Sales Excellence does not describe a state, but rather a continuous process. The Kienbaum Sales Excellence Model provides guidance in this process. It serves on a theoretical, as well as practical level, as it guides through the ten fundamental components of sales. It has proven itself in practice as an analytical and optimization tool used in various industries and sales segments.
2. 2
Any sales department can sell great products – an excellent sales department can
sell any product
Importance of an effective sales approach
» According to our research, the presence of our identified
sales excellence elements leads to greater corporate
profitability and market share regardless of product
category
» In effect, the sales excellence system drives
corporate performance, not the product the
company sells
» Important and complex tasks, such as acceleration of
product innovation and new customer acquisition,
require multiple sales elements
» The Kienbaum sales model touches on all necessary
elements of an effective sales approach contributing to
an organization's success
Importance of Sales
Sales Excellence does not describe a state, but rather a continuous process. The Kienbaum Sales Excellence Model provides guidance
in this process. It serves on a theoretical, as well as practical level, as it guides through the ten fundamental components of sales. It has
proven itself in practice as an analytical and optimization tool used in various industries and sales segments.
3. 3
Our systematic analysis of all elements of an efficient organization will identify
the most important levers for its transformation
Elements of an effective sales approach
Source: Kienbaum
OperativeStrategic
PeopleCompany
ChangeManagement
Organization Management System
Voice of the Customer
Personnel Development
Processes & Systems
Management by
Objectives
KPIs and
Management Cockpit
Personnel Selection
and Diagnostic
Strategy
4. 4
Identify and prioritize action fields for successful transformation based on the
elements of the transformation process
Kienbaum Model: Elements of an effective transformation process
1. Assessment of strategic success potentials of individual business units (market attractiveness, competitive
position, and cost and capital structure). Derive strategic and operational areas of action (including sales
and marketing strategy, product portfolio decisions, focus segments, evaluating the attractiveness of
dealers, country portfolios etc.).
2. Recognize client satisfaction and client value as a company’s key success factor, and as foundation for the
development of effective functional strategies (e.g. sales and marketing management (e.g. service
differentiation, establishing effective key account management, developing the service business, etc.)).
3. Design market oriented structures, e.g. in Sales and Marketing, to reflect the complexity of the market within
the company and achieve maximum customer focus, to develop interface topics (e.g. centralized vs.
decentralized), and to guarantee the control of the business with respect to utilization of current and future
success potentials of the company.
4. Fill positions within the company based on competency profiles – leadership competences and expertise,
e.g. with respect to sales functions. Audit key executives of the different functional areas and develop a
strategy compliant competency profile for the employees of the company.
5. Ensure professional customer relationships through effective and efficient processes, supported by a
(CRM) system that is embedded in the company’s IT landscape and allows for highest transparency as well
as KPI generation for management cockpits. This supports and enables the proactive management of the
organization.
Strategy
Voice of the
Customer
Organization
Processes and
Systems
Personnel Selection
and Diagnostics
5. 5
KPIs and
Management Cockpit
Identify and prioritize action fields for successful transformation based on the
elements of the transformation process
Kienbaum Model: Elements of an effective transformation process
Management
System
Management by
Objectives and Incentive
Systems
Personnel
Development
Change
Management
6. Develop an effective KPI system for adequate management of the company, including early warning
indicators for timely control and intervention (e.g. establish management cockpit as decision making
platform for effective management of the company and the business units).
7. Establish and adjust target agreement and performance evaluation system (“management by objectives”)
in order to ensure achievement of the company’s defined targets. Establish or adjust financial incentive
system accordingly (e.g. with respect to salary, percentage of the variable compensation, etc.).
8. Establish a self-regulating management and control system (planning / reporting / meeting / evaluation
structure) based on the established KPI system, to achieve sustainability for the systems and activities
implemented. Develop a strong focus on implementation within the organization (deep structure) with
relevant management and controlling elements in place.
