assessing the sales force talent assmt in reorganization 2 june10

© 2010 The Sales Management Association. All Rights Reserved.

Tom Knight

Partner

Evergreen Growth Advisors

[email protected]

James Killian, Ph.D.

Chief Psychologist & Director of Consulting

Chally Group Worldwide

[email protected]

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

[email protected]

James Killian, Ph.D.

Chief Psychologist & Director of Consulting

Chally Group Worldwide

[email protected]

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


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


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


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?


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


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


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.


Approach to TransformationStep #1 – Define Structural AlternativesTelco decided to create specialized Reps where efficient coverage could occur and high specialized Sales support roles


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


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


• 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




Selecting Assessment Methodology


Sales Specialty Map


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


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


Talent AssessmentTotal Composite Scoring


< 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


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


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



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.


• % 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:


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


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


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
