1. Sales Force
Effectiveness
is Dead... or is It?
Five Opportunities for
Pharma to Get ‘Back to
Basics’ and Immediately
Lift Sales Performance
© Blackdot 2015
Many pharma sales leaders believe that the new pharma
landscape represents the inevitable demise of Sales Force
Effectiveness. Inevitably, a wave of ‘quick-fix’ solutions
have hit the market claiming to be the silver bullet of sales
performance.
Despite such claims, these initiatives frequently represent
‘point solutions’ that fail to appreciate the holistic nature of
the sales engine, and remain unable to deliver repeatable
and sustainable sales outcomes in isolation.
After having benchmarked more than 50,000 frontline sales
people, 7,500 Sales Managers and 650 independent sales
teams, blackdot have isolated the statistically-significant
drivers of pharma sales performance. In this paper, we
outline five pharma-specific, immediately-actionable Sales
Force Effectiveness fundamentals required for driving
repeatable sales performance within your organisation.

2. © Blackdot 2015 2
SALES FORCE EFFECTIVENESS IS DEAD… OR IS IT?
The rumours of
my death have
been greatly
exaggerated.
— Mark Twain
Sales Force Effectiveness (SFE) is Dead! For many pharma sales leaders,
this phrase has become an industry mantra over the last few years.
For believers of this mantra, the era of blockbuster drugs, which represents
the space in which SFE was originally born, has run its natural course
and has now come to an inevitable end. Enter the generics. How best to
respond? Shift towards quick-fix solutions in the search for more efficient
ways to engage HCPs (Health Care Professionals).
At this year’s leading conference on pharma SFE, participants were
presented with two session options for the afternoon agenda. The first
session focused on how the digital age has changed the pharma-doctor
relationship. It promised attendees an understanding of how to best use
digital channels and tools (think iPads and Closed Loop Marketing) to optimise HCP engagement. The
session was delivered to a full-house, with not an empty seat to be found in the room.
Next door, was the alternative afternoon session—a panel discussion on what five doctors most valued
and benefited from the pharma-doctor relationship. The consensus takeaway across all of the doctors
was that the myopic focus on tablet devices and social media was simply a distraction that stood
between them and their ultimate concern: Patient outcomes.
These doctors all agreed that all of this ‘noise’ did nothing to enhance or support the integral role
pharma can play in assisting themselves to drive true patient outcomes. The session was delivered
to a near-empty room. Conference attendees were too busy next door listening to the technologists,
to take the time to listen to their most important stakeholder—the customer.
In contrast, high performing sales organisations both within and outside pharma have come to
recognise the significant upside opportunity in eliminating as much noise as possible. They have
elevated the focus on core principles of SFE to address business challenges that persist across
economic and product lifecycles.
So what are the fundamentals of SFE that high performing pharma companies simply need to get
right?
Let’s begin by defining what we actually mean by getting it right.
DO THE RIGHT THINGS
Go-to-Market Readiness
DO THINGS RIGHT
Sales Force Effectiveness
These organisations are effective at sizing
the prize, ruthlessly prioritizing organic
growth opportunities, and getting organised
for success through the appropriate
allocation of resources.
These organisations possess a
fit-for-purpose how we sell around here
framework complimented by exception-free
sales management disciplines. When it comes
to capability building and talent management,
these organisations are incredibly effective
at minimising new-hire ramp up, maximizing
the employee ‘sweet spot’ and eliminating
performance decline.
Core strategic marketing and
sales leadership capabilities
Highly-functional integrated marketing
and sales ’engine’ supported by high-impact
sales management and a critical mass
of capable sales people

