of key indicators that provide feedback on local process performance.

 Dashboard data valuable in managing and improving day-to-day processes.

 The are prime informational input for focused operational review meetings.

MONITOR / EXECUTE / CORRECT

 Strategy Review

 Operations Review

HOW TO CONDUCT A STRATEGY REVIEW

Objectives: To monitor and manage the strategic initiatives and the balanced scorecard.

 Meeting should start meeting and end on time

 A monthly strategy meeting helps establish a new longer-term culture.

 Team members come together to monitor and discuss the progress of the district’s strategy.

Focus on problem solving, learning, and formulating actions. Stresses importance of deciding
“what is right” and not “who is right”.

 Review objectives, measures, targets, action plans.

 50

HOW TO CONDUCT AN OPERATIONS REVIEW

Objectives: To monitor and manage short-term financial and operational performance.

 Assess short-term performance and respond to problems that have arisen recently and need
immediate attention.

 Frequency of operational review meetings should be determined by the operating cycle of the
district.

 Should be short, highly focused, and action oriented.

 Review reports and data in advance.

 Spend time together on analysis, problem solving and decisions.

 To be most effective, all team members should attend.

DISTRICT MANAGERS ESSENTIALS 2 The District As a Profit Center

OBJECTIVES:

As a result of actively participating in this topic, participants are able to:

 Specify the operational elements of their District;

 Identify cost drivers;

 Identify and prioritize their customers;

 Operate their District as a Profit Center;

 Apply valuation techniques estimating the lifetime value of their customers.

 51

In a highly competitive and volatile industry, where companies are rapidly proliferating, prices
are deteriorating, and rules of the game change, the Sales Force must be well-trained and
highly engaged, and led by entrepreneurial District Manager who manages his District as a
Profit Center.

PARADIGM SHIFT

THE DISTRICT AS PROFIT CENTER

FROM TO BUSINESS
STEWARD ENTREPRENEUR

A STEWARD

A good STEWARD

Represents the owner

Manages the resources of the owner

Increases the value of what has been entrusted to him

Protects what has been entrusted to him from loss or deterioration; and

Accounts for hoe he has used the resources entrusted to him.

THE DISTRICT MANAGER AS BUSINESS ENTREPRENEUR

He manages the business and resources entrusted to him like the owner and ensures
continuous profitable growth of his District.

He understands and aligns his District with his company’s Mission, Vision, Values, Goals and
Strategies.

He trains, develops, empowers and motivates the people assigned to him.

 52

He knows his markets, customers, supporters, competitors and industry developments.

He weighs options and decides where to invest his time, efforts and resources.

He takes calculated risks and learns fast from his mistakes.

He protects and enhances the good image of his company.

Looks for opportunities to increase his net worth (value)

He is accountable for the GROWTH and PROFITABLITY OF his District and manages it as
PROFIT CENTER.

THE DISTRICT AS A PROFIT CENTER (Paradigm Shift)

FROM TO

The primary goal of BUSINESS is PROFIT The primary goal of BUSINESS is to SERVE
CUSTOMERS

Business must GROW to generate PROFIT Business GROWTH comes from SATISFIED
CUSTOMERS

To GROW we need to SATISFY our PROFIT is the consequence of BUSINESS

CUSTOMERS GROWTH from LOYAL CUSTOMERS.

UNDERSTADING THE BUSINESS OPERATIONS

IMPLEMENT

OPERATING GUIDELINES
 53

A. PROFIT CENTERS - Sources of profitable business

1. Doctors

2. Hospitals

3. Drugstores

4. Government Agencies

5. Industrial / Institutional Outlets

6. Distributor

7. Geographic Clusters

8. New / Untapped Profit Centers

I. DOCTORS

a) Prescribing Doctors

b) Dispensing Doctors

c) Key Opinion Leaders (KOLs)

d) Therapeutics Committee Members

e) Type of practice

f) Prescribing patterns

g) Types of patients

II. HOSPITALS

a) Teaching / Training hospitals

b) Specialty hospitals

c) General hospitals

d) Medical Centers

e) Clinics
 54

f) Department

i. Medical

ii. Surgical

iii. Pediatrics

iv. OB / GYNES

v. OPD

vi. Emergency

vii. Laboratory

viii. Pharmacy

g) Purchasing payment procedures

III. DRUGSTORES / CHANNELS

a) Retail Chains stores (MDC, Watsons, etc.)

b) Retail drugstores

c) Wholesale drugstores

d) Groceries / Supermarkets

IV. GOVERNMENT AGENCIES

a) Department of health

b) Health / RHU

c) Relief agencies

d) Lying - in clinics

e) Bidding, funding agencies: PCSO, PAGCOR, purchasing procedures

V. INDUSTRIAL / INSITUTIONAL OUTLETS

a) Decision-makers / buying authority

b) Purchasing officers

c) Influencers

d) Ordering and payment procedure

e)

VI. DISTRIBUTOR

a) Sales and discount policies

b) Credit limit and terms of payment

c) Stock and inventory levels

 55

d) Delivery schedules

e) Branch/depot set up/deployment of salesmen

f) Sub-distributors and jobbers

VII. GEOGRAPHIC CLUSTERS

a) City

b) Province

c) Towns

d) Techno Parks

e) Export Processing Zones

SOURCES OF NEW PROFIT CENTERS

 Untapped potential markets / outlets / doctors / territories

 NGOs

 Sunrise Industries

 Civic Organization

B. COST ELEMENTS AND DRIVERS

1. Cost of Goods

2. Cost of Promotions

3. Cost of Operations

4. Cost of Distribution

5. Cost of Overhead

I. COST OF GOODS (COG)

a) Cost of Local Manufacturing (includes raw materials, packaging, labor)

b) Cost of imported Finished Goods (includes shipping, insurance, taxes)

c) Cost of warehousing

II. COST OF PROMOTIONS

 56

a) Samples

b) Promotional Materials (Product visuals, clinical reprints, medical journals, gimmicks,

etc.)

