IMCD Group: APAC Region, M&A Strategy & Management Changes
Former Vice President at IMCD Group
inpractise.com/articles/imcd-apac-region-manda-strategy-and-management-changes
Former Vice President at IMCD Group
The executive has over 25 years experience in the Specialty Chemicals industry. The executive held multiple Managing Director and Vice President roles in the APAC region.
Interview Transcript
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But does the gross margin target come from HQ, like "our target this year is a 25% gross margin" and then the sales team has some flexibility around that? Or does it come from the bottom up, and then the gross margin turns out to be what it is?
The way this works varies between companies and suppliers. Some have a chain of command that goes all the way up to headquarters, while others operate on a more regional basis, or even within a single country. These factors determine whether the 25% margin is achievable. Generally, this is an average target, and incentives are set up accordingly.
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How about salespeople working in less specialized or more commoditized verticals, like coatings, as compared to those in pharmaceuticals or life sciences? Are they incentivized based on the gross margin they should be achieving relative to the rest of the group?
Generally, there are certain boundaries. For example, a salesperson might need to achieve a 20% margin, but they could request permission to aim for 5%. There are checks and balances in place. It's not as if they can do whatever they want. IMCD has always prioritized margin over volume, and there are measures in place to ensure people stay within the agreed margin range.
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Could you tell me more about the sales teams you worked with in ANZ and later in Southeast Asia? How would you compare them to the competition? Do they have a longer or shorter tenure? Are they more or less aggressive? How would you describe them in comparison to your competitors?
IMCD had a successful model for many years, but then competitors started doing similar things. Connell Caldic was particularly aggressive. The number of unique strategies and targets has decreased.
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