CLC Advancing Women in Pharmaceutical Sales

7/31/2019 CLC Advancing Women in Pharmaceutical Sales

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This project was researched and written to fulfill the specific research request of a single member of the Corporate Leadership Counciland as a result may not satisfy the information needs of other members. In its short-answer research, the Corporate Leadership Councilrefrains from endorsing or recommending a particular product, service or program in any respect. Sources are contacted at random within

the parameters set by the requesting member, and the resulting sample is rarely of statistically significant size. That said, it is the goal ofthe Corporate Leadership Council to provide a balanced review of the study topic within the parameters of this project. The Corporate

Leadership Council encourages members who have additional questions about this topic to assign short-answer research projects of theirown design.

Catalog No.:CLC11119DY

2003 Corporate

Executive Board

Issue Overview: Women in Pharmaceutical Management

Research published in 2002 shows little improvement in the number of women that

progress to the uppermost tier of management. Barriers blocking womens career paths to

leadership positions include the following:1

Gender stereotyping of leadership Hidden promotion and reward systems Lack of access to line management positions Power relationships within companies

In a recent Medical Marketing and Media executive roundtable discussing women in the

healthcare industry it was remarked that pharmaceutical organizations are proactive in

bringing women into management. Factors that contribute to the success of women in the

pharmaceutical industry and that companies may wish to focus upon in order to develop

female employees for managerial positions include the following:2

Desire to challenge status quo Openness to ideas and innovative practices Strong team building skills

The same executive roundtable concluded that the factors impeding the advancement of

women in the pharmaceutical industry center around inadequate self promotion skills and

inflexible corporate cultures.3

This brief explores the advancement of women into pharmaceutical sales management

positions and concludes that whilst profiled companies make every effort to hire female

sales representatives, only a minority of these progress to sales management roles. The

most significant barrier to female advancement lies in the degree of geographic mobility

required to ensure career progression. The implications of relocation present a challenge

to many women and profiled companies are only beginning to realize that this is a

significant gender barrier to female advancement.

ProfiledInstitution

Industry Employees Revenues

A# Pharmaceutical 10,000 50,000 $2 billion-$5 billion

B Pharmaceutical 10,000 50,000 More than $10 billion

C Pharmaceutical 50,000 100,000 More than $10 billion

D* Pharmaceutical Less than 2,000 $500M - $2 billion

*Company D represents a subsidiary of a multi-national company#Company A is the American operations of a European pharmaceutical company

Fact Brief

Advancing Women in PharmaceuticalSales

Key Questions

How do companies structure their salesfunction?

How do companies advance women insales management?

What support do companies offer salesmanagers?

w w w . c o r p o r a t e l e a d e r s h i p c o u n c i l . c o m

CORPORATE LEADERSHIP COUNCIL MAY 2003

Table of Contents

Executive Summary 2

Sales Management at ProfiledCompanies 3

Women and Sales Management7

Sales Management Support11

Research Methodology 14

Appendix 17


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ADVANCING WOMEN IN PHARMACEUTICAL SALES PAGE 3MAY 2003

2003 Corporate Executive Board

Sales Management atProfiled Companies

Sales ManagementSupport

Women and SalesManagement

Overview of Sales Function

This section provides a brief overview of the sales functions at profiled companies.

The first part of the section analyzes the sales function in relation to the ratio of

males to females in various sales job roles and the second part outlines theorganization of the sales functions at profiled companies.

Male to Female Ratios within the Sales Function

At all profiled companies, there are greater numbers of women serving as f ield sales

representatives (FSRs) than men. However this trend is not repeated further up the

sales hierarchy and at the level of district sales manager (DSM) and regional sales

director (RSD) there are significantly more men than women.

The following table outlines the gender ratios for sales positions at profiled

companies.

*

=

* = please note that Company C has three levels of FSRs. The figure quoted here

represents all three grades.

Organization of the Sales Function

In order to understand the role of the DSM at profiled companies, it is necessary to

briefly outline the structure of the sales divisions at these companies. This section

discusses functional sales models at profiled companies.

Model One: Customer-driven district structure Customer base is strategically

divided according to territorial regions and sales structure follows those regions.

This model applies to Company A, Company C and Company D and is outlined

below.4

Figure 1: Customer-driven Sales Model

TABLE 1:RATIO OF MALES TO FEMALES WITHIN SALES AT PROFILED COMPANIESJob Role Comp A Comp B Comp C* Comp D

Field Sales

Representative0.85: 1 0.89: 1 0.7: 1 0.76: 1

District Sales

Manager2.13: 1 3: 1 1.67: 1 4: 1

Regional Sales

Director6.14: 1 3.2: 1 1.67: 1 2: 1

KEY FINDING:MALE TOFEMALE RATIOS

At profiled companies femaleemployees only outnumbermale colleagues in the FSRrole. DSMs are almostexclusively male.