3. © Blackdot 2015 3
SALES FORCE EFFECTIVENESS IS DEAD… OR IS IT?
The 12-4-7 Sales Performance Improvement Framework
ORGANISATIONAL
ENABLERS
MANAGEMENT
DISCIPLINES
FRONTLINE
BEHAVIOURS
SALESFRAMEWORK
OPERATINGMODEL
DOING THE RIGHT THINGS
GO-TO-MARKET READINESS
DOING THINGS RIGHT
SALES FORCE EFFECTIVENESS
STRATEGY
OPERATING
RHYTHM
CLIENT INSIGHTS
ENGAGEMENT
MODEL
SALES
MANAGEMENT
RHYTHM
CHANNEL
DISTRIBUTION
STRATEGY
KPIs, TARGETS
INCENTIVES
OPPORTUNITY
MANAGEMENT
PROCESS
ADHERENCE
MARKET
SEGMENTATION
TARGETING
MARKETING,
SALES SERVICE
OPERATING
MODEL
DEMAND
CREATION
COACHING
PERFORMANCE
IMPROVEMENT
STRATEGIC
PRIORITIES
Focused growth
strategies targets
that leverage sources
of competitive
advantage
Optimal resource
allocation to maximise
effective selling time
minimise cost of sale/cost
to serve
Dynamic mechanisms
management
capabilities to refocus
frontline sales effort onto
high yielding activities
Integrated ‘marketing
sales engine’ to drive
more repeatable and
predictable top bottom
line results
Critical mass of
salespeople delivering
more consistent
out-performance
PRORITISE
TARGET
ACCESS
DECISION
MAKERS
EXPLORE
CHALLENGE
NEEDS
ACTIVELY
QUALIFY
DEMONSTRATE
VALUE
NAVIGATE
DECISION-MAKING
DYNAMICS
PRODUCT
STRATEGY
TEAMING
QUALITY
STANDARDS
CROSS-
FUNCTIONAL
EFFECTIVENESS
ENABLEMENT
TOOLS
TECHNOLOGY
CONTROL
THE END-TO-END
PROCESS
KEY : (vs. the Cross-Industry blackdot Benchmark)
Sales Leadership is about doing the right things. Sales Management is about
doing things right.
OUTCOMES
RELATIVE PHARMA WEAKNESSESVARIABLE FOR PHARMARELATIVE PHARMA STRENGTH

4. © Blackdot 2015 4
What truly defines these high performing sales organisations however, is their refusal to think of these
elements in isolation. By viewing the ‘sales engine’ holistically—as an ecosystem of component parts
that work interdependently to impact sales results—they have been able to accurately conceptualise
what SFE is all about, and identify the root cause of what’s inhibiting and enabling their current
performance.
High performing pharma organisations have steered clear of quick-fix solutions that consider things
like multichannel marketing as the panacea to their industry sales execution woes. They similarly
reject CRM (Customer Relationship Management) and CLM (Closed Loop Marketing) strategies as
the be-all-and-end-all silver bullet for achieving true HCP engagement. Instead, these companies have
a tempered and holistic appreciation of what Sales Force Effectiveness is actually all about. These
organisations develop an explicit go-to-market strategy. They all activate an effective sales enablement
function. They run to an integrated management rhythm, and they possess a strong execution spine.
Unfortunately, these are (as yet) not features to be found on the latest iPad.
Over the last six years Blackdot have benchmarked more than 50,000 frontline sales representatives
7,500 Sales Managers and 650 independent sales teams; spanning more than a dozen industries
across more than 142 countries to build an independent fact-base of what a high performing sales
organisation actually looks like. Through this process, we’ve been able to understand the relative
strengths and weaknesses of the pharmaceutical industry across a hollistic sales framework.
We’ve identified five pharma-specific, immediately-actionable opportunities that represent a return to
core SFE fundamentals required to drive more predictable and repeatable performance:
SFE is far from dead for pharma. For many, the failure to recognise the benefits to be gained in getting
back to basics represents a significant missed opportunity. For high performing pharma companies,
these universal, enduring and proven principles bridge the gap between hoping and knowing they’re
going to hit their sales targets. Adopting these high-impact and immediately-actionable opportunities
will differentiate your organisation through its response to the unique challenges of pharma and HCP
expectations, and enable you to take advantage of the opportunity that this industry fluidity actually
represents.
SALES FORCE EFFECTIVENESS IS DEAD… OR IS IT?
1. Understand What Really Defines Sales Performance
... in the absence of prescribing data
2. Optimise the Call Coverage Model
... based on product maturity
4. Manage Your Teams’ Performance Dynamically
... vs. a one-size-fits-all approach
3. Fix Broken Linear Sales Model
... in favour of a dynamic buyer-centric dialogue
5. Incentivise to Drive Behaviour Change
... and acquire a true performance culture

5. © Blackdot 2015 5
Across all industries, On-Target-Performance is by-and-large the most significant outcome-based KPI
(Key Performance Indicator) of any sales team. Pharma is an exception. The lack of doctor prescribing
data is the root cause of this dynamic. This is a non-issue in transactional sales organisations such as
banks, where the ability to focus on pipeline or other deal metrics is present. Furthermore, relative to
other industries, underlying product demand is highly predictable.
This scenario has left pharma companies largely in the dark and in search of another method to
meaningfully define sales performance.
Why is this an Opportunity?
OPPORTUNITY #1:
UNDERSTAND WHAT REALLY DEFINES SALES PERFORMANCE
A comparison of distribution of On-Target-Performance for Pharma vs. the External Benchmark.
In the pharma space, this seemingly leaves pharma with two methods for measuring sales performance:
TARGET ACHIEVEMENT: PHARMA VS. NON-PHARMA
0%
25%
50%
Pharma Benchmark
External Benchmark
0%0% 100% 200%
METHOD 1 METHOD 2
Method one is to focus exclusively on
On-Target-Performance as the ultimate
measure of performance. However, this fails
to illuminate performance variance across
your sales teams, and thus prevents you
from objectively identifying who your high
performers are or what they do differently
to the core. A singular focus on On-Target-
Performance as your sole KPI offers little
insight beyond simply validating the
effectiveness of your company’s abilities to
forecast.
Method two is to utilise alternative, input and
activity-biased compensatory data sources.
When this method is elected, it results in
creating an environment of goal diffusion for
pharma reps who are left unclear on what
their ultimate goals and measures of success
actually are.

