Medical Device Link.

Originally Published MX March/April 2006

CONTRIBUTORS

In a changing market, careful planning is key. Not only must medtech executives keep watch over the industry's evolving competitive landscape and market opportunities, but they must also pay significant attention to the processes, systems, and people who drive a company's day-to-day operations. In this issue, MX explores strategies for managing vital areas of a medical device manufacturing operation, from employee training to customer interactions. In addition, this issue turns the spotlight on sales force management, with a panel of seven industry experts sharing their insights in "Managing a Medtech Sales Force".

Topspin

Scott

Beilein

Getting a company's employees on the same page can be a challenge. Workers, particularly those without financial backgrounds, often are not accustomed to looking beyond their day-to-day responsibilities to understand what effects their actions have on the business's bottom line. Tyco Healthcare (Mansfield, MA), which employs more than 38,000 people worldwide, has found that providing employees with financial skills training gives them a broader understanding of—and appreciation for—the company's direction and corporate goals. In "Aligning Employee Interests", John Scott and Joe Beilein describe a training program that has proven an effective way to align the interests and attitudes of a diverse workforce. Scott is vice president of organization development for Tyco Healthcare, which manufactures, distributes, and services an extensive product line that includes disposable medical supplies, monitoring equipment, wound-closure products, advanced surgical devices, medical instruments, and bulk analgesic pharmaceuticals. He can be reached at 314/654-7152 or via e-mail at john.scott@tycohealthcare.com. Beilein is a principal with Advantage Performance Group (St. Louis), one of the world's largest human performance consulting networks. He can be reached at 314/862-9212 or via e-mail at jbeilein@advantageperformance.com.

Business Planning & Technology Development

Johnson

Due to the ever-increasing accounting and information-management requirements being heaped on public companies, initial public offerings are now more daunting than ever. As a result, private medtech firms are likely to look to company sales to realize value for their investors. But setting up a company to catch the eye of an industry giant requires navigating a variety of hurdles, and executives looking to build their companies into acquisition targets would do well to develop every aspect of their business with this ultimate goal in mind. In "Negotiating with Giants", Charles J. Johnson outlines the key considerations for orchestrating a successful sale. Johnson is chair of the business and technology practice at the Boston law firm of Choate, Hall & Stewart LLP. The remarks cited in the article were taken from the conference "Perspectives from the Industry Giants," sponsored by Choate, Hall & Stewart and Brown Brothers Harriman. The conference was held in September 2005 at the Massachusetts Institute of Technology. Johnson can be reached via e-mail at cjohnson@choate.com.

Advertising, Distribution, & Sales

Kurtz

Customer relationship management (CRM) is a disciplined business strategy that can help companies create and sustain long-term, profitable customer relationships. Yet despite these opportunities, medtech manufacturers have historically been reluctant in their uptake of CRM systems. But times are changing. With CRM implementation success rates on the rise and a handful of medtech-specific solutions hitting the market, many medical device companies are ready to give CRM programs another look. In "Relating to Medtech Customers", Debra Kurtz provides an overview of the current state of CRM in the medtech industry and offers insights into how medical device executives can plan for effective CRM initiatives of their own. Kurtz, founder and president of Kurtz Consulting Inc. (Vernon Hills, IL), specializes in sales and marketing consulting for medtech companies operating in both conventional and retail markets. She can be reached at 224/715-1538 or via e-mail at consulting@debrakurtz.com.

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