Developing a 360o Sales Force

Developing a 360o Sales ForceJohn Sabino, SVP - Ad Sales

Tiran Dagan, Director – Strategic Initiatives & Analysis

2

About The Presenters

Tiran DaganDirector/Engagement Leader

Strategic Initiatives & Analysis Responsible for executing

the deployment of process improvement efforts and digital strategies across Media Works, News & Studio Operations business units.

Six Sigma Master Black Belt & Certified Agile PM Scrum Master

Prior roles in strategy, operations & technology in financial services & healthcare

MBA from Tel-Aviv University, B.Sc. In Artificial Intelligence & Mathematics from SUNY

John SabinoSenior Vice PresidentCommercial Excellence & Operations

Responsible for simplifying sales and operational processes across all distribution platforms and for the creation & deployment of enterprise sales initiatives across NBCU Ad Sales.

Prior roles at GE Energy supporting corporate initiatives, marketing, and sales.

MBA from the Marshall School of Business at USC, B.Sc. from West Point Military Academy.

Junior Officer Leadership Program after serving five years in the U.S. Army as an Armor Officer.

3

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Joint Venture - GE (80%)/Vivendi (20%)

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Ad Revenue $6b (2007)Click to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Over 15 cable & TV properties

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Strong digital presence (iVillage, NBC.com, MSNBC.com, CNBC.com, Hulu)

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Siloed activities & communication channels

About NBC Universal (NBCU)

4

Strategic Initiatives & Analysis

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Origins in the GE quality organizationClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Focus on driving change

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Cross discipline team, two coastsClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Consultative approach

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level No charge to P&LClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Lean & Six Sigma as means, not an end

“We've been aggressively trying to migrate away from talking about tools and instead to talking about outcomes... Six Sigma is a tool. It is a wonderful tool, but it is a tool…the two outcomes we really want are product reliability and customer responsiveness. “

Gary Reiner, GE CIO, CNN Money, 7/21/2008

5

SIA Framework: Lean AWO

Kick-OffDefine

Scope

Collect

Data

Determine Participants Lean Training

Kick-off with leadership and other key participants

Collect Voice of the Customer data and understand customer value

Define objectives (including growth transfer function)

Define scope (which business, which process)

Define leadership structure and process owners

Begin logistics arrangement and agree on participants

Collect existing process maps

Define baseline business data

Begin data collection for existing process

Complete process data collection

Finalize participant list and remaining logistics

Conduct training on lean concepts

Complete VSMs

Complete problem & objective statements for AWO events

Develop 9 month Action Work Out calendar

Finalize Action Work Out teams

Complete initial Action Work Outs (3-6 teams)

Continue to complete Action Work Outs to reach future state goals

Lean EngagementConsulting Engagement

Planning:

Scoping &Prioritization

Discovery &Strategy

Staffing

Approval

Stakeholder Management

Team Management

Kick-OffExecutionFinal

Report-out Closure:

QuantifyValue

ProjectReview

Measure & Validate

Report

Project Management

Program Integration

TollgatesSchedules and Timelines

Communications PlanRisk Management

Scope Control

Conflict / Issue Resolution

Change ManagementVendor Partnership

Implementation Plan

SIA Project Delivery Framework 1.0

Follow on AWOs

Lean Work

Out Week

6

The Ad Sales Evolution Initiative

7

Business Case

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Properties, redundant functions and tie this in with ability to deliver/manage an audience not just ads

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Reduce customer facing defectsClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Inflexible process

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Fragmented audienceClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level High internal costs to manage

From ad to audience

8

Overcoming a Fragmented World

Property 1

Sal

es

Property 2 Property 3 Property 15

Pri

cin

g

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

High cost / confusing service model

9

Ad Sales Value Chain

Programming & Research

Ratecard

Dev.

Inquiry to

Order

Contract

MaintenanceTraffic Billing

Project Scope

What the customer feels

10

Opportunities Across Entire Value Chain

• Reduce credits due to inaccurate delivery

• Improve customer satisfaction survey results

• Improve collection rate and reduce DSO

• Reduce revisions to contracts

• Reduce cycle time to close a plan

• Reduce defects during early plan negotiations

• Increase revenue opportunities

Inquiry To Order (ITO)

Order To Remittance (OTR)

Cu

sto

mer

Customer behavior:

• Lead time

• Completeness & Accuracy <provide examples>

11

Billing & Collections

Research

Traffic

Sales

CRM (Account Management)

