2011 May10 Sma Panel On Sales Productivity

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Panel Discussion Guide: Driving Immediate Productivity Improvement

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2011 May10 Sma Panel On Sales Productivity

  1. 1. March 24, 2008 Focusing Sales Operations’ Productivity Impact Panel Discussion: Driving Immediate Productivity Improvement May 10, 2011
  2. 2. Panel AgendaDriving Immediate Productivity ImprovementDiscussion on Recent Experiences – Yours and OursQuestions…. 1 Proprietary & Confidential
  3. 3. 3 Things to Drive Immediate Productivity…1. Identify Highest Value Customers2. Select the Right Channels3. Use Metrics that Enable Active Performance Managment 2 Proprietary & Confidential
  4. 4. Identify Highest Value CustomersGrowth rates vary significantly within an industries;pinpointing the relative sales potential of segments withinmarkets is critical. 3 Proprietary & Confidential
  5. 5. Identify Highest Value Customers, cont’dA great place to start is with MAP analysis of your ownaccount, then take a close look at the accessible market! Maintain = Acquire = A New Penetrate = Customers Prospects A Current M P Current New Products Organic Strategies have a success rate of over 30%* Source: Research by Bain Capital, 2009 4 Proprietary & Confidential
  6. 6. Identify Highest Value Customers , cont’dCreating groups of customers with similar needs andbuying processes enables efficient and effective salescoverage. Four Dimensions for Segmenting Customers 1. Customer Descriptors/Demographics 2. Purchasing Behavior 3. Needs 4. Product Preferences Treating all customers the same significantly reduces the return on sales investments and inflates Opex/Revenue! 5 Proprietary & Confidential
  7. 7. Select the Right Channels Manufacturer Strong middle-market focus as most large EUs and OEMs prefer to buy factory-direct (at least initially)Most large EUsand OEMsprefer to deal Company Sales Reps / Agentsfactory direct Distributors & Catalogs • Large distributors & catalogs primarily provide Small/Mid Large OEMs VAR / Integrator access to products vs. selling OEMs Focus primarily • Regional / smaller distributors on barcode & (such as Current) sell more POS markets actively as a way to compete OEM’s Channel against larger competitors OEM’s Channel End User Customer 6 Proprietary & Confidential
  8. 8. Select the Right Channels, cont’dThree factors guide channel selection: 1) Customer Preferences/Needs, 2) Cost,and 3) Product Lifecycle Market Size Direct Sales / Mfg Reps ($-value) VARs / Integrators Distributors / Hyper Efficient Distributors Market Market Share Cost Adoption Coverage Growth Reduction Time Emergence Growth Early Maturity Late Maturity Selling Cost: ~30% ~20% ~10% ~<6% 7 Proprietary & Confidential
  9. 9. Use Metrics that Enable Active Performance ManagementThe best dashboards of metrics: Support Strategic Objectives Provide Early Warning of Potential Trouble Inform Decision Making Strike a Balance between Internal and External Measures Cover All Four Dimensions of Performance Enable a Cadence of Active Sales Management! 8 Proprietary & Confidential
  10. 10. Use Metrics that Enable Active Performance Management, cont’d Does your Sales Organization use a full dashboard of metrics?Performance = Capability x Productivity x Effectiveness x Efficiency • Total Sales • Revenue or • Overall Close • Sales Cycle Capacity Profit/Rep Rate Time/Stage • % of Reps at • Opex/Sales • Close • Overall Cycle Strategic • # of Deals Rate/Stage Time/Deal Competence Closed/Mo, Qtr, • Close Rate by • Sales Expense • % Time Spent Yr Target Segment Ratio Selling • Avg. Deal Size • Cross-sell Ratio • $ Sales • % Filled • # of Deals at • % Discount Support/Deal Positions Each Sales • Net Promoter • Level of FTE Stage Score Engagement • $ of Deals at • % of Overall Each Sales Goal Stage • % of New Acct Acquisition Goal • % of Acct. Penetration Goal • % Acct. Retention Goal 9 Proprietary & Confidential
  11. 11. Discussion - Your Experiences… Questions… 10
  12. 12. Contact InformationThomas G. Knight Erik G. BirkertsPartner Partner866-549-3191 landline 866-549-3191 landline630-364-8805 mobile 224-554-9137 mobiletknight@evergreengrowthadvisors.com ebirkerts@evergreengrowthadvisors.comMailing Address: 736 N. Western Avenue, Suite 253, Lake Forest, IL 60045Website Address: www.evergreengrowthadvisors.com 11 Proprietary & Confidential
  13. 13. Thomas G. Knight, PartnerExpertise Professional BackgroundTom has operational and consulting experience in all aspects of Tom has 20 years of Sales and General Managementsales strategy, sales operations, and sales management. Tom experience. He began his career in Sales with WilTelhas served clients in North America, Europe and Asia and is Communications Systems where he ultimately lead the firm’spublished and quoted on sales strategy and sales management National Account effort in the not-for-profit healthcare market.issues. He specializes in aligning Sales Strategy with Sales After earning an MBA, Tom began his consulting careerOrganization Structure and Performance Management Systems where he has held the role of Practice Leader and Managingto increase the predictability and sustainability of revenue growth. Director with Sibson & Company and Mercer. He hasHe has a strong strategic and implementation focus that serves served companies in numerous industries, including: medicalto engage senior management quickly in understanding and products, basic materials, high technology, insurance,committing to proposed change. financial services, and durable goods manufacturing.Notable Achievements Education• Implemented a new sales strategy and account management Tom has a Masters in Business Administration from Loyola process for a private equity owned manufacturing company University and a Bachelor in Science in Commerce, with which led to significant improvement in margins and revenue. special attainments, from Washington and Lee University.