Pharmaceutical Sales Training Excellence: Tools, Processes and Resources That Drive Effectiveness

BEST PRACTIC
Best Practices, LLC Strategic Benchmarking Research
Pharmaceutical Sales Training Excellence:
Tools, Processes & Resources
That Drive Effectiveness
Copyright © Best Practices , LLC

BEST PRACTIC
Table of Contents
 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
 Research Overview
 Participating Companies
 Hallmarks of Excellence
 Key Metrics at a Glance
 Key Trends at a Glance
 Benchmark Findings
 Sales Training Program Operations & Models . . . . . . Page 12
 Sales Training Content Delivery & Development . . . . Page 26
 Technology Issues & Applications . . . . . . . . . . . . . . . Page 41
 Sales Training Budget & Resources . . . . . . . . . . . . . . Page 52
 Organizational Structure & Scope . . . . . . . . . . . . . . . . Page 69
 Trends in Pharmaceutical Sales Training . . . . . . . . . . . Page 76
 Best Practices of the Benchmark Class . . . . . . . . . . . Page 81
 Appendix: Participant Demographics . . . . . . . . . . . . . . Page 90
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BEST PRACTIC
Topics IncludedStudy Overview
 Sales Training budget trends &
management
 Most utilized types of Sales Training
included in formal curriculum
 Collaboration level of sales training
with various stakeholder groups
 % Training content developed and
delivered by internal staff vs. vendors
 Technologies used to deliver training
 % training outsourced to vendors
 Key Industry Metrics:
 Avg. # days of sales training per rep
 Sales Training budget as a percentage
of revenue.
 # employees receiving sales training
per trainer
Research Objective: This benchmarking study
was designed to provide pharmaceutical leaders
with metrics and insights they can use to
evaluate and compare the performance of their
Sales Training organizations.
The study identifies successful training venues,
technologies, organizational structures, delivery
approaches, performance measurement
processes, and resource levels that drive
effectiveness in high-performing Sales Training
organizations.
Methodology: Best Practices, LLC engaged
28 biopharmaceutical training leaders through
a benchmarking survey instrument. Research
analysts also conducted six deep-dive executive
interviews with selected benchmark participants.
Research Project Objectives, Methodology & Results
Best Practices, LLC conducted this benchmarking to identify performance benchmarks for the
size, cost, scope, content, delivery channels, lessons learned, and success drivers of leading Sales
Training organizations across the pharmaceutical industry.
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BEST PRACTIC
25 Companies Participated in This Benchmarking Study
Participating Companies: Benchmark Class
Twenty-eight Sales Training leaders from 25 pharmaceutical companies participated in this study.
Sixty-three percent of the participants are directors or senior directors. Logos represent the
company affiliation of the participants
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Benchmark Participants:
 Train sales forces representing an average
of $5 billion annual revenue
 Train on four continents, with 74% training
sales forces in the U.S.
 Provide training covering more than
20 different therapeutic areas
 100% have a focus on training specialty
sales forces, especially in
oncology, hematology, immunology &
neurology
 48% also train primary care sales forces;
67% train sales managers

