Professional Documents
Culture Documents
MAY 2003
www.corporateleadershipcouncil.com
Fact Brief
*Company D represents a subsidiary of a multi-national company #Company A is the American operations of a European pharmaceutical company
Research published in 2002 shows little improvement in the number of women that progress to the uppermost tier of management. Barriers blocking womens career paths to leadership positions include the following:1
Gender stereotyping of leadership Hidden promotion and reward systems Lack of access to line management positions Power relationships within companies
Sales Management at Profiled Companies 3 Women and Sales Management 7 Sales Management Support 11 Research Methodology Appendix 14 17
In a recent Medical Marketing and Media executive roundtable discussing women in the healthcare industry it was remarked that pharmaceutical organizations are proactive in bringing women into management. Factors that contribute to the success of women in the pharmaceutical industry and that companies may wish to focus upon in order to develop female employees for managerial positions include the following:2
Desire to challenge status quo Openness to ideas and innovative practices Strong team building skills
The same executive roundtable concluded that the factors impeding the advancement of women in the pharmaceutical industry center around inadequate self promotion skills and inflexible corporate cultures.3 This brief explores the advancement of women into pharmaceutical sales management positions and concludes that whilst profiled companies make every effort to hire female sales representatives, only a minority of these progress to sales management roles. The most significant barrier to female advancement lies in the degree of geographic mobility required to ensure career progression. The implications of relocation present a challenge to many women and profiled companies are only beginning to realize that this is a significant gender barrier to female advancement.
Catalog No.: CLC11119DY
2003 Corporate Executive Board This project was researched and written to fulfill the specific research request of a single member of the Corporate Leadership Council and as a result may not satisfy the information needs of other members. In its short-answer research, the Corporate Leadership Council refrains from endorsing or recommending a particular product, service or program in any respect. Sources are contacted at random within the parameters set by the requesting member, and the resulting sample is rarely of statistically significant size. That said, it is the goal of the Corporate Leadership Council to provide a balanced review of the study topic within the parameters of this project. The Corporate Leadership Council encourages members who have additional questions about this topic to assign short-answer research projects of their own design.
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EXECUTIVE SUMMARY
The following brief discusses tactics for the advancement of women into sales management positions at four U.S. pharmaceutical companies. Council staff has collected information detailing the structure of the sales function at profiled companies paying particular attention to the District Sales Manager role. This brief outlines the strategies that companies use to advance women into sales management positions and also identifies the support that sales managers receive when in the field, in terms of dealing with administrative work and maintaining a healthy work/life balance. Council staff divided the brief into three sections as outlined below:
ADVANCING WOMEN IN PHARMACEUTICAL SALES MAY 2003 Sales Management at Profiled Companies Women and Sales Management Sales Management Support
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At all profiled companies, there are greater numbers of women serving as field sales representatives (FSRs) than men. However this trend is not repeated further up the sales hierarchy and at the level of district sales manager (DSM) and regional sales director (RSD) there are significantly more men than women. The following table outlines the gender ratios for sales positions at profiled companies. TABLE 1: RATIO OF MALES TO FEMALES WITHIN SALES AT PROFILED COMPANIES Job Role Field Sales Representative District Sales Manager * Regional Sales Director Comp A 0.85: 1 2.13: 1 6.14: 1 Comp B 0.89: 1 3: 1 3.2: 1 Comp C* 0.7: 1 1.67: 1 1.67: 1 Comp D 0.76: 1 4: 1 2: 1
= * = please note that Company C has three levels of FSRs. The figure quoted here represents all three grades.
Organization of the Sales Function In order to understand the role of the DSM at profiled companies, it is necessary to briefly outline the structure of the sales divisions at these companies. This section discusses functional sales models at profiled companies. Model One: Customer-driven district structure Customer base is strategically divided according to territorial regions and sales structure follows those regions. This model applies to Company A, Company C and Company D and is outlined below. 4 Figure 1: Customer-driven Sales Model Sales Function:
There may be single or multiple sales functions depending upon the range of products marketed. Sales functions are organized on a regional basis with regional sales directors reporting to the corporate HQ. Region (Territory): Territorial regions usually encompass several states
Region (Management): Each territory is managed by one or more RSDs who supervise a number of DSMs.
