Anaplan and OpenSymmetry Top Sales Planning Best Practices
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Slides from a recent sales webinar highlighting the top sales planning best practices for 2015. Hosted in partnership with OpenSymmetry.
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Anaplan and OpenSymmetry Top Sales Planning Best Practices
- 1. © Copyright 2015 The Sales Management Association. Sales Management Association Webcast 30 April 2015 Presented by The Top Sales Planning Best Practices for 2015
- 2. About The Sales Management Association Slide 2© 2015 The Sales Management Association. All rights reserved. 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. Fostering a community of thought-leaders, service providers, academics, and practitioners. Learn More: www.salesmanagement.org
- 3. Today’s speaker’s Slide 3© 2015 The Sales Management Association. All rights reserved. #SalesPlanning
- 4. © Copyright 2015 The Sales Management Association. Sales Management Association Webcast 30 April 2015 Presented by The top sales planning best practices for 2015
- 5. 12/08/2015 5 © 2015 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information SALES XLS XLS XLS XLS XLS XLS REALITY & MINUTIA Improving sales performance is a constant struggle • Manual processes and spreadsheets • Changing priorities in corporate objectives • Legacy systems that are not flexible • Increasing complexity in sales processes • Inability to adapt to change and disruption • No modeling & planning solutions (What-If Scenarios) • Data stored in disparate systems (CRM, ERP, HR) • Lack of collaboration across the enterprise/stakeholders • Visibility of accurate sales data (i.e. forecasts, historical)
- 6. 12/08/2015 6 © 2015 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information REALITY & MINUTIA DIFFICULT TO ALIGN SALES WITH CORPORATE OBJECTIVES Corporate Objectives Alignment TERRITORY & QUOTA PLANS INCENTIVE COMPENSATION PLANS SALES FORECASTING DEAL DESK MisalignmentACCOUNT SEGMENTATIONS
- 7. 12/08/2015 7 © 2015 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information OPERATIONS SALES HR FINANCE IT MARKETING Limited scale & collaboration No audit & controls Resource intensive XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS Misaligned plans No Trust in data A BROKEN LANDSCAPE
- 8. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Plan & model multiple ‘what-if’ scenarios with collaboration across the enterprise in a few hours Align sales plans with corporate objectives & goals 1st time ever Change business drivers & view sales performance metrics & results instantly Assign & manage sales territories, quotas & incentive compensation one integrated platform Improve sales forecasting accuracy Between 75%-80% Calculate sales performance & compensation in seconds WHAT IF YOU COULD DO MORE What more, or less, could look like
- 9. 12/08/2015 9 © 2015 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information A COMPREHENSIVE SPPM SUITE REPORTING & ANALYSIS, WORKFLOW, AUTOMATION, PERFORMANCE, SCALABILITY, DATA INTEGRATION, CALCULATION ENGINE, DOCUMENT MANAGEMENT Territory Management Sales Capacity Management Quota Management Incentive Compensation Management Crediting Management Deal Desk Sales Forecasting SalesPerformance Planning SalesPerformance Management Territory Planning Account Segmentation Planning Sales Capacity Planning Quota Planning Incentive Compensation Planning Account Scoring Planning Crediting Planning SALES PERFORMANCE PLANNING & MANAGEMENT (SPPM) Framework
- 10. 10 Copyright © OpenSymmetry Inc. Proprietary Information Delivering on Sales Promises Top sales planning best practices Presented by: OpenSymmetry Jon Clark, Laura Roach Date: 30 April 2015 www.opensymmetry.com
- 11. 11 Copyright © OpenSymmetry Inc. Proprietary Information The Challenge Integrated Planning Adapting to Market Changes Holistic SPM Successful Change Management & Collaboration Are you delivering on your sales promises?
