Territory mgt tab 1 a 0403


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  • Did they bring their Op Plan and four to five goals to the class? Read the Scenario to the class
  • Let the table teams discuss these at their tables. Then selectively de-brief people by asking them: “ What do you need in order to make your Operating Plan?”
  • Read the Learning Objectives to the class. Explain that a “Territory” Plan means a Region Plan, District Plan, or whatever the territory is called that the Sales Manager manages. Segue into next slide ….. Ask the class: What makes up a good Territory Plan?
  • Here are some typical elements. Ask whether their Businesses include any other key components in a Sales Manager’s Territory Plan. If they typically sell through distributors or channel partners, do they also determine budgets for each channel partner?
  • Explain that these are Tips, or thought starters … or things to consider. The key point is that the Plan needs to be jointly developed with your Salespeople, in order to achieve buy-in.
  • Explain that each Business does this differently. Ask if any participants would share with the class how their Business develops budgets. Using 2 flip charts, label one “Top Down” and the other “Bottom Up”. Divide each chart into two parts: Benefits Drawbacks and then get inputs from the class.
  • Here are some tips for effective budgeting. The last bullet includes activities that are are not directly related to selling, but are important nonetheless for salespeople. Some of your people are more involved in these special projects/tasks than others ….Recognize this during the EMS discussion
  • Ask them to use flip charts to record their thoughts. Give them 10 minutes, then do a selective report-out to the class. The participants should come up with some of the key points shown on next 2 slides.
  • After teams report, read any of these that the Table Teams did not already think of in the previous exercise. The main point here is that accounts need to be selected based on this type of criteria, and then matched to the appropriate salesperson. See Appendix for a way to estimate Return on Time Invested at an account. This model is used at GE Capital Fleet Services.
  • Analyzing your competitors’ sales coverage is a good way to determine whether you have enough sales resources in your territory. Ask yourself: “Do I want to modify or strengthen my Plan based on this competitive comparison?
  • This is the 2nd Learning Objective of this Module …. You can have a great Plan, but as a Manager, the execution of a great plan depends on the execution by your salespeople . How do you make sure your salespeople follow the Plan and make it happen?
  • How are your people spending their time? This is not a predictor of success, but a tool to analyze how people are spending their time. You may want to “poll” all your salespeople. Ask - What would you do with this data? Possible responses … re-deploy resources, provide time management tips
  • How do your salespeople manage their territories? Benchmark their territory mgmt style. These 3 styles are not necessarily good or bad, but are often used depending on the types of accounts served. Ask: Do some types of customers cause our salespeople to be routine, reactive, or proactive? Example: Selling to construction contractors normally elicits reactive behavior from the salespeople who call on them … because of their constant bid activities and their requirement for quick turnaround on proposals.
  • Important to maintain a good balance between developing, penetrating and retaining as market conditions continue to change. A good Manager will know where his/her people are spending their time. There are dozens of different formats for Account Plans … refer to Appendix page 18 for key elements of a good Account Plan.
  • This is a summary of effective Territory Management. Any final questions on this module? Take a 15 minute break, and then we’ll go to the next step in the process …. Individual Goal Setting / Sales Planning.
  • The typical plan should contain these basic elements. Review the list and discuss Participant’s inputs
  • Review the GE Capital - Fleet Services example as to measuring the Return on Time Investment. Suggest proceeding to the example on the next page after introducing the topic.
  • Continue the review - point out there are 2000 hours per year selling time available In this example, the Return On Time Invested is high.
  • Territory mgt tab 1 a 0403

    1. 1. Territory Management
    2. 2. Scenario with Business Leader <ul><li>In preparation for an operating plan review with your Business Leader next week, you need to address the following questions: </li></ul><ul><li>“ How are you assigning customer accounts to your salespeople ? ” </li></ul><ul><li>“ Why do you assign them in that way ? ” </li></ul><ul><li>“ How do you link account potential to your overall territory strategy ? ” </li></ul><ul><li>What’s really on your Business Leader’s mind is…… </li></ul><ul><li>“ How do you know your Territory Plan will yield your Operating Plan ? ” </li></ul><ul><li>“ What do you need in order to make your Operating Plan ? ” </li></ul>
    3. 3. In preparation for your Business Leader’s visit…. <ul><li>Think about your answers to the three questions (5 min) </li></ul><ul><li>Share your answers with your Table Team (5 min) </li></ul><ul><li>De-brief each other: </li></ul><ul><ul><li>Did You Meet Your Leader’s Expectations ? (5 min) </li></ul></ul>Scenario with Business Leader
    4. 4. Learning Objectives <ul><li>Design an effective Territory Plan </li></ul><ul><li>Ensure your Territory Plan helps you maximize your OP </li></ul><ul><li>Assign accounts & deploy resources to maximize your OP </li></ul>By the end of this module, you will be able to…
    5. 5. <ul><li>Territory Budget </li></ul><ul><li>Account (Customer) Assignments </li></ul><ul><li>Resource Deployment Plan </li></ul><ul><li>Overall Territory Potential </li></ul><ul><li>Competitor Position </li></ul><ul><li>Marketplace Dynamics </li></ul>Effective Territory Plans Key Elements …
    6. 6. <ul><li>Does the structure of each salesperson’s territory reflect the maximum number of accounts they can penetrate effectively? </li></ul><ul><li>Have individual accounts been prioritized by potential volume available? </li></ul><ul><li>Have current penetration and share been evaluated for each account? </li></ul><ul><li>Have sales volume, share, and margin targets been established for each account? </li></ul>Effective Territory Plans Ask yourself … Joint development with your salespeople will yield a sustainable plan!