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1 7
* = Company C has two sales divisions: Hospital/Speciality and Primary Care (Primary Care is the bigger sales area as it is this division that sells/supplies to family practitioners). The figures given above are for the Primary Care sales division; although for both divisions the company divides the U.S. into six regions SALES STRUCTURE AT COMPANY B The following provides additional detail about the sales functions at Company B: Primary CareSupplies familiy physicians and comprises five business units:
ADAC Diabetes Neuroscience Womens HealthTwo sales teams
Model Two: Category-based matrix organizationGroups within the sales organization are determined according to more than one category (usually along product or geographic lines). Specific sales units interact with their counterpart sales units to delineate a larger sales force, focused on one of the companys categorical divisions.5 Company Bs sales force is divided according to more than one category, based upon sales function, business unit within sales function, and region worked. The structure of the sales organization is outlined below. Figure 2: Category-based Sales Model Sales Function:
Company B has two sales functions: Primary Care Specialist Care
Specialist CareSupplies specialist physicians and comprises six different business units:
Business to business Cardiovascular Critical Care Endocryn Oncology Osteoperosis
City #1: DSMs have to be based in one of 42 cities spread across the U.S.
City #2
City #1: DSMs have to be based in one of 42 cities spread across the U.S.
City #2
ADVANCING WOMEN IN PHARMACEUTICAL SALES MAY 2003 Sales Management at Profiled Companies Women and Sales Management Sales Management Support
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FSR Management
Company A, B and CEach DSM manages 10-12 FSRs. Company DEach DSM manages 7-15 FSRs depending upon the territory covered. DSMs have to attend on average 3 5 sales meetings a year where extensive travel is required. Company AExtensive travel is required for some sales meetings.
Meeting Requirements
Company B and CDSMs have four big sales meetings a year that require extensive travel, as well as having to travel to product launches. Company DDSMs have 3-5 sales meetings a year where extensive travel is required. On average, DSMs manage three to four products each. Company A and DDSMs manage the entire product portfolio, however at Company A they concentrate on marketing three products each. Company BProducts managed by DSMs are dependent upon which business unit they work in. Company CDSMs manage three or four products. At all profiled companies the amount of territory covered is wholly dependent upon where in the U.S. a DSM is based and the concentration of doctors in that area. For example, a DSM based in New York City would have less travel demands than a DSM based in the rural Midwest.
Product Management
Territory Covered
ADVANCING WOMEN IN PHARMACEUTICAL SALES MAY 2003 Sales Management at Profiled Companies Women and Sales Management Sales Management Support
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Account Executive Biological Services Resources Manager HR Manager Marketing Brand Manager Training Manager
All profiled companies require those who have the potential to be DSMs to undertake these or similar roles in order to gain supervisory and people management experience. The majority of these positions call for individuals to work within the corporate HQ. The specific details of the career path of DSMs at profiled companies are outlined below.
Company ACompany requires five years of progressive pharmaceutical sales experience and two years of supervisory experience for the DSM role. Company BFSRs mainly move in to sales and marketing roles. The company has 36-month rotation guideline and expects staff to be in their roles at least two years before moving. Company CCompany expects employees to undertake two developmental rotations in the sales support function after being an FSR. Company DCompany promotes DSMs internally and typically promotes those FSRs who work in marketing and managerial positions at the corporate HQ.
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Companies often fail to promote their most talented females into senior management positions because women may choose to spend time on other areas of their lives and may not be willing to make the sacrifices demanded by their employers.6 Female Career Choices Literature reveals that many women choose their career based on location, a flexible schedule, convenient hours or other accommodations such as onsite child-care. In fact many women put aside their ideal career plan in favor of one that is more conducive to their family.7 Carrier Mobility Barriers The major barriers to upward career mobility are no longer at the recruitment and job entry stages of the employment process, but at the advancement stages. Literature suggests that managerial ranks tend to be segregated by race and gender such that there are few women in influential positions. A lack of similar "others" in high positions may lead to a lack of mentorship or sponsorship as well as the failure to include women in corporate networks.8 Gender Barriers Restricting Access to Sales Management Roles The DSM role at profiled companies comprises a number of facets that may deter potential female candidates and therefore act as gender barriers. These include the following:
Considerable workload Extensive travel Possible relocation in order to take up position
Key Gender Barrier = Lack of Geographic Mobility Mobility and flexibility are key attributes for anyone entering the DSM role, as people promoted to DSM will almost certainly have worked previously as an FSR before moving to a role in the corporate center or a regional hub. This is obviously a barrier to women with family commitments. None of the profiled companies however have redesigned the DSM role to remove identified gender barriers so as to increase the number of women in the position. Tactics For Overcoming Gender Barriers The table below outlines approaches that Company B and Company C take in order to try and increase the number of women in sales management roles, although it should be noted that neither of the approaches tackle the underlying gender barrier of geographic mobility. TABLE 4: OVERCOMING GENDER BARRIERS TO DSM ROLE Location Flexibility
Company B is flexible with regard to geographic location for DSMs. Whilst formal policy states that DSMs should be based in one of 42 cities depending upon their sales territory, this is often relaxed as long as DSMs live within commutable distance of one of the cities. Company D may offer female HIPOs DSM roles before other employees, particularly if they become available in the area where a woman lives, but the location can be anywhere in the U.S.
