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Using Multi-Rater (360) Assessments to
Drive Business Outcomes
Shane Douthitt, Ph.D.
Scott Mondore, Ph.D.
Learning Objectives
• How to use multi-rater assessments for senior
  and front-line leaders
• Key process steps for effective implementation
  of a multi-rater assessment
• How to link competencies to business
  outcomes—Calculate ROI
• Identifying key training needs for the
  organization
• How to drive development at the systemic and
  individual level in your organization
SMD Publications

                                          #3 Bestseller for 2011

                 Published by                                      Published by
                 SHRM (2009)                                             SHRM
                                                                          (2011)




HR People & Strategy has awarded SMD The Walker
Prize for their article on Talent Management Analytics.
“The Walker Prize is given to the article that ‘best
advances state-of-the-art thinking and practices in human
resources.’"
About SMD:
Driving Business Results Through Talent Management
Our Platform
• Implement Talent Management processes based on analytics, linking
  people to critical business outcomes
• Partner with our clients to create and execute people strategies that drive
  business outcomes and maximize ROI
                                       Our Results
                                       • Linkage of Talent Management (e.g., engagement
                                         survey results, training, performance ratings,
                                         competency assessments) to a variety of business
                                         outcomes:
                                          ▫ Operations Metrics (e.g., operating margin)
                                          ▫ Financial Metrics (e.g., sales dollars, productivity)
 Connecting Employees
                                          ▫ Customer Satisfaction
     to Business Results
 •   HR Strategy & Planning               ▫ Turnover/Retention
     Human Capital Measurement
 •
 •   Talent Management
                                          ▫ Employee Safety
 •
 •
     Leadership Development
     Executive Assessment & Coaching
                                       • Significant bottom-line improvements and
 •   Organizational Effectiveness        return-on-investment for our clients.
Presenter Bio
Scott Mondore, Ph.D.
Scott has over 15 years of experience in the areas of strategy, talent management,
measurement, customer experience and organizational development. He has internal and
consulting experience across a variety of industries including transportation, healthcare,
manufacturing, pharmaceuticals, utilities, and hospitality.

Scott is currently a managing partner of Strategic Management Decisions (SMD). Before
SMD, he served as East Region President for Morehead Associates, a healthcare HR
company. Before joining Morehead, Scott worked as a Corporate Strategy Director at Maersk,
Inc. He also worked as an Organizational Effectiveness Leader at UPS, focusing on
employee assessment and measurement as well working as a consultant to large and small
organizations in both the private and public sector.

He is the co-author of “Investing in What Matters: Linking Employees to Business Outcomes”
and has published several articles on various topics, including employee turnover, employee
safety, coaching, litigation and leadership. Scott is also an Adjunct Professor of Psychology at
the University of Georgia, Fairleigh Dickinson University & the University of North Carolina-
Charlotte.

Scott holds a master's degree and doctorate in applied psychology from the
University of Georgia.
Presenter Bio
Shane Douthitt, Ph.D.

Dr. Shane S. Douthitt is a co-founder and managing partner of Strategic Management
Decisions (SMD). He has more than 18 years of experience in the areas of measurement,
talent management, executive assessment and coaching, and organizational development
across a variety of industries. Before SMD, he was the SVP of Sales and Product
Management at Morehead Associates—a healthcare HR consulting company. Before joining
Morehead, Shane worked as a Senior Vice President of Human Resources & Leadership
Development at Bank of America. Shane also worked as a consultant for Towers Perrin and
IBM.

Shane is the co-author of “Investing in What Matters: Linking Employees to Business
Outcomes” (SHRM, 2009) and “Business-Focused HR: 11 Processes to Drive Results”
(SHRM, 2011). In addition, he has published several articles in leading journals on a variety of
topics, including HR strategy, measurement, teams, individual differences and diversity,
employee selection, group dynamics, and careers, and leadership development.

Shane holds a master's degree and doctorate in applied psychology from the University of
Georgia, as well as a master’s degree in industrial/organizational psychology
from the University of Tulsa.
RETHINK Your Approach to HR!
      Make HR a Profit Center
      • Quantify the impact of employees on business outcomes
      • Calculate an expected ROI for investments in employees
      • Define the relationship between HR processes and business outcomes



      Connect Key HR Processes
      • Provide a single, integrated view of key HR processes
      • Reduce your HR related costs through integration and strategic alignment
      • Connect HR processes to business results



      Spend More Time Driving Results
      • Align HR professionals, organizational leaders, & employees to focus on actions
        that drive results
      • Provide customized analytics and simplified reporting through business-focused
        scorecards
Talent Link Key HR Processes

                    Performance                           Examples of
                    Management                         Business Outcomes
                                                      People
        Training                   Selection
                                                      • Turnover
                                                      • Employee engagement
                                                      Service
                                                      • Customer satisfaction
                                                      • Wait times
                                                      Quality
  Career            Business               Employee
Development         Outcomes                Survey    • Clinical outcomes
                                                      • Product Defects
                                                      Finance
                                                      • % to budget
                                                      • Cost reduction
                                                      Growth
       Competency                                     • Sales growth
                                  360 Feedback
         Builder
                                                      • Margin growth
                    Succession
                     Planning
Key HR Processes in One Place
Agenda
• Using Multi-Rater Assessments
• Communicating the advantages of multi-rater
  assessments
• Executing the process
• Linking results to business outcomes
• Comprehensive Case Study
• Driving development and buy-in across the
  organization
• Timing to execute
What Our Clients Are Saying…




“We can’t       “I’ve had        “We don’t        “We say our      “The
make the        trouble in the   have the         people are the   information
business case   past getting     resources for    key but we       can be very
to do it.”      employees to     these types of   don’t invest     insightful.”
                do anything      analytics.”      much in
                with the                          them.”
                results.”
Uses for Multi-Rater Assessments
• Senior Leaders:
  ▫ Common: Individual Development; Senior Team Functioning
  ▫ Cutting Edge: Incorporated into a comprehensive leadership
    development program; linked directly to business outcomes
• Front-line Managers
  ▫ Common: Individual development
  ▫ Cutting Edge: Linked directly to business outcomes &
    performance metrics; training needs assessment
• Front-line Employees
  ▫ Common: not usually done
  ▫ Cutting Edge: customers (external or internal) included in the
    process and linked to performance metrics
Sample Leadership Program Overview
Phase 1                Phase 2                  Phase 3                  Phase 4
Design Program         Assessment &             Group Learning           Coaching
                       Feedback