KEY FINDING:SALESFUNCTION STRUCTURE

Profiled companies divide theirsales functions into regionalareas and sales staff isdistributed accordingly.Company B specifies citieswhere sales operatives shouldbe based.

Sales Function:

There may be single or multiplesales functions depending upon therange of products marketed. Salesfunctions are organized on aregional basis with regional salesdirectors reporting to the corporateHQ.

Region (Territory):Territorial regionsusually encompassseveral states

Region (Management):Each territory ismanaged by one ormore RSDs whosupervise a number ofDSMs.


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Overview of Sales Function (Continued)

Organization of the Sales Function (Continued)

The table below outlines the number of territorial sales regions at Company A,Company C and Company D as well as the number of RSDs and DSMs per sales

region.

TABLE 2:SALES FUNCTION STRUCTURE

District Structure Comp A Comp C* Comp D

No. of sales regions 7 6 3

RSDs per sales region 1Data

unavailable1

DSMs per sales region 8 Approx 75 7

* = Company C has two sales divisions: Hospital/Speciality and Primary Care (Primary

Care is the bigger sales area as it is this division that sells/supplies to family

practitioners). The figures given above are for the Primary Care sales division; although

for both divisions the company divides the U.S. into six regions

Model Two: Category-based matrix organizationGroups within the sales

organization are determined according to more than one category (usually along

product or geographic lines). Specific sales units interact with their counterpart

sales units to delineate a larger sales force, focused on one of the companys

categorical divisions.5

Company Bs sales force is divided according to more than one category, based

upon sales function, business unit within sales function, and region worked. The

structure of the sales organization is outlined below.

Figure 2: Category-based Sales Model

Sales Function:

Company B has twosales functions:

Primary Care Specialist Care

Regional Hubs (Primary Care):

Primary Care is comprised of five

business units that are based in one offour cities.

Each business unit has four RSDs and42 DSMs.

Regional Hubs (Specialist Care):

Specialist care comprises of six business

units and these again are based in one offour cities.

There are only eight DSMs across theentire U.S.

City #1: DSMshave to be basedin one of 42 citiesspread acrossthe U.S.

City #2City #1: DSMshave to be basedin one of 42 citiesspread acrossthe U.S.

City #2

SALES STRUCTURE ATCOMPANY B

The following providesadditional detail about the salesfunctions at Company B:

Primary CareSupplies familiyphysicians and comprises fivebusiness units:

ADAC Diabetes Neuroscience Womens HealthTwo sales

teams

Specialist CareSuppliesspecialist physicians andcomprises six different businessunits:

Business to business Cardiovascular Critical Care Endocryn Oncology Osteoperosis


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Structure of the District Sales Manager Role

The following section discusses the structure of the DSM role in terms of job

requirements and the necessary experience needed to become a DSM.

Job Requirements

The DSM role at profiled companies is very similar. All interviewed individuals

stressed the large workload and heavy travel requirements. DSMs are required to

spend 80 percent of their working week out in the field, meeting clients and

supporting the FSRs. The amount of travel required is completely dependent upon

the amount of territory covered and this can vary considerably, but is generally

substantial.

The following table highlights upon several key aspects of the DSM role at profiled

companies:

Days in the fieldProfiled companies require DSMs to spend four days a weekin the field and one day in the office/at home completingpaperwork.

FSR Management

DSMs manage approximately 7 15 FSRs

Company A, B and CEach DSM manages 10-12 FSRs.

Company DEach DSM manages 7-15 FSRs dependingupon the territory covered.

Meeting Requirements

DSMs have to attend on average 3 5 sales meetings ayear where extensive travel is required.

Company AExtensive travel is required for some salesmeetings.

Company B and CDSMs have four big sales meetings ayear that require extensive travel, as well as having to travelto product launches.

Company DDSMs have 3-5 sales meetings a year whereextensive travel is required.

Product Management

On average, DSMs manage three to four products each.

Company A and DDSMs manage the entire productportfolio, however at Company A they concentrate onmarketing three products each.

Company BProducts managed by DSMs are dependentupon which business unit they work in.

Company CDSMs manage three or four products.

Territory Covered

At all profiled companies the amount of territory covered iswholly dependent upon where in the U.S. a DSM is basedand the concentration of doctors in that area. For example,a DSM based in New York City would have less traveldemands than a DSM based in the rural Midwest.

TABLE 3:ASPECTS OF DSMROLE

KEY FINDING:DSMACTIVITIES

DSMs at profiled companiesspend 80 percent of their timein the field, and travel, whileextensive, varies dependingupon the territory covered.