- 12. 12 Copyright © OpenSymmetry Inc. Proprietary Information Quotas The goal, the WHAT your trying to achieve Driving your Sales Team Territory WHO, WHERE you are going to go to achieve DESIGN HOW you will pay, motivate, drive performance for achievement So What? If you don’t know the WHY to what your driving
- 13. © 2012 Forrester Research, Inc. Reproduction Prohibited Alignment with Growth Opportunities Jan. 2015 Forrester report: “Grow Your Revenue Stream With Customer-Centric Finance”
- 14. 14 Copyright © OpenSymmetry Inc. Proprietary Information A Big Problem say retaining good performers will be a big problem in 2014/2015. More than a third of sales leaders are increasing salaries to keep their best people. 56% >30% source: BMS Quarterly Sales Index April 2014
- 15. 15 Copyright © OpenSymmetry Inc. Proprietary Information A Big Problem (continued) 34% counter-offer from existing employers 26% unable to meet salary expectations 19% offer from other employer 11% Long recruitment process 11% long recruitment process reasons for losing top talent
- 16. 16 Copyright © OpenSymmetry Inc. Proprietary Information Top Business Issues for Sales in 2015 Source: SIRUSDECISIONS, 2015 ISMM
- 17. 17 Copyright © OpenSymmetry Inc. Proprietary Information 1. 99% total company team attainment of sales quota 2. 75% of sales reps achieving individual quota 3. 13.1% YOY growth in total company revenue 4. 3.3% improvement (reduction of) average sales cycle *According to Aberdeen Report, Beyond the Quota: Best-in-Class Deployments of Sales Performance Management Companies deploying Best-in-Class SPM solutions experience:
- 18. 18 Copyright © OpenSymmetry Inc. Proprietary Information Significant Return on Sales Performance Investment Best-in-Class companies that invest in SPM experience this: 2X Quicker Sales 37% Faster Growth Shorter Sales Cycles 36% Lower Turnover 25%More Sales Reps Making Quota 7%
- 19. 19 Copyright © OpenSymmetry Inc. Proprietary Information success is:when it works. picture that. How do you measure success of your plans?
- 20. 20 Copyright © OpenSymmetry Inc. Proprietary Information Plans Working? Ops Core StrategicRevenue Growth Increasingly Profitable Sales Effective Penetration of New Markets Increasing Market Share Gaining Competitive Advantage Increasing Channel Loyalty Overpayments/Errors Low Ratio of Admin & IT Resources to Payees Effective Auditing and Tracking High Payee Engagement and Stability High Percentage of Payees Achieving Q Effective New Product Launch Increasing Ability to Deliver New Plans Increasing Ability to Handle Complexity and Change
- 21. 21 Copyright © OpenSymmetry Inc. Proprietary Information Placeholder Feel like we need the current state to future state slide on how we were able to execute and how we can help others to plan this out on this slide
- 22. 22 What’s your SPM Maturity Number?
