Design Thinking to Solve Your Biggest Sales Challenge · 2019-08-27 · •Consistent, improved...
Transcript of Design Thinking to Solve Your Biggest Sales Challenge · 2019-08-27 · •Consistent, improved...
Page 1 © 2019 SalesGlobe
August 2019
www.SalesGlobe.com(770) 337-9897+44 (0)20 7250 4754
Quotas!Design Thinking to Solve Your Biggest Sales Challenge
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hiWelcome!
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For more information:
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We are rethinking sales.SalesGlobe is a sales innovation firm that solves challenging sales problems. We work with our clients to implement solutions that give them a significant ROI.
rethink
why?Our Story- Sales Innovation
Mark Donnolo Michelle Seger
Why do companies repeat the same old solutions?
Why do they use benchmarks and current practices as the answer?
Why do they leave themselves vulnerable to competition?
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today• What’s the Problem?
• Redefining Your Problem- Sales Design Thinking
• Building Blocks-Three Dimensions of the Quota Success Model
• Taking Action
Topics
SalesDesign ThinkingPrinciple
Walk Away from the Problem. Leverage the assimilation powers of the mind. Pose a question and let it percolate in the background.
Where were you when you thought of your last great idea?
What’s the Problem?
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Sale
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gaspQuotas- The Canary in the Coalmine
Q
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issuesSetting and ManagingEffective Quotas
61%
Aligning Sales CompensationWith the Strategy
25%
Hiring and Retaining Top Talent 31%
45%Implementing an Effective Sales Process
Developing an Actionable Sales Strategy
48%
Coaching and Developing the Team
27%
Integrating Organizations FromMergers and Acquisitions
25%
Top Sales Effectiveness Challenges
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?What…are the pain points?
How and When…did it happen and develop?
Who…was involved?
Where…was it happening?
Why…was it done this way?
Understanding the Story
What…• Frozen engine.• No oil
How and When…• Car just stopped• Had prior accident and repairs• Changed the oil recently but no oil?
Who…• Auto association- incorrect diagnosis• Repair shop after the prior accident
Where…• Engine froze in NC but repairs in GA• Subsequent oil changes in GA
Why…• Prior shop was in a hurry• Missed the rag in the engine
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challenges
His
tory
Pro
cess
Be
lief
Many Challenges are People and Process Related.
His
tory
Alig
nm
en
t
Cap
acit
y
Org
aniz
atio
nal
Pri
ori
tie
s
Info
rmat
ion
Be
lief
Pro
cess
His
tory
Alig
nm
en
t
Cap
acit
y
Org
aniz
atio
na
l Pri
ori
tie
s
Info
rmat
ion
Be
lief
Pro
cess
55%52%
42%39%
27%
20% 20%
0%
10%
20%
30%
40%
50%
60%
Quota settingis based onhistory and
notopportunity
Reconcilingbottom-upinput withtop-down
goals
Salescapacity
relative toquota
requirements
Quotas aretoo heavilydriven byFinance
Data gapsadd
challenge tosetting
effectivequotas
Marketopportunitynot factoredinto quota
setting
Reps don’t believe in the quota setting
process
Be
lief
His
tory
Bo
tto
m-U
p
Cap
acit
y
Fin
ance
-Dri
ven
Dat
a
Mar
ket
Top Quota Challenges- The Symptoms
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left
L
Powerful Left-Brained Sales Models
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The Revenue RoadmapInsight
Voice of the Customer
Macro Market
Environment
Competitor Performance
Business Performance
Enablement
Sales Strategy
Products & Services
Segmentation & Targeting
Value Proposition
Approach to Market
Customer Coverage
Sales Channels
Sales Roles & Structure Sales Process Sales
Deployment
Incentive Compensation
& Quotas
Recruiting & Retention
Training & Development
Tools & Technology
Charts an actionable growth plan.
Matches roles, resources, and process to customer needs.
Aligns execution with the growth strategy.
Provides information for planning and strategy.
leftStrategic Context- The Revenue Roadmap
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C-Level Goals & Sales Roles
TargetPay
Pay Mix
1
2Upside
Potential
3
Performance Threshold
4
5Levels & Timing
6
Measures & Priorities
Evaluation
12
Operations
11
Governance
10
Objectives & Quotas
9Team
Alignment
8
Mechanics
7
leftThe Sales Compensation Diamond
Redefining Your Problem
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right
RL
Sales Design Thinking
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right
1. Articulate Problem
Statement
2. Redefine Challenge Question
3. Think
Horizontally
Understand the Story
Combine Options
Look for Parallels
Create Solution Vision
4. Develop Vertically
5. Manage Change
Refine the Few
Test Readiness
Implement & Communicate
Get the Initial View
Investigate Why
E n g a g e t h e O u t s i d e r
. ? ….. ...