    7. 7. <ul><li>Should I assign individual sales budgets by a “Top Down” approach? ” OR </li></ul><ul><li>“ Should I use a “Bottom Up” approach: having my individual salespeople first establish their sales budgets? ” </li></ul><ul><li>“ Do I have enough ‘cushion’ in my Territory Budget? ” </li></ul><ul><li>“ Do I understand the Total Potential of my territory? ” </li></ul>Territory Sales Budgets Class Discussion
    8. 8. <ul><li>Does my budget equal the “roll-up” of individual salesperson budgets? </li></ul><ul><li>Have I built sufficient stretch into individual budgets to ensure the total in case of unforeseen events? </li></ul><ul><li>How would I reward my people if they achieve their stretch budgets? </li></ul><ul><li>Have I taken into account other activities required of my people… </li></ul><ul><ul><li>Six Sigma projects? </li></ul></ul><ul><ul><li>ACFC? </li></ul></ul><ul><ul><li>Professional Development / Training? </li></ul></ul><ul><ul><li>Mentoring? </li></ul></ul><ul><ul><li>Area Sales Council; Boundaryless Sales Team meetings? </li></ul></ul>Effective Territory Budgeting Ask yourself …
    9. 9. Table Team Discussion <ul><li>What information do you need to gather to determine … </li></ul><ul><li>… how to assign accounts to my salespeople? </li></ul><ul><li>… how to deploy other resources available to me? </li></ul>Resource Deployment
    10. 10. <ul><li>Customer information </li></ul><ul><ul><li>Strategic goals, financial strength, expected growth rate </li></ul></ul><ul><ul><li>Current available business, long-term potential </li></ul></ul><ul><ul><li>Buying practices, decision making processes </li></ul></ul><ul><ul><li>Positions and behavioral styles of influencers and decision makers </li></ul></ul><ul><li>Current suppliers </li></ul><ul><ul><li>Current GE share </li></ul></ul><ul><ul><li>How entrenched are our competitors? </li></ul></ul><ul><li>Resources required </li></ul><ul><ul><li>What does it take to support this customer? </li></ul></ul><ul><ul><li>What impact can we have on their CTQs? </li></ul></ul><ul><ul><li>What type of skill set should our salesperson have, to grow and effectively serve this account? </li></ul></ul>Assigning Accounts to Salespeople Tips …
    11. 11. Number of People Outside Sales Inside Sales Sales Support €/ $Sales / Salesperson GE __________ _________ _________ _________ €/ $_________ Competitors __________ _________ _________ _________ €/ $_________ __________ _________ _________ _________ €/ $_________ __________ _________ _________ _________ €/ $_________ __________ _________ _________ _________ €/ $_________ Resource Deployment vs. Competition
    12. 12. How to ensure my ‘Territory Plan’ will work
    13. 13. [ confidential ] All Salespeople Top Performer Lowest Performer Activity : ( My Estimate ) ( Their Estimate ) ( Their Estimate ) Customer Facetime _______% _______% _______% (“Touch Time”) Administration _______% _______% _______% Travel _______% _______% _______% Other _______% _______% _______% Total 100 % 100 % 100 % Productivity Analysis Tool Customer Touch Time – INCLUDES meetings, conversations (phone or in-person), presentations, Interactive video conferences, participation in customer events, Customer Touch Time – DOES NOT Include e-mail, voicemail, customers visiting a GE web-site or driving to a customer.