6. © Blackdot 2015 6
OPPORTUNITY #1:
UNDERSTAND WHAT REALLY DEFINES SALES PERFORMANCE
At any point in time, a salesperson’s financial performance should be evaluated across two key
dimensions:
By considering sales performance in this way, high performing pharma companies have gained a more
accurate and insightful perspective on what actually defines high performance in pharma sales.
Assessing performance in this way enables you to gain an early indicator of later performance, and
thus categorise each salesperson into one of four Performance Profiles:
Current Performance vs. Target
Improving
Declining
Below Above
EMERGING
Below Target;
Performance
Improving
DEVELOPING
Below Target;
Performance
Declining
Above Target;
Performance
Improving
EXCELLING
Above Target;
Performance
Declining
PLATEAUING
PerformanceTrajectory
THE TIGHT-LOOSE ‘PERFORMANCE PROFILES’
Measuring a rep’s Compound Annual Growth Rate addresses the limitations
and shortcomings of alternative methods of sales performance measurement
without creating goal diffusion or impacting perceptions of role clarity.
CURRENT PERFORMANCE
Are they above or below their
sales target?
The typical metric used is
Year-To-Date On-Target-Performance
PERFORMANCE TRAJECTORY
Is overall sales performance
improving or declining?
The typical metric is CAGR
(Compound Annual Growth Rate)
or any growth rate measure over
successive time periods
What Do High-Performers Do Differently?

7. © Blackdot 2015 7
OPPORTUNITY #1:
UNDERSTAND WHAT REALLY DEFINES SALES PERFORMANCE
Introducing Compound Annual Growth Rate as a proxy for performance
trajectory illuminates the performance variability otherwise hidden within
pharma when only On-Target-Performance is considered.
In introducing this second dimension of performance trajectory, companies are able to determine
which Performance Profile each of their reps fall into, and thus objectively segment their high
performers from the core.
On-Target-Performance
becomes a highly effective
measure of performance when
combined with Compound
Annual Growth Rate.
From here, these companies are then able
to analyse and understand what their high
performers are actually doing differently. When
sales performance was considered using this
two-dimensional approach, many benchmarked
pharma clients that had historically only utilised
On-Target-Performance were frequently surprised
by what they saw: not only had the performance
variance snapshot changed dramatically, but reps
previously considered to be high or even core
performers were in many instances challenged.
Scatterplot of Territory On-Target-
Performance and Compound Annual Growth
Rate for benchmarked Primary and Specialty
Care Pharma representatives of a leading
global pharma company.
CASE STUDY
PercentageVolumeGrowth
(Median=1%)
EMERGING
DEVELOPING
EXCELLING
PLATEAUING
25%
On-Target-Performance
-19%
90% 100% 110%
0% ˜
˜
˜
˜ ˜˜
˜
˜
˜˜

8. © Blackdot 2015 8
What Can You Action Immediately?
Build a sales culture that elevates Compound Annual Growth Rate to being a joint Key
Performance indicator that stands alongside On-Target-Performance .1
Integrate consideration of your reps’ performance trajectory into performance
management processes and Business as Usual coaching conversations.2
3 Utilise Compound Annual Growth Rate as a key mechanism for identifying performance
variance across your teams and reward, recognise and incentivise appropriately.
OPPORTUNITY #1:
UNDERSTAND WHAT REALLY DEFINES SALES PERFORMANCE
In many cases, reps that were previously thought to be high performers emerged as being in a
plateauing state, with little indication that their on-target-performance would continue to rise. In other
instances, the fact that core performers were demonstrably on the up had been totally overlooked
throughout previous sales quarters: Yesterday’s laggards were tomorrow’s leaders!
Clarity around who your high performers are is a prerequisite to ensuring all other SFE priorities are
set for success. Whether it’s shaping your sales models to high performer best practices (See page 13),
dynamically performance managing to the identified bespoke strengths and weaknesses of your reps
(See page 16) or driving the desired behaviour changes by rewarding higher performance with higher
pay (See page 19)—none of this is possible until you’ve identified who your high performers actually
are. Using the right metrics to correctly define sales performance is imperative, given the breadth of
decision-making and business implications that flow from accurately defining sales performance.

