Transcript PowerPoint Template - HR BioTech Connect

Going Commercial in Biotech:
Human Resource Considerations
Brad Hartman, Vertex Pharmaceuticals
Introduction: Brad Hartman
Page  2
Going Commercial in Biotech: Overview
• Foundation: Commercial Functions Overview
• Building a Commercial Team: Recruiting Best Practices
• Partnering with the Business: Opportunities to Maximize HR Impact
• HR Policies/Procedures: Commercial Areas of Focus
• Developing and Sustaining your Commercial Organization
Page  3
Commercial Organization: Functional Overview
Marketing
Managed Markets Commercial Ops Medical Affairs
Other Functions
 Responsible for overall strategy and direction of the product‘s brand
 Physician and Patient components
 Create materials for the field sales reps to use with customers
 Strong project management, vendor management, strategic thinking
and leadership skills required
 Heavy interactions with Regulatory, Medical, and Legal deparments
for approval of brand materials
Commercial Organization: Functional Overview
Marketing
Managed Markets Commercial Ops Medical Affairs Other Functions
 Responsible for ensuring profitable access of product to patients
 Call on Managed Care Customers to promote advantages of product
in accordance with approved FDA label (Health Economics and
Product Benefits)
 Customers include: Federal/State (Medicare/Medicaid/DoD/VA) and
Commercial Payers (National/Regional)
 Pricing and Contracting: Group that will implement and manage
contracts with all payers and ensure government of best price for the
product
 Managed Markets (MM) Marketing: Completely different messaging
from other Marketing division. Knowledge of Field MM and MM
customers essential.
Commercial Organization: Functional Overview
Marketing
Managed Markets Commercial Ops Medical Affairs
Other Functions
 Responsible for supporting in-house and field commercial functions
with operations and analytics
 Can include*: Commercial Analytics/Field Effectiveness, Field
Meeting/Event Planning, Fleet Services and Marketing Operations (if
necessary).
 Responsible for the design and management of the Incentive
Compensation Plan (*key area for partnership with HR)
 Plans and manages national and regional events for the Commercial
organization (National Sales Meeting, Speaker Events, Conference
Coordination)
* Sales Training can report here as well
* Market Research may report into Marketing
Commercial Organization: Functional Overview
Marketing
Managed Markets Commercial Ops
Medical Affairs
Other Functions
 New Areas for Medical Affairs:
 Medical Information: Responsible for responding to customer
and patient inquiries about the product (routine and complex)
 Field Medical – Medical Science Liaisons and Managed Care
Liaisons
 Heavy interaction and healthy tension with Commercial Leadership
team
Going Commercial: New Functions Overview
Marketing
Managed Markets Commercial Ops
Medical Affairs Other Functions
 Legal: Compliance, Employment Law
 Finance/Accounting: Revenue recognition, Financial Planning
 Investor Relations/Corporate Communications: New and different
pressure from the Street
 HR: Employee Relations, Business Partner Needs
 IT: Commercial CRM, Corporate/Product/Patient Websites
Commercial Org Chart: High Level Overview (30-60 people)
VP/SVP,
Commercial
Executive
Assistant
Senior Director,
Marketing
Senior Director,
Managed Markets
Senior Director,
Commercial Ops
Director, Program
Management
Assoc. Director,
Patient Marketing
Director,
Managed Markets
Operations
Area Sales
Director, East
Marketing
Coordinator
Director, Trade
and Distribution
Area Sales
Director, West
Senior Manager,
Market Research
Assoc. Director,
Payer Marketing
Director, Sales
Training
Manager, Field
Meetings and
Event Planning
Field MM Team
Page  9
VP, Sales
Director,
Commercial
Analytics
Commercial Ops
+ Event
Coordinator
Commercial Org Chart: High Level Overview (150-250 people)
SVP, Commercial
Executive
Assistant
VP, Marketing
VP, Managed
Markets
VP, Commercial
Ops
VP, Business
Information
Director, Patient
Marketing
Director, Payer
Marketing
Area Sales
Director, East
Director, Field
Effectiveness
Director, Market
Research
Director,
Professional/KOL
Marketing
Senior Director,
Health Economics
Area Sales
Director, West
Director, Field
Services
Director,
Competitive
Intelligence
Director, Patient
Services
Senior Director,
Pricing and
Contracting
Director, Sales
Training
Director,
Marketing
Operations
MM Field Leaders
Page  10
VP, Sales
Director, Trade
and Distribution
Director, Program
Management
Associate
Director, Program
Management
Overview of Field Functional Areas
Field Managed Markets
Field Medical
Sales
Different Areas of Field Managed Markets
 Regional Account Managers: Responsible for calling on Regional Payers
(ie BC/BS of MA) and negotiating profitable access for the product postapproval.
