Assessing the sales force talent assmt in reorganization 2 june10
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Transcript of Assessing the sales force talent assmt in reorganization 2 june10
© 2010 The Sales Management Association. All Rights Reserved.
Tom Knight
Partner
Evergreen Growth Advisors
James Killian, Ph.D.
Chief Psychologist & Director of Consulting
Chally Group Worldwide
Using Capability Assessments During a
Reorganization
June 2, 2010
Presented by:
Assessing the Sales Force
The Sales Management Association
Visit Us Online at www.salesmanagement.org
A global, cross-industry professional association for sales operations and sales management.
Focused in providing research, case studies, training, peer networking, and professional development to our membership.
2 Copyright © 2010 The Sales Management Association. All rights reserved.
© 2010 The Sales Management Association. All Rights Reserved.
Tom Knight
Partner
Evergreen Growth Advisors
James Killian, Ph.D.
Chief Psychologist & Director of Consulting
Chally Group Worldwide
Using Capability Assessments During a
Reorganization
June 2, 2010
Presented by:
Assessing the Sales Force
Tom Knight
• 23 years of Sales Experience:
Sales Management and Operations, Managing Director of Professional Services,
and Sales Practice Leader
• Visiting lecturer at DePaul and Loyola University
• Expert in Sales Strategy, Organization Structure, and Execution
Today’s Presenters
Tom Knight and James Killian
James H. Killian, Ph.D.
• Fourteen years of talent management experience with global and Fortune 1000
companies:
Serve as business partner with focus on producing measureable impacts for clients
• Delivered over 1000 executive coaching engagements
• Expert in leader development, personnel selection, strategic planning and talent
management
4 Copyright © 2010 The Sales Management Association. All rights reserved.
Today’s Webcast
5
• Situation
• Objectives
• Key Questions
• Approach to Transformation
• Measuring Impact
Agenda and Discussion Guide
Copyright © 2010 The Sales Management Association. All rights reserved.
Situation
• Revenue Decline within Core Business of >10%
• Exploding Cost of Sales due to Productivity Decline
• Generalist Account Management Organization
• Generalist Product Specialists
• Unclear and Inconsistently Followed Sales Process
• Significant Upside Revenue with Sale of New Products
• <90 Day Time Table for Completion
Telecommunications Company
6 Copyright © 2010 The Sales Management Association. All rights reserved.
Objectives
• Slow the Revenue Slide – better negotiation and account
management
• Increase New Revenue – via account penetration
• Increase New-New Revenue – by competing more effectively
• Protect Profitability – carefully manage cost of sales
• Enable Productivity – make targeted investments in
specialized resources
7 Copyright © 2010 The Sales Management Association. All rights reserved.
Key Questions to Answer
• What sales process, roles, and structure will enable us to win?
• Do we have the right talent to meet or organizational needs
without substantial new investments?
• What’s the best assessment format for us?
• How should we execute the assessment and slotting process?
• Who should be placed in which role?
• What are the developmental needs of individuals that we must
address?
8 Copyright © 2010 The Sales Management Association. All rights reserved.
Approach to Transformation
Continuous
Process
Assess full-time equivalents
(FTEs) based upon desired
sttructure.
Identify desired structure.
Slot FTEs into the new model.
1
2
3
9 Copyright © 2010 The Sales Management Association. All rights reserved.
Approach to TransformationStep #1 – Identify Desired Structure
1. Sales Process
2. Identify Key Activities
3. Align Roles & Activities
4. Reporting Structure
• Sales Process reflects Customer preferences
• Activities and key handoffs are clear
• Decision rights are clear (e.g. RACI)
• Buy-in from managers and field personnel
• Level of Specialization Required
• Adequate Sales Rep bandwidth
• Cost vs. opportunity is appropriate
• Right managerial oversight
• Adaptability for future
• Ease of Implementation
CR
ITIC
AL
SU
CC
ES
S F
AC
TO
RS
DETAILED ACTIVITIES
10 Copyright © 2010 The Sales Management Association. All rights reserved.
Approach to TransformationStep #1 – Identify Desired Structure
11
The following diagram shows exactly how roles will interact with each other across multiple the sales process.
Illustrative Example
GAP: More attention should be
applied to “Lead Gen” activities by
sales resources that can have a
greater impact on sales success.
GAP: Professional
Services and Technical
sales resources should
contribute more to “Close
Sale” in order to improve
win-ratio.
OVERLAP: Too many
faces to the customer;
feedback supports this
finding.
