The Future at Covidien

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Anonymous

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By now everyone knows what happened over at EES. Saw this on their board and it sounds damn familiar...just substitute "J&J" with "Covidien"

"If I were to take a look at the overall changes from a high level, I would say this is J&J's way of showing that "the business" is being taken in a certain direction -- the direction of product management, vs. innovation.

This is the way of 3M, P&G, etc... innovation will come the way of acquisition, and growth by way of favorable contract position. Paying a front-line sales org large dollars to "grow" the business is no longer viable for Ethicon/J&J.

So as we have all seen, top-side management has grown exponentially (visible via the many many congratulatory emails sent out daily to the newest, latest, greatest person to be promoted into a jargon-filled title role). Salaries have increased, more positions are in-house than ever before, and entire new departments and divisions have been started around the idea of providing customers "more" beyond a front-line sales org.

I can't say if this is good or bad, but if a high-growth, high-paying medical device sales job is someone's desire, then J&J is no longer that place."
 






Covidien, like J&J, hasn't seen much innovation in years. Having worked for what was then U.S. Surgical and morphed into Covidien, we carried the same products in our bag then as you do now. Sure, there have been a few upgrades but essentially the technology is the same. There are only so many variations of V2 trocars, GIA's, TA's and EndoGIA's that you can develop.
With price and contract positioning being the main drivers of business for both entities, it seems that the need for a large sales force is over. There is probably a need for some "technical/support" reps but they can be scaled back depending upon the market share a contract provides or the business can be transferred over to distributors. Who needs case coverage when everyone knows how to use products that have been around for over 30 years?
 






Well said. If all IDN and GPO follow the "Kaiser, Obama model" there won't be any need for outside reps. The days of calling on Doctors in their offices and having your product used without MM approval is over. No wonder our inside sales group is the only division growing. Why pay someone 6 figures and a car for a job that can be done over the phone? Healthcare is becoming a one size fits all industry.
 
























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