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CUOA Convegno Forza di Vendita - Luca Minotti

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Atti Convegno Forza di Vendita - 29 gennaio 2015 - Luca Minotti

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CUOA Convegno Forza di Vendita - Luca Minotti

  1. 1. Dimensionamento e specializzazione della FV: tecniche di progettazione Luca Minotti – Fondatore e socio Keras Strategy Altavilla Vicentina – 29 gennaio 2015
  2. 2. Luca Minotti FOUNDER OF KERAS STRATEGY Phone: +39 335 78 36 296 Luca's experience has included work in productivity, territory alignment, roll-out of business intelligence systems and project management for post-merger integration activities. He works primarily with clients in the pharmaceutical industry in Mediterranean countries. His experience includes consulting for strategic consulting firms in health care, lifescience, consumer goods, retail, and financial services practices. Luca holds a degree in Electronic Engineering from the Engineering School of the Politecnico di Milano, with a concentration in Software Engineering About myself Italian Army Officer
  3. 3. La rete commerciale Pfizer Italia 10 anni or sono  2.400 persone ! 3 NSD (1) BAD (9) HBM (23) RPM (9) Sales Intelligence & Effectiveness (30+1) GAM (23) Sales Training (40) Administration & Management Support (4) Sales Operations & Services (41) PRATT CV (23) Pratt (180) CV (60) POWERS UD (23) Powers (180) UD (60) ROERIG I&P (23) Roerig (180) I&P (60) LABS CNS (23) Labs (180) CNS (60) DAVIS P&I (23) Davis (180) P&I (60) SEARLE NEPSY (23) Searle (180) NePsy (60) SSD (1) HAM (9) HOSP (76) SM (1) AM (4) Ophtha (40) SM (1) AM (3) Onco (30) SM (1) Endo (10) Assistant (1)
  4. 4. Le sfide del pharma nell’ottimizzazione della leva Sales Force • Audience  350.000 medici in Italia, 50.000 Medici di base • Investimento  decine (se non centinaia) di M€ ogni anno • Differenziazione  comunicazione e servizi, per andare oltre il prodotto • Compliance  stretta aderenza alla comunicazione in scheda tecnica • Complessità  selling process variegati, e fortemente multidisciplinari • Salute  centralità del paziente • Competitor  grande aggressività nell’arena competitiva • Innovazione  per ottimizzare le risorse e come vantaggio competitivo… 4 Industry d’elezione per sperimentazione e ottimizzazione
  5. 5. SALES FORCE DESIGN Effective & efficient coverage of the full target account universe with a structure & deployment that best fit the value proposition & sales process strategies SALES STRATEGY Customer-focused strategy targeting the best growth opportunities with differentiated & mutually valuable offerings CUSTOMER ENGAGEMENT PROCESS Customer-focused & expertly executed sales processes & planning that maximize mutual value & trust PEOPLE & SKILLS Sales managers & salespeople with the knowledge, skills & attributes required to excel at their respective roles & responsibilities MOTIVATION Highly motivated, performance- focused & accountable sales force committed to “getting it done” & “doing it right” SALES OPERATIONS Highly efficient support capability that provides the sales force with the information, expertise, speed-to-market & efficiency needed to achieve superior performance = COMMERCIAL EXCELLENCE Gli ingredienti della Commercial Excellence Note: SFE Navigator TM is a ZS Associates trade mark
  6. 6. Commercial Excellence approach SALES OPERATIONS SALES FORCE DESIGN  STRUCTURE  ACCOUNT ASSIGNMENTS TO TEAMS  SIZING AND ALLOCATION  TERRITORY DESIGN SALES STRATEGY  MARKET INSIGHT  SEGMENTATION  GROWTH PRIORITIES  VALUE PROPOSITION  PRICING STRATEGY  SALES AND MARKETING COLLABORATION  LEADERSHIP ALIGNMENT CUSTOMER ENGAGEMENT PROCESS  SALES PROCESS  TARGETING, TERRITORY AND PIPELINE MANAGEMENT  ACCOUNT PLANNING  SALES TOOLS AND ENABLERS PEOPLE AND SKILLS  COMPETENCY MODEL  SELECTION AND HIRING  TRAINING  COACHING  PERFORMANCE REVIEWS AND ACTIONS MOTIVATION  CULTURE  METRICS AND DASHBOARDS  GOALS  INCENTIVES AND REWARDS DATA MANAGEMENT LEAD GENERATION AND MANAGEMENT REPORTING AND ADMINISTRATION ANALYTICS PRICING AND CONTRACTING SUPPORT PLATFORMS AND SYSTEMS Effective & efficient coverage of the full target account universe with a structure and deployment that best fit the value proposition and sales process strategies Customer-focused strategy targeting the best growth opportunities with differentiated and mutually valuable offerings Customer-focused and expertly executed sales processes and planning that maximize mutual value and trust Sales managers and salespeople with the knowledge, skills and attributes required to excel at their respective roles and responsibilities Highly motivated, performance-focused and accountable sales force committed to “getting it done” and “doing it right” Highly efficient support capabilities that provide the sales force with the information, expertise, speed-to-market and efficiency needed to achieve superior performance Note: SFE Navigator TM is a ZS Associates trade mark
