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CASE STUDY PRESENTATION
                           Paris, 8 october 2009


      TURNING
   AROUND A WEAK
    PERFORMING
A
 ct
    SALES TEAM
   ua
      lly
            av
               ai
                  la
                       bl
                         e
                                   By Erik Van Rompay
WHO AM I ?
                  bl
                     e   I am an interim
               ila

     lly
           av
              a
                               executive
    a
  tu
Ac                        specialised in
                          turning around
                               high-tech
                               companies

                           http://vanrompay.online.fr
I present today
   2 CASES…


    “it is full part of my
   portfolio… but gives a
 restricted view of my “360
degrees” turnaround activity”
CASE 1 : Retail company
 (entertainment products)

SITUATION (view given by the board)
- sales revenue dropping since 2 years
- an old product line at the end of life
- new product line is a disaster (nobody wants it)


MY MISSION : restructure the activity so
the company can sell their new product line

Team = 9 sales people (+ 2 admin)
STEP 1 : AUDIT

AUDIT 1 : Market situation
- Pricing of the product lines (old & new)
- Comparison with the 2 main competitors

- Result : pricing + positioning are weak but OK


AUDIT 2 : Prospect Decision Criteria
Answering the question : Why does someone
want to buy with us ?
Brand name      Sales         Written   Oral skills
 and image   relationship   documents   (& demo)
   19%          28%           35%         18%
STEP 1 : AUDIT

RESULT :
- Brand name : poor as the company was a
  newcommer (and did not deliver).
- Brand image : poor (the sales reps didn’t even
  posses a presentation of the company)
- Sales relationship : poor (no methodology)
- Written documents : poor -> one A4 sheet with
  only text to present the new product line
- Oral presentation : poor -> not prepared and
  not consistent
- Team : 9 individual sales people so 9 different
  styles to sell the products
AUDIT – case 1

AUDIT 3 : sales incentives
There was no sales incentive to sell the new
product line !
Even worse… the sales rep got 30% more
revenue by selling the old products !

AUDIT 4 : product quality
Poor delivery & badly packaged (not sexy
enough)

AUDIT 5 : Customer needs
OK (the first 2 users loved the new product)
ONCE
  YOU KNOW
THE PROBLEM

YOU HAVE THE
  SOLUTION
THE ACTION PLAN
STRUCTURING                              EDUCATE THE
 THE SALES                              SALES REPS TO
   CYCLE                                SELL THE NEW
                                        PRODUCT-LINE

           CREATING A                              CREATING OF
             VISUAL                                 A STRONG
            IDENTITY                               SALES PITCH
         Full Sales Documents Package

                                  SOLVING OF
  CREATING A                                        REPACKAGING
                                      THE
   MARKET                                           THE PRODUCT
                                  INCENTIVES
 RECOGNITION                         ISSUE
Newcommer = Higher Innovation




     DELAY AUDIT+IMPLEMENTATION : 3 MONTHS
         SALES ON SCOPE 3 MONTHS LATER
Also.. the 9 individual
  sales people working
independently… became a
   a united sales TEAM
CASE 2 : Internet Startup
SITUATION (view given by the board)
- sales revenue dropping fast since 6 months
- no software upgrade in the past 6 months
  (unable to deliver new releases/bug repairs)
- “we” are too expensive so we don’t sell our
  products at the right price (so request to do
  heavy cost-cutting)
- Market with strong competition


MY MISSION : solve the problem
7 salespeople (+1 admin)
STEP 1 : AUDIT

AUDIT 1 : Market situation
- Pricing of the product line
- Comparison with the main competitors

Result : pricing + positioning are at market
average so OK (for the time being)

AUDIT 2 : Prospect Decision Criteria
Answering the question : Why does he want to
buy with us ?
Brand name      Sales         Written   Oral skills
 and image   relationship   documents   (& demo)
   19%          28%           35%         18%
AUDIT – case 2

RESULT :
- Brand name : Strong (so OK)
- Brand image : OK
- Sales relationship : poor (no methodology)
- Written documents : OK (just needed a slight
  tuning)
- Oral presentation : OK


Main problem identified:
- no methodology to track prospects, neither to
  identify the leads to track in priority
AUDIT – case 2

AUDIT 3 : sales incentives
In line so OK

AUDIT 4 : product quality
- Poor delivery
- Unstable product & unstable platform

AUDIT 5 : Customer needs/requirements
No time to execute
- Several board members confirmed the
  product itself was perfect…
ONCE
  YOU KNOW
THE PROBLEM

YOU HAVE THE
  SOLUTION
THE ACTION PLAN…1
STRUCTURING                         LAUNCHING
 THE SALES     EDUCATE THE         OF A QUICK-
   CYCLE      SALES REPS TO          WIN to the
              IDENTIFY REAL         market as a
                  LEADS            sign that the
  IMPLEMENT
                                   company was
    SALES
                     CREATING OF       again
  REPORTING
                     A NEW SALES   marketleader
                        PITCH            …
        SOLVING OF
            THE                               O
                                    COST     N
        TECHNICAL                  CUTTING
         PROBLEMS




   DELAY AUDIT+IMPLEMENTATION : 2 MONTHS
     SALES DID INCREASE…. But not enough
AUDIT 2 – Alignment
As we did not execute
AUDIT 5 : Customer needs/requirements
We didn’t identify a major “sales” problem :
- all our documents and salespitch were made
  for IT people (IT Directors, webmasters…) but
  it was mainly Marketing and/or Sales people
  that were deciding the purchase of our
  product.

SOLUTION : reworking all documents AND all the
sales pitches to have, depending on the client and
the decission process, a different sales approach.
RESULT – case 2

Sales up by 70% after 6 months
The company catched up and sales numbers
were again on scope as defined in the 3 years
business plan.




