This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/sales-force-effectiveness-diagnosis-and-correction-framework-1078 BENEFITS OF DOCUMENT Sales Force Effectiveness DESCRIPTION Sales force effectiveness is one of the most important business levers in almost all business scenarios. This deck lists the top-10 tools & analysis used by top-tier management consultants to diagnose & improve the key improvement areas in a typical organizational landscape. The deck is structured to ensure that the user is able to leverage the analysis in a series for a complete transformation in sales force effectiveness.

1. SALES FORCE DIAGNOSTIC
10 KILLER ANALYSES

2. - 3 -- 3 -
SALES FORCE PRODUCTIVITY PERFORMANCE VARIANCE
Face-to-face salespeople Inside salespeople Issues/insights
Estimate potential opportunity
by calculating impact
of improving
• 25–75 percentile to 75
percentile performance level
• 25–50 percentile to 50
percentile performance level
• 50–75 percentile to 75
percentile performance level
• Face-to-face median to
inside median
1
15
30
55
15
20
30
25
5 5
Salesperson/year ($M)
1.0–2.5
2.5–4.0
4.0–5.5
5.5–7.0
7.0–8.5 +8.5
Salesperson/year ($M)
1.0–2.5
2.5–4.0
4.0–5.5
5.5–7.0
7.0–8.5 +8.5
100% = 125
25 percentile
= 2.8
Median
= 4.8
(%)
75 percentile
= 6.7
25
24
100% = 175
(%)
Median
= 5.1
75 percentile
= 6.9
25 percentile
= 4.0
30
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3. - 6 -- 6 -
SALES MANAGER TIME SPENT
Percent
Illustrative
About right amount of coaching
taking place
Need more coaching emphasis on
account targeting and planning
(versus coaching on execution)
Current/average
performer
Desired/best
performer
20–30
50–55
100% = xx hours xx hours
Reports/business planning/
communications (range = 5–20)
Entertainment (range = 5–20)
Travel (range = 10–20)
Handle fires/customer service
(range = 5–25)
Coaching office/bid (range = 5–15)
Coaching FTF (range = 5–10)
Own accounts (range = 10–20)
Current time on specific activity
45–5070–80
x
x
x
x
x
x
x
3
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4. - 9 -- 9 -
SALES FUNNEL ANALYSIS
Example
0
20
40
60
80
100
Improvement lever
xxx
Implications • Increase sales
force size
• Improve
geographic
coverage
• Improve
sales
process
• Improve sales
model
• Move towards
consultative
sales
approach
• Improve sales
force skills
• Improve sale
process
• Provide
adequate
administrative
support
• Highlight
distinctive
features of
product or
service
• Evaluate
pricing
Total
opportunity
at existing
customers
Customers not
contacted
Cont’d but not
short listed on
basis of prod
capa’ty/quality
Contacted but
not short listed
because
sales rep
lacked prod
know-ledge
Bid on but not
short listed
because specs
were not to
client’s
advantage
Short listed
but lost
because bid
was late/
incomplete
Short listed
but lost on
price or
other factor
Won
A funnel analysis
indicates why sales
fall short and how
the sales process
needs to change
Sales lead generation/
coverage/time
Bid screening
process
Salesforce skills/
sales model
Proposal process
6
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5. - 12 -- 12 -
SALES CAPACITY REQUIRED: ACCOUNT
SALES/SERVICE OPTIONS
Account Executives(2)
Illustrative
(1) Total AE’s reporting time = 30
(2) Account executives
No of AEs
required
(reps)
Available AE
selling time/month
Call
frequency
per month
Call length
(hour)
Annual no
of target
accounts
Tactic
Current model(1)
Option 1
Option 2
Option 3
30
130
23
30
88 hours (200
hours/month x 44%)
88 hours (200
hours/month x 44%)
100 hours (200
hours/month x 50%)
100 hours (200
hours/month x 50%)
2.50
2.50
0.50
0.65
1
1
1
1
1,056
4,600
4,600
4,600
Focus only on limited
number of target accounts
Increase capacity
No medium/small accounts
Reduce number of reps
Target only A accounts
Increase percent of
time selling
Reduce call frequency
Reduce call frequency
Increase percent of
time selling
Represents change to the current model
xxx identifies 4,600
“A” customers
Preferred
Option
Footnote reference are
missing. Please check
9
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6. 1
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