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Structure of the District Sales Manager Role (Continued)

Role Requirements: Career Paths

The career path of a DSM is clearly demarcated at all profiled companies. However,employees wishing to become DSMs have to exhibit a high degree of geographic

mobility owing to the rigid nature of career progression schemes.

The requirements of the DSM role stipulate that potential managerial candidates

have to undertake a number of other job roles/rotations, usually within the corporate

center before they can be considered for a DSM position. The following figure

illustrates the career path of individuals at profiled companies who become DSMs.

Career progression is divided into three clearly defined stages.

1st

Stage = FSR

2nd

Stage = Feeder Roles

3rd

Stage = DSM

KEY FINDING:RELOCATION TO ADVANCE

CAREER

At profiled companies thepotential career paths of theDSM role entail a highlikelihood of relocation. Thismay be over a considerabledistance and at periodicintervals during an employeesworking life.

All DSMs at profiled companies start their careers as FSRs. Many FSRs haveto relocate, usually to take up a role in the corporate HQ in order to advancetheir careers and therefore, be considered for a DSM position.

Typical feeder roles to the DSM position at profiled companies include thefollowing:

Account Executive Biological Services Resources Manager HR Manager Marketing Brand Manager Training Manager

All profiled companies require those who have the potential to be DSMs toundertake these or similar roles in order to gain supervisory and peoplemanagement experience. The majority of these positions call for individuals towork within the corporate HQ. The specific details of the career path of DSMsat profiled companies are outlined below.

Company ACompany requires five years of progressive pharmaceuticalsales experience and two years of supervisory experience for the DSM role.

Company BFSRs mainly move in to sales and marketing roles. Thecompany has 36-month rotation guideline and expects staff to be in their rolesat least two years before moving.

Company CCompany expects employees to undertake two developmentalrotations in the sales support function after being an FSR.

Company DCompany promotes DSMs internally and typically promotes

those FSRs who work in marketing and managerial positions at the corporateHQ.

Employees may have to relocate once again when a DSM position becomesavailable, as this post could be anywhere in the U.S.

FIGURE 3:DSMCAREER PATHS AT PROFILED COMPANIES

CAREER PATH EXCEPTIONS

There are two exceptions to thecareer paths outlined opposite.

At both companies C and D,FSRs may be promoted directlyto DSMs.

Percentage promoteddirectlyApproximately 15percent of FSRs are promoteddirectly at Company B. Thisfigure is five percent atCompany C.

Criteria for selectionFSRs aregenerally promoted to DSMs forone of two reasons:

In recognition of exceptionalperformance

To maintain and ensure proper

area coverage in a particularsales region


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Gender Issues and Sales Management

Companies often fail to promote their most talented females into senior management

positions because women may choose to spend time on other areas of their lives

and may not be willing to make the sacrifices demanded by their employers.6

Female Career Choices

Literature reveals that many women choose their career based on location, a flexible

schedule, convenient hours or other accommodations such as onsite child-care. In

fact many women put aside their ideal career plan in favor of one that is more

conducive to their family.7

Carrier Mobility Barriers

The major barriers to upward career mobility are no longer at the recruitment and job

entry stages of the employment process, but at the advancement stages. Literature

suggests that managerial ranks tend to be segregated by race and gender such that

there are few women in influential positions. A lack of similar "others" in high

positions may lead to a lack of mentorship or sponsorship as well as the failure to

include women in corporate networks.8

Gender Barriers Restricting Access to Sales Management Roles

The DSM role at profiled companies comprises a number of facets that may deter

potential female candidates and therefore act as gender barriers. These include the

following:

Considerable workload Extensive travel Possible relocation in order to take up position

Mobility and flexibility are key attributes for anyone entering the DSM role, as peoplepromoted to DSM will almost certainly have worked previously as an FSR before

moving to a role in the corporate center or a regional hub. This is obviously a barrier

to women with family commitments. None of the profiled companies however have

redesigned the DSM role to remove identified gender barriers so as to increase the

number of women in the position.

Tactics For Overcoming Gender Barriers

The table below outlines approaches that Company B and Company C take in order

to try and increase the number of women in sales management roles, although it

should be noted that neither of the approaches tackle the underlying gender barrier

of geographic mobility.

Location

Flexibility

Company B is flexible with regard to geographic location for DSMs.Whilst formal policy states that DSMs should be based in one of 42cities depending upon their sales territory, this is often relaxed aslong as DSMs live within commutable distance of one of the cities.

First Choice

Option

Company D may offer female HIPOs DSM roles before otheremployees, particularly if they become available in the area where awoman lives, but the location can be anywhere in the U.S.

