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V E RT I C A L B U S I N E S S HOW

TO

B O O S T S A L E S G L O B A L LY


Complex traditional set-up with room for improvement

1


Initial situation: Unutilized growth potentials due to missing global steering Santiago studies (e.g. Handelsblatt Management-Forum) show: Organizational set up key barrier to above-average growth Typical as-is organizational set-up

Key findings

Headquarter Board Member 1

Board Member 2

Business Unit1

Board Member 3

Business Unit 2

Board Member …

Business Unit 3

Different countries are reporting to different Board members: Difficult cross-business/cross-country alignment Operational business is driven on country/legal entity basis: Business Units don`t have direct, global steering power Regions do not exist or roles are unclear: No cross-country/cross-regional synergy realization Sub-regional units are missing: High steering complexity due to multitude of direct reports

Field organization Country1

Country 2

Country 3

Country…

Sales

Operations

Sales

Operations

Sales

Operations

Sales

Operations

HR

F&A

HR

F&A

HR

F&A

HR

F&A

Countries act as regional “kingdoms”: Focus on local specialties, not on role out of global initiatives Country organizations comprise the whole business: No sufficient Sales focus

Does your company sufficiently capitalize on growing global markets? 2


Which path will lead you to success?


Future organization has to meet all requirements of global markets Overview on requirements and the building blocks of a “Vertical Business” Requirements for efficient global Sales

Building blocks of the “Vertical Business-Program”

Impact

To manage global business efficiently you need global steering power; although global Business Units do have this responsibility in theory, daily business is still driven by local country organizations

1 Verticalize

Achieve a true global Sales responsibility

Performance

To achieve leading edge performance in global Sales a strong focus is precondition. However, in local legal entities Sales is only one out of a variety of functions, often resulting in a lack of focus

2

Focus

Focus Business Units on operational business

Efficiency

To capitalize on your Sales performance you additionally need the best possible back-office support. Fragmented set-ups with a multitude of local legal entities typically are a barrier to this goal

3

Streamline

Realize synergies on regional/global level

Global competition with diverse regional growth clusters (e.g. Brasil, India, China) require a global sales organization 4


Vertical structures achieve the preconditions for growth


1

Verticalize: From horizontal to vertical Sales responsibility

Overview on changes in Sales responsibilities migrating into a vertical business From horizontal, country based Sales responsibility to…

…vertical, Business Unit based Sales responsibility

Headquarter Business Unit 1

Business Unit 2

Headquarter Business Unit…

Business Unit 1

Country 1 Business 1

Business 2

Business 2

Business…

Business 1

Business 2

Business…

Business 1

Business 2

Business…

Business 2

Business…

Country 3 Business…

Business 1

Country … Business 1

Business 2 Country 2

Country 3 Business 1

Business Unit…

Country 1

Country 2 Business 1

Business Unit 2

Business 2

Business…

Country … Business…

Business 1

Business 2

Business…

Global business requires consistent global responsibilities 6


To meet your target you need focus

7


2

Focus: Business Units focus on operational business, countries on support

Overview on role-changes in operational business and country organization From full business responsibility to…

…focussed responsibility with dedicated support

Headquarter

Headquarter

Business Unit 1

Business Unit 2

Business Unit …

Business Unit 1

Business Unit 2

Regional management

Country 1

Country 1

Sales

Marketing

Operations

Development

HR

F&A

IT

EHS

Sales BU 1

Sales BU 2

HR

Marketing BU 1 Operations BU 1 Development BU 1 …

Marketing BU 2 Operations BU 2 Development BU 2 …

F&A IT EHS …

Country 2

Country 2

Sales

Marketing

Operations

Development

HR

F&A

IT

EHS

Sales BU 1 Marketing BU 1 Operations BU 1 Development BU 1 …

Sales BU 2 Marketing BU 2 Operations BU 2 Development BU 2 …

HR F&A IT EHS …

Focus on operational business to boost Sales performance and to reach market leadership 8


Efficient set-up is basis for success

9


3

Streamline: Realize synergies on regional/global level

Overview on complexity reduction and efficiency increase by regional bundling From historically grown complexity to…

… efficient regional set-up

Headquarter

Headquarter

Regional management

Regional management

Country 1 Country 2 Country 3 Country 4 Country 5 Country ...

Europe

Americas

Asia

HR

HR

HR

HR

HR

HR

Country 1 Country 2 Country 3 Country 4 Country 5 Country ...

F&A

F&A

F&A

F&A

F&A

F&A

HR

IT

IT

IT

IT

IT

IT

F&A

EHS

EHS

EHS

EHS

EHS

EHS

IT

HR

HR IT

IT

High complexity in steering

Efficient steering of three or four regional units

No clear responsibility for sub-regional synergy realization

Realization of synergies by bundling in regional service center

Multitude of interfaces constrain business

Limited number of counterparts for operational business

Small service units produce unneeded cost

Countries focussed on truly local business

Bundling of support functions increases efficiency and is an important prerequisite to boost global Sales 10


Objective outside-in-view gives you an unbiased assessment


Development of an organizational blueprint within 4 weeks Approach Santiago Vertical Business Set-up

Vertical Business

Analysis

Blueprint

 Definition of scope and depth of analysis

 Interviews with top-management, business units and Sales

 Detailing of ideas, development of organizational options

 Clarification of stakeholder’s expectations

 Analysis of organizational setup, processes and infrastructure

 Estimation of improvement potential (top/bottom line)

 Clarification of data and employee availability

 Comparison with best practices, first improvement ideas

 Development of blueprint including recommendations

1 Verticalize Achieve a true global Sales responsibility

2

Focus

3 Streamline

Focus Business Units on operational business

Realize synergies on regional/global level

Kick-off Vertical Business

3 weeks

Interim Report

1 week

Final Report

Close involvement of stakeholders and top-management safeguards acceptance 12


Santiago: The Strategy and Structure Advisors

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Santiago: Competent partner in Sales Contact to Santiago Santiago supports midsize companies and multinational corporations with the development and implementation of tailor-made programs in Sales organization. Please do not hesitate to contact us for more information. We are interested in (please tick boxes):

A personal presentation A preparatory phone conversation A workshop with my team A customized project proposal ______________________ Contact Santiago:

Your data (please use Fax +49 2156 49669-19)

Santiago GmbH & Co. KG

Firma: ____________________________

Postfach 40 12 02

Name: ____________________________

D – 47866 Willich

StraĂ&#x;e: ____________________________

Fax +49 2156 49669-19

Ort:

www.santiago-advisors.com

Telefon: ____________________________ Mail:

Dr. Juan Rigall

Dr. Georg Wolters

Managing Director

Managing Director

juan.rigall@santiago-advisors.com

georg.wolters@santiago-advisors.com

Mobile +49 151 2033 53 21

Mobile +49 151 2033 53 26

____________________________ ____________________________

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Vertical Business  

VERTICAL BUSINESS HOW TO BOOST SALES GLOBALLY

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