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Michael Vad
Managing Partner
mvad@spencerstuart.com
Microsoft Sales Leadership Conference, Sølyst, February 5, 2015
CSO rollen – hvor er den på vej hen?
Topics for Discussion
> Introduction to Spencer Stuart
> The Rise of the Transformational Sales Leader
> Sales Officer Assessment and Cultural Fit
Spencer Stuart
Who we are
> Founded in 1956 and still privately
held, Spencer Stuart helped
establish the senior-level
executive recruiting industry
> More than 300 consultants with a
unique blend of professional
search experience and
specialized industry and functional
expertise
> Experienced and highly
knowledgeable associates,
researchers and executive
assistants round out client service
teams and contribute to our
knowledge of relevant candidate
pools
Where we are
> In 55 offices in 30 countries
around the world
> With select clients, from major
multinationals to emerging
companies and nonprofit
organizations, helping to address
their senior executive leadership
requirements
> In the boardrooms of companies
around the world, from the largest
multinationals to private equity-
backed businesses
What we do
> Partner with companies to find CEOs,
presidents/COOs and their senior
management teams, conducting more
than 4,000 assignments each year
> In addition to executive search, we:
• Recruit exceptional directors and
provide counsel on governance
issues
• Assist boards in CEO succession
planning
• Conduct management
assessments of senior executives
• Advise on board evaluations and
effectiveness
3
Chief Sales Officer Practice at Spencer Stuart
With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search
an in-depth understanding of talent needs and marketplace realities.
Sales Operations
Major Account Sales
Vice President Sales
Channel Management
Managing Director
Chief Revenue Officer
Vice President Sales & Marketing
Business Development
Government Sales
CANDIDATE POOL EXPERTISE
SALES FUNCTIONS
> We are a global, dedicated team of 25
consultants, many with a sales
background.
> We have conducted more than 1,000 sales
searches over the past three years for
clients that range from large multinational
companies to private equity firms and their
portfolio companies to emerging companies
and nonprofit organizations.
> For each assignment, we assemble a
“best team” combining industry knowledge
with functional and geographic expertise.
We also conduct ongoing calls to review
market intelligence and candidate pool
development.
5
Sales Officer Tenure
6
The Changing Role of the Sales Executive
“We need a head of sales who can deliver
more than revenue. We need him to change
the way we go to market, broaden our
relationships with our customers and identify
new opportunities for our products.”
Hiring CEO
What’s Driving the Change?
1. The customer buying process has evolved
• Today´s customers are more empowered and better informed
• They have progressed well down the purchasing process (options, references,
pricing) before we meet them
• This leads to more detailed and specific requirements
• The traditional company-customer relationship has been redefined
1. The Customer Buying Process has Evolved
“People buy from people they like and trust, and
that used to be 90 percent of the game, but today
it’s 10 percent. It might get you a seat at the table,
but if you can’t quickly identify how you can work
with the customer and how you can help solve
their problems, save them money or drive
revenue, it’s going to be a short conversation.”
Bill Scannell, president of global sales and customer
operations at EMC Corporation
What’s Driving the Change?
1. The customer buying process has evolved
2. Data Analytics is being applied to the sales function
• Big data has significant impact on sales force management
• Integrated customer information and predictive analytics deliver “smarter” sales
approach
• Allowing for more effective segmentation, identification and retention of high-
value customers
• Enabling digitized, data-driven management of sales force performance
• CSO ensuring that the entire organization embraces the impact that data makes
on sales and the company
2. Data analytics
“Data analytics skills are a big, big deal right
now,” said Vivek Sankaran, senior vice
president and chief customer officer of Frito-
Lay North America. “It’s not just about
cranking out a spreadsheet. It’s about figuring
out how to get to the root causes and how to
stay ahead of your customers’ needs.”
“Data analytics skills are a big, big deal
right now. It’s not just about cranking out
a spreadsheet. It’s about figuring out
how to get to the root causes and how to
stay ahead of your customers’ needs.”
Vivek Sankaran, senior vice president and chief
customer officer of Frito-Lay North America
What’s Driving the Change?
1. The customer buying process has evolved
2. Data Analytics is being applied to the sales function
3. Markets are more competitive
• Finding new and retaining existing customers has never been more challenging
• With the CSO manning the wheel companies must drive new go-to-market path
• Success = 3-5 year view; striking the balance between progress and ability to
adapt
3. Markets are More Competitive
“The market has become
hypercompetitive. You need to be
looking out three to five years at how
you go-to-market; and working toward
that strategy to optimize across your
channels and build the right capabilities
in your field.”
Rob Salmon, President Go-to-Market for
NetApp.
