N O T T O B E U S E D F O R C O M M E R C I A L U S E
This slide presentation is for illustration purposes only and to show how AH & Beyond can help you
build a Commercial Excellence Strategic Sales Plan
AH & Beyond Consulting
Commercial Excellence Strategic Sales Plan (EXAMPLE)
There are 3 buckets to review when devising a plan to drive
business: ACCELERATE GROWTH, DEVELOP PEOPLE, DRIVE EFFICIENCY.
AH2 & Beyond Consulting can help you develop a sales plan that's guaranteed to drive sales! Contact us:
www.ah2andbeyond.com
Key Business
Imperatives Dashboard
Market Leader
Product A Growth
Training
Job Competency Key Account Coverage
Profiling/Targeting
Budget/Resources
National Sales Dashboard
Coaching Product B Growth
Drive Efficiency Develop People Accelerate Growth
Field Sales Time
Vacancy Rate
Compensation
Sales Processes
Product C Growth
Overall Products Growth
Account Management
Technology
Forecasting
Product A Volume Growth
Product B Volume Growth
Product C Volume Growth
Product D Volume Growth
There are 3 areas you can define when starting your global sales plan build: Potential Product Growth, Developing Your Personnel, Maintaining
Business Efficiencies.
This presentation will look at the diagnostics business for this example
Metric Tactic Progress / Results
Actual
Market leader for Business Unit Category in top accounts
Increase call average on top profiled accounts to increase and leverage relationship (including accounts we do not have strong relationships) Aggressively pull-through product offerings that differentiate from competition (I.e performance pricing based on ordering processes, product bundling strategies that encourage product line usage, and specific pricing. Thought leader development in each account to further level partnership Business Unit Director will identify and develop relationships with top 5 to 10 national accounts
Product Volume Growth
Profile and Identify key opportunities for increasing business unit product category (I.e. monthly utilization report, buying patterns, current pricing, and embellish value added benefits. Develop account product algorithms for the customer to help them identify cost savings to their bottom line P&L. Develop performance pricing incentives for accounts that agree to “bundle” product offerings, agrees to at least 2yr exclusivity contact, and specific volume purchasing.
Overall Product Volume Growth
We have to sell our complete product line on EVERY CALL Continue proper account profiling and targeting those accounts that have huge potential for our product line. Increase call average on those accounts where we have little representation. Conduct territory market research to uncover new business/customer opportunities that have not been previously recognized.
Key Tactics – Accelerate Growth This slide breaks down in a tactical format ways to increase product growth, keep in
mind this activity will always include actions from your sales people
Metric Tactic Progress / Results
Actual
Robust & Effective Training
Review with our account managers/sales people their knowledge of our products & services. Identify gaps in account management acumen and processes Selling Skills: Observe our folks’ ability to understand, identify, and meet customer needs. Understands their accounts thoroughly and can tailor message to meet customer needs and drive business. Sells multiple products effectively. Closes, closes and closes for increased business. Business Unit Director will gather feedback from training, and drive development plans for direct reports.
Job Competencies Improve Quarterly
Identify Company A competency model per position and review with direct reports. Business Unit Director will build core behavioral competency model if it does not exist already. Job competency discussion will be executed on every one-on-one work-session, and captured in the work-session “Feedback Form”. Career Development form will capture job competencies and performance. Business Unit Director will provide quarterly feedback to General Manager.
Coaching Direct Reports
Coach plans will be developed for each direct report and the focus will be on sales performance and competencies. Tracking report will be established to determine sales trends, budget use and sales goal attainment. Bi-Weekly reports completed by direct reports (I.e. account status, buys, potential buys etc).
Key Tactics – Develop People It’s critical that any plan has a development of people strategy, most companies
fail to place strategy around people management and development.
Metric Tactic Progress / Results
Actual
Key Profiling & Targeting
Identify the market through a segmentation process (I.e direct to consumer, small accounts/large accounts, new potential accounts, key competition accounts etc). Develop “Target Lists” Targeting account “characteristics” such as utilization volume, purchasing activity, competition activity, early adopters/late adopters, and peer influence. Evaluate account call average to ensure appropriate visibility and consistent pull-through product sales.