The individuals interviewed at Company C believe that mobility is the key gender barrier that restricts the number of women in the DSM role.
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Part-time/job sharing working options are not prominent among DSMs at any of the profiled companies. Company A and Company D do not currently offer these flexible work arrangements; however, both are considering introducing these in the future. Company Cs part-time/job share polices are in theory applicable to all DSMs, but none currently work under such arrangements. Furthermore, there have only been two or three job shares in the past. Company B has a formal job share policy for DSMs which is profiled in the box below. Please note: Company B does not offer part-time working options to DSMs. FIGURE 4: JOB SHARE SCHEME FOR DSMS AT COMPANY B
CriteriaTo be considered for a job share, candidates have to be high performers and find someone willing to job share who works in the same territory, a nearby territory, or is ultimately prepared to relocate. StructureEach job share DSM has to work two and a half days a week and spend half the time of a full time DSM in the field. Administrative time for job share DSMs is usually arranged for the same day so they can maintain regular face-to-face contact. TerritoryStaff can either divide territory covered in half or simply cover the whole territory and divide time worked in half. Arrangements are flexible depending upon employees preference and availability. UtilizationThere are currently only three job shares in the entire DSM population. As there are over 200 DSMs, this number represents a very small percentage of the total DSM population.
Interviewees at Company B and Company C attribute the low number of job share DSMs to the role not lending itself to flexible working. Opportunities for those wishing to job share are extremely limited due to the difficulty of finding a willing and suitable job share partner who already works in the territory in question. The next section discusses tactics that companies can use to advance women into managerial positions.
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Tactic OneSpecial Development Programs for Women The Bayer Corporation has a variety of programs designed to advance women within the organization and these are highlighted in the case profile below.11
The Bayer Corporation offers the following three management development initiatives for women (article included in appendix): Bayer Women: Leaders for the Global Marketplacepromotes female advancement through:
Diversity awareness training Employee networks Multiple mentoring programs Succession planning
Associate Development Programdesigned to increase the ratio of females and minorities in high potential candidate pools. Delegate Career Development Programdesigned to enhance career opportunities for women and minorities by granting overseas assignments of two to three years duration.
Whilst none of the profiled companies offer any similar gender specific programs, Company D is considering introducing agender development program in the future and currently identifies HIPO women within the organization. COMPANY BS DSM NETWORK
Womens NetworkCompany B established a womens DSM network. This is an affinity group connected to a wider group of women in management. PurposeThe network is designed to enable women to discuss the requirements for success in the DSM role and how to overcome the problems faced. ActivitiesThe network organizes seminars and guest speakers, and the group is connected to female RSDs who provide advice and support for women preparing to take the next step on the career ladder.
2003 Corporate Executive Board
Tactic TwoOrganisational Emphasis on Diversity Organizations should encourage senior management to set diversity goals and exhibit commitment to these. At Procter and Gamble, quantifiable goals are set to ensure x-percentage of women reach executive management level within a certain time frame.12 Affinity groups, also known as diversity networks, are another strategy that companies can adopt to place increasing emphasis on diversity. According to previous Council research these groups can contribute enormously to the engagement and retention of traditionally under-represented employee populations and potentially provide competitive advantage in securing talent, expanding customer demographics and increasing companies wealth in human capital.13
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The diversity analyst interviewed at Company C argues that managing talent effectively is a prime focus for all pharmaceutical companies at the moment.
ActionCompany A launched an Accelerated Sales Development Centre to identify HIPO FSRs who are potential future managers. Criteria for SelectionFSRs are considered for this program if they have:
Five years experience in pharmaceutical sales or sales in general No prior supervisory experience Management interest Good performance ratings
WorkshopsIn addition to the above exercises, there are four workshops that cover the following topics:
Coaching Skills Communication Skills for Sales Managers Development Plans Situational Leadership
ResultThirteen people have completed this program since its launch in June 2002. Eight of these were women and of these, 63 percent have since been promoted into new positions.
ADVANCING WOMEN IN PHARMACEUTICAL SALES MAY 2003 Sales Management at Profiled Companies Women and Sales Management Sale Management Support
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DSMs receive either direct or indirect administrative support as the figure below illustrates. FIGURE 6: DEGREE OF ADMINISTRATIVE SUPPORT AT PROFILED COMPANIES Direct Administrative Support
Administrative staff reporting directly to DSMs. Company BOne administrative coordinator supports four DSMs. Company COne administrative coordinator supports six DSMs.