 •Build leadership      •Kick-off program and    •Execute group           •Provide coaching
  strategy               orient participants      learning sessions        during periodic 1:1
 •Define program        •Participants and         including:               meetings
  objectives and         assessors complete       •Business strategy      •Participants have, as
  create “blueprint”     assessments               and organizational      needed, access to
 •Select and build       • Multi-rater             alignment               coaches throughout
  customized program     • Follow-up              •Effective               the process
  components              Interviews               leadership skills      •Wrap-up program
 •Build customized       •Personality             •Creating an            •Evaluate program
  leadership              Assessment               effective               effectiveness
  assessment process    •Aggregate                 development plan
 •Match & train          assessment data and      •Aggregated
  assessors              produce an overall        assessment results
                         leadership team           and leadership
                         report                    team development
                        •Provide feedback        •Execute learning
                         and build                action team projects
                         development plan         •Observe and
                                                   provide feedback &
                                                   coaching
Advantages of Multi-Rater Feedback


    Accuracy      Face-Validity    Richer Insights




     Open          Practical &     Commitment to
  Communication   Cost-effective    Performance




                         14
Multi-Rater Assessment Process



                             Develop
                                                        Deliver    Conduct
 Define         Define      Tool & Pre-    Launch &
             Competencies                              Reports &   Systemic
Objectives                    Launch      Administer
                                                       Feedback    Analysis
                             Process
Step 1: Define Objectives
• Answer the following questions:
  ▫ What business objectives are we trying to achieve?
  ▫ What business outcomes are we trying to drive?
  ▫ Which employees will participate in the process and
    when?
  ▫ How will reports be delivered and feedback
    facilitated?
  ▫ What competencies/behaviors will be assessed?
  ▫ What role will the managers of participants play?
  ▫ How will raters be selected?
  ▫ How will the overall process be communicated?
Objectives of Multi-Rater Assessment
• Performance feedback from multiple sources to drive
  individual development; Review of changes in
  performance over time for Sales reps who participated
  in 2009.
• Systemic analysis of all assessment data to identify
  macro-level strengths/development needs and adjust
  company-wide training strategy based on results.
• Linkage analysis to reveal the specific competencies,
  skills, and behaviors that directly drive market share
  movement and script writing behavior.
Step 2: Define Competencies

                          Sales Force      Evidence-Based Selling Skills
                         Differentiators   Managed Care Expertise


25 competency items
4 overall ratings               Needed         Relationship Building
1 open-ended item           to be Successful   Advanced-Level Selling Skills
7-point response scale

                                           Product & Disease State Expertise
                          Must have
                                           Account Management
                         to do the Job
                                           Consultative Selling Skills
Selling Skills Assessment Sample Items
Competency              Sample Item

Account Management      Responds with appropriate urgency to requests that require follow up
Advanced-Level          Engages in discussions with healthcare providers that are relevant and
Selling Skills          interactive

Evidence-Based          Easily discusses concerns about bias in XYZ’s clinical studies
Selling Skills          Accurately answers questions about clinical study methodology
Product & Disease       Articulates all potential effects that XYZ can have on patients depending on
State Expertise         therapy paradigm and patient profile
Managed Care
                        Effectively finds solutions to managed care challenges and restrictions
Expertise

Relationship Building   Comfortably builds rapport with healthcare provider’s office staff

Consultative Selling    Asks pertinent and insightful questions during interactions to identify customer
Skills                  needs
Step 3: Develop Tool & Pre-Launch Process
 • Create the on-line survey
 • Provide sufficient communications to key
   stakeholders in advance of the survey launch
 • Effective communications will:
   ▫   Reduce participant anxiety
   ▫   Clearly state the purpose of the process
   ▫   Align the initiative with organizational strategy
   ▫   Improve the response rate
   ▫   Clearly outline project timing
Rating Scales
5-Point Scales                  6-point Scale           7-point Scale
   Agreement:                   Agreement:              Agreement:
0 = Cannot Answer               0 = Cannot Answer       0 = Cannot Answer
1 = Strongly Disagree           1 = Strongly Disagree   1 = Strongly Disagree
2 = Disagree                    2 = Disagree            2 = Disagree
3 = Neither Agree or Disagree   3 = Somewhat Disagree   3 = Somewhat Disagree
4 = Agree                       4 = Somewhat Agree      4 = Neither Agree nor Disagree
5 = Strongly Agree              5 = Agree               5 = Somewhat Agree
                                6 = Strongly Agree      6 = Agree
Frequency:                                              7 = Strongly Agree
0 = Cannot Answer               Frequency:
1 = Never                       0 = Cannot Answer       Frequency:
2 = Rarely                      1 = Never               0 = Cannot Answer
3 = Sometimes                   2 = Almost Never        1 = Never
4 = Often                       3 = Sometimes           2 = Seldom
5 = Always                      4 = Frequently          3 = Rarely
                                5 = Almost Always       4 = Sometimes
                                6 = Always              5 = Often
                                                        6 = Very Often
                                                        7 = Always
Screenshot
Step 4: Launch & Administer Survey
                Tips for Increasing Customer Responses
 1. Employees should personally invite customers to provide feedback, communicating
    the following:
     •   Emphasize the organization’s continuous efforts to improve customer service,
         meet customers’ needs and gather customer feedback and input
     •   The organization and the employee value his/her input
     •   His/her feedback will be used to improve the employee’s performance, as well
         as guide organizational development at a macro-level
     •   Confirm the contact information of the customer
 2. After the survey process is completed, employees should provide the customer
    with a summary of the developmental feedback received and the developmental
    activities planned to address the feedback.
Step 5: Deliver Reports & Feedback
• Individual reports are generated for each
  participant .
 ▫ Provide detailed feedback to participants on their
   strengths and development needs.
 ▫ Reports provide scores for overall competencies (e.g.,
   consultative selling, product/disease-state knowledge),
   as well as individual behaviors, skills, and knowledge
   (e.g., the sales professional accurately answers
   questions about clinical study methodology).
 ▫ Rater group scores (e.g., healthcare providers) are
   broken out separately when three or more ratings are
   received (except for the manager and self
   rating which is provided based on a single
   submission).
Prioritizing Interventions:
    360 HeatMap: Revenue % Effective
Performance




