ge healthcare gssi 2011 - milan june 23, 2011 marco ortolina – gm accessories emea “selling...
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GE Healthcare
GSSI 2011 - MilanJune 23, 2011Marco Ortolina – GM Accessories EMEA
“Selling Internally…an Easy Job”
Company Proprietary Information - Confidential
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Founded by Thomas Edison in 1878
Only company from the original 1896 Dow Jones index still listed
today
300,000+ employees world-wide
$157 billion revenue in 2009
GE – A heritage of innovation
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GE business segments
Aviation
Energy
Home & BusinessSolutions
Water
Oil & Gas
CommercialFinance
GE Money
CorporateTreasury
Transportation
Healthcare
TechnologyInfrastructure
EnergyInfrastructure
GECapital
NBCUniversal
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GE Healthcare
$16 billion global business unit of GE
46,000 employees worldwide
$1 billion+/year investment in R&D
Core strengths in bio-sciences, technology, business
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Broad solutions for healthcare
Biopharma- ceutical solutions
Medical diagnostics
Electronic medical records
Diagnostic imaging &surgery technologies
Integrated admin. & clinical
Clinicalproducts
Picture Archiving System (PACS)
Protein & cell sciences
Service
Broad-based Technologies
LifeSciences
InformationTechnology
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EMEA Accessories for Diagnostic Imaging
“Selling Internally…an Easy
Job?”
#1 – Setting the Stage
Our business model
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Accessories for Diagnostic Imaging What we sell
Distribution of ~ 1,000 products, ~$50m turnover
Selling price from $50 to $150,000 ~ 80 suppliers~ 1,000 final customers across EMEA Public hospitals and private clinics From consumables to peripheral products• Injectors• Uninterrupted Power Supplies• Printers • Positioning lasers• Starter kits for clinical procedures
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Accessories for Diagnostic Imaging How we sell
Accessories
End customers
Equipment sales
Service sales
Regional accessories leaders
End customers: mainly buy “locked-in” configurations…accessories w/o a true market price
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Equipment sales: our 1st internal customer…no hierarchy leverage…can source accessories locally
if our transfer price is too high or the service delivery for accessories is better at local level…90% of accessories sales through themService sales: 10% of sales through them…no hierarchy leverage…accessories sold as standalone and subject to open market priceRegional leaders: part of the accessories team…no direct contact with customers…support and influence the Equipment and Service sales teams
#2 – Key Learning
How to maximize sales when your customer is an internal
one
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Learning #1Transform your multi-functional team into an all-around “sales team”. Everyone to adopt a sale
approach. Sales growth as ultimate goal for everyone
Status 15 people team. Marketing, Operations, Service, Quality, Finance, Complaints, Sourcing, IT
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How toAlignment of individual Goals & Objectives and rewards policiesWeekly sales & orders reports, sent to everyoneDaily business updates (1 hour), all functions contributing and living the “full picture”Leadership to infect the team with a “love for growth”…and live it everydayInvest time to create the right connections between the team and the internal stakeholders. Provoke meetings, connect the dots, and let the team carry on from that. The objective is to talk with the right people…the outcome will naturally follow
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Learning #2Go-to-Market simplification. Make it extremely easy to sell an accessory and service it, from quotation to
physical delivery and installed base management
Status Accessories is a small and complex business within GEHC. Nobody really care about them…except when there are issues
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How toReduce # of suppliers, choose global ones with bullet-proof service delivery1 full time resource to manage systems for quotation, order, sale, shipment (there are 8 different IT systems!!!)1 senior resource to act super-fast on customer complaintsQuarterly newsletter to +400 equipment and service sales teamBe aware that “over-communication” to internal stakeholders is the norm, and not the exception
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Learning #3Leverage the Regional Accessories Leader. Transform former sales guys (“Soldiers”) into “Generals” whose
goal is to manage the business through influence, coaching, and technical support
Status Regional Leaders do not see the customers and do not have a hierarchical link with equipment and service sales
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How toChange the compensation plan, and introduce metrics to measure influence on local sales teams and feedback of new products to headquartersMake sure the entire team (and not only the Marketing folks) are connected with the Regional LeadersTake the sales report preparation out of their daily routine…and let them focus on driving the business from a higher perspective