Leaner, Better, and More Productive – a Business Unit Transformation for a Medical Device Company

Background and Challenges 

A worldwide developer, manufacturer and marketer of medical devices (cardiovascular MDs represent 70% of sales), operating in 45 countries and generating annual sales of about $10B, was experiencing a difficulty: a major business unit of the company was not able to respond to customer or governmental shifts. 

This occurred due to inefficient organizing and unclear Roles & Responsibilities/RACI.

The company asked Tefen to help it define a more effective use of current internal resources, aiming to achieve two main goals:

1. Improve the business performance, that could lead to potential impact on revenues

2. Implement a more competitive and lean organization, that could lead to potential impact on costs

The company also asked Tefen to help it analyze and improve its Sales Model, the Processes, tools & KPIs, and mobilization culture.

Tools & Methodologies

Tefen’s methodology included three parts:

1. Defining performance indicators, analyzing of target areas and roles, and identifying opportunities for a better resource allocation

2. Redesigning Sales Cycle, and clarifying responsibilities, tools and KPIs for each step; as well as defining the set skills needed by each role

3. Developing training materials and communication plan, and changing management support towards the new organization

Results

As a result of the project, the sales organization was optimized and turned Lean. It was now gearing toward effectiveness of the sales process and functional efficiency

Moreover, about 65% of the sales force in the target areas sensed an increase in performance above the plan - in only six months.