                                  Linked to
                                  Your LMS




                      Impact on Revenue (Beta Weight)
Step 6: Conduct Systemic Analysis
 • Conduct a systemic analysis utilizing the
   aggregated data set.
 • A linkage analysis, using structural equations
   modeling, can be conducted that links
   competencies to business outcomes (e.g., market
   share).
 • The analysis allows an organization to prioritize
   individual behaviors that contribute to the
   desired outcome.
 • The analysis allows organizations to prioritize
   training & development interventions.
Participation Results
• 139 Reps participated in the Assessment
• Total Number of Reviews Completed: 994
 ▫ Manager Reviews: 139
 ▫ Physician Reviews: 717
• Average of 7 reviews per participant
• Highest number of physician responses was 18




                                             28
Competency-Level Results
                                                 Overall
Competency                                                              Self           Manager          Physician
                                                Average**

Relationship Building                                5.57               5.75               5.50             5.75

Account Management                                   5.55               5.70               5.30             5.73

Product & Disease-State Expertise*                   5.55               5.48               5.28             5.73

Managed Care Expertise*                              5.55               5.53               5.40             5.70

Evidence-Based Selling Skills*                       5.53               5.80               5.97             5.70

Sales Representative Overall                         5.52               5.48               5.25             5.53

Advanced-Level Selling Skills                        5.35               5.43               5.03             5.55

Consultative Selling Skills*                         5.31               5.25               5.98             5.58
      Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                  5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree
                        *Denotes key drivers of Script Writing and Market Share Performance.
                                     **Overall Averages Exclude Self Ratings.
                    Green and Red shading denote statistically significant differences between the
                       rater group (i.e., Self, Manager, or Physician) and the Overall Average.
Overall Highest Scoring Items
                                                                                                                 Overall
Competency                           Item
                                                                                                                Average*
                                    Effectively works with the entire office (e.g., all healthcare providers,
Account Management                                                                                                   6.70
                                    office manager, nurses) to meet patients’ needs
Account Management                  Respects the policies and procedures of the healthcare provider's office         6.70
                                    Responds with accuracy to questions pertaining to XYZ and the disease
Advanced-Level Selling Skills                                                                                        6.70
                                    state
                                    Provides education and clinical information, and is viewed as a trusted
Consultative Selling Skills                                                                                          6.70
                                    pharmaceutical representative
Product & Disease-State Expertise   Possesses broad knowledge of the testosterone replacement market                 6.70
                                    Effectively differentiates XYZ from other products in the male hormone
Product & Disease-State Expertise                                                                                    6.70
                                    replacement category
Managed Care Expertise              Articulates the formulary advantages and status of XYZ                           6.70
                                    In addition to discussing the male hormone replacement market, is well
Relationship Building                                                                                                6.70
                                    rounded and can effectively converse on various topics

Relationship Building               Comfortably builds rapport with healthcare provider's office staff               6.65

         Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                     5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree

                                          *Overall Averages Exclude Self Ratings.
Overall Lowest Scoring Items
                                                                                                                   Overall
Competency                       Item
                                                                                                                  Average*
                                Gains commitment from healthcare providers to take specific action (e.g.,
Advanced-Level Selling Skills                                                                                        6.05
                                write more scripts, try XYZ)
                                Gains commitment from stakeholders across the healthcare provider's office to
Consultative Selling Skills                                                                                          6.10
                                take specific action (e.g., try XYZ)
                                Asks pertinent and insightful questions during interactions to identify
Consultative Selling Skills                                                                                          6.25
                                customer needs

Advanced-Level Selling Skills Effectively listens to and addresses healthcare providers' needs and concerns          6.40

                                Understands physicians' unique approaches to treating the disease state and
Consultative Selling Skills                                                                                          6.40
                                provides solutions based on needs

Managed Care Expertise          Effectively positions vouchers in the correct situations                             6.40

                                Engages in discussions with healthcare providers that are relevant and
Advanced-Level Selling Skills                                                                                        6.45
                                interactive
                                The sales representative is a highly valuable resource to healthcare providers'
Sales Representative Overall                                                                                         6.45
                                offices
         Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                     5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree

                                           *Overall Averages Exclude Self Ratings.
Competency-Level Results by Region
                          Advanced-                           Product &         Evidence-                                              Sales
           Account                         Consultative                                      Managed Care           Relationship
Region                   Level Selling                       Disease-State     Based Selling                                       Representative
          Management                      Selling Skills*                                     Expertise*              Building
                            Skills                            Expertise*          Skills*                                             Overall

 201         5.55             5.43              5.49              5.49              5.34              5.48              5.53           5.35
 202         5.81             5.59              5.70              5.70              5.57              5.81              5.81           5.59
 203         5.55             5.41              5.51              5.51              5.35              5.50              5.52            5.55
 204         5.73             5.55              5.55              5.55              5.55              5.55              5.55           5.55
 205         5.50             5.35              5.55              5.55              5.38              5.51              5.55            5.52
 205         5.49             5.55              5.55              5.55              5.58              5.71              5.55            5.45
 207         5.73             5.54              5.53              5.53              5.51              5.52              5.55            5.48
 301         5.59             5.47              5.42              5.42              5.55              5.45              5.52            5.47
 302         5.75             5.57              5.50              5.50              5.49              5.57              5.77            5.59
 303         5.58             5.53              6.61              6.61              6.52              6.63              6.76            6.59
 304         6.79             6.64              6.74              6.74              6.65              6.75              6.82           6.72
 305         6.48             6.38              6.29              6.29              6.37              6.46              6.55           6.41
 306         6.68             6.71              6.64              6.64              6.68              6.68              6.73           6.65
 307         6.68             6.63              6.58              6.58              6.46              6.57              6.59            6.51
 308         6.53             6.48              6.63              6.63              6.57              6.57              6.67            6.54
Overall      6.64             6.53              6.56              6.62              6.51              6.60              6.68           6.55
                    Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                                5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree
                                      *Denotes key drivers of Script Writing and Market Share Performance;
                                                         Averages Exclude Self Ratings.
                          Green and Red Shading denote differences of +/- 0.10 from the Overall Competency Average..
Cohort Comparison: Competency Ratings
                                                     General Rep North Star Rep Difference     Significant
Competency                                            Average**    Average
                                                        (N = 132)    (N = 7)
                                                                               (NS - General) Difference***

Account Management                                        5.53                5.88          +0.25               Yes

Advanced-Level Selling Skills                             5.53                5.71          +0.18               No

Consultative Selling Skills*                              5.55                5.79          +0.26               Yes

Product & Disease State Knowledge*                        5.51                5.79          +0.18               No

Evidence Based Selling Skills*                            5.50                5.75          +0.25               Yes

Managed Care Expertise*                                   5.50                5.77          +0.17               No

Relationship Building                                     5.57                5.83          +0.26               No

