Simplification and optimization round table discussion process of PRN franchise of novartis viet nam

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---NGUYEN VAN LOC SIMPLIFICATION AND OPTIMIZATION ROUND TABLE DISCUSSION PROCESS OF PNR FRANCHISE OF NOVARTIS VI

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-NGUYEN VAN LOC

SIMPLIFICATION AND OPTIMIZATION ROUND TABLE DISCUSSION PROCESS OF PNR FRANCHISE OF NOVARTIS VIET NAM

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City - 2019

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-NGUYEN VAN LOC

SIMPLIFICATION AND OPTIMIZATION ROUND TABLE DISCUSSION PROCESS OF PNR FRANCHISE OF NOVARTIS VIET NAM

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR NGUYEN PHONG NGUYEN

Ho Chi Minh City – 2019

NovartisisoneofthetopglobalpharmaceuticalcompanybasedinSwitzerland.InVietNam,Novartisrepresentativeofficehas2divisions:PharmaandOncology.Pharmad i v i s i o n isstructuredby4Franchises,PNRFranchiseisresponsibletopromotePain-N e u r o s c i e n c e -

Respiratoryproducts:Voltaren,Ultibro,Onbreez,PNRfranchisehas4F L M s and29MRs,performancein2018achieved99.6%Objective:$13.6mils,growth22%versus2017

TheSymptomsisfieldforcedonothavemuchtimeinfieldtointeractwithHCPs.CurrentFieldforce’stimeinthefield:50-

60%islowerthanJobrequirement:70%,oneo f themostimportantissuesofNovartisisalotofineffectivemeeting,whichtakesalotoftimeofallNovartisassociateandnoteffectiveasexpected.SoitmakestheFieldF o r c e usemoretimeintheofficeandlesstimetomeetcustomer

Thecurrentsituation,PNRfranchiseofNovartishavetofacewithachallengetobelackofftimeinfieldduetopaperworkofRTDprocess,thecauseisalongandcomplicatedRT D process,thesolutionsare:NovartiswillapplyeP3systemtoprocessandmanageR T D activity,updatetheSalesforcesystemandchangetheprocesswillhelpMR,FLMh asmoretimeonfieldtodetailaboutproducttoHCPstoimprovepatientoutcome

CompanyIntroduction:

Backgroundinformation

NovartisisoneofthetopglobalpharmaceuticalcompanybasedinSwitzerland.Weapplyourinnovationinsciencetosupportthesocietywiththebiggesthealthchallenges

Novartishasastrongculture,focusedstrategy,andclearmission.Allofwhichweexpectwillsupporttocreatethelong-

termvalueofourcompany,ourshareholdersandsociety.Werecognizethatourbusinessdependsontheinnovationandtheperformanceofourstaff.Ourvalueshelpguidethechoicespeoplemakeeveryday,andtheydefineourc u l t u r e andhelpusexecutetheNovartisstrategyinlinewithourmissionandvision

Novartisproductsreachmorethan800millionpeoplegloballyandwearefindingi n n o v a t i v e waystoexpandaccesstoourlatesttreatments.About130,000employeesofmorethan145nationalsworkatNovartisaroundtheworld.Novartisvisionistobeat r u st ed leaderinchangingthepracticeofmedicine.Novartisisstructuredtodeliveri n n o v a t i v e productsandrespondtonewopportunitiesandrisks

NovartisPharmaServicesAG(Vietnam)operatesasasubsidiaryofNovartisAG.InVietNam,Novartisrepresentativeofficehas2divisions:PharmaandOncology.Pharmad i v i s i o n isstructuredby4Franchises

FLM 37MR

FLM 46MR

NovartisPharma Ser vic es AG

PNRFranchiseisresponsibletopromotePain-Neuroscience-Respiratoryproducts:V o l t a r e n , Ultibro,Onbreez,PNRfranchisehas4FLMsand29MRs,performancein2 0 1 8 achieved99.6%Objective:

$13.6mils,growth22%versus2017.In2019,performanceobjectiveisgrowth23%versus2018

Symptoms

Int h e t e a m meeting,F i e l d F o r c e ( S a l e s p e r s o n i n c l u d e d M e d i c a l r e p r e s e n t a t

i v e ( M R ) , F i r s t lineManager(FLM),Secondlinesalesmanager)sharedthatwearelesstimeinthef i e l d tofacecustomertodetailaboutNovartisproduct.CurrentFieldforce’stimeinthef i e l d : 50-60%islowerthanJobrequirement:70%

