Change management during CRM implementation the case of GSK Vietnam

EXECUTIVE SUMMARY Nowadays, we live in the heavily tech-focused world where technology plays as an important role in developing and growing business. As such, pharmaceutical industry is facing these challenges too, step up to this change and take it seriously. For the ten last years, marketing activities in pharmaceutical organization focus on personal selling through visits of MR. Free samples, brochures, brand reminder, gift, event travel,…are offered to HCPs as well. The reporting and tracking for these activities are carried out manually and un-systemized. However, nowadays, pharmaceutical industry has many SOPs to ensure that marketing activities do not too impact HCP‘s recommendation and prescription. By accessing technology, focusing on CRM on this case, pharmaceutical companies pay attention to both comply SOPs related to customer relationship and increase these relationship, comprehend customer‘s insight toward prescription and recommendation. Customer intelligence, data collection, tracking and reporting become easier and systemized through CRM implementation. Besides, through CRM support, MRs can deliver effective presentations and communications via visual aids. Realizing the potential benefits of CRM implementation in pharmaceutical industry, GSK first launched Veeva – a CRM application in 2018. However, on audit report in Sep 2019, auditors has findings that there has been the high gap between KPIs and actual on Veeva system. Thus, the thesis tend to explore potential problems in order that author can understand and find out causes for underperformance of Veeva report. Through in-depth interview and theory-informed, the crucial problem has been figured out as change management failure. The finding of thesis highlights that change management failure happened during Veeva implementation and deeply impacted to performance on Veeva system, employee‘s resistance increase and financial investment effect toward Veeva‘s investment. Based on research findings, the potential causes have been revealed, including insufficient training and education, lack of top and middle management support, insufficiency technical support and resistance to change. In a further investigation, root causes of this situation are identified as employee‘s resistance. Alternative solutions are also made with regards to improve performance on Veeva system. This thesis also will help to take further steps towards developing solutions such as training and performance measurement. Acknowledgement Firstly, I would like to express my very special thanks and gratitude to my supervisor - Dr. Phan Thi Minh Thu for her expert advice, encouragement and motivation weekly throughout thesis process. This thesis wouldn't have been implemented without her guidance and support. Secondly, to my committee member, I'm sincerely grateful to Dr. Ly Thi Minh Chau and Dr. Doan Anh Tuan who gave suggestion during proposal in order that I can improve my thesis Thirdly, a thank you to colleagues of GSK and DKSH, they gave me insights and data to complete the thesis. Finally, I would like to send thankfulness to my family who encourage and motivate me to complete my Master program LIST OF ABBREVIATION BM - Brand manager BU - Business unit CD – Customer development CH/Cx - Consumer Healthcare CRM - Customer relationship management DOIT - Department of Industry and Trade EM - Expert Marketing GSK - GlaxoSmithKline HCP - Healthcare Professional HIV - Human immunodeficiency virus HOD - Head of department HR – Human resource ILT - International leadership team KOL - Key opinion leader KPIs - Key Performance Indicators MR - Medical Representative NU - Nutrition OH - Oral Healthcare OTC - Over-the-counter PR - Public relations Rx - Medical prescriptions SH - Skin Healthcare SOP - Standard Operating Procedure VLT - Vietnam Leadership Team WN - Wellness Table of figure Figure 1 GSK organization chart .................................................................................................... 2 Figure 2 Expert Marketing activities .............................................................................................. 5 Figure 3 Expert Marketing Organizational chart ............................................................................ 5 Figure 4 Detailing team structure - DKSH .................................................................................... 5 Figure 5 Number of samples between scorecard and Veeva report from Apr to Aug 2019........... 8 Figure 6 Initial cause – effect map.................................................................................................. 9 Figure 7 Number of samples on scorecard from 15 Apr to 1 May 2019 ...................................... 13 Figure 8 Number of samples on scorecard – Da Nang area ......................................................... 14 Figure 9 Updated cause – effect map............................................................................................ 16 Figure 10 Financial investment - Veeva ....................................................................................... 19 Figure 11 Costs for alternative solution 1 (author synthesis) ....................................................... 28 Figure 12 Costs for alternative solution 2 (author synthesis) ....................................................... 31 Figure 13 Costs for alternative solution 3 (author synthesis) ....................................................... 33 Figure 14 Evaluation among solutions ......................................................................................... 35 Figure 15 Action plan – Pre deployment ...................................................................................... 