Design Thinking to Solve Your Biggest Sales Challenge · 2019-10-14 · Effective Quotas 61% Top...

© 2019 SalesGlobe

October 2019

www.SalesGlobe.com(770) 337-9897+44 (0)20 7250 4754

Quotas!Design Thinking to Solve Your Biggest Sales Challenge

© 2019 SalesGlobe

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

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

https://www.amazon.com/Quotas-Design-Thinking-Biggest-Challenge/dp/1950496236

https://www.amazon.com/What-Needs-About-Sales-Compensation/dp/0814437559/ref=pd_lpo_sbs_14_img_1?_encoding=UTF8&psc=1&refRID=VQPSMKF6WYX5KZWKN0DJ

https://www.amazon.com/Essential-Account-Planning-Helping-Revenue/dp/1562867768/ref=sr_1_1?crid=1Y5VO9B1VO5L8&keywords=essential+account+planning&qid=1571073702&s=books&sprefix=essential+account+%2Cstripbooks%2C160&sr=1-1

https://www.amazon.com/Innovative-Sale-Creativity-Solutions-Extraordinary/dp/0814433472/ref=sr_1_1?crid=DFNZNUZBLS2U&keywords=the+innovative+sale&qid=1571073744&s=books&sprefix=the+innovative+sale%2Cstripbooks%2C155&sr=1-1

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why?Why do we repeat the same solutions?

Do we lack new ideas?

Do we leave ourselves vulnerable to the 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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issuesSetting and ManagingEffective Quotas

61%

Top Sales Effectiveness Challenges

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%

Q

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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

nal

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


Statement


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

A Case Example

Case:Automotive Electronics Company


Statement

.

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problemWhat They Saw

Lagging Quota Attainment


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


Statement

.

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We need to fix the quota process

because the organization is

underperforming.


Statement

.problemWhat They Thought

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?


How and When…did it happen and develop (the story)?

Who…was involved (executives, roles)?

Where…was it happening (globally, regions)?


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.


?

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How and When…did it happen and develop (the story)?

Who…was involved (executives, roles)?

Where…was it happening (globally, regions)?


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?


?

© 2019 SalesGlobe

!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.


?

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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?


?

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


Units


Regions


Bottom-Up


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

Human Resources

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

Overall Engagement(1-10 Scale)Organization Engagement

First Line Sales Management

1.8

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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


Units


Regions


Bottom-Up

People


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


Units


Regions


Top-Down

People


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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commsBack to People- Your Communications Campaign

Who must understand each message?

• Formal roles• Management, front line• Sub groups that have

particular issues

2. Identify Audiences

1. Determine Message Areas and Themes

4. Design Modes and Vehicles

3. Create Content and Proof Sources

What important messages do we need to communicate?

• Pay levels• Quota process• High performer rewards• Performance penalties

How will people best understand the message?

• Written• Verbal• Visual• Kinesthetic• Mathematical

How should we prove the message?

• Message themes• Positioning• Proof sources• Communication points

5. Structure and Schedule Campaign

What cadence should we use?

• Combinations of audience, messages, vehicles, and timing

• Repetition to reinforce

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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

[email protected]

Taking Action

https://www.salesglobe.com/quotas-subscribe/

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Design Thinking to Solve Your Biggest Sales Challenge · 2019-10-14 · Effective Quotas 61% Top...

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