Produce Great Content

Reposition Assets

Consumer & Advertiser Insights

Cultivate Consumer Communities

New Platforms & Business Windows

Expand Internationally

Growth

Pla

ybook

Programming & Development

Pricing & Planning

Pricing & Planning

Co

re E

nte

rpri

se

Pro

ce

ss

es

/ F

un

cti

on

s

Properties

Te

lem

un

od

/Mu

n2

NB

C.c

om

Cab

le/N

etw

ork

Ne

ws

TV

N

etw

ork

Bra

vo

, S

leu

th &

Ch

ille

r

US

A /

Sc

i-F

i

RatecardDevelopment

Programming Research Inquiry to Order Contract Maintenance CommercialOperations

Billing

12

“Lean First”

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Establish Metrics & visibilityClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Create a repeatable, standardized Process

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Drive Organizational change (sales force, P&P teams, etc)

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Implement supporting Systems & TechnologiesClick to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Create ability to sell across properties and

platforms

The vision of Enterprise sell

13

Phase I: As-Is VSMs

Oct Nov

Initiate

Needs Assessment General Discovery Sponsorship Scoping Approval

Project SOW & Deliverables

Oct 15

Update

Plan

Detailed Planning

Staffing SOW Creation Approval

Pre-Kickoff10/16

Dec Jan Feb

Mar 14

Monitor action plan for 60 days

Complete hand-off to IT for requirements development

Report out to management

SIA Close

Update

UpdateUpdate

Update

Update

Update

March

NBC NetworkTraining: Jan 11th

Event: 14th, 16th & 17th

Telemundo, Mun2 Training: Jan 18th

Event: 22nd, 24th, 25th

Cable News (CNBC, MSNBC)Training: Jan 23rd Event: 1/28, 1/30, 1/31

Digital (nbc.com) Training: Jan 29th Event: Feb 4th, 6th, 7th

Share Current StateParticipation: all 6 groups: Event: Feb 19th, Feb 20th

Design Ideal State Participation: all 6 groups: Feb 26th, Feb 28th

Drilldown Future StateParticipation: all 6 groups: March 5th, March 7th

Update

Execute

Interviews Identify key

metrics Walk the process Data Collection Participant list Logistics

confirmed

USA, Sci-Fi, Oxygen (TBC)Training: Dec 7th Event: 10th, 12th & 13th

Bravo, Uni HD, Sleuth, Chiller Training: Dec 14th

Event: 17th, 19th & 20th

Update

Detailed As-is current state map

Parking lot, big ideas, opportunities

Quick win fixes

High Level process map

Process Groupings

Detailed future state process maps with Inputs & OutputsAction Plans

Execute

6 Current State Mapping Events

Future State Development

6

Project EndProject Start

5

42

31

14

Kick-Off: A Shared Vision

15

Process Mapping

16

Metrics, VA & Pain Points

17

Digitization

18

Report To Management

19

Page 3

USA/Sci-Fi

Jan Feb

Jan 1

Mar Apr

Apr 15

USA, Sci-Fi, Oxygen (TBC)

AE Training for Deal Header requirements

Sales Asst. Training

Communication of Client Upgrades

Stewardship cycle time

Streamlined process for oversell

Convert time standard in Gabriel

Convert “Hold”deals to “Order”

Benefits

~ 15 minutes per deal for planners

Minimal tangible benefits

~ 10 minutes per deal for Sales Assistants

Minimal tangible benefits

Minimal tangible benefit but still helpful for system users

Minimal tangible benefits

~ 1 hour per deal

Status: Team still working on this project

Status: Effort to implement outweighed benefits

Status: Effort to implement outweighed benefits

Status: System Limitation

Acti

on

Pla

ns +

M

on

itori

ng

Work

ou

t W

eb

sit

e –

Daily U

pd

ate

s

Nig

htl

y T

urn

aro

un

d o

f V

SM

s

Dic

tion

ary

of

term

s

Deliverables

Rou

nd

-Rob

in P

riori

tiza

tion

of

Solu

tion

s

20

Developed A Process Model

Legend

#.# [Name]

inputs outputs

Output 1Input 1

Input 2

Input 3

Input 4

Output 2

Output 3

Legend

Ad Sales Process Model

2. In

quiry

to O

rder

3. C

ontr

act M

aint

enan

ce1.