Key Gender Barrier = Lack of Geographic Mobility

The individuals interviewedat Company C believe thatmobility is the key genderbarrier that restricts thenumber of women in the DSMrole.

TENURE LEVEL

The individual interviewed at

Company C believes that thelow number of female DSMsresults partly from the majorityof female FSRs not having therequired level of tenure andexperience to be moved intomanagement roles.

The Diversity Analystinterviewed stated that thecompany has hired numerousfemale FSRs in the past fewyears and that the gendercomposition of DSMs is likely toalter accordingly in the future.

TABLE 4:OVERCOMING GENDER BARRIERS TO DSMROLE

KEY FINDING:FEMALELACK OF MOBILITY

Flexibility and geographicmobility are the most dominantgender barriers restrictingfemale access to salesmanagement roles.


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Flexible Working Options for District Sales Managers

Companies wishing to focus on the retention of their top performers and increase the

proportion of women in management positions might consider encouraging the use

of flexible working arrangements such as part-time working and alternative workschedules.

9

Part-time/Job Share Working Options for DSMs

Part-time/job sharing working options are not prominent among DSMs at any of the

profiled companies. Company A and Company D do not currently offer these

flexible work arrangements; however, both are considering introducing these in the

future. Company Cs part-time/job share polices are in theory applicable to all

DSMs, but none currently work under such arrangements. Furthermore, there have

only been two or three job shares in the past.

Company B has a formal job share policy for DSMs which is profiled in the box

below. Please note: Company B does not offer part-time working options to DSMs.

Interviewees at Company B and Company C attribute the low number of job share

DSMs to the role not lending itself to flexible working. Opportunities for those wishing

to job share are extremely limited due to the difficulty of finding a willing and suitable

job share partner who already works in the territory in question.

The next section discusses tactics that companies can use to advance women into

managerial positions.

FIGURE 4:JOB SHARE SCHEME FOR DSMS AT COMPANY B

CriteriaTo be considered for a job share, candidates have to be highperformers and find someone willing to job share who works in the sameterritory, a nearby territory, or is ultimately prepared to relocate.

StructureEach job share DSM has to work two and a half days aweek and spend half the time of a full time DSM in the field.

Administrative time for job share DSMs is usually arranged for the sameday so they can maintain regular face-to-face contact.

TerritoryStaff can either divide territory covered in half or simplycover the whole territory and divide time worked in half. Arrangements

are flexible depending upon employees preference and availability.

UtilizationThere are currently only three job shares in the entire DSMpopulation. As there are over 200 DSMs, this number represents a verysmall percentage of the total DSM population.

KEY FINDING:FLEXIBLEWORKING OPTIONS

INCOMPATIBLE WITH DSMROLE

A lack of flexible workingoptions at profiled companiesmay deter women frombecoming DSMs. The lack of

such options, however, can beattributed to the fact that theDSM role does not lend itself toflexible working, sinceemployees are geographicallydispersed.


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Management Development Initiatives

It is important to provide women with a variety of career development opportunities,

including opportunities in line management. Such opportunities are a critical

component in early career development ,enabling women to become an integral part

of the key talent pool.10

The following section outlines three tactics that companies may adopt to facilitate the

advancement of women into management positions. It should be noted that these

tactics are not universally applied across all profiled companies.

Tactic OneSpecial Development Programs for Women

The Bayer Corporation has a variety of programs designed to advance women

within the organization and these are highlighted in the case profile below.11

Whilst none of the profiled companies offer any similar gender specific programs,

Company D is considering introducing agender development program in the future

and currently identifies HIPO women within the organization.

Tactic TwoOrganisational Emphasis on Diversity

Organizations should encourage senior management to set diversity goals and

exhibit commitment to these. AtProcter and Gamble, quantifiable goals are set to

ensure x-percentage of women reach executive management level within a certain

time frame.12

Affinity groups, also known as diversity networks, are another strategy thatcompanies can adopt to place increasing emphasis on diversity. According to

previous Council research these groups can contribute enormously to the

engagement and retention of traditionally under-represented employee populations

and potentially provide competitive advantage in securing talent, expanding

customer demographics and increasing companies wealth in human capital.13

The Bayer Corporation offers the following threemanagement development initiatives for women

(article included in appendix):

Bayer Women: Leaders for the Global Marketplacepromotes femaleadvancement through:

Diversity awareness training Employee networks Multiple mentoring programs Succession planning

Associate Development Programdesigned to increase the ratio of females andminorities in high potential candidate pools.

Delegate Career Development Programdesigned to enhance careeropportunities for women and minorities by granting overseas assignments of two tothree years duration.

