S D M001 Sechrist 091707

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  • 1. Supercharge Sales Results by Optimizing Quotas, Territories, and Incentives Robert Youngjohns, CEO Paul Turner, Product Marketing Sales: Million Dollar Producer

2. Safe Harbor Statement

  • Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
  • The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
  • Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website atwww.salesforce.com/investor . Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

3. All About Callidus Software Callidus Software, Inc. provides salesperformance management (SPM) andenterprise incentive management (EIM)software systems worldwide

    • INDUSTRY : Software
    • EMPLOYEES : 350+
    • GEOGRAPHY : Global
    • # USERS : 1.7million
    • PRODUCT(S) USED BY : Sales operations, Finance, Sales team

4. Agenda

  • The need for Sales Performance Management
  • Business challenges
  • Effective quota setting
  • Territory optimization
  • Incentive management
  • Wrap up
  • Q&A

5. How much is your organization losing inlost opportunityrevenue?

  • How does your company manage territories, quotas, incentives and sales reporting and analysis?
  • Callidus Sales Performance Management maximizes sales and incentive effectiveness

Why Callidus Sales Performance Management? 6. The Need for Sales Performance Management Through 2010, on average, enterprises will miss the equivalent of at least10 percent of total annual sales in "lost opportunity" revenue that could have been captured with improved processes for defining, assigning and managing territories, quotas, and incentives and compensation plans. 0.8 Probability Gartner Presentation, Exceeding Targets with Sales Performance Management by Michael Dunne, Sept. 11-13, 2006. 7. 40 Million Salespeople, $1.5 trillion in spend

  • Nearlyzerovisibility for managing the investment

What is your organizations sales spend? Is it getting its moneys worth for that investment? Are your sales incentives and programs producing the desired results? Do you know when youve taken the right action? 8. Sales Performance Management

  • Optimize, Analyze
  • Improve, Align
  • Who are my customers?
  • How do I allocate them to sales territories?
  • What resources do I have?
  • What are their capabilities?
  • What targets should I set?
  • How do I get the targets out quickly?
  • How do I set motivational incentive plans?
  • How do I change plansquickly as markets and/or products change?

Territory Talent Analytics Incentives Targets 9. ROI on spend Three Layers of SPM Value Significant 10+% 5+% Strategic Acceleration

  • Drive revenues
  • Gain competitive advantage

Sales Force Effectiveness

  • Action on analytics
  • Quota & territory planning

IncentiveCompensation

  • Pay fast & accurate
  • Handle complexity & change

10. Customer Results Achieved: Visibility Planning Execution Sales andIncentive Performance CSAA can now launch a productin3-6months vs.6-9months $5Min overpayments eliminated, and more than$15Min increased revenue (Major telecom provider) Channel Retention Eliminated80%ofDisputes from channelof25,000distributorsand suppliers. CUNA Mutual has realized hard dollar savings of$900,000per year. Sales Productivity > 60,000 sales days recouped over 2 years by lowering shadow accounting(Major telecom provider) Callidus has enabled us make sound strategic decisions as we are by identifying factors that motivate our sales team We are driving a cultural transformation in oursales organization Loan production up450% We can align incentives more closelyto our channel objectives. 11. Sales Performance Management Defined Sales Performance Management:Going Beyond Incentive Compensation Michael Dunne Accounts Contacts Sales Cycle Execution Prospect Qualify Solution Close Negotiate Sales Enablers Leads Content Config./Quote Order Propose Monitoring/Reporting/Analytics Territory Mgmt. Accounts,Resources, Hierarchies Quota Mgmt. Revenue & Margin targets;New business Sales ICM Commissions,Bonuses, Accelerators 12. Territory and Quota Setting

  • Opaque
  • Seniority
  • Politics
  • "Gut feeling"
  • Ad hoc
  • Misaligned
  • "Gut feeling"
  • By executive dictate
  • Budgeting
  • Politics
  • Not reflective of demand

Territory Allocations Quota Assignments

  • Transparent
  • Fact-based
  • Comprehensible
  • Achievable
  • Reflect responsibilities
  • Meaningful
  • Transparent
  • Logically determined
  • Balanced
  • Equitable
  • Reasonable opportunity
  • Optimize coverage

13. Quota Setting Business Challenges Challenge Solution

  • Align sales with corporate goals
  • Derive and communicate top level target
  • Set quotas based on business need
  • Top-down, Bottom-up and Bi-directional
  • Utilize different business drivers
  • Historical Sales, Territory Potential, Growth, Sales Effectiveness
  • Manage and monitor approvals
  • Hierarchy Level Rules, Workflows
  • Communicate Quotas and Attainments
  • Web or Excel enabled quota setting and dashboards
  • Minimize confusion and ambiguity
  • Standardized templates and guided workflows
  • Integrate with revenue and comp systems
  • Integrates with TrueComp and supports multiple data sources

14. Quota Setting Flexibility Across Multiple Measures Allocate Quota Using Multiple Measures Customer Type (New, Existing, Strategic) Sales Volume Profit Margin / Price Realization Product Mix Multiple Quota-based with Accelerators Key Strategic Objectives (KSOs/MBOs) Market Share, Customer Satisfaction 15. Analyze Attainment, Future Opportunity Key Takeaways

  • Exception highlighting show underperformance and over performance areas

Identify seasonaltrends in accounts 16. Plan Quotas Against Sales Goal Key Takeaways

  • Uplift or downlift quotas, or bring forward existing quotas and add weightings or seasonality to them
  • Compare scenarios side by side and select the best one
  • Centralized business ruleseasy to update, rather than locked away in multiple spreadsheets etc.
  • Have multiple targets based on optimizing product mix, account performance etc..

17. Adjust Quotas and Add Audit Trail 25,572 324,565 12,878 Key Takeaways

  • Provides immediate feedback on what-if scenarios
  • Can be performed in the Web or Excel client
  • Can be performed in off line mode for traveling sales manager
  • Can add supporting detail for to any change to ensure a change log its kept
  • Greg is able to adjust his current targets for his teams accounts, and uplift them. For example, he has uplifted Finance Bank New York by 25%, and Comp Shop Texas by 20%, given last years over attainment. He can immediately see the impact on the overall targe