IntheWOMBATworkshop(Wasteofmoney,Brainpowerandtimeworkshop)whichisconducted o n F e b r u a r y 2 1 , o n e o f t h e mostimportanti s s u e s o f N o v a r t i s i s a l o t o

f i n e f f e c t i v e meeting,whichtakesalotoftimeofallNovartisassociateandnoteffectivea s expected.SoitmakestheField

Forceusemoretimeintheofficeandlesstimetomeetcustomer

Ihavealreadyconductedtheinterviewwith2FirstLineSalesmanagersand4Medicalrepresentativesasbelowsummarize

f i e l d ( < 7 0 % _ requirement)

WithF i r s t L i n

e Sal es M a n a g e

r : RTDprocess

moreeffectiveactivities

toengagecustomerthanGPactivities

have to follow up after to finish the event

n i n g

FLM: a lotofmeetings:Teammeeting,training,F r an ch i s emeeting,

FLMsh ari n g2.Howmuchtimedoyouuseforthemeetingforaweek?

- MRTranThiEn_HoChiMinh:ahalfofday

- PhanThiThanhChau_Hue(FieldProductspecialist):Ithinkiti s ab

outa h a l f ofd a y f o r a teamm e e t i n g /

w e e k a n d a h a l f ofd a y f o r tr ain in g/ month

IalsohaveconductedaninterviewwithMs.HoThiThanhVan_PNRFranchisehead

- Ineffectivemeeting

Traveltimeisnotabigproblem

3 Initialcause-effectmap

More than 50% ineffective meetings

MR: 4-6 hours team meeting or TrainingFLM: 8-12 Hours/week): team meeting, franchise meeting

Long travel time to another province: 2-3 hours travel

15%oftheirtime,theywillhavelesstimeinthef i e l d todetailNovartisproducttothecustomer,itwillaffecttheperformanceofPNRf r a n c h i s e (In2018,PNRdidnotachievetheObjective:99.6%)[1].+ComplicatedprocesswillmakeFieldforcelessusethiskindofactivitytoengagethecustomer,butintheirpointofview,thisactivitiesisoneofthemosteffective.

+Ineffectivemeetingnotonlytakethetimeofattendancebutalsodoesnotachievethemeetingobjective,itisawaitoftime,brainpowerandmoneyofthecompany

+LongtimetraveltotheprovincewillmakeFieldforcetired,lesstimetomeetcustomer

Dau Hai Dang (Area Sales Manager_4 Years):MR prepare

noten ou gh documents,a lotofstepsneedAMhastotakecare

LeThiTuongVi(AreaSalesManager_6Years):Complicatedp r o ce

ss, lackoftrainingcarefully

A

complicatedprocess,a loto f supportingdocument,ap pr

o val level

-d i -d n o t t r a i n carefullyforFieldf o r

ce s o a f f e c t i n

g toMRskills

-2.Inth eRT D process, w h i c h stepdoyouth in ki t is mostd i f f i c u l t

willl e a d t o d e c r e a s e d employeee n g a g e m e n t a n d i n c r e a s e d e m o t i o n a l e

x h a u s t i o n , i n anotherhand,goodmeetingbehaviorswillleadtoincreasedengage

mentanddecreasedemo t io n al exhaustion.Accordingtotheresultoftheinterview,wewillfocusonreviewweeklyteamm ee t i n g b o t h f or M Ra n d F LM , somes u b ca u se s

a re t h e meetingo w n e r d o e s nothavegoodskillofmeetingmanagement,Highmeetingfrequency,currently,atea m meetingisrunweekly.Thereasonfor notgoodskilledmeeting ownerislackof t r a i n i n g fromthecompanyandallmeetingownersdobytheirownexperienceandthereisnoguidanceorsupportformeetingownerespeciallynewmanagers

weekly

2 What do you think the current your team meeting should change

MR Tran Thi En_ Ho Chi Minh: Well-prepared, the owner need to send agenda with a clear role of attendance and pre-work before the meeting.Phan Thi Thanh Chau_ Hue ( Field Product specialist): well-prepared

Tran Thi Tu Uyen( Field Product Specialist _Dong Nai, 1 year): focus and everyone needs to contribute to the meeting

Dau Hai Dang (Area Sales Manager_4 Years): we must improve our skills to lead a meeting, we need some guidance about meeting management

Le Thi Tuong Vi (Area Sales Manager_6 Years): well-prepared and have good skill to lead the meeting, currently, we just lead a meeting

by our own experiences

Complicated processes

c e

AlotofPaperwork

- ComplicatedRTD

p r o c e s s (MR:2 days,FLM:2.5-3 hours/event

- Longandcomplicat edprocess

Field Forceti m e infield:60

% (lowerthan job

5.Centralproblem:

Afteranalysistheproblemandcauses,wedecidetofocusonthecomplicationofRTDp r o c e s s duetorequiringalotofsupportingdocumentationandlongapprovallevelsbecausethecompanywantstokeepstrictcompliancebutithasthebiggestimpacttoMR,FLM,andFranchise.Ittakesmorethan30%ofworkingtimeofFieldForcebothMRandF L M , andMeetingtakes10-

15%oftheirtime,theywillhavelesstimeinthefieldtodetailNovartisproducttothecustomer,itwillaffecttheperformanceofPNRfranchise(In2018,PNRdidnotachievetheObjective_99.6%)(1).+ComplicatedprocesswillmakeFieldforcelessusethiskindofactivitytoengagethecustomer,butintheirpointofview,thisactivitiesisoneofthemosteffective

+Ineffectivemeetingnotonlytakethetimeofattendancebutalsowasteofcompanyr e s o u r c e : Brainpower,money

Inthesecondphase,thecompanywillfocusonmeetingmanagementprojecttohelpF i e l d forcehavemoretimeinthefield.

Problemjustification

Inourexperience,fouroutoffiveorganizationsthatreducecomplexityalsoreducetheirc o s t s Somehavesavedalmost20percentofpersonnelcostsbyeliminatingactivitiesthatc r e a t e complexitybutaddlittlevalue

FromJuly2019,FranchisewillfocusonconductingRTDtypeofevent,eachMRwillc o n d u ct 2RTDsonamonth

MR

NumberofRTDs/month

Time/

MR/

Month

TimeofMR/month

TimeofFLM/month

take5-Inthesurveywhichwehadconducted,theresultshowsthat81.6%ofresponsesconfirmedRTDprocessneedstobesimplified,andmostoftheresponseshaveworkedf o r Novartismorethan6months,sotheRTDprocessisfamiliarwiththem

SimplificationtheprocesswillhelptosavemoretimeforM R todetailabouttheproductt o HCPstohelpthemunderstandmoreaboutthebenefitoftheproduct.

SothecentralproblemisthecurrentlongandcomplicatedRTDprocessofPNR,itwillt a k e thetimeofbothMedicalrepresentativeandFirst-linesalesmanager

Causesvalidation

Tofindouttherealcausesofthecentralproblem,aftertheresultofthesurvey,weco n d u ct e d theinterviewwithMR,FLMforthedetailbelow:

(4) CreatethevendorcodeinthesystemneedtowaitforP3fullyapproval

(5) Thepaymentprocesstakesalotoftime,requirestomuchdocumentsupport

Causevalidation:

Basedontheinterviewwithfieldforce,andthesurveyresultin2018astheappendix

MR have to confirm the status of each Attendee: atteded, no show

Close the event

(1) NewP3policy:AlotofFormsandlongapprovalprocess

Currently,P3policyapplyfromMarch2019withalotofnewformsversusoldpolicy,t h e currentapprovalprocess,eachapproverhas3daystoreviewandapprove

MRtakesalotoftimetolearnhowtousethenewsystemandforms

Ingeneral,theprocesswilltake12daysforreviewandapprovetheRTDrequestifyoud o nothaveanymistake,iftherearemistakes,theprocesswillhavereviewagain

MostMRandFLMsharedthattheydonotclearabouttheprocessofRTD,theriskformakingmistakeishigh

Thenewpolicyisoneofthecausesofthemainproblem

(2) DifficulttoupdateattendeelistbeforeandafterinSalesforcesystem

ThesalesforceisthesystemfortrackingHCPsinteraction:calldetailing,event.AstherequirementoftheRTDprocess,thetentativeattendeelisthavetosubmit

ThecurrentprocesswilltakethetimeofMRandFLMforapprovalbeforetheevent,andt h e SalesforcesystemisnotupdatedfullHCPsinthefield.AndMRhastowaitfortheapprovalofFLMtohaveatentativeattendeelisttoattachtoRTDrequest,itwilltaket i m e forMR.

BasedonthefeedbackofMRintheteammeeting,wefoundoutupdatingthetenderlistn eed tobesimplified

(3) HCPs(Healthcareprofessional)interaction:

FieldforcewillneedtointeractwithHCPsforsomedocuments:updatedCVwiths i g n a t u r e , pr

esentationpreparation,Servicecontract

WehavetowaitforP3fullapprovalandshoppingcartfullapprovalbeforesignthec o n t r a c t withHCPs.HCPsalwayssobusyatwork,iftheservicecontractissignedtool a t e , theywillnothaveenoughtimetoprepareforthepresentationwhichhastobesenttoNovartisforreviewandapprovalbeforetheevent

