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S D M001 Sechrist 091707


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    • 1. Supercharge Sales Results by Optimizing Quotas, Territories, and Incentives Robert Youngjohns, CEO Paul Turner, Product Marketing Sales: Million Dollar Producer
    • 2. Safe Harbor Statement
      • “ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
      • The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
      • Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at ., inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
    • 3. All About Callidus Software Callidus Software, Inc. provides sales performance management (SPM) and enterprise incentive management (EIM) software systems worldwide
        • INDUSTRY : Software
        • EMPLOYEES : 350+
        • GEOGRAPHY : Global
        • # USERS : 1.7million
        • PRODUCT(S) USED BY : Sales operations, Finance, Sales team
    • 4. Agenda
      • The need for Sales Performance Management
      • Business challenges
      • Effective quota setting
      • Territory optimization
      • Incentive management
      • Wrap up
      • Q&A
    • 5. How much is your organization losing in “lost opportunity” revenue?
      • How does your company manage territories, quotas, incentives and sales reporting and analysis?
      • Callidus Sales Performance Management maximizes sales and incentive effectiveness
      Why Callidus Sales Performance Management?
    • 6. The Need for Sales Performance Management “ Through 2010, on average, enterprises will miss the equivalent of at least 10 percent of total annual sales in "lost opportunity" revenue that could have been captured with improved processes for defining, assigning and managing territories, quotas, and incentives and compensation plans. 0.8 Probability” Gartner Presentation, “Exceeding Targets with Sales Performance Management” by Michael Dunne, Sept. 11-13, 2006.
    • 7. 40 Million Salespeople, $1.5 trillion in spend
      • Nearly zero visibility for managing the investment
      What is your organization’s sales spend? Is it getting its money’s worth for that investment? Are your sales incentives and programs producing the desired results? Do you know when you’ve taken the right action?
    • 8. Sales Performance Management
      • Optimize, Analyze
      • Improve, Align
      • Who are my customers?
      • How do I allocate them to sales territories?
      • What resources do I have?
      • What are their capabilities?
      • What targets should I set?
      • How do I get the targets out quickly?
      • How do I set motivational incentive plans?
      • How do I change plans quickly as markets and/or products change?
      Territory Talent Analytics Incentives Targets
    • 9. ROI on spend Three Layers of SPM Value Significant 10+% 5+% Strategic Acceleration
      • Drive revenues
      • Gain competitive advantage
      Sales Force Effectiveness
      • Action on analytics
      • Quota & territory planning
      Incentive Compensation
      • Pay fast & accurate
      • Handle complexity & change
    • 10. Customer Results Achieved: Visibility Planning Execution Sales and Incentive Performance CSAA can now launch a product in 3-6 months vs. 6-9 months $5M in overpayments eliminated, and more than $15M in increased revenue (Major telecom provider) Channel Retention Eliminated 80% of Disputes from channel of 25,000 distributors and suppliers. CUNA Mutual has realized hard dollar savings of $900,000 per year.” Sales Productivity > 60,000 sales days recouped over 2 years by lowering shadow accounting (Major telecom provider) “ Callidus has enabled us make sound strategic decisions as we are by identifying factors that motivate our sales team” “ We are driving a cultural transformation in our sales organization” Loan production up 450% “ We can align incentives more closely to our channel objectives.”
    • 11. Sales Performance Management Defined Sales Performance Management: Going Beyond Incentive Compensation Michael Dunne Accounts Contacts Sales Cycle Execution Prospect Qualify Solution Close Negotiate Sales Enablers Leads Content Config./Quote Order Propose Monitoring/Reporting/Analytics Territory Mgmt. Accounts, Resources, Hierarchies Quota Mgmt. Revenue & Margin targets; New business Sales ICM Commissions, Bonuses, Accelerators
    • 12. Territory and Quota Setting
      • Opaque
      • Seniority
      • Politics
      • "Gut feeling"
      • Ad hoc
      • Misaligned
      • "Gut feeling"
      • By executive dictate
      • Budgeting
      • Politics
      • Not reflective of demand
      Territory Allocations Quota Assignments
      • Transparent
      • Fact-based
      • Comprehensible
      • Achievable
      • Reflect responsibilities
      • Meaningful
      • Transparent
      • Logically determined
      • Balanced
      • Equitable
      • Reasonable opportunity
      • Optimize coverage
    • 13. Quota Setting Business Challenges Challenge Solution
      • Align sales with corporate goals
      • Derive and communicate top level target
      • Set quotas based on business need
      • Top-down, Bottom-up and Bi-directional
      • Utilize different business drivers
      • Historical Sales, Territory Potential, Growth, Sales Effectiveness
      • Manage and monitor approvals
      • Hierarchy Level Rules, Workflows
      • Communicate Quotas and Attainments
      • Web or Excel enabled quota setting and dashboards
      • Minimize confusion and ambiguity
      • Standardized templates and guided workflows
      • Integrate with revenue and comp systems
      • Integrates with TrueComp and supports multiple data sources
    • 14. Quota Setting Flexibility Across Multiple Measures Allocate Quota Using Multiple Measures Customer Type (New, Existing, Strategic) Sales Volume Profit Margin / Price Realization Product Mix Multiple Quota-based with Accelerators Key Strategic Objectives (KSOs/MBOs) Market Share, Customer Satisfaction
    • 15. Analyze Attainment, Future Opportunity Key Takeaways
      • Exception highlighting show underperformance and over performance areas
      Identify seasonal trends in accounts
    • 16. Plan Quotas Against Sales Goal Key Takeaways
      • Uplift or downlift quotas, or bring forward existing quotas and add weightings or seasonality to them
      • Compare scenarios side by side and select the best one
      • Centralized business rules easy to update, rather than locked away in multiple spreadsheets etc.