Effective Budget/Resource Use
Implement a budget management system (includes each product category) that makes the plan versus actual results visible to direct reports and upper management. Establish a Profit & Loss report that captures sales, sales resources, expenses, and margins to justify sales activities. Direct reports will be held accountable and evaluated on their use of the budget. This will be a critical part of their development
Compensation Planning
Develop an incentive program to drive the performance of our product line. Bi-Weekly or Monthly contests (I.e. top units sold, “converting for example Millipore accounts”, obtaining new accounts, and the most “bundling” accounts etc) Put together a “Field Compensation” input team to ensure buy in.
Technology
CRM Technology (records account activity, product utilization, and targeting) Siebel Technology (call reporting, budget reporting processes, compensation etc.)
Key Tactics – Drive Efficiency Managing efficiencies should be a critical emphasis to any global strategic plan
ACCELERATE GROWTH
(Market Analysis) The next slides provide an example of how you would interpret
Market Research & Analysis
U.S Market Competition is becoming more fierce
Competitors are gaining better customer intelligence
Competitors are increasing their technology capabilities
Sales Forces are becoming more aggressive
The Marketplace is becoming more fragmented with multiple channels of distribution
Marketing and Market Research budgets are much tighter due to compressed development period, niche product areas, and lower revenue per product.
Global Market U.S. & Global competitors are having a
greater presence in the EU Increased collaborations/mergers are
taking place with competitors (I.e. Siemens & CTI Molecular Imaging)
Companies are expanding their manufacturing facilities overseas
Specific customer targeting due to technology advances
The EU also facing liquidity issues as economic challenges impact market Global & U.S. customers are
demanding more attractive product offerings with favorable pricing.
Customers are favoring outstanding service and flexibility from Life Science Industry.
Accelerate Growth – Market Analysis
Busniess Life Cycle Example
-60-40-20
020406080
100
1999 2000 2001 2002 2003 2004 2005 2006 2007
1st Qtr2nd Qtr3rd Qtr4th Qtr
Unit Volume Demand: •Slowdown for new business is increasing because of economic issues
Accelerate Growth- Market Analysis (EXAMPLE) U.S. GE Imaging Buys Impact Global Markets
Total New US Product Buys: -14% YOY ($300M vs. $259M)
US Business Unit Buys : -26% Without adequate sales balance of
our complete product line the demand of products will weaken overseas
“No Change” status with our flagship products (Infinia/Infinia Hawkeye) have a huge impact on our profit margins
We need to strengthen our entire product portfolio greatly in the U.S. in order to be truly competitive in the global markets
$0$100,000$200,000$300,000$400,000
Nuclear M
edPet/C
T
Radiopharmacy
Total Vol
6 Mos. 20076 Mos. 2008
No Change -26%
No Change
-14%
Numbers/ Percentages are fictitious
U.S. GE Contrast Media Sales
United States Contrast Media Sales
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2000 2001 2002 2003 2004 2005 2006 2007 2008f
Myoview Omnipaque Visipaque Omniscan Adreview
2007 leveling off, slight decline in
2008
Accelerate Growth – Market Analysis (Example) Numbers/ Percentages are fictitious
Global GE Contrast Media Product Sales
Global Contrast Media Sales
0
10000
20000
30000
40000
50000
60000
2000 2001 2002 2003 2004 2005 2006 2007 2008f
Omnipaque Visipaque Myoview Omniscan Adreview
Global Sales relatively flat with
slight growth in 2007 & 2008
Accelerate Growth – Market Analysis (Example) Numbers/ Percentages are fictitious
Life Sciences Industry Landscape
Approx. $40 Billion Market Molecular Imaging & Media For Disease Discovery
Current Growth Drivers (Proteomics
Sequencing/Protein Drug Dev Homeland Defense Funding
$17B Life Science Tools (Biological Studies/Drug Dis/Dev)
$13B Industrial Tools (Industrial Apps/Environmental Testing
Molecular Imaging & Contrast Media for Disease Discovery
Segments
46%54%
ImagingMedia
Customers
40%
20%
40%
Gov/AcademiaPharmaBiotech
Accelerate Growth – Market Analysis (Example) Numbers/ Percentages are fictitious
ACCELERATE GROWTH (Customer Segmentation)
U.S./Globally The next slides provide an example of how you would implement a
customer segmentation process with our help
Initial Segmentation
Identification of Account types End User type segmentation Organization type segmentation Account segmentation based on product use
Leads to product positioning Sales Force deployment Target audience identification Forecast development
Need further segmentation to allow maximization of sales force direction and budget/marketing spends
Accelerate Growth – Customer Segmentation
