1. Sales Force of the Future
Presented to:
The Pharma, Biotech & Device Colloquium
June 7, 2004

2. Future Truths We Hold to be Self-evident
Coverage Points
Future Truths We Hold to be Self-evident
Future Sales Force: “3F” Principles of Design
Fusion
Flexibility
Fit
Getting There
Barriers to Design Principles
Summary

3. Future Truths We Hold to be Self-evident
Physicians prescribing behavior will match product to patient subject to patient then payer influence
Success in satisfying unmet clinical needs first will drive therapeutic market dominance
Blockbusters will derive from bold investments in research, development
Blockbusters will be built to reach all healthcare professionals, payers and patients
The meaning of critical mass will forever be reinvented
Drugs will remain political and by extension high margins are a privilege, not a right
Exclusivity periods for drugs will be continually challenged by fast followers, IP attacks and other “unfriendly threats”
Healthcare technology’s ability to change behavior will elude our ability to predict the timing, pace and implications of change

4. Notable Implications
A much more fluid, dynamic environment is predicted
Capacity for and ability to change will be critical
Operational capabilities will need to reflect this environment
This provides the context for sales force futuringdraws a set of conditions upon which we have viewed the sales force of the future

5. Future Sales Force: “3F” Principles of Design
1st Principle: Fusion
Representatives will act as “Integrated Content Delivery Systems,” fusing a variety of mediums and channels to connect healthcare professionals to product content experiences
Corollaries:
The sales representative will be the centralized conduit, personally connecting healthcare professionals to product content
The sales representative will deliver content in two fundamental mediums:
Personally via 1:1 interactions
Digitally via interactions customized to mediums of choice by healthcare professionals
The sales representative will have the ability to distribute content at two levels, 1:1 and 1:(1+X)

6. Future Sales Force: “3F” Principles of Design
2nd Principle: The Flexibility Formula
Manufacturers will be able to increase/decrease total sales force size by X% on 12 –24 weeks notice, for periods of up to 18 months, with 0% increase in permanent overhead
Corollaries:
A core sales team will exist
The total sales force is a flexible resource, surging and shrinking with periods of growth or attack and periods of market reduction or defense

7. Future Sales Force: “3F” Principles of Design
3rd Principle: Fit, for Purpose
Sales Force will be tiered, with tiers tied to product lifecycle stage to maximize product margin
Corollaries:
There are 4 phases of product lifecycle (Periods are subject to market conditions and brand lifecycle mgmt, strategies)
Launch Period (-18 months to +18 months)
Growth (+19 months to 36 months)
Maturity (+37months to 60 months)
Decline (+60 monthsexpiration)
One sales force cannot support all phases of a product’s life cycle to maximize margin opportunity
The points of change in a product life cycle must be clearly marked

8. Pharma Field Force of the Future
Reminding/ Harvesting
Leveraging/ Reinforcing
Investing/ Establishing
Core Sales Force
Supplemental Core
Harvest & Support Team
Permanent
Semi-Permanent
Highly Flexible
• Market Development
• Product Launch
• KOL relationship
• Relationship-Driven
• Drivers Growth
• Defends Competitive Threats
• Raises Barriers to Entry
• Trained & equipped for brand maintenance
Profiles of Teams hired, engineered and supported for specific purpose

9. Getting There Fusion Principle Fit Principle
Increased investment in enabling technologies
Broadband Infrastructure
CRM Capability
Internet-driven content & communications systems
Cultural: Representative as center point for all product content
Flexibility Principle
“Plug & Play” Partnerships with fully integrated systems architecture
Cultural: Sales force is a flexible asset
Fit Principle
Brand scorecards clearly underscoring points of change in lifecycle
Cultural: Sales Force is ubiquitous, but tailored and tiered

10. Barriers to 3F Principles We’ve Heard
Can’t Disarm, Big Sales Force is Still Working
Not calling for disarmament, suggesting redeployment that can still provide current SOV and higher return on sales, which has declined 25% last 4 years
Current Sales Force critical bridge to Pipeline
Current forces, on an industry basis, spend 35% of time on mature and declining products; inefficient
Flexibility requirements are daunting
Principles of Just in Time inventory management have revolutionized the business cycle; the idea here is the same
Fusion is happening now, not new
Rep role is tough; engineered for dynamic interpersonal contacts with physicians but increasingly pushed to drive promotional events as real content delivery medium; small meeting market has a ___% CAGR last 5 years

11. Sales Force of the Future
Success in future will recognize:
Shifts in representative role from primary agent for driving treatment change to hub for Integrated Content Delivery System
Emerging trends in IT enable return to content-rich selling and improved customer experience
Inflection points connecting Launch-Growth-Maturity-Decline can and must be clearly marked
Traditional allocation strategy of “one size fits all sales force” is inefficient and can be replaced by tiered sales force structure “fit to purpose”
Greater flexibility is critical to cope with faster market forces