Module Learning Outcomes Assessed
1.  Evaluate the organizational factors that contribute to success within the
pharmaceutical industry.
2. Illustrate the importance of the individual’s contribution to the organization and factors affecting behavior and performance
3. Discuss and evaluate the main theories of leadership and the attributes of a successful leader.

PHARMA TALENT: PAYING SALES FORCE BONUSES WITHIN A FIXED BUDGET

Holden Garabedian, a regional business manager for Pharma Talent, was sitting at home mulling over the structure of and problems with his newest sales team in Ontario. Pharma Talent was a contract sales company for pharmaceutical companies across Canada. The company promised its clients that its representatives would drive sales at a lower cost than what the client would incur if it had its own sales force.

Garabedian’s main concern was the bonus structure for his representatives. In order to meet the client’s high standards, Pharma Talent had all teams on a pay-for-performance structure. Historically, the company had contracts with products that targeted physicians (e.g., prescription drugs or medical devices). Garabedian, who had joined Pharma Talent in July 2011, was leading the company’s first contract with an over-the-counter (OTC) product. In this contract, representatives called on pharmacies across Ontario.

Typically, the pay-for-performance structure was based solely on the sales made by each representative. Unfortunately, Garabedian noticed immediately that this was not in line with how the client wanted to drive business in each pharmacy. Furthermore, due to the structure of the different territories in Ontario, many of Garabedian’s team members thought the bonus was unfair and very discouraging.

Garabedian knew he had to fix the bonus structure quickly. He had both the client breathing down his neck as well as his team not working as productively as he would like. He needed to ensure that the bonus structure accomplished three main objectives:

1. That it promoted behaviors that aligned with the client’s objectives for the team and reinforced behaviours that ensured that Pharma Talent was meeting the client’s goals.
2. That the team felt that it was fair and that everyone had an equal opportunity to be the top performer.
3. That the total cost of the sales team was within Pharma Talent’s budget for this particular account.