Sales Force Effectiveness in the Pharmaceutical Industry
Edward C. Twyford
August 25, 2013
MBA 525 Professional Development
Abstract
With the advent of healthcare reform, increased government regulation and market saturation the pharmaceutical industry has been faced with a multitude of challenges. Scrutiny as to over cost of pharmaceutical sales organization has gained popularity with senior pharmaceutical executives as well as Wall Street Analysts. Both parties attempted to put a price tag on the sales organization in comparison to direct sales. Faced with no comprehensive data based tool for this evaluation, most evaluations where left to speculation and subjective conclusions. In 2008 Andris A. Zoltners, Ph.D. and Sally E. Lorimer, M.M. both from the Kellogg School of Management at Carnegie Mellon University collaborated with Prabhakant Sinha, Ph.D. from the University of Massachusetts to publish the foundation of Sales Force Effectiveness Framework. This framework applied to pharmaceutical sales organizations worldwide defined the study of effectiveness in these organizations. We will define Sales Force Effectiveness Framework and look at the methodology used to arrive at this template. We will then explain the drivers, the key components, of SFEF and look at examples of SFEF incorporated in sales force evaluation. Through these examples one the ability for companies to use cross functional teams to better and more efficiently solve problems is evident. Another aspect of SFEF is its ability to define areas of opportunity and the associated risk. In conclusion SFEF has brought a definitive tool for evaluating sales force effectiveness in the pharmaceutical industry.
Keywords: sales, pharmaceutical, effectiveness, force, framework

In response to healthcare reform, sales organizations within pharmaceutical companies have undergone a paradigm shift. No