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OPTIMIZING THE MANAGED
MARKETS FUNCTION: ROLES,
STRUCTURES, RESOURCES
AND ACTIVITIES
Small and Mid-Sized Companies
Introduction
Research Objective: This benchmarking analysis was
designed to assess the operational performance of
managed ...
Benchmark Class
*Please see the Appendix for a Company Overview of Each Participant
Allocations of Managed Markets Staffing
Resources
Q: Estimate the percentage of staff time dedicated to each sub-function....
5
6 6
8
0
2
4
6
8
10
First Quartile Median Average Third Quartile
Perceived Ideal Ratio of Account
Managers per Area Direc...
Executive Vice
President
VP Managed
Markets
Director
Account Mgmt
Area Director
8 Account
Managers
Area Director
7 Account...
50%
55% 58%
68%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
First Quartile Median Average Third Quartile
% of Compensation Based on
...
Additional Perks for High-Performers Exceeding the
Bonus Cap
Q: Is there some additional incentive for those exceeding bon...
Reporting Relationships for Clinical Specialists
Q: Please select the internal group to which clinical specialists directl...
About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that
conducts work based on the simple yet...
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Optimizing the Managed Markets Function: Roles, Structures, Resources and Activities

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Managed Market’s role within the pharmaceutical industry has increased as the influence of payers is simultaneously increasing. Organizations are now being forced to reassess managed markets resources and market markets structures to optimize these groups and to encourage overall organizational success.

Best Practices, LLC designed this benchmarking study to assess managed markets role within small and mid-cap pharmaceutical companies. The overall goal of this project was to illustrate how to have the most impact within the organization while continuing to operate on lean resource levels.

Read more at: http://www.best-in-class.com/bestp/domrep.nsf/products/optimizing-managed-markets-function-roles-structures-resources-activities?OpenDocument

Published in: Health & Medicine
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Optimizing the Managed Markets Function: Roles, Structures, Resources and Activities

  1. 1. OPTIMIZING THE MANAGED MARKETS FUNCTION: ROLES, STRUCTURES, RESOURCES AND ACTIVITIES Small and Mid-Sized Companies
  2. 2. Introduction Research Objective: This benchmarking analysis was designed to assess the operational performance of managed markets functions within small and mid-cap pharmaceutical companies. The overall goal of this project being to illustrate how to have the most impact within the organization while continuing to operate on lean resource levels. Methodology: Best Practices, LLC engaged 11 commercial leaders from targeted small and mid-cap companies that align well with one another in terms of size, market position and resource levels. These 11 companies completed online surveys, which were used to identify innovative as well as efficient “outliers” that were also engaged in interviews to expand on their survey responses. Topics Covered and Location within Deck: • Budgets and Headcount • Structure • Overview • Org Charts • Compensation • The Clinical Specialist Role • Efficiency and Performance • Appendix • Participating Company Overviews
  3. 3. Benchmark Class *Please see the Appendix for a Company Overview of Each Participant
  4. 4. Allocations of Managed Markets Staffing Resources Q: Estimate the percentage of staff time dedicated to each sub-function. N=10 Account Management, 55% Payer Customer Marketing, 6% Contract Management, 14% Reimbursement, 6% Payer Market Research, 5% HEOR, 1% Clinical Specialists, 4% Pricing, 9% The Average Company Model (based on group average of 35 FTEs, rounded to the nearest .5 FTE) Account Management 19 Pricing 3 Clinical Specialists 1.5 HEOR .5 Payer Market Research 2 Reimbursement 2 Contract Management 5 Payer Customer Marketing 2
  5. 5. 5 6 6 8 0 2 4 6 8 10 First Quartile Median Average Third Quartile Perceived Ideal Ratio of Account Managers per Area Director 3 6 5 8 0 2 4 6 8 10 First Quartile Median Average Third Quartile Current Ratio Account Managers to Area Director Area Director Span of Control Ratios Q: What are the current and ideal ratios of account managers to directors? N=7 When comparing the span of control of area directors to account managers, it is clear that most companies feel they can run leaner than they are currently- with a full additional account manager FTE on average reporting to each area director. Key Takeaway
  6. 6. Executive Vice President VP Managed Markets Director Account Mgmt Area Director 8 Account Managers Area Director 7 Account Managers Area Director 7 Account Managers Director Contract Mgmt/Admin 1 Contracts Staff Company A Managed Markets Model Direct Future
  7. 7. 50% 55% 58% 68% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 First Quartile Median Average Third Quartile % of Compensation Based on MBO (Area Directors) 45% 50% 48% 53% 0.4 0.42 0.44 0.46 0.48 0.5 0.52 0.54 First Quartile Median Average Third Quartile % of Compensation Based on MBO (Account Managers) Percentage of Bonus Structure Tied to MBO and Sales Plan Q: Please describe the percentage of compensation tied to each measurement factor. N=6 All participants noted that bonus targets for area directors and account managers focused on a combination of MBO and sales plan attainment. The weighting of MBO vs. Sales Plan Attainment for account managers was approximately 50/50. For area directors, the weighting shifted closer to an average of 60/40 in favor of MBO. Key Takeaway
  8. 8. Additional Perks for High-Performers Exceeding the Bonus Cap Q: Is there some additional incentive for those exceeding bonus caps? N=7 Yes, 29% No, 71% Close to 30% of participants noted that they do have additional incentives in place for high performers that exceed their bonus cap. Some examples that were referenced include: • President’s Club • Cash Awards • Vacations • Multiples on Earnings Key Takeaway
  9. 9. Reporting Relationships for Clinical Specialists Q: Please select the internal group to which clinical specialists directly report. N=8 Key Takeaway None of the clinical specialists identified as supporting managed markets reported into managed markets. Not having oversight when dealing with clinical specialists can be a big gap for managed markets functions. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Health Outcomes Liaisons Medical Science Liaisons Managed Care Liaisons Managed Markets Sales Medical Affairs/Clinical Health Outcomes
  10. 10. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 www.best-in-class.com

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