WHY “SALES CLOSING” IS THE MADDEST PRACTICE OF PHARMA INDUSTRY?

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September 10, 2019
WHY MANY PHARMA SALES GUYS DIE YOUNG?
September 10, 2019

WHY “SALES CLOSING” IS THE MADDEST PRACTICE OF PHARMA INDUSTRY?

Everyone associated with Pharma sales have been victims or participants of“sales closing” madness at some or other time. Look at the following practices:
-After 25 th of each month, every pharma sales guy is on the edge. No one can get leaves even if you have to take yourwife to a Hospital.

All Area Managers and Regional Managers park themselves at HO, close to CFA, almost cancelling
field work and tour for almost 7-10 days.
-Too many phone calls and Emails. In the olden days, it was telegram after telegram.
-The famous Delhi Pharma company Managers used to use BC/MC bad words liberally after 25 th. Those who did not use these bad words were called “sissies”. Many others in the industry copied this wonderful management strategy. This company folded up much later, that is another story.
-At many CFA’s ASM’s/RSM’ssleep at there and boast later “ Our entire team slept at CFA “ or “We left only 4 AM!”
-During the last few days, bonus offers and credit periods are given liberally by field Managers.
-In many Companies, orders are “manufactured” at 2 AM midnight at CFA and people go home after “achieving” target! Even buyer does not know what was purchased!
-There is a Mumbai Pharma which has asked all PMs to stay at HO for the last three days and offer credit period up to 120 days for all orders collected. This has happened in March 2019!
-I worked for a Company where what was billed in the previous month was yet to reach CFA, [popularly called “transit billing”], new billing was planned. They went even further by billing what was yet to be taken up for production. ”Under production billing:”! In the same Company, the President used to ask GMs and NSMs to go on tour till 10th of next month and “sales closing” used to take place after 10 th of following month. My ideology and
ethics did not allow me to continue there for long.

I was part of this madness and I had very little power to change the madness till I became a senior enough guy. Then I did the following:

-Asked ASMs and RSMs to tour or do field work till almost last days of the month.
-Made a rule later that no Manager can visit distributors of CFA without permission during last week.
– Insisted on seeing number of customer calls done by Managers on the last day.
-If not signed and sealed or Email , no order to be executed.
-Removed credit period sanction power from everyone right up to GM.

Most dramatic decision of all- Go to temple/church or whatever on 31 st evening and take family out for dinner, to celebrate the month’s achievement!
-In one Company, I asked many distributors to rebook goods back if they do not pay. This resulted in major objections from Finance chief.                                                                                                                                                              Each of these decisions have been dramatic and unpopular with many powerful groups within the Company. These dramatic decisions based on closing of sales were based on highly rational fundamentals.

What are these rational fundamentals?
-Pushing goods and false billing are highly unethical and it as good as” living off”on future earnings. It is similar to taking money from one’s credit card to “pay off” debt of another credit card. You are sinking deeper and deeper in to “false sales” and corporate dishonesty. With these fraudulent sales, incentives and promotions are decided , perpetuating dishonesty across the organisation and in to next generation of leaders.
– 99% of the sales closing malaise comes from Company leadership. It could be MD/VP/GM.But the victims of this “sales terror” are field sales guys.
-Pharma sales primarily come from Doctors and not stockists.
-Doctors support depend on quantity and quality of calls or PR as the case may be.

Selling is an intelligent game coupled with great relationship building skills. It is not based on threat, fear, insulting remarks etc
– Values and financial discipline must be given equal importance to selling or management skills.
-No sales guy should be given power to decide credit periods and liberal bonus offers as these will have serious implications for the finance and the very survival of the Company.
-By diverting time and energy from calls to “closing”, you are going on a “suicidal mission”.No one must be appreciated for this. I would call it sales terror!
-Primary sales are highly predictable if proper secondary sales records are maintained. If average trade secondary sales for the past 3 months are Rs 10 lacs, if the Manager is demanding Rs 15 lacs primary sales for the current month, all of us know he needs psychiatric help! By shifting focus from sales closing to prescription generation or Doctor management, invariably Companies do well both in terms of revenue as well as profitability. But, such change is possible only if the senior management has a combination of marketing skill and ethics.

A lot of sales guys tell me “Sir, Our Company has a terrible sales closing culture, what should I do?’
You cannot change bosses, however you want!
My advice is very simple :
Leave the company which has too many “sales closing mad guys” on top.
Join a Company which discusses strategies, segmentation, positioning, products, perceptions, communications, investments, PR management, skill development, EQ development and so on.

And, you are guaranteed to live longer.
Your wife will have a husband for longer period!
Your kids will have a father by their side when they get married.
Or you may not see your 50 th birthday.
Make your choice.

Best wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com

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