Why do Senior Managers Keep Repeating the Same Mistakes? Part VII – Asrar Qureshi’s Blog Post #950

Why do Senior Managers Keep Repeating the Same Mistakes? Part VII – Asrar Qureshi’s Blog Post #950

Dear Colleagues! This is Asrar Qureshi’s Blog Post #950 for Pharma Veterans. Pharma Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to aq.pharmaveterans@gmail.com for publishing your contributions here.

Credit: Daniel Frese

Credit: Djordje 

Credit: Lisa Fotios

Continued from Previous ……

Not every ZM was comforted with the talk of SPM.

The SPM started rolling out his plan immediately. He talked first to the ZM who seemed more receptive to his idea. He had long discussion about their working, their customers, market, and any other relevant factor. The SPM then asked the ZM what his plan was to implement new working parameters and achieve the new targets. The ZM said he had asked his teammates to increase the number of doctors on calling lists and number of calls per day. It was easy to add doctors to the list but 16 calls a day was getting impossible. 90% doctors on the lists were street doctors – GPs – and each call took time in traveling from one clinic to the next and waiting to make the call to the doctor. The ZM also said that the doctors did not want to listen to long talks about old products. He said he wanted to achieve, and he was constantly thinking, but could not form a concrete plan. “Of course, my teammates look up to me to tell them how to do it”, he said. The SPM suggested that he could ask his team to increase visits to pharmacies and discuss the products with them. Since many patients kept buying directly, the pharmacies may help in pushing the sales. The ZM said he would try it.

The SPM repeated the discussion with the other ZM. He was less forthcoming in the beginning but then opened more. He talked at length about distributors’ issues and that they were not willing to invest more into stock. The distributors indirectly suggested they would hold the sales so that they do not have to buy extra stock of these products. The distributed greatly resented 60-days policy as it stretched their finances which they could invest elsewhere. The SPM asked if 60-days policy helped in making market availability better. The ZM said, no it did not, and that market already kept enough stocks due to sales routine. The SPM asked this ZM also if he had a plan to achieve desired results; the ZM admitted he had not been able to come up with anything concrete yet.

The SPM stopped and did not call the other four ZMs. He wanted to discuss the situation with KK before going further. Next morning, he requested KK for some time, which he graciously granted. 

The SPM and KK sat down to discuss. The SPM started by saying “Sir! I asked this time to learn from you as I am not yet clear myself about our new strategy.” KK immediately felt himself to be rightly on a higher pedestal. He started importantly. “It is a three-pronged strategy. There are three dimensions. One, the team comprises mainly of old hands, who are entrenched in their ways of working. It is important to jolt them and shake them out of their slumber. Increase in number of doctors and calls is making them run around which they had not done in a long time. Two, the distributors have fallen in a pattern of set sales volumes. They could sell more because the products sell over the counter also, but no one pushed them. All distributors represent multiple companies and revolve their investment not just based on business, but also due to pressure from principals. This company never exerted its rightful pressure on distributors before. As we increase their stock level, they will be forced to increase sales on their own also. Third dimension is doctors. The team due to conventional style is just showing up their face, not discussing the products. The products have therefore gone to the back of minds, and prescription flow is squeezed. Increase in pressure from the head office shall force improvement in all dimensions.” The SPM was impressed and said, “Sir! How could you know so much without talking to the managers or going in the field extensively?” “It is my knowledge of business dynamics, people psychology, and marketing analytics that gives me this power. You should learn from me”, KK boasted. “It would be my honor Sir”, murmured the SPM. “May I ask one last question?”, the SPM said. “Yes, of course”, KK said magnanimously.  “I understand the team does not understand the philosophy of this strategy. Do they need to? Will you explain it to them?” the SPM asked. KK did not mind replying, “In this case, there is no need to explain the philosophy to them. They should do what they have been asked to do. Period. They should not bother their small minds with such finer things”. 

Both KK and the SPM conveniently ignored three critical matters. One, philosophy may be the bedrock of a plan, but it does not bring results; strategy does. KK’s plan was not inherently stupid, but it lacked strategic planning and its tactical execution details. Without these, proper execution would not be guaranteed. KK failed to see that.

Two, sharing relevant details of a plan brings ownership of the plan. People are not robots that they would be programmed and shall do as directed. People want to know why they are doing something, they do a great job when they understand and own it, they do a poor job if they do not own. KK refused to share any detail and expected committed performance, which was a contradiction.

Three, in the event of bringing fundamental changes to any corporate and its working, close coordination and real-time communication is critical. KK did not talk to the ZMs, he did not want to talk to them. He did not even want the SPM to talk too much to field people and indicated so. It was a fatal mistake.

Although the SPM flattered KK, but he was still unclear as to what support he could offer to the team. 

The results declined further over the next weeks. Meanwhile, the heads of supply chain, production, and finance again gathered in the office of the DM; KK was called in. The three heads had a new complaint. Based on KK’s estimates of ex-factory sales, they had reorganized resources and produced the stocks as demanded. However, ex-factory sales were less than expectation, and stock had piled up. Head of finance was most vocal because his finances were tied up, God knew for how long. It was a heated meeting and KK found himself under attack from all sides. He looked towards the DM for support but did not get it. KK tried to pacify his colleagues that things were under control, and very soon these issues would be resolved. They did not appear convinced, but they did not have any other option either. The meeting concluded and KK left though the others kept sitting. They insisted to the DM to do something.

Later the same day, the DM called KK and the SPM, and had a detailed discussion. He had a fair idea already, but he wanted to fill in more details. He updated himself and dismissed them.

The DM decided to intervene.

We shall see what happens next in the next blogpost.

To be Concluded……

Disclaimers: KK is a fictional character. All events described in this series of blogposts are also fictional. Any resemblance with anyone will be a coincidence, not intended.

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For most blogs, I research from several sources which are open to public. Their links are mentioned under references. There is no intention to infringe upon anyone’s copyrights. If, however, it happens unintentionally, I offer my sincere regrets.