- 23. 23 OS Smarter Salesforce Model SPM – Smarter Sales Force Assessment TalentAcquisition-Candidate Assessment,Selection& Onboarding TalentDevelopment-Sales CoachingandTraining SalesProcessandMethodology IncentiveCompensation TerritoryandQuotaManagement ChannelManagement Design Enabling Technologies Business Process Management Business Intelligence Sales Strategy
- 24. 24 Value Grid Assessment Example Positive Impact to Sales Performance in FY13/14 EaseofImplementation Notes: Size of bubble shows relative upfront cost 24 ICM Solution Target Setting Pay data Subs Salesforce Competency Assessment Clarify Career Maps Plan Design Prog Design Revisit Territory and Quota Alignment High Medium Low
- 25. 25 Copyright © OpenSymmetry Inc. Proprietary Information High Tech Case Study the PROBLEM the SOLUTION • Business being restructured with new leadership • Changed sales strategy • Losing market share • Under achieving on sales goals • Shift in Channel vs. Direct Sales • SPM Maturity & Assessment • Future state roadmap • Channel and territory alignment a trusted leader & proven partner. success is: We never expected to achieve 105 percent of quota in the first month. -Krista Endsley, Abila CEO
- 26. 26 Copyright © OpenSymmetry Inc. Proprietary Information the PROBLEM Pharma & Medical Devices Case Study the SOLUTION • Sales Role Assessment • Plan Design by sales role • Modeling of future state plan designs • Implementation of SPM solution a trusted leader & proven partner. success is: Providing research, development, production of bio-tech and pharmaceutical drug therapies. Needed to adapt to changing market and customer landscape & shift to a customer driven focus
- 27. 27 Copyright © OpenSymmetry Inc. Proprietary Information Ineffective leadership sponsorship Peer Support and alignment by middle management Resistance to Change from employees Most failbefore they start due to lack of resources or planning 70%of Change Efforts Fail
- 28. 28 Copyright © OpenSymmetry Inc. Proprietary Information Understanding the Scale of the Change Low Challenge Aspect High Challenge Urgency of Change Long-term/Not business critical Urgent/Business Critical Business Strategy Minor course correct Major change/ re-focus Sales Strategy Minor course correct Major change/ re-focus New Products No new products Major new products being launched New Territories Current geography, no territory re-alignment Regional expansion, major territory alignment Plan Design Minor changes Major redesign across all roles Process Change Minor changes Major redesign Technology Change Minor changes Major redesign including new systems Sales Organisation No or minor changes Major re-organisation Business Communication Two-way, transparent and regular, multiple channels One way, high level, infrequent Individual Communication Regular one to ones on performance/career mgt. Managers tend not to be open with staff Experience On large scale projects None – either poor experience of no experience 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
- 29. 29 29 Stakeholder Impact Assessment Stakeholder groups impacted by implementation Stakeholder requirements and painpoints Key potential barriers/enablers to SPM implementation Assess degree of impact from SPM, identify contexts Assess stakeholder needs to enable implementation to be successful Assess current stakeholder perspective – level of positivity/negativity toward change It is important to understand how supportive different stakeholders might be From the start of the project it is important to have the right stakeholder engagement
- 30. 30 Copyright © OpenSymmetry Inc. Proprietary Information EffectiveChangeManagement Stakeholders Assessment Communications & Training Requirements Change Capacity Risk Mitigation (Tools, Experience, Leadership) success is: Easy change management. Structured Approach
- 31. 31 Copyright © OpenSymmetry Inc. Proprietary Information the PROBLEM Insurance Case Study the SOLUTION • Complex Sales Channels, 3rd party networks • 3rd party networks • Risk of turnover, understaffed, not agile, resistant to change • Aggressive timelines, data problems • Current state assessment • Future state road map • Change Management • Readiness Assessment • Implementation of SPM solution • Migration strategy a trusted leader & proven partner. success is: Insurance and financial provider of auto, commercial, farm, homeowners and life insurance coverage.
- 32. 32 Copyright © OpenSymmetry Inc. Proprietary Information Know your challenges Know where you want to go (Future Visions) Take a structured, holistic and integrated planning approach Understand what success is and how to measure it Engage key stakeholders early and often Understand communication and training requirements Know your change capacity and risk mitigation Deliver on your sales promises!
- 33. 33 Copyright © OpenSymmetry Inc. Proprietary Information a trusted leader & proven partner. success is: Our sales organization gave [me] a standing ovation after training was presented at [our] sales meeting. -Lynn Ferrera, Hertz Senior Director of Global Compensation “ “
- 34. © Copyright 2015 The Sales Management Association. Sales Management Association Webcast 30 April 2015 Presented by The Top Sales Planning Best Practices for 2015
Editor's Notes
- OpenSymmetry is a trusted leader and global advisor that delivers Sales, HR, and Finance solutions to drive accelerated business performance. With a leading success rate across more than 20 industries, you can count on OS to deliver the comprehensive solutions you need for a proven path to rapid results – from strategy to success.