Rat

ecar

d D

evel

opm

ent

1.1 Process Ratecard Inputs

1.5 Analyze, Test, Finalize & Publish

1.2 Prep Ratecard 1.4 Build Ratecard1.3 Price Added Value

Ratecard

PackagesSelling Schedule

Program Ratings/Est

Program Demo

Selling TitlesProgramming Grid

Program Ratings/Est

Program Demo

RatecardAdded Value

Normalized CPMs

Selling Estimates

Target CPM

RC Bump

Last Year RC

Live/C3 Adjusts

Makegood Ratecard

Normalized RC

Add Val Sellin

g Titles

Add Val Daypart A

ssigns

Updated Estimates

Selling Estim

ates

RC BumpLeveled CPMs

Sponsorship Oppy’s

Selling Title

s

Pricing Unlock

Price Breakouts

Show Groups

Makegood Est.

Quarterly Ratings

Output

Output

Output

Output

Output

Output

Output

Output

Input

Input

Input

Input

2.1 Register Budget

Output

Output

Output

Output

Input

Input

Input

Input

2.3 Determine Value Added Marketing

Elements

Output

Output

Output

Output

Input

Input

Input

Input

2.6 Move Deal to Hold

Output

Output

Output

Output

Input

Input

Input

Input

2.6 Negotiate with Client

Input

Input

Input

Input

2.5 Build Initial Plan

Input

Input

Input

Input

2.7 Move Deal to Order

Output

Output

Output

Output

Output

Output

Output

Output

Input

Input

Input

Input

3.4 Execute Marketing 3.5 Price Adjustments

Output

Output

Output

Output

Input

Input

Input

Input

2.2 Create Deal Header

Output

Output

Output

Output

Input

Input

Input

Input

Input

Input

Input

Input

2.4 Provide Guideance to Planner

Output

Output

Output

Output

Input

Input

Input

Input

3.1 Re-Expression

Output

Output

Output

Output

Output

Output

Output

Output3.2 Splits/Allocations

Input

Input

Input

Input

Output

Output

Output

Output

Input

Input

Input

Input

3.3. ADU/Makegoods

Output

Output

Output

Output

Input

Input

Input

Input

3.10 EDI

Output

Output

Output

Output3.9 Options (Credit)

Input

Input

Input

Input

Input

Input

Input

Input

3.8 Options/Relief)

Output

Output

Output

Output

Output

Output

Output

Output

Input

Input

Input

Input

3.6 Maintain Makegood System

21

Process Gap Analysis

Ratecard Business Model

TV

NB

ravo

US

A/S

ci-

Fi

Ma

ste

r R

ate

ca

rd

Mo

de

l

1.1 Process Ratecard Inputs

1.3 Price Added Value 1.4 Build Ratecard1.5 Analyze, Test, Finalize & Publish

Packages

1.1 Process Ratecard Inputs

Programming Grid

Program Ratings/Est

Program Demo

Promos

Programming Grid

Program Ratings/Est

Program Demo

Promos

Ratecard

1.2 Prep RatecardNormalized CPMs

Selling Estimates

Target CPM

RC Bump

Last Year RC

Live/C3 Adjusts

1.1 Process Ratecard Inputs

Programming Grid

Program Ratings/Est

Program Demo

Promos

Selling Schedule

Program Ratings/Est

Program Demo

Selling Titles

1.2 Prep Ratecard

Selling Schedule

Program Ratings/Est

Program Demo

Selling Titles

1.2 Prep Ratecard

Selling Schedule

Program Ratings/Est

Program Demo

Selling Titles

1.5 Analyze, Test, Finalize & Publish

Ratecard

Last Year RC

Live/C3 Adjusts1.4 Build Ratecard

Added Value

Normalized CPMs

Selling Estimates

Target CPMRC Bump

1.5 Analyze, Test, Finalize & Publish

Ratecard

Last Year RC

Live/C3 Adjusts

1.3 Price Added Value

Packages

1.3 Price Added Value

Packages

1.4 Build Ratecard

Added Value

Normalized CPMs

Selling Estimates

Target CPMRC BumpQuarterly Ratings

Quarterly Ratings

Quarterly Ratings

1.1 Process Ratecard Inputs

1.5 Analyze, Test, Finalize & Publish

1.2 Prep Ratecard 1.4 Build Ratecard1.3 Price Added Value

PackagesSelling Schedule

Program Ratings/Est

Program Demo

Selling TitlesProgramming Grid

Program Ratings/Est

Program Demo

RatecardAdded Value

Normalized CPMs

Selling Estimates

Target CPM

RC Bump

Last Year RC

Live/C3 Adjusts

Quarterly Ratings

22

Ratecard Dev

Inventory

Pricing

Sales

Planning

Billing

“Future State”