KEY FINDING:LACK OFINVESTMENT IN GENDERSPECIFIC MANAGERIAL

PROGRAMS

Profiled companies do not haveany gender specific programs

designed to advance womeninto sales managementpositions and there is a lack ofdevelopment programs ingeneral.

Company A is the only profiledcompany that has a schemedesigned to advance HIPOsinto sales managementpositions, which was introducedlast year.

COMPANY BS DSMNETWORK

Womens NetworkCompanyB established a womens DSMnetwork. This is an affinitygroup connected to a widergroup of women inmanagement.

PurposeThe network isdesigned to enable women todiscuss the requirements forsuccess in the DSM role andhow to overcome the problemsfaced.

ActivitiesThe networkorganizes seminars and guestspeakers, and the group isconnected to female RSDs whoprovide advice and support forwomen preparing to take thenext step on the career ladder.


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Management Development Initiatives (Continued)

Tactic ThreeHIPO Development

Company A uses an Accelerated Sales Development Management Centre to identifyHIPO FSRs. While this program is not specifically targeted at women, it is designed

to ensure that women and minority groups are equally represented when

determining suitable program candidates. Company C has a fast track development

program for women HIPOs. The details of these programs are discussed below.

SituationCompany wants to create a pipeline of internal talent formanagerial positions, including the DSM role.

ActionCompany A launched an Accelerated Sales DevelopmentCentre to identify HIPO FSRs who are potential future managers.

Criteria for SelectionFSRs are considered for this program if theyhave:

Five years experience in pharmaceutical sales or sales in general No prior supervisory experience Management interest Good performance ratings

Program DetailsFSRs undertake various assessments, outlinedbelow.

Case study and group discussion

Competency-based interview

Learning LogParticipants complete a self-assessment log of insightsgained from each exercise

Portfolio PresentationParticipants produce a portfolio prior to thecenter, providing evidence of strengths and identifying areas fordevelopment.

Role play

Scheins Career AnchorsQuestionnaire and interview-based tool thathelps participants make more informed career and developmentdecisions

Verbal and numerical reasoning tests

WorkshopsIn addition to the above exercises, there are fourworkshops that cover the following topics:

Coaching Skills Communication Skills for Sales Managers Development Plans

Situational Leadership

ResultThirteen people have completed this program since its launchin June 2002. Eight of these were women and of these, 63 percent havesince been promoted into new positions.

FIGURE 5:COMPANY AS ACCELERATED SALES DEVELOPMENT MANAGEMENTCENTER

The diversity analystinterviewed at Company Cargues that managing talenteffectively is a prime focus forall pharmaceutical companiesat the moment.

FAST TRACK DEVELOPMENT

PROGRAMS AT COMPANY C

IdentificationAs part ofsuccession planning atCompany C, each sales regionidentifies female FSRs withmanagerial potential. TheseHIPOs participate in fast trackdevelopment programsdesigned to advance themmore quickly to managerialpositions.

Career ProgressionHIPOFSRs may be promoted directlyto DSM or have shorterrotations. They may also betransitioned out of the fieldearlier than others and beplaced into a sales supportmanagement capacity beforemoving into the DSM role.

ReviewTalent managementat Company C meets twice ayear to discuss HIPO womensprogress against theirdevelopment plans.


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Sale ManagementSupport


Supporting District Sales Managers in the Field

The following section discusses the level of administrative assistance DSMs receive

to help them schedule their time in the field and also support to help DSMs maintain

a healthy work/life balance.

Administrative Support Workers

All profiled companies expect DSMs to be self-sufficient in terms of administrative

work; however, they offer DSMs a degree of administrative support, although this

support is always shared among multuple DSMs.

Administrative staff generally provides DSMs with remote support in terms of:

Coordinating travel arrangements Maintaining budgets Organizing teleconferences

DSMs receive either direct or indirect administrative support as the figure belowillustrates.

Benefits Supporting Work/Life Flexibility

Work/life imbalance is one factor inhibiting the promotion of women in the

pharmaceutical industry. The following pharmaceutical companies were featured in

the recent poll of 100 Best Companies for Working Mothers and have introduced

the following practices:14,15,16

Bristol-Myers SquibbBenefits include three on-site child-care facilities serving1,329 children. Sick child care and backup care are offered throughout thecompany. The company also sends baby formula to an employees home for anewborns first year.

Abbott LaboratoriesBenefits include an expansive on-site child care center and avariety of flexible scheduling options.

Direct Administrative Support

Administrative staff reportingdirectly to DSMs.

Company BOne administrativecoordinator supports four DSMs.

Company COne administrativecoordinator supports six DSMs.

Indirect AdministrativeSupport

Administrative staff report toRSDs and support DSMsindirectly.

Company ATwo administrativecoordinators support the sevenRSDs. These indirectly support

the DSMs if required.