Sales Representative Overall                              5.54                5.71          +0.17               No
         Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                     5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree

*Denotes key drivers of Script Writing and Market Share Performance.
**North Stars (i.e., top performing Reps) were identified by Sales Directors based their
track record of delivering results in a manner consistent with Auxilium’s values.
***Differences were considered statistically significant at the 0.10 level.
Identifying Drivers of Sales Performance
Linkage Analysis Methodology:
Structural Equation Modeling (SEM)
Traditional data analysis methods include:
• Qualitative analysis or gap analysis (strengths/weaknesses)
• Correlation
• Regression
Advantages of SEM:
• Allows you to assess multiple independent measures (e.g.,
  competencies) & dependent measures (e.g., sales
  performance outcomes) simultaneously.
• Implies causality and allows you to calculate the ROI
SEM is commonly used in other industries (e.g.,
econometrics, market research)
Linkage Analysis Results:
   Overview of the Full Model
                         2              Circled numbers indicate the development priority based on the
     Product &                          magnitude of the relationship with script writing & market share.
    Disease-State
     Expertise
                             0.54*                                                        XYZ Script
                                                                                           Writing
                         3                                        1       0.16*
    Managed Care             0.29*
                                         Evidence-Based
                                                                                                0.60*
     Expertise                            Selling Skills
                                                                         0.19*
                             0.10*
                         4                                                              Market Share
     Consultative
     Selling Skills
                                          *Higher path values indicate a stronger impact based on a 0.0 to 1.0 scale.

Findings & Implications:
• Evidence-Based Selling Skills are a significant, causal driver of Script Writing and Market Share.
• Evidence-Based Selling Skills, in turn, are driven by Product & Disease State Expertise, Managed Care
   Expertise, and Consultative Selling Skills.
• Prioritizing initiatives that target the key drivers listed above will lead to improvements in sales
   performance among XYZ Sales Representatives.
Linkage Analysis Results:
    Overview of Critical Item-Level Drivers
Priority*       Competency             Item

                Evidence-              Easily discusses concerns about bias in XYZ’s clinical studies
    1           Based Selling
                Skills                 Accurately answers questions about clinical study methodology

                                       Possesses broad knowledge of the testosterone replacement market
                Product &
    2           Disease State          Articulates all potential effects that XYZ can have on patients depending
                Expertise              on therapy paradigm and patient profile
                                       Understands the specifics of managed care plans
                Managed Care
    3           Expertise              Effectively finds solutions to managed care challenges and restrictions


                                       Understands physicians’ unique approaches to treating the disease state
                Consultative           and provides solutions based on needs
    4           Selling Skills         Asks pertinent and insightful questions during interactions to identify
                                       customer needs
*Priorities determined based on the magnitude of the relationship with script writing & market share.
Comparison of 2009 and 2011 Assessment Results
Competency-Level Change in Performance
                                                      2011              2009             Difference       Significant
Competency
                                                    Average**         Average**         (2011 – 2009)       Change

Account Management                                      6.65              6.64               +0.01             No

Advanced-Level Selling Skills                           6.55              6.59               -0.04             No

Consultative Selling Skills*                            6.59              6.47               +0.12             Yes

Product & Disease State Knowledge*                      6.65              6.51               +0.14             Yes

Evidence Based Selling Skills*                          6.56              6.34               +0.22             Yes

Managed Care Expertise*                                 6.64              6.42               +0.22             Yes

Relationship Building                                   6.70              6.64               +0.06             No

Sales Representative Overall                            6.61              6.53               +0.08             No
        Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree;
                                    5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree

* Denotes 2011 key drivers of Script Writing and Market Share Performance.
** Averages calculated for XYZ Sales Representatives who participated in the assessment in
2009 and 2011 (N=84); therefore, 2011 averages reported here differ slightly from 2011
averages presented previously. All averages exclude self ratings.
Taking Action on the Assessment Results
Key Drivers of Sales             The Key Drivers are levers that
Performance*:                    can be invested in to:
1. Evidence-Based Selling        • Improve Script Writing
   Skills                          Performance
2. Product & Disease State       • Grow Market Share
   Expertise                     • Enhance Sales
3. Managed Care Expertise          Representatives Overall
4. Consultative Selling Skills     Performance
Prioritizing Interventions

Prioritizing
opportunities and
maximizing
return on
investment
                    Low Scoring   Market Share
                       Items        Drivers




                         Manager/Customer
                            Comments
Improving Behaviors Across the Organization
                                            Systemic
                                          Interventions

                 Organization               Organization

Post-
Assessment         Manager      Region        Region       Region
support should
inform all
levels:                             Rep            Rep         Rep

• System
                  Sales Rep         Rep            Rep         Rep
• Manager
• Individual
                                    Rep            Rep         Rep


                                           Individual
                                          Develop. Plans
Using the Results
• Deliver workshops on interpreting report and
  building a development plan
• Developed a training resource guide – organized
  by competency available for all employees and
  managers
• Incorporate results into training strategy and
  plans for Product XYZ sales force
• Adjust brand strategy to align with key learnings
• Used the ROI to gain organization-wide
  buy-in
Individual Prioritization
                                 2011 Selling Skills Assessment:
                                 Individual Development Priorities and Action Plan
                  Rep NAME: John Doe
                    REGION: 304

                                                         Individual Development Priorities*
                                                                                                                                          Performance/
 Competency                      Item
                                                                                                                                         Priority Level**
 Evidence Based Selling          Accurately answers questions about clinical study methodology                                                   1
 Evidence Based Selling          Easily discusses concerns about bias in XYZ's clinical studies                                                  1
 Consultative Selling            Asks pertinent and insightful questions during interactions to identify customer needs                          2
                                 Provides education and clinical information and is viewed as a trusted pharmaceutical
 Consultative Selling                                                                                                                            2
                                 representative
                                 Gains commitment from stakeholders across the healthcare provider's office to take specific
 Consultative Selling                                                                                                                            2
                                 action (e.g. try XYZ)
                                 Understands physicians' unique approaches to treating the disease state and provides
 Consultative Selling                                                                                                                            2
                                 solutions based on needs
*Priority competencies/items identified based on the magnitude of their relationship with XYZ Script Writing and Market Share;
Focusing on development actions that target the competencies/items listed above will contribute directly to improvements in bottom line sales performance.
**Performance/priority based on rep's performance on the 2011 Selling Skills Assessment; Red = Low Performance; Yellow = Average Performance;
Green = High Performance.

