Growth in New Structures after Merger
Position: 2006-2009, Regional Vice President in MEA plus Russia at Merck KGaA, Total Employees Region: 500, approx 220 mEUR Turnover
Situation:
Post Merger Integration in MEA & Russia. Two very different legacies (Merck – Serono) needed to be integrated post merger. The aim: Keep growth momentum and product know-how for the new integrated portfolio and in all countries.
Measures:
New foundation of legal entities (Moskow, Tunis, Dubai). HR Process for 6 General Managers und Regional Team. Team Building and Business Structure (e.g. Business Review Meetings) to drive team culture and business success.
Results:
Growth above benchmarks in all regions/countries from 170 mEUR to 220 mEUR in less than two years (+27%). Competent structures in all countries including know-how for the integrated Product Portfolio.
Smooth Integration After Acquisition of a Competitor
Position: 2011-2012, CEO Netherlands Merck B.V., Total Employees 350, Pharma Revenue 40 mEUR
Situation:
PMI NL: Acquisition of Millipore by Merck in 2011. Integration of Customer Service Center (HC 250, Workers Council) into exsisting Merck Structures in the Netherlands.
Measures:
Alignment of Compliance and Governance, in particular Legal and Financial Guidelines. Revision of policies, such as defining the collaboration with the Workers Council, car policy, business reporting.
Results:
Successful finalisation before Deadline in alignment with the Workers Council.
Smooth transfer into new Policies for all legal entities in the country.
Profitability Increase after Portfolio Out-Licencing
Position: 2018-2019, General Manager Merck Korea, Total Employees 133, Revenue 78 mEUR
Situation:
Portfolio out-licensing in Korea: Part of the Product-Portfolio was considered not being profitable enough with negative effect on Total Profitability.
Measures:
Two Products were licensed out to two different Partners for detailing at General Practitioner level. HC Reduction of 45 employees, partially transferred to new partners.
Results:
Total profitability increased by 2-3% in operative EBIT.
Reduction of Complexity: Restructuring Preparation for a Spin-Off
Position: 2019-2020, Chief Operating Officer Allergopharma, Germany, Total Employees Commercial: 150, Revenue 100 mEUR
Situation:
Spin-Off of Company of Corporate Portfolio as the company was not profitable and had no strategic fit with core Pharma business. Turn-around needed in preparation for spin-off.
Measures:
Significantly improved cost structure in global commercial structures worldwide. Main contribution by reduction of structural complexity in operational business, e.g. in international affiliates.
Spin-off within 12 Months.
Results:
Significant increase of total company profitability within one fiscal year. Sell-off well before deadline, 5 months after kick-off.
It is not about the amount you invest, but how you invest – Successful Launch, leveraging a focused Marketing Strategy
Position: 2011-2012, CEO Netherlands Merck B.V., Total Employees 350, Pharma Revenue 40 mEUR
Situation:
New rare disease product for PKU (Phenylketonuria), global launch strategy not successful in the Netherlands. No extra budget for any other launch activities. Product sales did not develop at all.
Measures:
Focused on main KOL initiating a study using a new test to detect patients with leading university in the country (Groningen). Initial Investment funding tests to validate Phenylalanine levels in patients, until it became standard procedure support by payers.
Results:
Stable revenue of 5 mEUR/a with lean coststructures. Highest annual revenue after USA and Germany, despite smaller Market size of the NL.
Customer Knowledge and Market Insights drive Growth
Position: 2018-2019, General Manager Merck Korea, Total Employees 133, Revenue 78 mEUR
Situation:
Stagnating Sales for the most important Oncology Product despite a growing Market in that segment (Colorectal Cancer) resulting in loss of Market Share.
Measures:
Focus on newly identified target groups (Surgeons) as in approx. 30% the surgeons appeared to be the main decision makers in the hospitals, as they focused on patients with liver resections, discovering the value of the product.
.
Results:
Regain Growth of 5-10% for the following two years with significant Market Share gains.
Sales Made Simple: Regain Marketshare using Basics Sales Force Effectiveness Measures and Clear KPIs
Position: 2010-2014, CEO Merck Benelux, Total Employees 350, Pharma Revenue ca. 40 mEUR
Situation:
Belgium : Stagnating Sales of main Oncology product despite Market Growth in that segment (Colorectal Cancer) resulting in Market Share losses. Annual sales target at risk (-15% behind target at that moment).
Measures:
Exchange of BU head. Introduction of a (basic) Sales Force Effectiveness (SFE) programme. Clear KPIs and Reporting Structure. New targeting following recent Market Intel. Update of key messages and product materials for the communication with customers.
Results:
Regain of Market Share. Annual target was still achieved.
Channel Switch moving from Wholesalers to Direct Sales doubled Market Share
Position: 2011-2012, CEO Netherlands Merck B.V., Total Employees 350, Pharma Revenue 40 mEUR
Situation:
Netherlands, Gonadotrophines: Forced Price Reductions by Insurers. Market Share wins by low-price competitors with Market Share losses for us.
Measures:
Change from Wholesalers to direct-delivery with saving of 8% Margin. Price decrease by 4%, redistribution of rest margin to finance logistics cost and price decrease price for customers (hospitals). Increase of Service Portfolio (e.g. training for nurses).
Results:
Attractive Price compared to competition and extra benefits of product portfolio. By using direct delivery models and increased services we could drive Market Share from 35% to 60% in 18 months.
„Impossible is Nothing“! Fax goes Online – Digitization of Product - Ordering Process
Position: 2019-2020, Chief Operating Officer Allergopharma, Germany, Total Employees Commercial: 150, Revenue 100 mEUR
Situation:
Status Quo: Personalised product orders via Fax facilitated by Pharmacies. No link and digital data transfer between Customer Service and ERP system. High manual workload and lack of quality data input due to individual mistakes.
Measures:
Digital order via Pharmacies using the prescription directly. Making use of the MSV3 dataplatform of the exsiting pharmacy software. Full digital data transfer to ERP.
Results:
Reduction of manual workload, focus on „real“ customer service, decrease of employees in Customer Service from 15 to 10. Less complexity in confectioning final products.
Digitization of Customer Journey increases Customer Base by 40% (Targeted Marketing)
Position: 2018-2019, General Manager Merck Korea, Total Employees 133, Revenue 78 mEUR
Situation:
Need to build a digitized Omni-Channel marketing – und Sales Modell: Cost pressure, Changing Customer Behaviour, lack of reach of some key accounts.
Measures:
Digitization of all materials, developing so called Customer Journeys for a better “Storytelling”, Changes of Marketing structure, responsibilities and job descriptions, Training of “Telereps” working by telephone only.
Results:
Contacts per customer and frequency increased, decrease of cost per call, widening of customer base (from 1700 to 2200).
Forward Integration drives Profitability: Order - App for Wholesalers
Position: 2018-2019, General Manager Merck Korea, Total Employees 133, Revenue 78 mEUR
Situation:
Digitization and simplification of Order Processes with Wholesalers, which included 60 partners in the beginning, many of them small family owned businesses. Order initiated by Fax. Wholesale partners had little overview and control over stock resulting in late orders or wrong quantities. High admin and costs for Merck.
Measures:
Digitization of order process using an App easily applied on a moblie phone which would suggest an order size and date to partners. If agreed, they could order imidiately with one click. Reduction of partners from 60 to 40. Later extended to include automated payments.
Results:
Decrease of admin work (internally) from 30 min to 3 min per order, margin increase by 2-3%, complete overview of stock in transition (in warehouse at wholesale level). Shortening of payment terms.