37 Figure 16 Action plan – During deployment ................................................................................ 37 Figure 17 Action plan - Implement............................................................................................... 37 Table of Contents 1 Problem context....................................................................................................................... 1 1.1 Company background ...................................................................................................... 1 GlaxoSmithKline PLC............................................................................................................. 1 GlaxoSmithKline Vietnam ...................................................................................................... 1 Overall Expert Marketing ........................................................................................................ 2 1.2 Symptom .......................................................................................................................... 5 2 Problem identification ............................................................................................................. 9 2.1 Potential problems............................................................................................................ 9 2.1.1 Old version of Veeva .............................................................................................. 10 2.1.2 Lack of willing to use from MRs............................................................................ 11 2.1.3 Lack of Veeva super-user ....................................................................................... 11 2.1.4 Insufficient Veeva training ..................................................................................... 12 2.1.5 Argument for removing ―Period gap of DOIT‘s permission‖ ................................ 13 2.1.6 Argument for removing ―Lack of medical representative‖ .................................... 13 2.2 Problem validation ......................................................................................................... 14 2.2.1 Updated cause and effect map ................................................................................ 14 2.2.2 Main problem definition ......................................................................................... 16 2.2.3 Importance and consequence of main problem ...................................................... 17 3 Alternative Solutions ............................................................................................................. 19 3.1 Potential causes .............................................................................................................. 19 3.1.1 Insufficient education and training ......................................................................... 19 3.1.2 Technical support failure ........................................................................................ 20 3.1.3 Resistance to change ............................................................................................... 21 3.1.4 Lack of top management support............................................................................ 24 3.2 Cause validation ............................................................................................................. 24 3.3 Alternative solution ........................................................................................................ 26 3.3.1 Alternative solution 1: Setting on top incentive toward Veeva report.................... 27 3.3.2 Alternative solution 2: Have Veeva Super user by utilizing internal human resources ................................................................................................................................ 29 3.3.3 Alternative solution 3: Special coaching. ............................................................... 32 3.3.4 Solution selection.................................................................................................... 34 3.3.5 Action plan.............................................................................................................. 36 4 Conclusion ............................................................................................................................. 38 5 Support information............................................................................................................... 39 1 Problem context 1.1 Company background GlaxoSmithKline PLC GlaxoSmithKline also known as GSK is British multinational pharmaceutical corporation headquartered in London. In 2000, GSK is established by merging between Glaxo Wellcome and SmithKline Beecham. Its business began in 1715 with the opening of an apothecary shop. During 300 years, GSK had been experiencing over three centuries of innovation to help people do more, feel better, live longer. Their values include patient focus, transparency, respect, integrity. GSK always expect courage, accountability, development and teamwork in its organization Recent impressive milestones include: - In 2015, GSK has reached agreement to acquires the Norvatis global Vaccines business and divests its marketed Onconlogy portfolio business to Novartis. - In 2018, continued creating joint venture with Pfizer into a new world-leading Consumer Healthcare GSK‘s product portfolio is diversified including three business units (BUs): - Pharmaceutical medicines: has a broad portfolio of innovative and established medicines, with leadership positions in respiratory and HIV. We are strengthening our pipeline through a focus on immunology, human genetics and advanced technologies to help us identify the most promising new medicines. - Vaccines: leading Vaccines company in the world, delivering over 2 million vaccine doses every day to people living in 158 countries. Their portfolio and pipeline help protect individuals throughout lives. - Consumer healthcare: develops and markets a portfolio of globally recognized consumer preferred and expert-recommended brands in the oral health, pain relief, respiratory, skin health, nutrition and digestive health categories. These category-leading brands include Sensodyne, Parodontax, Poligrip, Voltaren, Panadol, Otrivin and Theraflu. GlaxoSmithKline Vietnam In 2002, representative office of GSK was established in Vietnam. Until now, GSK Vietnam also operates as representative office. GSK‘s business in Vietnam which includes approximately 400 employees, also focuses on bringing prescription medicines, vaccines and consumer healthcare products to Vietnamese patients and consumers. 