The “health” sector, described in the latest OASI report 2016, shows a fragmented Italian Health System in twenty-one Regional Health Services, given their profound diversity.
This is the typical challenge that healthcare products and services companies produce and distribute since the State-Regions agreements have dominated the delegation to the regions in terms of public health management.
To address these diversity, without having to necessarily create twenty-one micro-organizations within the company, you need to have a commercial management model that can take into account the diversity in a common approach to the end customer.
An organization needs to develop timely relationships with all stakeholders who are very “mobile” in terms of roles, functions, and activities involved in decision-making and buying processes.
Experience and common sense lead us to say that every situation is specific and different for every business and, in making choices about the processes and organization to be implemented, each manager is led to select the options most at hand To the necessary and effective ones.
For the first time for many years, good news is reported about the accounts that are finally “squared” in almost all Italian regions.
This often means a more aware and competent stakeholder activity, which is also increasingly geared toward managing healthcare efficiency and efficiency.
However, to counterbalance the balance of the accounts, there is still a strong imbalance between regions in terms of quality of services, with a 1.5% increase in inter-regional mobility, mainly from south to north.
This implies an organization capable of developing a strong verticalization approach, even in a framework of guidelines – from central to health development topics.
The above-described model has the purpose – described in the center of the image – to identify for its own reality:
To indicate whether individuals within these channels are directly or indirectly managed, or more simply, whether framed as employees or non-employees.
Indicating the orientation of the content of the interaction with the stakeholders, namely, the deeper understanding of scientific and technical elements of the product, rather than relational and contextual aspects.
To get the definition outlined above by choosing the correct setting for your reality, there are two “streams” of analysis that should be activated. Referring to the model image, on the left we have the Internal analysis, while on the right the External analysis of your target market. Let’s look at the two types in detail.
A company that operates in the Medical field may have one or all of the areas of products and services listed below:
The analysis of your Value Proposal should be carried out for each value area / single product or service, through a few key elements:
What you get from this analysis is a clear definition of Key Differentiators that will have to be exposed and emerge in each interaction with your customers, and indirectly determine the skills needed to make it work effectively.
The ultimate purpose of this analysis is to obtain a clear indication of the level and the way to carry out the “hedging” required to market both active and potential customers.
The key variables identified are:
The above-described complexity needs to be passed through some evaluation elements acting as “filters”, useful to give order and priorities in the definition of the ideal coverage level given the variables analyzed and the real possibility to put it into practice .
For Italian medical companies, it is increasingly evident that the margins of products and services, which are already falling, are inexorably destined to fall again, unless they are strong product / service innovations, which are able to synthesize the need for better quality and greater Efficiency of public and private health.
Sales costs do not, however, fall, in proportion to marginality. Especially in Italy, the Management is basically managing a form of “re-seller” relationship that purchases from the mother-house products with expensive costs, and little can do to make production efficient to lessen the prices and discounts practiced.
The original structure of many Italian medical companies is also a culture of “distribution and resale”. It is not uncommon for cases in which the parent company has acquired the pre-existing distribution reality in the current “country”.
This implies having a “legacy” structure that is strongly geared to managing stakeholder relationships by a sales force typically contracted as an agency. Alternatively – and often also at the same time – Italian companies have commercial staff as employees, typically in the role of “Area Manager” and “Sales Specialist”. In the experience of living experienced in the Sales Transformation projects, more often than not, despite the good intentions of distinguishing roles based on the contribution, little is done in defining within the business process, “who does what “And” how. “
At a time of strong contractions of marginality, it is crucial to devote attention to the management of the contributions by the actors of the trade process.
The above internal and external analysis can help in defining the alignment of the Business Process that is needed to overcome business challenges, and the Sales Organization best suited to carry it forward.
So, what is the balance between Direct or Indirect Sales and a Scientific Contribution, densely of scientific content, and Relational, which is largely based on what has been achieved, or is likely to, come into contact with stakeholders Market and key customers.