  7. 7. ROI macro models ROI macro models La madre di tutti i mali Un approccio non rigoroso alla resource allocation 7 Tipici (ed errati) approcci all’allocazione delle risorse  Assumes the competition is right and the right benchmark  Profitability not considered  Assumes last year’s allocation was correct  Does not consider evolutions in the market place  Does not consider profitability  Does not help to prioritize tactics  Not enough analytical rigor involved  Too general, not customized for each brand  Too few data points to enable robust analysis  Often highest ROI is tied to lowest spend  Results often not used during the planning process  Not scalable and doesn’t instill learning Ad Hoc Template Approach Last Year + X% Share of Voice Y% of Sales Ad Hoc Template Approach Last Year + X% Share of Voice Percent of Sales  Results often not used during the planning process  Not scalable and doesn’t instill learning  Too few data points to enable robust analysis  Highest ROI is often tied to lowest spend  Not enough analytical rigor involved  Too general, not customized for each brand  Does not consider profitability  Does not help to prioritize tactics  Assumes last year’s allocation was correct  Does not consider evolutions in the market place  Assumes the competition is both right and comparable  Profitability not considered Approccio parziale  risultati sub-ottimali
  8. 8. La madre di tutti i mali Un approccio non rigoroso alla resource allocation Strategy Analysis Execution  Translate portfolio and brand objectives into promotional objectives  Understand market dynamics based on deep industry knowledge to focus promotion on the levers that have the highest impact  Identify customers with similar behavior to tailor promotional effort  Measure the impact of promotional tactics using advanced modeling approaches  Identify the drivers of success of promotional tactics based on rigorous analysis  Establish and allocate the optimal levels of investment via a transparent decision making process  Practical advice to design tactics that can be implemented by taking into account real world constraints  Evaluate historical effectiveness of tactics to identify insights for improving them  Build plans from the bottom up to maximize the impact at the local level Flexible tools to enable optimization and ongoing review What’s the game? Where to play? How to win?
  9. 9. Decidere l’allocazione delle risorse è un esercizio multidimensionale 9 MODELING CRITERIA Model Fit: • Historical Fit • Predictability Model Validity: • Error Trends • Effect of Individual Drivers • Outliers BUSINESS CRITERIA Final Resource Allocation Decision-Making: • Informative • Practical Business Rationale • Product Situation • Consistency vs. History • Industry Benchmarks
  10. 10. Il criterio principale – l’ottimizzazione del ritorno marginale 10 Gross Sales $$ = Sales impact of activity with or without additional years of carryover credit Profit= 2 - 3 Promotion Activity Promotion Activity Costs Profitability of Promotion Effort Net Sales $$ = Gross sales multiplied by the gross to net margin $MM 1 2 3 4 Activity Level $ 100 $ 50 Unit activity cost Profit mROI = 50/100 = 50% mROI (Incremental return at a given activity level) 5 Illustration
  11. 11. For Customer Effort Optimization, different methods can be used, depending on available data, analytical capabilities and time constraints Workload build-up  Are resource levels in line with income expectations?  Which segments and products justify coverage financially?  Where to invest or divest?  What is the relation between effort and sales?  Which products or customer segments need a different effort level? What is optimal?  What will be the sales impact of effort re- allocation or the overall change of the effort level?  How big are different customer groups?  What is a reasonable degree of coverage?  How much time is needed to have an impact? Contribution FTEs Value Segment  What resources are required by geographic area?  Which accounts / bricks are most profitable to cover?  Hint: considerations on geography should be made in all approaches Reps’ number Customers’ number Affordable coverage Differential resourcing/ Geographic model Sales response Resource estimation 2 41 3
  12. 12. Approcci all’ottimizzazione del Customer Effort Workload build-up The workload build-up method is used to size sales forces for markets with undifferentiated customers or where little data is available. The method requires 4 steps (starting from the bottom): Workload build-up method Segment C (1000 targets) Segment A (200 targets) Segment B (500 targets) Key Segments Total effort Size in FTEs Effort required for each target in each segment Maintain and grow key customers with 3 calls a month Prospect MDs with 1 call a month • Assess effort (in number of calls/year) needed per each target in the different segments • Identify key activities for each segment • Discuss with brand directors / sales leadership Maintain effort to mid value segments with 2 calls a month  Calculate the total effort needed: – Number of targets per segment × effort required per target  Calculate implied sales force size: – Total effort needed (in number of calls/year) / annual call capacity per rep ~31.2k calls (200 x 36 + 500 x 24 + 1000 x 12 = 31,200 calls/year) ~20 Reps Annual call capacity per rep: 8 calls/day × 200 working days/year = 1,600 calls/rep/year  Find the universe of the different customer segments for a product/product group (36 calls/year) (24 calls/year) (12 calls/year) Steps to follow Sample results 1 2 3 4 1