11 Copyright © 2010 The Sales Management Association. All rights reserved.
Approach to TransformationStep #1 – Define Structural AlternativesTelco decided to create specialized Reps where efficient coverage could occur and high specialized Sales support roles
12 Copyright © 2010 The Sales Management Association. All rights reserved.
VP Sales
West Region
Sales
East Region
Sales
Channel Sales
Leader
Each region will have a similar structure
Generalist
Manager
Segment
Manager
New-New Reps
General or Segment Reps
Sales Specialist
Sales Specialist
Segment Manager
New Logo Reps
Solutions Support Organization
• Role and Product Specialties
Presales Specialists
(N) Telepresence
(N) Unified Comms
(N) Wireless LAN
(N) NW Accel
(N) Contact Ctr/CRM
(N) SaaS
(N) Mobility
Presales Sol. Cons
(N) Telepresence
(N) Unified Comms
(N) Wireless LAN
(N) CIC/NW Accel
(N) Contact Ctr/CRM
(N) SaaS
(N) Mobility
(N) Billable
Consultants
Practice Leads
Telepresence
Unified Comm
Enhanced Network
Hybrid Prac
Lead/Principals
Wireless LAN
CRM
SaaS
Mobility
Presales Specialists
(N) Telepresence
(N) Unified Comms
(N) Wireless LAN
(N) CIC/NW Accel
(N) Contact Ctr/CRM
(N) SaaS
Presales Sol. Cons
(N) Telepresence
(N) Unified Comms
(N) Wireless LAN
(N) CIC/NW Accel
(N) Contact Ctr/CRM
(N) SaaS
Approach to TransformationStep #1 – Define Structural Alternatives
Key Issue: Requisite Competence
- Sales and Consulting Skills
- Technical Skills
Key Issue: Requisite Competence
- Sales and Consulting Skills
- Technical Skills
13 Copyright © 2010 The Sales Management Association. All rights reserved.
National Solutions
Support Leader
Consulting Svcs.
Leader
West Region
LeaderEast Head
14
Standard Process for Selecting/Validating Profiles
Data Analysis
o Compile, analyze, and score
assessment results
o Produce position profiles
� Identify predictive skills
and present findings for
approval
� Job analysis interviews
conducted by I/O
Psychologists
Step Three
Employee
Database
“DNA”
o As may be required at a
later date
o Continue to calibrate
Ongoing
DeliverablesStep One
o Obtain employee data for
assessment process
o Confirm position role and
responsibilities
o Identify performance data
for full spectrum of
performers
ProgramDevelopment
&Job Analysis
Web-Based
Assessment
o Employees complete the
online assessment
Step Two
Web-BasedAssessment
Capability
o Candidate selection
assessments
o Employee reports for new
hires
o HR Assistant online
assessment system
o Management and user
training
o Custom interview guides
Step 4 - Ongoing
Deliverables
Validation StudyDeveloping custom position profile for Sales Roles
Approach to TransformationStep #2 – Assess FTEs based on Desired Model
14 Copyright © 2010 The Sales Management Association. All rights reserved.
• Decide on purpose first
• Measurement needs, budget,
involvement, ROI, information
desired
• Thousands of options – there is no
“silver bullet” but a good assessment
should:
o Demonstrate / document validity
o Be affiliated with American
Psychological Association and Society
for Industrial/ Organizational
Psychology
o Adhere to standards of the Uniform
Guidelines on Employee Selection
Procedures
o Clearly explain scoring methodology
o Follow a standardized validation
process
o Maintain a research archive
o Evaluate the performance of the
test/assessment
o Have a policy on legal defense
o Had limited challenge in a court of
law
Cri
tica
l S
ucc
ess
Fa
cto
rs
Approach to TransformationStep #2 – Assess FTEs based on Desired Model
15 Copyright © 2010 The Sales Management Association. All rights reserved.
Approach to TransformationStep #2 – Assess FTEs based on Desired Model
Selecting Assessment Methodology
16 Copyright © 2010 The Sales Management Association. All rights reserved.
Sales Specialty Map
17 Copyright © 2010 The Sales Management Association. All rights reserved.
Accurately Predicts Success in a Role 80% of the Time
•Leverage combination of
• Mental Ability, Personality, Motivations, Job Fit and Structured Interviews
•150 granular competencies predict success in specific things people do
• Samples of how a candidate is scored against specific sales roles, specifically against those
competencies identified as predictors of success:
Chally Assessment
18 Copyright © 2010 The Sales Management Association. All rights reserved.
Sales Talent Assessment
COMPOSITE SCORE :
Observable Performance = 65%
Assessment = 35%
Should leverage multiple data points –
•Historical (e.g., quota, total revenue, %profit, new logo)