    14. 14. <ul><li>Routine </li></ul><ul><li>Typically follows a consistent pattern, based on optimal routing and clustering visits based on proximity </li></ul><ul><li>Visits accounts with unvarying frequency </li></ul><ul><li>Reactive </li></ul><ul><li>Fosters flexibility and allows for quick reaction to opportunities </li></ul><ul><li>Tends to be crisis-prone, and may sacrifice consistent coverage and long term account management </li></ul><ul><li>Proactive </li></ul><ul><li>Driven by long-term results. </li></ul><ul><li>Allocates calls and time based on a plan that optimizes account potential </li></ul>Individual Territory Plans How Salespeople Manage Their Territories … Most salespeople use a combination of styles
    15. 15. <ul><li>Do your salespeople’s plans describe how they will capture new accounts? (Develop) </li></ul><ul><li>Capture more of each customer’s available business? (Penetrate) </li></ul><ul><li>Defend our existing business share in the face of aggressive competitive challenges? (Retain) </li></ul>Individual Territory Plans Ask yourself …
    16. 16. <ul><li>Know each Salesperson’s skill level </li></ul><ul><ul><li>Territory Management Style </li></ul></ul><ul><ul><li>Training or Coaching or Mentoring Required ? </li></ul></ul><ul><li>Know the concentration of accounts (Customers) required for you to meet your Operating Plan </li></ul><ul><ul><li>Geographical Distribution </li></ul></ul><ul><ul><li>Market Type </li></ul></ul><ul><li>Devise and implement a logical (and consistent) plan for assigning accounts </li></ul><ul><ul><li>Are your accounts distributed equitably ? </li></ul></ul>Keys to Effective Territory Management Involve your salespeople in your territory plan development!
    17. 17. Appendix
    18. 18. Account Plan Critical Elements <ul><li>Customer demographics & financials </li></ul><ul><li>Key customer personnel, position, behavioral style </li></ul><ul><li>Current GE business status with customer </li></ul><ul><li>Customer buying practices </li></ul><ul><li>Current suppliers & share </li></ul><ul><li>Key goals & objectives </li></ul><ul><li>Action Plans & Strategies to achieve goals </li></ul><ul><li>Resources required </li></ul><ul><li>GE Business-specific criteria </li></ul>
    19. 19. Account Planning Determining Customer Available Business - “The Great Unknown” <ul><li>Some Answers </li></ul><ul><li>Ask Customer - check as many different people as possible… Purchasing, Marketing, Finance, Accounts Payable, Executives </li></ul><ul><li>Annual Reports including CEO Letter, On-line Customer web-site etc </li></ul><ul><li>Contact Other GE Businesses - BST </li></ul><ul><li>Ask Other Suppliers - Their estimated share, Their competitor’s share </li></ul><ul><li>D & B Reports </li></ul><ul><li>Tour Customer Plant - storage cribs, receiving area, equipment installations </li></ul><ul><li>Industry Data Bases </li></ul>
    20. 20. Account Return On Investment - Example I. Potential 1. Past Sales _________ 2. Additional Potential Sales _________ 3. Total Potential (1+2) _________ 4. Probability of Realizing Potential _________ 5. Expected Value (3 x 4) _________ II. Time Required to Realize Expected Value 6. Number Calls Required _________ 7. Approx. Call Duration - Hours _________ 8. Call Hours Required (6 x 7) _________ 9. Travel Time per Call _________ 10. Total Travel Time (6 x 9) _________ 11. Total Time Required (8+10) _________ III. Return on Time Invested - ROTI 12. Gross Margin on Expected Value _________ 13. Cost of Time Invested (11 x Cost/Hr.) _________ 14. ROTI (12 / 13) _________
    21. 21. Account Return On Investment - Example I. Potential 1. Past Sales $500,000 _ 2. Additional Potential Sales 1,000,000 _ 3. Total Potential (1+2) 1,500,000 _ 4. Probability of Realizing Potential __ 65% ___ 5. Expected Value (3 x 4) 975,000 __ II. Time Required to Realize Expected Value 6. Number Calls Required __ 100 ____ 7. Approx. Call Duration - Hours ___ 1.5 ___ 8. Call Hours Required (6 x 7) __ 150 ____ 9. Travel Time per Call ___ 1 _____ 10. Total Travel Time (6 x 9) __ 100 ____ 11. Total Time Required (8+10) __ 250 ____ III. Return on Time Invested - ROTI 12. Gross Margin on Expected Value @30% 292,500 ___ 13. Cost of Time Invested (11 x Cost/Hr.) __ 6,000 ___ (@$50K/Yr ) 14. ROTI (12 / 13) __ 48:1 _