• Analyzed the agency operations of captive independent Professional Affiliations/Published Works agents of a large national insurance company and developed an agent training and management processes to increase Tom has been published in MDDI Magazine, Sales and effectiveness and efficiency. Marketing Magazine, and Selling Power. He is also frequently quoted in sales and business publications Tom• Developed a new go-to-market strategy and leaner sales has been a frequent speaker on Sales Effectiveness and was organization structure for a large foreign beverage distributor, formerly an instructor on Sales Compensation with the increasing the available sales time high value markets by 25%. American Management Association. He is also a visiting lecturer at Loyola and DePaul’s Graduate Schools of• Conducted a custom survey of sales management practices Business and a member of the Sales Management for a national diagnostic equipment manufacturer which lead Associations Board. to sales process changes and a redeployment of the sales force. 12 Proprietary & Confidential
  14. 14. Erik G. Birkerts, PartnerExpertise Professional BackgroundErik has years of practical, hands-on experience centered on the Erik most recently served as Chief Operating Officer and Executivedesign, implementation and/or repositioning of go-to-market strategies. Vice President of Orion Energy Systems (NASDAQ: OESX), aIn particular, he specializes in leveraging indirect channels and leading manufacturer of energy efficient, high-performance lightingpartnerships to achieve cost-effective market coverage and profitable systems and renewable technologies. Orion more than doubledrevenue growth. His experience as a public company operating its revenues and became publicly traded during his tenure. Erikexecutive gives him unique insight on the challenges faced by was originally recruited to Orion after successfully consulting withmanagement teams and positions him to engage senior management to the company on the design of its indirect sales channel strategy,work collaboratively towards high value outcomes. which now contributes nearly 50% of Orion’s revenues. Prior to Orion, Erik had a successful consulting career as President of TheNotable Achievements Prairie Partners Group, a boutique consulting firm he co-founded. Working with clients as diverse as Microsoft, Hewlett-Packard,• Member of the senior management teams for two IPOs of venture Ingersoll Rand, DeVry University and numerous private equity and capital backed companies. Raised and structured numerous private equity financings. venture capital funded companies, Erik developed strategies to capitalize on growth opportunities for clients. He began his career• Designed and launched channel strategy that now contributes nearly as a financial analyst and bank examiner at the Federal Reserve 50% of Orion Energy Systems (NASDAQ: OESX) revenue. Managed channel sales and support team to deliver high double-digit Bank of New York, working on international banking transactions. revenue growth with profit margins greater than those witnessed in Education the direct sales channel.• Executed comprehensive channel audit of key resellers and VARS Erik earned his MBA at the University of Chicago Booth School of for world’s largest software company. Analysis identified Business and his BA with honors in Economics and International competencies, readiness to launch new product initiatives, “wallet Relations from Tufts University. share” and levers for future growth. Professional Affiliations/Published Works• Created strategic roadmap for international expansion and M&A for a publicly traded for-profit education company. Analysis culminated in Erik’s work has been featured in The Deal, Mergers & Acquisitions, sizable acquisition in Brazil. The Chicago Tribune, The Chicago Sun Times and cited by the• Collaborated with turn-around firm to restructure sales and USDA. He is an Advisor to The Clean Energy Trust and guest operations of a privately- held food company to position company for lectures at the University of Chicago Booth School of Business. He sale to strategic acquirer. Deal awarded “2006 Transaction of the is also a frequent speaker and panel participant on issues of sales, Year” by the Turnaround Management Association and “Manufacturing Deal of the Year” by The M&A Advisor. distribution and strategic growth at investor, clean technology and venture capital conferences. 13 Proprietary & Confidential

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