SlideShare ist ein Scribd-Unternehmen logo
1 von 27
Transforming the Sales Force
Anticipating the Journey

Harvard Business School: Thought Leadership on the Sales
Profession

June 5, 2012

This presentation is solely for the use of ZS Associates. No part of it may be circulated,
quoted or reproduced without prior written approval of ZS Associates.



                                                       ZS Associates | 312.233.4800 | www.zsassociates.com
Sales & Marketing effectiveness is achieved by focusing on the
       drivers & their interdependencies

Market Insight                  Go-To-Market Strategy                   Operational Excellence

                                                                                                 Sales Force                   Channels
                                                                             • Sizing
                                                                                                                • Segments
                                                                Sales        • Territories
                                                                                                                • Capacity
                                                              Resources      • Account Targeting
                                                                                                                  Planning
                                                                             • Territory & Pipeline Mgt
                                                Channels &                   • Culture
  Customer                                      Sales Force   Knowledge,
                                                                             • Competency Model
                                                                Skills &                                        • Benefits &
   Insight                                       Structure                   • Hiring                             Rewards
                                                               Behaviors     • Training & Coaching
                                                                                                                • Partner
                                                                             • Performance Measures               Program
                                                                                                                  Management
                                                              Motivation     • Incentives & Rewards
                                                                             • Performance Reviews
                       Segmentation       Value
Competitor               & Growth      Proposition              Tools        • Sales Process & Decision Support Tools
  Insight                Strategy       Strategy
                                                                             • Marketing Mix
                                                                             • Demand Generation
                                                              Marketing      • Lead Nurturing
                                                              Programs       • Sales Force & Partner Enablement
  Market                                         Customer                    • Community Building

Environment                                     Engagement
                                                  Process                   • Data & List Management
                                                                            • Sales Admin
                                                              Operations
                                                                            • In-line Forecasting
                                                               (Sales,      • Reporting
                                                              Marketing,    • Analytics
                                                              Channels)     • Agency Management
                                                                            • Platforms & Systems Management

© 2012 ZS Associates                                    −2−                              HBS_Moorman_Sales Force Transformation 060512
The path to success is not always the same




                         Incremental          Transformational


                       Year-over-year         Larger scale
                       continuous             strategy &/or
                       improvement            capabilities change




© 2012 ZS Associates                    −3−             HBS_Moorman_Sales Force Transformation 060512
Continuous or Discontinuous?




                          Incremental         Transformational

                       • Always               • Significant change in
                                                buyer needs or
                                                processes
                                              • New corporate strategies
                                                (organic, M&A)
                                              • Structural change in a
                                                market
                                              • Company or market
                                                lifecycle
                                              • Lagging performance
© 2012 ZS Associates                    −4−                HBS_Moorman_Sales Force Transformation 060512
The Transformation Journey – A Case Example



        • Manufacturer of injection
          molding equipment
                                                • Increasing number of global
                                                  customers
        • Complex customer landscape
           • Mold Makers
                                                • Low market growth
           • Molders
           • End-Users
                                                • Diminishing technology
                                                  advantage, aggressive and
        • Industry leader at ~15% share
                                                  rapidly growing competitors
        • Global operations and
                                                • Experiencing declining share,
          customer base in diverse
                                                  and slightly declining price
          industries
                                                  premiums
        • Complacency at many levels

© 2012 ZS Associates                      −5−                      HBS_Moorman_Sales Force Transformation 060512
“Can’t we just provide training and change
                        the sales force’s incentives?”




© 2012 ZS Associates                     −6−               HBS_Moorman_Sales Force Transformation 060512
A deep dive evaluation resulted in important insights &
       precursors to successful change

                                                  Workout 1                                             Workout 2

             I. Sales Strategy                            II. Market Coverage                   III. Sales Process & Tools
                 •     Customer Needs, Buying               •   Sales Force Structure & Roles   •   Sales & Service Process,
                       Processes & Potentials                                                       Activities & Roles (CRM
                                                            •   Sizing & Allocation                 Strategy)
                 •     Segmentation
                                                            •   Territories                     •   Sales Tools & Enablers
                 •     Growth Strategy
                                                            •   Account Targeting
                 •     Market Offerings & Value
                       Propositions
                 •     Pricing Strategy



                                                  Workout 3

             VI. Sales Support                            V. Culture & Motivation               IV. Knowledge & Skills
                 •     Sales Administration                 •   Sales culture                   •   Competency Model
                       (Territories, Goals, Incentives)     •   Measures & reporting            •   Hiring & Selection
                 •     Reporting (Standard, Ad-hoc)         •   Recognition & rewards           •   Training
                 •     Analytics (Standard, Ad-hoc)         •   Goals                           •   Coaching
                 •     Account Universe Data &              •   Performance Reviews
                       Systems




© 2012 ZS Associates                                                    −7−                                    HBS_Moorman_Sales Force Transformation 060512
First pivotal moment: “We’re good, but need to be far better”




        1. Improve our                                  3. Instill a
                 coverage of     2. Increase the           performance
                 the most           impact of each         focused and
                 valuable           and every              accountable
                 customers and      sales call             sales culture
                 prospects




© 2012 ZS Associates                  −8−                     HBS_Moorman_Sales Force Transformation 060512
Transformation requires a systematic, fact-based
       approach to strategy design & sustainability

               May      June        July       Aug          Sep          Oct       Nov                 Dec




                                                                                                                Launch
                                Sales Force Structure      Territories
                                       & Sizing             Design
             Customer Insight
             & Segmentation
                                   Baseline Value
                                                           Sales Process & Tools
                                    Proposition

                                                        Competency, Selection
                                                                                     Training
                                                             & Hiring


                                                           Incentives Plan                      Goals Setting


                                                                                  Dashboard &
                                                                                Performance Mgt.


