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Smoothing out the Effect of Bulk Purchases on IC Performance Metrics for a Mid-Sized Pharmaceutical Company in Oncology
The Challenge
A mid-sized pharmaceutical company in oncology faced skewed incentive compensation (IC) metrics due to bulk purchases in certain geographies, leading to inconsistent payouts and lack of fairness in the compensation structure.
ProcDNA's Solution
Account Identification
Selected accounts for smoothing based on sales volume, account age, and engagement.
Smoothing Period
Determined the period for adjusting the effect of bulk purchases.
Tapered Smoothing
Applied a gradual reduction to normalize sales patterns over time.
Impact
Fairer IC Metrics
Aligned IC metrics with industry standards for consistent payouts.
Enhanced Engagement
Sales teams focused on building strong provider relationships.
Increased Employee Satisfaction
Improved transparency and fairness boosted morale.
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