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EXAMPLE: Global Life Sciences Commercial Strategy Plan

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This slide presentation is for illustration purposes

This slide presentation is for illustration purposes
only and to show how AH & Beyond can help
you build a global strategic sales plan for the Life Sciences Industry.

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    EXAMPLE: Global Life Sciences Commercial Strategy Plan EXAMPLE: Global Life Sciences Commercial Strategy Plan Presentation Transcript

    • Global Commercial Strategy Plan Life Sciences Industry
    • This slide presentation is for illustration purposes only and to show how AH & Beyond can help you build a global strategic sales plan
    • Global Dashboard 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 Develop People Drive Efficiency Market Leader Training Profiling/Targeting Media Volume Growth Job Competency Key Account Coverage Sera Volume Growth Coaching Account Management Accelerate Growth Business Imperative Dashboard BPC Volume Growth Overall Product Growth Budget/Resources Field/Inside Sales Time Vacancy Rate Compensation Technology Sales Processes Forecasting
    • 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 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 Global Sales Director will identify and develop relationships with top 5 to 10 worldwide accounts Market leader for Cell Culture and BioProcess in top accounts  Media/Sera/BPC Volume Growth  Overall Product Volume Growth  Profile and Identify key opportunities for increasing Media/BPC business (I.e. monthly utilization report, buying patterns, current pricing, and embellish benefits of disposables. 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 (Media & BPC), agrees to at least 2yr exclusivity contact, and specific volume purchasing. 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. Progress / Results Actual
    • 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 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. Global Sales Director will gather feedback from training, and build development plans for direct reports. Robust & Effective Training  Job Competencies Improve Quarterly  Coaching Direct Reports  Identify Thermo Fisher’s competency model per position and review with direct reports. Global Sales 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.  Global Sales Director will provide quarterly feedback to management. 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). Progress / Results Actual
    • Key Tactics – Drive Efficiency Managing efficiencies should be a critical emphasis to any global strategic plan Metric Tactic 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. Key Profiling & Targeting  Effective Budget/Resource Use  Compensation Planning  Technology  Implement a budget management system (includes each business unit, region, and key accounts) 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 Develop an incentive program to drive the performance of our product line (importantly Media/BPC products. Bi-Weekly or Monthly contests (I.e. top units sold, “converting Millipore accounts”, obtaining new accounts, and the most “bundling” accounts etc) Put together a ―Field Compensation‖ input team to ensure buy in. CRM Technology (records account activity, product utilization, and targeting) Siebel Technology (call reporting, budget reporting processes, compensation etc.) Progress / Results Actual
    • ACCELERATE GROWTH (Market Analysis) The next slides provide an example of how you would interpret Market Research & Analysis
    • Accelerate Growth – Market Analysis Life Science Research Market 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 – Increase collaborations/mergers are taking place with competitors (I.e. Millipore & Astellas Pharma – 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 U.S. Product Buys Impact Global Markets No Change • -14% -26% $400,000 $300,000 $200,000 $100,000 $0 No Change 6 Mos. 2007 S Total New US Product Buys: -14% YOY ($300M vs. $259M) • US Sera 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 (Media/BPC Systems) have a huge impact on our profit margins To ta lV ol s ys te m P er a S ed ia P ro ro 6 Mos. 2008 – We need to strengthen our entire product portfolio greatly in the U.S. in order to be truly competitive in the global markets B PC M Numbers/ Percentages are fictitious Busniess Life Cycle Example 100 80 60 40 1st Qtr 20 0 2nd Qtr -20 -40 -60 1999 2000 2001 2002 2003 2004 2005 2006 2007 3rd Qtr 4th Qtr Unit Volume Demand: •Slowdown for new business is increasing because of economic issues •The decline in demand for capital lab equipment is opens the door for disposable options
