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Accenture: Linking Pricing Strategy And ICM

presented by Accenture at the TrueConnection: Sales Performance Management Conference 2007

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Accenture: Linking Pricing Strategy And ICM

  1. 1. Aligning Pricing and ICM John Hanson Partner, Pricing and Profit Optimization Accenture
  2. 2. Situation <ul><li>A company with three significant Initiatives underway </li></ul><ul><li>Each will contribute to a more transparent, data-driven Sales and Marketing operating environment </li></ul><ul><li>Optimization analytics to set target prices </li></ul><ul><li>Automated price list management </li></ul><ul><li>Tools and data to guide sales negotiations </li></ul><ul><li>Intelligence on customers, products, prior deals </li></ul><ul><li>Single, clear view of pipeline </li></ul><ul><li>Accurate record of deal characteristics </li></ul><ul><li>Daily sales performance and incentive results </li></ul><ul><li>Robust sales management analytics and incentive modeling </li></ul>
  3. 3. Key Interdependencies Across the Business Pricing Group Sales Force <ul><li>Price guidelines and approval processes that enable the sales force to sell enough to make plan </li></ul><ul><li>Negotiating tools and deal analytics consistent with the comp plan </li></ul>To ensure execution of the Pricing strategy, Pricing needs to provide: <ul><li>Deals that comply with revenue and margin goals </li></ul><ul><li>Accurate data on wins, losses, and market conditions that inform good price setting </li></ul>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
  4. 4. All Initiatives Converge on the Front-line Sales Force <ul><ul><li>Sales Force are target users of each initiative </li></ul></ul><ul><ul><li>All three require Sales Force adoption to succeed </li></ul></ul>
  5. 5. The Vision 3 Initiatives... A suite of new tools to free up my time and let me sell better… Terrific! <ul><li>Accurate comp information </li></ul><ul><li>Dashboard for managing performance </li></ul><ul><li>Timely information on prospects </li></ul><ul><li>More organized pipeline </li></ul><ul><li>Speedier approvals </li></ul><ul><li>Dashboard for pricing each deal </li></ul>
  6. 6. The Risk: 3 Initiatives.. 3 new demands on my time… 3 different interfaces .. Why didn’t anyone plan ahead?!?! <ul><li>Comp plans tied to new price and discount rules </li></ul><ul><li>Self-service </li></ul><ul><li>New required tools </li></ul><ul><li>New compliance requirements </li></ul><ul><li>More approvals </li></ul><ul><li>New required tools </li></ul><ul><li>New reporting requirements </li></ul><ul><li>More transparent win/loss reports </li></ul><ul><li>New required tools </li></ul>
  7. 7. Problem Definition <ul><li>3 Initiatives working independently , not talking to each other </li></ul><ul><li>3 projects  3 user experiences </li></ul><ul><li>Each making similar but redundant and/or conflicting demands on IS </li></ul><ul><li>Sales Force is not being consulted as ‘the customer’ </li></ul>
  8. 8. Overview of Proposed Solution Solution Objectives <ul><li>3 projects  1 user experience </li></ul><ul><li>Eliminate redundancies in IS activity </li></ul><ul><li>Maximize Sales Force adoption and behavior change </li></ul><ul><li>Optimize flow of data and information across Initiatives </li></ul>Proposed Approach <ul><li>Identify and rationalize the business process dependencies that cut across all three Initiatives </li></ul><ul><li>Harmonize the Initiatives into a single roadmap with the Sales Force as “customer” </li></ul><ul><li>Design and implement an integrated “” portal that creates a single, optimal user experience </li></ul>
  9. 9. 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
  10. 10. Multiple Software Components Together Create a ‘Composite Application’ Outlook Calendar Sales Reporting External Market Intelligence Workbench components can be embedded in MS Dynamics
  11. 11. 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
  12. 12. 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.
  13. 13. Embedded Sales Process Embedded Real Time Intelligence specific to Opportunity Contextual Links to Integrated Processes
  14. 14. <ul><li>Avoid cost inefficiencies </li></ul><ul><ul><li>Wasted IS spend during development in the form of overlapping, inconsistent projects </li></ul></ul><ul><ul><li>Sales Force inefficiency post-deployment via a single optimized portal </li></ul></ul><ul><li>Ensure uniform adoption and therefore consistent data </li></ul><ul><ul><li>3 separate systems will be inconsistently adopted with reps putting partial data in different fields </li></ul></ul><ul><ul><li>“ Garbage-In, Garbage Out” for each solution would yield poor/inaccurate decisions </li></ul></ul><ul><li>Close the loop between Price Strategy and Sales Force Compensation </li></ul><ul><ul><li>Align incentives between Pricing Team and Sales Force </li></ul></ul><ul><ul><li>Clear rewards to Sales Force for executing Pricing Strategy </li></ul></ul><ul><li>Apply price guidance earlier in the opportunity pipeline </li></ul><ul><ul><li>Reduce sales time spent advancing bad deals through the pipeline </li></ul></ul><ul><ul><li>Minimize unproductive special bid reviews late in the sales cycle </li></ul></ul>The Business Case for Aligning These Three Initiatives is Driven by Four Key Benefits
  15. 15. <ul><li>John Hanson </li></ul><ul><li>Accenture </li></ul><ul><li>[email_address] </li></ul>?