9. © Blackdot 2015 9
OPPORTUNITY #2:
OPTIMISE THE CALL COVERAGE MODEL
A goal without a plan is just a wish. High performing sales organisations operationalise their call
coverage models off a clearly defined plan that begins with clarity on customer segmentation and
targeting. This is not a new concept or management construct for pharma. Pharma organisations have
long done this by defining and articulating the company segmentation and targeting process they
expect their reps to use.
The assumption is that this segmentation and targeting process manifests in the planned call coverage
model, which is then executed by the rep. Below we list the three stages required to execute a Call
Coverage Model that reflects an organisation’s defined HCP segmentation and targeting process.
Building an army of True Believers™—those that follow the defined segmentation and targeting process
and see it as enabling—is your path of least resistance to guaranteeing predictable, repeatable and
sustainable performance. The recipe includes not just adherence, but also buy-in to the process to
ensure that the fruits of those processes are institutionalised within and across your organisation.
What is interesting is that as an industry, pharma has more True Believers™ than the high-performing
External Benchmark (62% vs. 56%)—on the face of it, a great situation.
True Believers™CompliantsMavericksSelf-Reliants
Follow the defined
segmentation and
targeting process, and
see it as enabling
Follow the defined
segmentation and
targeting process, but
don’t see it as enabling
Defy the defined
segmentation and
targeting process and
do their own thing
Don’t know a
segmentation and
targeting process
exists, and work it out
for themselves
Clueless
Don’t follow any
process yet recognise
the lack of processes
hinders them
This however, does not always play out as intended, with varying levels of adherence to both the
process and belief in its ultimate utility. These issues are best illustrated by thinking about your sales
team as being made up of the five tribes of segmentation and targeting process adherence below:
1 2 3
ACTUAL CALL COVERAGE
AND FREQUENCY
CALL COVERAGE
AND FREQUENCY PLAN
HCP SEGMENTATION
AND TARGETING
Which doctors represent the
largest opportunities with the
greatest probability of success?
What call coverage and frequency
best aligns with our strategic
objectives?
Which doctors will
we actually visit and with
what intensity?
CRITICAL ELEMENTS IN DEVELOPING A CALL COVERAGE MODEL
Want to learn more about True Believers™?
Click here or scan the QR Code
Why is this an Opportunity?

10. © Blackdot 2015 10
However before we pat ourselves on the back, it’s important to recognise that pharma also have twice
the number of Mavericks (20% vs. 10%) than the External Benchmark, plus a not insignificant (15%)
Compliant population.
This represents an enormous missed opportunity, especially when we remember that relative to other
B2B industries, the pharma prescribing universe is relatively static and well known. Operationalising the
call coverage plan into the call coverage model your reps actually run to requires them to understand
the underlying HCP segmentation and targeting methodology that gave shape to the plan in the first
instance. It also requires them to hold the belief that the plan will actually enable them to hit their
numbers.
More than any other benchmarked industry, it should be possible for pharma to convert their Mavericks
and Compliants into segmentation and targeting True Believers™. Remember—this army of True
Believers™ is your ticket to guaranteeing predictable, repeatable and sustainable sales outcomes.
Over one-third of pharma reps and Managers do not see the segmentation
and targeting process as enabling.
OPPORTUNITY #2:
OPTIMISE THE CALL COVERAGE MODEL
To build this Army of True Believers™, you need to have your sales reps not only understand the
defined segmentation and targeting process, but actually see it as enabling. They need to truly believe.
High performing pharma companies not only make these processes known, but ensure that their reps
perceive the utility in adhering to them. To do so, reps need to see how following the process will
translate into real results.
What Do High-Performers Do Differently?
TRUE BELIEVER™ MAVERICK ‘SALES TRIBE’ COMPOSITION
20%
Maverick
10%
Maverick
62%
TRUEBELIEV
ER
TM
56%TRUEB
ELIEVERTM
Pharma External Benchmark
OTHER
O
THER

