Assessing the sales force talent assmt in reorganization 2 june10

4,389 views

Published on

Overview of how to use Sales Force Assessment during a Technology Sales Force Reorganization.

Published in: Business, Education

Assessing the sales force talent assmt in reorganization 2 june10

  1. 1. Assessing the Sales Force Using Capability Assessments During a Reorganization June 2, 2010 Presented by: Tom Knight James Killian, Ph.D. Partner Chief Psychologist & Director of Consulting Evergreen Growth Advisors Chally Group Worldwide tknight@evergreengrowthadvisors.com jameskillian@chally.com © 2010 The Sales Management Association. All Rights Reserved.
  2. 2. The Sales Management Association Visit Us Online at www.salesmanagement.org A global, cross-industry professional association for sales operations and sales management. Focused in providing research, case studies, training, peer networking, and professional development to our membership. 2 Copyright © 2010 The Sales Management Association. All rights reserved.
  3. 3. Assessing the Sales Force Using Capability Assessments During a Reorganization June 2, 2010 Presented by: Tom Knight James Killian, Ph.D. Partner Chief Psychologist & Director of Consulting Evergreen Growth Advisors Chally Group Worldwide tknight@evergreengrowthadvisors.com jameskillian@chally.com © 2010 The Sales Management Association. All Rights Reserved.
  4. 4. Today’s Presenters Tom Knight and James Killian Tom Knight • 23 years of Sales Experience: Sales Management and Operations, Managing Director of Professional Services, and Sales Practice Leader • Visiting lecturer at DePaul and Loyola University • Expert in Sales Strategy, Organization Structure, and Execution James H. Killian, Ph.D. • Fourteen years of talent management experience with global and Fortune 1000 companies: Serve as business partner with focus on producing measureable impacts for clients • Delivered over 1000 executive coaching engagements • Expert in leader development, personnel selection, strategic planning and talent management 4 Copyright © 2010 The Sales Management Association. All rights reserved.
  5. 5. Today’s Webcast Agenda and Discussion Guide • Situation • Objectives • Key Questions • Approach to Transformation • Measuring Impact 5 Copyright © 2010 The Sales Management Association. All rights reserved.
  6. 6. Situation Telecommunications Company • Revenue Decline within Core Business of >10% • Exploding Cost of Sales due to Productivity Decline • Generalist Account Management Organization • Generalist Product Specialists • Unclear and Inconsistently Followed Sales Process • Significant Upside Revenue with Sale of New Products • <90 Day Time Table for Completion 6 Copyright © 2010 The Sales Management Association. All rights reserved.
  7. 7. Objectives • Slow the Revenue Slide – better negotiation and account management • Increase New Revenue – via account penetration • Increase New-New Revenue – by competing more effectively • Protect Profitability – carefully manage cost of sales • Enable Productivity – make targeted investments in specialized resources 7 Copyright © 2010 The Sales Management Association. All rights reserved.
  8. 8. Key Questions to Answer • What sales process, roles, and structure will enable us to win? • Do we have the right talent to meet or organizational needs without substantial new investments? • What’s the best assessment format for us? • How should we execute the assessment and slotting process? • Who should be placed in which role? • What are the developmental needs of individuals that we must address? 8 Copyright © 2010 The Sales Management Association. All rights reserved.
  9. 9. Approach to Transformation 1 Identify desired structure. Assess full-time equivalents 2 (FTEs) based upon desired Continuous sttructure. Process 3 Slot FTEs into the new model. 9 Copyright © 2010 The Sales Management Association. All rights reserved.
  10. 10. Approach to Transformation Step #1 – Identify Desired Structure DETAILED ACTIVITIES 1. 2. 3. 4. Sales Process Identify Key Activities Align Roles & Activities Reporting Structure CRITICAL SUCCESS FACTORS • Sales Process reflects Customer preferences • Level of Specialization Required • Activities and key handoffs are clear • Adequate Sales Rep bandwidth • Decision rights are clear (e.g. RACI) • Cost vs. opportunity is appropriate • Buy-in from managers and field personnel • Right managerial oversight • Adaptability for future • Ease of Implementation 10 Copyright © 2010 The Sales Management Association. All rights reserved.
  11. 11. Approach to Transformation Step #1 – Identify Desired Structure The following diagram shows exactly how roles will interact with each other across multiple the sales process. Illustrative Example GAP: Professional OVERLAP: Too many GAP: More attention should be Services and Technical faces to the customer; applied to “Lead Gen” activities by sales resources should feedback supports this sales resources that can have a contribute more to “Close finding. greater impact on sales success. Sale” in order to improve win-ratio. 11 11 Copyright © 2010 The Sales Management Association. All rights reserved.
