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Smoothing Out the Effect of Bulk Purchases on IC Performance Metrics for a Mid-Sized Pharmaceutical Company in Oncology
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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
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Account Identification

Selected accounts for smoothing based on sales volume, account age, and engagement.

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Smoothing Period

Determined the period for adjusting the effect of bulk purchases.

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Tapered Smoothing

Applied a gradual reduction to normalize sales patterns over time.

Impact
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Fairer IC Metrics

Aligned IC metrics with industry standards for consistent payouts.

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Enhanced Engagement

Sales teams focused on building strong provider relationships.

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Increased Employee Satisfaction

Improved transparency and fairness boosted morale.

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