                                                            Sales & Marketing Operations Capabilities



© 2012 ZS Associates                                 −9−                                 HBS_Moorman_Sales Force Transformation 060512
1. Improve our coverage of the most valuable customers and
          prospects


                                       § Role pollution, too little selling time

                  1. Improve our       § Too much focus on small accounts, to
                       coverage of       little focus on new mid-market accounts
                       the most
                       valuable
                       customers and
                                       § Fragmented approach to global customers
                        Current
                       prospects
                       Situation       § Best talent not on most important
                                         accounts

                                       § Heavy & light territories




© 2012 ZS Associates                     − 10 −                        HBS_Moorman_Sales Force Transformation 060512
Quality estimates of account-level potential was key to a new
       growth strategy, sales force optimization, and goals setting

                                          Average Estimated Potential and Sales (US)
                                  1,500


                                                            Potential
                       ($ 000s)




                                  1,000


                                                            Sales
                                   500



                                     0
              Value Segment                     1              2                  3       4                     5
            Accounts                            42            125                187      434               2,351

            Avg. Annual Pot.
                                               1,470          316                142      74                   33
            ($000s)
            Avg Annual Sales
                                               364            124                21       18                    8
            ($000s)

                                                                             Mid-Market                Very Small
                                           Key Accounts
                                                                             Accounts                  Accounts


© 2012 ZS Associates                                                − 11 −                      HBS_Moorman_Sales Force Transformation 060512
An actionable segmentation enabled better value proposition and
       sales force design strategies & execution

                                                                                        Needs & Buying Processes
                                                                                               Global Accounts
                                                                                          (10 strategically critical accounts)



                                                                                  Program Buyer                      Systems Buyer




                                                                                                                                                        (no / low sale)
                                                      (>$500k in Pot.)




                                                                              Primary Decision-Maker           Primary Decision-Maker




                                                                                                                                                          Prospects
                                         Key
                  Account Potential




                                                                                  Program Buyer                      Systems Buyer
                                                                               Secondary Influencer              Secondary Influencer
                                         Mid-market
                                             market




                                                                                  Systems Buyer                      Systems Buyer
                                                                              Primary Decision-Maker             Secondary Influencer
                                                            (<$50k in Pot.)
                                      Accounts
                                       Small




© 2012 ZS Associates                                                                                  − 12 −                            HBS_Moorman_Sales Force Transformation 060512
A detailed review of sales force activities and effort allocations
       resulted in significant rationalization



                                                 Maintain

                                                 Increase
                        Current
                        Activities               Decrease
                            &
                          Effort                 Stop

                       Allocations               Re-assign

                                                 New

© 2012 ZS Associates                  − 13 −                   HBS_Moorman_Sales Force Transformation 060512
Restructuring the sales force improved role clarity, coordination
       and accountability – while reducing redundant work


          Strategic     • Named global accounts & key               Project
          Accounts        accounts                                 Engineer
          Manager       • Executive sponsorship program          (Global, Key &
        (Global & Key                                             Mid-market
                        • Elevated support levels                  accounts)
          accounts)


                        • Mid-market customers and global /    • Technical due
         Field Sales      key account affiliates                 diligence, order
          (Mid-market   • Grow under-penetrated and prospect     fulfilment
           accounts)      accounts                               administration and
                                                                 coordination of
                                                                 account service &
                                                                 support
                                                               • Senior PEs aligned
        Inside Sales                                             against SAM accounts
                        • Named small accounts (and some
        (Small
                          geographically remote accounts)
        accounts)
                                                                            New roles




© 2012 ZS Associates                           − 14 −                 HBS_Moorman_Sales Force Transformation 060512
Sales response analysis provided new insight into sales force value,
       optimal size, and optimal allocation




                                                        Revenue
                       $ Impact




                                                        Profit
                                                        Contribution




                                     Sales Force Size

© 2012 ZS Associates                   − 15 −                      HBS_Moorman_Sales Force Transformation 060512
Territory optimization improved coverage and goals fairness


                                                   2.2
                                                   2.0
                                                   1.8
                       Territory Workload (FTEs)




                                                          Be          Heavy Territories = Lost Growth
                                                   1.6      fo
                                                                 re
                                                   1.4
                                                   1.2
                                                         Afte                                Acceptable Balance: +/- 20%
                                                   1.0       r

                                                   0.8
                                                   0.6
                                                   0.4
                                                                       Light Territories = Wasted Resource
                                                   0.2
                                                   0.0


                                                           Territories Sorted by Target Account Workload
                                                                          (per Account Coverage Plan)

© 2012 ZS Associates                                                                − 16 −                            HBS_Moorman_Sales Force Transformation 060512
2. Increase the impact of each and every sales call



                                        § Role pollution (more service than
                                          selling)

