Amit's Book Update #2

In last week's newsletter, I shared with readers the 'concept framework' that created the need for my forthcoming book. I proposed that the single biggest challenge facing seniors looking to expand international export sales and scale their international business was to address the question:

"How do we deliver a critical mass in five years of investment against the business case we agreed with the Board?"

Presenting the investment case was easy. Delivering it was not.

So many executives fail to deliver their numbers. This can lead to career derailment and exit, or a cul-de-sac role within the company tucked away out-of-sight and out-of-mind in the broom cupboard under the stairs.

I outlined these observations and realities in last week's newsletter.

In this week's newsletter, I update readers on how I defined the content for the book. I sketched out the content by defining what I wanted readers to understand about the challenges in emerging markets, as well as how to succeed and stand out from the many executives who could not succeed.

This book answers the question:

"What does it take to deliver critical mass?"

Firstly, my book is based on personal experience as a P&L holder for 18 international markets across Sub-Saharan Africa for AstraZeneca for seven years in a career spanning more than 20 years at AstraZeneca followed by fifteen years of experience consulting with global top 20 pharma companies on their African business issues. The lessons and experiences I share apply to any emerging market where the go-to-market model involves designing commercial models and working with and through distributor partners.

The book will appeal to any executive responsible for international business within and beyond Africa where the business trades through distributors and logistics companies to create invoiced export sales.

For more than 20 years, I have seen many different models for commercialisation. Each helped me to understand why some models work and others don't.

I blended these observations into my AstraZeneca experience when I worked in the International Manufacturing Operations within the supply chain and logistics teams across different therapeutic portfolios that involved cold-chain products and temperature-controlled injectables. I had a strong understanding of supply chains and distribution models as well as commercial experience - a powerful combination.

Secondly, I saw that many companies were struggling to deliver their numbers across different distributor models.

Fearing they had the wrong person in the role, many companies changed seniors accountable for emerging markets, which they often described as distributor or partnership markets. Only to find the same failed deliveries with each successive newly installed leader. Six changes (or more) in key senior staff in ten years were common. They still are!

Clearly, something much deeper than a misfit leader was at play preventing them from delivering their numbers. Certainly, many companies fail to recruit the talent needed to succeed. I have seen many (arrogant) misfits come and go where Sub-Saharan Africa is concerned. I knew these seniors would not be around beyond two years or so. My prediction rates were remarkably accurate!

The high staff churn was a testament to a bigger, more powerful set of forces hindering their progress.

I decided that my book should focus on these forces that prevented many from delivering their numbers. I also acknowledge that many had the wrong talent in such a pivotal and crucial role and I cover this important area also in my book - a chapter with subsections dedicated to how to find the right talent.

I researched the market to find that no book addressed these factors:

1. How do we pick the right talent to succeed in these international markets?
2. Help readers understand clearly with rational explanations why some models can work and others can't.

I had to consider how I leveraged my experience in emerging markets to turn these observations into a meaningful, insightful, answer-laden, high-value book for readers.

The challenge was set as I defined the learnings people would take away after reading my book.

Read on for the second newsletter........

Learning Objectives From My Book:

What would readers learn from reading my book? Defining these learning objectives is an important precursor to building a chapter-by-chapter framework.

My learning objectives in the book were defined. Readers will:

1. Understand why they should read my book and rely on my experience. After all, I am no Jim Collins or J K Rowling who are famous authors. I am unknown. I needed to show readers my credentials and why they could and should rely on my experience.
2. Understand why companies are focused on emerging markets and the need to be selective in their investment choices. I witnessed many companies fail to appreciate both a quantitative and qualitative approach to the analysis and selection of investment markets. This was a crucial mistake. I needed to help readers understand how to be more thorough and cautious with the analysis of opportunities from both quantitative and qualitative aspects.
3. Understand the full range of go-to-market models. Many companies interchange the noun 'distributor' with the verb 'distribution'. All distributors carry out the distribution of products. However, all companies that provide distribution are NOT distributors. I define both these terms accurately and precisely so that readers understand these two terms intimately. Failure of company seniors to understand the difference between choosing distributors and distribution service providers has been a big factor in their downfall and their failure to deliver results. I explore this and explain why in detail in my book.
4. Understand that distributor models range from simple to complex and only a few can scale and deliver critical mass. To add to this complexity, there are options for going in as a legal affiliate, as well as considering local manufacturing. I explain all these models that can scale among this complex matrix of combinations and those that can't; their risks and costs; and I explain why many go-to-market models and company seniors cannot deliver a critical mass.
5. Understand how to find, choose and select the best-fit distributors. I explain my thoughts on preferred go-to-market models; when a legal affiliate should be a go-to-market model of choice; the argument for large versus small distributors and my views on appointing regional or pan-geographical distributors. The wrong or sub-optimal choice of distributor had been a major reason for the failure to deliver critical mass. Many clients get this badly wrong because they fail to understand how to recruit a distributor partner and many lack a structured approach to finding and choosing the best-fit partner. Many do not negotiate a commercial agreement. Instead, they instruct their legal team to issue a legal agreement to a partner. This is wholly wrong and I explain why.
6. Understanding how to find good international business managers is a key chapter, aimed at line managers but importantly to HR and Talent Partners who had demonstrated a poor track record by repeatedly recruiting misfits that led to a high staff churn. Too many companies have the wrong persons in this business-critical role. I share my process of how I went about recruiting the best-fit international business managers and what I see as a good-fit candidate for these roles.

These 'learning objectives' enabled me to define each of the chapters and sub-sections in each chapter to give readers a structured appreciation of what is involved if senior executives want to deliver the critical mass presented in their investment case.

But wait! There is more, MUCH MORE in my book beyond these chapters.

For example:

• Why some 'distributors' are not distributors but are very expensive intermediary distribution service providers and explain why these differences have a huge impact on your ability to deliver the numbers.
• The THREE key steps that MUST be carried out and signed off by seniors BEFORE submission of regulatory dossiers. You will be surprised to hear some companies do not carry out these three steps before submission of dossiers.
• I define ten situations that trigger an immediate review of the relationship with your distributor. How many can you think of?
• Do multiple distributors create more sales for my products? I explode this myth and explain why.
• Is a pan-African regional distributor across several countries a good choice? Why? Why not?
• We are a Big Pharma. Is a big distributor partner the best fit for us? The answer is, "not necessarily" and I explain why.
• I share how I know a client or company does not know what it is doing in distributor markets when it shows two or more features from a checklist I share with readers.
• I share my reasons why for so many companies, making South Africa the hub for Sub-Saharan Exports has been a disappointment that failed to deliver critical mass and I explain why, in my view, South Africa is NOT the export gateway to Africa. There may be similar parallels in other regions such as SE Asia or LATAM.
• I explain how I answered the question asked by one Senior Executive Committee and GM in South Africa: "You mention distributors across these SSA markets, here we have Wholesalers, do you mean Wholesalers?" I replied, "NO, I mean distributors". They asked "So what is the difference between a wholesaler and a distributor?" I share my answer and explanation to readers in my book (in case you also do not know the difference between a wholesaler and a distributor - understandable, not everyone does).
• Who is your agent in Kenya? I don't have an agent in Kenya, I'd reply. I have a distributor. What's the difference? I did not have any agents anywhere. I explain why. An agency agreement is ONE of the go-to-market options.

Stay tuned, and be sure to follow and subscribe to this newsletter to stay updated on my book as we approach its forthcoming launch.