c) Continuing Medical Education (CME): Fellowships, Post-graduate Courses, Study

Grants, Research, Awards, Scientific Symposia/Lectures, International Conferences.

d) Sponsorships

e) Exhibits and Conventions

f) Advertising

g) Entertainment / Representation

h) Contract Sales / Promo Reps

III. COST OF OPERATIONS

a) Salaries and benefits of Med Reps, District Managers, Regional Sales Managers

b) Per Diem / Meal Allowance

c) Cost of travel: Car (gasoline, oil, battery, tires, repair and maintenance, insurance,
registration)

d) Cost of travel

i. Transportation allowance

ii. Plan fare (airport tax, porterage)

iii. Bus fare, boat fare, jeep/tricycle hire, taxi.

e) District Meetings

f) Cellphone, email, XDA/PDA, LCD

g) Laptops

IV. COST OF DISTRIBUTION

a) Percentage fee paid to 3rd party distributor (includes salesmen, warehousing, shipping,
and delivery of stocks)

b) Additional discounts given to sub-distributors and jobbers; additional discounts given

to retail chain drugstores (MDC, Watsons, etc.)

c) Special carges paid to certain outlets for carrying and supporting the product (s).

V. COST OF OVERHEAD

a) Salaries and benefits of Executives and office-based personnel (Support Group)

b) Office rental, repair and maintenance

c) Cars, repair and maintenance

d) Utilities; power, water, communication (telephone, fax, internet, website, etc.)

 57

e) Office equipment (compute, photocopying, scanner, air conditioning units)

f) Furniture and Fixtures

g) Security, janitorial, and message services

h) Insurance

i) SSS, Philhealth, Pag-ibig Fund contributions

j) Taxes (Income, business, real estate taxes)

k) Bank charges, etc.

VI. OPERATING GUIDELINES

a) Mission

b) Vision

c) Values

d) Goals

e) Strategies

f) Policies

g) Procedures

h) Promotional Programs

i) Regulatory Requirements

HOW TO ENSURE PROFITABILITY OF THE DISTRICT

1. Create shared strategic vision for the District, aligned with the corporate MVVGS.

2. Identify and focus on profit centers.

3. Guard and prioritize the top 20% profit centers that account for 80% if the business

4. Ensure achievement of product mix.

5. Focus on customer retention

6. Build competencies, self-confidence and competitiveness of the sales force.

7. Use technology to enhance business effectiveness

8. Manage expenses

9. Handle risks effectively

10. Take the lead in monitoring execution of strategy.

11. Collaborate with marketing and other business units.

CUSTOMER VALUATION
 58

The value potential of customers must be viewed in the light of the organization’s business and
target markets.

2 PARAMETERS OF CUSTOMER VALUATION

 Actual current valuation

 Strategic or potential valuation

ACTUAL VALUATION represents teh CUSTOMER’S LIFE TIME VALUE (LTV)

● Stream of expected future profits, net of costs, from repeat business

● Added business from referrals of other customers

● Sources of information on customers’ preferences and tastes

● From this stream of profits deduct the cost of maintaining the relationships (personal sales
calls, time consumed, phone / fax / email, entertainment and favors extended

● Allocate these costs to specific customers to whom they apply.

3 - TIER CUSTOMER VALUATION ANALYSIS

1. MOST VALUABLE CUSTOMERS (MVCs). Those with highest Life Time Value. They are
VIPs / key accounts requiring high frequency coverage and special treatment.

a) They are the core of current business

b) They provide continuous business

c) They are the focus of Customer Retention

2. STRATEGIC CUSTOMERS (STCs). Those with highest unrealized potential.

a) They give the company lower share of the current business, but have the potential for
added profitability and customer growth.

b) They are the focus of CUSTOMER GROWTH

3. Those who never earn enough profit to justify the expenses involved in serving them.

a) They cost more to serve than the revenue they generate.

b) They are the focus of Customer Elimination

3 TYPES OF CUSTOMERS’ STRATEGIC VALUE

 59

1. Most Valuable Customer (MVCs).

Those with the Highest Life Time Value (LTV). They are VVIP/key accounts requiring high
frequency coverage and special treatment.

 They are the core of current business

 They provide continuous business

 They are the focus of CUSTOMER RETENTION

2. Strategic Customers (STCs). Those with the highest unrealized potential.

 They give the company lower share of the current business, but jave the potential for
added profitability and customer growth.

 They are focus of customer growth

3. Those who never earn enough profit to justify the expenses involved in serving them.

 They cost more to serve than the revenue they generate.

 They are the focus of customer elimination

3 TYPES OF CUSTOMERS’ STRATEGIC VALUE

1. COMPETITIVE BUSINESS

Business your customers do with a competitor.

2. BEHAVIOR CHANGE

Increase sales and profits by providing value-added services, such as:

 assisting in how to grow the business

 providing service items

 medical assistance during conventions

 decorating clinics

 providing updates on clinical studies

 preparing power point presentation materials

 60

3. CUSTOMER GROWTH

The potential a customer has when it becomes bigger on its own.

STRATEGIC CUSTOMERS REQUIRE GREATER DIALOGUE INTERACTION

 to find out what they need, why,where and when (Needs Specification)

 to determine the additional business they might be able to give (Strategic Value Analysis)

3 WAYS OF LOOKING AT VALUE POTENTIAL OF PROFIT CENTERS

1. Historical Value. Summary of purchasing or prescribing patterns and the revenues and
profits produced by the profit center.