                2. Increase the         § Order takers (vs. proactive selling)
                       impact of each
                       and every        § Features and price pitches
                        Current
                       sales call
                                        § Not calling on the front office (only the
                       Situation          manufacturing contacts)

                                        § Little attention to territory, account or
                                          call planning




© 2012 ZS Associates                      − 17 −                        HBS_Moorman_Sales Force Transformation 060512
A bottom-up / top-down approach proved to be an effective way
       to break through to the next level of sales process capability


            Early Experience Team                                   Full-Scale Rollout
                  & Accounts

                                                                              Hiring & Selection
                                                                                   Process
                       Refined Sales
                       Processes &                                              360o Training
                                          Proof                Competency
                       Approaches
                                          Points &             Model
                                                                              Coaching Process
                                          Advocates                               & Tools
                                                               Role
                                                               Expectations     Performance
                       Customized Sales
                       Tools & Enablers                                        Review Content
                                                                                  Reward
                                                                                  Systems




© 2012 ZS Associates                                  − 18 −                         HBS_Moorman_Sales Force Transformation 060512
A “3-legged race” (vs. “baton hand-off”) proved to be a powerful
       approach for developing winning value proposition strategies and
       enablers

         “For companies looking to maximize manufacturing performance, we provide the
           leading solution, helping to lower overall costs and minimize business risk”


              Leading technical             Lower total cost of           Reduced business
                  solution                     ownership                        risk

        • Leading technologies and       • Reduced production costs:   • Leading provider, with global
          innovations                                                    manufacturing, sales and
                                           –High up-time and
                                                                         service footprint
        • Broad product portfolio           reliability
          addressing spectrum of                                       • Industry leadership in
                                           –High quality
          applications, from simple to                                   technical due diligence and
          highly complex                   –Minimized waste              design, minimizing
                                                                         implementation risk and
        • Tailored solutions to meet       –Lowest running costs
                                                                         quality issues
          specific application needs
                                         • Streamlined product
                                                                       • Industry leading warranty
                                           fulfillment process
                                                                         programs
                                                                       • Rigorous project
                                                                         management and fulfillment


© 2012 ZS Associates                                − 19 −                         HBS_Moorman_Sales Force Transformation 060512
A new class of sales tools proved instrumental in motivating and
       enabling effective value-based selling


                                              Key Sales Process Enablers


                       Value proposition tools:                 Other Sales process enablers:

                       • Baseline market offerings &            • Pre-call planning template
                         value proposition
                                                                • Needs assessment checklist
                       • Value proposition
                         communication tool                     • Prospect lists

                       • Cost-in-use calculator                 • Account review presentation
                                                                  template
                       • Competitive offerings
                         comparison (Fighting guide)            • Account planning template




© 2012 ZS Associates                                   − 20 −                          HBS_Moorman_Sales Force Transformation 060512
Training was critical. Apprenticeship was even more
       important. Coaching is the secret sauce.

             Bi-weekly Sales Activity       • Review pipeline activities (penetration, retention & acquisition)
             Meeting                        • Review account targeting
             Tactical+                      • Agree on & review “Top 5” opportunities
             (1st: 30 min., conf. call)     • Review account plans & next steps on “Top 5” opportunities
             (2nd: 60 min., face-to-face)
                                            • Resolve issues

             Quarterly Performance &        • Performance review & feedback
             Territory Plan Review                 –       Performance to goal
             Strategic                             –       VBS capabilities
             (90 min., face-to-face)               –       Personal development plan
                                            • Win/loss reviews
                                            • Assess & agree territory & pipeline development plan
                                            • Review account plans for top priority accounts

             Rep Rides                      Review/coach:
                                            • Call planning
             Tactical
             Top 20%:         3x/Qtr        • Call execution
             Mid 60%:         4x/Qtr        • Value proposition development & communication
             Low 20%:         3x/Qtr        • Sales process execution
                                            • Basic sales skills


© 2012 ZS Associates                              − 21 −                                       HBS_Moorman_Sales Force Transformation 060512
3. Instill a performance focused and accountable sales culture



                                       § Pockets of complacency

              3. Instill a             § Account hoarding
                       performance
                       focused and     § Inconsequential goals
                       accountable
                         Current
                       sales culture   § Tolerance of poor performers
                        Situation
                                       § No common sales culture




© 2012 ZS Associates                     − 22 −                    HBS_Moorman_Sales Force Transformation 060512
Rate-gate incentive plans and new metrics drove greater pay for
              performance relative to critical objectives



                             Goal based component = 80%                          Management by Objectives (MBO) = 20%
        SAM                        FS              IS         PE                        SAM           FS                       IS

                                        Payout curve
                          250%                                                                         Performance vs. expectation
     % of target payout




                          200%                                                Metric                       Below        Meets            Exceeds
                                                                              New product sales
                          150%
                                                                              Pricing
                          100%
                                                                              Strategic account
                          50%                                                 conversion (SAM only)

                           0%
                             50%               100%           150%
                                        Goal attainment (%)




© 2012 ZS Associates                                                 − 23 −                                        HBS_Moorman_Sales Force Transformation 060512
Performance reporting, including ranking, proved to be
       tremendously motivating


             Sales Dashboard
             June 10, 2010
             John Smith




© 2012 ZS Associates                − 24 −                 HBS_Moorman_Sales Force Transformation 060512
Competency models aligned to the sales process increased
       relevance and impact

