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Coloplast’s US Advisory Board British Chamber of Commerce, 9 December 2009 2 December 2009 Coloplast’s US Advisory Board Page 1 Coloplast is a leading medtech company specialising in intimate healthcare needs... 50 years of innovation and growth: Global no. 1 in Ostomy Care Global no. 1 in Urology & Continence Care Global no. 4 in Advanced Wound & Skin Care Headquartered in Denmark Production in Denmark, Hungary, China, US and France Sales (DKK mill) ~7,100 employees globally 8,820 CAGR +23% 1957 2 December 2009 Coloplast’s US Advisory Board Page 2 1970 1980 3,600 1990 2009 ...with DKK 8.8bn in annual sales... Full year sales 2008/09 RoW 0.7 The Americas Europe 1.4 6.7 Wound & Skin Care 1.5 Ostomy Care 3.6 Uroligy & Continence Care 3.7 2 December 2009 Coloplast’s US Advisory Board Page 3 We span the world • Present in 53 countries • Manufacturing facilities in China, Denmark, France, Hungary and the U.S. 2 December 2009 Coloplast’s US Advisory Board Page 4 Coloplast has been in the US for many years • DKK 1bn+ in turnover • 700 employees • Doubled our size through the Mentor acquisition in 2006 • Established new US head office in Minneapolis in 2009. 2 December 2009 Coloplast’s US Advisory Board Page 5 Coloplast’s US Advisory Board setup • Advice on company performance • • • • Strategies and plans Organisational setup Go to market approach Cultural issues • Advice on market conditions and political issues (lobbyism, reimbursement legislation) • Consists of two external members • Meets 4-6 times a year • Supports our US country manager and advices top management on US business issues 2 December 2009 Coloplast’s US Advisory Board Page 6 Who would be the right members? Our requirements: • US business understanding - goes without saying!! • Proven long business track record • Medical industry experience - a must!! • Functional experience within sales and marketing • Political network and experience with lobbyism 2 December 2009 Coloplast’s US Advisory Board Page 7 We chose two very experienced medical industry people Tom McCausland Michael Berman • Retired CEO at Siemens Medical Solutions • Joined Siemens in 1986 • Grew Siemens sales from 2 to 5 billion USD over 10 years. • Venture partner with Israel Seed Partners • Co-founder of Velocimed (sold to St. Jude in 2005) • President of the Cardiology Business of Boston Scientific from 1995 to 2000. 2 December 2009 Coloplast’s US Advisory Board Page 8 Advisory boards vs. real boards • Informal • Easy accessible • Not regulated by law • Advice rather than direction • Knows local business and local culture • Can be involved when you have a challenge but not a solution 2 December 2009 Coloplast’s US Advisory Board Page 9 How to optimize the value of advisory boards? • Spend significant time on educating the members on company specific issues • Be very selective on what topics to ask advice on • Ensure that informal dialogue is quickly established between the country manager and the advisory board members outside formal meetings • Be prepared to pay a high fee - the advice you get easily offset the cost • If the members are good: Use their advice on a global scale • Let them challenge you! 2 December 2009 Coloplast’s US Advisory Board Page 10 Our key learnings • Advisory boards works well - especially when the country manager is Danish • Knowledge about local culture is important, but knowledge about local business is more important • If you invest sufficient time and money, you will get a lot of value in return 2 December 2009 Coloplast’s US Advisory Board Page 11 Questions ? ? ??? ? ? ? ?? ? ? ? ? ? ? ? ? ? ?? ? ? 2 December 2009 Coloplast’s US Advisory Board Page 12 2 December 2009 Coloplast’s US Advisory Board Page 13