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Benchmark Findings: Structure & Resources / Budget
The following key findings and insights emerged from this study.
 Training Heads Report up to Vice Presidents: More than two-thirds of Sales Training departments
are led by directors and senior directors. Nearly three-quarters of the department leaders report up to
vice presidents and senior vice presidents.
 Companies Put Sales Training Close to Marketing: About two-thirds of participants locate their Sales
Training groups in close proximity to Marketing Departments. Only 32% are not within the same building.
 Sales Training Budgets for Participants Average Nearly $6M: Participants’ Sales Training budgets
averaged $5.87million (US) during the last fiscal year, with a median of $3.35 million. On
average, companies in the study allocated 26% for ad hoc training, including POA meetings.
 36% of Budget Goes to New Hires: Benchmark participants spent an average of 36% of their budgets
for new hire training in the most recently completed fiscal year. On average, new hires receive about 32
days of training during their first year on the job, compared with about 10 days of training per year for
existing, or experienced, reps.
 More Companies Expecting Budget Decreases than Increases: A third of participants expect their
Sales Training budgets to remain flat over the next two years, while another 40% anticipate decreases.
Increased budgets are expected by 28% of the benchmark class. This trend reflects current market
realities: as blockbusters lose patent coverage, many companies are reducing sales force size.
Companies with growing budgets are scheduling new product launches.
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Key Trends at a Glance
TECHNOLOGY:
 Reducing travel costs, increasing field time, & learner preferences are driving companies to move
some live training into virtual classrooms. However, face-to-face learning continues to be important.
 Technology creates opportunities to further individualize or segment training so new hires &
transfers are treated differently, as are primary care & specialty reps.
 Mobile applications & gaming are gaining usage, but effectiveness has not yet been determined.
 IT support relationships vary widely across companies.
PEOPLE DEVELOPMENT:
 As sales forces shrink, emphasis shifts from new hire learning to advanced training & development.
 24-hour access to on-demand training modules through LMS or other systems is expected.
 Traditional foundation training content remains in place, but curricula
are expanding to include business acumen, health outcomes & more.
 Companies are increasingly focused on reinforcement & are equipping
DMs with coaching skills & support tools that make training sustainable.
COST:
 There’s a strong correlation between training cost & program size.
Those training more reps realize significant economies of scale.
 Participants stretch budgets with technology & innovation.
The following are key trends observed in this study.

BEST PRACTIC
“Measurement is an area for improvement for us. We continue to look at ways to measure effectiveness. We get good feedback
that they were great programs, but I don’t know if that necessarily is translated to effectiveness yet.” -- Associate Director
44%
59%
67%
67%
74%
81%
81%
96%
96%
96%
Program includes career path development
Program effectiveness metrics are used to drive change
Training effectiveness is measured continuously
Curriculum includes post-training reinforcement
Program employs (or contracts with) professional
instructional designers
Program leaders collaborate closely with Marketing
Sales Training leverages internal SMEs (subject matter
experts) in curriculum development and/ or instruction
Program has active sponsorship/support from senior
management
Program is formalized with a dedicated staff and budget
Program leaders collaborate closely with Sales leadership
Q. Which of the following statements are true of the Sales Training program you represent?
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Program Attributes
(n=27) % Responses
Key Program Strengths Are Collaboration, Dedicated
Resources & Management Support
Nearly all participating Sales Training Departments have dedicated resources, good relationships
with sales leadership and active support from senior management. Career path development and
use of effectiveness metrics are opportunities for many departments.
Opportunity
Areas
Strengths

BEST PRACTIC
Model:
Sales Training Model Integrates Competencies & Curriculum
“As important as it is to create competency models based on roles, it’s equally important to ensure that the models and
competencies are aligned with the corporate culture and values. This is not an overnight process—it takes two to three years.”
--Interviewed Associate Director, Sales Training & Development
Align Program with Corporate Objectives & Values
Establish
Competencies
Based on
Organization’s
Needs
Create a
Competency
Model for Each
Role
Identify
Individual
Skills Gaps
Create
Individual
Development
Plans
Document
Training &
Coaching
Consistently
to Ensure
Sustainability
Train
Managers to
Identify Needs
Build
Curriculum to
Develop Each
Competency
Map
Curriculum to
Competencies
Coach to
Curriculum
Train Managers & Individuals to Use
Competency Map & Library
Create Library
of
Competency-
Based Training
Modules
One interviewed partner described a successful Sales Training model based on identifying
Sales competencies and building a curriculum to develop them.
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BEST PRACTIC
Trainee Satisfaction Is Top Metric for Judging Program Quality
Most participants use a variety of metrics to evaluate the quality of their Sales Training functions.
Those with the highest effectiveness rating are trainee satisfaction, role-play certification, and formal
feedback from management.
Q. Rate each of the following metrics for evaluating the quality of the Sales Training function? (choose one for each)
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Sales Training Program Quality
52%
40%
28%
28%
24%
21%
12%
4%
8%
16%
4%
4%
8%
4%
4%
16%
8%
20%
16%
4%
8%
16%
8%
12%
16%
24%
32%
36%
44%
38%
36%
44%
40%
8%
12%
16%
16%
20%
29%
32%
40%
48%
Return on Investment (ROI)
Employee retention metrics
% sales goals met by individual trainee
% revenue targets met by sales force
Comparison of test results before & after training
Comparison of individual's performance before &
after training
Formal feedback from sales management
Role-play certification
Trainee satisfaction levels
NA/ Not Used Not At All Effective Somewhat Ineffective Somewhat Effective Highly Effective
4%
n =
25
25
25
24
25
25
25
25
25
% Responses

