Smarter Salesforce Getting the Right Behaviour · Business Strategy Achieving Target Growth Maintaining Profitability Launching New Products ... Robust Design Process Design Out Unintended

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Smarter Salesforce

Getting the Right BehaviourJune 18 2015

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How Difficult Can It Be?

330BC

2000

1979Mid 1800s

2010

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SUCCESSFUL IMPLEMENTATIONIntegration and Technology

UNDERSTANDING THE CHALLENGERecognising the Customer’s Perspective

GREAT DESIGNPrinciples, Process and Challenge

on how to incentivise for growth.3 Key Areas :

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What is Keeping Us Awake At Night?

Business Strategy

● Achieving Target Growth

● Maintaining Profitability

● Launching New Products

● Cost of Incentives

● Cost of Spiffs

● Low lead Conversion

● Demotivated Salesforce

● Payout disputes

● Salesforce Turnover

Cost Motivation

£!

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The Market Growth Tug O’ War

Jan. 2015 Forrester report: “Grow Your Revenue Stream With Customer-Centric Finance”

Company

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Changing Customer Perspective

Customer Buying Process

Crowded Market Place

Regulation

What you can sell,

How you can sell it,

What rewards you get for selling it

Smarter buyer,

Complex selling process,

Channel partners

Differentiation,

Value Proposition,

Relationship

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Principles - Based

Approach GREAT DESIGN

Robust Design

Process

Design Out Unintended

Consequences

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What Does Great Look Like?Best-in-Class companies experience this:

2XQuicker Sales37%

Faster Growth

Shorter Sales Cycles

36%Lower Turnover25%

More Sales Reps Making Quota

7%

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When Poor Design Drives Wrong Behaviour?

Driving Wrong

Behaviours

Too Complex Company Strategy

Mismatch

• Wrong paymix

• No cross selling

incentive

• Caps used

• Spiffs

• Too many plans

• Too many metrics

• Complex rules

• Sales credit in

wrong place

• No collective metric

• Too many people

get credit

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High Tech Case Study

the PROBLEM

theSOLUTION

• Great product

• Business unprofitable

• Incentive weighted too much towards

individual

• Incentive redesign

• Important qualifier around company

profitability

Business returned to

profitability

Stronger focus on

team selling.

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Principles-Based Design

Motivational

Behavioural

Organisational

Link to Company Goals

Measurability

Flexibility

Role Accountability

Team Alignment

Simplicity

Pay For Results

Significant Opportunity

Pay Differentiation

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Designing for Success

•Understanding corporate objectives

•Plan performance analysis

•Stakeholder views

•External Benchmarking

•Design Principles

•Implementation Plan

Diagnostic Review

•Options Development

•Options Modelling

•Draft Design

•Stakeholder Testing

•Impact Analysis

Design•Finalize Plan Design

•Communicate

•Deliver delivery processes e.g. quota setting, territory alignment

Implement

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What Does Great Look Like?

Low Performers

A few may make it,

includes new starters

• More frequent

targets/incentives

• Social Pressure

Core Performers

The group that

can best move

the needle

• Tiered

commission

• Prizes

High Performers

Will always beat

target

• Overachievement

incentives

• No caps

Low

Performers

Core

Performers

High

Performers

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Misselling

Unintended Consequences #1Failure to understand the big picture

Low Bonus

Based on

Customer

SatisfactionGo for Growth

High

Commission %

Based on

Product Sales

Value

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Get low risk

sales

behaviours or

lack of interest

from salesforce

Unintended Consequences#2Wrong Paymix

Company

wanted Growth

and to control

costs

Incentive

Opportunity too

low

Growth target

not met

Have to recruit

Hunters leading

to higher overall

cost of sale

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Quotas and Territories

The goal, the WHAT we are trying to achieve and

WHERE are we going to achieve it

Successful Implementation

TechnologyHOW are we are going to

recognise achievement

Incentive DesignHOW we will pay, motivate,

drive performance for achievement

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Technology Can be Complex!

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So, Why Automate?

Risk/Cost Reduction

Strategic

Performance

Operational Capability

Increased Salesforce

Engagement

Increased Business

Flexibility

Effective Integration

with Other

Technology

Tangible Less Tangible

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Automation Gives You a Competitive Edge

Performance Visibility

● Sales Rep can calculate

outcome

● Sales Manager can focus

coaching

● Execs make the right strategic

calls

● Accurate payout

● Fewer disputes

● Focus on selling

● Virtuous Circle of Credibility

● Development link

● Flexibility to Adjust

Selling Focus Sustained Motivation

£ !

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purchase

selectingplanningconsidering implementing expanding transforming

Business Case

Scoping

Preferred approach

Future State Design

Vendor

Selection

Change

Readiness

Change

Management

Future State

Delivery Plan Design

Iterations

ROI Realization

uncert

ain

tyopportu

nity

Path to Operationalizing Plans

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the PROBLEM

Pharma & Medical Devices Case Study

theSOLUTION

• Plan Design Framework to

accommodate all roles

• New Territory Alignment

• Quota Setting to provide realistic

challenge

Providing research, development, production of bio-tech and pharmaceutical

drug therapies.

• Needed to adapt to changing

market and customer landscape

• Shift to a customer driven focus

and team behaviour

• New sales organisation

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BEHAVIOUR IS THE KEY!

1. Understand the Challenge

2. Use a Principles-Based Design Approach

3. Implement for Success

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ContactInfo

Jon ClarkStrategy Services Director EMEA

[email protected]

+44 (0) 7768 558771

from strategy to success.

Documents

Smarter Salesforce Getting the Right Behaviour · Business Strategy Achieving Target Growth Maintaining Profitability Launching New Products ... Robust Design Process Design Out Unintended