Sales Evaluation & Compensation

Group Members & Visit to Pfizer

• Noshad Latif (Student ID - 10060)• Zeeshan Valliani (Student ID - 12543)• Muhammad Kashif (Student ID - 11017)• Muhammad Asim Hayat (Student ID - 11084)

Introduction – Timeline

19th century:• Founded in 1849, Pfizer is named after German-American cousins

Charles Pfizer and Charles Erhart.• Produced an antiparasitic called santonin.• Production of citric acid kick-started Pfizer's growth in the 1880s.

20th century:• World War I caused a shortage of calcium citrate• Production of citric acid from this source in 1919• Mass production of Penicillin during World War II• The discovery and commercialization of Terramycin

(oxytetracycline) by Pfizer in 1950

21st century:• Pfizer has recently grown by mergers, including those with

Warner–Lambert (2000), Pharmacia (2003), and Wyeth (2009).• world’s largest research-based pharmaceutical company. • Pfizer has nearly 90,000 employees in more than 90 countries.

Introduction – Pfizer

Vision: “Working together for a healthier World.”

Mission: Our mission is to apply science and our global resources to improve health and well-being at every stage of life.

In Pakistan:• Pfizer first set its foot in Pakistan in the 50s and worked with a local distributor through

the early 60s.• On 8th of September 1961 Pfizer, established its manufacturing facility in Pakistan by

acquiring another incorporated pharmaceutical company. • Today, Pfizer as a group is at number 3 in the local market.• Pfizer-Parke Davis launched New division to address supply of affordable medicines

Sales Hierarchy

Country Manager

Director Sales

National Sales

Manager (1)

National Sales

Manager (2)

National Sales

Manager (3)

Regional Sales Manag

erDistri

ct Field ManagerSenio

r Executive PSR

Executive PSR

Senior Sales Respresentative

Professional Sales Representative

National Sales

Manager (4)

Reports to Manager Asia

80 RSM

Sales Department

• The main objective of the Sales department at Pfizer is to implement marketing strategies in such a manner that revenues are generated in order to achieve set organizational goals.

• The country has divided Pakistan into three geographic regions for the sales operations; these divisions are supervised by the Regional Sales Manager.i. Karachi Regionii. Multan Regioniii. Lahore Regioniv. Rawalpindi Region

Sales Department

• The total number of Sales Force of Pfizer in Pakistan is around 600 while 100 of them are in Karachi.

• The company has a separate Head Office Sales team in addition to regional teams.

• Each sales person has to cater a minimum of 10 calls in a day.

• Every PSR has a laptop with internet connection and software application where they record every sales related information.

Sales Team’s Evaluation

Sales Evaluation

• Pfizer believes that to retain the best talent, they must reward talented and dedicated individuals who deliver excellent results.

• The company has introduced both monetary and non-monetary rewards and incentives.

• The company evaluates its Sales Force on regular basis through Field Sales intelligence software that has well-defined parameters to measure Sales Force performance.

• The Sales Force at Pfizer is evaluated every quarter for several incentives that include Cash Prizes.

• Salary increments depends upon the evaluation of the Sales Force.

Key Performance Indicators (KPIs)

Sales Team at Pfizer is evaluated on the following performance indicators:

• Sales Target• Number of Sales Calls• Daily Reports• Reach and Frequency• Management Information Systems• Knowledge Areas: Product, Disease,

Competition• Selling and Soft Skills

Sales Evaluation (Cont.)

• Pfizer Pakistan adopts 360 degrees evaluation strategy in which each sales force is evaluated by his superiors, juniors and peers.

• The major part of evaluation consists of reviewing employee’s performance against determined KPIs and pre-set objectives.

• The PA cycle is basically divided in 4 major areas; these areas are further divided in 9 steps. Cycle runs round the year for each employee.

• PA cycle runs for each particular year, which means that the PCP of 2013 will not be impacted by the PCP of 2012 of that employee. Yearly targets are set and monitored.

Performance Appraisal

Sales Evaluation (Cont.)

Phases and Steps in Performance Appraisal Cycle: • Goal Setting Phase (Beginning of year)• 1.) Employee Draft Goals • 2.) Manager Approve Goals • Interim Review Phase (Mid Year)• 1.) Employee Interim Review (Employee rate his/her own

performance) • 2.) Manager do the half yearly review (Manager high

light/review the performance of the employee)

Sales Evaluation (Cont.)