11. © Blackdot 2015 11
In addition to better aligning their call coverage plans and models, high performing pharma companies
also begin with better HCP segmentation and targeting.
Across any industry, prioritisation of customers fundamentally comes down to three principal
questions:
OPPORTUNITY #2:
OPTIMISE THE CALL COVERAGE MODEL
In one pharma company that undertook the Blackdot Benchmark™, the stated strategic goal
was to grow market share with high prescribing doctors that typically favoured competitor
products. Vision and practice however, were fundamentally misaligned. 58% of all call activity was
in practice directed to visiting Health Care Professionals where call objectives were to defend
CASE STUDY
existing prescribing habits and market
share. In contrast, only 34% of call
activity was directed towards visiting
Health Care Professionals that aligned
with the stated goal of growing market
share.
Is it any surprise that the number of
True Believers were at sub-benchmark
levels when there existed a variance of
24% between who reps were being told
to visit compared to who they felt they
really needed to visit?
Prescribing Preference
*Percentages allude to the percentage of total
sales calls made throughout the quarter.
Large
Small
Client Competitor
ACTUAL EXECUTION:
5% 3%
Size
DEFEND GROW
34%*58%*
ARE THEY BIG? DO WE WANT THEM? CAN WE WIN THEM?
When it comes to...
GROWING MARKET SHARE
When it comes to...
DEFENDING MARKET SHARE
PRIORITIES:
High-performing pharma reps will over-
weight prioritising the upside potential and
probability of conversion with HCPs within
their territories. this means they will often
go after mid-level prescribing doctors with a
strong competitor prescribing predisposition,
so long as they believe the potential for
changing prescribing preferences exists.
High-performers shift their priorities to
focus on the size of the opportunity being
defended, coupled with the attractiveness
of the opportunity (the Health Care
Professional’s prescribing predisposition
towards their company’s drugs.)
PRIORITIES:
STATED GOAL:

12. © Blackdot 2015 12
What Can You Action Immediately?
Build your army of True Believers™ by ensuring that the call coverage model activated
by your sales teams reflects the call coverage plan that correctly prioritises HCPs
against the right segmentation and targeting criteria.
Ensure your call coverage plan remains the dynamic and adaptive tool it is intended
to be—ruthlessly disqualify HCPs based on the probability of success determined
throughout the sales quarters and reflect this back in future call coverage and frequency
of visits.
Prioritise the upside potential and probability of conversion to grow market share. To
defend market share, prioritise the size and attractiveness of the opportunity.
OPPORTUNITY #2:
OPTIMISE THE CALL COVERAGE MODEL
1
2
3

13. © Blackdot 2015 13
OPPORTUNITY #3:
FIX BROKEN LINEAR SALES MODELS
Are Mavericks part of your sales model problem or solution?
Click here or scan the QR Code
Mavericks are those who know there is a sales model, yet choose to defy it and do their own thing
instead, based on the conviction that their way is better. Whilst a small number of Mavericks provide a
healthy agitation across any organisation, too large a number of these folk indicate there is something
materially wrong with the defined sales model, or signal negative perceptions of its utility.
Undertaking this process is truly the recipe for converting the remaining four tribes and begin to build
out your army of high performing True Believers™ (your ticket to the predictable, repeatable and
sustainable results game).
We’ve just reflected on the five tribes of segmentation and
targeting process adherence, and the criticality of building an
army of True Believers™ to drive predictable, repeatable and
sustainable performance. Within pharma, the role of Mavericks
also tells a very interesting and important story—though this
time with respect to your sales model (i.e., the methodology
organisations expect reps to follow when face-to-face with
HCPs).
Mavericks defy
the defined sales
model and do
their own thing.
Pharma possess 2.5x more Mavericks than the External Benchmark, possess
revenue contribution that materially exceeds that of any other sales tribe
by a minimum of 4%, and are also the tribe most likely to hit their targets.
Understanding what your high-performing Mavericks are doing is the first
step to building your army of high-performing True Believers™.
The message coming from the industry’s highest contributors is clear: we get these results by defying
the model you’ve been training and embedding.
So where exactly is the opportunity?
1 2 3
Embed. Embed. Embed.Get everybody on-board
to systematise and replicate
their success.
Understand what your
high-performing Mavericks
are doing differently.
Why is this an Opportunity?

14. © Blackdot 2015 14
OPPORTUNITY #3:
FIX BROKEN LINEAR SALES MODELS
It should come as no great surprise to learn that high performing pharma companies have started to
shift away from traditional and linear ‘selling-focused’ models towards more fluid and buyer-centric
sales models.
These sales models are further underpinned by new capabilities and a culture that dynamically
prioritises the HCP universe. They do so through continual and active (dis)qualification of HCPs based
on upside potential and probability. They also increase or decrease their call coverage and frequency
based on the perceived return on effort (See page 9).
The Blackdot Benchmark has also revealed key insights into what individual high performing reps are
doing differently during their sales calls. Here are a few headline high-performer differentiators:
• Value long calls above all
other interactions
• Maintains continuity of
dialogue between calls
• Creates and seizes access
and education opportunities
• Consistently turns short
calls into long calls
• Consistently builds
relationship momentum
• Educate and proactively
challenges HCP’s thinking
• Persuade rationally and
factually
• Prepared to argue and put
forward alternative viewpoints
• Focused on adding value
• Inquisitive
• Gains an explicit and
current understanding of
each HCP’s prescribing
habits and rationale
• Does not accept
information at face-value
• Consciously qualify
targets
• Assertively disqualify based
on low growth potential,
competitor loyalty or low
probability of prescribing
uplift (at any time)
• Commercial focus
• Patient centric
• High level of disease state,
product and competitor
knowledge
• Rapidly and credibly engage
HCPs on treatment
opportunities and challenges
• Outcome (prescribing), not
input (activity) driven
• Consistently closes
(i.e., clarifies and makes
explicit agreed
commitments and timelines)
• Owns next steps and follows
through
• Understand competitive
positioning
• Concisely and appropriately
differentiates with both
loyal and new prescribers
• Articulate
points-of-difference in
patient efficacy, safety and
cost
CREATE
RELEVANCE
ESTABLISH
HOW CLIENTS
BUY
CHALLENGE
CLIENTS’
THINKING
OWN AND
CONTROL THE
PROCESS
MAXIMIZE
MEANINGFUL
CONTACT
RUTHLESSLY
QUALIFY
DIFFERENTIATE
DIFFERENTIATING HIGH-PERFORMING REP SALES BEHAVIOURS
What Do High-Performers Do Differently?

