Decoding the DNA of Sales: Aligning Capability, Role, Deployment and Compensation

Transcription

1 Decoding the DNA of Sales: Aligning Capability, Role, Deployment and Compensation Scott Sands Aon Consulting Biology has many examples of life adapting to fit the environment 2 1

2 Number of Sales Roles There are hundreds of sales roles in the best surveys with significant differences Source: Radford Global Sales Survey 3 How many sales roles exist in your company? ,000 10,000 Number of Sales Employees 2

3 Types of Specialties: Hunter vs. Farmer Untapped Sold Untapped Sold Types of Specialties: Direct vs. Indirect Manufacturer Manufacturer Rep Distributor Distributor Rep Reseller Reseller Retailer Customer Customer Customer Customer Customer Customer Customer 6 3

4 Types of Specialties: Field vs. Inside 7 Types of Specialties: Product or Service 8 4

5 Types of Specialties: Small or Large Accounts Global Large Small 9 Types of Specialties: Individual or Manager VP Mgr Mgr Rep Rep Rep 10 5

6 Types of Specialties: Process Prospect Close Fulfill 11 Conflicts with Generalization of Sales Skills, Knowledge Focus Cadence Initiative Responsiveness Teamwork Cost Productivity Specificity and Correlation of Incentives Execution of Strategy 12 6

7 Case Study: Medical Supplies Situation: Multi-billion dollar company was number 2 in market share Large sales force with significant tenure Paid on a 0/100 commission plan Cost of sales high Complication: Growth had slowed significantly in recent years The market is changing buying process Large numbers of reps approaching retirement 13 Case Study: Media & Advertising Situation: Directories company with declining revenue Large, generalist sales force with significant tenure Paid on an aggressive commission plan Cost of sales high Complication: Sales people executing against at least three different strategies Turnover high Sales force resistant to change Urgent need to return to growth 14 7

8 Focus of Sales Roles Project Management Manage a Single Line of Business Deliver High Quality Service/Products Project/LOB Focus Low SELLING High SERVING Farming Penetrate Accounts Oversee Profitability Ensure Customer Satisfaction Account Stewardship Longer-term Focus Involved with Delivery Trusted Advisor High Hunting Active Prospecting & Qualifying Cold Calling Sell New Clients Shorter-term/Sales Cycle Focus Do Not Deliver Services Low 15 ADEPT-15 Interactive Personality Test 50+ years of personality, leadership, and psychometric research 15 personality traits critical to successful workplace performance 1,470 unique statements combine for over 350,000 unique forced-choice item pairs 25 minutes to complete 100 items Most advanced and secure personality test available Adaptive multidimensional forced-choice format limits social desirability and attempts to game the test 8

9 Aon Hewitt s Personality Model Note: The ADEPT-15 personality model is based on the latest research in personality psychology is built from the well accepted Five-Factor Model (FFM) of personality along with additional leading concepts in workplace practices and research. 17 Using Technology to Control for Faking and Bias Matched Which statement on Desirability do you From agree Different with Dimensions more? I am willing to work very long hours to succeed. Ambition I like to work on tasks that require creativity. Conceptual Conclusion: 1. Technology can mitigate faking behaviors 2. Will create a more challenging test appropriate for both development and selection 18 9

10 Adaptive Algorithms How does it determine which item pairs to administer? I will sometimes push myself to do better than what others think is more than enough. Ambition I am open to handling a situation in a new way, especially if it makes things easier. Flexibility It knows how people with different personalities will respond 19 Aon Hewitt Testing Reports Personality Brief Styles Profile Competency-Based 20 10

11 Summary of Key Behavioral Differences More Important for Hunting Behavioral Flexibility Resilience Competitive Communicating with Impact Influencing Knowledge of Selling Techniques Self Confidence Polished Image Likes variety More Important for Farming Strategic Thinking Analyzing Problems Team Orientation In-depth Knowledge of Products and Services Planning and Organizing Focus on Client Service Taking Ownership Resolving Conflicts Responsiveness/Reliability 21 Style Profiles for Hunting & Farming Hunting Farming Adaptation Important for Both Task Internal Motivation & Detail Focused Teamwork Lasting relationships Achievement External Motivation Interaction Dominant & Gregarious Emotional Resilient & Optimistic 22 11

