1. Pharma Key Account
Management Report 2011-12
The successful implementation of KAM to increase
stakeholder satisfaction, market share and profitability.

2. Pharma Key Account
Management Report 2011-12
Author Disclaimer
David Wright, Imonic Ltd The information and opinions in this report were
prepared by eyeforpharma (FC Business Intelligence)
and its partners. FC Business Intelligence has no
obligation to tell you when opinions or information
in this report change. eyeforpharma makes every
effort to use reliable, comprehensive information,
but we make no representation that it is accurate
or complete. In no event shall eyeforpharma (FC
Piers French, Research Manager Business Intelligence) and its partners be liable for
any damages, losses, expenses, loss of data, loss of
Clare Jackson, Editor opportunity or profit caused by the use of the material
or contents of this report.
No part of this document may be distributed,
resold, copied or adapted without eyeforpharma’s
prior written permission.
© FC Business Intelligence Ltd ® 2011
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3. Pharma Key Account Management
eyeforpharma helps pharma companies adopt business models that place
patients’ needs for affordable and accessible healthcare at the centre.
As an ‘eye’ for, and on, the industry, eyeforpharma exists:
■■ to help pharmaceutical companies stay clearly focused on the core reasons
they exist,
■■ to give them the strategic tools they need to be successful in truly serving
patients with ingenuity and real value, and
■■ to continue to innovate to meet changing healthcare realities.
eyeforpharma has organised conferences and offered strategic advice for the
pharma industry since 2002. From that date, our business has had 30% growth
year on year. Our mission continues to be the advancement of communication and
information exchange within the dynamic and ever-changing healthcare industry.
Biography of the author
David Wright, a Director with Imonic Ltd, specialises in Strategic Account
Management. David is leading research into Key Account Management (KAM) in
pharma. He has provided consultancy and training services to many top pharma
companies, including Pfizer, GSK, AstraZeneca, Sanofi and BMS.
David has combined his expertise in pharma with his experience leading account
management projects with blue chip companies for 20 years. His experience in
automotive, software and aerospace, provides pharma with invaluable insight into
KAM best practices and the future direction of account management in pharma.
David has been involved in both industry and academic research, obtaining an
MSc (distinction) from Stirling University and is part way through a PhD from
Warwick University, David’s research for both academic studies focuses on
KAM. He has been active in the Pharma community, speaking at a number of
eyeforpharma events, and will be Chairman at KAM Europe 2011 in November.
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4. Foreword
Pharma Key Account Management
Industry Review
“This eyeforpharma report is valuable for anyone seeking to
introduce or improve their KAM strategies. It is a must-read for
pharma executives grappling with Key Account Management.”
Francesco Frattini, Healthcare Development & Access Director, Roche, Italy
With over 20 years experience within the Pharmaceutical Industry, holding a number
of key roles in Business Development, International Regulatory Affairs and Healthcare
Development & Access. His roles have included a wide range of responsibilities from
Strategic Planning to Health Economics, Pricing to Business Analysis, Funding to
Licensing.
“This report contains useful information on how to identify & deliver
value to customers. It provokes debate and achieves consensus
amongst seasoned Key Account Executives, as well as offering
insightful, practical advice for those recently adopting KAM. This
Eyeforpharma report will play an important role in getting the
industry going in the right direction when utilising KAM.”
Lee Gittings, Regional Accounts Director - Business Effectiveness - Europe &
North America. Pfizer
Over 20 years experience in the Pharmaceutical industry, occupying and excelling in a
number of different sales, marketing and business development roles. Lee has played a key
role in evolving the Account Management operating models in several countries, such as
the UK, leading the Local Health Economy Account Planning Approach (2007 - 2010) and
the USA, where he co-authored the US Primary Care strategic initiative “Pharma Selling
2.0” which has since secured resources to implement the recommendations across the US
within the next 2 years (2010 & 2011).
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5. Foreword
Pharma Key Account Management
“This is a very extensive and informative report which will be
invaluable for any pharmaceutical executives looking to implement
and embed a key account management culture. It contains some
excellent information about virtually every aspect of KAM and
it is great to now have a KAM reference that relates totally to
pharmaceuticals.”
Allan Mackintosh, PMAP Performance Manager at Grunenthal UK Ltd
Allan Mackintosh is a Performance Manager with Grunenthal UK who specialises is Key
Account Management and high performance team development. Allan joined the industry
in 1982 and has worked with Ciba-Geigy, Fisons and the GSK group of companies until
2001 when he left the industry to run his training and development consultancy alongside
a teambuilding business. An avid writer of articles and ebooks he wrote for a number of
pharma publications & websites including Pharmafocus and Pharmaceutical field as well as
writing his first book “The Successful Coaching Manager”. In 2009 he was attracted back
into the pharmaceutical industry as he is excited by the changes and approaches that the
industry are taking particularly with regards to key account management and partnership
working with the NHS.
