Why defining Critical Success Factors (CSFs) are the first step to creating great KPIs - Part 2

In Part 1 of Defining CSFs, I focused on articulating a clear CSF statement that would resonate for the role of a Commercial Pharma Rep (visual below).

In this article, I will provide a checklist of ways to think about extending this to how you can create a better KPI based on this CSF example.

Checklist for your CSFs

1. First start with clear definitions of what you mean by each highlighted point in your CSF Statement.
2. Next consider if each of these can be clearly measured. Can planning be measured? What is our definition of quality? Are we including all channels when we measure interactions? Are we able to define and measure impactful content? Are we accounting for accessibility?and /or channel preferences? What does competitive level?of Customer engagement mean and how will we reference that?
3. Set specific targets so execution can be measured as a?% achievement (vs target/ plan). This enables you to set a single metric and compare this across Reps, Teams, Divisions, Countries.

By now, I hope you see that the commonly used 'Coverage@ Frequency' KPI does not come close to representing all of the elements defined in the CSF above.

How can we improve this commonly used KPI?

Below is a checklist of ways to improve the often used % 'Coverage@Frequency' KPI seen in Pharma to measure Sales Representatives promotional activity;

1. Consider what is currently included in the measure above and what is not? Likely it is only Face to Face (+/- Virtual), so other channel interactions are not included in the metric
2. Specifics of the Content shared (vs Planned) are not defined.
3. Quality of that engagement with the specific content is not defined
4. Likely impact of the content shared is not captured (e.g. HCP feedback - direct or indirect)

Action items to improve 'Coverage@Frequency' KPI

1. Set frequency targets for specific content to be used per HCP (timebound) rather than # interactions. This brings in 'quality of engagement' elements around key message execution.
2. Extend this by setting expectations for time on page for key message execution (duration)
3. Set expectations for HCP Feedback (to be captured via HCP surveys)
4. Define clear customer journeys and provide the relevant content to support these across channels (aligned to point 1 above)
5. Measure execution at the HCP level in your primary and adjacent channels (e.g. % HCPs who received specific planned key message(s) @frequency (define the time range)
6. Analyse variance/ adherence to execution of point 5 across Territories - this will drive valuable insights for marketers and First-line Sales Managers

Other considerations when you are thinking about KPIs (& Metrics)

1. Remove any Metrics that reward for bad behaviour - especially if they are part of an incentive/ remuneration program (perverse incentives are everywhere!!)
2. Gamify and reward Metrics that encourage the right behaviour to drive your CSF (e.g. Call Planning and non F2F channel execution come to mind)
3. Demote the (secondary) Metrics you can “drill down” to (Root cause analysis), ensuring the primary focus is just the few KPIs you really need the business to focus on. This also applies to dashboard visualisations and incentive & compensation programmes
4. Ensure time trend data is also available for KPIs (and their secondary metrics) so behavioural changes can be monitored over time. Time trend data should be easy to find and interrogate when required / if a KPI is off target, but do not need to be the primary focus for performance management reporting.

In my next article I will pick up from here and discuss other metrics often seen across organizations today and ways these could be improved to drive better sales performance outcomes.

David Ledger

Founder & Managing Director @ Varese Group | Transforming complex data into actionable insights with AI that speaks your language