Phases and Steps in Performance Appraisal Cycle: • End of Year Phase • 1.) Employee review his/her full year Performance • 2.) Manager review Employee’s full year Performance • 3.) Manager of Manager (Skip level/WL3) review and rate

employee performance • 4.) Manager Sign Off • 5.) Employee Sign off

Sales Evaluation (Cont.)

Phases and Steps in Performance Appraisal Cycle: • There is a midyear review on PCP where the

supervisors evaluate their sub ordinates, tracks the progress with reference to the initial goals.

• At the end of a year again the PCP is closed on the same document and entire year progress is documented. All KPI’s, all goals etc are measured and then a rating is awarded. On the basis of that rating employees are assigned an increment.

Sales Evaluation (Cont.)

Field Sales Report is prepared at Pfizer through specially designed Intelligence software which is used by each sales representative to record information. A field sales report is devised to serve various purposes such as:• Call Report or Progress Report• Expense Report• Sales Work Plan• New Business Report• Adverse Event/ Complaint ReportSales forces is evaluated quarterly for incentives based on the results of this report.

Field Sales Report

Sales Evaluation (Cont.)

Like many other organizations, Pfizer also has a rating scale of 1 to 5 where the Line managers rate the team members based on performance against:

1.) Sales Targets 2.) Job Fundamentals, and 3.) SOL Behaviors (Standard of Leadership)

Budget is allocated to each manager to disperse that budget into its employees as per the performance. Once the rating is finalized by the LM, they put it in an online tool for measuring the increment of the employee.

Performance Rating Procedures

Sales Evaluation (Cont.)

• Personal Career Plan (PCP) is another tool for setting up long term development plans for employees.

• PCP helps in measuring that how well employees are doing with their long term development plans

• Pfizer thinks that that it is important to tell Sales forces about what is been expected from them and What should they do in order to meet Sales targets and develop themselves for higher positions within the organization.

Personal Career Plan (PCP)

Sales Team’s Compensation

Compensation

• Pfizer make sure that whatever they offer as compensation and benefits should be market competent.

• A simple process of compensation

• Normal salary and incentive program.

• No Yearly Bonus.

• There is an annual increase of salary which is established considering employee performance and inflation rate of the country.

Incentives Salary

Compensation (Cont.)

Incentives Program

• Individual performance

• Team performance.

• Quarterly incentives

• Annually incentives.

• Performance of the sales representatives.

Compensation (Cont.)

Awards/ Motivation

• Annual competition awards are also awarded to best performers

• Awards range from 40k to 500k.

• Group discussions are also carried out to appreciate team members for their efforts.

Compensation (Cont.)

Perks/Benefits

• All sales representatives have Motor Bikes

• Sales managers and above have company maintained cars.

• Insurance of employees has been done.

• Separate laptops have been given to all sales representative and managers.

• Medical Assistance

• Leave fare assistance is given to the sales team.

• Paid leaves are part of the package of the sales force.

Compensation (Cont.)

Honda CD 70• Professional Sales Rep• Senior PSR

Honda 125• Executive PSR• Senior Executive PSR

Cultus• District Field Manager• Regional Sales Manager

XLI • National Sales Manager

Accord • Director Sales

Position related benefits – Company Vehicle Policy

Compensation (Cont.)

Other Benefits

• On-Site Gym equipped with a selection of fitness machines to

promote a healthy lifestyle

• Bank at Work to facilitate employees carry all cash transactions

in a secure, hassle-free environment.

• Company library

• Maternity (paternity) benefits : 5 days free taken by fathers

upon the birth of the child

Recommendations

• 360 Degrees evaluation strategy has many benefits, while it requires critical review as well. Feedback from subordinates and peers may help in identifying nepotism but may also skew the results incase if there is lobbying against some person.

• Pfizer has incentive policy for sales force, which is purely sales target based. We believe that this should not be only on sales target achievement as there could be externalities may result hampering the sales while sales person is applying his/her best efforts.

• There should be more clarity in incentive policy and its amount determination. There could be differences between general sales and specialty sales but the difference should be negligible as most of the times its not in the control of employee that what products be assigned to him/her.

• Although there is an institutional sales team but still we found key account management, emergent concept in pharma sales all over the world, was not fully adopted.

Recommendations

• Individuals should be given incentive even of team has failed to achieve their target.

• The level of compensation should be less than what he/she would have got in the case of team achievement.

• Annually or bi-annually grand function should be arranged by the company.

• This activity is helpful in motivating sales force to perform their best in order to feel hero in front of their beloved ones.

• Considering current security situation of the Pakistan in general and Karachi in particular, Sales force security plan should be in place. Currently company does not have any security plan for its sales force.

Thank you for your time