Reuters Events | Pharma

Thought leadership and innovation for the Pharmaceutical Industry

Consistent changes within the NHS have continued to increase the distance between purchasers, prescribers and end users of medicines.

Consistent changes within the NHS have continued to increase the distance between purchasers, prescribers and end users of medicines. This has created two challenges for the industry the selling process is now more complicated with different customers having different needs and wants requiring a more strategic approach to selling. Customer needs vary from financial ones, to improving health outcomes, achieving national targets and decreasing hospital admissions to name but a few. There is a second issue arising from the fact products are not developed with customers or end users in mind. They are developed to meet met or unmet clinical needs. Whilst there is little we can do to influence product development there is much to be done to help service development with our key strategic partners within the NHS.

Key account management (KAM) appears to be the answer to meet these opportunities and challenges the changing NHS presents to us. There appears to be currently much association with KAM and the downsizing of sales forces. Whilst this may be necessary for some of the super size sales forces it may not be the answer for all companies. Research from other industries where KAM has been successfully practiced for 15 or so years suggests to effectively work key accounts it is not possible to manage more than 25 at any one time. For some companies this may mean an increase in the size of the sales force. To make this investment in the current economic climate may require a leap of faith for some companies and courage to move away from the old ways to embrace the news opportunities.

If KAM is the answer then I guess it may be pertinent to ask why some companies not embracing it fully in a strategic manner? It appears most companies are viewing KAM as a tactic deployed by the sales force and not a strategy employed throughout the whole organisation. Perhaps there is still a view that we will return to the old ways and there is little need for adopting a new model of selling. Work performed by Lorange & Nelson (1987) in the area of organisational change suggests companies may resist changing because they are blinded by their previous success. This blindness can delude them into not realising their approach to markets maybe out of date and not inline with the requirements of the market, they term this entrapment. I wonder could this explain the reticence of some companies to truly embrace KAM in a strategic way, hoping a tactical approach may pacify the customers. Are we still stuck in the past hoping that the good old days will soon return?