Sales Officer Leadership Continues to Be Stretched…
Identifying a Transformational Sales Leader
> Broad skill-sets in people, processes, structure, culture and strategies
> Cross-functional influence to inspire more than just the sales organization
> Critical thinking skills
> Success driving development of new go-to-market strategies not only to
lead sales, but guide transformational change as well
> Ability to infuse new talent and create a pipeline of capability for future
leadership success
Chief Sales Officer: Evolution to Broader and Deeper Skill Sets
• Value proposition & offer
• Segmentation & targeting
• Financial modeling of channels & segments
• Planning for growth
Sales
Strategy
• Applications & tools
• Sales process
• Order-to-cash processes
• Sales operations
• Sales dashboard
• ROI analysis by channel
Cross-
Functional
Go-To-Market
Systems
• Processes & metrics
• Sales compensation driving selling behavior
• Measuring & reporting
• Alignment of resources with most attractive
segments
Performance
Management
• Roles & responsibilities
• Coverage by channel & segment &
geography
• Account planning
Account Coverage &
Deployment
• On-boarding
• Training
• Development & coaching
• Rotational planning
Recruitment & Development
Stages of Competencies & Cultural Attributes Skills & Experiences
Enterprise Leader
• Global team of 250+ people
• Installed base and verticals
• Organizational & political skills
• Strategy & P&L management
• Maturity in leadership
Organizational Leader
• Team of 50-250 people
• Broad scope of geographies &
channels
• Management of channel conflict
• Team sell with partners
Group Leader
• VP sales of emerging company or
regional sales leader
• Strategic involvement in sales
cycle with biggest accounts
• Cross-organization collaboration
• Builder of new channel models and
partnerships
Team Leader
• Small team of direct reports
• Results-oriented
• Player/coach
• Focused on biggest customer
prospects
• Greater risk tolerance
Critical Capabilities
Driving Result
Strategic Thinking
Leading Change
Leading People
Collaboration & Communications
Building Capabilities
Customer Mindset
Critical Capabilities of Sales Officers
Situation drives weighting of each capability and proficiency level
Cultural fit matters for business in general — and executive search in particular
18
Companies with consistent cultures outperform
their peers
When executives fail, it tends to be due to cultural
incompatibility
“When an executive hire didn’t work, what was the
reason?”1
1. Numbers sum to more than 100% because some respondents provided multiple responses
Source: Kristof-Brown, A. L., Zimmerman, R. D., & Johnson, E. C. (2005). Personnel Psychology; Burt, R. S., Gabbay, S. M., Holt,
G., & Moran, P. (1994). Acta Sociologica, 37(4), 345-370; Gordon, G. G., & DiTomaso, N. (1992). Journal of management
studies, 29(6), 783-798; Burt et al. (1994); SSI client phone survey
Microsoft Sales Leadership konference - KEYNOTE: CSO-ROLLEN – HVOR ER DEN PÅ VEJ HEN?  V. Michael Vad, Managing Partner, Spencer Stuart
Microsoft Sales Leadership konference - KEYNOTE: CSO-ROLLEN – HVOR ER DEN PÅ VEJ HEN?  V. Michael Vad, Managing Partner, Spencer Stuart

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Microsoft Sales Leadership konference - KEYNOTE: CSO-ROLLEN – HVOR ER DEN PÅ VEJ HEN? V. Michael Vad, Managing Partner, Spencer Stuart

  • 1. Michael Vad Managing Partner mvad@spencerstuart.com Microsoft Sales Leadership Conference, Sølyst, February 5, 2015 CSO rollen – hvor er den på vej hen?
  • 2. Topics for Discussion > Introduction to Spencer Stuart > The Rise of the Transformational Sales Leader > Sales Officer Assessment and Cultural Fit
  • 3. Spencer Stuart Who we are > Founded in 1956 and still privately held, Spencer Stuart helped establish the senior-level executive recruiting industry > More than 300 consultants with a unique blend of professional search experience and specialized industry and functional expertise > Experienced and highly knowledgeable associates, researchers and executive assistants round out client service teams and contribute to our knowledge of relevant candidate pools Where we are > In 55 offices in 30 countries around the world > With select clients, from major multinationals to emerging companies and nonprofit organizations, helping to address their senior executive leadership requirements > In the boardrooms of companies around the world, from the largest multinationals to private equity- backed businesses What we do > Partner with companies to find CEOs, presidents/COOs and their senior management teams, conducting more than 4,000 assignments each year > In addition to executive search, we: • Recruit exceptional directors and provide counsel on governance issues • Assist boards in CEO succession planning • Conduct management assessments of senior executives • Advise on board evaluations and effectiveness 3
  • 4. Chief Sales Officer Practice at Spencer Stuart With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search an in-depth understanding of talent needs and marketplace realities. Sales Operations Major Account Sales Vice President Sales Channel Management Managing Director Chief Revenue Officer Vice President Sales & Marketing Business Development Government Sales CANDIDATE POOL EXPERTISE SALES FUNCTIONS > We are a global, dedicated team of 25 consultants, many with a sales background. > We have conducted more than 1,000 sales searches over the past three years for clients that range from large multinational companies to private equity firms and their portfolio companies to emerging companies and nonprofit organizations. > For each assignment, we assemble a “best team” combining industry knowledge with functional and geographic expertise. We also conduct ongoing calls to review market intelligence and candidate pool development.