 National Account Managers: Responsible for working with large, nation
wide payers (ie Aetna, Cigna, Wellpoint) and negotiating profitable access
for the product post-approval.
 Specialty Pharmacy Account Managers: Responsible for calling on
Specialty Pharmacy customers (ie CVS Caremark), negotiating profitable
access, and securing appropriate patient services to support the product.
 Trade and Distribution*: Responsible for calling on Wholesalers and Retail
Pharmacies and negotiating profitable distribution channels for the product
post-approval.
*could be internal function of Managed Markets team depending on product channel needs
Overview of Field Functional Areas
Field Managed Markets
Field Medical
Sales
Field Medical Affairs: Roles and Responsibilities
 Medical Science Liaisons: These individuals are scientific ambassadors
for Vertex to Healthcare Providers (HCP’s) to provide detailed scientific
information on our product and the disease state, respond to Medical
Information and off-label requests, and serve as a conduit for investigator
initiated research studies
 Managed Care Liaisons: These individuals are scientific ambassadors for
Vertex to Managed Care organizations (Regional, National, and Specialty
Pharmacy) to provide detailed scientific information on our product and the
disease state, respond to Medical Information and off-label requests.
Overview of Field Functional Areas
Field Managed Markets
Field Medical
Sales
Field Sales: Roles & Responsibilities
 Sales Reps: Responsible for calling on Healthcare Providers (HCP’s) in assigned
territory to promote the product within the approved FDA label using key messages
and materials from Marketing.
 Sales Management: Leadership/Management of 8-10 reps with responsibilities for a
particular region of the country.
Other Potential Field Sales Functions:
 Treatment Educators: Nurse Practitioners or Physician Assistants responsible for
educating mid-levels and groups of patients on what to expect with the new
treatment, how to use the product (injection training), and side effect management.
 Field Reimbursement Specialists: Most often seen with expensive biologic
treatments in a buy & bill environment. Responsible for calling on Office Managers,
Nurses/Care Coordinators and/or Pharmacy Directors to ensure the treatment is
properly coded, billed and reimbursed within an office or hospital setting.
Building out a Commercial Team: Recruiting Best Practices
• Interview Process Design: Behavior Event Interview (BEI)
Model for Field Sales
• Defining Your Candidate Profile & Sourcing Techniques
• Recruiting Operations and Offer Process Recommendations
IInterview Process Design: BEI Selection Method
Easy to see
and develop
Harder to see
and develop
Skill
Knowledge
Social Role
Self Image
Traits
Motive
Necessary for top
performance but
not sufficient
Characteristics
that lead to longer
term success
What is a Competency?
Demonstrated characteristics of an individual
that have repetitive capability and predict the
likelihood of successful performance in a given
job, role, organization, or culture.
Page  16
IInterview Process Design: BEI Selection Method
10+ Years Pharma
GI Sales Experience,
Multiple Presidents Clubs
Skill
Knowledge
10+ Years Pharma
GI Sales Experience,
Multiple Presidents Clubs
Expert
Social Role
Helping Patients
I am the best
Self Image
I help doctors treat
patients more effectively
Confidence
Resilience
Trait
Personal
Achievement
Motive
Curiosity
Empathy
Being a Resource
For Customers
Overview - Field Force Competencies
Fearless Pursuit of Excellence – Business Acumen
Business Acumen is the ability to combine analytic skill
with judgment to create business plans with competitive
advantage to inform current and future decision-making.