“This eyeforpharma report has come at an important time for those
seeking to benefit from Key Account Management. This report is
based on an interesting dialogue which challenged my thinking
and made me reflect on how I approached KAM. The information
contained will help me improve my strategies and make tangible
improvements to my business.”
Darrell James, Business Analyst, UCB
Darrell has held a number of varied roles over the last 14 years within the industry both in sales
and business information and is currently UCB’s Business Analyst. During this time Darrell has
been a pivotal player in migrating the commercial operation to its current key account model,
where the project has seen a new reporting platform being introduced and a wholesale shift in
how Business information supports and measures sales force behaviours.
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6. Acknowledgements
Pharma Key Account Management
Acknowledgements
Thank you to all of the interviewees, peer reviewers and companies that
contributed to the creation of this report. Without their support, this report
could not have been made. 24 in-depth interviews were held with top pharma
companies that included Abbott, Pfizer, BMS, Roche and Novartis.
Additionally, a special thank-you must be reserved for the following individuals
who contributed quotations directly, either in a professional or personal capacity:
■■ Ifti Ahmed, Head of Sales Academy, Global Sales Excellence at Merck Serono
■■ James Bailey, Regional Business Manager at Astellas Pharma
■■ Heléna Bargiel, Global Sales Force Excellence Manager at Leo Pharma
■■ Ricardo Castrillo, Business Unit Director at Ipsen Pharma
■■ Dominique Côté, European Regional Director Field Force Effectiveness,
Emerging Markets Europe, Russia, Turkey and Israel at Pfizer
■■ Darrell James, Business Analyst at UCB
■■ Francesco Frattini, Healthcare Development & Access Director, Roche, Italy
■■ Lee Gittings, Regional Accounts Director - Business Effectiveness - Europe &
North America with Pfizer UK
■■ Dr. Mohamed Khater, Head of Marketing & Sales Operations, region EMEA at
Bayer Healthcare
■■ Dr. James Kingsland, President National Association of Primary Care and
National Clinical Commissioning Lead
■■ Roman Koschuk, Sales Director with Reckitt Benckiser
■■ Bronwyn Lund, International Project Manager, Patient Support: Team
Dermatology, Corporate Marketing and Medical Affairs at Leo Pharma
■■ Allan Mackintosh, PMAP Performance Manager at Grunenthal UK Ltd
■■ Martin Parkinson, Customer Effectiveness Manager with Pfizer Europe
■■ Chris Quinn, Training & Development Manager UK with Shire
■■ Mary Stutts, Vice President, Global Corporate Communications at Bristol-
Myers Squibb
■■ Scott Symes, Business Unit Manager at Grunenthal UK Ltd
■■ Jeroen Valkenburg, Commercial Effectiveness Manager at Genzyme
■■ Simon White, Head of Learning & Development at Janssen-Cilag
■■ Chantal Willems, Hospital & Key Account Manager at AstraZeneca
■■ Amy Williams, Senior Product Manager, Diabetes Marketing at Sanofi-Aventis
Thank you also to everyone who contributed to the research contained within this
report, including the 956 people who answered the eyeforpharma surveys, the
peer reviewers, and everyone who spoke to Piers French to ensure that this report
reflected the needs of the pharma community.