Clearly understood client contact, 360o-Sell

Property 1 Property 2 Property 3 Property 15

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Sal

esP

rici

ng

Pla

nn

ing

Bill

ing

Rat

ecar

ds

Inve

nto

ry

Commercial Excellence

Commercial Excellence

24

Realized Benefits

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Organizational Benefits Mobilized organization around top clients Clearly defining terminologies Normalizing & standardizing processes

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Utilized CRM application to quickly & efficiently share critical client information

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Streamlined process steps to productively share transactions

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Pre-defined target base for NBCU initiatives (Women@, Health & Wellness)

Click to edit Master text styles• Second level

- Third level Fourth level

› Fifth level Linked incentive plan to business goals (360 sell)Click to edit Master text styles

• Second level- Third level

Fourth level› Fifth level Sophisticated customer analytics for enterprise sales

decisioning

Quick, accurate customer value delivery

25

New Enterprise Sale Process

Use market data, research and analytics to develop a target list of clients or initiatives.

Gain an understanding of the Client’s long term priorities

Create a custom solution utilizing NBCU’s array of assets.

Set up measurement tool and execute Client solution across all properties.

Monitor delivery and evolve solution as necessary.

Tested on a single enterprise account• Resulted in one Account Plan developed by cross-property AEs

• Two Big Ideas were developed and presented to address Client’s largest ’09 product launches

Next Step: Two enterprise accounts in 2009

Process Being Tested and Refined

26

Sales Systems

Mainframe Dealmaker Ideal

Operative

NBC Customer Data Warehouse

Gabriel WideOrbit

Enterprise VCI OSI

Post

Pri

or

• Single View of Customer (270 to 1 GM)

• NBC Sales, D&B, CMR, Research Data • Big Marketing Idea Workflow

• 6.5 Month GEN-1 Rollout

• Joint Account Ownership

• Wing to Wing visibility

• Independent NBCU Commercial Data Warehouse

• Transparency throughout the organization

Business Needs

Aggressive Timeline

All About the Data

27

Enterprise Selling

• Analytics to determine key accounts

• Defined tools, milestones and deliverables for each Enterprise step

• Accountability with sales leader

•Results in a coordinated “Go To Market” strategy

Created one complete Enterprise

process

•Develop a long-term account plan

•Structure Ad Solutions to address Client’s long-term needs

•Create sticky “Big Idea” Creative Marketing solutions

• Allows for clear NBCU resource allocation

•One view of the Client

•A place to capture all contacts and learnings about the Client

• Clear understanding of the impact of the Enterprise process

Operationalized Through Sales

Systems

Empowering senior sales leaders to grow

strategic accounts

28

1

SIC Reporting – Live Dashboard

Usage

Meetings

Pipeline

Pipelineby AE

1

2

3

4

2 3

4

29

1 /GE Title or job number /

6/23/2008

The CorporateAccountsteam facilitates mutual growth with GE’s top suppliers.

• Develop Relationships w/ Commercial & Operating Leadership

• Gain Understanding of Mutual Initiatives & Growth Opportunities

• Facilitate Introductions Between Both Companies re: Key Interest

• Mutual Revenue Opportunity

• Multiple Business Opportunities

• Bi-Lateral Access to Senior Management

• Executive Sponsorship

Process

Success Factors

GE Corporate Accounts

Targets

Tata GroupMarshSAPNielsen MediaSASNASDAQ

ADPUS Golf AssocUS Tennis AssocDow Jones & CoWWEHPDell

Analyze (Sourcing Spend): Determine Relationships:

Track ROI – Salesforce.com

Account Targeting

30

APPENDIX

31

Synopsis

In the first quarter of 2007, NBC Universal’s Strategic Initiatives & Analysis (SIA) in conjunction with Ad Sales Commercial Excellence Team launched a major transformation initiative to streamline sales processes across eight cable, TV and digital properties. Recognizing new market needs, NBCU’s new strategy and resulting capabilities created a strong platform for growth and a shared vision across a traditionally silo organization. In this sales operations case study we will explore the cultural challenges facing SIA and the use of simple yet powerful process improvement tools and methods to drive ground-breaking change. Furthermore, we will share some of the strategic changes that NBCU is making to transform its advertising sales models to create new value for its customers and the required cultural, organizational, and process changes that are underway to unlock future commercial opportunities.