15. © Blackdot 2015 15
Understanding what your high-performing Mavericks are doing is the first
step to building your army of high-performing True Believers™.
OPPORTUNITY #3:
FIX BROKEN LINEAR SALES MODELS
What Can You Action Immediately?
Identify the mix of sales people across each of the five tribes within your organisation.
Determine where amongst these tribes your high performers are concentrated.
Diagnose what this is telling you about the effectiveness of your organisation-wide sales
model.
Have you got a critical mass of True BelieversTM
in your sales model?
Click here or scan the QR Code
1
2
3

16. © Blackdot 2015 16
OPPORTUNITY #4:
MANAGE YOUR TEAMS’ PERFORMANCE DYNAMICALLY
Performance management is challenging at the best of times. Within pharma, it is amplified by unique
industry dynamics such as the lack of prescribing data and resultant goal diffusion.
A salesperson’s performance should be evaluated as a function of both their current performance
(i.e.,. whether they are above or below their targets), and their performance trajectory (i.e., whether
their overall sales performance is improving or declining). The ultimate goal of a Sales Manager when
managing performance should be to unlock the potential of each salesperson and support their team
to continually improve performance.
With that in mind, the Tight-Loose™ performance management framework outlines the optimal
approach to coaching and managing salespeople to achieve higher performance.
The Tight-Loose™ framework acknowledges that performance management in mature B2B sales
organisations is supported by a mix of organisational ‘non-negotiables’ (driven top-down by the
business and enabled by HR) as well as manger-determined processes and practices. Ultimately,
armed with this knowledge, Managers can adopt the management style that best suits each individual
salesperson’s development needs and performance management requirements. They do so across
the three stages of performance management, by applying a ‘tight’ or ‘loose’ approach within each
respective stage.
The Manager’s Tight-Loose™ adaptation of their management style across these three stages will
influence the frequency and intensity of the coaching and performance management each individual
rep should receive. For each of the four Performance Profiles, there’s both a right and wrong
Tight-Loose™ mix, determined by the current performance versus performance trajectory balance.
SET
OBJECTIVES
PROVIDE SUPPORT,
GUIDANCE AND COACHING
EVALUATE
PERFORMANCE
Communicate and agree on
SMART objectives that detail
the right mix of individual
activity, pipeline, behavioural,
learning and performance goals
The approach used to provide
feedback and optimise the
focus, formality, frequency and
depth of coaching provided
(with the salesperson’s input)
Periodic review against the
defined SMART objectives and
agreed activity, pipeline,
behavioural, learning and
performance goals
For each rep, Sales Managers can elect to take a ‘loose’ or ‘tight’ approach
to optimise performance management, with the optimal approach
dependant upon the individual salesperson’s Performance Profile.
Why is this an Opportunity?
THE PERFORMANCE MANAGEMENT ‘LIFECYCLE’

17. © Blackdot 2015 17
OPPORTUNITY #4:
MANAGE YOUR TEAMS’ PERFORMANCE DYNAMICALLY
THE TIGHT-LOOSE™ PERFORMANCE MANAGEMENT FRAMEWORK
OPTIMAL MIX OF TIGHT-LOOSE™ IN PHARMA
Improving
Declining
Below Above
EMERGING
DEVELOPING
“Keep them focussed”
“Expand their horizons”
“Reign them in”
“Let them go for it”
EXCELLING
PLATEAUING
Current Performance vs. Target
PerformanceTrajectory
At each stage of the Performance Lifecycle, there is an optimum mix of Tight-Loose™ that can be used
to manage performance. If people are managed in this way, individual rep performance is able to be
optimised. As an industry however, pharma are getting the mix wrong. As can be seen in the graph
below, in 79% of cases, pharma have deviated from the optimal mix of Tight-Loose™ and have failed to
manage their reps in the way they should be managed based on their Performance Profile.
The performance management style utilised within pharma is wrong in 79%
of all instances.
79%WRONG
21%
RIGHT
LOOSETIGHT TIGHT LOOSETIGHT LOOSE
TIGHTTIGHT TIGHT TIGHTTIGHT LOOSE