1 GSK Vietnam product portfolio, including two BU: - BU Cx: responsible for • OTC medicine: WN (Panadol, Voltaren, Otrivin,…) and NU (Calsource,..) • Cosmeceuticals: OH (Sensodyne, Aquafresh,…) and SH (Acne Aid, Spectraban,…) - BU Rx: responsible for pharmaceutical medicines and vaccines These business units operate as independent entities with different SOP, different structure. Therefore, in this case, author will focus BU Cx only to explore symtomp and main problem Consumer Healthcare business unit General Manager - Indochina Brand team HOD – HOD – Expert Marketing team HOD HOD – Modern Trade Other operation dept BM – OH&SH BM – WN Assistant BM – NU Assistant Trade MKT team Detailing manager Veeva super user Marketing manager Assistant CD team Planning manager & e- commerce Legal Regulatory HR Affairs Assistant Manager - OH Assistant Manager – SH&CamLao Assistant Manager – WN&NU Assistant CD Operation Manager Manager – North & Northern central Manager – South & Southern central Figure 1 GSK organization chart Overall Expert Marketing Expert Marketing roles and responsibility Category and brand - Lead the Expert Marketing Indochina team to deliver the Expert Marketing objective for the three markets - Partner with regional Expert marketing function to ensure strategic alignment, provide input into strategy, and ensure flawless execution of centrally created expert materials - Develop a local tactical plan based on strategy and a deep understanding of local insight and path to purchase, including robust efforts for both sales force and non-sales force activation 2 - Deliver localized expert marketing materials together with local insights for sales force implementation (which is aligned with centrally created materials) - Deliver localized expert marketing materials together with local insights for activation of other marketing touch points (advertorials, e-platforms, press releases, PR, symposia etc) for non-sales force implementation - Collaborate with Brand marketing team to shape the healthcare environment to endorse GSK brands to consumers Commercial Execution - Work with the VLTs and the cross functional team to deliver the business goals - Involve in the financial planning process to build commercial and financial knowledge - Partner with local expert and trade selling teams to ensure strategic alignment and flawless execution with HCPs including those in retail setting – including launching both commercial and product innovation in a market - Closely manage local expert agency or a global affiliate to leverage maximum impact on local marketing initiatives - Partner with medical and regulatory (and regional as needed) to deliver a local HCP advocacy plan which drives brand recommendation and is compliant with scientific engagement - Work closely with local communication/PR team to execute medically relevant PR set and track benchmark KPIs, draw insights and course correct based on learning in a timely manner Expert Marketing activities Expert Marketing is specific department which has core target customer includes: hospital, healthcare association, clinic, pharmacy and medical school. Each customer will toward different purpose and different activities. In general, Expert Marketing has targets and activities which are in below table. Purpose: - Tender: this is key purpose which effect to EM performance. Besides, this activity only happen in hospital. In hospital Vietnam, pharmaceutical procurement is used to purchase drug from supplier (pharmaceutical company) to meet the treatment need for patients. Moreover, this method will be implemented by tender. In other ways, hospital will invite bids for many packages to buy medicine. Pharmaceutical companies will try to gain the 3 the winning bid. Products for bidding process in hospital include OTC (Panadol, Otrivin, Voltaren,…) and prescription medicine - HCP‘s recommendation. Cx is in charge of OTC and cosmeceutical. Hence for medical channels, HCP will give recommendation to patients about specific products. And then patients can buy themselves in future. - Build relationship with KOL. KOL in hospital channel includes experienced, trusted and famous HCP can give recommendation or feedback to other HCPs or patients,….. - Sale performance: In Expert marketing, due to nature of channel, WN and NU has higher sale target comparing to SH and OH. - Knowledge transfer: increase brand awareness Due to symptom related to sampling program, author will detail about this activity About sampling program Sampling program is one of core activities in Expert channel. SH and OH products regulated as cosmeceuticals may be provided to HCPs free of charge for HCP familiarization or for HCPs to pass onto their patients/consumers in reasonable quantities as samples or testers. This activity will strengthen the detailing messages and to allow instant usages or experiences of the non-pharmaceutical. Recently, MRs will deliver samples of OH (Sensodyne Repair & Protect 20g) and SH (Physiogel A.I. Cream 5ml and Acne Aid Liquid cleanser 30ml) Kind of HCO Association Hospital Clinic