Kelsey Brown, Amanda Buehler, Emily Fishbein, Mary Clare Gibson, & Caroline Hennessey

� Arck Systems acquired Lux Software � Changed discount approval system � Reduced Lux’s accelerators � New compensation plan resulted in over

50% of sales force leaving Lux

Overview!

IS THE COMPENSATION PLAN THE PROBLEM?

�  We did not find compensation to be the issue

�  Continuing to implement Bryan Mynor’s compensation plan

Mynor’s new compensation plan that raised Lux’s base commission from 4% to 11% and included a single .5x accelerator

Our Approach

� New Company � Recruitment & Evaluation � Reorganization & Integration �  Training

Arck&Lux !Computer Systems � Mission Statement “Arck&Lux Computer Systems strives for innovation and efficiency by leveraging new computer technology to add value to our customers” �  What is our business? Computer

technology � Key focus: Innovation and Efficiency

Goals 1.  Increase enterprise information technology

market share 2.  Work cohesively as a hardware and software

company 3.  Establish credibility as a full-service provider 4.  Make transition for current clients as smooth as

possible 5.  Satisfy customer needs faster 6.  Maintain existing customer base while acquiring

new clientele 7.  Explore and adopt cutting-edge technologies 8.  Strive for constant improvement

Sales Objectives

1.  Achieve annual sales of $60 billion 2.  Acquire ten new customers a month per

salesperson 3.  Respond to customer questions and

concerns within half a business day 4.  Fully transition to integrated, team-

selling structure within a month of implementation

Strategy

� Differentiation strategy as a full-service provider of both hardware and software

� SCA: Owning a leading middleware provider ensures that applications run efficiently and allows better integration of hardware to software applications

New Company Culture Company Culture Objective: Foster an atmosphere of innovation and teamwork

Core Values �  Integrity �  Respect �  Collaboration �  Learning

Our Sales Force:!Recruitment & Selection

� HR and district managers overseeing hiring process

� Hiring account managers, hardware specialists, and software specialists to fill vacancies

RECRUITMENT

Hardware Specialists �  Engage in technical

selling �  Increase business by

providing technical computer systems information and assistance

�  Persuade CIO or CTO of Arck’s superior features

Software Specialists �  Engage in relationship

selling �  Build rapport and

listen to customer needs

�  Assuage concerns of finance executives over product

Job Analysis: !What are we doing currently?

Competencies We Look For

Competencies

Achievement Orientation

Persuasiveness

Analytical Ability

Interpersonal Skills

Communication Skills

Decision Making Skills

Leadership

Team Building

Time Management

Flexibility

Job Description

Account Manager

Software Specialist

Hardware Specialist

Evaluating !Current Employees � Check-in with current employees � Review the company’s new direction � Discuss six-month evaluation check-in �  Factors to consider in retention:

performance, efficiency, background, personality, growth potential, performance

Six-Month Evaluation

Sales Results

Job Knowledge

Management of Territory

Customer and

Company Relations

Personal Characteristics

Meeting sales quotas and obtaining new accounts

Company & product knowledge

Effectively managing all of their accounts while paying attention to detail

Maintain positive relationships with all customers

Display competencies the company stands for

How will we recruit?

Sources �  Referrals from other

firms �  Internet

Selection Procedures �  Application blanks �  Personal interviews �  Personality tests �  Reference checks

HIRING PROCESS

1.  Submit application blank of resume and cover letter online

2.  Round one interview 3.  Round two interview and personality

test 4.  Reference check 5.  Selection

Round One Interview

� Conducted by HR �  Telephone/Skype interview � Unstructured interview

•  Tell me about yourself.

•  What do you know about our company? Our industry?

•  Why are you interested in this position?

•  What motivates you?

•  What unique qualities will you bring to our team?

Sample interview questions

Round Two Interview

� Conducted by District Manager �  In-person interview � Structured interview with selling exercise �  Focus on behavioral questions �  Followed by administering Walden

Testing

Round Two Interview Questions

1 •  Tell me about a time you worked effectively under pressure.

2 •  What did you do in your last job to be effective with

organization and planning? Be specific.

3 •  Tell me about a time when you had to implement change in

your area of responsibility.

4 •  What did you do in your last job to contribute to a team

environment? Be specific.

5 •  Tell me about a situation in which you had to use your

negotiating abilities.

Applicant Interview Form

Selection criteria �  Presentation/

Impression �  Work Experience �  Sales Ability �  Required Skills �  Teamwork �  Enthusiasm

Restructuring & Integrating the Sales Force

Geographic Organization

CEO

EVP of Sales

U.S. Head of Sales

Region 1 Manager

District 1 Manager

District 2 Manager

District 3 Manager

District 4 Manager

District 5 Manager

Acount Manager

Account Manager

Account Manager

Region 2 Manager

Region 3 Manager

Region 4 Manager

Region 5 Manager

Region 6 Manager

�  6 regions �  30 districts �  6,000 total

salespeople

Sales Regions Mountain

Southwest

Pacific

Midwest

Northeast

South

Distribution of Sales Force �  6,000 employees throughout the U.S. �  Focus on Midwest, Northeast, and

Pacific � Distribute employees according to

largest populations � Midwest – 8 districts � Northeast – 6 districts � Pacific – 4 districts

Distribution of Sales Force

Team Selling

� Matrix organization that brings collective expertise to clients

� Account managers responsible for entire team

� Selling centers located on the premises of major customers

Team Selling Structure

Account Manager

Hardware Specialist

Software Specialist

Marketing Specialist

Customer Service

Specialist Finance

Specialist

Sales Force Training

Analyzing Needs

�  Training efforts focused on account managers and sales representatives

� Both current and new employees will receive training

Training Objectives

�  To ensure that all employees are on the same page about the direction of the new company

�  To integrate to team selling approach �  To become knowledgeable of both

hardware and software

Topics � Product Knowledge – hardware and

software � Company Orientation – new team selling

structure �  Time and Territory Management –

reorganization of sales force

New Sales Representatives

•  Five day training at company headquarters •  Creates sense of belonging •  Peer-to-peer communication

75% classroom training

•  Located in region •  Classroom training put into action

25% OTJ training

Mentor program

Current Sales Representatives � Continue current processes � One day retreat

� Combined with new sales reps �  Team building activities

� Company orientation focus � Understand new policies and procedures

� Mentor program

Account Managers

� New position �  Five day training at HQ �  100% classroom training – role play

component and case studies � Mentor Program

Evaluation & Review

� Do employees after training understand both hardware and software?

� Do employees feel comfortable and confident working in their sales teams?

� Do employees understand Arck&Lux’s new direction?

Further Training

�  Virtual �  Once a month �  Approximately one

hour

�  Biannual Training �  Review company

procedures �  Promote unity

amongst employees

Conclusion � New Company � Recruitment & Evaluation � Reorganization & Integration �  Training Result: a productive, cohesive, and satisfied sales force