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Commercial Excellence Sales Plan (Example)


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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:

Published in: Business

Commercial Excellence Sales Plan (Example)

  1. 1. NOT T O B E U SED F OR C OM M ERC I A L U SE 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
  2. 2. 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:
  3. 3. Key Business Imperatives Dashboard Market Leader Product A Growth Training Job Competency Key Account Coverage Profiling/Targeting Budget/Resources National Sales Dashboard CoachingProduct B Growth Drive EfficiencyDevelop PeopleAccelerate 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
  4. 4. Metric Tactic Progress / Results Actual Market leader for Business Unit Category in top accounts Increase call averageon 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 algorithmsfor 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 territorymarket 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
  5. 5. 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 competencymodel if it does not exist already. Job competencydiscussion will be executed on everyone-on-one work-session, and captured in the work-session “Feedback Form”. Career Development form will capture job competenciesand 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-Weeklyreports 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.
  6. 6. 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 appropriatevisibility 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 programto drive the performance of our product line. Bi-Weeklyor 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
  7. 7. ACCELERATE GROWTH (Market Analysis) The next slides provide an example of how you would interpret Market Research & Analysis
  8. 8. 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
  9. 9. Busniess Life Cycle Example -60 -40 -20 0 20 40 60 80 100 1999 2000 2001 2002 2003 2004 2005 2006 2007 1st Qtr 2nd Qtr 3rd Qtr 4th 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 N uclearM ed P et/C T R adiopharm acy TotalVol 6 Mos. 2007 6 Mos. 2008 No Change -26% No Change -14% Numbers/ Percentages are fictitious
  10. 10. 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
  11. 11. 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
  12. 12. 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% Imaging Media Customers 40% 20% 40% Gov/Academia Pharma Biotech Accelerate Growth – Market Analysis (Example)Numbers/ Percentages are fictitious
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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 Variablesteps 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
  18. 18. Action Segmentation Analysis Where to Play? Which customer segments do we want to target? Accelerate Growth – Customer Segmentation
  19. 19. 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 all Volum e Ac c ounts M any Channels /M any Dis ciplines Purc has ing Dept/Buy ing Com m ittee, P&T or Ac c ount Buy er No Form al Buy ing Com m ittee 1 or 2 Dec is ion M ak ers Early Adopter Late Adopter Big Pharm a Com pany M any Lab Departm ents Biotec h Com pany M is c Com pany Sm all Co Pop Dens 1500+ ppl/m i2 Other (for profit 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”
  20. 20. 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
  21. 21. 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
  22. 22. DEVELOPING PEOPLE (FOR OPTIMAL PERFORMANCE) Developing a strategic plan that focuses on developing your people is critical, the next few slides provide an example
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. Strategies/Tactics To Shape The Environment Strategy Tactic Progress / Results Actual Be a powerful role model for development  Complete quarterlya 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
  29. 29. 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
  30. 30. DRIVING EFFICIENCIES (BUSINESS PROCESSES) The next slides provides you with examples of specific business processes that can help your business
  31. 31. 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
  32. 32. 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 beforebudget 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 beforebudget planning year 3 Quarterly budget updates with team/VP/GM (Review budget milestones utilizing previous spreadsheet Business Unit Director Sales Team QuarterlyReview 4 Collect Initial regional business plans worked on for business planning year Sales Team December 10 beforebusiness 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 January10 of business planning year Driving Efficiencies – Business Processes
  33. 33. 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
  34. 34. 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
  35. 35. T HE NEXT SLI D E SHO WS YO U A N EXA M PLE OF HOW WE C A N HELP YOU D EVELOP A SA LES OB J EC T I VE T HA T ’S SU C C ESSFU L Establishing An Overall Global Sales Objective In Your Plan Is Vital
  36. 36. 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 ExecutionExpect 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
  37. 37. Andre’ Harrell AH2 & Beyond Consulting 267-221-8529