- It is human nature to problem solve and fix things so of course we immediately go to the WHAT, WHO, WHERE, HOW aspects of every challenge. What we find is that ends up not fixing the problem because we never answered WHY. We go around talking about missed performance, unexpected performance, quotas too high or too low, the plan design is too complex, why can’t we just keep it simple. Quotas, Territories, Design are all critical elements of driving your sales teams. AND measuring the success of these elements in order to determine if your achieving what was expected or not. SO WHAT….. if you don’t know what your driving towards, what is success? Why do you have to change, and what do you need to focus on to achieve your desired state of success. So often sales teams get distracted with so many other elements from processes, new training tools, activities, various comp plans and contests. If you narrow it down to one thing it was a clear vision on what success is and why it matters. Take for example the game of tennis, if you narrow it down to one laser focused goal to achieve success it is Follow the Ball and make sure you hit it back. That simple. If you do this consistently and more than the other person, you win! That simple. Okay then, if I say it’s that simple then what are the challenges? Why should I care? Let’s start with some interesting perspectives..
- The challenge is that your market is changing on you. Your customers are changing, the market is changing, your employees are changing. As referenced by Forrester Research your opportunity for growing your revenue stream is directly correlated with alignment of your organization to the market and stakeholder forces. Take on the right side the market forces and the customer…. This drives the type of business priorities on the bottom right that you need to be focused on. Thus what type of sales teams / roles you need. On the other side the stakeholders the next level of pressures… no wonder the sales, finance and HR leaders are always in a tug a war. You must understand what your businesses vision of success is... To determine the WHY of what your need for your sales team alignment. When there is misalignment you will see the missed goals, the employee turnover low engagement. All costly to a sales organization.
- Instead of a quick fix to retain talent Like just increasing salaries b/c a comp plan or process is broken You should consider if you have the right talent for selling to the right customers First, And if you do, then assess why sales reps are leaving and avoid playing the ramp game and low productivity.
- I was actually just reading on the plane the latest World at Work magazine and they had an article on the Recipe for Recognition Success and discussed that’s people stay and leave based on more than just salary… a key drive was clear line of sight to their development and success, tangible rewards. 4.6 years is the average job tenure for US workers but layer that against millennial’s it is 3.2 the lowest average among generations to date. Even lower in the leisure / hospitality industry at 2.4 years.
- Back to the clear line of sight to the sales reps goals and how to achieve. If you recall earlier my tennis analogy, companies that can provide this clear line of site will have an advantage. Even with clarity on goals, the right plans the next big challenge is the process… Sales spending time doing what’s not optimal.
- Why should I care? At OpenSymmetry we have been working with clients for over 10 years dedicated on performance management. We have seen the benefits referenced by the analysts research in the real results from over 1300 OpenSymmetry solutions across 17 industries globally. The proof in moving away from status quo is there….
- If we know from all the analyst research as well as customers experiencing these challenges that the old way is not the best way…. And we know that Companies that deploy best in class solutions experience significant benefits higher than their competitors…… Do you know if your plans are working? How do you make sure your company has a holistic sales performance approach to adapt to market changes? Why wouldn’t your company want similar benefits with lower turnover and quicker sales? Let’s hear from Jon Clark on how to determine if your Plans are working? If they are delivering on the promises planned… What approaches you can deploy to mover from your current state to future state of success and what steps to take to ensure the right collaboration and communication.
- Thanks Laura for some of the market insights and the need for alignment and integrated planning across the organization. How do you know if your plans are actually working? Add Poll Question -= Also good as Laura hands over to Jon at this time. How do you measure success of your plans? 1-Revenue Growth or profitability 2-New Market Penetration or Product Launches 3-Overpayment/Errors 4-Quota Attainment 5- Other measures
- Review of poll responses... Here are some key ways we see these measures. So often the measure of success is 1 dimensional or maybe 2 dimensional as there is such a challenge to connect all the various systems together to capture a holistic view of success. Each “user” also has a different view of successful results. How can you help identify what the end goal is of success for your organization and ensure that your sales team and operational team are aligned With meeting these goals and achieving them?
