Overview of an Effective Framework

The use of a disciplined and consistent Business Planning and Resource Allocation Framework will provide field employees with a step-by-step process that requires both top-down and bottom-up communication and alignment. To do so, employees at each level of the organization must fulfill their respective leadership roles. Senior leaders must set and communicate a clear vision and direction; sales leaders need to translate these goals and provide clear direction on strategic imperatives; sales managers need to create plans aligned with broader goals while also making appropriate adjustments for local market opportunities, customer variables, and human capital assets; and sales reps must leverage their understanding of individual customers and their unique needs to develop an aligned business plan that achieves targeted performance and business objectives. Throughout the process, everyone in the organization is responsible for ensuring alignment and providing the appropriate feedback that reflects their understanding of market conditions and customer needs.

The framework has four phases: two that the sales manager completes and two that the sales representative completes with manager support and direction. Each phase has specific steps and questions to consider, and pharmaceutical companies could easily customize the process to incorporate specific databases and financial reports. Business plan templates are used to capture the overall assessment, outline action plans with milestones and metrics, and list resources required. These action plans become the roadmap for creating specific monthly, weekly, and even daily plans that "operationalize" the broader strategy.

Additionally, the sales manager should ask questions to encourage an evidence-based analysis of what drives sales performance: Is there variation in growth across the territories? What factors contributed to the district meeting, exceeding, or falling short of performance goals? Equally important is analysis of resource allocation decisions. What type of investments yielded the greatest results? What are the financial implications of operational decisions? How can costs be reduced to increase profitability?

The sales manager has to not only engage in a thorough assessment of sales history, but also review both team and individual performances against business goals. Any district plan must include specific objectives related to improving representatives' knowledge, skills, and ability to achieve results.

2. Develop a district plan with resource allocations in alignment with the business strategy. During this phase, sales managers identify a few critical priorities and establish district performance targets by territory or brand. This is also the time to assess how to best allocate the district's entire array of resources. A district manager's area plan should not treat all territories as equal; growth targets and resource allocation must be proportional to sales history—and, more importantly, sales opportunities.

3. Develop territory action plans aligned with strategy and goals. This phase requires partnership between district managers and their direct reports. Sales representatives need to:
» Assess territory sales history, review account performance, and identify targets
»Establish milestones and timing as appropriate for business
»Determine the necessary level of collaboration, coordination, and communication among team members to execute the plan
» Consider, apply, and deploy the resource mix (rep involvement, sales leadership, samples, marketing sponsored programs, etc.) when developing strategies and tactics
» Explain how to evaluate progress.

Once again, specific questions and considerations must be provided to guide assessment and development of each representative's business plan. Such templates allow a consistent and disciplined method for recording and evaluating plans. The sales manager is expected to provide coaching and support to create the plan. More importantly, the business plan becomes the roadmap for execution throughout the year.

4. Execute, monitor, and recalibrate plans. This phase shows that the process is ongoing and that a high level of interaction between the sales manager and direct reports is required to monitor established objectives. Additionally, the use of pre-scheduled business review meetings throughout the year allows for transparent assessment of what is expected and what has been achieved.

Dialogue keeps sales managers and representatives engaged in the ongoing review of the "territory as a business." The use of dashboard and other designated reports is critical to determining whether adjustments are needed based on marketplace forces, lessons learned, and shifting priorities. The end result is that each representative can translate broader objectives into specific monthly, weekly, and daily call plans and activities.

Implementation Roadmap

A Business Planning and Resource Allocation Framework will not achieve desired results on its own. The commitment to planning must also include:
» Assessment of the current level and quality of business planning
» Commitment from senior leaders for a Business Planning and Resource Allocation Framework
» Communication of expectations for using a consistent process
» Specific skill-building efforts to develop managers' business acumen, financial analysis, strategic thinking, and decision-making capabilities.
» Guidance on how to leverage the CRM and reports in an evidence-based manner
» Insurance that processes are in place for monitoring, evaluating, and recalibrating plans throughout the year

Additionally, tools need to be developed for sales managers to provide ongoing coaching to achieve execution excellence. To sustain and improve planning processes from year to year, it will be important to ask the right questions. Were plans put in place that yielded the desired results? Could the overall planning process be improved? Is there a consistent and disciplined process in place to support management review and oversight?

Taking the time to clarify, review, and communicate a planning process can help pharma field organizations prepare for and adapt to the changing healthcare environment. But improving business planning skills and effectiveness will require an organized rollout plan that focuses on skill development and coaching.

Wendy L. Heckelman is president of WLH Consulting. She can be reached at wendy@wlhconsulting.com

Sheryl M. Unger, senior consultant for WLH Consulting, contributed to this article.