Leading a Sales Transformation Dreamforce 2015

Leading a Sales Transformation

Michael WeeningSenior Vice [email protected]

Building a winning sales organization

mailto:[email protected]

SafeharborSafeharborstatementunderthePrivateSecuritiesLitigationReformActof1995:Thispresentationmaycontainforward-lookingstatementsthatinvolverisks,uncertainties,andassumptions.Ifanysuchuncertaintiesmaterializeorifanyoftheassumptionsprovesincorrect,theresultsofsalesforce.com,inc.coulddiffermateriallyfromtheresultsexpressedorimpliedbytheforward-lookingstatementswemake.Allstatementsotherthanstatementsofhistoricalfactcouldbedeemedforward-looking,includinganyprojectionsofproductorserviceavailability,subscribergrowth,earnings,revenues,orotherfinancialitemsandanystatementsregardingstrategiesorplansofmanagementforfutureoperations,statementsofbelief,anystatementsconcerningnew,planned,orupgradedservicesortechnologydevelopmentsandcustomercontractsoruseofourservices. Therisksanduncertaintiesreferredtoaboveinclude–butarenotlimitedto–risksassociatedwithdevelopinganddeliveringnewfunctionalityforourservice,newproductsandservices,ournewbusinessmodel,ourpastoperatinglosses,possiblefluctuationsinouroperatingresultsandrateofgrowth,interruptionsordelaysinourWebhosting,breachofoursecuritymeasures,theoutcomeofanylitigation,risksassociatedwithcompletedandanypossiblemergersandacquisitions,theimmaturemarketinwhichweoperate,ourrelativelylimitedoperatinghistory,ourabilitytoexpand,retain,andmotivateouremployeesandmanageourgrowth,newreleasesofourserviceandsuccessfulcustomerdeployment,ourlimitedhistoryresellingnon-salesforce.comproducts,andutilizationandsellingtolargerenterprisecustomers.Furtherinformationonpotentialfactorsthatcouldaffectthefinancialresultsofsalesforce.com,inc.isincludedinourannualreportonForm10-KforthemostrecentfiscalyearandinourquarterlyreportonForm10-Qforthemostrecentfiscalquarter.ThesedocumentsandotherscontainingimportantdisclosuresareavailableontheSECFilingssectionoftheInvestorInformationsectionofourWebsite. Anyunreleasedservicesorfeaturesreferencedinthisorotherpresentations,pressreleasesorpublicstatementsarenotcurrentlyavailableandmaynotbedeliveredontimeoratall.Customerswhopurchaseourservicesshouldmakethepurchasedecisionsbaseduponfeaturesthatarecurrentlyavailable.Salesforce.com,inc.assumesnoobligationanddoesnotintendtoupdatetheseforward-lookingstatements.

Introducing myself• SVP Customer Success Commercial WW• SVP Customer Success APAC and Japan

• Realignment Microsoft Canada Communications Sector• $43M > $94M with +27% NSAT

• TurnaroundMicrosoftUKCommunicationsSe• $160M > $210M with +42% NSAT

• Turnaroundandtransformation$900MWirelessSalesOrganization• Enterprise & medium direct and indirect channels (300 team members)• Small business & consumer direct call center (325 team members)• Operations and public safety networks (175 team members)• Five years underperformance, worst employee scores in business, terrible CSAT

• 8 Qs of Growth, +25% ARPU, +21% customer satisfaction and double digit gains in employee sat and sales productivity

This presentation

Sales Transformation

• Very little written about it• Focus on organization coaching, leadership, enablement, day to day but no end

to end• Business school lack of focus on anything sales

What?

A B


When?

A B


Big or small? Lots of change or little?