This is about understanding the business, connecting the
dots, being proactive and providing strategic value.
Dimension: Degree of Proactivity in Planning for the Future
Sales Force Selection Process Overview
• Phone Interview with HR and/or Hiring Manager
• 1st Round Interview (Territory based): Face to face with Hiring Manager and
HR only
• 2nd Round Interviews (Regionally based): At least 3 Finalists per territory go
through:
• Territory Business Analysis Presentation – 20 minutes
• Behavioral Event Interview (Panel) - 2-2.5 hours
• Hiring Manager Meeting – 30 minutes
• VP of Sales/Commercial Meeting – 30-45 minutes
Page  19
Defining Your Target Candidate Profile
$$$$$$$
KOL and
Employee
Referrals
Are THE
KEY!
Specialty Pharma Reps
Hospital/Account Reps
Amgen
Pfizer/Wyeth
Abbott
J&J (Centocor)
UCB
Buy and Bill
Crohn’s, IBD
TNF- α
biologic
exp
Biogen
Genzyme
Genentech
Gilead
EMD Serono
CSL
Cephalon
Page  20
GI Specialty Sales Exp
Biologics Experience
Hospital/Account Reps
Specialty Pharma Reps
• What are similar
products?
• Similar customer
call points?
• Relationship
driven market?
• Related disease
states?
Sourcing Techniques for Commercial
Linkedin Sourcing Tricks:
Keyword1 Company1 -inurl:jobId inurl:linkedin.com intitle:linkedin
["Linked in Subsidiary" city] (i.e. Biotech, Boston)
• Will generate lists of employees from target companies in target locations
• Many ATS Systems will allow you to port LinkedIn information directly into
your system
• Using email of company, [email protected],
[email protected], etc you can then proactively hunt down
top reps from other firms
• Candidates will often have a full list of Presidents Club award winners in
their brag books – another great source for top tier candidates!
Page  21
Recruiting Operations and Offer Process Recommendations
• HUGE opportunity to impact nation-wide talent pool’s view of Human
Resources and corporate employment brand
• Automated scheduling notes for interviews and regret letters to
applicants or phone screen no’s from ATS system. Hiring manager
should call all first & second round no’s.
• Regional based interviews will minimize need for candidate flights and
reduce overall costs. Expect to reimburse for gas and tolls
• Standardize % base raise for sales force with flexibility only for those
below the salary range
• Will need to offer sign-ons to cover quarterly bonus loss or significant
stock vesting.
Page  22
Partnering with the Business:
Opportunities to Maximize HR Impact
Key Opportunities for Human Resources in the
Commercialization Process
• Organizational Design and Planning
• Incentive Compensation
• Launch Planning & Coordination
• On-boarding
• Sales Training
• Field Employee Communication
• People Programs
Page  24
Corporate Policies and Procedures:
Commercial Areas of Focus
Corporate Policies and Procedures: Commercial
• Compliance, Compliance, Compliance!!
• Car Allowance/Fleet Policy AND T&E Policy Updates
• Harassment Policy/Code of Conduct Updates AND Training
• On-boarding and Off-boarding Procedures
• Performance Improvement Framework
• California State Employment Laws
• Earned Wage Laws
• Incentive Compensation Policy
• Recent Sales Force Overtime Case Law
Page  26
Image Layouts
– Polaroids
Developing
and Sustaining Your
Commercial Organization
Developing and Sustaining Your Commercial Organization
Talent Development Program
• People Reviews
• Career Paths
• Mentorship Programs
• Rotational Assignments
• Leadership & Management Development
Page  28
APPENDIX
Page  29
Creating Connective Tissue Through On-boarding
Human Resources
Strategy illustration
Past
Future
Research and Development
Commercialization
On-boarding Program
Building
Connections
Get Research Involved!