                                                              Development Action Plan
 Competency/Item                 Development Action                                                                                        Target Date
 1.
Practical Execution Tips
•   Use the linkage analysis to secure management buy-in
•   Assess Organizational Readiness
•   Create a Valid and Reliable Instrument
•   Set Clear Objectives for the Process
•   Select and Coach Raters
•   Coach Employees on Interpreting Their Ratings
•   Train Employees on Creating Development Plans
•   Formalize a Goal-Setting Component
•   Implement the Process on a Routine Basis
•   Use the Process for Development Purposes Only
•   Align Ratings with Observed Behaviors
•   Present Data in Multiple Forms in Reporting
•   Focus on Task/Skills Improvement
•   Evaluate the Effectiveness of the Entire Multi-rater Process
Timing
                    Step                     Time to Complete
Identify 360 target population               2 weeks
Define measurement/process objectives
Define critical competencies and behaviors
Finalize tool and pre-launch process         2-3 weeks
Launch and administer                        3-4 weeks
Deliver reports and feedback process         2 weeks
Present systemic analysis                    2 weeks
Total Time                                   11-13 weeks
What We Have Covered
• The most effective uses for multi-rater
  assessments
• Advantages of multi-rater assessments
• The process for effectively executing a multi-
  rater assessment
• How to link the competency assessments to
  business outcomes
• How to leverage the multi-rater assessment to
  conduct a systemic training needs assessment
• Driving development at the systemic and
  individual level
To Contact Us:
  Shane Douthitt, Ph.D.
   Managing Partner
 sdouthitt@smdhr.com
     (704) 975-6820


  Scott Mondore, Ph.D.
   Managing Partner
 smondore@smdhr.com
     (404) 808-4730

    www.smdhr.com

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SMD Business-Focused 360 Assessment

