process excellence - the biggest opportunity…..demand!

America’s Process Excellence

The Biggest Opportunity…..Demand!


Realize similarity of traditional functions

Marketing R & DDMAIC

DMADV

Creates

Sales OperationsDMAIC

DMADV

Executes

Sales has a Six Sigma Need where Marketing has a heavy Design for Six Sigma Need


Let’s talk about what is different……

Problem # 1: Our promotion is not getting the activity that we would like to see

Methodology Can Apply? What’s different

Can I define the Customer? Yes 1000’s vs. 1Can I establish a metric? Yes Spec’s are a challengeCan I collect data? Maybe A lot of times you might need a one off metricCan I validate the data? Yes But usually it is much more difficultCan I establish a baseline? Yes But it isn’t often a population sample not processCan I analyze variance? Yes Families of variation is our first line of defenseCan I study the process? Yes A lot of Human & Market influence. Regressions are commonCan I do a DOE on the process? Yes Setting levels more of a risk because you are affecting CustomerCan I Improve/Control the process? Yes No Positions in these organizations that are responsible for QC

Methodology is the same … but typically the process is not very accessible


Top 10 things to watch out for …

1. Change Management is Critical2. MBB must be able to translate the thinking3. Well Scoped projects are critical4. Put Commercial examples into the training5. Keep Class all Commercial6. Pick the best of the best7. Full Time resource is important8. Don’t try to make statisticians out of Sales people9. Budget for Market Research and IT work10. Make sure they have strong excel skills

Take a process focus to a non-process focused area and your can have big learning's


Process Excellence StrategyAmerica’s

Getting PE closer to the Customer


How do we Pick projects

Clear Consensus!The biggest $$ must have the biggest Opportunity

Data, $, and Consensus

Risk in being wrong!High Low

•Rep Admin/Office Time •Diagnostics •Inventory (Cat. Mgmt. Retail)


Data Correlation

Project Selection Reality

X’s = Drivers of the Patient and Doctor Behavior

Consensus Biggest Spend

Y’s = Business Success Measures – Sales Growth

ConfirmationsNew Learnings Y=f(x1, x2, ..,xn)


Updated : 1/8/2003

Promotional EffectivenessY Focus

Sales Force Effectiveness

Category Management

Diagnostic Effectiveness

% Electronic Orders

Promotional EffectivenessY Focus

Sales Force Effectiveness

Category Management

Diagnostic Effectiveness

% Electronic Orders

Sales Growth Market Dynamics

Total Soft CL Market Growth

Customer Satisfaction

Overall Satisfaction

Advertising Promotion

Effectiveness GRPs x Link x SOV

SG&A

Expenses DashboardMetric

VP Sales VP MarketingVP Customer Service

– Retail– ECP

-Affiliates

Sponsor

Champion

VP Sales

Director Sales – RetailDirector CS – ECP

Sponsor

Champion

Cash Flow

DSO

VP Finance

Director Distributor Sales

Let’s drill down on Sales Force Effectiveness

America’s Demand Generation DashboardAmerica’s Demand Generation Dashboard

VP Marketing

Director Dist

Director Sales Director Retail Director Marketing Director Marketing

100% Champion Trained


Region to Region

District to District.

Ter to Ter.

Time to Time

Rep to Rep.

Product to Product

CTQ- % Delta Sales Benefit - $ Delta

Sales

Inside vs outside.

BB Responsibility

Data Correlation

Clue Generation – Looking for the largest areas of Variance

Solution Tree SM


Multi Vari of % Sales Growth 01-02 by Terr

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Territory to Territory


Region to Region


Ter to Ter.

Time to Time

Rep to Rep.

Product to Product

CTQ- % Delta Sales Benefit - $ Delta

Sales

Inside vs outside.

BB project•% sales growth by Rep

Data Correlation

Focus Resources on the largest areas of Variance

Solution Tree SM


Measuring System

Sales Process

Validate Data

Region to Region


Terr to Terr.

Time to Time

Rep to Rep.

Product to Product

Stratify/Segment

CTQ- % Delta Sales Benefit - $ Delta Sales

Sales Rep Effectiveness AnalysisFull Time BB Sales Force Effectiveness

Sales Force Only GB Class- May

Potential X’s

Working sub projects

To Uncover Key Drivers to Rep Performance

% Inc 2001-2002

3020100-10

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Variance

3020100-10

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ncy Rep to Rep

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Region to Region


Time to Time

Rep to Rep.

Product to Product

Terr to Terr.

Coverage Call Quality/Effectiveness

Time Management

Sample Effectiveness

Promotion Deployment

Product Availability

Let’s focus on PROCESS!!! What are the major activities that a REP has to manage to grow their Territories? Projects should focus on key metrics in these areas but scope down to a manageable subset within these areas (i.e. brand, top accounts, one territory, retail (lenscrafters

only) etc) so their project is actionable and successful.

CTQ- % Delta Sales Benefit - $ Delta Sales BB Project

Solution Tree SM

Measuring System

Sales Process

Validate Data


Front office

Exam Rooms

CL fitting roomStorage

Shipments & Returns

orders

Front desk

Diagnostics Availability (TORIC)

DDU Redesign

Diagnostics Effectiveness

E-ordering ECP, Retail, Affiliates

Waiting room

Promotion Execution (Spring Makeover and Back to School)

POA Execution – Pick a Colour

30 $ Rebate Effectiveness

We are covering the entire in-office process

Returns/Exchanges ECP & Retail

POP material delivery

2 Week Spherical Sales call

Retail call - Lenscrafters

Inventory - ECP

Inventory - Sears

NPI process

Call Coverage and Reporting

Reduce non-value added time or Rep

Improve POP Lead time - Retail

Sales Rep

PE Surround Sound

Over $9M in PE Value!!!


Sales

Marketing

Things that worked

•Focus on the Selling event•Selling productivity is easy to understand – Lean application•Current data is not diagnostic data – Get IT support•Sales Reps are great team members but struggle as project leader•Need Infrastructure for Field Mentoring and Reviews

•Promotion effectiveness is a good fit•Partner quickly with Market Research•Crystal Ball Modeling is an easy fit•Lean out Development Processes•Save Advertising and Agencies for later


Take Six Sigma to the Customer

Sales folks are hungry for this

Biggest area for learning and $$$’s

We don’t listen to the customer…Big Opportunity

Get a Baseline of Culture before you start

Summary

Thanks for Listening

process excellence - the biggest opportunity…..demand!

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