9. Develop competences within the company (e.g. how to effectively develop major accounts – key account
management or implementation of value pricing), to implement the customer oriented corporate strategy. E.g.,
strengthen sales competences along the company’s sales pipeline (e.g. acquisition of new customers, etc.)
10. Accompany the change process within the company to ensure sustainability (e.g. through highly effective
workshop formats and long-term auditing of the management system). Establish an effective
communication strategy to accompany the change process on all levels, from the owners to the
management/executive board to the employees.
6. 6
The design of a sales strategy follows a distinct set of categories, leading to a strategy roadmap.
As the basis of all sales activities, an explicit sales strategy should
be formulated
Strategic Roadmap
Profitability/
Liquidity
Market
Position
Attractiveness
Generate a minimum
return of 10 %
Customer Value as focus
of sales activities
Proactive management of
accounts payable &
receivable
Selective processing of
industries / product
segments
New distribution
channels and markets
Active management of
merchants
Employee development
by challenging and
supporting
Value Pricing to realize
competitive prices
Communication of
products
Internationalization
Innovation
Productivity
Increasing the
productivity of industry
sales department
Development of
standards for products
and modules
Use of an effective sales
management system
Expand and strengthen
current products
Targeted and controlled
use of synergies
Launches metered and
actively pursue
Focusing on a standard
range
Complete product
portfolio in defined
areas
P1
I1
M1
R1
P2
I2
M2
R2
P3
I3
M3
R3
P4
I4
M4
R4
A1 A2
Strategy
7. 7
Typical outputs of a customer value analysis are strategic & operative
guidelines for business development & are a basis for value pricing
Reporting options based on the customer value analysis as a basis for systematic prioritization
Determining the relative position compared to competitors and identify strategic and operational levers to optimize the
initial situation of the product and new innovations.
ProductServiceImage
Innovation capability
Product quality
Conformity to specifications
Technical reliability
System competence
Delivery reliability
Reaction time
Global footprint
Development partner
Quality of customer handling
Brand
Financial strength
Price - Quality
Sensitivity
Preis Qualität
Relative price
80% 120%100%
Ø
Weighting Evaluation
a) Strategic map
Analysis of the strategic
position compared to
competitors
b) Operative map
Analysis of operational
problems/opportunities in
comparison to competition
Relativeprice
Relative cust. satisfaction
+-
Competitor A
Competitor B
Distancefrommean
Weighting
+
-
Results
c) Outside-in vs. inside-out view
Categories Evaluation
Voice of
the Customer
8. 8
The development of a state-of-the-art organizational form follows
three steps
Approach to optimization of an organization
An optimized sales organization can be found with our standardized evaluation scheme.
Identify alternative structures Define evaluation criteria Evaluate alternatives and decision
Identify alternative organizational
forms regarding the targets:
» Sustainability
» Practicality
» Strategic framework
» Sales processes
» […]
Alternative organizational forms Standardized evaluation scheme State-of-the-art organizational form
Definition of organizational criteria
and discussion of weights:
» Transparency/Span of control
» Economic efficiency
» Velocity
» Quality and sustainability
» […]
Evaluation of the defined criteria with
the standardized evaluation scheme
» Comparison and discussion of the
(dis)advantages and of the
alternative organizational forms
» Decision for the preferred sales
organization
Performance
Span of Control
xx %
xx %
xx % […]
[…]
[…]
Organization
9. 9
Falling
High Achiever
High achievers with potential
Star
Talent
The basic structure of the competence model originates from the
involvement of different data sources
Diagnostics
Same level
long-term
Competence
Overwhelmed
high
Same level, more
responsibility or
new function
Next level in
2-3 years
Next level
short-term
low
Potential
Individual evaluation
» Analysis of the existing processes, tools
and management systems
» Consideration of existing internal
competences within the sales force and
organization
» Comparison with customer view on the
basis of the results from the customer
benefit analysis
» Development of a balanced synthesis
on the basis of different data sources
(existing competences, know-how from
Kienbaum experts and customer
requirements from focus interviews)
Competence Potential Portfolio
Group evaluation
Individual Competence Profile
Individual and group evaluation will be compared with the requirements of a new position.