Reps love to spend time with your
scientists and this will help break down
sales stigmas. Take new hires into the
labs and show them what’s going on in
R+D under the hood!
Cross-functional Training
Executive Team
Participation
Have participants from across the
organization and new hires participate
in a cross-functional all-day training to
help create connective tissue across
functional areas
People Review
(Use this as a framework to think through where you see direct reports based on your assessment of
their current performance level (see definitions in appendix) & potential)
Building
Strong
Leading
High
Potential
Promotable 2
or more levels
over time
Promotable 1
level over
time
Grow in Place
Low
Low
= Key Talent
= Potential Concern
High
Performance
(Consider Results & Values)
Innovation
is Our
Lifeblood
“We” Wins
Fearless
Pursuit of
Excellence
How can we utilize people programs that live out these values
and deliver substantial value for our business?
What is a “Field Ride Along” and Why should we do this?
 Simply defined: In-house employees, therapeutic/disease state
experts, and senior leadership spending a day in the field (“riding
along”) with our CREW team members and visiting with customers.
 Purpose: To create powerful employee experiences, build crossfunctional connective tissue within the organization, and to
differentiate Vertex in the eyes of customers.
 Key Objectives:
- To help customers better understand who Vertex is and what our culture is all
about
- Continue to deliver on the “One Company, One Culture” theme with our
employees and our customers
- Drive cross-functional learning between in-house and field employees through
immersion in real world experiences
Three Phases of the Field Ride Along Program
Phase I:
“The Pilot”: 20-25 internal
employees (non-research
personnel) travel with field
employees to meet
customers
Phase III:
“One Company, One Culture”:
Field Ambassadors paired with
each field employee spend one
day in the field meeting with
customers and learning about
each other.
Phase II:
Vertex
Field Ride
Along
Program
Executive Team/HCV Experts:
Connect Senior Leadership
across the organization and
Vertex HCV scientific experts
with top customers through a
strategic framework
Field Podcast: Summary
 Simply-Identified:
- The “Field Podcast” is a radio-show styled interview with different key stakeholders in
Commercial, Research and Development, and other areas throughout the company.
- Program was designed off the existing “ET Coffee Session” concept where executives
share information about themselves and their thoughts on the business with employees
in a live setting.
 Purpose:
- To provide a sense of connection between the field and corporate personnel in an
intimate, informal, and entertaining format while also being informative and educational
 Key-Objectives:
- Providing key commercial and corporate updates that directly impact the field
employees
- Allowing Field employees a chance to submit questions to senior leaders and hear
candid responses
- Humanizing the Group Leaders by making them more relatable and less intimidating
while maintaining respectability
- Entertaining the listeners in a low-key, candid, and funny setting without mandatory
time requirements away from the field.
35
Field Podcasts: Concept Outline
 15-20 min Podcast with key stakeholders
 Radio-style Interview with 3 segments (General Outline)
- Intro/Get To Know
- Introduction
- Quick professional background
- Some personal background
- Business Topic Discussion
- Interviewee’s reflections, opinions and insights on their business arena
- Q&A from field employees
 Overall goal is a fun, upbeat, entertaining, and interactive experience that
provides useful business information and personalizes leaders from
across the company to the field
 Continues “One Company, One Culture” theme by introducing the field to
leaders from across the company
36
Advantages
For Listeners:
- Podcast is pre-recorded and posted on Navigator for streaming:
No mandatory attendance – no time commitment
Will not take away from time spent in the Field
- Opportunity to get own questions answered from a Group Leader
- Opportunity to learn about a Group Leader with whom the listener may not
regularly interact
For Interviewees:
- Short Interview
Minimum time taken away from key stakeholders to participate
- Opportunity to hear from the Field and learn first hand what information is
valuable to them
37
Compliance, Compliance, Compliance: Why is it Important?