    • Accelerate Growth – Market Analysis Numbers/ Percentages are fictitious U.S. BioProcess Container Sales United States BPS Sales S.U.B Powdertainer II Smartainer II S.U.M Labtainer 100000 90000 2007 leveling off, slight decline in 2008 80000 70000 60000 50000 40000 30000 20000 10000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008f
    • Accelerate Growth – Market Analysis Numbers/ Percentages are fictitious Global BioProcess Container Sales Global BPS Sales S.U.B Powdertainer II Smartainer II S.U.M Labtainer 60000 Global Sales relatively flat with slight growth in 2007 & 2008 50000 40000 30000 20000 10000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008f
    • Accelerate Growth – Market Analysis Life Sciences Industry Landscape Numbers/ Percentages are fictitious Approx. $30 Billion Market Instruments & Regents For Drug Discovery And Manufacturing $17B Life Science Tools (Biological Studies/Drug Dis/Dev) $13B Industrial Tools (Industrial Apps/Environmental Testing Customers Segments 20% Current Growth Drivers 46% 54% Instruments Reagents 40% 40% Gov/Academia Pharma Biotech Instruments & Regents for use in the Drug Discovery, Development and Manufacturing Process (Proteomics Sequencing/Protein Drug Dev Homeland Defense Funding
    • ACCELERATE GROWTH (Competitive Overview) The next slides provide an example of how you would uncover your chief competitors
    • Accelerate Growth – Competitive Overview Life Sciences Competitive Landscape Selected Players by Segment Top Life Science Companies by 2002 Revenue ($B) * Leading 2002 Companies 3% 2% 2% 2% 14% 4% 10% 5% 5% 8% 5% 5% Source: Annual Reports, Analyst Research * Revenues from Life Sciences Only 8% 6% 7% 8% S o u r c e : 4% A n n u a l R e p o r t s , A n a l y s t R e s e a r c h * R e v e n u e s f r o m L i f e S c i e n c e s O n l y Applied Bio $1.7 Thermo Electron $1.2 Amersham $1.0 Shimadzu $1.0 Perkin Elmer $1.0 Waters $0.9 Millipore $0.7 Invitrogen $0.6 Becton Dickinson $0.6 Mettler Toledo $0.6 Beckman Coulter $0.6 Agilent $0.5 Varian $0.5 Bio-Rad $0.4 Affymetrix $0.3 Sigma Aldrich $0.3 Qiagen $0.3 • Genomics • • Affymetrix , Agilent, Amersham, Applied Bio, • Invitrogen, Orchid, Perkin Elmer, Qiagen, Sequenom • • Proteomics • • Agilent, Amersham, Applied Bio, Becton Dickinson, BioRad, Bruker, Invitrogen, Qiagen, Thermo, Waters • • Bioassays • • Amersham, Becton Dickinson, Beckman Coulter, • Perkin Elmer, Tecan • • Protein Separations • • Amersham, Bio-Rad, Millipore, Waters, others • • Molecular Spectroscopy • • Bruker, Perkin Elmer, Shimadzu, Thermo, Varian • • General Lab Equipment • • Agilent, Beckman Coulter, Mettler Toledo, Shimadzu, Thermo, Waters • • Regents • • Applied Bio, Amersham, Becton Dickinson, BioRad, Invitrogen, Perbio, Qiagen, Sigma Aldrich,
    • Accelerate Growth – Competitive Overview Life Sciences Top Competitors • – S o u r c e : – A n n u a l – – – R e p o r t s , A n a l y s t – – – – – – CORE CAPABILITIES Life Sciences Market Drug Discovery and Development Lab Filtration Lab Water Upstream Bioprocessing Downstream Bioprocessing LIFE TECHNOLOGIES Life Technologies (NASDAQ: LIFE) is a global biotechnology tools company dedicated to improving the human condition. Our systems, consumables and services enable researchers to accelerate scientific exploration, driving to discoveries and developments that make life even better. The company has historical sales of approximately $3.5 billion, employs 9,500 people, has a presence in more than 100 countries, and possesses a rapidly growing intellectual property estate of over 3,600 patents and exclusive licenses. Life Technologies was created by the combination of Invitrogen Corporation and Applied Biosystems Inc. R e s e a r c h * • R e v e n u e s f r o m L i f e S c i e n c e s O n l y MILLIPORE Millipore (NYSE: MIL) is a Life Science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, we collaborate with customers to confront the world’s challenging human health issues. From research to development to production, our scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. Millipore Corporation is an S&P 500 company with 6,000 employees in 47 countries worldwide. CORE CAPABILITIES iBlot® Dry Blotting System for DNA AGT™ (Advanced Granulation Technology™) Produce high yields of soluble (dispersed) membrane proteins New Kits for exceptional gene delivery and enhanced protein expression SuperScript® VILO™ cDNA Synthesis Kit