2. Current Value. Summary of customer’s value today and projection of repeat purchase
if the relationship is maintained.

3. Potential Value. Summary of customer’s value today and the possibility of increasing
future revenues and profits thru growth in relationship and business
expansion.

3 WAYS TO IMPROVE DISTRICT PROFITABILITY

1. Increase sales without increasing expense.

2. Reduce expense without decreasing sales

3. Increase sales to increase profit

CASE STUDY:
 61

JUAN MIGUEL SANTIAGO was recently transferred to North/Central Luzon District after
successfully managing North GMA District fir 2 years, during which period he had consistently
won the Key District Manager Award for 2008 and 2009. This was the highest award given to
District Managers who achieved highest District sales and profit and all territories within the
District achieving at least 100% of sales target. He was also a consistent top performer when he
was a Med Rep.

North Central Luzon District had been declining steadily during the last 2 years - achieving only
69% in sales, 64% in gross margin and 44% in operating profit. Out of 6 Med Reps, only 2
achieved their sales targets. The newly hired Business Unit Head decided to replace the former
District Manager with JUAN MIGUEL MAGTIBAY who appeared to be the best candidate for
the ailing District. Expectations were high that he would be able to turn around the business in
North/Central Luzon.

JUAN MIGUEL SANTIAGO conducted his first District Meeting with his 6 Med Reps and took
up the following agenda:

1. LEVELING OF EXPECTATIONS. He clarified with them his leadership style and

expectations; and asked them what they expected of him.

2. SITUATION OF THE DISTRICT. He discussed with them the performance of the

District during the last 2 years and compared it with national performance. Then he
reviewed with them the District performance for the first 6 months of the year.

3. INDIVIDUAL TERRITORIAL REVIEW. He asked each Med Rep to give presentation of

each territorial performance, focusing on the sales, product mix, major sources of
business, competition, distribution, and channels, problems encountered,
opportunities for growth, and the kind of support needed from him and / or the office.

4. SCHEDULE OF OJTs. He announced that he would asked each one of them to

familiarize with their territories and to get acquainted with the entire District.

5. COMMITMENT AND SUPPORT. He assured them of his full support and expressed
confidence in their ability to improve performance, and sought their commitment.

The observations of JUAN MIGUEL SANTIAGO during the series of OJTs he conducted with
each Med Rep were as follows:

1. Lack of clear directions in terms of product priorities. Each Med Rep promoted and
sold the products that would enable him to achieve his sales target. The previous
District Manager monitored and evaluated territorial performance based on total
sales.

2. The Med Reps seldom detailed the products, claiming that since the products were old,
the doctors knew them already. Hence, they resorted to PR most of the time.

3. Samples were given out routinely and freely without much concern for the doctors’
type of practice and patients being treated, or potential.

4. Lack of monitoring prescriptions and product movement at the pharmacy and/or

drugstore levels. Med Reps had become complacent and too dependent on the
distributor salesmen.
 62

5. Lack of business intelligence activities. Most Med Reps were not familiar with
competitive strategies, and had difficulty differentiating our products with competition.
Do not know the prescribers of competitive products.

6. Poor implementation of promotional programs. Some key products were not available
in the hospital formulary. The new product was hardly moving. Lack promotional
activity due to poor attitude of the Med Reps.

7. Most Med Reps complained that they seldom received coaching from their former
District Manager; no feedback on areas for improvement nor positive reinforcement
for job well done. They were left mostly on their own.

8. There was a tendency to spend too much time out of Home Base; but most of the time
the sales generated was very meager. Much time was consumed travelling out of
town.

9. Previous District Manager was lax in approving expense reports and requests for
entertainment and donations, as well as car repairs and tire replacements.

10. Master Call Lists were not up-to-date. Last review of Master List was done 4 years
ago. Some doctors were no longer around. Some doctors have migrated or
transferred to other places, but still listed.

Based on the above initial findings. JUAN MIGUEL SANTIAGO must now come up with action
plans to correct the situation. What would you do if you were JUAN MIGUEL?

BUSINESS ANALYSIS:

1. How was the District Performance affected by the above performance deficiencies? What
would happen if the observed performance deficiencies were not corrected.

2. What corrective actions would you implement? What would you require your MRs to do?
What would you do?
 63

CASE STUDY: CHARLIE MAGTIBAY

 64

A. Business Analysis:

Failure to achieve Sales (69%) and Profitability (64%) objectives due to poor execution of
marketing programs.

1. Lack of clear directions

a) Previous DM focused only on total sales

b) He failed to clarify product objectives and set priorities based on Product Mix

c) No monitoring of performance and results

2. Poor implementation of promotional programs

a) He did not discuss and clarify promotional program

b) Did not require POA for product priorities/market/customer

c) Each MR promoted his favorite products

d) MR’s seldom detailed; relied mostly on PR.

3. Lack of monitoring and control of expenses

a) Samples were given out routinely and free without considering type of
practice/patients/potential

b) Too much time was spent out of base without regard to profitability/potential/cost

c) Laxity in approving expenses, such as entertainment, donations, car repairs, tire

replacements, etc.

4. Lack of business intelligence

a) Most MRs were not familiar with competitive strategies/activities

b) MRs do not do Rx survey, relying mostly on distributor Saleman

c) Master call list were not up-to-date

5. Lack of on-the-job coaching

a) Virtually no coaching, no feedback on performance strengths and areas for

improvement

b) MRs were left mostly on their own

c) No development plan for each MR

d) No business review/strategy review

B. Corrective Measures

1. Refocus promotional/sales campaign and set TOP PRIORITY OBJECTIVES on Products A

and B

a) Concentrate, time, efforts and resources on A and B.

b) Identify target doctors / hospitals/ outlets (profit centers) based on potential

 65

c) Identify most potential core prescribers

d) Require each MR to submit list of core prescribers in his/her territory

e) Involve MRs in coming up with strategies and action plans to speed up sales of A and
B.