  • 1. Using Multi-Rater (360) Assessments to Drive Business Outcomes Shane Douthitt, Ph.D. Scott Mondore, Ph.D.
  • 2. Learning Objectives • How to use multi-rater assessments for senior and front-line leaders • Key process steps for effective implementation of a multi-rater assessment • How to link competencies to business outcomes—Calculate ROI • Identifying key training needs for the organization • How to drive development at the systemic and individual level in your organization
  • 3. SMD Publications #3 Bestseller for 2011 Published by Published by SHRM (2009) SHRM (2011) HR People & Strategy has awarded SMD The Walker Prize for their article on Talent Management Analytics. “The Walker Prize is given to the article that ‘best advances state-of-the-art thinking and practices in human resources.’"
  • 4. About SMD: Driving Business Results Through Talent Management Our Platform • Implement Talent Management processes based on analytics, linking people to critical business outcomes • Partner with our clients to create and execute people strategies that drive business outcomes and maximize ROI Our Results • Linkage of Talent Management (e.g., engagement survey results, training, performance ratings, competency assessments) to a variety of business outcomes: ▫ Operations Metrics (e.g., operating margin) ▫ Financial Metrics (e.g., sales dollars, productivity) Connecting Employees ▫ Customer Satisfaction to Business Results • HR Strategy & Planning ▫ Turnover/Retention Human Capital Measurement • • Talent Management ▫ Employee Safety • • Leadership Development Executive Assessment & Coaching • Significant bottom-line improvements and • Organizational Effectiveness return-on-investment for our clients.
  • 5. Presenter Bio Scott Mondore, Ph.D. Scott has over 15 years of experience in the areas of strategy, talent management, measurement, customer experience and organizational development. He has internal and consulting experience across a variety of industries including transportation, healthcare, manufacturing, pharmaceuticals, utilities, and hospitality. Scott is currently a managing partner of Strategic Management Decisions (SMD). Before SMD, he served as East Region President for Morehead Associates, a healthcare HR company. Before joining Morehead, Scott worked as a Corporate Strategy Director at Maersk, Inc. He also worked as an Organizational Effectiveness Leader at UPS, focusing on employee assessment and measurement as well working as a consultant to large and small organizations in both the private and public sector. He is the co-author of “Investing in What Matters: Linking Employees to Business Outcomes” and has published several articles on various topics, including employee turnover, employee safety, coaching, litigation and leadership. Scott is also an Adjunct Professor of Psychology at the University of Georgia, Fairleigh Dickinson University & the University of North Carolina- Charlotte. Scott holds a master's degree and doctorate in applied psychology from the University of Georgia.
  • 6. Presenter Bio Shane Douthitt, Ph.D. Dr. Shane S. Douthitt is a co-founder and managing partner of Strategic Management Decisions (SMD). He has more than 18 years of experience in the areas of measurement, talent management, executive assessment and coaching, and organizational development across a variety of industries. Before SMD, he was the SVP of Sales and Product Management at Morehead Associates—a healthcare HR consulting company. Before joining Morehead, Shane worked as a Senior Vice President of Human Resources & Leadership Development at Bank of America. Shane also worked as a consultant for Towers Perrin and IBM. Shane is the co-author of “Investing in What Matters: Linking Employees to Business Outcomes” (SHRM, 2009) and “Business-Focused HR: 11 Processes to Drive Results” (SHRM, 2011). In addition, he has published several articles in leading journals on a variety of topics, including HR strategy, measurement, teams, individual differences and diversity, employee selection, group dynamics, and careers, and leadership development. Shane holds a master's degree and doctorate in applied psychology from the University of Georgia, as well as a master’s degree in industrial/organizational psychology from the University of Tulsa.
  • 7. RETHINK Your Approach to HR! Make HR a Profit Center • Quantify the impact of employees on business outcomes • Calculate an expected ROI for investments in employees • Define the relationship between HR processes and business outcomes Connect Key HR Processes • Provide a single, integrated view of key HR processes • Reduce your HR related costs through integration and strategic alignment • Connect HR processes to business results Spend More Time Driving Results • Align HR professionals, organizational leaders, & employees to focus on actions that drive results • Provide customized analytics and simplified reporting through business-focused scorecards
  • 8. Talent Link Key HR Processes Performance Examples of Management Business Outcomes People Training Selection • Turnover • Employee engagement Service • Customer satisfaction • Wait times Quality Career Business Employee Development Outcomes Survey • Clinical outcomes • Product Defects Finance • % to budget • Cost reduction Growth Competency • Sales growth 360 Feedback Builder • Margin growth Succession Planning
  • 9. Key HR Processes in One Place
  • 10. Agenda • Using Multi-Rater Assessments • Communicating the advantages of multi-rater assessments • Executing the process • Linking results to business outcomes • Comprehensive Case Study • Driving development and buy-in across the organization • Timing to execute
  • 11. What Our Clients Are Saying… “We can’t “I’ve had “We don’t “We say our “The make the trouble in the have the people are the information business case past getting resources for key but we can be very to do it.” employees to these types of don’t invest insightful.” do anything analytics.” much in with the them.” results.”
  • 12. Uses for Multi-Rater Assessments • Senior Leaders: ▫ Common: Individual Development; Senior Team Functioning ▫ Cutting Edge: Incorporated into a comprehensive leadership development program; linked directly to business outcomes • Front-line Managers ▫ Common: Individual development ▫ Cutting Edge: Linked directly to business outcomes & performance metrics; training needs assessment • Front-line Employees ▫ Common: not usually done ▫ Cutting Edge: customers (external or internal) included in the process and linked to performance metrics
  • 13. Sample Leadership Program Overview Phase 1 Phase 2 Phase 3 Phase 4 Design Program Assessment & Group Learning Coaching Feedback •Build leadership •Kick-off program and •Execute group •Provide coaching strategy orient participants learning sessions during periodic 1:1 •Define program •Participants and including: meetings objectives and assessors complete •Business strategy •Participants have, as create “blueprint” assessments and organizational needed, access to •Select and build • Multi-rater alignment coaches throughout customized program • Follow-up •Effective the process components Interviews leadership skills •Wrap-up program •Build customized •Personality •Creating an •Evaluate program leadership Assessment effective effectiveness assessment process •Aggregate development plan •Match & train assessment data and •Aggregated assessors produce an overall assessment results leadership team and leadership report team development •Provide feedback •Execute learning and build action team projects development plan •Observe and provide feedback & coaching
  • 14. Advantages of Multi-Rater Feedback Accuracy Face-Validity Richer Insights Open Practical & Commitment to Communication Cost-effective Performance 14
  • 15.
  • 16. Multi-Rater Assessment Process Develop Deliver Conduct Define Define Tool & Pre- Launch & Competencies Reports & Systemic Objectives Launch Administer Feedback Analysis Process
  • 17. Step 1: Define Objectives • Answer the following questions: ▫ What business objectives are we trying to achieve? ▫ What business outcomes are we trying to drive? ▫ Which employees will participate in the process and when? ▫ How will reports be delivered and feedback facilitated? ▫ What competencies/behaviors will be assessed? ▫ What role will the managers of participants play? ▫ How will raters be selected? ▫ How will the overall process be communicated?
  • 18. Objectives of Multi-Rater Assessment • Performance feedback from multiple sources to drive individual development; Review of changes in performance over time for Sales reps who participated in 2009. • Systemic analysis of all assessment data to identify macro-level strengths/development needs and adjust company-wide training strategy based on results. • Linkage analysis to reveal the specific competencies, skills, and behaviors that directly drive market share movement and script writing behavior.