  12. 12. Approach to Transformation Step #1 – Define Structural Alternatives Telco decided to create specialized Reps where efficient coverage could occur and high specialized Sales support roles VP Sales West Region East Region Channel Sales Sales Sales Leader Each region will have a similar structure General or Segment Reps Generalist Manager Sales Specialist Solutions Support Organization Segment Sales Specialist • Role and Product Specialties Manager Segment Manager New-New Reps New Logo Reps 12 Copyright © 2010 The Sales Management Association. All rights reserved.
  13. 13. Approach to Transformation Step #1 – Define Structural Alternatives National Solutions Support Leader Key Issue: Requisite Competence Key Issue: Requisite Competence -- Sales and Consulting Skills Sales and Consulting Skills Consulting Svcs. West Region East Head Leader Leader -- Technical Skills Technical Skills (N) Billable Presales Specialists Presales Specialists Consultants (N) Telepresence (N) Telepresence (N) Unified Comms (N) Unified Comms Practice Leads (N) Wireless LAN (N) Wireless LAN Telepresence (N) NW Accel (N) CIC/NW Accel Unified Comm (N) Contact Ctr/CRM (N) Contact Ctr/CRM Enhanced Network (N) SaaS (N) SaaS (N) Mobility Hybrid Prac Lead/Principals Presales Sol. Cons Presales Sol. Cons Wireless LAN (N) Telepresence (N) Telepresence CRM (N) Unified Comms (N) Unified Comms SaaS (N) Wireless LAN (N) Wireless LAN Mobility (N) CIC/NW Accel (N) CIC/NW Accel (N) Contact Ctr/CRM (N) Contact Ctr/CRM (N) SaaS (N) SaaS (N) Mobility 13 Copyright © 2010 The Sales Management Association. All rights reserved.
  14. 14. Approach to Transformation Step #2 – Assess FTEs based on Desired Model Standard Process for Selecting/Validating Profiles Validation Study Developing custom position profile for Sales Roles Step 4 - Ongoing Ongoing Step One Step Two Step Three Deliverables Deliverables Program Web-Based Employee Development Web-Based Data Analysis Assessment Database & Assessment Job Analysis Capability “DNA” o Obtain employee data for o Employees complete the o Compile, analyze, and score o Candidate selection o As may be required at a assessment process online assessment assessment results assessments later date o Confirm position role and o Produce position profiles o Employee reports for new o Continue to calibrate responsibilities hires Identify predictive skills o Identify performance data and present findings for o HR Assistant online for full spectrum of approval assessment system performers o Management and user Job analysis interviews training conducted by I/O o Custom interview guides Psychologists 14 14 Copyright © 2010 The Sales Management Association. All rights reserved.
  15. 15. Approach to Transformation Step #2 – Assess FTEs based on Desired Model • Decide on purpose first o Clearly explain scoring methodology • Measurement needs, budget, o Follow a standardized validation involvement, ROI, information process desired o Maintain a research archive Critical Success Factors • Thousands of options – there is no o Evaluate the performance of the “silver bullet” but a good assessment test/assessment should: o Have a policy on legal defense o Demonstrate / document validity o Had limited challenge in a court of o Be affiliated with American law Psychological Association and Society for Industrial/ Organizational Psychology o Adhere to standards of the Uniform Guidelines on Employee Selection Procedures 15 Copyright © 2010 The Sales Management Association. All rights reserved.
  16. 16. Approach to Transformation Step #2 – Assess FTEs based on Desired Model Selecting Assessment Methodology 16 Copyright © 2010 The Sales Management Association. All rights reserved.
  17. 17. Sales Specialty Map 17 Copyright © 2010 The Sales Management Association. All rights reserved.
  18. 18. Chally Assessment Accurately Predicts Success in a Role 80% of the Time •Leverage combination of • Mental Ability, Personality, Motivations, Job Fit and Structured Interviews •150 granular competencies predict success in specific things people do • Samples of how a candidate is scored against specific sales roles, specifically against those competencies identified as predictors of success: 18 Copyright © 2010 The Sales Management Association. All rights reserved.
  19. 19. Sales Talent Assessment COMPOSITE SCORE : Observable Performance = 65% Assessment = 35% Should leverage multiple data points – •Historical (e.g., quota, total revenue, %profit, new logo) •Future Needs •Norm-based •Mix of Quantitative & Qualitative 19 Copyright © 2010 The Sales Management Association. All rights reserved.
  20. 20. Talent Assessment Total Composite Scoring < Midpoint on performance score < Midpoint on performance score > Midpoint on performance score – AND – – OR – – AND – < Midpoint on Chally score < Midpoint on Chally score > Midpoint on Chally score 20 Copyright © 2010 The Sales Management Association. All rights reserved.
