Abstract:
The improvement of the sales quotas development process in Spanish pharmaceutical
organisations is challenging as the market environment becomes dramatically complex.
Setting sales quotas has always been difficult, exemplified by the difficulties in
quantifying future sales by sales territory. Extensive research has been conducted and
several conceptual models created to facilitate the process of developing sales quotas.
Effective management of this process has proved problematic mainly due to difficulties
in estimating future sales by territory, the complexity of the systems utilised in the
process, the granularity of the data required and the lack of attention to implementation
issues. Therefore, determining organisational capabilities that facilitate developing an
effective sales quotas process is paramount.
This study uses goal setting theory to understand organisational capabilities for the sales
quota development process. A sales quota development process for a mid-sized
pharmaceutical organisation was examined in terms of activities, which satisfied
stakeholders’ expectations. Based on empirical data organisational capabilities were
identified and prioritised. Goal setting theory is advanced through the development of
the SQD Model that includes a set of sixteen organisational capabilities that are critical
for developing an effective sales quotas process for pharmaceutical organisations. This
study created the SQP Maturity Framework, a diagnostic tool that allows organisations
to assess their sales quota development process and understand which capabilities to
acquire or further develop to improve the process. Differences by organisational
contexts are highlighted.
The focus of this research is the pharmaceutical sector in Spain. The organisational
capabilities uncovered and assessed will be relevant to these and other sectors that rely
on sales forces. Areas for future research include the replication of this study in
different geographies and sectors focusing on identifying more organisational
capabilities and routines that facilitate moving organisations towards an optimised level
of maturity.