  13. 13. Approcci all’ottimizzazione del Customer Effort Affordable coverage The affordable coverage method establishes the segment coverage strategy by determining the account call frequency that achieves a company’s target rate of return per call. Affordable coverage method • Calculate revenues per customer • For each product, estimate total sales driven by the sales force (impactable sales = sales netted of the carry over) • Allocate the impactable sales to customer segments, then to targets Total Sales Impactable sales Target 1 Target 2 Target 3 Target 4 Target 5 Customer Segment A Value per target Cost to Cover Break even Steps to follow 1  Calculate costs per customer (derived from workload build-up) – Calculate cost per call (fully loaded rep cost/annual call capacity per rep) – Multiply effort per target (calculated as in the workload build-up method) to the cost per call 2  Calculate implied sales force size – Cover all accounts above the company’s target iROI – Sum up the effort needed for all accounts covered – Divide the total effort needed by the annual call capacity per rep 3 E.g. with a target iROI of 0% (break even), customers Q1 and Q2 will not be covered because they fall below the target rate of return Don’t CoverCover Value per target Segment A 50 52 53 53 23 17 8 11 12 12 6 5 29 48 34 24 21 18 15 9 7 4 4 3 3 3 2005A 2006B 2007F 2008F 2009F 2010F Launch Prod 2 LOE Prod 1 Cost per call Target 2
  14. 14. Approcci all’ottimizzazione del Customer Effort Differential resourcing The differential resourcing method, unlike the other methods, consists in a bottom-up approach where sales force deployment is decided before assessing the optimal size. Differential resourcing method Steps to follow 1  Choose the best footprint suitable Assess accessibility and footprint feasibility of the bricks to cover Remark: This step will be easily done with a map representation of covered/non covered bricks to better take into consideration geographical constraints 2 3• Assess which bricks should be covered • Carry out a brick level analysis to determine the profitability of each brick • Based on the bricks’ profitability, decide which ones should be covered Remark: this analysis is similar to the affordable coverage, at the brick level  Calculate implied sales force size Sum up resourcing levels (number of implied FTEs per brick) necessary to achieve the footprint in terms of: – Number of reps needed – Product emphasis for each rep Brick ID Revenue (€) Calls required Total cost Estimated profitability (€) Cover? FTEs 40549 23.5 60 12.0 11.5 Yes 0.060 40667 22.5 73 14.6 7.9 Yes 0.073 40668 39.4 226 45.2 -5.8 No 0 …… Illustration Determined from market sales by brick and share assumptions calculated from the validated product forecast Determined from the rep call capacity and fully- loaded cost Based on pre- determined business rules based on ROI Determined from the rep call capacity 1 23 Cover Do not cover 3
  15. 15. Approcci all’ottimizzazione del Customer Effort Sales response The sales response method is used when the relationship between sales force investment and company sales can be estimated. Sales Response method Steps to follow • Assess impact of sales force effort on revenues • Build a statistical model using historical data to calculate the impact of promotional effort on sales • Without historical data, the response curve can be obtained with benchmarks on another product, proxy data, team knowledge 1  Assess impact of sales force effort on costs – Calculate the impact of each level of effort (FTE1) on costs, including fully loaded rep costs and marketing costs 2  Calculate implied sales force size – Calculate the profit response to effort (sales – costs for the different effort levels) – Identify the optimal size considering the effort level that maximizes profit (at the top of the curve) 3 Effort (FTEs) Costs Effort (FTEs) Profit Profit maximizing area Effort (FTEs1) HistoricalSales Sales response to effort Effort costs Profit response to effort 4
  16. 16. Il bilanciamento dell’indice di allineamento (NON del carico di lavoro) è una tecnica cruciale per l’ottimizzazione del ritorno Territories should be designed to be well balanced according to 3 main dimensions:  Workload: visits to be delivered on the physicians in the territory  Sales potential: market potential  Travel efficiency: geographical dimension of the territory Illustration Workload > 50% Means we want to focus more on the # physicians seen by each rep / visit frequency Potential >50% Means we want to focus more on the market and/or the sales generated in each territory Alignment Index Potential Index Workload Index 1-x%x% Territories will be balanced and compared using an alignment index: optimal territories have an index value around 1 000, equal to 1 FTE
