B P G003 Durocher 091707


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B P G003 Durocher 091707

  1. 1. Domain 2: Business Metrics John Durocher, salesforce.com Brian Hudes, Kaiser Permanente Saideep Raj, Accenture Best Practices: Global Enterprise
  2. 2. Safe Harbor Statement <ul><li>“ 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. </li></ul><ul><li>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. </li></ul><ul><li>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 www.salesforce.com /investor . Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. </li></ul>
  3. 3. Our Experience has shown us that there are 7 key Domains for Success <ul><li>Vision and Strategy </li></ul><ul><li>Business Metrics </li></ul><ul><li>Adoption </li></ul><ul><li>Sponsorship and Governance </li></ul><ul><li>Roadmap </li></ul><ul><li>Process </li></ul><ul><li>Technology </li></ul><ul><li>Business Performance Model </li></ul><ul><li>Key Business Case </li></ul><ul><li>Performance Indicators </li></ul><ul><li>Metrics Tracking </li></ul>Business Metrics Key Components
  4. 4. Domain Development Approach Define Business Objectives Define CRM Strategies Define CRM Vision Prioritize and group Initiatives Develop the CRM Roadmap What are key business metrics to measure success? Assess impact on organization/ employees How will the CRM transformation impact the organization and employees? Identify key Business Metrics Domain #1 Strategy and Vision What are the business objects of the overall CRM effort? What should be the basis for deciding which initiatives are pursued first? What are the strategies to enable achievement of your CRM vision? What is the vision that will carry forward the CRM effort? Domain #2 Business Metrics Domain #3 Adoption Domain #5 Roadmap Define Processes Develop the Technology and Data strategy What processes will help achieve the CRM vision? Do they need to be re-designed? Domain #6 Process Domain #7 Technology and Data What technology and data strategies and architecture will support the CRM effort? How should the list of CRM related programs and initiatives be structured to produce maximum benefit? Develop the Center of Excellence Domain #4 Sponsorship and Governance What governance model will best support the CRM effort?
  5. 5. Why Define Business Metrics? <ul><li>Business Metrics help to monitor the success of your program by: </li></ul><ul><ul><li>Setting and gauging the level of success in meeting objectives </li></ul></ul><ul><ul><li>Providing feedback to modify the strategy and implementation </li></ul></ul><ul><ul><li>Monitoring the customer experience </li></ul></ul><ul><ul><li>Acting as a tool for change management </li></ul></ul>
  6. 6. Brian Hudes Director, Planning & Strategy National Accounts [email_address] Saideep Raj Partner, CRM Global Service Line [email_address]
  7. 7. Kaiser Permanente Overview <ul><ul><li>INDUSTRY : Health Services </li></ul></ul><ul><ul><li>MEMBERS : Approximately 8.7 Million </li></ul></ul><ul><ul><li>GEOGRAPHY : United States </li></ul></ul><ul><ul><li># USERS : 785 </li></ul></ul><ul><ul><li>PRODUCT(S) USED : Salesforce SFA </li></ul></ul>Kaiser Permanente is America's leading integrated health care organization. Founded in 1945, it is a &quot;not-for-profit&quot; health plan, with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of members in nine states and Washington, D.C
  8. 8. The National Accounts Journey <ul><li>Objectives: </li></ul><ul><ul><li>Create a culture of individual and team accountability </li></ul></ul><ul><ul><li>Manage and measure progress against key objectives </li></ul></ul><ul><ul><li>Provide transparency throughout the organization </li></ul></ul><ul><ul><li>Reward the doers </li></ul></ul>2005 2006 2007 2008 SFDC Go Live for National Accounts Launched ActiveStrategy Performance Dashboard Integrated Key Measures into Sales Incentive Plan Cascaded Dashboards to Account Management Team Level 2-Year SFDC Go Live Anniversary Continue Learning and Refining Key Leading Measures
  9. 9. The sales metrics that matter? Pipeline Screening Pipeline Volume Pipeline Velocity 1 θ 3 θ Pipeline Conversion 4 2 Pipeline Expense 5 Deal Economics 6 Deal Margin $ Customer Retention 7 Copyright © 2007 Accenture All Rights Reserved.
  10. 10. Metrics Measurement to Behavior Change <ul><li>Focus on the right metrics at the right time </li></ul><ul><li>The balance between the ‘macro’ and ‘micro’ view </li></ul><ul><li>Interpretation of metrics to drive behavioral change </li></ul><ul><li>The Learning Process and Adaptive Design </li></ul>
  11. 11. Approach $ Achieving Desired KP SalesConnect Usage & Behaviors <ul><li>Training Effectiveness </li></ul><ul><li>System Login % </li></ul><ul><li>Initiation of FY07 Business… </li></ul><ul><li>Oppty’s by sales stage </li></ul><ul><li>Build-out of High Quality Sales Plans </li></ul><ul><li>Enhanced National/ Regional Collaboration </li></ul><ul><li>Capture of Competitive Data </li></ul>Achieving High Performance Behaviors with KP SalesConnect Successful Deployment, Take-up & Initial Usage of KP SalesConnect Achieving Business Outcomes & Results with KP SalesConnect Performance & Value <ul><li>Face to Face Meetings with Customers </li></ul><ul><li>Improve Positioning </li></ul><ul><li>Increase Penetration </li></ul><ul><li>Mitigate at risk accounts </li></ul><ul><li>Membership Growth </li></ul><ul><li>Account Retention </li></ul><ul><li>New Business Acquisition </li></ul><ul><li>Revenue/Margin Optimization </li></ul>Stage 1 – Go Live + 90 Days Stage 2 – Go Live + 180 Days Stage 3 – Go Live + 270 Days Stage 4 – Go Live + 365 Days Leading Indicators Lagging Indicators <ul><li>PERFORMANCE METRICS </li></ul>
  12. 12. The ‘Infrastructure’ <ul><li>A reporting process to pull data from SalesConnect and update results in ActiveStrategy </li></ul><ul><li>Audit results to ensure accuracy and build credibility and trust in the data </li></ul><ul><li>An integrated management process to drive continued adoption </li></ul>KP SalesConnect (Salesforce) Performance Dashboard / Balanced Scorecard (ActiveStrategy.com)
  13. 13. ‘ Operationalizing’ the Metrics – making them stick! <ul><li>Engage key stakeholders actively and frequently in owning the measures and determining action plans to improve the results </li></ul><ul><li>Clearly communicate expectations </li></ul><ul><li>Align incentives </li></ul><ul><li>Conduct regularly scheduled business reviews </li></ul><ul><li>Follow through </li></ul>
  14. 14. An Example – Competitive Data Capture <ul><li>All teams reached the 100% “getting through the gate” milestone by the 8/31/06 deadline for entering 2006 KP rates and benefit data into SalesConnect. </li></ul>
  15. 15. An Example – Competitive Data Capture (continued) <ul><li>Across the entire line of business, National Accounts captured 59% of the key rate, contribution, and benefit data for all plans we competed against in 2006, both self-funded and fully insured, against a target of 50%. </li></ul>
  16. 16. Success Factors <ul><li>Remain transparent in sharing results </li></ul><ul><li>Allow each team to view not only their own results, but the results of their colleagues to foster the sharing of best practices and healthy internal competition </li></ul><ul><li>Celebrate and recognize the top performers </li></ul><ul><li>Figure out how to help the low performers </li></ul>
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  18. 18. Brian Hudes Director, Planning & Strategy National Accounts Saideep Raj Partner – CRM Service Line John Durocher Client Services Executive QUESTION & ANSWER SESSION