  21. 21. Approach to Transformation Step #3 – Slot FTEs into New Model Slotting Process Generals – Coach, Train, considered “go- or Develop A well designed slotting process to” people or utilizes data about an individual’s high potentials potential to perform and data about their witness-able performance Soldiers – consistent performers of above-average Potential to solid work Specialists – keep where they are Re-purpose since they have found a way to make it work “Observeables” 21 Copyright © 2010 The Sales Management Association. All rights reserved.
  22. 22. Approach to Transformation Step #3 – Slot FTEs into New Model Critical Success Factors • Governance and decision rights must be mapped • An impartial governing board should be created to address conflicts and make final decisions • Use of secondary decision factors should be limited structured by clear rules • Detailed notes about decisions should be kept for reference and documentation purposes • Developmental needs must be identified and dimensional zed to enable planning and coaching 22 Copyright © 2010 The Sales Management Association. All rights reserved.
  23. 23. Approach to Transformation Step #3 – Slot FTEs into New Model YES! Decision Based on Composite Score Conduct Review of Secondary Factors – First Decision Based on Review by M2s Composite Score -Geographic Fit? CORE Review Planned -Certification? TEAM Slotting -Key to Client Relationship? FINAL YES w/ Development! CONDUCTS -Technical Skill that’s Needed? STAFFING -Best Fit? – CSI/Sales FINAL “Suitable for Alternative? REVIEW Slotting in Decision Current Role?” Based on No, Outlier Composite or Another Score for CORE TEAM CONDUCTS Decision Role? Another FINAL REVIEW Based on Role Composite NO! Notes: Score CHALLY REVIEW -Composite scores for incumbents are useful NEEDED for comparison purposes within the same job EXIT family only. -Potentially “unstaffed” individuals who are CORE TEAM reviewed by the Core Team and eventually REVIEW NEEDED staffed with enter their new role as “needing development”. -Chally scores will be the dominant basis of comparison when individuals are in different job families. 23 Copyright © 2010 The Sales Management Association. All rights reserved.
  24. 24. Measuring Impact While measures will vary depending on the context of “restructuring,” they typically include: • % of employees at on target or greater performance • % of employees showing improved performance • % increase in the number of performers above median • % or # increase in employee engagement or satisfaction • % or # increase in median performance • % increase in Revenue or Margin • % increase in New Account acquisition • % increase in New Product Sales 24 Copyright © 2010 The Sales Management Association. All rights reserved.
  25. 25. Measuring Impact, cont’d Stop hiring new poor performers Reassigning Appropriately existing team to training your sales correct role team If we reassign or replace the bottom 20% with candidates that just meet or exceed “average” competency levels, we will increase sales by a minimum of 17% to $234M 25 Copyright © 2010 The Sales Management Association. All rights reserved.
  26. 26. Measuring Impact, cont’d Improved Hiring & Deployment Impact Increase Revenues and Profits by: Success Story from Case Study: •Typical Quotas went from $4.5M to $8M •Many people slotted into new roles •Company on track to make plan for the first time in years 26 26 Copyright © 2010 The Sales Management Association. All rights reserved.
  27. 27. Implementation Considerations Need to manage all aspects of implementation and change management from communications to readiness assessment and implementation 1. Form 2. Clarify 3. Develop 4. Prepare 5. Implement 6. Evaluate Change Needs & Change People & Change and Monitor Teams Challenges Plan Environment. KEY ACTIONS › Identify rollout teams › Establish a Return On › Develop an overall › Assess leadership’s ability › Functional rollout of › Identify sustainability (Sales and HR, Legal) Sales Investment (ROSI change management to embrace and lead the the change plans › Agree on roles and productivity baseline for plan change effort › Identify and › Evaluate, monitor and responsibilities of today’s sales › Identify communication › Prepare the sponsor communicate the adjust as necessary to teams and set organization) requirements “‘what’s in it for me?” ensure Return On Sales › Prepare the functional expectations › Clarify the nature of the › Identify work steps and roll out teams message Investment (ROSI) › Identify limiting change sequence › Communicate, › De-brief with sponsor › Align systems and factors and risks › Understand who will be › Obtain leadership processes Communicate, and project core team › Prepare the teams impacted and how approval of plan Communicate! › Build tools to explain the › Determine the talent change – assess type of deployment sequence message, media, (which roles to fill first) delivery, and audience › Understand the › Train individuals on the environment (internal change and assess any potential customer relationship risk) 27 27 Copyright © 2010 The Sales Management Association. All rights reserved.
  28. 28. Discussion © 2010 The Sales Management Association . All Rights Reserved.

×