BEST PRACTIC
Companies Adding Training Content on Customers & Patients
Evolving role of the patient
Business of the physician
Individualizing customer interaction
How to add value for each customer
Impacts of Health Care Reform
Understanding formularies & reimbursement
Use of selling models
Advanced training/ Management training
The need for content in disease state, compliance, product, selling and other traditional training
remains strong, but some new areas are growing in importance. Understanding customers and
patients are key growth areas.
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BEST PRACTIC
Q. Approximately what percentage of your sales training is delivered using each of the following approaches?
(Estimate a percentage for each approach. Total should equal 100%.)
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Training Delivery Approaches
Instructor-
led, in-person
classroom, 53%
Instructor-
led virtual
classroom , 12
%
Asynchronous
virtual
classroom, 3%
Self-paced e-
learning
modules, 15%
Self-
paced paper-
based learning
modules, 6%
Field
visits/practice
selling, 11%
All other
approaches, 1%
(n=24)
”For one franchise, we
developed a virtual core
class with a mixture of iPad
content, WebEx, video, and
interactivity on the iPad.
“It involves pulling out
components where we know
we don’t really need a live
person.”
- Interviewed Associate
Director
In-Person Classroom Instruction Is Top Delivery Approach
Traditional instructor-led classroom learning accounts for 53% of the sales training provided by the
benchmark participants. Interest is growing in instructor-led virtual classrooms, however, with 12%
of training offered in that venue. For self-paced training, e-modules are used more than twice as
often as paper-based modules.

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Q. Approximately what percentage of your core training is delivered via the iPad and/or other similar mobile devices?
Q. What apps have you developed?
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Mobile Training
(n=25)
• Custom app where all training content is loaded 24/7
• Custom play books for each product, eLearning Systems
housed on iBooks and product specific apps
• Deploying a new CRM APP
.
• Google Drive proprietary product called DOCs
(Demonstration of Comprehension)
• Handbook app
• Training platform launches brand specific new hire training
• Utilized for "just in time" training. All learning is no more
then 5 -7 mins long. Allows rep to look up info when
needed before going into a HCP’s office. All content is
housed on the iPad; web connection not needed
Percentage of Core Training
Delivered to Trainees Through
Mobile Devices
Max 75%
75th Percentile 25%
Mean 18%
Median 10%
25th Percentile 5%
Min 0%
Training Apps
18% of Core Training Is Delivered via iPad-Type Devices
Companies are increasingly moving Sales Training content to mobile devices. Only about 18% of core
training has migrated on average to date, however. Participants are actively creating apps for training
purposes.
“The iPad is great for getting things out where speed is of the essence, but we can’t just put everything out there in real time.
In our world of compliance and the regulatory environment, the company has to manage what a rep can download, copy, and
replicate.” – Interviewed Senior Director