(4) CreatingthevendorcodeinthesystemneedtowaitforP3fullyapproval

HCPswhowilldotheserviceforNovartiswillneedtocreatevendorcodeinthesystem,the creatingvendorcodeprocessrequiresP3fullyapproval,needtoforRegionalstaff

basedonSingaporereviewandapprove

+Redinvoice(Expense>=VND200,000) +Creditcardexpensebill

+Billdetail(withRestaurantinformationorStamp)

(fromAGORAafterclose)

-Needtoclosethestatusofattendeeinsalesforcesystemaftertheevent,thencloseP 3 approvalb y:

+RefreshtrainingtheP3processforfieldforce,usinginfacetofaceforfieldforceinH C M , HNandonlyskypetrainingforprovincialstaff(2hours)

Applyinge-P3systemwillsavetimeforMR,FLM,theydonotneedtoprintoutanydocumentandtheycantracktheapprovalstatusonthesystem

- Updatingattendeesinsalesforcesystem:

+Becausefieldforcehasapprovedquarterlyactivityplanbeforestartingthenextquarter,w e canremovetherequirementofapprovalfromFLMbeforetheevent.MRjustneedtou pd ate tosalesforcesystem,closetheevent,donotneedtoanyapproveofFLM

+findoutthenewwaystoquicklyupdateattendee

+UpdatemoretargetHCPstoSalesforcesystem,soMRcaninvitethemtoevent

- Afew:MRcanupdateandgetapprovalfromLMandOperationexcellentadmin(OE)

- Many:OEsendthetemplatetoupdateHCPsforMRupdateeverymonthA quicktechniquetouseagoratocreateanattendeelist

- Createthecommonlistchosetheattendantlisttoaddtotheevent

- Createavendorcode:

WorkingwiththeRegionalSIMsystemteamtodiscusscreatingthevendorc o d e, MRjustneedsanupdatedCVofHCPandquarterlyactivityplan

approval.Itisasimplificationprocessversusthepreviousprocess

Benefit:DonotwaitforfullyapprovalP3,VendorcodeofHCPscouldbecreatedafterM R receivingaCVfromHCP,savetimeforadminbecausevendorcodecreatingneedst o workwiththeregionalteam

+Servicecontractcouldbesignedi n parallelwithPurchasingorderprocessafterP3app roval , d

onotneedtowaitforPurchasingorderfullyapproval

SavingtimeforMRandsignthecontractwithHCP,HCPswillhavemoretimetop r e p a r e fortheservicepresentation,andmedicalhavemoretimetoreviewandapproval

TheriskwillbemitigatedbyPurchasingorderstillneedtobefinishedbeforetheevent

- printingcost

- environmentprotectionTrainingfor29MR

Fullcustomerprofile

RemoverequirementapprovalfromFLMbeforeevent

0minutes)andFLM( 1 0minutes/event)

reducetheriskofnotfinishpreparationforpresentationbeforetheevent

NumberofRTDs/

quarter

Changeto3RTD/quarter/MR

Grouppresentation

SavecostfromhonorariumofHCP

Cost:

whenweinterviewMRandFLM,theythoughtRTDactivitiesaremoreeffectivethanG ro u p presentationbecauseHCPhasknowledgeandexperienceaboutthistherapeutica r e a andclinicalusageoftheproduct,soattendeeswillbemorefocusedandlearnfromt h e event

WestillneedtotrainforourMR,FLMaboutproductanddiseaseknowledgetohelpt h e m presenteffectivelyinGrouppresentation.ToreducethenumberofRTDactivitiesw i l l leadtoalackofengagementwithHCPs

Jul-19 Mr.Thien(Co

mpliancemanager)

Testaftertraining

Aug-19

Monitoring

FromAug-19,monthly Compliancedepartment

ReducethemistakeofFieldforce

July-19 FieldforceOE

team Fulltargetcustomer

Quarterly

RemoverequirementapprovalfromFLMbeforeevent

July-19 Financeteam Changeproce

ss

Aug-19

Servicecontract

July-19 Mr.CuongLe

galmanager Changeprocess

Aug-19

Verifybycross-Quarterly

HCPinteraction ChangeCreatingve

ndorcoderequirement

Createcodebutnotuse

-Reviewdatabyquarter

Quarterly

Thecurrentsituation,PNRfranchiseofNovartishavetofacewithachallengetobelackofftimeinfieldduetopaperworkofRTDprocess,thecauseisalongandcomplicatedRT D process,thesolutionsare:NovartiswillapplyeP3systemtoprocessandmanageR T D activity,updatetheSalesforcesystemandchangetheprocesswillhelpMR,FLMh a s moretimeonfieldtodetailaboutproducttoHCPstoimprovepatientoutcome

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