2. Require each MR to prepare to submit POA for each target MD, hospital, outlet, etc. For
Products A and B.

a) Monitor implementation and give feedback

b) Monthly business review of progress

c) Monitor results and give feedback

3. Product review (A and B) and conduct regular Coaching session

a) Conduct product exam/review and role plays during District meetings

b) Conduct regular OJT and coaching for each MR, based on priority needs.

c) Draw up a development plan for each MR

d) Give regular feedback on progress and immediate corrective measures as needed.

4. Require MRs to monitor Rx thru drugstores and pharmacy calls

a) Coordinate closely with distributor salesman

b) Conduct regular Rx survey

c) Ensure availability of products in drugstores and hospital pharmacies and inclusion in

hospital formularies.

5. Monitor and control expenses

a) Use samples; based on MD specialty, type of patients, potential

b) Review out-of-base coverage and evaluate potential vs. Cost

c) Prioritize car repairs and maitenance based on necessity, safety and urgency

d) Screen/limit entertainment/donations

6. Update Master Call List

a) Eliminate non-productive customers

b) Identify top 20% that make the 80% of business and concentrate time and resources
on them

c) Gather data on users of competitive products and identify potential converts

d) Draw up POA to convert target MDs / oulets.

66
 67

DISTRICT MANAGERS ESSENTIALS 2 Strategy for Customer Retention

Objective of the topic

As a result of actively participating in this topic, participants are able to:

 Apply customer retention strategies and tactics;

 Review and revise their customer call list, and prioritize customers based on value potential;

 Building lasting relationships with valuable customers and key accounts.

BUSINESS EXISTS

● To acquire customers

● To keep customers

● To grow customers

● To eliminate customer

THE GOAL OF MARKETING IS TO OWN THE MARKET

District Managers using a market-creating strategy think like entrepreneurs. They break new
ground and take risk.
 68

The way to achieve superior market position is to build lasting relationships with customers
based on trust, responsiveness and quality

Marketing in fast-changing industries requires constant monitoring and tacking of the business
environment and adjusting and altering course as needed.

AREAS OF CONTROL:

● Product Movement

● Technology

● Financial Resources

● Timing

● Service and support

● People

● Strategic Customer Relations

● Market Infrastructure

● Competition

● Social Trends

4-STEP DEVELOPMENT OF CUSTOMER RETENTION PROGRAM

● Measure customer retention

● Interview former customers

● Analyze complaints and service data

● Identify switching barriers

DEVELOPING A CUSTOMER RETENTION PROGRAM

MEASURE CUSTOMER RETENTION

Without measurement, customer retention will not be managed.

4 WAYS OF MEASURING CUSTOMER RETENTION

1. Crude retention rate measures the absolute percentage of customers that are retained. The
crude rate treats every customer as equivalent
 69

Example: If the number of customers drops from 200 to 190, the crude retention rate is 95%.
The defection rate is 5%. Formula: 190/200 = 95%

2. Weighted retention rate weighs customers by the amount they buy

Example: If the 10 defending customer had unit purchases that were double the average of
200, the weighted retention rate is 90%.

Formula: Assume that the average unit purchase of the 200 customers is 500 each, and
the average unit purchase of the 10 defecting customers is 1,000 each.

200 x 500 = 1,000,000 units

10 x 100,000 = 10% defection rate

3. Customer penetration index. If customers source form multiple suppliers/providers/vendor, a

customer penetration index must be calculated by evaluating whether sales to retained
customers are growing as fast as (or faster or slower than) market unit sales. The difference
reflects changes in customer penetration.

CUSTOMER PENETRATION INDEX

Example: If your market grew by 10% and your sales grew by 50%, your penetration index is
26%:

2008 Sales SHARE 2009 SHARE Growth

Sales
Total Market Share
100,000 100% 110,000 100% +10%
Your Sales
5,000 5% 7,500 6.8% +50%

5,000 4.5% -20%

4,000 3.6% -38%

* In units

Formula: 6.8% / 5.0% = 36% - 10% = 26%

Formula:

Step 1. Divide your Current Sales (7,500) by Total Market (110,000) = % of Market Share =
6.8%
 70

Step 2. Divide your Market Share (6.8%) by your Previous Year’s Market Share (5.0%) =
36%

Step 3. Deduct 10% market Growth over Previous Year (110,000 / 100,000) from your 36%
Market Share Growth = 26% Penetration Index

4. Acceptable target turnover rates should be set evaluating market performance.

In the absence of clearly defined limits on customer turnover, true market performance
may be masked by increased recruitment of new customers.

Example:

A B C

Customer Base 100 100 100

New Customers 10 10 10

Total Customers 110 110 110

Less: Lost Customer 10 5 0

Net Increase 0 5 10

0 +5% 10%

INTERVIEW FORMER CUSTOMERS

6 TYPES OF DEFECTORS

1. Price defectors switch to a lower-priced competition

2. Product defectors switch to a competitor that offers a superior product

3. Service defector switch because of poor service

4. Market defectors are lost because they go out

5. Technological defectors convert to products offered by the companies from outside the
industry. (ex. Electronic health devices, acupuncture).