Pharmacy School Purpose Build relationship with KOL Tender Recommendation Recommendation Sale Recommendation Sale Knowledge transfer Build brand/company awareness Activity Detailing (support tools: Veeva, leaflets, …) Group discussion Lunch and Learn Congress/sponsoring Promotion Congress Free sample (monitor by Veeva) Sources: internal 4 Figure 2 Expert Marketing activities HOD Expert Detailing Manager Expert Marketing Manager Veeva - Super User Marketing Assistant Figure 3 Expert Marketing Organizational chart National Coordinator Tender Executive Sup SH- OH North Sup WN-NU North Sup Central Sup SH South Sup OH South Sup WN-NU South MRs MRs MRs MRs MRs MRs Figure 4 Detailing team structure – DKSH 1.2 Symptom About Veeva system Introduction: In 2017, GSK Consumer Healthcare launched Sales Force Automation (SFA) solutions (MED-e-rep, Koach and MSET), in favour of introducing Veeva. The strategic direction is to unite all customer engagement activities for salesforce to a single solution – SFA, connecting cross-channel customer interactions and providing the GSK Consumer Health Expert Sales Force the potential for a truly 360° view of our interactions with customers. Veeva is viewed as a CRM application which support for SFA solution to build on the Salesforce platform designed specifically for the pharmaceutical and biotechnology industries. Veeva can help to 5 deliver a standardized global SFA solution for target customers on pharmacy and expert channels to drive our business performance, efficiency and effectiveness. Veeva provide to salesforce and management access to enhance customer data, provide powerful planning tools and impressive detailing features, detail activity tracking and have the full performance tracking with a dashboard view. Based on this solution via Veeva, GSK stakeholders will commit to: - Drive channel share by enabling & promoting new best in class commercial processes for Consumer Health, providing optimized system coverage model for all trade channels in all regions, enabling the maximization of reach, frequency, and quality of salesforce customer interactions - Drive Expert recommendations by provisioning of tools to foster Science-based influencing skills through multi-channel marketing, enabling high degree of personalization of HCP journey - Improve Salesforce ranking by enabling and advancing the adoption of global processes & capabilities targeted to enhance Sales Force efficiency and effectiveness, providing an exceptional customer experience Benefits: - Simplicity: Veeva is seen as user friendly interface allowing more eye contact with the HCP improving engagement, simple and easy to use. Moreover, it can help to reduce number of systems to use in a call. This benefit focuses on Salesforce‘s need - Standardization: Veeva can enable best practice through the First Choice Expert framework. This facilitates for simplifying compliance requirements and support global KPIs. This benefit also focuses on Salesforce‘s need - Enhanced Capabilities: Veeva can create enhancements delivered directly from head office (such as Marketing, sale operation,…) to MR‘s iPad through regular updates. Through Veeva, people deliver more critical information enabling more effective call planning. Besides, it can unlock the potential for future multi-channel marketing requirements. - Efficiency: Offline capability, enables efficiency and productivity at head office as well as multiple field benefits, support standardized and scalable operational processes. Sampling process 6 Step 1: Expert Marketing Assistant will raise Stock Issue Advice form to head of Expert Marketing team and head of Supply chain team for acknowledgement; then send it to DKSH to issue samples at DKSH‘s warehouse and deliver to MR‘s house Step 2: MR will deliver samples to HCP following specific quantities on scorecard. MR will record it on acknowledgement form with HCP‘s signature Sample management in Veeva Step 1: Super user creates the entries and populates the Lot catalog. And the he or she continue to create sample receipt records for that correspond to the initial inventory and loaded into the system (via the data loader if required) Step 2: Once the super user had added the initial inventory of the sample items to the system, they must then create Sample Transfer transactions for MRs. The shipment number can be used to group sample receipts together Step 3: When confirming the receipt of sample items, the MRs will confirm the whole shipment at once. MRs must then confirm their quantities and receipt of the samples. When MRs confirm their receipt of the sample, Veeva will automatically create a sample lot with the MR as an owner and the lot will be available for dropping during a call report Step 4: Samples drops are sample items which are hand delivered to a HCP during a call report or non-call report. Once sample items has been dropped to HCP, MR need to capture to confirm the HCPS receipt of the items Step 5: Samples drops are stored as disbursement sample transaction. Veeva allows users to create additional sample transactions to track stock and inventory movements outside of disbursement to HCPs. These include: return of stock to head office, transfer between MRs, adjust for missing, lost or damaged stock About symptom On Sep 2019, GSK implemented independent business monitoring - also known as audit - for execution of sampling program. The details of this audit are as follows: - Description of audit activity: evaluate risk that the amount of sample given to HCPs will exceed the limit in SOP or not. Also, they need to track how sample is distributed from GSK, DKSH warehouse to sales team and to HCPs class A & B. - How performed (e.g. checklist, desktop review, GEMBA): Randomly selected samples from the universe and review the receipt form. Same process against checklist. 7