Sales Design ThinkingSM
Sales Design Thinking
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right
1. Articulate Problem
Statement
2. Redefine Challenge Question
Understand the Story
Create Solution Vision
Get the Initial View
Investigate Why
E n g a g e t h e O u t s i d e r
. ?Sales Design ThinkingSM
Practicing the First Two Steps
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Case:Automotive Electronics Company
1. Articulate Problem
Statement
.
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problemWhat They Saw
Lagging Quota Attainment
1. Articulate Problem
Statement
.
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problemWhat They Saw
Year 1 Quota Attainment Percent
Year
2 Q
uo
ta A
ttai
nm
en
t P
erc
en
t
Sporadic YoY Performance
1. Articulate Problem
Statement
.
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We need to fix the quota process because
the organization is underperforming.
1. Articulate Problem
Statement
.problemWhat They Thought
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2. Redefine Challenge Question
?
?What…are the pain points?
How and When…did it happen and develop (the story)?
Who…was involved (executives, roles)?
Where…was it happening (globally, regions)?
Why…was it done this way?
Understanding the Story
But What’s the Real Challenge?
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?Understanding the Story
What…• Too many reps were below quota (only 20% attaining) dragging company performance.
How and When…• Company started with core electronics. Grew through acquisition (antennae, GPS).• Varied sales organization integration. Numerous independent teams. Inconsistent design.• Increased competition and higher sales expectations. Porpoising YoY sales performance.
Who…• Senior leadership did opportunistic M&A. Fine as long as the market was healthy.• As competition increased, Finance became the pit bull for the C-level.
Where…• Sporadic performance across global markets.• Turnover highest in 75th p performers and reps with <2 years tenure with no ramp plan.
Left the mid-performers with no new talent flow.
Why…• Aggressive M&A growth and declining market created pressure from investors and debt
holders creating pressure on sales leaders via finance and turnover with lagging results.
2. Redefine Challenge Question
?
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?What…are the pain points?
How and When…did it happen and develop (the story)?
Who…was involved (executives, roles)?
Where…was it happening (globally, regions)?
Why…was it done this way?
Understanding the Story !Creating a Solution Vision
What…is a successful outcome?
How and When…could it happen (at once, over time)?
Who…should be involved (executives, roles)?
Where…should this happen (globally, regions)?
Why…would it be beneficial or be resisted?
2. Redefine Challenge Question
?
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!Creating a Solution Vision
What…• Raise sales organization quota performance (50% to 70%)• Company revenue goal attainment.• Market opportunity-based goals.
How and When…• Staged introduction across the global organization.
Who…• Lowering turnover for high performers and new hires • Consistent, improved organization design for the sales team.• Engaging finance and increasing confidence in revenue predictability.• Engaging finance and sales as a unified team on solution development and implementation.
Where…• Across all markets, most importantly in the markets with the greatest competition.
Why…• A benefit to shareholders with increased, predictable growth. To sales with stronger
growth and lower turnover. To finance with manageable growth and cost of sales.
2. Redefine Challenge Question
?
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Redefined Challenge Question
How can we develop a:
• Market opportunity-based quota solution that
• Drives company revenue goal attainment,
• Raises sales organization quota performance,
• Across all markets, especially the most competitive,
• With year-to-year consistency,
• Contributes to lower turnover for top performers and new hires,
• And responds to an improved sales organization design,
• While engaging finance and sales as a unified team?
2. Redefine Challenge Question
?
Building Blocks- Three Dimensions of the Quota Success Model
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Bottom-Up
Top-Down
Bottom-Up
Top-Down
Corporate Goal
First Level Allocation:Markets and Business
Units
Second Level Allocation:
Regions
Third Level Allocation:Front Line
Investor ExpectationsBusiness Requirements
quotasQuota Allocation Flow
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people
Bottom-Up
Top-Down
Top-Down
Roles
Engagement
Corporate Goal
First Level Allocation:Markets and Business
Units
Second Level Allocation:
Regions
Third Level Allocation:Front Line
Bottom-Up
Investor ExpectationsBusiness Requirements
Sales Capacity
People
Market Opportunity
The Quota Success Model- People
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people
Determine Market Oppty
Set the Corporate
Goal
Allocate to Major BUs
or Geos
Allocate to Field Mgrs.
Determine Org Sales Capacity
Allocate to Reps
Finance
CFO
Division, Region Sales Leadership
Marketing
Sales Operations
Sr. Sales Leadership
First Line Sales Management
Board
Process Steps
Pla
yers
Provide Bottom-Up Goal
Input
CEO, COO, President
L = Mostly Lead
S = Mostly Support
C = Combination
Reconcile Top-Down
with Bottom-Up
1
2.2
10
2.4
3
0.8
4.6
6.1
1.8
Overall Engagement(1-10 Scale)
Organization Engagement
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1. Understand the Motivators for Each Function
2. Create a Common Definition of Success
3. Develop a Process with Rules of Engagement
4. Agree to Methodologies for Each Market Type and Sales Role
5. Look to Senior Leadership to Set the Tone of Teamwork
peopleHow Can We Work Together?