6. Organizational defectors are lost because of internal or external political considerations.

 71

ANALYZE COMPLAINTS AND SERVICE DATA

1. Complaint data provide a rich source of information to understand why customers defect.

a) For every customer who complains there are probably 10 others who do not voice out
their complaints. And dissatisfied customers talk to other potential customers about
their bad experience.

b) Listening and acting on their complaint can help retain not only customers who
complain, but also those who do not complain.

2. Service data can help understand why customers defect. Receiving the same service
problems suggest a systematic cause.

a) The person who needs service s a customer with standard and a problem that
demands attention.

3. Customer feedback, thru after sales follow up calls or feedback questionnaire forms, can
serve as early devices for surfacing potential problems or complaints to enable the
company to implement corrective action even before the complaint is lodged.

IDENTFYING SWITCHING BARRIERS

1. Strategic bundling is offering a group of products/services as a single cost-saving and

convenient package (one-stop).

2. Team account management is an all hands on approach whereby all levels - from top
management to rank - and - file in the organization are involved. The team approach is used to
forge a bond customer that lasts no matter which person in the sales force is the key contact in
the relationship.

As a customers retention goes up, marketing costs go down and profits goes up.

Loyal customers frequently bring new business

- from themselves

- from other thru referrals

4 - STEP IMPLENTATION OF RELATIONSHIP MARKETING

 Identify the customers

 Differentiate customers

 Interact with customers

 72

 Customize product / service delivery

4 - STEP IMPLEMENTATION OF REALTIONSHIP

→ IDENTIFY THE CUSTOMERS

1. Identify and build strong relationships with internal customers with whom you interact closely
and frequently.

2. Classify external customers according to actual and potential value.

3. Develop method for calculating the Life Time Value (LTV) of customers.

4. List down and prioritize target customers for each territory.

5. Identify top 20% customers in the District that generate 80% of sales and pinpoint
responsible person for each target customer within the District.

6. Review and update Master Call List: MDs, H, I, DS, etc. Yearly.

(Note: customers not covered also be included in the review.

7. Develop district and territorial data base.

→ DIFFERENTIATE CUSTOMERS

1. Classify MDs by specialty and type of practice, types and volume of patients treated,
prescribing habit.

2. Develop individual customer profile. (Decision-makers, key contacts, ordering patterns,

paying habits)

3. Categorize customer outlets: hospitals, industrial, drugstores, government.

4. Identify specific customer needs/idiosyncracies.

5. Build up customer information system on a continuing basis.

6. Train the field force how to gather information and classify doctors/customers according to
potential.

2 MOST BEAUTIFUL WAYS OF DIFFERENTIATING CUSTOMERS

● NEEDS - Customers have different needs.

Satisfying a customer’s needs represents the key to keeping and growing that customer.

● VALUE - Customers have the different values.

 73

The value of the customer determines how much time and investment should be allocated t that
customer.

→ INTERACT WITH CUSTOMERS

1. Develop specific programs / action plans for each target customers

2. Identify target products per MD and customer group or hospital

3. Determine appropriate frequency of calls or customer contact.

4. Sustain customer contact thru the use of different media (cellphone, email, facebook,
personal contact)

5. Organize cross-functional team to respond to customer needs and facilitate service delivery.
Yh

6. Coordinate closely with distributor to enhance customer service delivery.

7. Involve all levels of management and the different functions in strengthening customer
relations.

8. Monitor and evaluate results of relationship marketing initiatives.

9. Provide recognition and reward to employees who excel in customer service.

→ CUSOMIZE PRODUCT / SERVICE DELIVERY

1. Develop customer feedback mechanism.

2. Institute continuous improvement program in service delivery and customer satisfaction.

3. Implement employee suggestion program to encourage involvement.

4. Identify opportunities for partnerships with MDs / Medical Societies/ Medical Schools /
Customer thru CME programs.

5. Establish strong personal relations with top MDs / supporters at different levels
(MR,DM,RSM,NSM,PM,SMD,MD,GM).

6. Identify and develop ways of personalizing service delivery and strengthening personal
relationships.

VALUE IS CREATED whenever the conversation or interaction between the customer and the
company results in something beneficial to either or both.

10 ELEMENTS OF SUCCESSFUL CUSTOMER RELATIONSHIP

 74

● Customer Knowledge

● Sales Effectiveness

● Customer retention

● Customer segmentation

● Product presentation

● Customer fulfillment

● Customer Acquisition

● Channel Management

● Marketing Intelligence

● Campaign Management
 75

DISTRICT MANAGERS ESSENTIALS 2 Strategy for Developing Entrepreneurial Mindset

OBJECTIVE OF THE TOPIC

As a result of actively participating in this topic, participants are able to:

● Assess: what Personal Entrepreneurial Competencies (PEC) they have and what needs
improvement;

● Discuss how to develop an entrepreneurial mindset

● Contribute to their district’s productivity through their enlarge entrepreneurial perspective or

“sight”.
 76

DEVELOPING YOUR PERSONAL ENTREPRENEURIAL COMPETENCIES (PEC)

Actively Seek Opportunities

Practical Definition:

- Looks at a situation and thinks: “What’s in here than can be turned into a business.”

- If already in the business, asks: “What’s in here that will be good for my business or will
improve it?”

Formal Definition:

- Opportunity-seeking is actively looking and going after ideas which can be turned into
opportunities.

Why is opportunity-seeing important?

1. If you actively seek opportunities, you will customers or markets where other people find
none.

2. If you actively seek opportunities, you will find new uses for old products, including waste
products.

3. If you actively seek opportunities, you will find new ways of dong thing.

4. If you actively seek opportunities, you will find new products fir old markets or customers.

Practice Persistence

Practical Definition:

- “If at first you don’t succeed, try and try again”

- Refusing to be discouraged even after failing.

Formal Definition

- Persistence is trying to do something even if other people say you are likely to fail.