  • 19. Step 2: Define Competencies Sales Force Evidence-Based Selling Skills Differentiators Managed Care Expertise 25 competency items 4 overall ratings Needed Relationship Building 1 open-ended item to be Successful Advanced-Level Selling Skills 7-point response scale Product & Disease State Expertise Must have Account Management to do the Job Consultative Selling Skills
  • 20. Selling Skills Assessment Sample Items Competency Sample Item Account Management Responds with appropriate urgency to requests that require follow up Advanced-Level Engages in discussions with healthcare providers that are relevant and Selling Skills interactive Evidence-Based Easily discusses concerns about bias in XYZ’s clinical studies Selling Skills Accurately answers questions about clinical study methodology Product & Disease Articulates all potential effects that XYZ can have on patients depending on State Expertise therapy paradigm and patient profile Managed Care Effectively finds solutions to managed care challenges and restrictions Expertise Relationship Building Comfortably builds rapport with healthcare provider’s office staff Consultative Selling Asks pertinent and insightful questions during interactions to identify customer Skills needs
  • 21. Step 3: Develop Tool & Pre-Launch Process • Create the on-line survey • Provide sufficient communications to key stakeholders in advance of the survey launch • Effective communications will: ▫ Reduce participant anxiety ▫ Clearly state the purpose of the process ▫ Align the initiative with organizational strategy ▫ Improve the response rate ▫ Clearly outline project timing
  • 22. Rating Scales 5-Point Scales 6-point Scale 7-point Scale Agreement: Agreement: Agreement: 0 = Cannot Answer 0 = Cannot Answer 0 = Cannot Answer 1 = Strongly Disagree 1 = Strongly Disagree 1 = Strongly Disagree 2 = Disagree 2 = Disagree 2 = Disagree 3 = Neither Agree or Disagree 3 = Somewhat Disagree 3 = Somewhat Disagree 4 = Agree 4 = Somewhat Agree 4 = Neither Agree nor Disagree 5 = Strongly Agree 5 = Agree 5 = Somewhat Agree 6 = Strongly Agree 6 = Agree Frequency: 7 = Strongly Agree 0 = Cannot Answer Frequency: 1 = Never 0 = Cannot Answer Frequency: 2 = Rarely 1 = Never 0 = Cannot Answer 3 = Sometimes 2 = Almost Never 1 = Never 4 = Often 3 = Sometimes 2 = Seldom 5 = Always 4 = Frequently 3 = Rarely 5 = Almost Always 4 = Sometimes 6 = Always 5 = Often 6 = Very Often 7 = Always
  • 24. Step 4: Launch & Administer Survey Tips for Increasing Customer Responses 1. Employees should personally invite customers to provide feedback, communicating the following: • Emphasize the organization’s continuous efforts to improve customer service, meet customers’ needs and gather customer feedback and input • The organization and the employee value his/her input • His/her feedback will be used to improve the employee’s performance, as well as guide organizational development at a macro-level • Confirm the contact information of the customer 2. After the survey process is completed, employees should provide the customer with a summary of the developmental feedback received and the developmental activities planned to address the feedback.
  • 25. Step 5: Deliver Reports & Feedback • Individual reports are generated for each participant . ▫ Provide detailed feedback to participants on their strengths and development needs. ▫ Reports provide scores for overall competencies (e.g., consultative selling, product/disease-state knowledge), as well as individual behaviors, skills, and knowledge (e.g., the sales professional accurately answers questions about clinical study methodology). ▫ Rater group scores (e.g., healthcare providers) are broken out separately when three or more ratings are received (except for the manager and self rating which is provided based on a single submission).
  • 26. Prioritizing Interventions: 360 HeatMap: Revenue % Effective Performance Linked to Your LMS Impact on Revenue (Beta Weight)
  • 27. Step 6: Conduct Systemic Analysis • Conduct a systemic analysis utilizing the aggregated data set. • A linkage analysis, using structural equations modeling, can be conducted that links competencies to business outcomes (e.g., market share). • The analysis allows an organization to prioritize individual behaviors that contribute to the desired outcome. • The analysis allows organizations to prioritize training & development interventions.
  • 28. Participation Results • 139 Reps participated in the Assessment • Total Number of Reviews Completed: 994 ▫ Manager Reviews: 139 ▫ Physician Reviews: 717 • Average of 7 reviews per participant • Highest number of physician responses was 18 28
  • 29. Competency-Level Results Overall Competency Self Manager Physician Average** Relationship Building 5.57 5.75 5.50 5.75 Account Management 5.55 5.70 5.30 5.73 Product & Disease-State Expertise* 5.55 5.48 5.28 5.73 Managed Care Expertise* 5.55 5.53 5.40 5.70 Evidence-Based Selling Skills* 5.53 5.80 5.97 5.70 Sales Representative Overall 5.52 5.48 5.25 5.53 Advanced-Level Selling Skills 5.35 5.43 5.03 5.55 Consultative Selling Skills* 5.31 5.25 5.98 5.58 Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Denotes key drivers of Script Writing and Market Share Performance. **Overall Averages Exclude Self Ratings. Green and Red shading denote statistically significant differences between the rater group (i.e., Self, Manager, or Physician) and the Overall Average.
  • 30. Overall Highest Scoring Items Overall Competency Item Average* Effectively works with the entire office (e.g., all healthcare providers, Account Management 6.70 office manager, nurses) to meet patients’ needs Account Management Respects the policies and procedures of the healthcare provider's office 6.70 Responds with accuracy to questions pertaining to XYZ and the disease Advanced-Level Selling Skills 6.70 state Provides education and clinical information, and is viewed as a trusted Consultative Selling Skills 6.70 pharmaceutical representative Product & Disease-State Expertise Possesses broad knowledge of the testosterone replacement market 6.70 Effectively differentiates XYZ from other products in the male hormone Product & Disease-State Expertise 6.70 replacement category Managed Care Expertise Articulates the formulary advantages and status of XYZ 6.70 In addition to discussing the male hormone replacement market, is well Relationship Building 6.70 rounded and can effectively converse on various topics Relationship Building Comfortably builds rapport with healthcare provider's office staff 6.65 Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Overall Averages Exclude Self Ratings.
  • 31. Overall Lowest Scoring Items Overall Competency Item Average* Gains commitment from healthcare providers to take specific action (e.g., Advanced-Level Selling Skills 6.05 write more scripts, try XYZ) Gains commitment from stakeholders across the healthcare provider's office to Consultative Selling Skills 6.10 take specific action (e.g., try XYZ) Asks pertinent and insightful questions during interactions to identify Consultative Selling Skills 6.25 customer needs Advanced-Level Selling Skills Effectively listens to and addresses healthcare providers' needs and concerns 6.40 Understands physicians' unique approaches to treating the disease state and Consultative Selling Skills 6.40 provides solutions based on needs Managed Care Expertise Effectively positions vouchers in the correct situations 6.40 Engages in discussions with healthcare providers that are relevant and Advanced-Level Selling Skills 6.45 interactive The sales representative is a highly valuable resource to healthcare providers' Sales Representative Overall 6.45 offices Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Overall Averages Exclude Self Ratings.
  • 32. Competency-Level Results by Region Advanced- Product & Evidence- Sales Account Consultative Managed Care Relationship Region Level Selling Disease-State Based Selling Representative Management Selling Skills* Expertise* Building Skills Expertise* Skills* Overall 201 5.55 5.43 5.49 5.49 5.34 5.48 5.53 5.35 202 5.81 5.59 5.70 5.70 5.57 5.81 5.81 5.59 203 5.55 5.41 5.51 5.51 5.35 5.50 5.52 5.55 204 5.73 5.55 5.55 5.55 5.55 5.55 5.55 5.55 205 5.50 5.35 5.55 5.55 5.38 5.51 5.55 5.52 205 5.49 5.55 5.55 5.55 5.58 5.71 5.55 5.45 207 5.73 5.54 5.53 5.53 5.51 5.52 5.55 5.48 301 5.59 5.47 5.42 5.42 5.55 5.45 5.52 5.47 302 5.75 5.57 5.50 5.50 5.49 5.57 5.77 5.59 303 5.58 5.53 6.61 6.61 6.52 6.63 6.76 6.59 304 6.79 6.64 6.74 6.74 6.65 6.75 6.82 6.72 305 6.48 6.38 6.29 6.29 6.37 6.46 6.55 6.41 306 6.68 6.71 6.64 6.64 6.68 6.68 6.73 6.65 307 6.68 6.63 6.58 6.58 6.46 6.57 6.59 6.51 308 6.53 6.48 6.63 6.63 6.57 6.57 6.67 6.54 Overall 6.64 6.53 6.56 6.62 6.51 6.60 6.68 6.55 Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Denotes key drivers of Script Writing and Market Share Performance; Averages Exclude Self Ratings. Green and Red Shading denote differences of +/- 0.10 from the Overall Competency Average..
