Friday Editorial

On Thursday, June 14th, TSB posted a blog regarding the sudden execution of 25 reps by Care Fusion. Our deepest condolences to those whose job hath taken.  In response to this post and a comment that MSM had, one of our commentators disagreed with our opinion that upper management can be blamed for failure by the ground troops, i.e., the sales people.  TSB agrees with our commentator that no one has a crystal ball, yet, isn't any company's success contingent on those in charge making prudent decisions in product development, in marketing, in continuing education, in customer service, in providing the sales team with the necessary tools to either build the house, or get the job done?  Aren't these people responsible for developing the strategy and tactics needed to effectively execute the plan, and can those individuals effectively convey the plan?  To quote an industry source, if you were in the military and they dropped you in a hot zone and you are engaged in a fire fight with a six shooter, and the enemy had rocket propelled grenades, how long do you believe you would last? Companies that have the ability to sustain or grow market share are companies that understand that practices and behaviors that once worked are constantly evolving.  The market is dynamic regardless whether it is affected by society, your customers, the clinical trends, let alone technological innovation.  If there is no inherent value in your product, why should someone use it?  Do you sell on price?  Do you sell on relationships? Do you sell on features and benefits?  How is your product better?  There is a reason why someone wants to buy your product. Why aren't your products used, and what are those reasons? Diagnosis and analysis is important considering that a degenerative disease will not be cured by procrastination.

Recently TSB spoke to a sales manager at an interbody company.  The company had lost a half a million dollars in revenue from '10 thru '11, there were inventory issues, product design issues, intra-operative implant breakage, no educational platform, no marketing collaterals,  poor instrumentation and a cash flow problem.  The question TSB must ask our commentator is whether or not these problems are symptoms and manifestations of an underlying problem, i.e., could the people in charge, the CEO. the CFO, the VP of R&D, the VP of Sales, be incapable of providing the distributors and its sales managers the necessary tools to grow the business? Executive management teams may not be able to control what the competition does, but it can effectively manage what is in their control.  Our commentator is correct in that we are all responsible for our own performance, and that also includes the people that run a business, they affect everyone's performance by their strengths and weaknesses.  The smartest guys in the room, may not necessarily be the smartest guys in the room. The reason that the spine industry has such a high attrition rate is that upper management still expects 20-30% growth. How can you understand how to build something if you've never built it?  We have become a myopic society, thanks to our shareholders and the Street. The market no longer has five to seven competitors, it has one hundred to one hundred and fifty companies vying for revenue in  a zero-sum market. But then again, do any of these people have the ability to adapt?

Most managers that TSB has spoken with marvel at how people in charge create fiscal objectives that are not only unattainable, they are delusional.  100% growth, no new product extensions, lack of inventory, lack of capital, how does any salesperson execute under those conditions? Sustaining marketshare in today's volatile environment may have more value than you think.  At least a company like Medtronic, Zimmer, Biomet, DePuy, Nuvasive or Globus can throw enough of money around to effect growth, even nominal growth, but small companies do not have that ability of course unless you are a POC, POD, or PIC, let alone a company that is a one-trick pony.  So, TSB doesn't have to be reminded about competition, unfortunately, sports metaphors are nice, but even sports teams don't rely on talent alone, if they cannot execute, they become spectators rather than competitors.

To All our Readers, Happy Fathers Day, go out and play some golf, drink some beer, throw a barbecue, hug your dog and kick the kids, and hopefully you'll get lucky this weekend.  We are outta here!!!!!!!!!!!!!!!!

MSM