This document summarizes the results of a benchmarking analysis that assessed the operational performance of managed markets functions at small and mid-sized pharmaceutical companies. The analysis found that on average these companies dedicate 55% of staff time to account management. It also found that companies feel they could operate with leaner structures, as the perceived ideal ratio of account managers to area directors is lower than current ratios. Additionally, the analysis showed that while account manager compensation is tied 50-50 to MBO and sales plan attainment, area directors compensation weighting shifts more to MBO at 60-40.

1. OPTIMIZING THE MANAGED
MARKETS FUNCTION: ROLES,
STRUCTURES, RESOURCES
AND ACTIVITIES
Small and Mid-Sized Companies

2. Introduction
Research Objective: This benchmarking analysis was
designed to assess the operational performance of
managed markets functions within small and mid-cap
pharmaceutical companies. The overall goal of this
project being to illustrate how to have the most impact
within the organization while continuing to operate on
lean resource levels.
Methodology: Best Practices, LLC engaged 11
commercial leaders from targeted small and mid-cap
companies that align well with one another in terms of
size, market position and resource levels. These 11
companies completed online surveys, which were used to
identify innovative as well as efficient “outliers” that were
also engaged in interviews to expand on their survey
responses.
Topics Covered and Location within Deck:
• Budgets and Headcount
• Structure
• Overview
• Org Charts
• Compensation
• The Clinical Specialist Role
• Efficiency and Performance
• Appendix
• Participating Company
Overviews

3. Benchmark Class
*Please see the Appendix for a Company Overview of Each Participant

4. Allocations of Managed Markets Staffing
Resources
Q: Estimate the percentage of staff time dedicated to each sub-function.
N=10
Account
Management,
55%
Payer Customer
Marketing, 6%
Contract
Management,
14%
Reimbursement,
6%
Payer Market
Research, 5%
HEOR, 1%
Clinical
Specialists, 4% Pricing, 9% The Average Company Model
(based on group average of 35 FTEs,
rounded to the nearest .5 FTE)
Account Management 19
Pricing 3
Clinical Specialists 1.5
HEOR .5
Payer Market
Research
2
Reimbursement 2
Contract
Management
5
Payer Customer
Marketing
2

5. 5
6 6
8
0
2
4
6
8
10
First Quartile Median Average Third Quartile
Perceived Ideal Ratio of Account
Managers per Area Director
3
6
5
8
0
2
4
6
8
10
First Quartile Median Average Third Quartile
Current Ratio Account Managers
to Area Director
Area Director Span of Control Ratios
Q: What are the current and ideal ratios of account managers to directors?
N=7
When comparing the span of
control of area directors to
account managers, it is clear
that most companies feel they
can run leaner than they are
currently- with a full
additional account manager
FTE on average reporting to
each area director.
Key Takeaway

6. Executive Vice
President
VP Managed
Markets
Director
Account Mgmt
Area Director
8 Account
Managers
Area Director
7 Account
Managers
Area Director
7 Account
Managers
Director
Contract
Mgmt/Admin
1 Contracts
Staff
Company A Managed Markets Model
Direct
Future

7. 50%
55% 58%
68%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
First Quartile Median Average Third Quartile
% of Compensation Based on
MBO (Area Directors)
45%
50%
48%
53%
0.4
0.42
0.44
0.46
0.48
0.5
0.52
0.54
First Quartile Median Average Third Quartile
% of Compensation Based on
MBO (Account Managers)
Percentage of Bonus Structure Tied to MBO
and Sales Plan
Q: Please describe the percentage of compensation tied to each measurement factor.
N=6
All participants noted that
bonus targets for area
directors and account
managers focused on a
combination of MBO and
sales plan attainment. The
weighting of MBO vs. Sales
Plan Attainment for account
managers was
approximately 50/50. For
area directors, the weighting
shifted closer to an average
of 60/40 in favor of MBO.
Key Takeaway

8. Additional Perks for High-Performers Exceeding the
Bonus Cap
Q: Is there some additional incentive for those exceeding bonus caps?
N=7
Yes, 29%
No, 71%
Close to 30% of participants
noted that they do have
additional incentives in place
for high performers that
exceed their bonus cap.
Some examples that were
referenced include:
• President’s Club
• Cash Awards
• Vacations
• Multiples on Earnings
Key Takeaway

9. Reporting Relationships for Clinical Specialists
Q: Please select the internal group to which clinical specialists directly report.
N=8
Key Takeaway
None of the clinical
specialists identified as
supporting managed
markets reported into
managed markets. Not
having oversight when
dealing with clinical
specialists can be a big gap
for managed markets
functions.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Health Outcomes Liaisons Medical Science Liaisons Managed Care Liaisons
Managed Markets Sales Medical Affairs/Clinical Health Outcomes

10. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that
conducts work based on the simple yet profound principle that
organizations can chart a course to superior economic
performance by studying the best business practices, operating
tactics, and winning strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com