                                                                                                                 Level
                                       Dimensions                                              Pre-Basic   Basic    Intermediate        Expert
                                       General
                                          1. Territory and pipeline management
                                          2. Account Planning
                                          3. Call planning
                                          4. Accountability and performance focus
                       All Roles




                                       Sales Process Focus
                                          5. Customer needs & opportunities assessment
                                          6. Market offering / value prop development
                                          7. Value prop communication & proof
                                          8. Negotiations & solution agreement
                                          9. Implementation management
                                          10. Value reinforcement / account management




                                       KAM/SAM/GAM
                                         11. Team leadership & coordination
                                         12. Internal impact
                       Role Specific




                                       First Line Manager
                                           13.   Coaching & Apprenticeship (1-10 above)
                                           14.   Hiring
                                           15.   Performance management
                                           16.   Translating business strategy to team
                                           17.   Motivating the team

© 2012 ZS Associates                                                                  − 25 −                                  HBS_Moorman_Sales Force Transformation 060512
Sales leadership was disciplined. No warm body placement or
       hiring.




© 2012 ZS Associates               − 26 −                HBS_Moorman_Sales Force Transformation 060512
Currently tracking significantly above plan, in large part driven by
       SFE initiative

                                                                        SST Business Case                  CAGR


                                                                                                              10%
          Projected +2% share                                                   28%*
          point growth and                                                                                    7%

          +28% revenue
          growth for 2010:
          • ~15% revenue growth
            driven by market
            recovery
                                                                                        Base Case Forecast
          • ~13% revenue growth
            driven by market share
            gains (from historically                                                    SST Forecast
            flat to declining share
            position)                                                                   Actual


                                                      2009              2010           2011        2012
                                    SST Business Case
                                    Projected Share Increase             1.1%          2.1%            2.4%
                                    1-yr ROI                             20%           125%        158%
                                    3 Year Discounted ROI                93%           262%        315%

  * Projected based on 2010 actuals through mid-September
© 2012 ZS Associates                                           − 27 −                                   HBS_Moorman_Sales Force Transformation 060512

Weitere ähnliche Inhalte

Andere mochten auch

Intro To Consulting Prework 1
Intro To Consulting   Prework 1Intro To Consulting   Prework 1
Intro To Consulting Prework 1JPStrategy
 
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...SmithExecEd
 
(BridgeKnowle) Year End Checklist for HR - Main Slides
(BridgeKnowle) Year End Checklist for HR - Main Slides(BridgeKnowle) Year End Checklist for HR - Main Slides
(BridgeKnowle) Year End Checklist for HR - Main SlidesKenny Ong
 
What is Management Consulting, and Is It For Me?
What is Management Consulting, and Is It For Me?What is Management Consulting, and Is It For Me?
What is Management Consulting, and Is It For Me?JPStrategy
 
Who Are The Consultants Blog
Who Are The Consultants BlogWho Are The Consultants Blog
Who Are The Consultants BlogJPStrategy
 
Hindustan Unilever Compensation Plan 2014 - Super, Simple and Sustainable
Hindustan Unilever Compensation Plan 2014 - Super, Simple and SustainableHindustan Unilever Compensation Plan 2014 - Super, Simple and Sustainable
Hindustan Unilever Compensation Plan 2014 - Super, Simple and SustainableSudeeptodhar
 
Accelerating Leadership Development
Accelerating Leadership DevelopmentAccelerating Leadership Development
Accelerating Leadership DevelopmentJP Elliott, PhD
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)Gurjit
 
hul reward and recognition
hul reward and recognitionhul reward and recognition
hul reward and recognitiontrupti soni
 
Grade structure
Grade structureGrade structure
Grade structurePABAK DAS
 
Developing Leaders Through a Structured Leadership Development Program
Developing Leaders Through a Structured Leadership Development ProgramDeveloping Leaders Through a Structured Leadership Development Program
Developing Leaders Through a Structured Leadership Development ProgramWong Yew Yip
 
Agenda del Club de la Innovación Colombia 2014 (Bogotá)
Agenda del Club de la Innovación Colombia 2014 (Bogotá)Agenda del Club de la Innovación Colombia 2014 (Bogotá)
Agenda del Club de la Innovación Colombia 2014 (Bogotá)Innovare
 
Trabajo teórico practico excel
Trabajo teórico practico excelTrabajo teórico practico excel
Trabajo teórico practico excelLucia Julian
 
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.articolo9
 

Andere mochten auch (20)

IDN 101
IDN 101IDN 101
IDN 101
 
Intro To Consulting Prework 1
Intro To Consulting   Prework 1Intro To Consulting   Prework 1
Intro To Consulting Prework 1
 
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...
Succession Planning - Jeffrey Kudisch - University Of Maryland Robert H. Smit...
 
(BridgeKnowle) Year End Checklist for HR - Main Slides
(BridgeKnowle) Year End Checklist for HR - Main Slides(BridgeKnowle) Year End Checklist for HR - Main Slides
(BridgeKnowle) Year End Checklist for HR - Main Slides
 
Gorham nickel
Gorham nickelGorham nickel
Gorham nickel
 
Sm 11
Sm  11Sm  11
Sm 11
 
What is Management Consulting, and Is It For Me?
What is Management Consulting, and Is It For Me?What is Management Consulting, and Is It For Me?
What is Management Consulting, and Is It For Me?
 
