Background and Challenge

A medical, dental and veterinary supplies distributor engaged L.E.K. Consulting to help grow its medical group quickly. Specifically, the project examined several trends in the office-based healthcare market including physician practice consolidation as well as the growth of specialties and retail health clinics.

Approach and Recommendations

Our team analyzed the market landscape and found where the company retained strength, and where it was being negatively impacted. Additional research revealed that the company had a low percentage of large accounts, low equipment sales and weak presence among the GPOs. We diagnosed causes of underperformance in medium and larger practices that related to the company’s sales structure, regional distribution and performance incentives.

We used these findings to work closely with the business development VP to help the company develop strategies to address new market realities. The team’s recommendations included doubling the number of shared accounts, improving the productivity of the sales force, and initiatives to accelerate equipment sales. The recommended path forward included difficult organizational changes such as sales force realignment and a shift in product focus.

Results

The senior management team quickly realized that internal improvements in sales force, customer penetration, and product focus would have a greater and more actionable impact on their overall business.

Our fact-based analysis provided corporate management with the reliable insights required to implement the proposed organizational changes. The new sales operations are paying significant dividends. In fact, senior management has recently increased its business targets and is making strong competitive gains.

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