  • 33. Cohort Comparison: Competency Ratings General Rep North Star Rep Difference Significant Competency Average** Average (N = 132) (N = 7) (NS - General) Difference*** Account Management 5.53 5.88 +0.25 Yes Advanced-Level Selling Skills 5.53 5.71 +0.18 No Consultative Selling Skills* 5.55 5.79 +0.26 Yes Product & Disease State Knowledge* 5.51 5.79 +0.18 No Evidence Based Selling Skills* 5.50 5.75 +0.25 Yes Managed Care Expertise* 5.50 5.77 +0.17 No Relationship Building 5.57 5.83 +0.26 No Sales Representative Overall 5.54 5.71 +0.17 No Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Denotes key drivers of Script Writing and Market Share Performance. **North Stars (i.e., top performing Reps) were identified by Sales Directors based their track record of delivering results in a manner consistent with Auxilium’s values. ***Differences were considered statistically significant at the 0.10 level.
  • 34. Identifying Drivers of Sales Performance
  • 35. Linkage Analysis Methodology: Structural Equation Modeling (SEM) Traditional data analysis methods include: • Qualitative analysis or gap analysis (strengths/weaknesses) • Correlation • Regression Advantages of SEM: • Allows you to assess multiple independent measures (e.g., competencies) & dependent measures (e.g., sales performance outcomes) simultaneously. • Implies causality and allows you to calculate the ROI SEM is commonly used in other industries (e.g., econometrics, market research)
  • 36. Linkage Analysis Results: Overview of the Full Model 2 Circled numbers indicate the development priority based on the Product & magnitude of the relationship with script writing & market share. Disease-State Expertise 0.54* XYZ Script Writing 3 1 0.16* Managed Care 0.29* Evidence-Based 0.60* Expertise Selling Skills 0.19* 0.10* 4 Market Share Consultative Selling Skills *Higher path values indicate a stronger impact based on a 0.0 to 1.0 scale. Findings & Implications: • Evidence-Based Selling Skills are a significant, causal driver of Script Writing and Market Share. • Evidence-Based Selling Skills, in turn, are driven by Product & Disease State Expertise, Managed Care Expertise, and Consultative Selling Skills. • Prioritizing initiatives that target the key drivers listed above will lead to improvements in sales performance among XYZ Sales Representatives.
  • 37. Linkage Analysis Results: Overview of Critical Item-Level Drivers Priority* Competency Item Evidence- Easily discusses concerns about bias in XYZ’s clinical studies 1 Based Selling Skills Accurately answers questions about clinical study methodology Possesses broad knowledge of the testosterone replacement market Product & 2 Disease State Articulates all potential effects that XYZ can have on patients depending Expertise on therapy paradigm and patient profile Understands the specifics of managed care plans Managed Care 3 Expertise Effectively finds solutions to managed care challenges and restrictions Understands physicians’ unique approaches to treating the disease state Consultative and provides solutions based on needs 4 Selling Skills Asks pertinent and insightful questions during interactions to identify customer needs *Priorities determined based on the magnitude of the relationship with script writing & market share.
  • 38. Comparison of 2009 and 2011 Assessment Results
  • 39. Competency-Level Change in Performance 2011 2009 Difference Significant Competency Average** Average** (2011 – 2009) Change Account Management 6.65 6.64 +0.01 No Advanced-Level Selling Skills 6.55 6.59 -0.04 No Consultative Selling Skills* 6.59 6.47 +0.12 Yes Product & Disease State Knowledge* 6.65 6.51 +0.14 Yes Evidence Based Selling Skills* 6.56 6.34 +0.22 Yes Managed Care Expertise* 6.64 6.42 +0.22 Yes Relationship Building 6.70 6.64 +0.06 No Sales Representative Overall 6.61 6.53 +0.08 No Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree * Denotes 2011 key drivers of Script Writing and Market Share Performance. ** Averages calculated for XYZ Sales Representatives who participated in the assessment in 2009 and 2011 (N=84); therefore, 2011 averages reported here differ slightly from 2011 averages presented previously. All averages exclude self ratings.
  • 40.
  • 41. Taking Action on the Assessment Results Key Drivers of Sales The Key Drivers are levers that Performance*: can be invested in to: 1. Evidence-Based Selling • Improve Script Writing Skills Performance 2. Product & Disease State • Grow Market Share Expertise • Enhance Sales 3. Managed Care Expertise Representatives Overall 4. Consultative Selling Skills Performance
  • 42. Prioritizing Interventions Prioritizing opportunities and maximizing return on investment Low Scoring Market Share Items Drivers Manager/Customer Comments
  • 43. Improving Behaviors Across the Organization Systemic Interventions Organization Organization Post- Assessment Manager Region Region Region support should inform all levels: Rep Rep Rep • System Sales Rep Rep Rep Rep • Manager • Individual Rep Rep Rep Individual Develop. Plans
  • 44. Using the Results • Deliver workshops on interpreting report and building a development plan • Developed a training resource guide – organized by competency available for all employees and managers • Incorporate results into training strategy and plans for Product XYZ sales force • Adjust brand strategy to align with key learnings • Used the ROI to gain organization-wide buy-in
  • 45. Individual Prioritization 2011 Selling Skills Assessment: Individual Development Priorities and Action Plan Rep NAME: John Doe REGION: 304 Individual Development Priorities* Performance/ Competency Item Priority Level** Evidence Based Selling Accurately answers questions about clinical study methodology 1 Evidence Based Selling Easily discusses concerns about bias in XYZ's clinical studies 1 Consultative Selling Asks pertinent and insightful questions during interactions to identify customer needs 2 Provides education and clinical information and is viewed as a trusted pharmaceutical Consultative Selling 2 representative Gains commitment from stakeholders across the healthcare provider's office to take specific Consultative Selling 2 action (e.g. try XYZ) Understands physicians' unique approaches to treating the disease state and provides Consultative Selling 2 solutions based on needs *Priority competencies/items identified based on the magnitude of their relationship with XYZ Script Writing and Market Share; Focusing on development actions that target the competencies/items listed above will contribute directly to improvements in bottom line sales performance. **Performance/priority based on rep's performance on the 2011 Selling Skills Assessment; Red = Low Performance; Yellow = Average Performance; Green = High Performance. Development Action Plan Competency/Item Development Action Target Date 1.
  • 46.
  • 47. Practical Execution Tips • Use the linkage analysis to secure management buy-in • Assess Organizational Readiness • Create a Valid and Reliable Instrument • Set Clear Objectives for the Process • Select and Coach Raters • Coach Employees on Interpreting Their Ratings • Train Employees on Creating Development Plans • Formalize a Goal-Setting Component • Implement the Process on a Routine Basis • Use the Process for Development Purposes Only • Align Ratings with Observed Behaviors • Present Data in Multiple Forms in Reporting • Focus on Task/Skills Improvement • Evaluate the Effectiveness of the Entire Multi-rater Process
  • 48. Timing Step Time to Complete Identify 360 target population 2 weeks Define measurement/process objectives Define critical competencies and behaviors Finalize tool and pre-launch process 2-3 weeks Launch and administer 3-4 weeks Deliver reports and feedback process 2 weeks Present systemic analysis 2 weeks Total Time 11-13 weeks
  • 49. What We Have Covered • The most effective uses for multi-rater assessments • Advantages of multi-rater assessments • The process for effectively executing a multi- rater assessment • How to link the competency assessments to business outcomes • How to leverage the multi-rater assessment to conduct a systemic training needs assessment • Driving development at the systemic and individual level
  • 50. To Contact Us: Shane Douthitt, Ph.D. Managing Partner sdouthitt@smdhr.com (704) 975-6820 Scott Mondore, Ph.D. Managing Partner smondore@smdhr.com (404) 808-4730 www.smdhr.com