    • Accelerate Growth – Competitive Overview Millipore Total Sales Numbers/ Percentages are fictitious $500,000 $400,000 $300,000 $200,000 $100,000 $0 8-Jul 8-Aug 8-Sep 8-Oct 8-Nov Cell Culture Supp $80,232 $82,345 $81,234 $84,098 $86,456 Cell Culture Media $56,980 $57,876 $58,456 $60,657 $59,770 Stem Cell Biology $143,000 $123,000 $130,000 $128,098 $132,556 Total Sales $280,212 $178,676 $366,693 $451,478 $413,700
    • Accelerate Growth – Competitive Overview Life Technologies Total Sales Numbers/ Percentages are fictitious $400,000 $300,000 $200,000 $100,000 $0 8-Jul 8-Aug 8-Sep 8-Oct 8-Nov Cell Culture Supp $75,998 $82,345 $81,234 $84,098 $86,456 Cell Culture Media $123,889 $130,000 $132,556 $141,003 $145,334 Stem Cell Biology $98,998 $123,000 $100,998 $115,877 $121,333 Total Sales $298,885 $335,345 $314,788 $340,978 $353,123
    • ACCELERATE GROWTH (Customer Segmentation U.S./Global) The next slides provide an example of how you would implement a customer segmentation process with our help
    • 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 Example Of Identifying Buying Process (Template) Identify Need Account Has Interest Potential Formulary Process Review Product/Pricing/ Service Buying Status Review Buying Committee Review Process Added To Protocol (open or restricted) Stocking & Ongoing Review Status Executive Committee Review Account/Hospital Training Process Rejected For Protocol Trial Period – Protocol/NonProtocol Not Accepted For Use Purchasing Committee Product Awarded Exclusivity Variable steps This process should occur in evaluating the potential of a small or large account Product Evaluation
    • Accelerate Growth – Customer Segmentation 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 Action Segmentation Analysis Where to Play? Which customer segments do we want to target?
    • Accelerate Growth – Customer Segmentation Analysis completed October 2003
    • Accelerate Growth – Customer Segmentation Confidential Action Segmentation ® FrameSegmentation Frame A combination of account and organization variables can be used to explain differences in buying patterns and adoption behavior Small Volume Higher Volume Accounts Account Purchasing Dept/Buying Committee, P&T or Account Buyer Many Channels/Many Disciplines Early Adopter Or ganization No Formal Buying Committee Accounts 1 or 2 Decision Makers Late Adopter Big Pharma Company Many Lab Departments The most meaningful and actionable account v ariables were “early/late adopters” Small Co Misc Company Pop Dens 1500+ Biotech Company ppl/mi 2 Other (for profit and govt.) BBY-ION Wh e re to Pl a Su ma 5 -2 -0 AG y m ry 3 5 T he most meaningful and actionable Organization v ariables were “Big Pharma”, “Small Pharma” 6 Co p y ri g h t © 2 0 Mo i o rCo mp n Gro u , L .P —Co n d e ti l — N 0 5 nt a y p . fi n a Y
    • Accelerate Growth – Customer Segmentation Global Sales Director Prioritization Global Sales 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 Account Teams 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
    • Developing People (For Optimal Performance) Developing a strategic plan that focuses on developing your people is critical, the next few slides provide an example
    • Developing People – For Optimal Performance Forge A Partnership INSPIRE Commitment Driving Optimal Performance Shape The Environment Promote Persistence Grow Skills
    • Developing People – For Optimal Performance Strategies/Tactics To Forge Partnership Strategy Tactic Build an “acumen “ understanding of direct reports  Meet Demonstrate consistency in your words and actions as the leader  Be Be fair but stern  Treat 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 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. everyone with respect and demand excellence of performance  Everyone will be evaluated based on their performance and competency. Progress / Results Actual
    • Developing People – For Optimal Performance Strategies/Tactics To Inspire Commitment Strategy Tactic Ensure that “Development” is a focus on every work-session  Each direct Ensure Development options for “ready now employees”  Stretch assignments will be Track and Sustain Progress  Refer to 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. 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. above strategy/tactic. Progress / Results Actual