- It means not being afraid of hard work.

 77

- It also means not being afraid to fail because - you can try again.

How to develop persistence:

1. Don’t give in quickly when someone disagree with you.

- If you are sure of your stand, don’t give in to what the other person says without
thinking about it. This is a test of persistence.

- If you persist in doing the right thing, the other person will respect you.

2. If you get angry at someone who stubbornly disagrees with you, your persistence will
wear-off quickly because you will be concentrating on your anger.

- If you stay cool and composed, you will be persuasive, convincing and credible.

3. Face the opposition squarely and openly

- Avoid “behind the back” tactics.

- Don’t criticize or badmouth the opposition in their absence.

- This is not the weapon of one who is negotiating with confidence.

- A truly persistent person will be strong enough to change what needs to be changed and
do what needs to be done even if others disapprove.

Be Committed To What You Set Out To Do

Practical Definition:

- Making promises you can keep.

- Meeting deadlines

- Starting work with enthusiasm and then persevering until it is done.

Formal Definition:

- Deliberately persisting at something

How to build up your commitment:

1. Have strength of character.

 78

- Entrepreneurs have “palabra de honor””

- Their word is honor, come what may.

- Neither storm or fire or sickness will keep them from honoring their word.

- These strong people will not make “lusot” or alibi.

- If they fail to keep their word, they admit it as their mistake or shortcoming.

2. Make only promises you can keep.

- Think carefully before saying “Yes, I will deliver the goods at the end of the month.”

- If you of something that will prevent you from keeping this deadline, say so immediately.

- You might find out that there may not be next time if you are dishonest.

- Remember, customers can always take their business elsewhere.

3. Know what to do when you cannot keep a promise.

- Be able to explain for the times that you cannot keep the promise because something
unexpected happens or when you realize that it is unwise to keep your promise.

- be honest but tactful.

4. Cultivate the trust of others.

- The ways to win the trust of others are: keeping promises, giving honest explanations for
broken promises, dealing with people fairly and justly.

- Once trust is broken it is very hard to repair it.

- Trust is at the root of good customer relationships.

5. Clarify expectations

- Keeping people’s trust includes talking about what can and can’t be done so that
expectations are laid on the table before any promises are made.

- The promise you make must be based on what is reasonable for all people concerned.

- These should be clarified before decisions are made about services and products are
delivered.

6. Apologize sincerely.

- Apologize sincerely when you cannot deliver what you promised.

- Be sure that you have made your side understood completely so that no doubts remain.

- Remember, don’t try to make alibis or false excuses.

- Your customers will appreciate your honesty in the long run.

 79

Set High Standards of Quality and Efficiency

Practical Definition

- Lifting out something from commonplace

Formal Definition

- Making sure that the products and services one sells are of good quality.

- Putting your personal trademark of excellence on your outputs.

What are the behaviors that can help you achieve quality and efficiency in business and other
aspects of your life:

1. Consistency is important.

- Don’t turn out superior output today and wishy-washy products tomorrow.

- Your quality must be steady ad reliable.

- Consistency will give you the competitive edge.

2. A neglected and dissatisfied customer might never return.

- Worse, he might spread the word around regarding your lousy product or service.

- Be careful even if you are dealing with only one customer.

3. Devotion to quality and efficiency must become a way of life for you.

- Commit yourself to quality in business and in your personal life.

- This way, being efficient and quality-conscious becomes “second nature” to you.

4. Use appropriate technology to help you.

- This includes new machines, new processes, new skills.

- Don’t persist on doing things the old way if this is no longer efficient.

- New technology may initially cost money but may be economical for your business in the
long run.
 80

Take Moderate Risks

Practical Definition:

- Controlling the risk

Formal Definition

- Calculating the risk is checking if you will make or lose money in the process of doing
business.

What must one do to be a moderate risk taker:

1. Assess the situation carefully.

2. Find out if your actions will have negative side-effects

- a moderate risk taker must be prepared to cope with these possibilities.

3. Ask for advise from knowledgeable people to ensure success.

4. Plan for contingencies.

- Be ready for unforeseen events, such as: prolonged bad weather, disease and epidemic
which might endanger your stocks.

- Success in risk taking is to be well-prepared for all eventualities.

Set Clear Realistic Goals

What must we remember in setting in setting goals:

≈ Be realistic

- Know your strength and weaknesses as well as the support and obstacles present in your
environment.

≈ Be self-reliant

- Do not aim for something which depends on many other people and circumstances for its
attainment.

≈ Select those goals which are important to you and which allow you to perform your best.

≈ Focus on positive objectives.

 81

- In other words, try to think of goals which will make you become, do or attain something
rather than those which call for you to stop or avoid doing things.

- When you want to reform yourself, think of an alternative positive goal which is important
to you and whose attainment will mean the elimination of the desirable habit.

- Example: If you want to lose 5 lbs (a negative goal), FOCUS INSTEAD on the positive
goal of being able to wear a Size 10 pair of pants.

- Gather as much information as you can on the goals which you set.

- Try to set both long and short-term goals for yourself.

- The goals you set have to be regularly reviewed and modified.

Seek Information

Why is knowledge or information power:

- You need information to deeply know business ideas and opportunities.

- You need information to determine whether your idea will be profitable or not.

- Information will reveal to you who will buy your products and at what price.

- You need information in order to find out about your competitors and how you can compete
with them in the marketplace.

- You need information about sources of assistance you might need.

Where do you get information:

- An important source is your own experiences and observation.

- Seek information also from the outside, namely: formal (newspapers, radio and TV, surveys,
conferences, researches, etc.)

- Informal sources, namely: the grapevine, conversations with other entrepreneurial people,
inquiries with suppliers, telephone calls, etc.)

