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How to build a relevant sales force?
Wim van Gils



January 24, 2013
Why build a relevant sales force for Philips?

Philips has a lot of competitive weapons...      …but also faces a number of challenges



                  Deep market insights                           Global scale vs. local relevance



                  People and core capabilities                   Fragmented organization



                  Global footprint                               More external focus



                                                                 Step change in operational
                  Technology innovation
                                                                 excellence



                  Brand                                     Philips has the opportunity to unlock
                                                            commercial potential in the Markets
                                                                                                    2
Accelerate! Program unlocks Philips’ full potential through five initiatives,
with End2End and Customer Centricity directly impacting marketing & sales

Today: building high performance sales force


                                                       Resource to Win

                End2End                                                                       Customer Centricity




                                                  Accelerate!


    • Redesign customer value                                                           • Understand customer needs
      chains                                                                              and market requirements better
    • Deliver superior customer/                                                          than our competition
      consumer value                                                                    • Stimulate entrepreneurship
    • Implement faster, simpler, more                                                   • Drive local relevance, gain
      agile processes                                                                     market share
    • Execute excellently

                                          Operating model              Growth &
                                                                  Performance Culture

                                                                                                                           3
Our goal is to further improve the marketing and sales organization



  Increase focus on customer   Integrate customer approach   Standardize way of working




    Enhance data driven             Improve internal
                                                             Remove organizational silos
 decision making & analytics          transparency




                                                                                           4
Philips defines a capability as an aligned combination of people, tools,
processes and data


             Processes                                                                                   Tools

                                   Process                                     Applications
                                    flows




                         Performance        Roles &                    Templates        Infrastructure
                          measures      responsibilities




                                                           Alignment

                People                                                                                   Analytics

                                   Reward                                      Master data
                                   systems




                           Skills &          Culture                    Reports /         Analytics
                         competences                                   Dashboards




                                                                                                                     5
Market 2 Order Excellence is about sustainable behavioral change, driving
business impact with our customers

       Quick Scan                                 LEAN                   Channel CRM                        M2O Academy




                                                        M20 Excellence




• Determine maturity levels                                                                               • Help to develop Knowledge,
• Identify opportunities                                                                                    Skills and Attitude across the
                                                                                                            commercial organization
• Identify market-driven
  requirements                                                                                            • Driving Performance
                                                                                                            management by continuous
• Quickly adapt
                                                                                                            improvement
  to market            • Improve continuously                   • Accelerate building commercial
                       • Secure sustainability of business        capabilities
                         improvements                           • Create competitive advantages
                                                                • Incorporate commercial best practices
                                                                  in Philips culture


                                                                                                                                        6
Our customers will experience a Philips that is more relevant and sensitive
to their needs


      Relevant products                                   Service & after care




   • Better insight in customer                         • Lead follow-up
     needs                                              • Trigger-based service &
   • Matching product                                     after care
     propositions




        Relevant offers                                  High quality of contact




   • Pricing optimization
                                                        • Informed client dialogue
   • Cross-selling within sector
                                                        • Pro-active approach



                                                                                     7
In summary, M2O Excellence will bring a step-change in terms of how to win
with customers in their markets




                            Provide customers with a more coherent customer experience


                            Understand what is happening at a customer level (x-sector)


                            Identify sales opportunities due to increased visibility


                            Share best practices in sales across Philips


                            Drive improved and more predictable business results


                            Increase sales efficiency with less administrative work



                                                                                          8

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HPMC 2013 - Philips

  • 1. How to build a relevant sales force? Wim van Gils January 24, 2013
  • 2. Why build a relevant sales force for Philips? Philips has a lot of competitive weapons... …but also faces a number of challenges Deep market insights Global scale vs. local relevance People and core capabilities Fragmented organization Global footprint More external focus Step change in operational Technology innovation excellence Brand Philips has the opportunity to unlock commercial potential in the Markets 2
  • 3. Accelerate! Program unlocks Philips’ full potential through five initiatives, with End2End and Customer Centricity directly impacting marketing & sales Today: building high performance sales force Resource to Win End2End Customer Centricity Accelerate! • Redesign customer value • Understand customer needs chains and market requirements better • Deliver superior customer/ than our competition consumer value • Stimulate entrepreneurship • Implement faster, simpler, more • Drive local relevance, gain agile processes market share • Execute excellently Operating model Growth & Performance Culture 3
  • 4. Our goal is to further improve the marketing and sales organization Increase focus on customer Integrate customer approach Standardize way of working Enhance data driven Improve internal Remove organizational silos decision making & analytics transparency 4
  • 5. Philips defines a capability as an aligned combination of people, tools, processes and data Processes Tools Process Applications flows Performance Roles & Templates Infrastructure measures responsibilities Alignment People Analytics Reward Master data systems Skills & Culture Reports / Analytics competences Dashboards 5
  • 6. Market 2 Order Excellence is about sustainable behavioral change, driving business impact with our customers Quick Scan LEAN Channel CRM M2O Academy M20 Excellence • Determine maturity levels • Help to develop Knowledge, • Identify opportunities Skills and Attitude across the commercial organization • Identify market-driven requirements • Driving Performance management by continuous • Quickly adapt improvement to market • Improve continuously • Accelerate building commercial • Secure sustainability of business capabilities improvements • Create competitive advantages • Incorporate commercial best practices in Philips culture 6
  • 7. Our customers will experience a Philips that is more relevant and sensitive to their needs Relevant products Service & after care • Better insight in customer • Lead follow-up needs • Trigger-based service & • Matching product after care propositions Relevant offers High quality of contact • Pricing optimization • Informed client dialogue • Cross-selling within sector • Pro-active approach 7
  • 8. In summary, M2O Excellence will bring a step-change in terms of how to win with customers in their markets Provide customers with a more coherent customer experience Understand what is happening at a customer level (x-sector) Identify sales opportunities due to increased visibility Share best practices in sales across Philips Drive improved and more predictable business results Increase sales efficiency with less administrative work 8