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.
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