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Transcript of Sales Transformation - ey.com€¦ · A cross-functional sales transformation should cover...
Sales Transformation
Sales Transformation2
We define Sales Transformation as “How cross-functional sales capabilities and competences need to be managed and developed to reach strategic targets of the company and meet changes in the industry”.
Where should we focus in terms of market arenas, what is the right offering and value proposition for these markets, and how should we manage our customer relationships and sales to win in the market, are typical questions to be answered.
A cross-functional sales transformation should cover everything from Sales strategy & planning, Sales management, Sales process, People & skills and Technology & tools. All major stakeholders from Business Units and Operations to Support functions and Top management should be involved in the work in order to implement the needed capabilities and enablers for transforming sales.
Sales Transformation – what and why?
Why perform a sales transformation in Industrial companies?Dynamic markets force companies to revisit their sales capabilities regularly in order to stay competitive. Typical triggers for sales transformation in industrial companies include the commoditization of the core business and emergence of new competitors, decreasing market performance as well as disruptive developments in the market.
The underlying drivers behind can be both external and internal changes.
Examples of external drivers include:
• ►Customers focusing on core business and outsourcing up-stream operations
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• ►Requirements to understand and measure impacts on customer’s business and financials
• ►Increased information availability and highly educated customers
• ►Globalization and consolidation of customers leading to increasing power of procurement
Examples of internal drivers include:
• ►Entering into new markets arenas and segments in search of growth
• ►Moving forward in the value chain and focusing on end-users• ►Transformation to service businesses and to large scope
solutions with new earnings logics• ►Focus on customer experience and long-term relationships• ►Digital sales models, new channels and data analytics• ►All of which are issues that force companies to consider the
status of their sales capabilities and competencies across functions and geographies.
OutcomeA systematically managed sales transformation program delivers growth, profitability and customer loyalty. Furthermore, sales transformation results in improved manageability, transparency and predictability for the business.
The key question is how to sustain the change. EY is a leading partner for sustainable sales transformation with proven capabilities, highest performing teams and world class references.
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EY Sales Transformation Capabilities
Connect with the strategy &Identify sales transformationgoals…
…to incorporate leading sales practices, and create the roadmap of change
Sales as growth engine
Sell more
Benefit from data
Sell more efficiently
Sell solutions and value
Sell more profitably
Align with strategy
Create trust and customer loyalty
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The following table encapsulates the steps taken by EY to achieve its sales transformation objectives.
Sales strategy and planning
Sales management
Sales process
People and skills
Technologyand tools
Articulated anddemonstrated client value proposition
Globally consistentsales methodologywith universal training
Robust, multi-yearaccount planning
Escalated the caliberof sales leadership
Globally consistentCRM toolimplementation
Rigid adoption ofaccount segmentationand investmentapproach
Globally consistentpipeline managementand sales forecasting approach
Prioritized investmentin the most criticalrelationships andopportunities
Executive focus onsales “tone atthe top”
Customized salesanalytics andreporting
Pricing framework and specialist to support account teams
Sales metrics withowners across thematrix of thebusiness
Value-based solutiondevelopment,contracting andservice delivery
Sales-focusedcompetency modelsfor all professionals
Enterprise-wide salesenablers with focuson cross-selling2 onaccounts
Refined approach to client feedback
Processes andcontrols to ensureadherence
Alignment ofperformanceevaluations and reward
Marketing workingwith sales function and across account teams
Ongoingreinforcementof marketingprograms
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EY Strategic Selling Selling Architecture is based on 100s of leading organizations. It provides an independent model against which clients can benchmark their own sales capabilities.
