presented at TrueConnection: Sales Performance Management Conference 2007 by Patrick Mosher and Jason Angelos, Global Practice Leads at Accenture

1. What Motivates a Sales Force? Patrick Mosher Global Lead Sales Talent Management Accenture Jason Angelos Global Lead Incentive Compensation Management Accenture

2. Driving behavior within intended performance guardrails… Avoid Acquiring New Customers Because it Wastes Too Much Time (Order Taker) Balance New Customer Acquisition While Retaining Old Customers (Hunter and Farmer) Focus on New Customer Acquisition at the Expense of Existing Customers (Existing Customer Sat Erodes) (Bounty Hunter) Sell too few Units with Focus on High Profitability (Volume Erodes) Sell Volume at Reasonable Discounts (Balanced Results) Sell Too Many Units (Margins Erodes) Too Much of a Good Thing Too Little of a Good Thing Just Right Participation (n=1) No Participation Rush the Stage Illustrative

3. Behavior, and their gaps, are driven by only three factors: Ability, Motivation, and Context. BEHAVIOR Effectively target, define, and run loyalty campaigns Context and Tools Motivation Ability Right Skills to Perform Target Behaviors Right Knowledge to Perform Target Behaviors Right Person into the Right Role Right Work Assigned to the Right People Right Performance Specified and Measured Incented to show Target Behaviors Right Information to Support Target Behaviors Right Tools to Easily Access Information Right Place at the Right Time to Exhibit their Target Behaviors Motivated to show Target Behaviors

5. Increasing Behaviors “Within the Guardrails” The probability if… I extend the Effort , that I will attain the Performance Objective Motivating a Person to a Performance Objective depends on… The probability if… I achieve the Performance Objective , that I will receive the Reward How much I Value the Reward

8. The end goal: A holistic approach to managing sales performance can “move the middle” 10% People Performance 70% of Sales Force 20% 10% Low Core High 10% Curve Shift 10% Curve Shift

10. Financial Impact of Moving the Middle +$1B Why does shifting the curve matter? Shifting the performance curve creates measurable business value on all fronts, especially for core performers. $300M $750K 30% = $3B 400 High Performers (Top 20% contribute 30% of revenue) $650M $460K 65% = $6.5B 1400 Core Performers (core 70% contribute 65% of revenue) $ 50M $250K 5% = $500M 200 Low Performers (bottom 10% contribute 5% of revenue) Total Increase in Revenue @ 10% Shift Revenue Increase per Rep @ 10% Shift $10B Sales Revenue / Performance per Group 2000 Reps

13. Executives in Leading organizations are focusing on REVENUE GROWTH and Sales Force is a primary driving force . Source: CSO Insights, Sales Performance Optimization, 2006 0% 10% 20% 30% 40% 50% 60% 70% Other Decrease Discounting Reduce Administrative Burden Improve Communications Improve Team Selling Increase Channel Sales Effectiveness Improve Margins Reduce Sell Cycle Time Improve Customer Loyalty/Satisfaction Increase Market Share Increase Sales Effectiveness Increase Revenues Percentage of CEOs citing each objective as one of their company’s three most important.

15. The Goal: Transform Sales Force Behaviors Sales Force Transformation must fundamentally change the interaction between the Field Sales person and the customer. Fundamental Unit of Transformation Aligned and Consistent Customer Interaction Target Behaviors Across whole Sales Force = Imagine if … All 15,000 Sales Reps exhibit target behavior set XYZ for a customer situation XYZ. No guessing. No interpretation.

16. Sales Force Key Performance Objectives Revenue Enhancing Cost Reducing Forecast Predictability 5 4 3 2 1 2. Sell More to Existing Customers 4. Improve Product / Solution Pricing 5. Maximize Return on New Product Launches 3. Retain Profitable Customers Longer 9. Reduce Customer Acquisition Costs 8. Decrease Direct Selling Costs 1. Acquire New Profitable Customers 12. Improve Sales Forecasts 10. Decrease Sales Operations Costs 6. Sell Most Profitable Services/Products 7. Sell Ongoing Service/Maintenance 11. Win the War for Sales Workforce Talent Grade your Selling Organization 13. Increase Consistent Use of Sales Methods/Tools