Improving RM effectiveness - Pharmaceutical Representative
Pharmaceutical Representative March 2010 issue cover

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Improving RM effectiveness
Implications for regional and district managers


Pharmaceutical Representative

Are you a district manager who hopes to become a regional manager? Or a regional manager who wants to be more effective? Read on to find out what can make regional managers more effective and what you can do today to prepare for the role.

Regional managers -- who for the purposes of this article are defined as individuals who manage frontline sales managers within a defined geography -- once controlled their regions? destiny through their leadership of sales force execution. Today, regional managers face myriad external factors -- such as re-importation, Medicaid and managed care, to name a few -- that can both help and hinder their success.
Some regional managers are more effective than others. These managers:

* Consistently exceed regional sales goals.
* Have a high proportion of their districts meet or exceed sales goals.
* Successfully manage people -- promote more managers and representatives, and have lower turnover.

This year, Lambertville, NJ-based Health Strategies Group interviewed 126 regional managers from 12 companies to identify and measure the skills, experiences and perspectives that distinguish effective regional managers. Only 18% of those interviewed met the above definition of an effective regional manager. The study revealed demonstrable differences between average and outstanding regional managers in the ways they lead their regions. Effective regional managers:

* Approach their regions as "business owners" who are accountable for the regions' success or failure.

* Understand and make use of drivers of regional business through better analysis, planning and engagement of regionally based partners (such as managed care, human resources and government affairs).

* Empower and equip their district manager teams to achieve business objectives.

These behaviors arise from effective regional managers' belief that their role is to identify which tactics within their own region will drive sales results.

What you can apply to your region 

The Health Strategies Group study found that effective regional managers consider execution, accountability and setting priorities to be the three keys to success, and this affects everything they do, from the communications they send to how they spend their time.

Effective regional managers consistently use the following management tactics to ensure that everyone understands the region's priorities and their role in achieving goals:

1. Identifying the key drivers of success to set the region's priorities.
2. Communicating frequently with their teams to ensure alignment of objectives and to reinforce expectations.
3. Inspecting the details of what is happening in their regions, with special attention to the priorities they have identified.
4. Delegating to their district managers the management of day-to-day operations necessary to achieve objectives.

From a district manager's perspective, the best regional managers understand what drives the region's business, use that knowledge to set clear priorities, advocate for the region's business needs throughout the company and provide developmental support to the sales team.

If you're new to the regional manager role, effective regional managers have the following advice for you:

* Understand your team. Spend time with your district managers to understand their needs and challenges.

* Take time to get to know the region's business -- identify key business drivers and set priorities.

* Listen before you act. During your first few months, take time to listen and observe. This will provide you with valuable insight on your region and increase your chances of early success.

* While juggling your new responsibilities, remember to focus on developing your own skills as a regional manager. Find a more experienced and successful regional manager to serve as a mentor. A veteran regional manager can provide real-world insight into how to address the day-to-day challenges of your new role.

How DMs can prepare to be RMs 

The regional manager role builds on the coaching, leadership and business management skills district managers use every day. Regional managers apply those skills on a larger scale to more complex situations. District managers can prepare themselves for the regional manager role by focusing on four career development strategies:

* Gaining a broader company perspective.
* Developing business analysis skills.
* Investing in their leadership skills.
* Excelling in their current role.

Gain a broader company perspective.Effective regional managers have a broad perspective that helps them: They look at how their business fits into the context of company goals, advocate for their regions at company headquarters and identify the implications of industry trends for regional business.

Their previous experience provides a foundation. Effective regional managers typically have held four or more prior positions within the pharmaceutical industry, spend at least 18 months at their current company headquarters and a enjoy a broad network of contacts throughout the company. This foundation, combined with tenure in the regional manager role, greatly increases a regional manager's chances of being effective. As you plan your career, look for opportunities that will help you gain a broader understanding of your company's business and will facilitate relationships with company personnel outside your region.

Develop business analysis skills.Effective regional managers understand how to analyze their business to identify region-specific strategies for achieving sales goals. Start by looking at your district business today. Have you identified the key drivers of success in your district? Do you have an "active" district business plan? Investing in your analytical and planning skills now will help you set district priorities today and prepare you to take on the regional manager role in the future.

Invest in your leadership skills. In the Health Strategies Group survey, 96% of effective regional managers listed leadership as an essential element of success. Your company's management development program is a great place to start developing your leadership skills. However, you should take ownership of your own skill development. Health Strategies Group's recent study on district manager effectiveness identified six techniques managers can use to invest in their own skills. Eighty-seven percent of effective district managers we identified said they consistently use three or more of these tactics

Excel in your current role.Time spent coaching is the best predictor of district sales results. Conduct field visits with your representatives as frequently as you can. Maximize your coaching time by providing developmental feedback to your representatives outside of field visits through voice mail, e-mail, phone calls and in-person meetings (see the Pharmaceutical RepresentativeSeptember 2002 Management Guide for more tips on becoming an effective district manager).

The dynamics of pharmaceutical sales management will continue to challenge regional and district managers' attempts to be effective. Managers today can increase their chances of success by identifying the practices effective managers use and applying these within their own roles.

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Source: Pharmaceutical Representative,
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