Consistently beating market growth over time means winning competitive market share. This requires excellent commercial capabilities in marketing and sales, as growth must be predominantly loyalty-driven and not price-driven in order for this growth to be sustainable over time.
In our experience, developing the muscle-memory to become a market-beating company requires some degree of commercial transformation, in order to not only better understand what drives customers to buy from you but also making sure that your commercial organization is delivering what the customer wants. Although these topics may seem simple and obvious - it is surprising how many organizations are on 'auto-pilot' as they have always done things in a certain way and assume positive future growth.
Considering that less than a third of all B2B commercial transformations have proven successful over time and most of these failures are due to an organization’s inability to adopt required new behaviors quickly and completely, it is imperative that any commercial transformation project is implemented properly and with a well-constructed plan of action.
As the late infamous business guru Peter Drucker once wrote "If you can't measure it you can't manage it", which is very relevant for any commercial transformation. You need to know where you want to go before you depart - so any target KPIs must be clear and measurable.
Warren Buffet also once said "The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business."
We offer bespoke consulting services across the entire spectrum of commercial transformation, ranging from full-blown transformations to strategic elements thereof, including Business Intelligence and Analytics, Price and Profit Optimization and Project Management.
We work with you to create a program that is built specifically to create traction and deliver results quickly to unlock value within the commercial organization and to ensure sustainability over time.
Price and Profit Optimization (PPO)
At the heart of any successful business lies the ability to optimize margins whilst maintaining high customer loyalty. Our Price and Profit Optimization projects are designed to diagnose potential margin leakage by deploying sophisticated BI tools and dashboards to better understand and control contribution margin by customer, enhancing commercial team focus on the right customer/product blends and driving increased sustainable bottom-line performance.
With many B2B organizations operating legacy commercial models in a rapidly changing environment, there is often a mismatch between customer expectations and supplier offering, creating cost-of-sales headwinds and/or sustained price/market-share erosion. Our Commercial Transformation projects involve an in-depth diagnostic phase, followed by a detailed transformation roadmap, designed specifically for each client, addressing GTM models, sales force effectiveness/optimization/training and customer segmentation/positioning.
Mergers, Acquisitions & Divestments
The healthcare sector has always been attractive to both private and institutional investors, mainly driven by demographics and strong cash flows. This has in turn led to increased market consolidation and significant M&A activity from corporations as well as Private Equity. Having been involved in over 5 significant M&A deals ranging from $500M to $12B, we have significant and valuable experience in what works well in due diligence, pre- and post-deal activities and integration. More importantly, we know through experience what does not work and where either value or synergies have been lost. The team at VPRO can help provide input on these types of transactions to ensure smooth transitions without unintentional loss of value.
Procurement & Purchasing Contracts
Selling successfully in a B2B environment is tough and becoming harder each year. However, the same is also true for B2B buying. Procurement has matured from an administrative business function to an important stakeholder in most main purchasing decisions organizations make. The team at VPRO has has extensive experience on both sides of the table and can provide valuable guidance to both suppliers and customers on how to structure buying initiatives that provide the right framework for a successful outcome. In recent studies, over 38% of all B2B buying initiatives ended in no-decision, which is a serious waste of time and resources that could be avoided.
Project Management Office (PMO)
Running a well-equipped and functional Project Management Office (PMO) for strategically important projects can make the difference between success and failure. This is an often underappreciated business function that many organizations lack in-house resources for. Gearing up the right PMO resources can ensure organizational projects can be successfully delivered in full and on time with minimal major incidents and adhering to tight project timelines and complex business restructuring. VPRO can help put experienced PMO leaders in place on a project or interim basis, providing expert support throughout.
Business Intelligence (BI)
Every business generates terabytes of data in their ERP and CRM systems, but few are really skilled at leveraging all available internal and external data into actionable business strategies to drive profitable growth. The VPRO team can help develop key management dashboards with commercial performance KPIs giving unprecedented 'live' insights into leading and lagging indicators with full drill-down capability. Management teams can be empowered with new insights to make better and more informed business decisions and develop powerful new strategies to drive organic growth.