    • Developing People – For Optimal Performance Strategies/Tactics To Grow Skills Strategy Tactic Create an effective learning environment  Consistently promote Coach Plans will be done after each work-session  Field Conference Ensure learning opportunities exist on every one-on-one  Discuss with each 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. 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. 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. Progress / Results Actual
    • Developing People – For Optimal Performance Strategies/Tactics To Promote Persistence Strategy Tactic Ensure the team remains focus on executing our sales objectives/goals.  Each team member Ensure feedback is consistent and has high impact  Field Conference 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.  Sales Director will take advantage of “coachable” moments” (e.g. times when teammates experience success, disappointment or trying a skill for the first time). 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. Progress / Results Actual
    • Developing People – For Optimal Performance Strategies/Tactics To Shape The Environment Strategy Tactic Be a powerful role model for development  Complete quarterly a Align organizational polices and processes with coaching and development  Stay alert to 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. 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. Progress / Results Actual
    • Developing People – For Optimal Performance Development Tactical Planning Calendar (Example) Tactics Q1 Q2 Q3 Q4 Account Business Plans 2/04 Revise Revise Revise Career Development Plans 2/04 5/04 8/04 10/04 Allocation (Financial) 60% Re-evaluate 30% Re-evaluate District Promotions 2 Recruiting & Selecting 2/04 5/04 9/04 Winter Break Team Mentor-ship Program 2/04 Stretch Assignments/Action Plans 2/04 4/04 7/04 11/04 Siebel/CRM Team Experts (Training Initiatives) 2/04 6/04 ----- ------ Quicken New Hire Progress/Development 2/04 4/04 6/04 ------- Track Personal Development Plan 2/04 4/05 7/04 10/04I Insert Retention Tactics to “A” & “B” players (Development) 2/04 4/05 7/04 10/04
    • Driving Efficiencies (Business Processes) The next slides provides you with examples of specific business processes that can help your business
    • Driving Efficiencies – Business Processes Budget Planning Process key deliverables Purpose & Use 1 Budget Allocation & ROI Justification • Prioritize spending to match company sales target goals • Track allocations that impact the business (and do not impact the business) Purpose & Use 2 Budget Milestones/P&L • Match budget with milestones to justify ROI • Assign budget ownership to ensure accountability • Consistent budget communication to ensure alignment
    • Driving Efficiencies – Business Processes Budget Milestones Table (Example) Business Plan Milestones (Milestone) Planned Owner Date Department Advertising TJ 12/17/2008 GM Training IR 1/10/2009 Sales Business Plan Review AH 1/10/2009 Sales Upgrade Product Mailer IR 1/16/2009 Sales Corporate Identity Program RJ 1/16/2009 Sales/Market Rewards Program SG 2/25/2009 Marketing "Bundling Incentive" Program (Adv) AH 2/25/2009 Sales/Market "Product Trial" Samples PR 3/26/2009 Marketing Technology Program (CRM/Siebel) SD 4/12/2009 Corporate Other Totals Budget 110,000 35,000 0 100,000 200,000 1,000,000 700,000 2,000,000 3,000,000 7,145,000 Actual Date Actual Date Budget Budget Variance Variance 1/15/2008 122,104 12/27/2008 24,000 1/23/2009 1,000 2/12/2009 86,200 1/15/2009 155,310 2/25/2009 1,500,000 1/10/2009 555,000 4/11/2009 2,720,100 1/25/2009 2,500,000 -29 14 -13 -27 1 0 46 -16 77 7,663,714 53 -12,104 11,000 -1,000 13,800 44,690 -500,000 145,000 -720,100 500,000 0 -518,714
    • Driving Efficiencies – Business Processes Budget P&L Table (Example) Line Item January February March Q1 April May June Q2 July August Budget $65,000 $75,000 $85,000 $225,000 $75,000 $80,000 $90,000 $245,000 $95,000 $100,000 Actual $60,000 $70,000 $88,000 $218,000 $95,000 $65,000 $88,000 $248,000 $95,000 $100,000 Budget variance (Actual – Budget) ($5,000) ($5,000) $3,000 ($7,000) $20,000 ($15,000) ($2,000) $3,000 $0 $0 Prior year $55,000 $60,000 $70,000 $185,000 $75,000 $80,000 $90,000 $245,000 $90,000 $95,000 Prior year variance (Actual – Prior year) $5,000 $10,000 $18,000 $33,000 $20,000 ($15,000) ($2,000) $3,000 $5,000 $5,000 Budget $50,000 $55,000 $65,000 $170,000 $55,000 $60,000 $70,000 $185,000 $70,000 $75,000 Actual $47,500 $55,000 $63,000 $165,500 $45,000 $55,000 $63,000 $163,000 $70,000 $75,000 Budget variance (Budget – Actual) $2,500 $0 $2,000 $4,500 $10,000 $5,000 $7,000 $22,000 $0 $0 Prior year $45,000 $48,000 $54,000 $147,000 $49,000 $51,000 $56,000 $156,000 $70,000 $80,000 Prior year variance (Prior year – Actual) ($2,500) ($7,000) ($9,000) ($18,500) $4,000 ($4,000) ($7,000) ($7,000) $0 $5,000 Budget $8,000 $3,000 $4,000 $15,000 $6,000 $7,000 $8,000 $21,000 $7,500 $8,500 Actual $10,000 $4,000 $3,000 $17,000 $5,000 $6,500 $7,500 $19,000 $7,500 $8,500 Budget variance (Budget – Actual) ($2,000) ($1,000) $1,000 ($2,000) $1,000 $500 $500 $2,000 $0 $0 Prior year $7,000 $6,000 $5,000 $18,000 $5,000 $6,000 $7,000 $18,000 $7,000 $8,000 Prior year variance (Prior year – Actual) ($3,000) $2,000 $2,000 $1,000 $0 ($500) ($500) ($1,000) ($500) ($500) PROFIT AND LOSS Revenue Cost of Goods Sold Sales and Marketing Costs