Change management
Customer centric operating models
Sales Effectiveness
Customer value proposition
Customer segmentation
Revenue/coverage planning
Pricing and profit management
Customer experience
Marketing
Sales methodology
Pipeline management
Sales forecasting / Quota Management
Performance management
Key account management
Compliance
Organization, structure, roles
Recruitment and selection
Talent management
Competency management
Incentives and reward
Culture and comms
Managing relationships
Value delivery
CRM
Customer interaction
Enterprise connectivity
Sales dashboards
MIS
Propose/contracting
Solution development
Opportunity qualification
Opportunity identification
Account planning
Understanding customer needs
Sales strategy and planning Sales management People and skillsSales process Technology
and tools
…apply EY’s Sales Transformation Capabilities…
EY’s Strategic Selling Architecture
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We will leverage our significant sales experiencewith other clients to help you transform your sales capabilities
For a global technology company, we transformed their sales capability as part of a transition from a product-focus to a customer-centric operating model
• The client’s technology business had a goal to be more of a strategic partner and deliver complete solutions that met their customers needs.
• This strategy represented a significant opportunity to deliver growth objectives, but also presented a challenge as their account teams were not used to implementing a more consultative approach to their customers.
We delivered a training program for the account teams to enable them to:
• Better connect with customers on broader-based business issues.
• Apply a consistent approach to diagnosing customers’ complex problems.
• Communicate structured and relevant solutions to those problems.
• In addition, EY provided insight and input to the key decisions needed to give on-going support for the teams when back in the field. This was to ensure a sustainable transformation was achieved.
For a global document management company, we redefined the Sales operating model and identified $100m in cost saving
• Working collaboratively with the client we designed a set of new operating model design principles for a lean low-touch indirect sales organization. We conducted an end-to-end process study, identifying key pain-points resulting in high costs and / or lost revenue and identified areas for cost savings.
We performed analysis to identify the $100m cost savings in the following areas:
• Product and service offering rationalization analysis
• RACI – identifying areas of complexity and opportunity
• Sales productivity assessment and identified areas for headcount savings
• Billing and collection process improvements
• We recommended key tactical and strategic actions required to ensure the high-end print solutions business was able to hit profitability targets over the next 5 years, including internal process and external market facing changes.
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At a major telecommunications provider, we increased their field sales productivity by 15% focusing on ‘right first time’
• The client has annual revenues in excess of £100n, employing 400,000 people worldwide and has 35,000 FTEs in sales functions. Although market leader their CEO sees their business as being too division, product and geographic centric. The CEO believes commercial excellence program can deliver 3-5 points in market share.
• EY is supporting the client in developing a common framework for Commercial Excellence across the organization, identifying shared needs for sales and marketing solutions and toolkits across the eight major business units. We are also developing an objective assessment of commercial performance across the Bus, and identifying areas focus within Commercial Excellence to inform a roadmap for 2015 and beyond.
• EY is facilitating their Strategic Road mapping workshops with the top 60 Commercial Excellence leaders of the group.
We worked with a large steel producer to deliver a detailed design of a new operating model for their pan-European Sales and Marketing function
• The client has annual revenues in excess of £12bn, employing 40,000 people worldwide. Their product-centric business suffered from poor results in Q4 FY08 and Q1 FY09, and customer experience was poor.
• EY provided support to set up a large scale sales and marketing transformation. We worked collaboratively with the client to prioritize marketing and sales activities and develop marketing strategies aligned to the new high-level operating model. We developed a detailed operating model design with process maps and requirements for the critical processes. Working with the client we also developed a best practice account planning process, and a database that provided a single customer view allowing greater transparency across the organization. Finally, we created a detailed roadmap for change with critical path and benefits tracking tool and reporting capability.
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EY | Assurance | Tax | Transactions | Advisory
Ville Salomaa Nordic Sales and Service Transformation Lead, Advisory
Mobile: +358 40 5354767 E-mail: [email protected]
Jukka Metsäniemi Senior Manager
Mobile: +358 50 376 1117 E-mail: [email protected]
Martin Cardell Partner
Mobile: +46 703 51 77 33 E-mail: [email protected]
About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, *each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
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Interested in sales transformation? Contact us!
EY’s Nordic team