Novartis used simulation techniques as part of its training program for frontline managers

Novartis – Managing the Sales Force

Novartis used simulation techniques as part of its training program for frontline managers

This caselet discusses the sales training program conducted by Novartis, the pharmaceutical company, for frontline salespeople as well as managers. It also talks about the compensation structure of Novartis and the innovative compensation plan followed by one of its distributors. Finally, it discusses the performance review of the salespersons and its measures to improve this.

Issues:

» Effect of training on sales force at all levels


» Impact of compensation plans on sales force


» Issues in performance review

Introduction

Novartis was formed in 1996 as a result of the merger of two Swiss chemical/pharmaceutical companies — Ciba Geigy Ltd and Sandoz Ltd. This merger made Novartis, with its headquarters in Switzerland, one of the biggest pharmaceutical companies in the world.The company’s product line consisted of branded pharmaceuticals, generics, animal health products as well as consumer health products, including eye-care and baby care…

Questions for Discussion:

  1. Novartis used simulation techniques as part of its training program for frontline managers. What was the need for this program and what were the benefits derived from it?

  2. Novartis conducted regular performance appraisals to measure the performance of its sales representatives. How did these appraisals help the organization? What are the hurdles in the way of a good performance appraisal?

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