•Future Needs
•Norm-based
•Mix of Quantitative & Qualitative
19 Copyright © 2010 The Sales Management Association. All rights reserved.
Talent AssessmentTotal Composite Scoring
20 Copyright © 2010 The Sales Management Association. All rights reserved.
< Midpoint on performance score
– AND –
< Midpoint on Chally score
< Midpoint on performance score
– OR –
< Midpoint on Chally score
> Midpoint on performance score
– AND –
> Midpoint on Chally score
21 Copyright © 2010 The Sales Management Association. All rights reserved.
A well designed slotting process
utilizes data about an individual’s
potential to perform and data about
their witness-able performance
Coach, Train,
or Develop
“Observeables”
Slotting ProcessSlotting Process
Po
ten
tia
l
Soldiers –
consistent
performers of
above-average
to solid work
Re-purpose
Specialists – keep
where they are
since they have
found a way to
make it work
Generals –
considered “go-
to” people or
high potentials
Approach to TransformationStep #3 – Slot FTEs into New Model
Approach to TransformationStep #3 – Slot FTEs into New Model
Critical Success Factors
• Governance and decision rights must be mapped
• An impartial governing board should be created to address conflicts
and make final decisions
• Use of secondary decision factors should be limited structured by
clear rules
• Detailed notes about decisions should be kept for reference and
documentation purposes
• Developmental needs must be identified and dimensional zed to
enable planning and coaching
22 Copyright © 2010 The Sales Management Association. All rights reserved.
23 Copyright © 2010 The Sales Management Association. All rights reserved.
Review Planned Slotting
“Suitable for Slotting in
Current Role?”
Decision Based on Composite
Score
YES!
Decision Based on Composite Score
Decision Based on Composite Score
No, Outlier or Another Role?
CHALLY REVIEW NEEDED
CORE TEAM REVIEW NEEDED
Decision Based on Composite
Score for Another Role
Conduct Review of Secondary Factors – First Review by M2s-Geographic Fit?-Certification?-Key to Client Relationship?-Technical Skill that’s Needed?-Best Fit? – CSI/Sales Alternative?
CORE TEAM CONDUCTS FINAL REVIEW
EXIT
CORE TEAM
CONDUCTS
FINAL REVIEW
FINALSTAFFING
NO!
YES w/ Development!
Notes:-Composite scores for incumbents are useful
for comparison purposes within the same job
family only.
-Potentially “unstaffed” individuals who are
reviewed by the Core Team and eventually
staffed with enter their new role as “needing
development”.
-Chally scores will be the dominant basis of
comparison when individuals are in different job
families.
Approach to TransformationStep #3 – Slot FTEs into New Model
• % of employees at on target or greater performance
• % of employees showing improved performance
• % increase in the number of performers above median
• % or # increase in employee engagement or satisfaction
• % or # increase in median performance
• % increase in Revenue or Margin
• % increase in New Account acquisition
• % increase in New Product Sales
Measuring Impact
While measures will vary depending on the context of
“restructuring,” they typically include:
24 Copyright © 2010 The Sales Management Association. All rights reserved.
If we reassign or replace the bottom 20% with candidates that just meet or exceed “average”
competency levels, we will increase sales by a minimum of 17% to $234M
Stop hiring
new poor
performersReassigning
existing team to
correct role
Appropriately
training your sales
team
25 Copyright © 2010 The Sales Management Association. All rights reserved.
Measuring Impact, cont’d
26
Improved Hiring & Deployment Impact
Increase Revenues and Profits by:
Success Story from Case Study:
•Typical Quotas went from
$4.5M to $8M
•Many people slotted into new
roles
•Company on track to make
plan for the first time in years
26 Copyright © 2010 The Sales Management Association. All rights reserved.
Measuring Impact, cont’d
Implementation Considerations
27
Need to manage all aspects of implementation and change management from communications to
readiness assessment and implementation
2. Clarify Needs & Challenges
2. Clarify Needs & Challenges
1. Form Change Teams
1. Form Change Teams
3. Develop Change Plan
3. Develop Change Plan
4. Prepare People & Environment.
4. Prepare People & Environment.
5. Implement Change
5. Implement Change
6. Evaluate and Monitor
6. Evaluate and Monitor
› Identify rollout teams
(Sales and HR, Legal)
› Agree on roles and
responsibilities of
teams and set
expectations
› Identify limiting
factors and risks
› Prepare the teams
› Establish a Return On
Sales Investment (ROSI
productivity baseline for
today’s sales
organization)
› Clarify the nature of the
change
› Understand who will be
impacted and how
› Determine the talent
deployment sequence
(which roles to fill first)
› Understand the
environment (internal
and assess any potential
customer relationship
risk)
› Develop an overall
change management
plan
› Identify communication
requirements
› Identify work steps and
sequence
› Obtain leadership
approval of plan
› Assess leadership’s ability
to embrace and lead the
change effort
› Prepare the sponsor
› Prepare the functional
roll out teams
› Align systems and
processes
› Build tools to explain the
change – assess type of
message, media,
delivery, and audience
› Train individuals on the
change
› Identify sustainability
plans
› Evaluate, monitor and
adjust as necessary to
ensure Return On Sales
Investment (ROSI)
› De-brief with sponsor
and project core team
› Functional rollout of
the change
› Identify and
communicate the
“‘what’s in it for me?”
message
› Communicate,
Communicate,
Communicate!
KEY ACTIONSKEY ACTIONS
27 Copyright © 2010 The Sales Management Association. All rights reserved.
© 2010 The Sales Management Association . All Rights Reserved.
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