A B

The HOW

ALearn Plan Transform Adjust Transform

Sales Transformation Stages

B

The Learning Stage

Ensuring your perception matches reality• Stakeholders• Peers• Direct report, skip level and the broad team

Assessment framework to build your perception• People and culture• Customer relationship and differentiation• Partners and channels People

Operations

Partner

Customer

People

SUCCESS

Identification

Introduction & insights

Establish cadence

Commitment to process

Initial team introduction

1:1s

Organizational insight

Team building

Initial introduction

Town hall introductions

Skip level 1:1s

Social media awareness

Peers & Seniors Direct reports Broad Team

The Learning Stage Stakeholder Targets

The People

Performance

Sales Culture

Development

• Is compensation structured to encourage the right behavior?• Are non-quota measures in place to facilitate coaching, training?• Is recognition part of the culture? (Wins big/small, social, Thank-you?)• Inhibitors to recognition in the culture?• Is employee feedback integrated into the culture and impacting?• Does the team understand the organizations vision, strategy and current state?• Does the team think? Do they debate?

• Is sales partnering across marketing, product and support? Who are key virtual members?• Does sales recognize virtual team members? How effectively is success shared?• What are processes are in place to ensure cross functional alignment?• What are the key relationships that the leader needs to maintain?

• Does the organization understand who are the top and bottom performers?• How does the culture manage, foster and improve middle performers?• What percent of reps are hitting quota?• Team track record of retaining top & mid performers and managing out bottom 10%?• Vitality curve with tenure and performance? Span of Control mapping?• How assessment part of the culture?• What is the coaching culture – do managers spend 60% of their time coaching?

• Tools for recruitment and development?• Tools for coaching and management development?• Percentage of the team with a development and career plan?• What is the annual training plan and how is it balanced between formal and informal

assets? ROI?• What investments are being made in non-selling roles?

Virtual Team

Reps miss 6Q

Lost Password

VP absent

No PIPs in 7Q

Lose base @ 200%

Price sellers

Product driven training

1% with a plan

Sales is bad

Non-sales recognition

The Customer

CoverageModel

Market Strategy

CustomerEngagement

• Do your customers see the team as leader, laggard, innovator?• Clear view of strengths and weaknesses versus the competition by segment? Products –

solutions?• Has the team identified which segments are the most important now and in the future?• Does the team know the Top 10 accounts by region, segment or value?• What is the industry strategy?• Do you have a sales data warehouse to drive insight? (Propensity, white space, profiling)• Do we know the right mix/level of resources needed to effectively serve each segment?• Do we understand sales and support costs by segment and channel?• Are resources aligned to segment lifecycle and size of growth opportunity?• Are reps spending 50%+ of time on revenue generating activity?• Across the customer lifecycle who touches the customer at what point? • What internal teams contribute to renewals and upsell as part of the lifecycle? (Services,

Care, etc)

• Do we measure interactions and satisfaction of the client base? Do measurements correlate to clear action?

• How do clients view your team? Do they feel valued?• Do we say thank-you?• Is the team using the right frequency and vehicles for engagement (hospitality,

voice/F2F/video)?• Does sales facilitate successful engagements between internal teams and clients

(professional services, support, product development, marketing)?• Is sales leader being effectively leveraged by the field and marketing? Is the entire

executive team being leveraged in the sales and customer life cycle?

Organic coverage model

No account planning

Price, price and price

No channel analysis

No lifetime value

No NSAT

Channel conflict

Internal focus

Only sales at client

No thank-you’s

Operations and Partner

Sales Effectiveness & Planning

Sales Process

Partner

• View of sales pipeline at all points? (Velocity, drop out rates, probabilities, mapped to sales model)

• Is the process around contact defined and evolving?• Is the team explicit about managing pricing? Disount management and where is price in

sales process?• Right sales processes beyond forecasting and price? (Cadence, opportunity reviews,

territory planning, escalation management, win-loss reviews)• Right investment in sales tools and long term strategy?• Sales processes standardized? Common language around people and sales process?• Analytics provide deep insight into each segment, customer, buying cycles, propensity,

profitability, channel costs?• Content and field update strategy?• Collaboration, communication and industry strategy?• How are territories and quotas created?• Is planning process aligned to business requirements (Quota, budget, goals, scorecards)• Collaboration between peer groups and sales in planning, budgeting and review process?