Segmentation Should Always Encompass “CUSTOMER THINKING”
Understand the “Voice of the Customer” - Decide what products and services to offer - Identify critical features and performance specifications for those products and services - Decide where to focus improvement efforts - Get a baseline measure of customer satisfaction to measure improvement against - Identify key drivers of customer satisfaction Remember, you have internal and external customers
Accelerate Growth – Customer Segmentation
4 Components To Successful Segmentation
1. Know your customer
Thorough profiling Volume potential Buying patterns (Early Adopters versus Late Adopters) Identify the various processes that could impact your business
(could differ Globally) 2. Understand the customer “Buying Process”
Map buying process for each account (could differ Globally) Gain perspectives from multiple channels point of view
3. Develop plan to impact buying process quickly 4. Plan for pull-through once product is closed and stocked
Accelerate Growth – Customer Segmentation
Added To Protocol (open or
restricted)
Account Has Interest
Buying Committee
Review Process
Executive Committee
Review
Review Product/Pricing/
Service
Rejected For Protocol
Trial Period – Protocol/Non-
Protocol
Not Accepted For Use
Account/Hospital Training Process
Purchasing Committee
Variable step
s
Product Awarded Exclusivity
Potential Formulary Process
Identify Need Product Evaluation Buying Status Review
Stocking & Ongoing Review Status
Accelerate Growth – Customer Segmentation Example Of Identifying Buying Process (Template)
This process should occur in evaluating the potential of a small or large
account
Action Segmentation Analysis
Where to Play?
Which customer segments do we want to target?
Accelerate Growth – Customer Segmentation
Segmentation Frame
Accelerate Growth – Customer Segmentation
Copyr ight © 2005 M onit or Com pany G r oup, L. P. — Conf ident ial — NY6BBY- I O N Wher e t o Play Sum m ar y 5- 23- 05 AG
Account
Organiz ation
Higher Volum e Ac c ounts Sm al l Volum e Ac c ounts
M any Channels /M any Dis cip l ines
Purc has ing Dept/Buy ing Com m ittee, P&T or Ac c ount Buy er No Form al Buy ing
Com m ittee1 or 2 Dec is ion
M ak ersEarly Adopter Late Adopter
Big Pharm a Com panyM any Lab Departm ents
Biotec hCom pany
M is c Com pany
Sm al l Co
Pop Dens
1500+ ppl /m i2
Other (for profi t and gov t.)
A combination of account and organization variables can be used to explain differences in buying patterns and adoption behavior
The most meaningful and actionable account variables
were “early/late adopters”
The most meaningful and actionable Organization
variables were “Big Pharma”, “Small Pharma”
Business Unit Director Prioritization
Business Unit Director Segmentation Responsibilities Include: Develop relationships with Key Account personnel
(U.S./Globally) Call Frequency Accountability Face of the organization Maintain Key Account itinerary to track follow up
Anticipate and be proactive with market dynamics Partner with Key Customers to stay abreast of
market/competitive intelligence Stay a top market dynamics thru benchmarking and
market research Network, Network, and Network
Accelerate Growth – Customer Segmentation
Establishing Global Initiatives
Global Segmentation should consider the following steps: Identify richest targets
Research markets that offer the best future growth, this will establish long term business relationships
Identify the primary domestic and foreign competitors that could impact the segmentation process
Needs of the customer could vary from country to country, analyze issues important to the business
Put in place a global strategy plan Determine the appropriate global-local balance Ensure communication technology is adequate in order to
solidify collaboration and partnership Organize and track global projects that impact the business
Accelerate Growth – Customer Segmentation
DEVELOPING PEOPLE
(FOR OPTIMAL PERFORMANCE) Developing a strategic plan that focuses on developing your people is critical, the
next few slides provide an example
DRIVING OPTIMAL PERFORMANCE
INSPIRE COMMITMENT
SHAPE THE ENVIRONMENT
GROW SKILLS PROMOTE PERSISTENCE
FORGE A PARTNERSHIP
Developing People – For Optimal Performance
Strategies/Tactics To Forge Partnership
Strategy Tactic Progress / Results
Actual
Build an “acumen “ understanding of direct reports
Meet individually with each direct report to discuss their career goals and identify skills they need to achieve goals. “Connection Session”
Keep a running list of what’s important to my folks, update and review every quarter.
Listen thoroughly to your reports interests, opinions, concerns and goals. This is the “blueprint” of your people
Demonstrate consistency in your words and actions as the leader
Be predictable by letting your team know what to expect from you
Lead by example and inspect what you expect from your people.