Description
Run Business
Change
Business
Lead Others
Lead Self
Critical Dimension
Peer Group 1 = last 20% 2 = Below Average 3 = Average
4 = Above average 5 = Top 20%Individual
High achievers with
potential
Personnel Selection &
Diagnostics
10. 10
The sales process needs to focus on market segments
(customer needs) and follow the sales funnel
Sales Funnel and sales process
Sales-Controlling
Marketing Potential
Initial
Contact
Content
related
exchange
Offer
Negotia-
tions
Sale
Customer
Management
Lead-Development
Key Account
Mgnt.
J
N
J
N
J
N
J
N
J
N
J
N
N
J
Suspects Contacts Prospects Leads Customers Key Accounts
Sales Funnel Management helps to design and steer the sales process from Marketing to Key Account Management.
Processes and
Systems
11. 11
The technical requirements and system support need to be evaluated
CRM-Requirements and check
Check-up of existing CRM-System
Definition and
management of items,
prices etc.
Funnel- and pipeline
analysis
Visit and route planning
Email marketing
Linked to website
SalesMarketing
Maintenance planning
E-Service
Integrated analysis
Web-based
WorkflowsServiceGeneralCharacteristics
Definition and
management of data
basis
Address control
Elimination of redundant
contacts
Organizer
Bidirectional sync to
groupware applications
Managementofbusiness
contacts
Contact
Management
Mobiles CRM
MS-Outlook integration
CTI (Computer-
Telephony-Integration)
Influence on the core
business
Price and expense in
implementation
TechnicalCharacteristicsImplementation
The Sales Management System should be based on an easy to operate, highly transparent CRM-System which
provides high quality data for the required KPIs and dashboard that is embedded into the IT landscape.
Processes and
Systems
12. 12
Fully automated management cockpits with information push
functions support the logic of an effective management system
Examples of different management cockpits and information push systems
Heat Maps
Spread Analysis
Guidance and early
warning indicators through
colors
Different areas and charts for
different indicator clusters
KPIs &
Management Cockpit
The cockpits represent a form of high density information with drill down functions and offer an at a glance view of vital
data
13. 13
Successful incentive systems have to meet seven key criteria
Kienbaum criteria are suitable for rapid testing of different models
» Depending on grade, 20-40 % of compensation
variable
» Commission systems increasingly replaced
» Monthly orientation and payment of incentives leads
to sales dynamics
» Also applies to partial year-end payments
» 4-5 targets for success orientation
» Introduction of threshold value, standard value and
stretch value
» In case the target is clearly exceeded, payment of
above average bonuses
» Combination with goodwill regulations
» Multiply success methodically
» Rewarding and penalizing multipliers unfold
sustained methodical incentives
» Activity-guiding targets name desired behaviors
» Deduction from role and process models
» 20 % of sales reps stand for 80 % of the result
» Focus on top sellers excludes a tendency to
mediocrity
Monthly
incentives
B
Reasonable
targets
C
Exceed
targets
D
Reward
leadership
E
Guide
activity
F
Orient along
best performers
G
Reward
variably
A » Variability in different scenarios 13 %-26 % at 100 % TA
» Combination of commission & bonus
» High commission. featuring existing customers w/out incentive effect
» Monthly calculation & quarterly payment create proximity to transactions
» Quarterly payments create motivation peaks and level out seasonal variations
» Basically only 1 sales target for commission with 5 target elements defined for
bonus
» Lacking detailed design of general terms of bonus
» Lacking detailed design of general terms of bonus
» Previous systems show no or little incentives in case targets are exceeded
» Not yet concretely provided for leadership
» Sales behavior / qualitative factors comprised in bonus measuring
» Commission limited in activity guidance: higher the turnover gain, higher the
payment
» Exemplary targets activity-guiding in terms of main tasks
» Differentiation of targets in bonus not yet defined
» Amount of flat commission oriented along amount of previous-year sales
Ideal Model Typical Model
Management by Objectives
and Incentive Systems
14. 14
A successful Management Control System is designed as a closed
loop to steer the business
The PDCA cycle and closed loop management system
Strategic planning Operative planning Control Report
Weekly
Annually
Monthly
Wochen-
Meeting
Monthly report
Weekly report
Annual report
Weekly plan
Monthly plan
Annual plan
Vision,
Mission,
Strategy
Daily plan /
SIC
Daily meetingDaily
Annual
Meeting Minutes/
Action
log
Monthly
Meeting
Minutes/
Action
log
Weekly
Meeting Minutes/
Action
log
Daily
Meeting
Minutes/
Action
log
Strategy
Meeting Minutes/
Action
log
Act
Check
Do
Plan
» Plan - determine data-based targets (KPIs),
goals and objectives
» Do - work focused solely on the KPIs; if this is
not the case, revise KPIs
» Check - compare your results and
achievements against your targets
» Act - decide on corrective / remediate actions
In order to make the strategy implementation most effective, it needs to be integrated within the management system of
the business to permanently control for premises, activities and results achieved.
