1. Today’s webinar: 6 Pillars of Sales Productivity T he drivers that maximize productivity in sales management. Brought to you by:

2. Today’s Presenter Bill Eckstrom Founder, President/CEO EcSELL Institute

3. Today’s Presenter Ken Rudin Founder, VP of Market Development LucidEra

4. Talent Identification & Acquisition Sales Methodology & Sales Skills Development Professional Development Planning Compensation/Recognition/Rewards Analytics The 6 Pillars A set of guiding ideologies that command the attention, development and activity of those in sales management. Source: EcSELL Institute

5. Talent Identification & Acquisition Sales Methodology & Skills Development Professional Development Planning Compensation/Recognition/Reward Analytics The 6 Pillars A set of guiding ideologies that command the attention, development and activity of those in sales management. Source: EcSELL Institute 65% believe there is nothing more that drives productivity in sales Source: EcSELL Institute

6. Talent Identification & Acquisition Sales Methodology & Sales Skills Development Professional Development Planning Compensation/Recognition/Reward Analytics Leadership and Management The 6 Pillars Source: EcSELL Institute It is how one leads and manages that will ultimately affect the success within each Pillar

8. Talent Plus Case Study Changing the selection method and interviewing process lead to: - 10% increase in revenue - 50% reduction in turnover Results within a single year! Source: Talent Plus

9. Caliper Research: Costs on average $60K per person turned. 40 producers X 20% average turnover = 8 turns per year 8 turns X 60K = $480,000 in loss/yr Reduction in turnover rate to 10% saves $240,000!

10. Talent Identification & Acquisition EcSELL Institute Research indicates: 67% Sales managers rate this Pillar as “ extremely strong ” when referring to impact on sales production. Source: EcSELL Institute

11. Talent Identification & Acquisition EcSELL Institute Research indicates: 67% Sales managers rate this Pillar as “ extremely strong ” when referring to impact on sales production. Source: EcSELL Institute Only 7% rate their Sales Managers skills sets as “extremely strong” in this area

19. Stanford University Study 5X more likely to achieve something if it is written down! 500% increase! Source: Stanford University

20. EcSELL Institute Research indicates: 10% Consider their sales management team as “ extremely strong ” in the area of PLANNING 51% Consider their sales management team as “ neutral to very weak ” in the area of PLANNING

21. University of Waterloo, Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Canada October 2006

22. University of Waterloo, Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Toronto, Canada October 2006 The tiered goal participants outperformed the single stretch goal in each period measured, despite the fact the single stretch goal was 14% lower!

23. University of Waterloo, Toronto Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Toronto, Canada October 2006 Individually tailored stretch goals , with attainment tiers , may be a more effective means of motivating higher efforts and performance.

30. Professional Development Defined as: Meeting the individual needs of those in the sales department in order to increase productivity and retention of your team. Professional Development

31. Professional Development Ask yourself: Do you know all those who aspire to other positions? Do you know what producers will make great mangers or leaders? Do you have programming in place to grow those skills? Do you provide programming to further develop the skills of your sales managers? Professional Development

32. CSO Insights Research Less than 10% of companies have programming in place to develop the skills of their sales mangers. 10% have programming Source: CSO Insights

33. There is gap between what sales managers perceive and what science shows! 38% Believe that Professional Development has a “ very strong” impact on productivity Source: EcSELL Institute “ Professional Development has a strong correlation to retention and productivity” Source: Curt Coffman

40. Compensation, Recognition & Rewards Defined as: The understanding and design of programs that not only drive and incent the proper behaviors, but also meet the evolving demographic and psychographic needs of your sales department. Compensation/Recognition/Rewards

41. EcSELL Institute Research indicates: 87% Respondents believe “ very strongly or strongly ” that the right Compensation/Recognition/Reward has a direct impact on sales productivity 47% Respondents believe that their sales management team is “ very strong or strong” in this area Source: EcSELL Institute Research, 2009

49. Harvard Business Review research: The New Science of Sales Productivity Source: Harvard Business Review

50. Source: Harvard Business Review Breaking producer results down further: Top quartile 6% increase Second quartile 59% increase Third quartile 77% increase Bottom quartile 149% increase Source: Harvard Business Review Harvard Business Review research:

51. Source: Harvard Business Review Another study showed similar results: Top quartile 2% increase Second quartile 33% increase Third quartile 54% increase Bottom quartile 44% increase Source: Harvard Business Review Harvard Business Review research:

57. Leadership / Management “ What ultimately determines the levels of success you achieve correlates directly to the leadership skills and management acumen of those in sales management.” Bill Eckstrom, Founder EcSELL Institute Leadership and Management

58. EcSELL Institute Research indicates: “ Sales managers believe their ability to lead and manage has the second largest impact on production ( after Talent ID and Acquisition ).” Less than 10% Put resources against improving leadership and management skills 15% Consider their teams “ extremely strong ”

59. Gallup Organization Research 80,000 managers and 1 million employees interviewed “ The biggest reason associates stay, quit, are productive or not productive is due to the relationship they have with their direct manager.” Source: First Break All The Rules: What the World’s Greatest Managers Do Differently Curt Coffman and Marcus Buckingham, Gallup

60. Gallup Organization Research 80,000 managers and 1 million employees interviewed “ The biggest reason associates stay, quit, are productive or not productive is due to the relationship they have with their direct manager.” Source: First Break All The Rules: What the World’s Greatest Managers Do Differently Curt Coffman and Marcus Buckingham, Gallup “ The ability to build organic growth and the future viability of any organization will be in the hands of their sales managers.” Curt Coffman

61. Dr. Mary Ulh-Bien Howard Hawks Chair in Business Ethics and Leadership and Director of the Global Leadership Institute EcSELL Institute Summit topic: “ Leading for Innovation, Learning, And Adaptability in Sales” July 28-29, Half Moon Bay, CA

69. EcSELL Institute is a leading provider of continuing education and development for sales managers. Our goal at EcSELL Institute is to help sales executives and their sales management team make smarter, more deliberate decisions by providing them with educational and development tools specific to the activities over which sales managers have (or should have) control and influence over.

70. Analytics: The Critical Second Half of CRM In the projects we've benchmarked over the past few years, we often find that CRM systems give sales managers numbers – but what they want is insight. “ ”

71. Do You Have the Right Metrics? Batting Average .406 The Old Way… On-Base % Batting Average + Walks + Sacrifices + Hit By Pitch The New Way…

72. Do You Have the Right Metrics? .406 The Old Way…

76. Q&A EcSELL Institute www.ecsellinstitute.com 402-261-6948 LucidEra www.lucidera.com www.lucidera.com/blog www.twitter.com/lucidera