To be noted : this all requested intensive changes …
and 5 of the 7 sales people left the company within
the year. This did not disturb the sales numbers
neither other activities in the company.
THANK YOU FOR YOUR
ATTENTION



If you have any
question…
don’t hesitate
to email me…
               @online.fr
      vanrompay

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Executing a Sales Force Turnaround

  • 1. CASE STUDY PRESENTATION Paris, 8 october 2009 TURNING AROUND A WEAK PERFORMING A ct SALES TEAM ua lly av ai la bl e By Erik Van Rompay
  • 2. WHO AM I ? bl e I am an interim ila lly av a executive a tu Ac specialised in turning around high-tech companies http://vanrompay.online.fr
  • 3. I present today 2 CASES… “it is full part of my portfolio… but gives a restricted view of my “360 degrees” turnaround activity”
  • 4. CASE 1 : Retail company (entertainment products) SITUATION (view given by the board) - sales revenue dropping since 2 years - an old product line at the end of life - new product line is a disaster (nobody wants it) MY MISSION : restructure the activity so the company can sell their new product line Team = 9 sales people (+ 2 admin)
  • 5. STEP 1 : AUDIT AUDIT 1 : Market situation - Pricing of the product lines (old & new) - Comparison with the 2 main competitors - Result : pricing + positioning are weak but OK AUDIT 2 : Prospect Decision Criteria Answering the question : Why does someone want to buy with us ? Brand name Sales Written Oral skills and image relationship documents (& demo) 19% 28% 35% 18%
  • 6. STEP 1 : AUDIT RESULT : - Brand name : poor as the company was a newcommer (and did not deliver). - Brand image : poor (the sales reps didn’t even posses a presentation of the company) - Sales relationship : poor (no methodology) - Written documents : poor -> one A4 sheet with only text to present the new product line - Oral presentation : poor -> not prepared and not consistent - Team : 9 individual sales people so 9 different styles to sell the products
  • 7. AUDIT – case 1 AUDIT 3 : sales incentives There was no sales incentive to sell the new product line ! Even worse… the sales rep got 30% more revenue by selling the old products ! AUDIT 4 : product quality Poor delivery & badly packaged (not sexy enough) AUDIT 5 : Customer needs OK (the first 2 users loved the new product)
  • 8. ONCE YOU KNOW THE PROBLEM YOU HAVE THE SOLUTION
  • 9. THE ACTION PLAN STRUCTURING EDUCATE THE THE SALES SALES REPS TO CYCLE SELL THE NEW PRODUCT-LINE CREATING A CREATING OF VISUAL A STRONG IDENTITY SALES PITCH Full Sales Documents Package SOLVING OF CREATING A REPACKAGING THE MARKET THE PRODUCT INCENTIVES RECOGNITION ISSUE Newcommer = Higher Innovation DELAY AUDIT+IMPLEMENTATION : 3 MONTHS SALES ON SCOPE 3 MONTHS LATER
  • 10. Also.. the 9 individual sales people working independently… became a a united sales TEAM
  • 11. CASE 2 : Internet Startup SITUATION (view given by the board) - sales revenue dropping fast since 6 months - no software upgrade in the past 6 months (unable to deliver new releases/bug repairs) - “we” are too expensive so we don’t sell our products at the right price (so request to do heavy cost-cutting) - Market with strong competition MY MISSION : solve the problem 7 salespeople (+1 admin)
  • 12. STEP 1 : AUDIT AUDIT 1 : Market situation - Pricing of the product line - Comparison with the main competitors Result : pricing + positioning are at market average so OK (for the time being) AUDIT 2 : Prospect Decision Criteria Answering the question : Why does he want to buy with us ? Brand name Sales Written Oral skills and image relationship documents (& demo) 19% 28% 35% 18%
  • 13. AUDIT – case 2 RESULT : - Brand name : Strong (so OK) - Brand image : OK - Sales relationship : poor (no methodology) - Written documents : OK (just needed a slight tuning) - Oral presentation : OK Main problem identified: - no methodology to track prospects, neither to identify the leads to track in priority
  • 14. AUDIT – case 2 AUDIT 3 : sales incentives In line so OK AUDIT 4 : product quality - Poor delivery - Unstable product & unstable platform AUDIT 5 : Customer needs/requirements No time to execute - Several board members confirmed the product itself was perfect…
  • 15. ONCE YOU KNOW THE PROBLEM YOU HAVE THE SOLUTION
  • 16. THE ACTION PLAN…1 STRUCTURING LAUNCHING THE SALES EDUCATE THE OF A QUICK- CYCLE SALES REPS TO WIN to the IDENTIFY REAL market as a LEADS sign that the IMPLEMENT company was SALES CREATING OF again REPORTING A NEW SALES marketleader PITCH … SOLVING OF THE O COST N TECHNICAL CUTTING PROBLEMS DELAY AUDIT+IMPLEMENTATION : 2 MONTHS SALES DID INCREASE…. But not enough
  • 17. AUDIT 2 – Alignment As we did not execute AUDIT 5 : Customer needs/requirements We didn’t identify a major “sales” problem : - all our documents and salespitch were made for IT people (IT Directors, webmasters…) but it was mainly Marketing and/or Sales people that were deciding the purchase of our product. SOLUTION : reworking all documents AND all the sales pitches to have, depending on the client and the decission process, a different sales approach.
  • 18. RESULT – case 2 Sales up by 70% after 6 months The company catched up and sales numbers were again on scope as defined in the 3 years business plan. To be noted : this all requested intensive changes … and 5 of the 7 sales people left the company within the year. This did not disturb the sales numbers neither other activities in the company.
  • 19. THANK YOU FOR YOUR ATTENTION If you have any question… don’t hesitate to email me… @online.fr vanrompay