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Customer Relationship Management (CRM)

Customer Relationship Management (CRM). “ If you leave client retention to chance, chances are you ’ re going to loose them ” John Gamble. Customer Relationship Mapping (CReM). Basle, 2nd October 2006. Customer Power - Externalisation vs Internalisation.

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Customer Relationship Management (CRM)

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  1. Customer Relationship Management (CRM) “If you leaveclient retention to chance, chances are you’re going to loose them”John Gamble Customer Relationship Mapping (CReM) Basle, 2nd October 2006

  2. Customer Power -Externalisation vs Internalisation Seniors Managers spend about sixty percent of their timeon internal matters, and most of this goes on reacting to past events, usually things that have gone wrong ( “putting out bushfires” ). Of the forty percent spent on external matters, very little is spent dealing with customers or their needs. In fact, less than 5 percent of time, on average, is allocated to meeting customers. Most Management time goes on dealing with internal matters ensuring that short term financial and other targets are met.

  3. Customer Focus Drives Performance The best performing corporations are those with strong cultures that fit well with their customers - Robert Waterman, 1994 It is customer delight that drives customer retention Customer delight, ultimately drives high relative profitability and cash flows The market will over time, align towards “The Customer Centred Firm “

  4. Customers Buy More High Price-Earnings Ratio High Customer Retention Attract & Retain the Best Employees Ability to Invest in Better Products & Services Low Marketing Costs High Relative Market Share Higher Profits and Cash than Competitors Good Public Image The Customer Centered Virtuous Circle Delighted Customers

  5. Losing Customers is Expensive Loyal customers are usually the most profitable, since they are value conscious rather than price conscious. Customer retention derives from customer loyalty, but is mostly achieved when superior value is being delivered. The market will align, over time, towards ‘The Customer Centred Firm’

  6. Customer Satisfaction – The People Challenge • Top executives should spend the majority of their time serving customers, both directly and indirectly. • Good employees, enjoying a high level of employee satisfaction, reinforce the value proposition by focusing on high quality service to customers. • Employees should be trained and encouraged to find unexpected ways of serving the customer, even if this involves extra cost (Marriott Hotels) • The reorientation of people in the organisation should be solely directed towards CUSTOMER RETENTION • A new type of organisation is needed to take Customer Power seriously. This will result in high customer satisfaction, customer loyalty and repeat business which enhances profitability and growth.

  7. Customer Relationship Management (CRM) Customer Relationship Mapping (CReM) A Novartis Case Study on Implementing CReM Basle, 2nd October 2006

  8. Relationship Diagram Function C- Level 1 CEO John Barth CEO Daniel Vasella I. Campbell/ D. Myers Pharmaceuticals Thomas Ebeling C- Level 2 VP Global WPS Guy Holden Pharmaceuticals Thomas Ebeling Global Executive WPS VP WPS Europe Rick Bertasi Head Pharma Affairs Martin Batzer European Executive Sponsor VP Life Science CBG Rajan Sara Basel Site Operations Chis Eugster Relationship Management Strategic Direction Account Director Uwe Wäbs Service Management Basel Peter Marbet Operational Delivery Management Financial Management Finance Director LS Axel Hetiz . . Local Delivery Contractual Alignment Standards & Consistency OPS Director Novartis Rico Domenig . . See JCI Diagrams See Novartis Diagrams Contract Management Site Service Delivery

  9. Framework C-Level Annual Pier JC Exec attends Value Theme Strategic Semi-Annual Mngt Mtg Mngt Mtg Mngt Mtg Mngt Mtg Site Mtg Site Mtg Site Mtg Site Mtg Management Quarterly Operations Monthly CB CB CB CB CB CB CB CB CB CB CB CB CB = Customer Board Meeting

  10. Strategic Meeting • Purpose: Discuss longer term developments, IQP and contract renegotiation issues • Scope: All Basel sites, only Novartis Pharma • Frequency: Semi-Annually M. Batzer C. Eugster M. Marbet C. Klee M. Plüss R. Bertasi R. Sara U. Wäbs Strategic Meeting • Purpose: Management issues and short term strategic issues • Scope: All Basel Sites • Frequency: Quarterly C. Eugster M. Marbet C. Klee M. Plüss R. Sara U. Wäbs R. Domenig A. Heitz Customer Board Meeting • Purpose: Discuss and review operational performance at the site level • Scope: All Basel Sites WKL, WSJ,WRO,WSH • Frequency: Monthly P. Marbet M. Hohermuth R. Rebmann D. Gramberg J. Benner U. Wäbs A. Heitz E.Schellenberg Established Meetings & Forums Site Meeting Weko Basel and WSH • Purpose: Discuss overall operational activities Novartis, Syngenta, Ciba & Huntsman • Scope: All Basel sites • Frequency: Quarterly C. Eugster M. Marbet B. Wyssen P. Larpin D. Astholz U. Wäbs R. Domenig T. Terhorst

  11. Schedule of Meetings JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC C-Level Strategic Management Operations Q1 Q2 Q3 Q4

  12. Customer Relationship Management

  13. Customer Relationship Management

  14. Life Sciences - Customer Business Group, EMEA Vice President - EMEA Life Sciences - CBG Rajan Sara Personal Assistant Stefanie Bakewell EH&S TBA Finance EMEA Axel Heitz * Account Director EMEA Uwe Wäbs * Account Director EMEA Annie Corrway Business Development EMEA Paul Morgan Swiss Operations Rico Domenig * CH Accounts GMP / FDA Services Cliff Easter Continuous Improvement Cathrine Pauli * Support Functions Building & Automation Services Jochen Scraback OMS Novartis: TBA Syngenta: Dr. Ganz Validation Services Jochen Scraback Special Projects Roland Giger HR Eduard Schellenberg * Jaqui Stephen 0.4 FTE Equipment TechnologyServices Ekkehard Nann Six Sigma Werner Zemp TBA Account Finance Joerg Breuer Rod Dagg 0.5 FTE Protection Services TBA Quality Andre Argast TBA Supply Chain a.i. Marinanne Fleuret UK TBA Telecom Services Andre Engel Customer Satisfaction Cathrine Pauli IT& Technology Klaus P. Sehling UK TBA Facility Services Dominique Senn Training & Development CH TBA UK TBA Laboratory Services Marcel Hügi * CH Management Committee

  15. The Challenge of “Externalisation versus Internalisation” December 2005

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