BEST PRACTIC
Technology Comparison: Best Uses Described
Interviewed training leaders described best uses, pros and cons for various types of training
technology.
Tech Type Best Use Pros Cons
E-learning Modules
Home study, Prepping
reps before face-to-face
training events
Easy to track use through
LCM, Available anytime
Not available in field, No
peer interaction, No
manager feedback
Webinars
Disseminating
information to a group
Accessible in field; Can be
archived for flexible access
Little opportunity for
trainee interaction
Conference Calls
Group discussion,
Manager feedback, Info
dissemination
Can use for individual
coaching or group practice
sessions
Synchronous
communication only
iPad Modules On the job learning
Available in field;
Interactivity potential;
User demand
Tech requirements;
Content development
cost; Unknown
effectiveness
Video Uploads
Capturing rep practice
sessions
Enable student coaching
outside classroom
LMS limitations
Virtual Classroom
Providing classroom-
type instruction over
Internet
Reduce travel; Some
student/teacher interactivity;
Archivable
Tech requirements;
Cost, Unknown
effectiveness
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BEST PRACTIC
* Other: Hire highly
qualified training
managers, develop
content in-
house, RFP all
projects, scale back
on meals and
gifts, reduce travel
cost, repurpose
existing content
Q. What successful or innovative practices have you used to stretch the Sales Training budget in times of flat or reduced
corporate funding? (please describe)
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Budget Management
Use of
Technology/ e-
learning, 36%
Increase
internal
expertise/
content, 18%
Decentralized
trainings, 18%
Evaluation of
strategies in
place, 14%
Switch to
contractors to
supply
training, 7%
Other, 7%
*
(n=28)
Participants Stretch Budgets with Technology & Innovation
Benchmark partners have successfully used technology, e-learning, increased internal expertise ,
and decentralized trainings to hold down costs in times of flat or reduced budgets.

BEST PRACTIC
Q. Please provide the following numbers for number of training days required per rep for a new product launch.
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Number of Training Days Required per Rep for a New Product Launch
(n=18)
New Hires
(Reps within first year on job)
Existing Reps
(Excludes new hires)
75th Percentile 23.75 20
Mean 16.5 14.4
Median 10 9
25th Percentile 6 5
(n=17)
Reps Get About Three Weeks of Training for a New Product
New product training requires an average of 16.5 days of training for new hires and 14.4 for
experienced reps. One quarter of participating companies provides four weeks or more of new
product training. The survey maximum was 45 days, both for new and experienced reps.

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Training Focuses on Needs of Learners & Internal Partners
“It’s important to remember those people are our customers
and the stuff that we are putting forth is designed to help them
achieve their strategies. So if we understand that and give people
the skillsets and the development they need to better achieve a
strategy, then that’s how we’re bringing value. So we need to be
aligned with our business partners to that to make
that happen.”
“For our big products, we have somebody within our training
group dedicated to working with each of those plans to make
sure that everything we train new folks on is done from a
customer lens. We’re involved from the very beginning.”
Interviewed training directors shared best practices on partnering with internal stakeholders and
collecting feedback from trainees to ensure training is focused on meeting internal customers’
needs.
“We’re big fans of doing everything we can to improve learner satisfaction where we basically ask them at the end of
the training, “If you didn’t have this training, could you be as successful in your job?””
“So learner satisfaction is a big driver for just about everything we do, and we get tons of feedback from our learners.
that we scan through after every class we run. Then we use it to try and make improvements.”
“We’re trying to get to this culture of continuous improvement where everything we do we take time to analyze the
feedback from our learners, figure out, or evaluate where it falls and what we can do to improve upon it for the
next folks that come through.”
Best Practice:

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Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
Sue Silverstein Martha Haswell
Senior Director, Advisory Services Project Manager
919.767.9227 919.767.9249
ssilverstein@best-in-class.com mhaswell@best-in-class.com
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.
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Link for Report: Pharmaceutical Sales Training Excellence Benchmarking Report

Pharmaceutical Sales Training Excellence: Tools, Processes and Resources That Drive Effectiveness

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Pharmaceutical Sales Training Excellence: Tools, Processes and Resources That Drive Effectiveness