Treat everyone on your team with RESPECT, and demand it in return.
Be fair but stern Treat everyone with respect and demand excellence of performance
Everyone will be evaluated based on their performance and competency.
Developing People – For Optimal Performance
Strategies/Tactics To Inspire Commitment
Strategy Tactic Progress / Results
Actual
Ensure that “Development” is a focus on every work-session
Each direct report will have a career development plan to review and update. A development discussion will take place on work-session.
Development plans will be officially review quarterly A tracking system will be put in place to keep up with employees
destined for additional responsibility.
Ensure Development options for “ready now employees”
Stretch assignments will be provided for those who have demonstrated performance and an interest to gain further development.
Team experts will be assigned based on team needs. Track promotion opportunities for each direct report.
Track and Sustain Progress
Refer to above strategy/tactic.
Developing People – For Optimal Performance
Strategies/Tactics To Grow Skills
Strategy Tactic Progress / Results
Actual
Create an effective learning environment
Consistently promote the value of training by identifying skill gaps of each direct report
Encourage team members to share best practices/lessons learned with each other at team meetings.
Model my commitment to development by sharing my development and asking for feedback on progress.
Coach Plans will be done after each work-session
Field Conference Report (FCR) will be delivered within 24hrs after the work-session has completed
Weekly Status reports from team will also help aid the the development process.
Identify readings, training programs etc to help supplement the person’s development and ways to help them apply training to current job.
Ensure learning opportunities exist on every one-on-one
Discuss with each team member and gain agreement on ways to work with them that will promote partnership and a learning opportunity.
Review work-session feedback report with team member to ensure alignment and agreement on how success can be gained moving forward.
Developing People – For Optimal Performance
Strategies/Tactics To Promote Persistence
Strategy Tactic Progress / Results
Actual
Ensure the team remains focus on executing our sales objectives/goals.
Each team member will be held accountable to execute results in their given responsibility (through status reports, sales results, and development plan).
Each work-session will begin with the review of prior actions plans that were completed to ensure follow through.
Business Unit Director will take advantage of “coachable” moments” (e.g. times when teammates experience success, disappointment or trying a skill for the first time).
Ensure feedback is consistent and has high impact
Field Conference Reports will always address what was observed the day of the work-session.
Identify opportunities for teammates to apply their developed skills many times, in many places, and in many ways.
Review work-session feedback report with team member to ensure alignment and agreement on how success can be gained moving forward.
Developing People – For Optimal Performance
Strategies/Tactics To Shape The Environment
Strategy Tactic Progress / Results
Actual
Be a powerful role model for development
Complete quarterly a 360 Feedback review from your team on your performance. Obtain a career/development coach. Build a competency model for the sales team if there is not one in place. Ask team members what kind of feedback and support they would like from you Recognize development efforts, and not just results only.
Align organizational polices and processes with coaching and development
Stay alert to company updates, and insights for tips that could help teammates through the development process.
Emphasize development in the business planning and performance-management practices.
Identify readings, training programs etc to help supplement the person’s development and ways to help them apply training to current job.
Developing People – For Optimal Performance
Development Tactical Planning Calendar (Example)
Tactics Q1 Q2 Q3 Q4
Account Business Plans 2/15 Revise Revise Revise
Career Development Plans 2/15 5/15 8/15 10/15
Allocation (Financial) 60% Re-evaluate 30% Re-evaluate
Unit Promotions 2
Recruiting & Selecting 2/15 5/15 9/15 Winter Break
Team Mentor-ship Program 2/15
Stretch Assignments/Action Plans
2/15 4/15 7/15 11/15
Siebel/CRM Team Experts (Training Initiatives)
2/15 6/15 ----- ------
Quicken New Hire Progress/Development
2/15 4/15 6/15 -------
Track Personal Development Plan
2/15 4/05 7/15 10/15
Insert Retention Tactics to “A” & “B” players (Development)
2/15 4/05 7/15 10/15
Developing People – For Optimal Performance
DRIVING EFFICIENCIES
(BUSINESS PROCESSES) The next slides provides you with
examples of specific business processes that can help your business
Budget Planning Process key deliverables
Budget Allocation & ROI Justification
Budget Milestones/P&L
1
2
Purpose & Use
• Prioritize spending to match company sales target goals
• Track allocations that impact the business (and do not impact the business)
Purpose & Use
• Match budget with milestones to justify ROI
• Assign budget ownership to ensure accountability
• Consistent budget communication to ensure alignment
Driving Efficiencies – Business Processes
2015 Budget Planning Process
Step Process Responsibility Timing
1 Beginning year preliminary budget planning meeting (discuss strategy and priorities, realistic amounts, and planning process).
