The ECI Blog

We recently did a study to see if a Competency System we built for a client produced any measurable results, or if it was just a “nice to have” system that management preferred to use.  Our client is within a large pharmceutical company and leads a sales force which sells to institutions and hospital physicians.  The primary difficulty you have in assessing the real impact of a pharmaceutical rep’s efforts is that, outside the vaccine and medical device arena where sales can be tracked by order, it is very difficult to measure exactly what impact the rep has on prescription writing of any given physician.  There are so many factors that impact the sale that the direct linkage between rep activity and actual sales is a dotted line at best, particularly in the institutional or hospital setting.

So the first issue we faced was how to design a survey process to gather sufficient valid data to determine whether consistent application of the competency factors actually resulted in higher sales, performance ratings or customer satisfaction rates.  We deployed a survey process first to representatives, asking them to rate their own abilities in consistently demonstrating various behaviors within the competency model.  Next, we ask the reps’ managers to rate the reps’ performance in consistently demonstrating the competency behaviors.  After we had all this data, we compared the responses to actual sales results to see if in fact there were significant correlations between consistent demonstration of competency behaviors and higher sales results.

Those reps who rated themselves, and whose managers rated them, higher were significantly producing increased sales.  The conclusion then, is that if you create a competency system that is relevant to the factors that lead to success, and the factors/behaviors are consistently demonstrated in daily activity, you will get better sales results.  Here we were able to produce actual numerical correlations of the relationship between consistent demonstration of competency behaviors and higher sales results.

Everyone has felt that there was some sort of relationship between competency and results, but to actually measure this using individual ratings and statistical correlation in a very straightforward way has rarely produced significant results.  In our study, we have shown that it is the consistency with which the individual demonstrates the described behaviors which results in higher productivity and better performance ratings, as assessed by managers and by individuals.

We are just entering the last phase of our survey process, which is determining whether customers note the consistent demonstration of competency factors during their activities with reps.  We’ll let you know if we find a correlation between the customers’ perceptions of competency and actual sales results, once our survey results are in.

If you are interested in learning more about how ECI can help you to measure the relationship between your performance management system and actual productivity of your people, give us a call at (908) 806-3444.  We’ll be happy to speak with you further about the process.