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7. Contents
Pharma Key Account Management
Contents
About eyeforpharma.................................................................................................... 3
Biography of the author .............................................................................................. 3
Industry Review ............................................................................................................ 4
Acknowledgements ..................................................................................................... 6
List of Figures................................................................................................................ 8
Executive Summary ..................................................................................................... 9
Introduction ................................................................................................................ 15
Methodology ............................................................................................................... 16
Key Account Management Explained ................................................................... 18
1. Organisation.......................................................................................................... 27
1.1 Introduction ....................................................................................................27
1.2 Why organisational change is needed and on what scale .............................30
1.3 Who is responsible for KAM? .........................................................................33
1.4 Cultural and practical challenges in transitioning to KAM .............................38
1.5 Structural impact of transition to KAM ...........................................................45
1.6 Balancing a customer-led organisation with commercial gains
(and the Pendulum Swing) .............................................................................46
1.7 Getting the Plan right - setting objectives ......................................................48
1.8 Understanding and insight .............................................................................49
1.9 Reviewing objectives ......................................................................................51
1.10 Timelines ........................................................................................................53
2. Measurement ....................................................................................................... 54
2.1 Measuring the impact of key account management ......................................54
2.2 What are we measuring? ................................................................................55
2.3 How to measure KAM ....................................................................................57
2.4 Getting the incentives right ............................................................................65
2.5 Technical hurdles to KAM measurement ........................................................67
3. Value Delivery ........................................................................................................ 70
3.1 What is ‘Value’ and what does it mean to pharma? .......................................70
3.2 Value delivery examples .................................................................................73
3.3 Different approaches to value propositions ...................................................78
3.4 Value proposition challenges..........................................................................85
3.5 Future .............................................................................................................91
Industry learnings ..................................................................................................... 94
List of Abbreviations ................................................................................................. 99
References ................................................................................................................ 100
Thank you .................................................................................................................. 101
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8. List of Figures
Pharma Key Account Management
List of Figures
Figures
Figure 1 Investing and divesting sales resource ..........................................................23
Figure 2 KAM relational development model ...............................................................24
Figure 3 Bow tie relational status in pharma ................................................................25
Figure 4 Diamond relational status in pharma..............................................................25
Figure 5 Customer Centricity Continuum .....................................................................27
Figure 6 KAM outputs in terms of planning, selling and review ...................................34
Figure 7 Team Approach to Account Management at Grünenthal ...............................37
Figure 8 Clarity, vision and consistency of Account Management
strategy and language ....................................................................................39
Figure 9 Clarity and vision across the organisation......................................................39
Figure 10 Consistency of Account Management Language ..........................................39
Figure 11 Coordination of contact visits and outcomes within pharma .........................40
Figure 12 Customer contacts that see different people from same pharma..................40
Figure 13 Mix of sales models in the transition to KAM .................................................45
Figure 14 The pendulum swing in KAM .........................................................................47
Figure 15 The five SMART criteria for setting objectives ...............................................49
Figure 16 Use of account plans in pharma companies ..................................................50
Figure 17 Account plan sharing between pharma and customers ................................50
Figure 18 Use and transparency of account plans ........................................................50
Figure 19 How pharma reviews account objectives ......................................................51
Figure 20 How pharma captures customer feedback on sales interfaces .....................52
Figure 21 How pharma measures sales call rates..........................................................57
Figure 22 Implementation of sales progress metrics. ....................................................59
Figure 23 Feasibility of using patient metrics in pharma ................................................61
Figure 24 Organisation success with KAM ....................................................................64
Figure 25 Ability to measure and communicate KAM performance...............................64
Figure 26 Account manager sales planning and forecasting .........................................66
Figure 27 Transparency to access objectives and actions status ..................................68
Figure 28 A screenshot of a key account homepage example ......................................69
Figure 29 The outcome measures hierarchy ..................................................................71
Figure 30 Value Delivery as a strategic priority ..............................................................72
Figure 31 Value proposition alignment ...........................................................................80
Figure 32 Value proposition design validation flow diagram ..........................................81
Figure 33 Respondents with ‘off-the-shelf’ projects available to them..........................83
Figure 34 Who is equipped to sell Value Delivery Projects? ..........................................84
Figure 35 Value Delivery – Reasons for project failure ...................................................89
Figure 36 King’s Fund Commissioners’ priorities ...........................................................95
Figure 37 A framework to give insight to account managers .........................................97
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9. Thank you
Pharma Key Account Management
Thank you
Thank you for taking the time to read this pharma report on Key Account
Management. I hope you have found it useful, and that it has provided some of the
information on KAM that will help maximise your sales and marketing successes.
This report is intended to provide information on the measurement, organisation
and value delivery with KAM that allow pharma to understand the extent of the
challenges presented by KAM, and the solutions needed to meet them. For
associated articles on this topic - and others - please visit eyeforpharma website.
Both eyeforpharma and I are constantly looking to engage with pharma executives
to provide business critical information. If you would like to provide guidance on
where we should research, are interested in peer reviewing or being profiled in a
pharma report then I would enjoy talking to you further.
In addition, I have created pharma reports that provide a thorough analysis of
pharma’s emerging markets and e-Marketing. For more information, please get in
touch.
This report is only the start of the Key Account Management discussion. If you
are interested in talking further about this report, Key Account Management or
the needs of the pharmaceutical market generally, then please do not hesitate to
contact me.
Piers French
Business Research Manager
Eyeforpharma
E: pfrench@fcbusinessintelligence.com
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