Medical Products & Devices

Industry Situation

Latin America is a high growth region for the medical devices industry. Given this opportunity, many companies have increased focus on optimizing their regional sales force.

Client Situation

The Latin American arm of a major medical devices company experienced double digit growth in previous years. In order to support further growth and manage the region more efficiently, our client aimed to bring consistency to their local operations. Prior to the engagement, regional operations were decentralized across Latin America with a single headquarters in the United States. 

Key Issues

Each country in Latin America had a unique sales compensation plan; many of which had not been revised for several years. This resulted in a misalignment with current strategy, overpayments to the field and conflicting compensation metrics.

The client asked AGI to design a sales compensation program for Latin America with the following characteristics:

	Reward year-over-year growth expectation achievement.
	Provide consistent compensation plan framework across business units and countries while allowing for local adjustments.
	Align the compensation plan with the current business strategy of maximizing the promotion of high priority products.

AGI Solutions

AGI used its proprietary approach to sales compensation projects to understand the client’s strategic objectives. These included overall growth expectations, key products and go-to-market strategy. 

After synthesizing these elements, AGI developed and modeled compensation plan alternatives. Our team worked with the client to select the plan that best aligned with their needs and implementation abilities.

Outcomes

AGI implemented sales compensation plans based on a single framework containing three different metrics with varying weights and payouts. Products could be placed on different metrics depending on their importance. Additionally, we migrated the performance period from monthly to quarterly to better align with the sales cycle and provide a long-term view to sellers.

Our consulting team also identified overpayments in one single country caused by outdated plans, totaling $1.5MM.