Two Major Areas of Compliance Concern
 Pre-approval promotion of prescription products
- Food, Drug and Cosmetic Act
- False Claims Act
 Providing kickbacks to HCPs to use or prescribe our products
- Federal Anti-kickback Statute
- State Laws
- restricting payments to HCPs
- requiring reports of spending per HCP
- Physician Payment Sunshine Act
Underlying Purpose of these Rules
 Information on safety and efficacy available before product approval
may be incomplete
 Practitioners can develop potentially harmful misconceptions about the
product
 Can create unrealistic expectations and inappropriate demand by
physicians and patients
Other Compliance Considerations
Grants, HCP payments, and other interactions:
 If not executed properly, can create kickback and off-label promotion
risks
 Commercial and Medical Affairs interactions in the Field are not
allowed (no dual calls or introductions). Other Commercial/Medical
restrictions apply (off-label questions, conference booths)
Additional rules based on State laws & institutional restrictions
Consider the Risks
Legal/Regulatory
 You’re in a fishbowl – “Bad Ad” Program, competitors, DOJ
 Think how several independent activities can result in a big problem
 Possible impact: criminal, civil, legislative, SEC or FDA filing
Reputation/Credibility
 Perceived conflict of interest
 Lots of attention with investors, press, customers, advocates, FDA
Fleet Survey - United States (all industries)
Page  43
Car Allownace/Fleet Policy Considerations
•Different Car Allowance Levels (eg management vs reps)
•Points System for Driving Infractions?
•Evaluating Risk/Infractions pre-hire vs post-hire
•DUI = Termination? Post-conviction or immediate?
•Requirements for Accident Reporting
•Tax Implications for Employees (over certain mileage reimbursement $)
•Transfer to Internal Role
•Corporate Insurance Implications
•Offer Letter Language on Car Allowance/Fleet Vehicle
Page  44
Potential Career Paths for Field Commercial Functions
TAM
Snr
FTM
VP
NAM
NAE
Snr
Dir
FTM
SAM
SAE
KAS
RAM
RAE
TS
Exec
TS
DM
RSM
TE
Senior
TE
TEM
Grade
Grade
Grade
Page  45
Grade
MM
Dir
ASD
Grade
Key
TE = Treatment Educator
TS = Therapeutic Specialist
KAS = Key Accounts Specialist
FTM = Field Training Manager
TAM = Trade Account Manager
TEM = Treatment Educator Mgr
RAM = Regional Account Mgr
SAM = Specialty Pharm Mgr
RSM = Regional Sales Mgr
RAE = Regional Acct Exec
SAE = Specialty Pharm Exec
NAM = National Account Mgr
ASD = Area Sales Director
NAE = National Account Exec
Grade
Grade
Field Mentorship Outline
Goal: Create real-time, on the job learning experiences and a well outlined
training guide to enable key talent to be in a better position to seize
future career opportunities in different job functions.
Mentorship Opportunities by Function:
Regional Account Manager (5-6)
Key Accounts Specialist (2)
Marketing (3-4)
(Target # of Opportunities for a Calendar Year)
Training (2)
Regional Sales Manager (3-4)
Therapeutic Specialist (2-3)
Selection Criteria ?
Mentorship Framework for each Function: Key Learning Objectives
Page  46
Rotational Assignments Outline
Goal: Give Key Talent new and challenging work experiences through a
2-4 month rotational assignment in a different commercial function
in order to keep them fully engaged and to prepare them for future
career development opportunities.
Rotational Assignments by Function: (Target # of Total Opportunities for Calendar Year)
Marketing (6-8)
Training (3-4)
Commercial Operations (3-4)
Internal Managed Markets (3-4)
Therapeutic Specialist (5-6) – larger # due to high # of reps in rotational assignments
Business Information(?) (1-2)
Selection Criteria?
Logistics/Travel Policy?
Page  47
Do You Have
Any Questions?
Page  48