    • Driving Efficiencies – Business Processes 2008 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 Global Sales Director End of 4qtr before budget planning year 3 Quarterly budget updates with team/VP/GM (Review budget milestones utilizing previous spreadsheet Global Sales 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 Global Sales Director Sales Team Global Sales 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 Purpose & Use 1 Status Reports & Weekly Update Reports • Month end business status report to leadership team (template created) • Friday status reports from team to Global Sales Director Purpose & Use 2 Information Technology (CRM or Siebel) • 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 • Global Sales 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. – Enhance coaching opportunities with Rep
    • Driving Efficiencies – Business Processes Global Sales Communication Process Step Process Responsibility Timing 1 Sales team members will provide sales director a weekly status report. The report will include accounts covered during the week and their status with our product line. Sales Team Global Sales Director Weekly Report due every Friday 2 Monthly Scorecard due to sales director. Scorecard will capture unit sales per account. Sales Team Global Sales Director Sales Scorecard due on the 1st of every month 3 Global Sales Director will provide a monthly Global Sales Forecast/Actual Report to VP/GM. Global Sales Director Sales Team Monthly Sales Review with VP/GM (Face-To-Face Meeting) 4 Follow up with Sales Team on current sales, review strategies & tactics and account presentations by team members. Training included. Sales Team Global Sales Director Team Meeting (TBD) 5 One-on-One work-sessions with team members. Sales Team Global Sales Director Ongoing throughout calendar year
    • Establishing An Overall Global Sales Objective In Your Plan Is Vital The next slide shows you an example of how we can help you develop a sales objective that’s successful
    • 2009 GLOBAL SALES OBJECTIVES GLOBAL SALES VISION To be the #1 Life Sciences Sales Force in the Industry GLOBAL SALES OBJECTIV ES Expect individual ownership & accountability to exceed our business goals & to outperform the competition Achieve Excellence in Execution Attract, develop and retain top talent Recognized by our customers as consistently providing superior value and professionalism GLOBAL SALES TACTICS Tactics: • Communicate company business goals • Develop 90 Day/Cycle Business Plans to address needs/capitalize on opps. • 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 Tactics: Tactics: •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 Tactics: • 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 GLOBAL SALES METRICS Metric: Vol Growth Targets Media Products Sera Products BPC Total Business Metric: Metric: Total CPA Targeted Calls/Day Targeted Pres/Call Account Calls Rep Field Days Regrettable Losses Time to fill Improve Diversity Vs 2008 Career Path Active Participation Sales Force/Feedback Forums Development Plan Completions Director Field Days As appropriate 200 or 70% of available days 75 or 30% of available days Metric: • Customer Survey Results Benchmark • SFE/Verispan – Specialty reports Improve Sales Training Assessments • Rep/Account Research
    • Checkout my “Global Sales-Marketing Business Plan” for the Pharma/Med Device Industry featuring Pain Management. http://www.slideshare.net/aharrell2000/example-global-salesmarketing-business-plan You can also checkout my background/work by clicking on the following links: http://www.slideshare.net/aharrell2000 www.linkedin.com/pub/andre-d-harrell/5/13/382/ http://thesalesprofessionalnetwork.blogspot.com/ www.ah2andbeyond.com https://www.facebook.com/pages/Sales-Marketing-ManagementConsulting/267898536570725
    • Andre’ Harrell AH2 & Beyond Consulting www.ah2andbeyond.com 267-221-8529