  17. 17. Sales effectiveness can be enhanced on the organizational & individual level - talent management is the critical link 17 Organizational Excellence Individual Excellence  Strategy  Structure & resources  Processes  Support infrastructure  Talent & values  Knowledge  Role fit  Behaviors & critical moves  Explicit growth strategy  Redundancy/ role overlap  Cross-functional alignment & collaboration  Faster & deeper analytic decision support  Identify & disseminate top- performer best practices  Identify & remove low-value approaches  Individual development & coaching plans Typical areas for improvement Typical areas for improvement  Competency models  Recruiting  Performance management  Training & development Talent Management  Specific competency model, well aligned with selling process  Consistent links between competency model, recruiting & performance management Typical areas for improvement
  18. 18. Il Playbook: uno strumento fondamentale per l’efficacia commerciale Esempio Selling Process Analyze area: Develop customer opportunity lists; gather information on competitor/industry; maintain [Company] product knowledge & sales priorities III. Customer Development IV. Opportunity Development I. Area Management II. Customer Targeting Identify decision makers Identify stakeholders & influencers Identify customer needs Review fit of [Company] offer Negotiate & close agreement Synchronize activities with Comm. Force colleagues Develop customer plan & synchronize w. colleagues Shape offer and value story Follow-up on order and any customer service issues Coordinate with supply chain Confirm product/solution availability Maintain/update customer information in CRM system Track account performance Assess competitor position Understand attitudes vs. [Company] and competitors Research customer’s business & success factors Conduct post-call review Adapt/configure sales collateral Conduct customer feedback discussion Network and build relationships Plan how to develop the opportunity Reinforce overarching value and benefit Plan call/interaction Execute call/interaction Manage the seasonal calendar Qualify Customers (initial contact) Consolidate & analyze customer opportunity lists Assess customer fit (validate segmentation membership) Rank order potential customers (shortlist potential targets) Select and prioritize customers (target list) Provide feedback to marketing (campaigns etc.) Host/participate in customer & influencer events Provide additional technical & non-technical information Confirm pricing and terms & conditions Review and reconcile distributor stock Provide general customer support (product performance etc.)
  19. 19. KAM Base Training Modules Il Playbook: uno strumento fondamentale per l’efficacia commerciale Esempio per Key Account Manager
  20. 20. Il Playbook: uno strumento fondamentale per l’efficacia commerciale Esempio Area Manager / Supervisor 20 Selecting Coaching Developing Leading Key relationships and networks Opportunity maximization Account planning discipline Sales process facilitation Localization Cross-functional engagement Resource allocation Performance hunt Motivating Evaluating Transformation People Manager Build, nurture and guide the team Customer Manager Strategize and foster customer engagement Business Manager Align and steer the business
  21. 21. • Spend 50% of the week on in-field coaching (1 day per rep per month) • Allocate the bulk of your coaching time to average performers (vs. top & bottom) • Aside from in-field coaching, ensure that some time is allocated towards coaching on account planning and strategy • For each rep maintain a “cheat sheet” with the key rep critical moves that you want to emphasize over the year – consistent with the objectives agreed during performance review • Articulate your incremental coaching strategy to achieve this; recap before each field visit; update after each coaching session with a goal for the next • Plan a specific goal for each coaching visit (e.g. rep masters “killer” closing questions, becomes more aware of body language, uses specific techniques to identify unexpressed client needs, etc.) • Script the coaching discussion (opening, message(s), examples, exercises, closing/next steps); reflect on potential objections or concerns and plan how you will respond • Ask reps to analyze their own performance before giving feedback • When making critical observations, frame them in an emphatic way, using sentences like "when I was a rep, I also used to…until I found out..." • Check rep's body language for signs of objection or disengagement and do something different to re-engage them • Check that you are not taking up all the "air time"; use pauses and probing questions to allow a two-way dialog Selecting Coaching Developing Leading Evaluating Motivating Il Playbook: uno strumento fondamentale per l’efficacia commerciale Esempio Area Manager / Supervisor
  22. 22. “We have run out of money, now we have to think” W. Churchill

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