- How can you go from where you are today (current state) to achieving your vision or idea of where you want to be (future state). At OpenSymmetry we have an assessment and road map approach to help you map your future state. Moving from the initial idea, to assessment, execution and ongoing refinement. At OpenSymmetry we have worked with over 17 industries globally on over 1300 performance management solutions across HR, Sales and Finance. We hear the same comments that both Paul and Brian mention on the challenges business leaders face across their people, processes and technology solutions. Many of the same pain points other organization experience are the exact same ones we were experiencing with our rapid growth as a global organization.
- What’s your SPM Maturity number? Most clients are at between a 1.5 and 2.5 still in that operational and survival state.
- An objective and unbiased analysis of the company’s end-to-end SPM capability by an experienced third party SPM processes benchmarked against best practices; targeted feedback on improvement opportunities Understanding of what Key Performance Indicators are needed to measure and drive efficiencies in the company’s SPM Program Understanding of what technology to invest in and when to make that investment A roadmap to drive more value from the sales force and higher return on sales
- A Case Study - - -her is an example where we helped lay the future state and road map…. Hi-tech business supporting the not-for-profit sector Business being restructures with new leadership Needed to deliver a change in sales strategy and higher performance Conducted SPM healthcheck across whole sales environment Immediate increase in quota attainment Roadmap recommendations: Increase focus on healthy mix of both channel and direct sales Keay sales leadership roles evaluated Promoting existing employes to new leaderhip positions New job requisitions for key positions More specific quota Simplified comp plan Projected Benefits Achieve higher profitability on lic sles Ensure greater control of sales cycle and results Find the best fit for critical roles Motivate employees with job growth opportunities Create a more rewarding/less punitive process for comp Increase selling time and less shaodowing
- The Customer: MERCK – they provides research, development, production of bio-tech and pharmaceutical drug therapies. The Problem New Go-To-Market strategy New sales organisation and roles New territory alignment based on customer segmentation New incentive plan design framework to include all roles Implementation of SPM solutions Amended quota setting process The Solution Plan design support based on principle of a single framework for all roles: Key Account Management Inside Sales Technical support roles Sales management Modelling and implementation roll out support The Results: Reorganization and new plans to align with new company direction (people) Updated processes and tools to support new design Technology implementation to support implementation of new territory and quota management solution Who’s the customer: MerckKGA (EMD Millipore Corporation) provides solutions and services for research, development, and production of biotechnology and pharmaceutical drug therapies. It offers bioscience products and services that include antibodies and assays, protein detection and quantification, inhibitors and biochemicals, proteins and enzymes, cell culture and systems, genomic analysis, and cell analysis; lab solutions, such as chemical and reagents, IVD/OEM materials and reagents, microbiological testing and process monitoring, and related services; and process solutions, including sterile filtration, virus reduction, biopharma raw materials, drug delivery compounds, engineering, and validation services. The company also provides analytics and sample preparation, biopharmaceutical manufacturing, industrial microbiology, IVD/OEM materials and reagents, life science research, reagents, chemicals and lab ware, small molecule pharmaceuticals, and water purification products for pharmaceutical research and biotechnology. In addition, it offers biomolecular quantitation systems; RNA probes for the detection of RNA expression in living cells; imaging flow cytometers; florescent staining based systems; manifolds; embedded software for water purification systems; Chromolith HPLC columns; chromatography columns; Parteck SLC to improve the dissolution rate of therapeutics; and GMP production services for speeding up the time to clinics through products and services. It serves the research and analytical laboratories, scientific institutes, and pharmaceutical and biotechnology companies in the United States and internationally. EMD Millipore Corporation was formerly known as Millipore Corporation. As a result of acquisition of Millipore Corporation by Merck KGaA, Millipore Corporation's name got changed. The company was founded in 1954 and is based in Billerica, Massachusetts with a location in Tokyo, Japan. As of July 15, 2010, EMD Millipore Corporation operates as a subsidiary of Merck KGaA.