- Joining chambers and councils where they get to exchange experiences and know-how with
other like-minded individuals.

- Sign up for seminars and courses.

 82

- Talk with relatives and friends who are familiar with your business.

- Ask questions.

- Develop curiosity to know more about the business.

- The best way to gather information is to take on apprenticeship work, even if unpaid.

Plan Systematically

Formal Definition:

- Thinking of many small activities you will have to carry out to accomplish bigger or more
complicated ones.

- Putting these individual activities in proper or logical order so that in the end you can see your
accomplishments.

What are the important parts of planning:

1. Scheduling which allows you to arrange your activities way ahead of time, not when you
urgently need to do them.

- This helps you avoid stress.

2. Monitoring which involves looking at what parts of the plan have been done and what have
not been done.

- Monitoring also asks for the reasons why the plans have not been followed and what
alternatives are available if the plan proves to be difficult to follow.

Be Persuasive

Persistence vs. Persuasiveness:

- When one is persistent enough, one can make others do what you want them to do.

- When one is persuasive enough, one can make others want to do what you want them to do.

How to develop persuasiveness (according to Burton Kaplan):

1. To win people over completely, you must appeal to these two levels - their heart as well as
their mind.
 83

2. Present your idea in a way that is logical to the other person’s point of view.

- Start by pointing out the benefit that they will enjoy related to their need, problem, desire,
value or difficulty.

- End with a specific reference to your product, service or idea in ways that will provide
them satisfaction or answer.

- Example of START: “I understand you are concerned about…”

- Example of an ENDING: “We can do the job faster than… and “You get the best of both
win…”

3. Ask questions that will give you more information about their needs.

- Examples: “Is cost the reason you say that…”and “Can you tell me what you are looking
for?”

- People have certain needs and desires that you could find out and possibly satisfy.

- Example: to save money; to achieve fame; to gain respect and admiration; to get or stay
healthy.

4. Agree with their remark and building on it to push your product, services or idea.

- Examples: “I agree. Decreasing gasoline allowance by 20% is too much. That is why we
have devised a car pooling plan.” and “”I see your point. Soft gel type capsules melt even after
only ten minutes being left in your car. That’s why we’ll be providing each sales agent a portable
and compact ice box that will fit in the compartment of your car.”

5. Close the deal by assuming the sale has been completed.

- To do this, you act and speak like there is already a mutual agreement arrived at.

- You may say, “I’ll prepare the order form now. When do you want the item delivered?”

Important matter related to persuasiveness:

- Networking or linking, either formally or informally, with others and offices will help you
succeed.

- To establish linkages one has to do the following: get out of your backyard; attend gatherings
and meetings; join clubs; stay after church services; attend reunions and seminars; talk with
other parents during PTA’s.

- Then follow up these new connections through phone calls and invite them to your own
parties.
 84

Believe In Yourself

Details about self-confidence:

- Entrepreneurs are rather self-confidence people.

- They believe they can achieve their goals.

- It starts with their faith in the self.

- Then things indeed happen but only after one recognizes they can do it and nobody else.

How to develop self-confidence:

- Know as much of yourself as you can.

● What are your strengths?

● … your weaknesses

● Take time out to reflect about this knowledge

- Look at your qualities in a realistic manner.

● Don’t underestimate nor exaggerate your talents and abilities.

● Compare your ideas with what others say about you.

● Talk to your family and friends to know what they think of you.

● If possible, get to know why some people avoid making friends with you or working with
you.

- Emphasize your strengths and play down your weaknesses by choosing activities and goals
where you do best.

● You can select projects which allows you freedom to express yourself more creatively.

● Harness your capacities as much as you can.

- Take care of yourself physically to look good to yourself and others.

● If you look good, you will feel good about yourself.

● This will translate as confidence as you move around and pursue your goals.
 85

PERSONAL ENTREPRENEURIAL COMPETENCIES (PEC)

Self-Rating Questionnaire

Instruction

1. This questionnaire consists of 55 brief statements. Read each statement and

decide how well it describes you. Be honest about yourself. Remember, no one
does everything very well.

2. Select one of the numbers to indicate how well the statement describes you:
 86

5 = Always
4 = Usually
3 = Sometimes
2 = Rarely
1 = Never

3. Write the number you selected on the line to the right of each statement.
Here is an example:

I remain calm in stressful situation. 2

The person who responded on the item above wrote a “2” indicating that the
statement described him very little.

