Thursday, May 3, 2012

Survival in this economy ~ Some Ideas!

I felt that I needed to update this post with a pie chart that appeared this morning on CNN.  The chart below reflects the fact that a staggering 86,000,000 were not counted in the unemployment figures.  This chart breaks this down by age.  We need to do something to reverse these mis-fortunes!

The latest government unemployment and jobs numbers may be tainted!  This was the news late in the day on the CNN Wednesday, May 2.  "Glad that someone is looking at these numbers because anyone who has been out of work for a while can certainly attest to it!"
Over the past several years, the economy has caused drastic reductions in the workforce.  Despite the fact that unemployment numbers appear to be dropping, it may be that those individuals who have been out of work for extended periods of time have just dropped out of the census. New jobless claims have not changed much and we continue to hear of companies who are proposing layoffs and are dramatically restructuring their organizations. 
The Pharmaceutical Industry is one of many that have been affected heavily in terms of job loss. R&D, Marketing, Training and Sales Departments have undergone massive changes.  I have been a part of that change surviving numerous restructures but also being affected twice in the past 34 years.  In February 2012, one of the largest Pharmaceutical companies in the world cut 13,000, another shed 7,300.  A total of 300,000 sales positions have been eliminated in this industry alone according to data compiled by consulting firm, Challenger, Gray and Christmas in the past 10 years.  These positions vanished and have not been replaced.  The growing trend in pharmaceuticals is generics as more and more brand medications lose patent protection.  In addition, the cuts in R&D have cut deeply into the research that is required for new breakthroughs in medications.  I do not have an answer for the Rx industry but have some ideas on what can be done to help others wade through the continuing downturn that we have faced the last couple of years.
A possible solution to this downward trend in sales force manpower is to adopt the model that has been employed by most Small to Mid-Size companies.  These companies rely heavily on the professionalism and skill sets of the sales organization.  These businesses have thrived without having major employee reorganizations. The industry is heavily impacted by patents, competition, insurance coverage and regulatory issues.  To be viable in the markets, it is important for companies to exercise caution in expansion plans and processes.  Below are some thoughts on this.  I believe that these suggestions can have a bearing to ALL industries.
Energize your sales people by personal accountability ~ Minimize or refrain from having pods or multiple salespeople calling on same customers. Help to create ownership at every level of the sales organization.
Avoid bean-counting ~ Don’t focus too much on metrics without looking at results.  Utilize the data available to better target your focus!  Refrain from calling on everyone and using such terms” as breadth & Range of coverage”.  Use the 80-20 rule for results.  Focus for on depth rather than breadth of coverage as long as it is on the targeted customer.
Knowledge is power but APPLIED Knowledge equals success ~ Take the necessary time to train and develop skill sets. Both field personnel and management need skill refinement and replenishment.  Initial training needs to be followed up with regular updates and one or two day meetings that have specific purposes.  Managers of sales people NEED to be in the selling arena.  They cannot coach and suggest adequate development without being in the field with their sales people.
First Line Sales Management is KEY ~ The most important level of management by far is the first line manager.  This person is the company to the sales organization.  Make sure that you hire and develop these people to help ensure success.  If you would like, there are several posts that I have completed on management development including:

Avoid Micro-management
~ The pharmaceutical industry may be the initiator of the term “MM”.  This may be due to the extra precautions that needs to be employed in this highly regulated industry, however limit the focus and monitoring to those things that are essential for the company to succeed.  "MM" can happen in any industry with poorly formed management.  If these managers want to "be in the know on everything" perhaps they need a different position.  There is no problem in monitoring activities but you may want to review a post that I did a few months ago on this subject.

http://amgtconsulting.blogspot.com/2012/03/micro-management.html

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