Boehringer Ingelheim Vetmedica Chooses Managed Services Approach for Sales Budgeting and Sales Compensation Management
Boehringer Ingelheim Corporation is a top-20 global pharmaceutical company. Its U.S. animal health division, Boehringer Ingelheim Vetmedica, conducts product research and development (R&D) and sales in equine, bovine, swine, and companion-animal markets.
Prior to engaging with Optymyze, Vetmedica was struggling with an inefficient annual sales budgeting process that required computing year-end payroll, a protracted procedure which took weeks to complete. In fact, it was taking so long that the company’s national sales meeting would actually transpire before salespeople learned their quotas for the new year, resulting in lost opportunities to build enthusiasm within the sales force.
The details of the process revealed a lack of automation in key aspects of sales operations:
- Sales summaries were created in a spreadsheet
- Data was compiled manually each week to generate reports
- Each species group (equine, bovine, swine, and companion animals) followed a separate workstream even though salespeople’s responsibilities were not limited to a single group
In a company of such large size, the need to address these pain points and update sales operations as a whole can rapidly become too great to ignore.
Vetmedica’s executive sales team engaged Optymyze in a consultative collaboration with two goals: aligning incentive compensation plans to the company’s strategy; and then ensuring that the sales force understood both that strategy and their role within it.
Once the new incentive compensation plans had been rolled out, Optymyze shifted to assessing organizational capabilities — systems, processes, and people — to manage them on an ongoing basis. Optymyze experts identified opportunities for improving the company’s capabilities and developed an enablement strategy to implement those improvements.
As the new system implementation moved forward, Boehringer Ingelheim Vetmedica sales executives recognized that they did not have the right internal resources to learn the system or take on the responsibility of managing the process. The company decided to leverage Optymyze’s managed services for sales operations, analytics, and change management.
The benefits of Optymyze made themselves known rapidly, as the timeline for year-end payroll was trimmed from weeks to mere days. Additionally, a redesigned sales budgeting process meant that the sales plan could now be released in January (in time for the aforementioned national sales meeting) rather than April.
Optymyze also designed and implemented a variety of new workflow processes to increase sales force productivity and improve sales force morale. The creation of consistent workstreams to align all four species groups has ended the old compensation issues that reps would experience when selling products from multiple groups. And now that salespeople can see their sales expectations and earnings potential in real time with much-increased accuracy through easily accessible dashboards, their morale has improved dramatically.
A new field inquiries application helps keep that morale high by ensuring that questions submitted from the field are tracked properly and answered efficiently by analysts – and sales force training has been refocused accordingly to address many of those questions in advance.
Meanwhile, all stakeholders – from finance and sales leadership all the way up to the CEO – can review and approve payroll for each species group through a new payroll approval workflow.
Now, sales managers have all the information they need to provide better coaching to their reps, while executives enjoy analytics that help them evaluate compensation plan effectiveness, improve sales performance, and measure each plan’s ROI and profitability.
Since engaging with Optymyze, Boehringer Ingelheim Vetmedica has continued its M&A growth and become the second-largest company in the global health market, and the two companies are still working hand in hand to continue streamlining sales operations for the long haul.