  • 5. 5
  • 7. The Changing Role of the Sales Executive “We need a head of sales who can deliver more than revenue. We need him to change the way we go to market, broaden our relationships with our customers and identify new opportunities for our products.” Hiring CEO
  • 8. What’s Driving the Change? 1. The customer buying process has evolved • Today´s customers are more empowered and better informed • They have progressed well down the purchasing process (options, references, pricing) before we meet them • This leads to more detailed and specific requirements • The traditional company-customer relationship has been redefined
  • 9. 1. The Customer Buying Process has Evolved “People buy from people they like and trust, and that used to be 90 percent of the game, but today it’s 10 percent. It might get you a seat at the table, but if you can’t quickly identify how you can work with the customer and how you can help solve their problems, save them money or drive revenue, it’s going to be a short conversation.” Bill Scannell, president of global sales and customer operations at EMC Corporation
  • 10. What’s Driving the Change? 1. The customer buying process has evolved 2. Data Analytics is being applied to the sales function • Big data has significant impact on sales force management • Integrated customer information and predictive analytics deliver “smarter” sales approach • Allowing for more effective segmentation, identification and retention of high- value customers • Enabling digitized, data-driven management of sales force performance • CSO ensuring that the entire organization embraces the impact that data makes on sales and the company
  • 11. 2. Data analytics “Data analytics skills are a big, big deal right now,” said Vivek Sankaran, senior vice president and chief customer officer of Frito- Lay North America. “It’s not just about cranking out a spreadsheet. It’s about figuring out how to get to the root causes and how to stay ahead of your customers’ needs.” “Data analytics skills are a big, big deal right now. It’s not just about cranking out a spreadsheet. It’s about figuring out how to get to the root causes and how to stay ahead of your customers’ needs.” Vivek Sankaran, senior vice president and chief customer officer of Frito-Lay North America
  • 12. What’s Driving the Change? 1. The customer buying process has evolved 2. Data Analytics is being applied to the sales function 3. Markets are more competitive • Finding new and retaining existing customers has never been more challenging • With the CSO manning the wheel companies must drive new go-to-market path • Success = 3-5 year view; striking the balance between progress and ability to adapt
  • 13. 3. Markets are More Competitive “The market has become hypercompetitive. You need to be looking out three to five years at how you go-to-market; and working toward that strategy to optimize across your channels and build the right capabilities in your field.” Rob Salmon, President Go-to-Market for NetApp.
  • 14. Sales Officer Leadership Continues to Be Stretched…
  • 15. Identifying a Transformational Sales Leader > Broad skill-sets in people, processes, structure, culture and strategies > Cross-functional influence to inspire more than just the sales organization > Critical thinking skills > Success driving development of new go-to-market strategies not only to lead sales, but guide transformational change as well > Ability to infuse new talent and create a pipeline of capability for future leadership success
  • 16. Chief Sales Officer: Evolution to Broader and Deeper Skill Sets • Value proposition & offer • Segmentation & targeting • Financial modeling of channels & segments • Planning for growth Sales Strategy • Applications & tools • Sales process • Order-to-cash processes • Sales operations • Sales dashboard • ROI analysis by channel Cross- Functional Go-To-Market Systems • Processes & metrics • Sales compensation driving selling behavior • Measuring & reporting • Alignment of resources with most attractive segments Performance Management • Roles & responsibilities • Coverage by channel & segment & geography • Account planning Account Coverage & Deployment • On-boarding • Training • Development & coaching • Rotational planning Recruitment & Development Stages of Competencies & Cultural Attributes Skills & Experiences Enterprise Leader • Global team of 250+ people • Installed base and verticals • Organizational & political skills • Strategy & P&L management • Maturity in leadership Organizational Leader • Team of 50-250 people • Broad scope of geographies & channels • Management of channel conflict • Team sell with partners Group Leader • VP sales of emerging company or regional sales leader • Strategic involvement in sales cycle with biggest accounts • Cross-organization collaboration • Builder of new channel models and partnerships Team Leader • Small team of direct reports • Results-oriented • Player/coach • Focused on biggest customer prospects • Greater risk tolerance
  • 17. Critical Capabilities Driving Result Strategic Thinking Leading Change Leading People Collaboration & Communications Building Capabilities Customer Mindset Critical Capabilities of Sales Officers Situation drives weighting of each capability and proficiency level
  • 18. Cultural fit matters for business in general — and executive search in particular 18 Companies with consistent cultures outperform their peers When executives fail, it tends to be due to cultural incompatibility “When an executive hire didn’t work, what was the reason?”1 1. Numbers sum to more than 100% because some respondents provided multiple responses Source: Kristof-Brown, A. L., Zimmerman, R. D., & Johnson, E. C. (2005). Personnel Psychology; Burt, R. S., Gabbay, S. M., Holt, G., & Moran, P. (1994). Acta Sociologica, 37(4), 345-370; Gordon, G. G., & DiTomaso, N. (1992). Journal of management studies, 29(6), 783-798; Burt et al. (1994); SSI client phone survey