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  • Writer's pictureKarsten Schmidt

How to seamlessly connect the strategic with the operational resource planning process

In previous articles I have already written about the importance of sales response modelling in order to optimize resource allocation (if you haven´t read them yet, all those articles are available through the links at the end of this article). On a strategic level the outcome of such analysis will indicate how much field force and non-field force investments should be spent per promoted brand. One key question is how to translate these strategic recommendations into operational plans which can be used with limited effort and complexity by sales forces, in other words how to connect the strategic with the operational planning process seamlessly.

In order to do so as a first step we need to have a closer look at the specialties relevant in different therapeutic areas. The overall prescription split per specialty needs to be assessed in every therapeutic area as well as the level of General Practitioners (GPs) refill scripts if these occur. The latter will reduce the prescription weight of GPs as refill scripts mean that a treatment which has been initiated by a specialist is just being continued by the GP without any change. After this adjustment we will have the value split established per specialty, therapeutic area and promoted brand. Understanding the overall universe of a given specialty (total number of individuals) and assuming a certain level of concentration (somewhere between very high and very low) per specialty then allows to break down the long-term incremental sales of the promoted brands per specialty. For promoted brands which can be exposed to prescription (Rx) change at pharmacy level it is also recommendable to assess to what degree this is happening. Consequently it may be required to also allocate resources at pharmacy level to limit the impact of such Rx change occurrences. Having identified the proportion of incremental sales that can be attributed to a given specialty allows to take decisions with regards to coverage and interaction frequency as well as multi-channel marketing (MCM) investments to customers along the concentration curve (from high to low potential) . Investments need to be stopped at the point at which the long-term incremental sales generated by the lower customer quantiles are equal to the costs of the customer engagement for the same customer group. This will ensure that the overall promotional Return on Investment (RoI) for a given specialty will be at a satisfactory level. Illustration of breaking down strategic resource allocation to operational plans at specialty level

Now that the number of planned interactions has already been decided for a given specialty and a given brand it is often also the case that different promoted brands are relevant to the same specialty. In this context another challenge is to determine the detail weighting for different brands. Detailing weights mean that if for example product A is set at 60% and product B at 40% then brand A should receive 60% of the time spent in the interaction with the customer whilst brand B should receive only 40%. To establish these percentages it is necessary to assess the value split proportion that the given specialty has for the different brands as well as the overall profit contribution that the individual brands will generate. The combination of those two factors will determine the overall detailing weights that individual brands should receive to a given specialty.

Connecting strategic #resourceallocationoptimization with the operational planning process can be a challenging task. This articles shows how it can be done and which important parameters have to be considered. #SFE #SalesForceEffectiveness #CommercialExcellence


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