Work/life imbalance is one factor inhibiting the promotion of women in the pharmaceutical industry. The following pharmaceutical companies were featured in the recent poll of 100 Best Companies for Working Mothers and have introduced the following practices:14,15,16
Bristol-Myers SquibbBenefits include three on-site child-care facilities serving 1,329 children. Sick child care and backup care are offered throughout the company. The company also sends baby formula to an employees home for a newborns first year. Abbott LaboratoriesBenefits include an expansive on-site child care center and a variety of flexible scheduling options.
ADVANCING WOMEN IN PHARMACEUTICAL SALES MAY 2003 Sales Management at Profiled Companies Women and Sales Management Sale Management Support
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Childcare
Healthcare
Travel
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None of the profiled companies were able to identify which of the cited benefits had the biggest impact upon the sales force. Many employees simply do not draw a connection between staff benefits and efforts to promote a healthy work/life balance. Furthermore, sales staff find it extremely difficult to leverage many of the benefits available to other staff as they do not work at one of the companys facilities. Overall, companies are only beginning to realize the importance of providing benefits intended specifically to support a dispersed sales force. This acknowledgement forms part of a larger challenge to make the DSM role more accessible to women. All profiled companies recognize that the degree of geographic mobility required to pursue a career as a DSM may potentially serve as a gender barrier restricting female advancement, but they are only at the beginning stages of the process designed to overcome this barrier.
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Research Methodology
Project Aims
1) What is the current demographic ratio of females/males in the following job roles in your organization?
FSR (Field Sales Representative) DSM (District Sales Manager) RSD (Regional Sales Manager)
2) What are the structure and requirements for the DSM role? 3) What are regarded as the "feeder" roles for the first line sales management position? Are there any exceptions to this? 4) Has the company in any way re-fashioned the DSM role to remove any identified gender barriers in order to increase the number of women in this position? If so, what were the changes?
If the company redesigned the DSM role, what are the new productivity measures? How are these changes reflected in the DSMs performance management?
5) Does the company offer part-time or job/share options for DSMs? If so, what percentage of the districts are impacted and what does job sharing look like? Are there any other flexible work arrangements available in the field (for example, flextime or compressed working weeks)? 6) Has the company instituted any special programs for women in leadership in general and sales in particular? If so, what initiatives have been launched? 7) Dos the company provide DSMs with administrative support? Is this individual or shared? If shared, how many DSMs does an administrative coordinator support? 8) What kind of support does the company offer to promote work/life balance and flexibility? Where support is offered, which programs have made the biggest difference?
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Ratio of Males to Females within Sales at Profiled Companies Page 3 Sales Function Structure Page 4 Aspects of DSM Role Page 5 Overcoming Gender Barriers to DSM Role Page 7 Work/Life Flexibility Polices Page 12 Customer-driven Sales Model Page 3 Category-based Sales Model Page 4 DSM Career Paths at Profiled Companies Page 6 Job Share Scheme for DSMs at Company B Page 8 Company As Accelerated Sales Development Management Centre Page 10 Degree of Administrative Support at Profiled Companies Page 11
Figure 6:
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Kumra, S., Singh, V., and Vinnicombe, S. Gender and Impression Management: Playing the Promotion Game. Journal of Business Ethics (April 2002). (Obtained through LexisNexis). Blackwell, D. Women in the Healthcare Industry Reaching for the Top. Medical Marketing and Media (December 2002). (Obtained through ProQuest Global Online). 3 Blackwell, D. Women in the Healthcare Industry Reaching for the Top. 4 Corporate Leadership Council. Sales Organizational Structures. Washington: Corporate Executive Board (December 1999). 5 Corporate Leadership Council. Sales Organizational Structures. 6 Author Unknown. Women Power Too Good To Waste. Management Today (March 1999): Pages Unknown. (Obtained through Proquest Global Online). 7 Crampton, S. Women in Management. Public Personnel Management (22 March 1999): 87+. (Obtained through Factiva). 8 Giscombe, K., and Mattis, MC. Leveling the Playing Field for Women of Color in Corporate Management: Is the Business Case Enough? Journal of Business Ethics (April 2002). (Obtained through LexisNexis). 9 Marner-Solomon, C. Cracks in the Glass Ceiling. Workforce (September 2000): 86+. (Obtained through Factiva). 10 Castagnoli, WG. And Cox, TP. Women Face Obstacles and Opportunities in Turbulent Healthcare Job Market. Medical Marketing and Media (May 2001). (Obtained through LexisNexis). 11 Author Unknown. Bayer Corporation Awarded Top Honor for Initiative Preparing Women for Global Leadership. PR Newswire (April 2002). (Obtained through LexisNexis). 12 Castagnoli, WG. And Cox, TP. Women Face Obstacles and Opportunities in Turbulent Healthcare Job Market. 13 Corporate Leadership Council. Affinity Groups. Washington: Corporate Executive Board (September 2000). 14 Author Unknown. Best in Class. Working Mother (October 2002). (Obtained through www.workingmother.com/bestclass.shtml). 15 Author Unknown. Best of the Best: Top Ten. Working Mother (October 2002). (Obtained through www.workingmother.com/bestof best.shtml). 16 Author Unknown. Patagonia Retains Mon-Friendly Title. Ventura County Star (October 2001). (Obtained through LexisNexis). 17 Macerlean, N. Work: Why Bosses are Banking on Freedom. The Observer (25 March 2001). (Obtained through Factiva). 18 Author Unknown. Business & Finance: All Work and No Play is Bad for Staff and Business. Irish Times (18 January 2000). (Obtained from Factiva). 19 Author Unknown. Just the Job: Graduates Aiming to Strike the Right Balance. The Evening Standard (3 September 2001). (Obtained from Factiva).