Who Are The Consultants Blog
Who Are The Consultants BlogWho Are The Consultants Blog
Who Are The Consultants Blog
 
Hindustan Unilever Compensation Plan 2014 - Super, Simple and Sustainable
Hindustan Unilever Compensation Plan 2014 - Super, Simple and SustainableHindustan Unilever Compensation Plan 2014 - Super, Simple and Sustainable
Hindustan Unilever Compensation Plan 2014 - Super, Simple and Sustainable
 
Accelerating Leadership Development
Accelerating Leadership DevelopmentAccelerating Leadership Development
Accelerating Leadership Development
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)
 
hul reward and recognition
hul reward and recognitionhul reward and recognition
hul reward and recognition
 
Grade structure
Grade structureGrade structure
Grade structure
 
Sales Force Effectiveness Analysis
Sales Force Effectiveness AnalysisSales Force Effectiveness Analysis
Sales Force Effectiveness Analysis
 
Management Consulting
Management ConsultingManagement Consulting
Management Consulting
 
Developing Leaders Through a Structured Leadership Development Program
Developing Leaders Through a Structured Leadership Development ProgramDeveloping Leaders Through a Structured Leadership Development Program
Developing Leaders Through a Structured Leadership Development Program
 
Agenda del Club de la Innovación Colombia 2014 (Bogotá)
Agenda del Club de la Innovación Colombia 2014 (Bogotá)Agenda del Club de la Innovación Colombia 2014 (Bogotá)
Agenda del Club de la Innovación Colombia 2014 (Bogotá)
 
La organización
La organizaciónLa organización
La organización
 
Trabajo teórico practico excel
Trabajo teórico practico excelTrabajo teórico practico excel
Trabajo teórico practico excel
 
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.
UTENTE: 13111 La 2^E riflette sulla guerra e invia messaggi di pace.
 

Ähnlich wie Hbs moorman sales force transformation 060512

Citizen Engagement - Missouri Digital Summitt
Citizen Engagement - Missouri Digital SummittCitizen Engagement - Missouri Digital Summitt
Citizen Engagement - Missouri Digital SummittJonathan Steffens
 
2 Page Brochure
2 Page Brochure2 Page Brochure
2 Page BrochurePaul Short
 
Greenhouse Value Proposition3
Greenhouse Value Proposition3Greenhouse Value Proposition3
Greenhouse Value Proposition3sbranney
 
TCG proposition web copy
TCG proposition web copyTCG proposition web copy
TCG proposition web copyTheConroyGroup
 
Performance improvement consultancy
Performance improvement consultancyPerformance improvement consultancy
Performance improvement consultancyHj Arriffin Mansor
 
Launch presentation
Launch presentationLaunch presentation
Launch presentationmyvasolution
 
4. thurs 130 215 trichel cutten - advanced analytics workshop
4. thurs 130 215 trichel cutten -  advanced analytics workshop4. thurs 130 215 trichel cutten -  advanced analytics workshop
4. thurs 130 215 trichel cutten - advanced analytics workshopJon Hedlund
 
Leverage Analytics for Decision Support and Improved Retail Performance
Leverage Analytics for Decision Support and Improved Retail PerformanceLeverage Analytics for Decision Support and Improved Retail Performance
Leverage Analytics for Decision Support and Improved Retail PerformancePerficient, Inc.
 
Rhys Henderson Career Map 2011
Rhys Henderson Career Map 2011Rhys Henderson Career Map 2011
Rhys Henderson Career Map 2011rhenders
 
Field force motivation
Field force motivationField force motivation
Field force motivationDEEPAK SAHU
 
SalesDriver(tm) short pack
SalesDriver(tm) short packSalesDriver(tm) short pack
SalesDriver(tm) short packTapio Nissilä
 
The Sales Coach Skill of Professional Selling
The Sales Coach Skill of Professional SellingThe Sales Coach Skill of Professional Selling
The Sales Coach Skill of Professional SellingMichael Galante
 
Company profile trustpartners april 2013
Company profile trustpartners april 2013Company profile trustpartners april 2013
Company profile trustpartners april 2013TrustPartners
 
Saa s sales and marketing lilia shirman_marketngcamp-for web
Saa s sales and marketing lilia shirman_marketngcamp-for webSaa s sales and marketing lilia shirman_marketngcamp-for web
Saa s sales and marketing lilia shirman_marketngcamp-for webPaul Wcislo
 
XtreMketing1.0
XtreMketing1.0XtreMketing1.0
XtreMketing1.0cjserrato
 
Customer Insights into Loyalty
Customer Insights into LoyaltyCustomer Insights into Loyalty
Customer Insights into LoyaltyChristine Crandell
 

Ähnlich wie Hbs moorman sales force transformation 060512 (20)

Citizen Engagement - Missouri Digital Summitt
Citizen Engagement - Missouri Digital SummittCitizen Engagement - Missouri Digital Summitt
Citizen Engagement - Missouri Digital Summitt
 
2 Page Brochure
2 Page Brochure2 Page Brochure
2 Page Brochure
 
Greenhouse Value Proposition3
Greenhouse Value Proposition3Greenhouse Value Proposition3
Greenhouse Value Proposition3
 
SAP_CRM
SAP_CRMSAP_CRM
SAP_CRM
 
TCG proposition web copy
TCG proposition web copyTCG proposition web copy
TCG proposition web copy
 
