Annual Report - Merrill Lynch & Co., Inc. - Investor Relations

Our Strategic Plan: We came together
as one team in 2010 to re-energize and reinvigorate
Boston Scientific. Here’s what we accomplished.
80 % of top jobs redefined
We have identified potential
cost-reduction opportunities
of $ 650- $ 750 million
repare Our People
We communicated our POWER strategy to employees through
a series of internal meetings. The largest, in Minnesota, brought
together nearly 5,000 employees to discuss POWER and the goals
of our newly formed Cardiology, Rhythm and Vascular Group (left).
We restructured 80 percent of the 50 top jobs so our senior
leaders can be more effective in driving our strategic execution.
We established our Leadership Academy to groom future
leaders with high performance potential for roles of rapidly
increasing responsibility.
We redesigned elements of our compensation program
to more closely align with shareholder interests.
We began focusing on ethnic and gender diversity because
we believe it will give us a competitive advantage.
ptimize the Company
We identified potential cost-reduction opportunities of
$650 to $750 million. We believe these opportunities will
help us increase earnings in the near term.
We initiated Project Transformation, which will overhaul
our R&D processes, with a goal of yielding $200 million in
savings and efficiencies. We plan to redeploy these savings
and efficiencies toward new R&D opportunities, acquisitions,
debt reduction and other purposes.
We are improving manufacturing efficiency and consistency
through increased automation and redesigned workflow in
operations such as our stent and catheter production lines
in Maple Grove, Minnesota (left).
We continued to consolidate our plants from 23 to 14 today,
with a goal of 12.
We began a $40 million effort to create flexible, scalable,
automated distribution centers.
We restructured our clinical organization to increase communication
and coordination with our divisions. By doing so,
we improved the organization’s efficiency and effectiveness.
Investing
$ 30- $ 40
million in
China, India
and Brazil
in Global Market Share
We are investing $30 to $40 million through 2011
to increase our presence in emerging markets —
particularly China, India and Brazil.
We are expanding the number of Boston Scientific
products registered in developing markets.
We are significantly growing our sales forces in key
emerging markets in 2011, and we’re broadening
our coverage into more hospitals and cities in
major emerging countries.
We launched the PROMUS Element and the
TAXUS Element Stent Systems in India.
xpand Our Global Sales
and Marketing Focus
We strengthened CRV’s CrossCare program, which aligns our
cardiovascular service line product offerings more closely with the
evolving needs of health care institutions in the current economic
environment. These CrossCare customers yielded stronger
revenue performance than our other accounts in 2010.
We applied best practices from our sales leadership
teams across the globe.
We greatly improved our capabilities in sales
analysis, pricing and negotiation skills.
We placed 2,000 iPad ®1 devices in the hands
of our sales force with applications that include
product demonstrations and tools to make
our sales representatives more productive
and responsive to customers.
2,000 iPad devices in
the hands of our sales force
ealign Our Business Portfolio
We created a Cardiology, Rhythm and Vascular Group, which
gives us a strategic advantage in serving this important market.
We jump-started our Priority Growth Initiatives, which bring
focus to areas that we believe will contribute to annual overall
sales growth. Our goal is to grow sales at an annual rate
of 6 to 8 percent by the end of the next four years.
We acquired several technologies that
will help advance our Priority Growth
Initiatives. Among them are
Atritech’s WATCHMAN ®2
Device (right), which may offer
an alternative to anticoagulant
drugs for certain atrial
fibrillation patients who
are at high risk for stroke.
We sold the Neurovascular
business to advance our
strategy of realigning
our portfolio.
Our goal:
6-8 % annual sales growth
by the end of the next 4 years
1 iPad is a trademark of Apple Inc.
2 In the U.S., the WATCHMAN ® Device is
an investigational device and is limited
by applicable law to investigational use
only and is not available for sale.
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