Company DOne to twoadministrative coordinatorssupport each RSD. DSMs mayrequest their assistance ifnecessary, but are encouraged tobe completely self sufficient.

FIGURE 6:DEGREE OF ADMINISTRATIVESUPPORT AT PROFILEDCOMPANIES

Reporting expenses Scheduling meetings

KEY FINDING:LEVERAGING EMPLOYEE

BENEFITS

Profiled companies try to helpsales staff maintain a healthywork/life balance through EAPsand flexible travel policies.

KEY FINDING:SHAREDADMINISTRATIVESUPPORT

All profiled companies provideDSMs with a degree ofadministrative support, but thisis always shared support.DSMs are encouraged to beadmin self-sufficient.


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Supporting District Sales Managers in the Field (Continued)

Benefits Supporting Work/Life Flexibility (Continued)

All profiled companies provide a range of benefits for their DSM/sales staff; althoughthe type of benefits provided varies considerably. All companies provide child care

support either in the form of dependent spending accounts or reimbursement of child

care fees. Sales staff however cannot take advantage of corporate HQ benefits

such as crches and onsite health facilities.

The following table outlines the types of benefits that profiled companies offer to

assist their sales staff in maintaining a healthy work/life balance.

Childcare

Dependent Care Spending AccountsBoth Company A andCompany C offer these to employees. Dependent CareSpending Accounts allow staff to save money pre-tax for child

care.

Reimbursement of Child Care ExpensesBoth Company Band Company D provide some reimbursement for child careexpenses. Company D reimburses employees $25 per week,per child for healthcare expenses.

Employee Assistance

Programs (EAP)

College CoachCompany C plans to extend this benefit to allstaff next year. Employees can receive advice and supportwith planning and saving for their childrens college education.

CounselingCompany A offers a confidential counseling andreferral service. Face-to-face counseling is available as wellas 24 hour crisis counseling, which is easily accessible forsales staff working in the field.

Financial PlanningCompany C offers this as part of its

flexible benefits package. The company provides staff with asoftware package to help them manage their finances.Employees can receive face-to-face or remote (via telephone)financial consulting.

WebsiteCompany D partners with an external vendor toprovide employees with access to a work/life website thatoffers advice and support.

Healthcare

Subsidized Health CareHealth care benefits are extendedto all immediate family members of Company As employees.Health care for staff is heavily subsidized in order to keepemployee contributions low.

Family Medical Time OffIn October 2002, Company Dextended family medical time off from the statutory 12 weeks to20 weeks in any 12-month period and offers job protection.

Travel

Considerate Travel RequirementsCompany A tries tominimize weekend and evening travel for DSMs allowing themto spend more time with their families. For example, nationalsales meetings involving extensive travel are scheduled to starton Tuesdays instead of Mondays to remove weekend travel.

Extra Childcare ProvisionIf sales staff at Company A haveto travel at times outside of when they would normally have tohave their children cared further (i.e., overnight), the companywill reimburse all additional child care costs.

The interviewees at CompanyC argue that the sales

employees face a challengeleveraging the benefitsavailable to other staffbecause they are dispersedacross the U.S. As such,they have little or no accessto the corporate HQ orregional hubs.

TABLE 5:WORK/LIFE FLEXIBILITYPOLICES

NATIONAL NETWORK:LOCALIMPACT

HR director interviewed atCompany A believes the EAPhas made the biggestdifference to employees. TheEAP is a national networkavailable on a local basis. Thisstructure allows all employeesto benefit, particularly those insales who are widely dispersed.


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Supporting District Sales Managers in the Field (Continued)

The Impact of Flexible Working Benefits

Employees often express concern regarding excessive working hours. Literaturesuggests that companies that establish fair work/life balance practices can realize a

variety of benefits including the following:17,18,19

Better quality work Cost saving from recruiting,

retention, and training Higher morale Higher productivity

None of the profiled companies were able to identify which of the cited benefits had

the biggest impact upon the sales force. Many employees simply do not draw a

connection between staff benefits and efforts to promote a healthy work/life balance.

Furthermore, sales staff find it extremely difficult to leverage many of the benefits

available to other staff as they do not work at one of the companys facilities.

Overall, companies are only beginning to realize the importance of providing benefits

intended specifically to support a dispersed sales force. This acknowledgement

forms part of a larger challenge to make the DSM role more accessible to women.

All profiled companies recognize that the degree of geographic mobility required to

pursue a career as a DSM may potentially serve as a gender barrier restricting

female advancement, but they are only at the beginning stages of the process

designed to overcome this barrier.