• How does the team go to market with partners?• Do we have the right number of partners, channels or alliances to generate sales?• Can we measure and understand what drives performance of each partner?• How do partners and sales operate together? Sources of friction and collaboration.• What programs, technologies are in place to support partners. Where do they overlap with

Sales?• Leadership view of partners?• Does analysis exist on partner target markets related to channel cost, coverage,

effectiveness?

Reps write their contracts

No Salesforce use

No account planning

Bad leads

Excel forecasts

No tool plan

Channel conflict

No data warehouse

No RFP process

Yearly quotas

The view from the frontline

Operations

CustomerPeople

Partner

Notrustinleaders(55%)

Nocoachingorcareerplan

Noskillstraining

Oldtechnology

1-2weekpricing

OKtobe

belowquota

Nomeasureorinsight

Noindustrydepth

Nomarketing

PoorComms

Noinputinto

decisions

Norecogntion(49%)

Quotasdidnotmatchheads

DisjoinedSilos

Nosharing

Nowin/loss

TechnicalSupport

Excelforecasting

ChannelconflictManualPPTsand

RFPs Manualproposals

AMDOCS

Anotherrep?

Badleads

Leadersdon’twalkthefloor

HQdecisionswithoutthefield

Leadersdon’twalkthetalk

(Salesforce)

The Planning Stage

Bring together the views to assemble a clear view of the business• 72 priorities over 24 months

Begin messaging across the organization• To executives to mold perception around effort and define vision• To individuals sell the vision and payoff• To the company – commitment to Salesforce

• Condition of employment• Salesforce as a single system promise and application of “Naughty 5%”

rule• LEADER walks the talk

• Broad messaging: MME, chatter, 1:1s, town halls, print

The Importance of Stakeholder Management

LowdisruptionSlowergains

Short-termdisruptionLongtermgains

People: Building a High Performance Sales Culture

Top people issues• Training was product centric with no ROI• Employees were not bought into owning their careers• Managers were not coaches

Planning• Map out high performance culture• Gain alignment from HR and stakeholders to support transition

• Twelve month execution plan• Leadership VISIBILITY critical through a culture change

Plan

Transform

Field councilMentoringRide along1:1 coaching

Skills & ProductWebinarsSpeakersMeasurement

Role profiles (High and low profiles)Aptitude testingRecruit Coaching &Methodology

High Performance Sales Culture Target State

Formal Learning

RecruitProductSkillsHow to do my job

OnboardShort term 1:1Long term 1:1

Develop

Learning cupboardHBR, AudibleAssociations

Elite SellersFlex budgetIndustry

Individual Learning

Big & small winsSocial, programsVirtual teamSmall Thank-you

Field Learning

CareerTerritory – AccountVirtual team

Plan

Meeting in a boxCoaching the coach

1:1 CadenceCoaching tools

Coaching Culture

Formal processManager support

Executive review

Peer feedbackFormal processes

Performance Managemen

tReview

Recognition

Other People highlights and suggestions

Organizational standardization• Span of control, national versus regional

Power of Work.com functionality• Badging aligned to recognition, training career• Organization performance, feedback and coaching

Culture of transparency and recognition• Executive chatter, quarterly all-hands, regional all-hands, Monday Morning

mail• Employee feedback working groups• Executive breakfasts in region• Small awards: big awards, virtual teaming• Marc Benioff : V2MOM process, collaboration and transparency

Operations, customer, partner transformation:

Top customer issues issues• Lack of automation• Too few or too many processes• Lack of CRM (Salesforce.com) adoption

Planning• Multi-stage implementation, integration and training• Variable funding and change stages

• A journey …. better, better never best

Plan

Transform

PrioritySupport systemsTerritory planningForecastingPricing processRetentionLoss reviewsContact cleanupSmall business and profiling

Data insights

ExistingFragmentedNominal and manualExcel and manualManual, no BOR, 2 weeksFragmentedNoneNoneText fields in billing systemCall center lead crisisManual

Transformation First strategy Integrated Automated Automated Integrated192 with shared learningQuarterly programs191K prospects, close rates

Aggregating 5 sources

Operations transformation examples

90% +time30-75% autowin/loss

118% YoY Hunter/farmer

1

Data DataMart

PurgeCleans

e

SortRankScore

D.M.