18. © Blackdot 2015 18
OPPORTUNITY #4:
MANAGE YOUR TEAMS’ PERFORMANCE DYNAMICALLY
High performing managers (across all industries) consider the current performance trajectory of each
of their frontline reps in addition to their On-Target-Performance. As discussed in Opportunity #1
(understanding what really defines sales performance), it is essential to gain clarity on the KPIs
that truly demonstrate performance within pharma. This requires thinking beyond just
On-Target-Performance to consider KPIs like CAGR as a relevant measure of performance trajectory.
In doing so, high performing managers are able to effectively categorise their frontline reps into
the Performance Profile (Developing, Emerging, Plateauing and Excelling) that is relevant to them.
These managers then embark on the journey of transitioning each and every one of their reps up
the curve. They do this by setting the right Tight-Loose™ objectives across each of the three stages
of performance management (setting objectives, supporting and guiding progress, evaluating
performance).
So, what does right look like across each of the stages?
What Do High-Performers Do Differently?
What Can You Action Immediately?
Identify whether each of your reps are developing, emerging, plateauing or excelling by
considering their current performance as well as performance trajectory.
Based on the Performance Profile each rep falls into, understand what the correct
Tight-Loose™ mix is across all three stages (setting objectives, supporting and guiding
progress, and evaluating performance) of performance management.
Provide your reps with individually-relevant performance management and coaching
with the correct focus, frequency and intensity based on their profile needs.
SET
OBJECTIVES
PROVIDE SUPPORT,
GUIDANCE AND COACHING
EVALUATE
PERFORMANCE
• Salespeople should always
have clearly defined goals
and objectives.
• Setting objectives should
always be ‘tight’.
• If performance trajectory is
declining, a tight (hands-on,
high-touch) approach to
supporting and guiding
progress is required.
• If performance trajectory is
improving, a loose (hands-off,
low-touch) approach to
supporting and guiding
progress will be more
appropriate.
• If current performance is
below target, a tight
(consistent and specific)
approach to evaluating
performance will be required
• If current performance is
above target, a loose (ad-hoc
and general) approach to
evaluating performance will be
more appropriate
1
2
3

19. © Blackdot 2015 19
OPPORTUNITY #5:
INCENTIVISE TO DRIVE BEHAVIOUR CHANGE
Across our entire Blackdot Benchmark™ database, the number one motivator for sales reps is financial
incentives. They are a critical building block in ensuring you possess an effective, high-performing sales
culture that drives the right sales behaviours.
Yet the average pharma reps’ incentive scheme is significantly smaller than those of non-pharma reps
in absolute dollars. A pharma rep stands to gain only 3-12% of their base salary, compared to 11-32% of
the base salary of a rep in a non-pharma industry.
Even more puzzling is that within pharma companies, when compared to non-pharma industries,
higher performance is not rewarded with higher pay. This has significant repercussions. For your
high performers there is no incentive (or positive consequences) to outperform. These individuals
will consequently often seek out organisations that do reward and recognise their high performing
attributes through various discretionary bonus and incentive schemes. These flight risk consequences
have the potential to materially impact future top and bottom line results. For your core performers,
it simply reinforces the perception that there are no consequences for mediocre or poor performance
(See Case Study below).
Why is this an Opportunity?
The average pharma rep’s at-risk incentive scheme is on average 14%
smaller than that of a non-pharma rep.
You cannot have a performance culture without positive and negative
consequences of over and under performance
A comparison of bonuses as a percentage of the total rep’s compensation
PHARMA VS. NON-PHARMA BONUS COMPARISON
10th 50th 100th
Pharma
Non-Pharma
On Target-Performance Deciles
Bonusasa%ofTotal
Compensation
0%
20%
40%

20. © Blackdot 2015 20
OPPORTUNITY #5:
INCENTIVISE TO DRIVE BEHAVIOUR CHANGE
One major pharmaceutical company that benchmarked with Blackdot illustrated the risk posed by
an incentive compensation scheme that was poorly aligned to performance.
CASE STUDY
When it came to perceptions of whether the incentive compensation scheme was considered fair
and equitable, the vast majority disagreed. When asked if it was based on merit, that same number
now strongly disagreed. Finally, when asked whether it drove the right focus and behaviours, each
and every high performer disagreed.
These numbers are in resounding contrast to the company’s poorest performers, all of whom
believed the incentive compensation scheme was fair and equitable, based on merit and drove the
right focus and behaviours.
... FAIR AND EQUITABLE? … BASED ON MERIT?
IS THE INCENTIVE COMPENSATION SCHEME …
… DRIVING THE RIGHT
FOCUS AND BEHAVIOURS?
Core
Performers
High-
Performers
Core
Performers
High-
Performers
Core
Performers
High-
Performers
Agree33% Agree100%
Disagree33%
Strongly
Disagree
33%
Agree33% Agree100%
Strongly
Disagree
67%
Disagree33% Agree100%
Strongly
Disagree
67%