Increased honesty about whyemployees seek time off

Increased retention Less stress and sickness Reduced absenteeism


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THE RESEARCH PROCESS IN BRIEF

The Corporate Leadership Council conducted a comprehensive search of

published materials regarding advancing women in pharmaceutical sales

management, drawn from previous Corporate Executive Board research,

trade press journals, other research organizations and the Internet. Councilstaff then interviewed human resources and sales professionals at four

multi-national pharmaceutical corporations. This report represents the

findings from these secondary and primary sources.

1) What is the current demographic ratio of females/males in the following

job roles in your organization?

FSR (Field Sales Representative)

DSM (District Sales Manager)

RSD (Regional Sales Manager)

2) What are the structure and requirements for the DSM role?

3) What are regarded as the "feeder" roles for the first line sales

management position? Are there any exceptions to this?

4) Has the company in any way re-fashioned the DSM role to remove any

identified gender barriers in order to increase the number of women in this

position? If so, what were the changes?

If the company redesigned the DSM role, what are the new productivity

measures?

How are these changes reflected in the DSMs performance management?

5) Does the company offer part-time or job/share options for DSMs? If so,

what percentage of the districts are impacted and what does job sharing look

like? Are there any other flexible work arrangements available in the field

(for example, flextime or compressed working weeks)?

6) Has the company instituted any special programs for women in leadership

in general and sales in particular? If so, what initiatives have been

launched?

7) Dos the company provide DSMs with administrative support? Is this

individual or shared? If shared, how many DSMs does an administrative

coordinator support?

8) What kind of support does the company offer to promote work/life

balance and flexibility? Where support is offered, which programs have

made the biggest difference?

ResearchMethodology

Guide to Tables and Figures

Project Aims


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Table 1: Ratio of Males to Females within Sales at Profiled Companies

Page 3

Table 2: Sales Function Structure

Page 4

Table 3: Aspects of DSM Role

Page 5

Table 4: Overcoming Gender Barriers to DSM RolePage 7

Table 5: Work/Life Flexibility Polices

Page 12

Figure 1: Customer-driven Sales Model

Page 3

Figure 2: Category-based Sales Model

Page 4

Figure 3: DSM Career Paths at Profiled Companies

Page 6Figure 4: Job Share Scheme for DSMs at Company B

Page 8

Figure 5: Company As Accelerated Sales Development ManagementCentre

Page 10

Figure 6: Degree of Administrative Support at Profiled CompaniesPage 11

The Corporate Leadership Council has worked to ensure the accuracy of the information it provides

to its members. This project relies upon data obtained from many sources, however, and the Council

cannot guarantee the accuracy of the information or its analysis in all cases. Further, the Council is

not engaged in rendering legal, accounting or other professional services. Its projects should not be

construed as professional advice on any particular set of facts or circumstances. Members requiring

such services are advised to consult an appropriate professional. Neither Corporate Executive Board

nor its programs is responsible for any claims or losses that may arise from any errors or omissions in

their reports, whether caused by Corporate Executive Board or its sources.

Professional Services Note


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1Kumra, S., Singh, V., and Vinnicombe, S. Gender and Impression Management: Playing the Promotion Game.Journal of Business Ethics (April 2002). (Obtained through LexisNexis).

2Blackwell, D. Women in the Healthcare Industry Reaching for the Top. Medical Marketing and Media (December 2002).(Obtained through ProQuest Global Online).

3Blackwell, D. Women in the Healthcare Industry Reaching for the Top.

4 Corporate Leadership Council. Sales Organizational Structures.Washington: Corporate Executive Board (December 1999).

5 Corporate Leadership Council. Sales Organizational Structures.6

Author Unknown. Women Power Too Good To Waste. Management Today (March 1999): Pages Unknown.(Obtained through Proquest Global Online).

7 Crampton, S. Women in Management. Public Personnel Management (22 March 1999): 87+.(Obtained through Factiva).

8Giscombe, K., and Mattis, MC. Leveling the Playing Field for Women of Color in Corporate Management: Is the

Business Case Enough? Journal of Business Ethics (April 2002). (Obtained through LexisNexis).9 Marner-Solomon, C. Cracks in the Glass Ceiling. Workforce (September 2000): 86+.

(Obtained through Factiva).10 Castagnoli, WG. And Cox, TP. Women Face Obstacles and Opportunities in Turbulent Healthcare Job Market.

Medical Marketing and Media (May 2001). (Obtained through LexisNexis).11 Author Unknown. Bayer Corporation Awarded Top Honor for Initiative Preparing Women for Global Leadership.

PR Newswire (April 2002). (Obtained through LexisNexis).12 Castagnoli, WG. And Cox, TP. Women Face Obstacles and Opportunities in Turbulent Healthcare Job Market.13 Corporate Leadership Council. Affinity Groups. Washington: Corporate Executive Board (September 2000).14 Author Unknown. Best in Class. Working Mother(October 2002).