Management
Systems
15. 15
Based on potential profiles, training and development plans can be
designed on an individual and group level
Personnel development
Potential on individual level
» Reflection of the requirement's relevant
weighting with respect to different roles of
managers
» Implementation of role specific requirements
with the company-specific competency
model
» In addition to verifying current assessment
of potential, career recommendation will be
made with regard to possible management
roles
0
1
2
3
4
5
Business
Developer
People Manager
Change Manager
Innovation Manager
Expert
Project Manager
Converter
Consolidater
From the analysis and evaluation of both experience and expertise, a focus on relevant management roles can be
derived. This is the basis for the companies personnel development plan.
Description
Personnel
Development
16. 16
The individual employee has to be mobilized from day one to ensure
sustainability of the change and development
Change management
Background
» Different roles within the company
» Discrepancy in the level of
expectation and aspiration of the
management and the staff
» Different motivation groups block
the transformation (promoters vs.
skeptics/ those who resist)
Development phases
in change processes
Anger
Negotiate
Depression
Test
Accept
Integrate
Influence of the
“emotional
curve"
Symptom‘Compreh.' ‘Act'‘Ability' ‘Transform' ‘Want' ‘Know'
Mobilization of
the individual
employee
Confusion
Fear
False Start
Frustration
No Change
Chaos
/
/
/
/
/
/
Capa-
bilities
Action Plan Resourses Incentives
Infor-
mation
Infor-
mation
IncentivesResoursesAction PlanTargets
Targets
Capa-
bilities
Resourses Incentives
Infor-
mation
Infor-
mation
IncentivesAction Plan
Capa-
bilities
Targets
Targets
Capa-
bilities
Action Plan Resourses
Infor-
mation
IncentivesResoursesAction Plan
Capa-
bilities
Targets
Set-up
Workshop
Series
Targeted
Trainings
Structured
Project Mgnt.
Give Space
Powerful
Incentive
System.
constant
comm-
unication
Starting points for further development
Change
Management
17. 17
Excellent sales are well aligned and action oriented
Sales excellence alignment and implementation
Growing Market Share
and Profitability
Alignment
Implementation
18. 18
Eric M. Lavelle
Principal
Phone: +1 843 804 0020
Fax: +1 213 805 5337
Mobile: +1 843 804 0020
Eric.Lavelle@kienbaum.com
Rolf Friedrich
Senior Director
Phone: +49 211 965 9270
Fax: +49 211 965 9335
Mobile: +49 172 203 7255
Rolf.Friedrich@kienbaum.de
Kienbaum Consultants Inc.
Contact information for US Kienbaum Consultants
Contacts
Kienbaum Consultants Inc.
2300 Lakeview Parkway | Suite 700
Alpharetta, GA 30009
USA
Address
www.kienbaum.com