      • Have multiple targets based on optimizing product mix, account performance etc..
    • 17. Adjust Quotas and Add Audit Trail 25,572 324,565 12,878 Key Takeaways
      • Provides immediate feedback on what-if scenarios
      • Can be performed in the Web or Excel client
      • Can be performed in off line mode for traveling sales manager
      • Can add supporting detail for to any change to ensure a change log its kept
      • Greg is able to adjust his current targets for his teams accounts, and uplift them. For example, he has uplifted Finance Bank New York by 25%, and Comp Shop Texas by 20%, given last years over attainment. He can immediately see the impact on the overall target, and how it is closing the gap against the management target
    • 18. Reconcile Against Sales Goals Key Takeaways
      • Identify key variances against top level goal
      • Re model and create new scenarios as necessary
    • 19.
      • Major realignments
        • Creation, expansion or reduction of sales force
        • New product mix, new target, new indication
        • New competition
        • Mergers, consolidations
      • On-going maintenance
        • Align to new business conditions as reflected in data updates
        • New customer acquisition
        • Personnel situations
        • Territory management
      • “ What-if” analyses
        • Different strategy
        • Plan variations
      Situations that Require Territory Realignment
    • 20. Efficient Territory Optimization Key Takeaways
      • Leverage any metric or attribute to create balanced territories
      • Territories can be account based or area based, a combination of both; i.e.. Rep A has all the ‘red’ zip codes with the exception of one named account
      • Users can view accounts, territories centers, values of areas, highways, etc… to design the most effective territories
    • 21. Key Takeaways
      • “ What-if” modeling – Users can simultaneously view several possible solutions for comparison
      Model and Balance Territories Based on Key Drivers Users have the ability to dial-in the relative importance of territory balance, geographic compactness and level of disruption when evaluating optimized scenarios.
    • 22. Incentives Drive Financial Performance Brand Management Motivating and Rewarding People Customer Service Turning Customer Info into Insight Attracting and Retaining People Building Selling and Service Skills Strong Value Propositions Partner and Alliance Management eCRM Sales Planning Key Account Management Advertising Customer Retention and Acquisition Managing Product and Service Mix Promotion Ability to Change the organization New Products and Services Segmentation Building Service Culture Channel Management ¹ Accenture CRM Research Potential Dollar Impact in $M on Pre-tax Profit of Moving from Average to High Performance for $1Bn Business Unit - Accenture CRM research 1.5 13.0 13.0 12.0 10.0 9.5 9.0 9.0 8.0 7.5 6.0 5.5 5.0 3.5 2.5 2.0 3.0 5.0 5.0
    • 23. Pay for Performance from Everyday Dashboard
    • 24. Detail to Reduce Shadow Accounting
    • 25. Gain Summary View of Sales Performance, Incentive Opportunities
    • 26. Monitor Key Metrics
    • 27. Monitor Team Performance, Opportunities to Change Behavior
    • 28. Leading Enterprises are Integrating SPM solutions Insurance Banking Telecom High Technology Life Sciences
    • 29. Continued Integration with to Drive Customer Value “ As a customer of both Callidus Software and, we are pleased that the two solutions are becoming more fully integrated. With this integration, our sales representatives and sales executives will be able to view strategic sales force automation and sales performance management information together .” John Graham Executive Vice President Global Sales and Services at UGS PLM Software, a division of Siemens Automation and Drives .
    • 30. Summary: Why Callidus On-Demand SPM?
      • Flexible
        • <60 days to go live
        • Make changes any time
      • Scalable
        • Proven multi-tenant grid processing for scalable performance
      • Reliable
        • 99.5+% availability exceeds industry standard SLA’s
      • Safe
        • Type II SAS 70 certified
        • Safe Harbor certified
    • 31. Sales Performance Management Leadership
      • Most deployed solution
        • Used by over 1.7 million sales professionals globally
      • Unmatched breadth
        • Plan spend, quotas, and territories
        • Execute timely and cost effective incentives
        • Deliver clear visibility through reporting and analytics to sales and finance
      • Seamless access from Salesforce
        • Deploy to sales organization through everyday Salesforce application
    • 32. Session Feedback Let us know how we’re doing!
      • Please score the session from 5 to 1 (5=excellent,1=needs improvement) in the following categories:
        • Overall rating of the session
        • Quality of content
        • Strength of presentation delivery
        • Relevance of the session to your organization
      We strive to improve, t hank you for filling out our survey.
      • Additionally, please score each individual speaker on:
        • Overall delivery of session
    • 33.