TCG proposition web copy
TCG proposition web copyTCG proposition web copy
TCG proposition web copy
 
Performance improvement consultancy
Performance improvement consultancyPerformance improvement consultancy
Performance improvement consultancy
 
Launch presentation
Launch presentationLaunch presentation
Launch presentation
 
4. thurs 130 215 trichel cutten - advanced analytics workshop
4. thurs 130 215 trichel cutten -  advanced analytics workshop4. thurs 130 215 trichel cutten -  advanced analytics workshop
4. thurs 130 215 trichel cutten - advanced analytics workshop
 
Leverage Analytics for Decision Support and Improved Retail Performance
Leverage Analytics for Decision Support and Improved Retail PerformanceLeverage Analytics for Decision Support and Improved Retail Performance
Leverage Analytics for Decision Support and Improved Retail Performance
 
Rhys Henderson Career Map 2011
Rhys Henderson Career Map 2011Rhys Henderson Career Map 2011
Rhys Henderson Career Map 2011
 
Field force motivation
Field force motivationField force motivation
Field force motivation
 
SalesDriver(tm) short pack
SalesDriver(tm) short packSalesDriver(tm) short pack
SalesDriver(tm) short pack
 
The Sales Coach Skill of Professional Selling
The Sales Coach Skill of Professional SellingThe Sales Coach Skill of Professional Selling
The Sales Coach Skill of Professional Selling
 
Basic Of Sales Metric
Basic Of Sales MetricBasic Of Sales Metric
Basic Of Sales Metric
 
Company profile trustpartners april 2013
Company profile trustpartners april 2013Company profile trustpartners april 2013
Company profile trustpartners april 2013
 
Saa s sales and marketing lilia shirman_marketngcamp-for web
Saa s sales and marketing lilia shirman_marketngcamp-for webSaa s sales and marketing lilia shirman_marketngcamp-for web
Saa s sales and marketing lilia shirman_marketngcamp-for web
 
XtreMketing1.0
XtreMketing1.0XtreMketing1.0
XtreMketing1.0
 
Excellence in SAM Process
Excellence in SAM ProcessExcellence in SAM Process
Excellence in SAM Process
 
Customer Insights into Loyalty
Customer Insights into LoyaltyCustomer Insights into Loyalty
Customer Insights into Loyalty
 

Kürzlich hochgeladen

Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 

Kürzlich hochgeladen (20)

Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 

Hbs moorman sales force transformation 060512

  • 1. Transforming the Sales Force Anticipating the Journey Harvard Business School: Thought Leadership on the Sales Profession June 5, 2012 This presentation is solely for the use of ZS Associates. No part of it may be circulated, quoted or reproduced without prior written approval of ZS Associates. ZS Associates | 312.233.4800 | www.zsassociates.com
  • 2. Sales & Marketing effectiveness is achieved by focusing on the drivers & their interdependencies Market Insight Go-To-Market Strategy Operational Excellence Sales Force Channels • Sizing • Segments Sales • Territories • Capacity Resources • Account Targeting Planning • Territory & Pipeline Mgt Channels & • Culture Customer Sales Force Knowledge, • Competency Model Skills & • Benefits & Insight Structure • Hiring Rewards Behaviors • Training & Coaching • Partner • Performance Measures Program Management Motivation • Incentives & Rewards • Performance Reviews Segmentation Value Competitor & Growth Proposition Tools • Sales Process & Decision Support Tools Insight Strategy Strategy • Marketing Mix • Demand Generation Marketing • Lead Nurturing Programs • Sales Force & Partner Enablement Market Customer • Community Building Environment Engagement Process • Data & List Management • Sales Admin Operations • In-line Forecasting (Sales, • Reporting Marketing, • Analytics Channels) • Agency Management • Platforms & Systems Management © 2012 ZS Associates −2− HBS_Moorman_Sales Force Transformation 060512
  • 3. The path to success is not always the same Incremental Transformational Year-over-year Larger scale continuous strategy &/or improvement capabilities change © 2012 ZS Associates −3− HBS_Moorman_Sales Force Transformation 060512
  • 4. Continuous or Discontinuous? Incremental Transformational • Always • Significant change in buyer needs or processes • New corporate strategies (organic, M&A) • Structural change in a market • Company or market lifecycle • Lagging performance © 2012 ZS Associates −4− HBS_Moorman_Sales Force Transformation 060512
  • 5. The Transformation Journey – A Case Example • Manufacturer of injection molding equipment • Increasing number of global customers • Complex customer landscape • Mold Makers • Low market growth • Molders • End-Users • Diminishing technology advantage, aggressive and • Industry leader at ~15% share rapidly growing competitors • Global operations and • Experiencing declining share, customer base in diverse and slightly declining price industries premiums • Complacency at many levels © 2012 ZS Associates −5− HBS_Moorman_Sales Force Transformation 060512
  • 6. “Can’t we just provide training and change the sales force’s incentives?” © 2012 ZS Associates −6− HBS_Moorman_Sales Force Transformation 060512
  • 7. A deep dive evaluation resulted in important insights & precursors to successful change Workout 1 Workout 2 I. Sales Strategy II. Market Coverage III. Sales Process & Tools • Customer Needs, Buying • Sales Force Structure & Roles • Sales & Service Process, Processes & Potentials Activities & Roles (CRM • Sizing & Allocation Strategy) • Segmentation • Territories • Sales Tools & Enablers • Growth Strategy • Account Targeting • Market Offerings & Value Propositions • Pricing Strategy Workout 3 VI. Sales Support V. Culture & Motivation IV. Knowledge & Skills • Sales Administration • Sales culture • Competency Model (Territories, Goals, Incentives) • Measures & reporting • Hiring & Selection • Reporting (Standard, Ad-hoc) • Recognition & rewards • Training • Analytics (Standard, Ad-hoc) • Goals • Coaching • Account Universe Data & • Performance Reviews Systems © 2012 ZS Associates −7− HBS_Moorman_Sales Force Transformation 060512
  • 8. First pivotal moment: “We’re good, but need to be far better” 1. Improve our 3. Instill a coverage of 2. Increase the performance the most impact of each focused and valuable and every accountable customers and sales call sales culture prospects © 2012 ZS Associates −8− HBS_Moorman_Sales Force Transformation 060512
  • 9. Transformation requires a systematic, fact-based approach to strategy design & sustainability May June July Aug Sep Oct Nov Dec Launch Sales Force Structure Territories & Sizing Design Customer Insight & Segmentation Baseline Value Sales Process & Tools Proposition Competency, Selection Training & Hiring Incentives Plan Goals Setting Dashboard & Performance Mgt. Sales & Marketing Operations Capabilities © 2012 ZS Associates −9− HBS_Moorman_Sales Force Transformation 060512
  • 10. 1. Improve our coverage of the most valuable customers and prospects § Role pollution, too little selling time 1. Improve our § Too much focus on small accounts, to coverage of little focus on new mid-market accounts the most valuable customers and § Fragmented approach to global customers Current prospects Situation § Best talent not on most important accounts § Heavy & light territories © 2012 ZS Associates − 10 − HBS_Moorman_Sales Force Transformation 060512
  • 11. Quality estimates of account-level potential was key to a new growth strategy, sales force optimization, and goals setting Average Estimated Potential and Sales (US) 1,500 Potential ($ 000s) 1,000 Sales 500 0 Value Segment 1 2 3 4 5 Accounts 42 125 187 434 2,351 Avg. Annual Pot. 1,470 316 142 74 33 ($000s) Avg Annual Sales 364 124 21 18 8 ($000s) Mid-Market Very Small Key Accounts Accounts Accounts © 2012 ZS Associates − 11 − HBS_Moorman_Sales Force Transformation 060512
  • 12. An actionable segmentation enabled better value proposition and sales force design strategies & execution Needs & Buying Processes Global Accounts (10 strategically critical accounts) Program Buyer Systems Buyer (no / low sale) (>$500k in Pot.) Primary Decision-Maker Primary Decision-Maker Prospects Key Account Potential Program Buyer Systems Buyer Secondary Influencer Secondary Influencer Mid-market market Systems Buyer Systems Buyer Primary Decision-Maker Secondary Influencer (<$50k in Pot.) Accounts Small © 2012 ZS Associates − 12 − HBS_Moorman_Sales Force Transformation 060512
  • 13. A detailed review of sales force activities and effort allocations resulted in significant rationalization Maintain Increase Current Activities Decrease & Effort Stop Allocations Re-assign New © 2012 ZS Associates − 13 − HBS_Moorman_Sales Force Transformation 060512
  • 14. Restructuring the sales force improved role clarity, coordination and accountability – while reducing redundant work Strategic • Named global accounts & key Project Accounts accounts Engineer Manager • Executive sponsorship program (Global, Key & (Global & Key Mid-market • Elevated support levels accounts) accounts) • Mid-market customers and global / • Technical due Field Sales key account affiliates diligence, order (Mid-market • Grow under-penetrated and prospect fulfilment accounts) accounts administration and coordination of account service & support • Senior PEs aligned Inside Sales against SAM accounts • Named small accounts (and some (Small geographically remote accounts) accounts) New roles © 2012 ZS Associates − 14 − HBS_Moorman_Sales Force Transformation 060512
