Cabot Pharmaceuticals Inc.
Jorge Mora Ramos Grupo 3
Cabot Pharmaceuticals Inc. The case study describes the 12-year career of Bob Marsh, a pharmaceutical salesperson. Bob Marsh is eventually asked to resign from his position at Cabot Pharmaceuticals. Soon after his termination from the company, Bob's former customers begin to complain, and the company's vice president of sales is asked to investigate Bob's termination and to decide, what to do.
The case study addresses issues of aligning strategy and sales efforts, evaluation criteria of pe rformance, and on-going performance management in field selling.
How does selling work in this industry? Cabot Pharmaceuticals, Inc. (CPI) sells prescription drugs for the medical and dental p rofessions to drug wholesales and drug stores (for resale to the general public by prescription) or to hospitals and physicians.
What is the customer's buying process? In order to serve both target groups CPI has established two sales forces. First, a team-based sales force that managed care organization (e.g. HMOs) and second, a direct sales force, consisting of 500 individual detailers, that target hospital personnel, doctors and dentists.
In the latter, a sale is the result of a carefully managed customer relationship, which consists of phone calls and personal visits. The direct sales force is expected to make six to nine doctor or hospital calls per day. The main goal of such calls is to nurture the relationship and schedule personal meetings, with one of the doctors. CPI executives consider their detailers (direct sales force members) as „second to none“ in the business. In addition to the personal relationship, a good education and social skills are highly critical factors to win the trust and loyalty of the doctors.
CASE BACKGROUND
Cabot Pharmaceuticals Inc.
Jorge Mora Ramos Grupo 3
Information About Marsh While Hiring Him
Academic Credentials • Top Flight Pharmacy School Sales Experience • At a Drug store, successful Military Experience • Naval Pilot, good service record Family and Community • Full family and community life Regional Fit • Grew up and lived in Toledo where he would work
S T H G N E R T S
Excellent customer rapport
Lack of planning and untidy record keeping
Loyal and sincere employee
Non identification with company promotion policies Cluttered sample bag and car
Cooperative with managerial instructions Citizenship with fellow sales representatives
Who Supervised Marsh?
Evaluations
John Meredith
1992-1997
High Experience
Below Standard to Above Average
Bill Couch
1997-2000
High Experience
Satisfactory to Well Above Average
Jim Rathburn
2000-2002
Low experience
Satisfactory to Probation to satisfactory
Vince Reed
2002-2003
Low experience
Satisfactory to Completely – unsatisfactory to probation
Antonia Wilkens
2003-2004
Low experience
Probation Evaporates
Ted Franklin
2004-2004
Medium experience
Fired
HONEY MOON UNDER MEREDITH AND COUCH
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While interviewing Bob Marsh, Meredith said he was impressed with Marsh, and rated him high in sincerity, learning ability and affability. After hiring Marsh and training him, Meredith felt he had made an excellent decision in hiring him. He did superbly with his customers. Of concern, though not serious, was: His sample bag is cluttered and poorly organized and often did not have the appropriate promotion literature to accompany the product being discussed. (see page 3) Yet, John Meredith moved Marsh’s rating from below standard to completely satisfactory in 2 years
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Bill Couch took over from John Meredith in 1997 (5 years later). He was very impressed with Bob Marsh’s rapport with his customers, throughout his territory. He noticed that Marsh’s planning and record keeping was poor Yet he rated Marsh as above average and later as well above average. Marsh salary went up under Couch from $ to $ in a period of three years CPI president sent Marsh a letter thanking him
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Steady progress under both Meredith and Couch during exploration stage Both managers pointed out his lack of planning and record keeping Indications of an inherent personality trait of lack of an eye for detail manifested in untidy unkeep of bag and car Lacks the urge to work on non important record keeping and follow up Predisposition to think of selling as an art rather than science manifested in relationships with customers (inborn vs learned) Motivation seems to be achievement of end goals (sales volume and long term relationship) and not on the paraphernalia. But, still shows adaptability to improve on aspects he thinks as non important to keep managers in good humor.
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W E A K N E S S
Cabot Pharmaceuticals Inc. STRENGTHS
Jorge Mora Ramos Grupo 3 WEAKNESSES
+ A hard worker - loyal, dedicated, and anxious to do well + well-received by physicians and hospital personnel; very good customer rapport + appreciates and follows instructions and suggestions + cooperative and helpfull with fellow associates + good number of Marsh’s physicians increased CPI prescriptions in recent month. Hospital sales were also showing gains.