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Appendix Copyright 2002 PR Newswire Association, Inc. PR Newswire April 12, 2002, Friday SECTION: FINANCIAL NEWS DISTRIBUTION: TO BUSINESS EDITOR LENGTH: 734 words HEADLINE: Bayer Corporation Awarded Top Honor For Initiative Preparing Women For Global Leadership; CEO Accepts 2002 Catalyst Award in New York DATELINE: NEW YORK, April 12 BODY: Noting that his two adult daughters, both successful professionals, are "walking on the ground that was prepared by Catalyst," Bayer Corporation President and CEO Helge H. Wehmeier Thursday evening accepted one of three 2002 Catalyst Awards honoring companies with successful innovative approaches to attract, retain and prepare women and minorities for leadership positions. "As friends and supporters of Catalyst, we share with many other like- minded advocates of diversity and fairness the common belief that fair treatment and equal opportunity is simply the right thing to do," Wehmeier said. Bayer Corporation joined Fannie Mae and Marriott International Inc., as Catalyst Award honorees at the organization's 40th Anniversary conference and dinner Thursday in New York. Catalyst is a nonprofit research and advisory organization working to advance women in business and the professions. Since 1987, Catalyst has annually honored companies for outstanding, proven initiatives to advance women. During Thursday's conference, two Bayer executives presented break-out sessions detailing the company's award-winning initiative, Bayer Women: Leaders for the Global Marketplace. They were Connie Dunn, Vice President, Human Resources Services & Employee Relations at Bayer's U.S. Corporate Headquarters in Pittsburgh; and Dr. Lora Rand, Vice President Manufacturing, Plastics Division in Baytown, Texas. Also participating was Diana Kamyk, Bayer Manager, Workforce Diversity and Work/Life Practices. Bayer's successful program embraces diversity awareness training, multiple mentoring programs, career development and international delegate programs, employee networks and succession planning with executive accountability. Bayer's Associate Development Program is designed to increase the ratio of females and minorities in high potential candidate pools; in the Delegate Career Development Program women and minority candidates are given overseas assignments of two-to-three years duration. "As part of a global company, we recognize the business case for workforce diversity," Wehmeier said. "On behalf of the 22,000 employees of Bayer in the United States it gives me great pleasure and immense pride to accept this award." Best known for its flagship product, Bayer Aspirin, Bayer Corporation produces
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a broad range of health care, life sciences and chemical products found not just in medicine cabinets, but in nearly every bedroom, living room, kitchen, garage, hospital, farm and factory across America. Bayer products help diagnose and treat diseases, purify water, preserve local landmarks, protect crops, advance automobile safety and durability and improve people's lives. The $10 billion company, one of Fortune magazine's Most Admired Companies, promotes science literacy and hands-on education through its Making Science Make Sense educational initiative. Approximately five percent of Bayer's 22,000 employees volunteer in local schools, and more than 500 charitable organizations receive funding from the Bayer Foundation. Headquartered in Pittsburgh, Bayer Corporation is a member of the worldwide Bayer Group, a $27 billion international health care and chemicals group based in Leverkusen, Germany. The Bayer Group stock is a component of the DAX and is listed on the New York Stock Exchange (ticker symbol: BAY). Forward-Looking Statements This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.