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opportunity
Bottom-Up
Top-Down
Top-Down
Market Opportunity
Segments
Macro Environment
Offers
Corporate Goal
First Level Allocation:Markets and Business
Units
Second Level Allocation:
Regions
Third Level Allocation:Front Line
Bottom-Up
People
Investor ExpectationsBusiness Requirements
Sales Capacity
The Quota Success Model- Market Opportunity
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opportunityMethod
Market FactorsHistorical base with modifications based on market differences
77%
Percent of Companies
Opportunity ForecastPipeline build combined with opportunities for retention, penetration, acquisition
56%
Account PlanningDetailed account level strategy and forecasting
45%
Account PotentialPredictors of sales potential at the account level
26%
Easy first step to move beyond historical
Rationale
Known information on accounts that comprise significant opportunity
Leverages strategic planning for major accounts
Challenging due to accurate data requirements but effective for heat mapping the market
The Most Common Opportunity Methods
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capacity
Bottom-Up
Bottom-Up
Top-Down
Market Opportunity
Corporate Goal
First Level Allocation:Markets and Business
Units
Second Level Allocation:
Regions
Third Level Allocation:Front Line
Top-Down
People
Investor ExpectationsBusiness Requirements
Sales Capacity
Time
Talent
Workload
The Quota Success Model- Sales Capacity
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capacityAnnual Sales
Capacity
Sales Time
Workload per Account Won
=Number of
Accounts Closed per Year
xAverage
Revenue per Account
=
Calculating Sales Capacity- The Fundamentals
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capacityAnnual Sales
Capacity
Sales Time
Workload per Account Won
=Number of
Accounts Closed per Year
xAverage
Revenue per Account
=
$4,000,000per Rep
1,000 hrs.(2,000 hrs. x 50% Sales Time)
63 hrs.=
16 Accounts Closed
per Yearx $250,000 =
How can you increase sales capacity looking at the components above?
1. Time. Decontaminate roles to increase sales time allocation.
2. Workload. Decrease workload per account through pipeline management.
3. Talent. Inventory, develop, and upgrade your team to increase revenue per sale.
Calculating Sales Capacity- The Fundamentals
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methods
Perspective
All Equal
History Predicts the Future
Market Differences
Predictors of Opportunity
Buyer- Specific
Anticipated Opportunities
Historical Potential
Account Orientation
General
Specific
Flat
Historical
Market Factors
Account Potential
Opportunity Forecast
Account Planning
The Quota Methods Continuum
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methods
Quota Method
Small/Mid
Accounts
Major
Accounts
Strategic/
Global
Accounts
Current
Customer
Accounts
New
Customer
Accounts
Total
Flat 19% 6% 6% 16% 23% 42%
Flat Tiered 17% 16% 10% 15% 16% 35%
Historical 19% 42% 29% 41% 3% 65%
Market Factors 32% 35% 39% 23% 32% 77%
Account Potential 10% 15% 16% 6% 10% 26%
Opportunity
Forecast23% 30% 31% 30% 26% 56%
Account Planning 3% 26% 32% 13% 3% 45%
Percentage of Companies That Use This Method by Account Type
(Most Companies Use More Than One Method)
Customer Segment Current or New
Top Quota Methods
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thanks1. Practice one Sales Design Thinking step- Redefining
your Challenge Question to Build Your Muscle Memory
2. Pre-order Quotas! today- SalesGlobe.com/Preorder
3. Preview Quotas! at SalesGlobe.com/Quotas
4. Book your Quotas Assessment Today by filling out the Conversation Form at SalesGlobe.com/Contact
More information at
Taking Action
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rethink
We are rethinking sales.SalesGlobe is a sales innovation firm that solves challenging sales problems. We work with our clients to implement solutions that give them a significant ROI.
We started SalesGlobe to go beyond the benchmarking and common practices that many firms dispense to their clients as the answer.
We are committed to bringing new problem solving approaches to sales effectiveness that make a difference and deliver results for our clients.
So we approach each client assignment as a special creative problem solving opportunity. We leverage left brain and right brain creative approaches to develop a solution that will give our client a differentiated advantage and a real return on their investment.
We’ve spent a long time in business. And during that time we saw too many companies replicating competitive practices and repeating old approaches rather solving problems in a way that would produce innovative solutions. We asked,
Why do companies repeat the same old solutions?
Why do they use benchmarks and current practices as the answer?
Why do they leave themselves vulnerable to competition?
• Sales Strategy and Go-to-Market
• Account Segmentation and Targeting
• Voice of the Customer Insight
• Sales Process Optimization
• Sales Organization Design
• Channel Programs
• Sales Capacity and Goal Design
• Talent Assessment and Planning
• Strategic Account Programs
• Sales Compensation
• Quota Setting
• Technology Readiness
why?Our Story- Sales Innovation