presented by Rob Bentley and Paul Reiman of Hewitt Associates at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software

1. Designing the Customer-Focused Sales Organization Callidus TrueConnection October 13, 2008 Paul Reiman [email_address] (847) 442-3547 Rob Bentley [email_address] (847) 442-2673 To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC .

7. The Question: Customer-Focused = Sales Performance?

9. Problem Statement continued

10. Ideal State: Aligning the Interests of Key Stakeholders Rewards and Career Development Performance and Productivity Sales Force Company Customers Aligned Selling and Service Process Customer Focused Sales Effectiveness Mutually Valuable, Magnetic Relationships

11. Solution Requirements: Aligning for Impact Performance and Rewards Talent Management Organization Design Effective and Efficient Right Talent, Right Job, Right Time Productive and Engaged Hewitt Sales Performance Model Align the Sales Force Customer Insight Business Strategies Value Proposition Market Dynamics Understand Business Drivers Internal Business Impact Satisfied, Loyal Customers – Resistant to Competitive Threats

12. Five Step Process  Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact

15. Step 1: Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact  Know What the Customer Values

20. Example: Customer Buying Value Matrix Relative Value in Purchasing Decision Relative Effectiveness Worse Than Other Providers Better Than Other Providers Less Value More Value Value Gaps to Monitor and Manage Comparative Advantage to Exploit Value Gaps to Address Comparative Advantage to Consider Leverage Providing access to solution experts Communicating the business value Articulating the future roadmap Responsiveness of sales resources Demonstrating features and functionality Understanding the solution requirements Providing a single integrated solution Providing a solution that integrates with my existing infrastructure Initial investment

23. Step 2: Translate Customer Values Into An Effective Coverage Model  Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact

24. Translate Customer Values Into An Effective Coverage Model

30. Step 3: Link Talent Management to Customer Competency  Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact

31. Defining Customer Competencies Sales Process Linkage Plan Create Optimize Business Acumen Account Planning Relationship Building Communication Negotiation Process Management Buying Process Value Partnership Focus Solution Orientation Value Driven Efficient Vendor

34. Step 4: Ensure Rewards Support Alignment  Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact

35. Rewards Misalignment: Two Big Faults Fault Why An Issue Pay Mix Too Aggressive Puts additional pressure on generating more sales, creating more of an opportunity for dysfunctional selling Wrong Performance Measures Can overly focus a sales rep on a certain result a the expense of what the customer needs

37. Step 5: Track the Impact  Know What the Customer Values  Translate Customer Values Into an Effective Coverage Model  Link Talent Management to Customer Value  Ensure Rewards Support Alignment  Track the Impact

39. Measure the Impact in the Results -6% -10% 84% 15% 5% 8% 100% 112% Growth Composition View: Segment A Improved from -10% in the prior year Improved from +8% in the prior year Analyze growth to better isolate what is working and what isn’t working

41. Wrapping Up

44. Questions? Thank you for attending! Paul Reiman [email_address] (847) 442-3547 Rob Bentley [email_address] (847) 442-2673