  • 15. Sales response analysis provided new insight into sales force value, optimal size, and optimal allocation Revenue $ Impact Profit Contribution Sales Force Size © 2012 ZS Associates − 15 − HBS_Moorman_Sales Force Transformation 060512
  • 16. Territory optimization improved coverage and goals fairness 2.2 2.0 1.8 Territory Workload (FTEs) Be Heavy Territories = Lost Growth 1.6 fo re 1.4 1.2 Afte Acceptable Balance: +/- 20% 1.0 r 0.8 0.6 0.4 Light Territories = Wasted Resource 0.2 0.0 Territories Sorted by Target Account Workload (per Account Coverage Plan) © 2012 ZS Associates − 16 − HBS_Moorman_Sales Force Transformation 060512
  • 17. 2. Increase the impact of each and every sales call § Role pollution (more service than selling) 2. Increase the § Order takers (vs. proactive selling) impact of each and every § Features and price pitches Current sales call § Not calling on the front office (only the Situation manufacturing contacts) § Little attention to territory, account or call planning © 2012 ZS Associates − 17 − HBS_Moorman_Sales Force Transformation 060512
  • 18. A bottom-up / top-down approach proved to be an effective way to break through to the next level of sales process capability Early Experience Team Full-Scale Rollout & Accounts Hiring & Selection Process Refined Sales Processes & 360o Training Proof Competency Approaches Points & Model Coaching Process Advocates & Tools Role Expectations Performance Customized Sales Tools & Enablers Review Content Reward Systems © 2012 ZS Associates − 18 − HBS_Moorman_Sales Force Transformation 060512
  • 19. A “3-legged race” (vs. “baton hand-off”) proved to be a powerful approach for developing winning value proposition strategies and enablers “For companies looking to maximize manufacturing performance, we provide the leading solution, helping to lower overall costs and minimize business risk” Leading technical Lower total cost of Reduced business solution ownership risk • Leading technologies and • Reduced production costs: • Leading provider, with global innovations manufacturing, sales and –High up-time and service footprint • Broad product portfolio reliability addressing spectrum of • Industry leadership in –High quality applications, from simple to technical due diligence and highly complex –Minimized waste design, minimizing implementation risk and • Tailored solutions to meet –Lowest running costs quality issues specific application needs • Streamlined product • Industry leading warranty fulfillment process programs • Rigorous project management and fulfillment © 2012 ZS Associates − 19 − HBS_Moorman_Sales Force Transformation 060512
  • 20. A new class of sales tools proved instrumental in motivating and enabling effective value-based selling Key Sales Process Enablers Value proposition tools: Other Sales process enablers: • Baseline market offerings & • Pre-call planning template value proposition • Needs assessment checklist • Value proposition communication tool • Prospect lists • Cost-in-use calculator • Account review presentation template • Competitive offerings comparison (Fighting guide) • Account planning template © 2012 ZS Associates − 20 − HBS_Moorman_Sales Force Transformation 060512
  • 21. Training was critical. Apprenticeship was even more important. Coaching is the secret sauce. Bi-weekly Sales Activity • Review pipeline activities (penetration, retention & acquisition) Meeting • Review account targeting Tactical+ • Agree on & review “Top 5” opportunities (1st: 30 min., conf. call) • Review account plans & next steps on “Top 5” opportunities (2nd: 60 min., face-to-face) • Resolve issues Quarterly Performance & • Performance review & feedback Territory Plan Review – Performance to goal Strategic – VBS capabilities (90 min., face-to-face) – Personal development plan • Win/loss reviews • Assess & agree territory & pipeline development plan • Review account plans for top priority accounts Rep Rides Review/coach: • Call planning Tactical Top 20%: 3x/Qtr • Call execution Mid 60%: 4x/Qtr • Value proposition development & communication Low 20%: 3x/Qtr • Sales process execution • Basic sales skills © 2012 ZS Associates − 21 − HBS_Moorman_Sales Force Transformation 060512
  • 22. 3. Instill a performance focused and accountable sales culture § Pockets of complacency 3. Instill a § Account hoarding performance focused and § Inconsequential goals accountable Current sales culture § Tolerance of poor performers Situation § No common sales culture © 2012 ZS Associates − 22 − HBS_Moorman_Sales Force Transformation 060512
  • 23. Rate-gate incentive plans and new metrics drove greater pay for performance relative to critical objectives Goal based component = 80% Management by Objectives (MBO) = 20% SAM FS IS PE SAM FS IS Payout curve 250% Performance vs. expectation % of target payout 200% Metric Below Meets Exceeds New product sales 150% Pricing 100% Strategic account 50% conversion (SAM only) 0% 50% 100% 150% Goal attainment (%) © 2012 ZS Associates − 23 − HBS_Moorman_Sales Force Transformation 060512
  • 24. Performance reporting, including ranking, proved to be tremendously motivating Sales Dashboard June 10, 2010 John Smith © 2012 ZS Associates − 24 − HBS_Moorman_Sales Force Transformation 060512
  • 25. Competency models aligned to the sales process increased relevance and impact Level Dimensions Pre-Basic Basic Intermediate Expert General 1. Territory and pipeline management 2. Account Planning 3. Call planning 4. Accountability and performance focus All Roles Sales Process Focus 5. Customer needs & opportunities assessment 6. Market offering / value prop development 7. Value prop communication & proof 8. Negotiations & solution agreement 9. Implementation management 10. Value reinforcement / account management KAM/SAM/GAM 11. Team leadership & coordination 12. Internal impact Role Specific First Line Manager 13. Coaching & Apprenticeship (1-10 above) 14. Hiring 15. Performance management 16. Translating business strategy to team 17. Motivating the team © 2012 ZS Associates − 25 − HBS_Moorman_Sales Force Transformation 060512
  • 26. Sales leadership was disciplined. No warm body placement or hiring. © 2012 ZS Associates − 26 − HBS_Moorman_Sales Force Transformation 060512
  • 27. Currently tracking significantly above plan, in large part driven by SFE initiative SST Business Case CAGR 10% Projected +2% share 28%* point growth and 7% +28% revenue growth for 2010: • ~15% revenue growth driven by market recovery Base Case Forecast • ~13% revenue growth driven by market share gains (from historically SST Forecast flat to declining share position) Actual 2009 2010 2011 2012 SST Business Case Projected Share Increase 1.1% 2.1% 2.4% 1-yr ROI 20% 125% 158% 3 Year Discounted ROI 93% 262% 315% * Projected based on 2010 actuals through mid-September © 2012 ZS Associates − 27 − HBS_Moorman_Sales Force Transformation 060512