(Obtained through www.workingmother.com/bestclass.shtml).15 Author Unknown. Best of the Best: Top Ten. Working Mother(October 2002).(Obtained through www.workingmother.com/bestof best.shtml).

16 Author Unknown. Patagonia Retains Mon-Friendly Title. Ventura County Star(October 2001).(Obtained through LexisNexis).

17Macerlean, N. Work: Why Bosses are Banking on Freedom. The Observer(25 March 2001).(Obtained through Factiva).

18 Author Unknown. Business & Finance: All Work and No Play is Bad for Staff and Business.Irish Times (18 January 2000). (Obtained from Factiva).

19Author Unknown. Just the Job: Graduates Aiming to Strike the Right Balance.The Evening Standard(3 September 2001). (Obtained from Factiva).


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Appendix

Copyright 2002 PR Newswire Association, Inc.PR Newswire

April 12, 2002, Friday

SECTION: FINANCIAL NEWS

DISTRIBUTION: TO BUSINESS EDITOR

LENGTH: 734 words

HEADLINE:Bayer Corporation Awarded Top Honor For Initiative PreparingWomen For Global Leadership;CEO Accepts 2002 Catalyst Award in New York

DATELINE: NEW YORK, April 12

BODY:Noting that his two adult daughters, both successful professionals, are "walking onthe ground that was prepared by Catalyst," Bayer Corporation President andCEO Helge H. Wehmeier Thursday evening accepted one of three 2002 CatalystAwards honoring companies with successful innovative approaches to attract,retain and prepare women and minorities for leadership positions.

"As friends and supporters ofCatalyst, we share with many other like- mindedadvocates of diversity and fairness the common belief that fair treatment and equalopportunity is simply the right thing to do," Wehmeier said.

Bayer Corporation joined Fannie Mae and Marriott International Inc., asCatalyst Award honorees at the organization's 40th Anniversary conference and

dinner Thursday in New York. Catalyst is a nonprofit research and advisoryorganization working to advance women in business and the professions. Since1987, Catalyst has annually honored companies for outstanding, proven initiativesto advance women.

During Thursday's conference, two Bayer executives presented break-outsessions detailing the company's award-winning initiative, Bayer Women: Leadersfor the Global Marketplace. They were Connie Dunn, Vice President, HumanResources Services & Employee Relations at Bayer's U.S. Corporate Headquarters inPittsburgh; and Dr. Lora Rand, Vice President Manufacturing, Plastics Division inBaytown, Texas. Also participating was Diana Kamyk, Bayer Manager, WorkforceDiversity and Work/Life Practices.

Bayer's successful program embraces diversity awareness training, multiplementoring programs, career development and international delegate programs,

employee networks and succession planning with executive accountability.Bayer's Associate Development Program is designed to increase the ratio of

females and minorities in high potential candidate pools; in the Delegate CareerDevelopment Program women and minority candidates are given overseasassignments of two-to-three years duration.

"As part of a global company, we recognize the business case for workforcediversity," Wehmeier said. "On behalf of the 22,000 employees of Bayer in theUnited States it gives me great pleasure and immense pride to accept this award."

Best known for its flagship product, Bayer Aspirin, Bayer Corporation produces


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a broad range of health care, life sciences and chemical products found not just inmedicine cabinets, but in nearly every bedroom, living room, kitchen, garage,hospital, farm and factory across America. Bayer products help diagnose and treatdiseases, purify water, preserve local landmarks, protect crops, advance automobilesafety and durability and improve people's lives.

The $10 billion company, one of Fortune magazine's Most Admired Companies,promotes science literacy and hands-on education through its Making Science MakeSense educational initiative. Approximately five percent of Bayer's 22,000employees volunteer in local schools, and more than 500 charitable organizationsreceive funding from the Bayer Foundation.

Headquartered in Pittsburgh, Bayer Corporation is a member of the worldwideBayer Group, a $27 billion international health care and chemicals group based inLeverkusen, Germany. The Bayer Group stock is a component of the DAX and islisted on the New York Stock Exchange (ticker symbol: BAY).

Forward-Looking StatementsThis news release contains forward-looking statements based on current

assumptions and forecasts made by Bayer Group management. Various known and

unknown risks, uncertainties and other factors could lead to material differencesbetween the actual future results, financial situation, development or performanceof the company and the estimates given here. These factors include thosediscussed in our public reports filed with the Frankfurt Stock Exchange and with theU.S. Securities and Exchange Commission (including our Form 20-F). The companyassumes no liability whatsoever to update these forward-looking statements or toconform them to future events or developments.

Documents

CLC Advancing Women in Pharmaceutical Sales