- Whiteboard discussion There are a number that might be relevant. Can prime the conversation with: Other elements of reward – base pay too high Readiness for change. Everyone happy with what they have Metric measurability is difficult Poor performance management Purpose of role is unclear Discussion on other aspects may provide good input here
- Effective Change Management provides a structured approach to enabling and encouraging the individual transitions required by a project and initiative With more effective change management the probability of meeting objectives on time and on budget increases significantly Effective change management results in faster speed of adoption, higher ultimate utilization and greater proficiency, which all drive higher ROI Effective change management helps eliminate unnecessary costs Change management is an effective risk mitigation tool
- This is Grange Insurance In a highly competitive market Insurance providers are constantly striving to keep up with market demands, retain customers and agents. Speed is always a key element to get to market quickly and be able to adapt to your customer and sales teams demands. Grange needed all of that and was constrained by the complexity of their plans, complex sales channels, and resources resistant to change The Result Overall awareness and support for the project Clarity of future role in production and shared service Changes continue to be advocated for APS Executive sponsorship Sales leadership Coordination with other projects and programs Profit sharing and commission flexibility INSURANCE PROFILE Industry Profile: The 125,000 insurance agencies and brokerages in the U.S. act as the "sales arm" of the insurance industry. Insurance agencies represent insurance carriers and sell policies to customers looking to minimize risks. "Captive" agents are affiliated with a single carrier. Independent agents may represent a variety of carriers. Brokers represent customers, and work with multiple carriers to determine the policy that best fits customer needs. Typical Insurance Industry Challenges include: Cyclical Sales The insurance industry is cyclical and premiums vary considerably depending on market conditions. As premiums fluctuate, commissions for agencies and brokers vary as well. Carriers Dictate Terms Insurance agencies and brokerages derive the majority of revenue from commissions earned from insurance carriers. Carriers set premiums and typically require agents to generate a minimum amount of revenue annually. Government Regulation Government regulation can affect insurance premiums, coverage, and commissions. Most states have the authority to approve or deny certain types of rate changes for premiums. Potential for Liability Some customers or groups of customers are turning to self-insurance, also known as "captive" insurance. Captive insurance is a risk management instrument that allows owners to form their own insurance company to cover estimated losses. Trends in the Market include: Technology Affects Distribution While the majority of customers prefer to purchase and renew insurance from a local agent, more customers are conducting initial research and purchasing policies online. Acquisitions Activity Rebounding With continuing soft market conditions, many companies are relying on acquisitions to deliver growth. Aging Population and Long Term Care Greater longevity and unpredictable health costs have generated interest and demand for insurance programs involving supplemental health care and long-term care. Group Health Premiums Rising Insurance carriers are raising premiums for group health care plans to cover incremental costs associated with the Patient Protection and Affordable Care Act. A typical insurance agency or brokerage operates out of a single location, employs about 5 workers, and generates just over $800,000 annually. The insurance agency and brokerage industry includes 125,000 companies that employ about 700,000 workers and generate over $100 billion annually. For property/casualty insurance, sales are about evenly divided between "direct writers" (captive agents, direct sales via Internet, and affinity groups) and "agency writers" (independent agents and brokers), according to A.M. Best Direct writers account for about 70% of personal P/C insurance sales, while agency writers account for 67% of commercial P/C insurance sales. Independent agents account for 46% of new life insurance sales, captive agents account for 42%, direct marketers for 4%, and others (such as stockbrokers) for the remaining 8%. The industry is highly fragmented – the top 50 firms account for just 25% of industry sales. Large companies include Marsh and McLennan Companies, Aon Corporation, and Arthur J. Gallagher.
- Thank you for your time! I hope you have a standing ovation at your next sales meeting!