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Case Example

Building Organisation for an American medical device company

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Client Challenge

Client company is an American medical device company. Its wholly owned subsidiaries are involved in developing products and devices meant for wound management and negative pressure wound therapy (NPWT). For NPWT portfolio Client company offers multiple designs of instruments differing in the kind of treatment it provides. Besides NPWT machines, Client company has also introduced products for advanced wound dressings(AWD), a business vertical that is managed by Client Inc. Systagenix is one more subsidiary that is associated with Client company.

Our Approach

Client company India needs assistance in the following organizational areas w.r.t. the recommendations made during the go-to market and growth strategy for its devices and products:
● HQ Organisation Structure:
- Define organisation structure of core functions such as Sales, Marketing, Clinical Application Specialists
- Define reporting relationship and their roles in the organisation in brief
● Sales Force Alignment (Feet on the street)
- Determine the resource deployment till 2021 required based on the institutions to be targeted by Client company:
- Priorities the list of cities for entry
- No. of Sales rep to be appointed in the selected cities
- No. of ASM/ RSM/ Field service personnel to be appointed in the selected cities
● Equipment Optimization:
- Determine the total equipment's to be installed in the selected cities based on the concurrency data provided by Client company
● Impact on LRP
- Payroll impact because of addition to organisation structure
- Impact of revenue because of organizational alignment
- Capital cost because of equipment
● In line to the above requirements, the UC Strategy team conducted primary research with select wound care industry experts only
● The UC team also conducted detailed 4-day workshop with the client team (India leadership) to assess the city by city deployment of resources
● A perspective from the Client company human resources, finance and operations team was also taken in this discussion
● Industry benchmarks across both Indian and MNC wound care companies were considered

Our Impact

Overall Structure
● As the organisation grows in next 3 to 4 years; there is a need of additional verticals by product types (NPWT/AWD) reporting to the respective commercial directors

Sales Team:
● Potential market for NPWT is expected to reach 1.8 lacs patients by 2021 with 180 cities contributing to ~80% of the demand; the focus should be on servicing 180 cities by 2021
● Client company needs to deploy an ~89 personnel sales team for NPWT in 2018 which will increase to 126 personnel by 2021
● Proposed Structure has delayered RSM designation in North, South and East regions; Span of control across hierarchy is within the range of 7-8 reportees
● Client company needs to deploy a separate team to focus on government accounts/ tendered purchase

● Client company is aligned in experience, main activities of the team; Product managers involvement with the region and sales is appreciated in an underpenetrated market
● The proposed structure is a centralized marketing team with 5 PMs; 1 AWD PM reporting to the marketing head till a separate AWD vertical/BU is formulated

Field Service
● It is recommended that current FSR team be maintained with process improvement recommendations stated below; team size needs to be reassessed at the end of 2 years
Operations – Equipment planning
● Client company needs to deploy total of ~1,800 equipment’s by 2021 to cater to ~30,000 patients across India

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