The Pharma Career Ladder · The first-line manager · Step 6: Managing performance · Lesson 6

Incentive schemes that backfire

Rewarding the wrong behaviour

By Ahmed El Menshawy · 20 years in pharma, from medical rep to country manager in the UAE. Founder of RepPharma. LinkedIn
Published

Almost every incentive scheme is launched with good intentions.

Some of them quietly teach the team the wrong job.

Steven Kerr wrote about this in a well-known article, "On the folly of rewarding A, while hoping for B". The idea is simple. People do what they are paid for, not what we hoped they would do.

In a field team it looks like this.

Pay for month-end sell-in, and you may get distributor stock loaded in the last week, then a slow start to the next month.

Pay for the number of calls, and you may get quick visits to the easiest doctors.

Pay only for new prescribers, and the loyal ones can go without visits.

Pay only the top name on the ranking, and reps stop sharing what works.

None of this makes the reps bad people. They read the scheme correctly. The design was the problem.

So before a scheme goes live, I ask one question: how would the smartest rep in the team win this? If the honest answer is not the behaviour I want, the scheme needs changing, not the reps.

“People follow the reward, not the hope. Pay for what you want to see.”
Incentive schemes that backfire: Rewarding the wrong behaviour

Lesson 6 of 6 in Step 6: Managing performance, with the full guide and a checklist for this week.

More lessons in step 6: Managing performance

Managing performance, in RepPharma

Plans approved in one click

Each rep’s monthly plan is drafted from doctor priority and visit frequency; you review and approve it in one click.

Team reviews that assemble themselves

Monthly team reviews are built from field data, and a month-end checklist shows which reps have next month’s plan, forecast and expenses in.

Forecasts graded against real sales

Bottom-up forecasts per account and product are graded against real sales every month.

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