STRENGTHS
- should overcome tendency to prejudge customers and promotion programs - bad work habits and personal organization - need for better planning, followthrough, and responsiveness to company policies
WEAKNESSES
+ Outstanding reception in physician offices and drugstores is a great asset
Work performance and his attitude graded as Well Above Average.
+ most gratifying improvement in drugstore sales + good acceptance by fellow associates
- shows „indifference“ to organization (e.g. little preparation before seeing physicians, not definite plan or method once in the physician’s office)
+ contributions at district meetings greatly appreciated
- should be more responsive to management directives
+ excellent attitue and company loyalty
- should give more attention to planning and organization - overall work performance was below standard - attitude: standard
TORRID TIME UNDER RATHBUN • • •
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New manager with new eccentricity. Too detail oriented to Marsh’s comfort. Marsh takes recourse to falsifying facts to avoid being constantly under the scanner. Shows signs of helplessness while signing probation agreement. Still tries to mould himself in the establishment stage of career. A free flowing affable character finds himself as prisoner of rules. Finally passes the Rathbun test.
S H T G N E R T S
+ excellent rapport with virtually everyone in his territory
- dissatisfaction with Marsh’s record in establishing new products with physicians - poor penetration with dentists - „lack of organization was beyond Rathburn’s comprehension“ - poore attitude - careless organization - inattention to planning and follow-up - missed sales opportunities „An improved attitute as well as better organization, planning and follow-up would remedy Marsh’s performance.“
CONTINUED AGONY UNDER REED AND WILKENS • •
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W E A K N E S S E S
Finds himself reporting to much younger lot. Lack of career advancement seems to take a toll as Marsh reverses ground gained under Rathbun. ( Return to untidy bag and car) Managers may be going by past records of Marsh’s files. Even Wilkens notices only old attributes in her short association with Marsh. No manager may be willing to develop a fresh perspective about Marsh other than old appraisal reports. Repeat probation may have shattered Marsh during his maintenance stage of career. Constant debacle turns Marsh passive.
Cabot Pharmaceuticals Inc.
Jorge Mora Ramos Grupo 3
Vince Reed
Antonia Wilkens
STRENGTHS
WEAKNESSES
+ performance was satisfactory
- physician sales were not as they should be
+ impressed with customer rapport
- slow acceptance of new products among Marsh’s customers - could follow directives more promptly - organization was still deficient - disorded samples and promotional literature in his bag and car - records of hospital and wholesaler personnel was inadequate Performance level had slipped: completely unsatisfactory.
STRENGTHS + Outstanding reception in physician offices and drugstores is a great asset
WEAKNESSES
Work performance and his attitude graded as Well Above Average.
+ most gratifying improvement in drugstore sales + good acceptance by fellow associates + contributions at district meetings greatly appreciated + excellent attitue and company loyalty
CAREER PLATEAU UNDER FRANKLIN Satisfaction with income in comparison with peers. No upward mobility. Burden of unfair treatment from previous 3 managers. Withdrawal during disengagement stage. Continued managerial apathy helped rush the stage. No remonstration during termination reveals how Marsh had left the happenings to fate and reconciled to the fact that the job was no longer his cup of tea. The rejection of even the last request may have catalyzed feeling of reprisal against his beloved company.
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Marsh is perceived as being moody, unfriendly, indifferent, and lethargic Marsh feel behind schedule in reading assignments and collecting required market data
Bob’s Behaviour Analysis •
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Sincere, enthusiastic, quick learner, loyal , dedicated Very good customer rapport Loyal & dedicated to the work & the rm Didn’t leave the rm even after being put on probation multiple times • Willingness to improve • Good working
relationship with fellow associates
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Non-conformance to management directives, company policies and sales objectives.
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Inconsistency in maintaining records & poorly organized sample bag
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Catch-as-catch-can approach, tendency to prejudge the customers
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Lacked in organization skills, planning and follow up activities
Cabot Pharmaceuticals Inc.
Jorge Mora Ramos Grupo 3
Bob’s Analysis •
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Choice: Bob was reluctant to follow management guidelines, but followed his own actions Intensity: Bob had put forth lot of efforts in his territory, the result was rejected in sales performance Persistence: He was continuing his efforts over the years.