21. © Blackdot 2015 21
OPPORTUNITY #5:
INCENTIVISE TO DRIVE BEHAVIOUR CHANGE
High performing pharma companies recognise that to have a market-competitive incentive
compensation scheme that is perceived as fair and equitable, based on merit, and drives the right focus
and behaviours is an absolute non-negotiable to being the high-performing sales organisations they
aspire to be.
These companies know they cannot expect to have a true performance culture unless there are known
consequences for both under-performance and over-achievement, and reflect this understanding
through the incentive schemes applied throughout their organisations.
As evidenced by the External Benchmark, high performing companies implement incentive
compensation schemes that are larger in both absolute dollar terms and the relative extent to which
they reward higher performers with higher pay from the pool of available discretionary incentive
dollars.
Whilst some operating environments are more regulated than others, and result in an institutionalised
cap on the absolute amount able to be invested in the pool of available discretionary funds, the
principle of rewarding higher performance with higher pay remains unchanged.
What Do High-Performers Do Differently?
What Can You Action Immediately?
Determine the extent to which your company has an ‘at risk’ incentive scheme that
reflects cross-industry levels of performance pay.
Ensure your performance management framework is able to effectively reward
over-achievement and incorporate mechanisms for dis-incentivising under-performance.
Communicate new BAU (Business As Usual) incentive scheme principles and
performance management frameworks to gain frontline buy-in and promote an
organisation-wide performance culture.
1
2
3

22. BLACKDOT EXISTS TO ASSIST OUR CLIENTS ACHIEVE MORE
REPEATABLE AND PREDICTABLE SALES PERFORMANCE
CONSULTING
SOLUTIONS
BENCHMARKING
DIAGNOSTICS
CAPABILITY
SOLUTIONS
Through our suite of benchmarking, consulting and capability offerings
we are able to provide specific solutions which enable our clients
to gain control and consistency over sales outcomes and growth.
WHY BLACKDOT?
We’re deep subject
matter experts on sales
force optimisation and
effectiveness
Technology-enabled
benchmarking and
diagnostic, consulting and
capability uplift solutions
We deliver actionable
insights, tools and
learning that drives
uplift
We know what good looks
like and have the casual data
to prove it

23. enquires@theblackdot.com.au
www.theblackdot.com.au
Tokyo
MH Yoyogi-Uehara 3F.
3-6-5 Nishihara, Shibuya-ku
Tokyo 151-0066, Japan
+81 03 5465 0367
North America
347 5th Avenue
New York, NY 10016
United States
+44 (0) 20 3551 6894
Europe / Africa
The Broadgate Tower
20 Primrise St
London, EC2A 2EW, UK
+44 (0) 20 3551 6894
Asia Pacific
Suite 1, 185 Gloucester St
The Rocks, NSW 2000
Australia
+61 2 8246 7300
What makes us unique is our total fixation on the use of data-driven, evidence-based techniques
to understand what does (and does not) drive sales performance.
By viewing the ‘sales engine’ holistically, as an ecosystem of component parts that work
interdependently to impact sales results, we’re able to identify the root cause of what’s inhibiting
and enabling your current performance, including quantifying the payoff in actually getting it right.
Armed with this knowledge, we stand alongside our clients who engage us to define, implement and
embed change programs that bridge the gap between ‘hoping’ and ‘knowing’ you’ll deliver top and
bottom line performance improvement.
CLIENT PORTFOLIO
OUR MISSION
Blackdot have completed more
than 400 sales performance
improvement projects, across
12 industries and 142 countries.
We’ve additionally benchmarked
more than 50,000 salespeople,
7,500 Sales Managers and 650
independent sales teams.
CORE INDUSTRY
EXPERTISE
We engaged Blackdot to overhaul our core sales disciplines and enable
our front-liners to best capitalise on their limited selling time. Blackdot
designed and implemented a holistic sales framework and sales
management solution which consists of a bespoke sales process, pipeline
methodology and sales management rhythm all tailored to our unique sales
environment and global business model.
As a result of this more consistent and repeatable approach to proactive
business development we’ve already seen double-digit year-on-year
revenue growth in the first 12 months.
- Andrew Stuart
Head of Futures, Macquarie Group
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