Sales Finance
End of 4qtr before budget planning year
2 Initial account budget plans worked on for account planning year (Managers create budget proposals that includes monthly numbers, programs, and activities. Plan budget meeting with team
Sales Team Business Unit Director
End of 4qtr before budget planning year
3 Quarterly budget updates with team/VP/GM (Review budget milestones utilizing previous spreadsheet
Business Unit Director Sales Team
Quarterly Review
4 Collect Initial regional business plans worked on for business planning year
Sales Team December 10 before business planning year
5 Finalized Account Business Plans presented to Business Unit Director
Sales Team Business Unit Director
December 15 before business planning year
7 Consolidation of final budget/business plan data
Business Analysis Technology Input
January 10 of business planning year
Driving Efficiencies – Business Processes
Sales Performance Communication Process
Status Reports & Weekly Update Reports
Information Technology
(CRM or Siebel)
1
2
Purpose & Use
• Month end business status report to leadership team (template created)
• Friday status reports from team to Business Unit Director
Purpose & Use
• Efficient use of targeting and capturing data
• Reports can be transmitted easier and more consistently
• Data can be easily stored, uncover, and deliver
Driving Efficiencies – Business Processes
Report Expectations
Account/Sales Personnel Where to focus selling
effort Prioritize schedule
based on opportunities Act against the
competition Build Account Plan
(including action plans) Discuss effort, actions,
plan with sales director
Business Unit Director Where to focus team’s
selling effort Prioritize
Budget/Resources based on opportunities
Act against the competition
Build the Global Business Plan
Discuss efforts, action, plan with V.P./GM
Enhance coaching opportunities with Rep
Driving Efficiencies – Business Processes
T H E N E X T S L I D E S H O W S Y O U A N E X A M P L E O F H O W W E C A N H E L P Y O U
D E V E L O P A S A L E S O B J E C T I V E T H A T ’ S S U C C E S S F U L
Establishing An Overall Global Sales Objective In Your Plan Is Vital
SALES TACTICS
2015 BUSINESS UNIT SALES OBJECTIVES
SALES OBJECTIVES
Tactics:
Metric:
Tactics:
Metric:
Tactics:
Metric:
Tactics:
Metric:
SALES METRICS
Business Unit Sales
Recognized by our customers as consistently providing superior value and
professionalism
Attract, develop and retain top talent
Achieve Excellence in Execution Expect individual ownership & accountability to exceed our business goals & to outperform the competition
To be the #1 Healthcare Life Sciences Sales Force in the Industry
• Communicate company business goals • Develop 90 Day/Cycle Business Plans to address needs/capitalize on opport. • Provide report monthly on progress toward business goals • Revise and refine business plans quarterly • Provide ongoing feedback on performance against goals via FCR • Performance Midyear and Year-End • Performance evaluations against goals • Execute flawlessly Brand Strategy
•Sell/close complete product line on every call • Segment/Profile targets consistently to identify richest targets • Develop and execute a account operating plan in every territory • Optimize budget/resource utilization and maximize R.O.I • Increase Media/BPC sales immediately
• To recruit and select the best sales people • To provide training/development to enhance the skills and competencies of the sales force • To develop a culture that rewards diversity of thought/high performance and leverage the culture as a key retention tool • Stay focused on development planning
• Increase sales effectiveness through utilization of harmonized sales training and selling skills • Optimize product knowledge/selling skills training through national initiatives •Improve effectiveness with KOLs & key accounts
Vol Growth Targets Contrast Media Products Imaging Products/Servicing Total Business
Total CPA Targeted Calls/Day Targeted Pres/Call Account Calls As appropriate Rep Field Days 200 or 70% of available days Director Field Days 75 or 30% of available days
Regrettable Losses Time to fill Improve Diversity Vs 2008 Career Path Active Participation Sales Force/Feedback Forums Development Plan Completions
• Customer Survey Results Benchmark • SFE/Verispan – Specialty reports Improve Sales Training Assessments • Rep/Account Research
Andre’ Harrell
AH2 & Beyond Consulting www.ah2andbeyond.com
267-221-8529