Bob’s Ability was great in terms of reaching the expectations of his manager. Lack of motivational programs enabling Bob’s to adhere Management directives, policies. After 10 years of working in Cabot, Bob’s career seemed to have plateaued
Behavioral Factors in Motivation Bob didn’t seem to be motivated by salary hikes alone and Proper motivational tools tail ored to Bob’s Needs were missing and should be designed such that:
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Better performance evaluation- MBO
Creating Perception of Better E1ort lead to Better Performance- So that
efforts become valuable.
Motivational programs should have some elements tailored to Bob’s needs by including non -financial rewards such as:
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Job enrichment – Recognition – Opportunity for promotion
Organizational Factors Continuous change in District manager creating pressure on Bob to match up with their expectations Managers using tough approach with a plateauing problem, without understanding the problem properly Relying on past data by managers. Bob’s positive Customer Relationship Management skills not considered in his evaluation
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Recommendations In the current scenario, the right set of actions should be to reinstate Bob because: •
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Bob maintained a very strong connection with t he clients & his reinstatement would reduce the risk of losing long time customers He has served the 7rm with total dedication & loyalty for 12 long years & knows the selling funct ion inside-out His experience can be of great use to the 7rm To solve the motivational & plateauing problem, the 7rm should: Highlight prospects for promotions & higher Assign Bob a new territory, where he can start afresh Give him a new assignment, such as coaching new salespeople, gathering competitive intelligence, surveying customers for new product ideas or developing a new t erritory
CONCLUSIONS • •
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All managers were transactional and nobody attempted to be transformational. Cooper never realized Marsh’s unique motivational needs. It never tailored company goals with Marsh’s personality. (More weightage on outcome rather than paraphernalia) Nothing explains why sales managers were changing so frequently while Marsh stayed constant. Nobody tried to communicate to Marsh about the benefits and pitfalls of tidiness by setting examples. Very little signs of job enrichment for Ma rsh. (No new territory or assignments). Only fin ancial rewards were forthcoming. One way communication and order barking. Cooper didn’t care to take inputs from Marsh even on et hical issues like promotion or his career development plan. Termination is too harsh a decision for a salesperson who is a favorite with the customers. Reconsider the decision. Marsh’s performance did not meet some of t he requirements of the company from the v ery beginning, so it was necessary to reward him, basing not only on the sales increase but also on his level of discipline. Otherwise, Marsh saw that his salary depended only on the profit he brought and did not pay attention to other factors. In order not to receive the customer’s complaints about Marsh’s dismissal, the managers should have interrogated the customers whether they were satisfied with March’s work or not and only then that h ad to choose what was more important for the company
Cabot Pharmaceuticals Inc.
Jorge Mora Ramos Grupo 3
John Meredith
makes detailed observations about problems of Marsh
However, his suggestions are too unspecific and miss clear call to actions. In addition, he increases the salary although he evaluated Marsh’s results as being „not satisfactory“, which undermine the rationale behind such formal evaluations and the performance criterion. Additionally, he also increases the salary too fast, which could translate into a habituation effect for Marsh.
Bill Couch
None
Did not set up clear goals and hence allowed for no room for improvements. Additionally, his observations were not detailed enough and hence lacked any hints for organization misbehavior of Marsh
Jim Rathburn
has defined clear preliminary sales He can be seen as being too strict goals for Marsh to attain. His suggestions are specific (e.g. pinpoint detailing) and his analysis very detailled (e.g. recognized discrepancies in call records). He does not only set up plans, but also evaluates them afterwards. Additionally, he does not only speak about problems and subsequents plan, but also commits them to paper.
Vince Reed
Reed discusses developments with past district managers
He sets goals, but he doesn’t help Marsh to achieve them (provides only basic outline of master plan). Additionally, he makes „substantial additions“ to Marsh’s file and sends a direct l etter to the zone manager in order to adress the failures of Marsh even after the salary increase has been granted
Antonia Wilkens
Eliminating “time set”
Only 2 days in the field, therefore shouldn’t be able to evaluate nor confirm any record
Ted Franklin
Took time to “know” Marsh
Set a list of “survival procedures” almost unreachable
Set no time to reach objectives
Too many procedures No empathy at all No real reasons for firing him