12 Teamwork Emotional Interaction Achievement Adaptation Task Importance of Personality for Hunting and Farming Hunting Farming Low Importance High Importance Drive Structure Conceptual Flexibility Mastery Ambition Power 23 Importance of Personality for Hunting and Farming Hunting Farming Low Importance High Importance Assertiveness Liveliness Composure Positivity Awareness Cooperativeness Sensitivity Humility 24 12

13 We can also test for historical hunting and farming performance Account 2012 Revenue 2013 Revenue Retention Penetration Acquisition Banco Leon $0 $51,612 $0 $0 $51,612 Banco Popular $197,471 $67,669 $67,669 $0 $0 Banesco $344,898 $962,010 $344,898 $617,112 $0 Flushing Savings Bank $507,874 $589,242 $507,874 $81,368 $0 J.C. Penney $917,340 $786,444 $786,444 $0 $0 Total $1,967,583 $2,456,977 $1,706,885 $698,480 $51,612 Percentages 124.9% 86.8% 35.5% 2.6% Benchmarks 115% 85.0% 20% 10% Visually Identifying Hunting and Farming Performance in Sales 3.1% 104.2% 100% 27.7% 73.4% 2013 Retention Penetration Acquisition

14 Blended Approach for Implementation Assessment Criteria 1. ADEPT-15 Personality Model Should score well on 2/3 of the primary traits for the role 2. Past Performance Should have highest historical performance in that category 3. Manager Rating Should be blind nominated by direct supervisor for the role 4. Market Need Should have account opportunity for the role in their geography 5. Rep Preference Should aspire to or prefer the role ROI Increasing Retention Assessment Impact on Rep Retention Improved 90 Day Retention High Scorers Low Scorers 14

15 ROI Driving Sales Assessment Impact on Sales Greater Weekly Sales by 13% Data-Driven Assessment No Assessment Case Study: Creating Sales Chemistry Situation: Large global chemical company had a fairly generic sales force The company had historically been engineering focused To achieve the next level of growth, the firm wanted to build a stronger sales force Complication: The company was losing share in some of the most profitable and fast-growing verticals Sales people felt marginalized Customers were beginning to express very different needs (with different margins) 30 15

16 ISR-T ISR-C CAM-T SE-T CAM-C SE-C NBD-T AM-T NBD-C SAM-C Sales Career Path Example Sales Professional Leadership 7 GAVP VP Sales 6 GAD GAD SE Dir SD 5 Alli. Mgr Architect IS Mgr SE Mgr RSM 4 IS Sup DSS 3 2 TSR 1 Support Support Support Support Inside Technical Field Direct Virtual Dedicated Indirect Hunter Farmer 31 Supporting Processes for the Different Sales Specialties Marketing/Demand Generation for Hunters Lead Management for Hunters Account Transition for Farmers and Hunters Fulfillment/Operations for Farmers New Product Launch/Training for Specialists Channel Support for Indirect Sales CRM for Field/Inside Partnerships, Global Accounts Sales Tracking, Crediting for Hunters 32 16

17 There are ten elements comp can use to accommodate different sales specialties 1. Business Objectives, Sales Strategy, & Roles 2. Eligibility 5. Upside Opportunity 8. Quotas/Crediting 3. Target Pay Levels 6. Measures/Weights 9. Payout Timing 4. Pay Mix 7. Mechanics 10. Administration Competitive Aligned Effective 33 Sales Compensation Variations: Hunter vs. Farmer Element Hunter Farmer Eligibility Yes Yes Target Total Compensation High (if stated) Medium Pay Mix Aggressive (40/60) Friendly (70/30) Upside High High Excellence Point High Low Performance Measures New Bookings Total Revenue Formula Mechanics Commissions Quota/Bonus Quotas/Goals Low (if used) High Threshold None High 34 17