Dialler

SFDC DefineMessage

SFDCActivity

Keep Warm

Cold call F2FPhone Lead GenDirect Marketing

SFDC# D&B ARPU Units

Customer

Master

Right Party Connect

Process

UpdateLoading

• SFDC• Hoover / d/b• Lists/ other sources• Billing (NMI)• Survey cold calling• Customer support

Current State Future State

2

Good / Bad

OpportunityYes / No

Worthwhile

Reporting

Yes

LostNo

Yes

Good

Yes

No

NoNext Steps

Bad

1

OppOpp

Total Market

DataMart

SFDC

NMI

SFDC

LIST

Billing

Outreach

Slowly the Data Warehouse and SFDC expand to profile the market

22

BuildacustomermasterData transformation whiteboard

PriorityContentWorkflowsField in decision makingTravel costsChannel insights

Distribution enhancementsRep productivity

Quota setting

ExistingEverywhere and badManualNoneNo planNominal

Fragmented, regionalFocus on quota

Annual and variable

Transformation Proposals, emails, RFP Credit card Field council Mobility and video Cost per channel

Standardized (+40%) Measured and clear +DD

Quarterly predictability

Operations transformation examples

PriorityIndustry depthTrusted advisor Customer satisfactionOne organization

Leverage great customersSales and service synergyExecutive engagement

Channel conflict

ExistingNominalMixedNoneFragmented

Salesforce exampleSalesforce exampleSalesforce example

Frequent

Transformation Chatter, solutions, mktg. Measured, training, MBOs Closed loop process, +7% Joint reviews and planning Dreamforce Red Accounts, collaborate Customer success culture

Dramatic change

Customer and Partner examples

The view from the rep 24 months later

Operations

CustomerPeople

Partner

Trustandrecognition85%

+95%withacareerplan

Skills&producttraining

LatestTechnology

BusinessOpp

Review

75%at

quotaDeep

customerinsight

Aligned,trainedandtoolsfor

industry

Accuratemarketing

MME

Strategycouncil

Quarterlyquotas

Nosilo

Chatter

Win–Losssharing

TechnicalSupportasaPartner(usingSFDC)

Automatedopps,

forecasting

Channelpartnerships

MarketingmanagedPPT&RFP

repositoryAutomatedproposals

Cleancontacts

Minimizechange

Compensationalignedto

hunting,renewalsandinternal

activities

Automatedacctplans

Greatleads

How Salesforce runs Salesforce

Marketing cloud

Integrated analytics

Red Account Process

Social integrated to contact

Integrated communities

Understood the situation and had a plan

Transparency and communication ALL directions

People, people, people

A journey – take risks, learn, iterate

The beginners mind …… better, better never best

Parting thoughts on transformation success

Reach out to meMichael Weening

[email protected]

Success community https://success.salesforce.com/ Sales Transformation

Ways we can help

mailto:[email protected]

https://success.salesforce.com/

https://success.salesforce.com/

Thank you

People Attrition

Attrition

Good

Bad

Could knowledge have been retained in different role?Brand impact?Effectives of recruitment profiling?Management driven and controlled?Was the attrition anticipated and backfill prepared?

What was the executive save process and truth identified?Quota ramp and reality? Territories?Progress in learning journey?Did manager know?Did this get caught in people review process?What was the mgmt. coaching cadence and effectiveness?Was duress identified and process in-flight?How is the feedback showing up externally? (Glass Door)

Performance managed outQuit due to low performance

Income – missing quotaTerritory perceptionsTrainingBad fit

Leading a Sales Transformation Dreamforce 2015

Sales

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