Aligning Pricing and ICM John Hanson Partner, Pricing and Profit Optimization Accenture

Situation A company with three significant Initiatives underway Each will contribute to a more transparent, data-driven Sales and Marketing operating environment Optimization analytics to set target prices Automated price list management Tools and data to guide sales negotiations Intelligence on customers, products, prior deals Single, clear view of pipeline Accurate record of deal characteristics Daily sales performance and incentive results Robust sales management analytics and incentive modeling

A company with three significant Initiatives underway

Each will contribute to a more transparent, data-driven Sales and Marketing operating environment

Optimization analytics to set target prices

Automated price list management

Tools and data to guide sales negotiations

Intelligence on customers, products, prior deals

Single, clear view of pipeline

Accurate record of deal characteristics

Daily sales performance and incentive results

Robust sales management analytics and incentive modeling

Key Interdependencies Across the Business Pricing Group Sales Force Price guidelines and approval processes that enable the sales force to sell enough to make plan Negotiating tools and deal analytics consistent with the comp plan To ensure execution of the Pricing strategy, Pricing needs to provide: Deals that comply with revenue and margin goals Accurate data on wins, losses, and market conditions that inform good price setting In order to attain maximum compensation, Sales needs to deliver: Without this alignment, both price strategy and incentive compensation strategy will suffer from lack of mutual enablement

Price guidelines and approval processes that enable the sales force to sell enough to make plan

Negotiating tools and deal analytics consistent with the comp plan

Deals that comply with revenue and margin goals

Accurate data on wins, losses, and market conditions that inform good price setting

All Initiatives Converge on the Front-line Sales Force Sales Force are target users of each initiative All three require Sales Force adoption to succeed

Sales Force are target users of each initiative

All three require Sales Force adoption to succeed

The Vision 3 Initiatives... A suite of new tools to free up my time and let me sell better… Terrific! Accurate comp information Dashboard for managing performance Timely information on prospects More organized pipeline Speedier approvals Dashboard for pricing each deal

Accurate comp information

Dashboard for managing performance

Timely information on prospects

More organized pipeline

Speedier approvals

Dashboard for pricing each deal

The Risk: 3 Initiatives.. 3 new demands on my time… 3 different interfaces .. Why didn’t anyone plan ahead?!?! Comp plans tied to new price and discount rules Self-service New required tools New compliance requirements More approvals New required tools New reporting requirements More transparent win/loss reports New required tools

Comp plans tied to new price and discount rules

Self-service

New required tools

New compliance requirements

More approvals

New required tools

New reporting requirements

More transparent win/loss reports

New required tools

Problem Definition 3 Initiatives working independently , not talking to each other 3 projects  3 user experiences Each making similar but redundant and/or conflicting demands on IS Sales Force is not being consulted as ‘the customer’

3 Initiatives working independently , not talking to each other

3 projects  3 user experiences

Each making similar but redundant and/or conflicting demands on IS

Sales Force is not being consulted as ‘the customer’

Overview of Proposed Solution Solution Objectives 3 projects  1 user experience Eliminate redundancies in IS activity Maximize Sales Force adoption and behavior change Optimize flow of data and information across Initiatives Proposed Approach Identify and rationalize the business process dependencies that cut across all three Initiatives Harmonize the Initiatives into a single roadmap with the Sales Force as “customer” Design and implement an integrated “mySales.Company.com” portal that creates a single, optimal user experience

3 projects  1 user experience

Eliminate redundancies in IS activity

Maximize Sales Force adoption and behavior change

Optimize flow of data and information across Initiatives

Identify and rationalize the business process dependencies that cut across all three Initiatives

Harmonize the Initiatives into a single roadmap with the Sales Force as “customer”

Design and implement an integrated “mySales.Company.com” portal that creates a single, optimal user experience

Overview of ACN Sales Workbench Sales Methodology Coach Customer Infusion Portal Sales Resource Search Engine Proposal Generator Deal Manager Market Intelligence Engine Living Powermap Sales Prioritization Engine Lead Generator Learning and Sales Rep Performance Engine Collaboration Enabler Active Sales Assistant Incentive Comp Engine Sales Performance Monitor Sales Force Automation Engine PLAN EXECUTE PLAN EXECUTE REVIEW REVIEW

Multiple Software Components Together Create a ‘Composite Application’ Outlook Calendar Sales Reporting External Market Intelligence Workbench components can be embedded in MS Dynamics

In theory, the Deal Manager Scoring algorithm could be denominated in “$ commission for this transaction” At a minimum, compensation impacts should be factor in Deal Score In addition Deal Score and compensation plan should be reinforcing the same desired behaviors Linking Price Management and Sales Comp

The Portal Could Also Display the Callidus TrueInformation and TrueAnalytics Information Daily sales performance and incentive results with traceability back to MS CRM origination. Robust sales management analytics and what-if incentive modeling. Additional sales self service capabilities to consider: automated dispute resolution and incentive online earnings estimation.

Embedded Sales Process Embedded Real Time Intelligence specific to Opportunity Contextual Links to Integrated Processes

Avoid cost inefficiencies Wasted IS spend during development in the form of overlapping, inconsistent projects Sales Force inefficiency post-deployment via a single optimized portal Ensure uniform adoption and therefore consistent data 3 separate systems will be inconsistently adopted with reps putting partial data in different fields “ Garbage-In, Garbage Out” for each solution would yield poor/inaccurate decisions Close the loop between Price Strategy and Sales Force Compensation Align incentives between Pricing Team and Sales Force Clear rewards to Sales Force for executing Pricing Strategy Apply price guidance earlier in the opportunity pipeline Reduce sales time spent advancing bad deals through the pipeline Minimize unproductive special bid reviews late in the sales cycle The Business Case for Aligning These Three Initiatives is Driven by Four Key Benefits

Avoid cost inefficiencies

Wasted IS spend during development in the form of overlapping, inconsistent projects

Sales Force inefficiency post-deployment via a single optimized portal

Ensure uniform adoption and therefore consistent data

3 separate systems will be inconsistently adopted with reps putting partial data in different fields

“ Garbage-In, Garbage Out” for each solution would yield poor/inaccurate decisions

Close the loop between Price Strategy and Sales Force Compensation

Align incentives between Pricing Team and Sales Force

Clear rewards to Sales Force for executing Pricing Strategy

Apply price guidance earlier in the opportunity pipeline

Reduce sales time spent advancing bad deals through the pipeline

Minimize unproductive special bid reviews late in the sales cycle

John Hanson Accenture [email_address] ?

John Hanson

Accenture

[email_address]