4. Some statements may be similar but no two statements are exactly alike.

5. Please answer all questions.

____

* Adapted from Management Systems International (MSI) and McBer and

Company: Entrepreneurship Workshop
 87

1. I look for things that need to be done. ______

2. When faced with a difficult problem, I spend a lot of time trying to find

a solution ______

3. I complete my work on time ______

4. It bothers me when things are not done very well ______

5. I prefer situations in which I can control the outcomes as much as

Possible ______

6. I like to think about the future ______

7. When starting a new task or project, I gather a great deal of

Information before going ahead ______

8. I plan a large project by breaking it down into smaller tasks ______

9. I get others to support my recommendations. ______

10. I feel confident that I will succeed at whatever I try to do. ______

11. No matter whom I’m talking to, I’m a good listener. ______
 88

12. I do things that need to be done before being asked by others. ______

13. I try several times to get people to do what I would like them to do, ______

14. I keep the promises I make. ______

15. My own work is better that that of other people I work with. ______

16. I don’t try something new without making sure I will succeed. ______

17. It’s a waste of time to worry about what to do with your life. ______

18. I seek the advise of people who know a lot about the tasks I am

Working on. ______

19. I think about the advantages and disadvantages or different ways

Of accomplishing things. ______

20. I do not spend much time thinking how to influence others, ______

21. I change my mind if others disagree strongly with me. ______

22. I feel resentful when I don’t get my way. ______

23. I like challenges and new opportunities. ______

24. When something gets in the way of what I am trying to do, keep on

Trying to accomplish what I want. ______

25. I am happy to do someone else’s work, if necessary, to get the job

Done on time. ______

26. It bothers me when my time of wasted. ______

 89

27. I weigh my chances of succeeding or failing before I decide to do something _____

28. The more specific I can be about what I want out of my life, the

More chance I have to succeed. ______

29. I take action without wasting time gathering information. ______

30. I try to think of all the problems I may encounter and plan what

to do if each problem occurs. ______

31. I get important people to help me accomplish my goals. ______

32. When trying something difficult or challenging, I feel confident

That I will succeed. ______

33. In the past, I have had failures. ______

34. I prefer activities that I know well and with which I am comfortable ______

35. When faced with a major difficulty, I quickly go on to other things. ______

36. When I am doing a job for someone, I make a special effort to make

Sure that person is happy with my work. ______

37. I’m never entirely happy with the way in which things are done;

I always think there must be a better way. ______

38. I do things that are risky. ______

39. I have a clear plan for my life. ______

40. When working on a project for someone, I ask many questions

To be sure I understand what that person wants. ______

41. I deal with problems as they arise, rather than spend time trying
 90

To anticipate them. ______

42. In order to reach my goals, I think of solutions that benefit everyone

Involved in a problem. ______

43. I do every good work. ______

44. There have been occasions when I took advantage of someone. ______

45. I try things that are very new and different from what I have done

Before. ______

46. I try several ways to overcome things that get in the way of reaching

My goals. ______

47. My family and personal life are more important to me than work

Deadlines I set from myself. ______

48. I find ways to complete tasks faster at work and at home. ______

49. I do things that others consider risky. ______

50. I am as concerned about meeting my weekly goals as I am for my

Yearly goals. ______

51. I go to several sources to get information to get help with tasks

Or projects. ______

52. If one approach to a problem does not work, I think of another

Approach. ______

53. I am able to get people who have strong opinions or ideas to

Change their minds. ______

54. I stick with my decisions even if others disagree strongly with me ______
 91

55. When I don’t know something, I don’t mind admitting it. ______

How to Score:

Now, let’s see how well you performed in the PECs Self-Rating Questionnaire.

1. Using the table below, do the following:

A. Enter the ratings form the completed questionnaire on the lines above the item
numbers in parenthesis.

B. Do the addition and subtraction indicated in each row to compute each PEC score. Note
that the item numbers in the columns are consecutive. Item No. 2 is below No. 1, and so on.

C. Add all the PEC scores to get your total raw score. (For now, disregard the last column
on “correction factor”. You’ll have a chance to work on it later.)

----------------------------------------------

Ratings of statement Score PEC

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Opportunity Seeking

(1) (12) (23) (34) (45)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Persistence

(2) (13) (24) (35) (46)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Commitment to work contract

(3) (14) (25) (36) (47)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Demand for Quality / Efficiency

(4) (15) (26) (37) (48)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Risk Taking

(5) (16) (27) (38) (49)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Goal Setting

 92

(6) (17) (28) (39) (50)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Information Seeking

(7) (18) (29) (40) (51)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Systematic planning/ monitoring

(8) (19) (30) (41) (52)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Persuasion and networking

(9) (20) (31) (42) (53)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Self-confidence

(10) (21) (32) (43) (54)

------- + ------- + -------- + --------- + --------- + 6 = -------------------- Correction Factor

(11) (22) (33) (44) (55)

Here’s the profile chart to use (For an example of an accomplished profile chart, see the sample
given on the next page.)

Opportunity Seeking

Persistence

Commitment to the work

contract

Demand for quality and

efficiency

Risk taking

Goal Setting

Information Seeking

Systematic planning and

monitoring

Persuasion and Networking

Self-confidence

0 5 10 15 20 25
 93

Sample PEC Profile Sheet

Opportunity Seeking

Persistence

Commitment to the work

contract

Demand for quality and

efficiency

Risk taking

Goal Setting

Information Seeking

Systematic planning and

monitoring

Persuasion and Networking

Self-confidence

0 5 10 15 20 25

Now that you have completed your rating table, you may now go on to the next step.

1. Get your net score by subtracting the correction factor from your total raw score. The
correction factor is used to determine whether or not a person tries to present a very favorable
image of herself. If the total score on this factor is 20 or greater, then the total scores on the
PECs must be corrected to provide a more accurate assessment of the strength of the PEC
scores for that individual. Follow the steps below.

A. Go to the last column of the ratings table on page 5. Total your score in items
11,22,33,44,55. The sum you will get is the correction factor score.

B. Now that you have the correction factor score, use the following guide in figuring how
much to subtract fro our raw score. Encircle or highlight the numbers that correspond to your
score.

If the correction Subtract the following number from

Factor score is: each PEC score

24 or 25 7

22 or 23 5

20 or 21 3
 94

19 or less 0

2. Now, you can correct your raw scores in each PEC, use the following table while referring to
the original ratings table.

3. Get your PEC profile by transferring the corrected PEC score to the profile sheet below.
Using the profile sheet on the next page, follow the steps below:

a. Mark an “X” at the appropriate point on the horizontal line for each PEC.

If the score for Opportunity Seeking is 17, it will appear as follows:

Opportunity Seeking: _____ : ______ : ______ : x___ : ______ :

0 5 10 15 20 25

b. Draw a heavy vertical line connecting the X’s for each PEC and you have constructed
your PEC profile.
95