18 Sales Compensation Variations: Direct vs. Indirect Element Direct Indirect Eligibility Yes Yes Target Total Compensation Higher (if stated) Medium/Lower Pay Mix Aggressive (40/60) Friendly (70/30) Upside High Medium Excellence Point High Medium Performance Measures New Bookings Total Revenue Formula Mechanics Commissions Quota/Bonus Quotas/Goals Low (if used) Higher Threshold Low High 35 Sales Compensation Variations: Field vs. Inside Element Field Inside Eligibility Yes Yes Target Total Compensation High (if stated) Low Pay Mix Aggressive (40/60) Medium (60/40) Upside High High Excellence Point Medium Medium Performance Measures New Bookings New Bookings Formula Mechanics Commissions Commissions Quotas/Goals Low (if used) Low Threshold None None 36 18

19 Sales Compensation Variations: Generalist vs. Specialist Element Generalist Specialist Eligibility Yes Yes Target Total Compensation Medium Medium Pay Mix Medium (60/40) Medium (60/40) Upside High High Excellence Point Medium Medium Performance Measures New Bookings Region Product Revenue Formula Mechanics Commissions Quota/Bonus Quotas/Goals Medium High Threshold Low Medium 37 Sales Compensation Variations: Territory vs. Large Accounts Element Territory Large Accounts Eligibility Yes Yes Target Total Compensation Lower (if stated) Higher Pay Mix Aggressive (40/60) Friendly (70/30) Upside High High Excellence Point High Low Performance Measures New Bookings Total Revenue, Profit Formula Mechanics Commissions Quota/Bonus Quotas/Goals Low (if used) High Threshold Low High 38 19

20 Sales Compensation Variations: Individual Contributor vs. Manager Element Individual Manager Eligibility Yes Yes Target Total Compensation Medium Higher Pay Mix Aggressive (40/60) Medium (60/40) Upside High Medium Excellence Point High Low Performance Measures New Bookings Total Revenue, Profit Formula Mechanics Commissions Quota/Bonus Quotas/Goals Low (if used) High Threshold Low (if used) High 39 Questions 40 20

21 Professional Biography Scott Sands, Partner Sales Force Effectiveness Practice Leader Scott Sands is located in Atlanta, Georgia. He works with senior executives in large, global companies to identify opportunities for revenue growth, select the proper sales channels, refine selling processes and messages for specific market segments, staff organizations with the right type and number of sales professionals, set fair but challenging goals, and design motivational incentives. He has 20 years of experience in industry and with leading professional service firms, including Briggs & Sands Consulting, Sibson Consulting, The Alexander Group, and Watson Wyatt. Aon Hewitt Consulting 3350 Riverwood Pkwy, Ste 80 Atlanta, GA m Scott Sands, Partner Sales Force Effectiveness His recent client work includes: Fortune 1000 healthcare, technology, pharmaceutical, insurance, banking, media, and manufacturing companies such as: AT&T, BASF, Cisco Systems, Covidien, CSC, Dell, Diebold, Ecolab, EMC, Fiserv, General Electric, Genuine Parts, Graybar, Hilton, Intel, Johnson & Johnson, McKesson, Medtronic, MetLife, NRG, NASDAQ, Nationwide, Northrop Grumman, Paychex, Philips Healthcare, Roche, Symantec, Tata, and Verizon. Scott is a frequent author and speaker at national conferences, including the Sales Management Association and WorldatWork. His work has appeared in Selling Power, Workspan, SAMA's Velocity, and Sales & Marketing Executive Review. In 2006, he co-authored the WorldatWork's bestselling book Sales Compensation Essentials. Scott holds a bachelor's degree in Electrical Engineering and Mathematics from Vanderbilt University, and an M.B.A. with a focus in Marketing and Organization Effectiveness from The University of Texas. Scott oversees all dedicated Sales Force Effectiveness consulting resources in the Americas. He coordinates with global Aon Hewitt Global Performance, Reward & Talent resources to ensure that this fast-growing segment delivers proven approaches, cutting-edge insight, and client business impact. 21