Michael Vad

Managing Partner

mvad@spencerstuart.com

Microsoft Sales Leadership Conference, Sølyst, February 5, 2015

CSO rollen – hvor er den på vej hen?

Topics for Discussion

> Introduction to Spencer Stuart

> The Rise of the Transformational Sales Leader

> Sales Officer Assessment and Cultural Fit

Spencer Stuart

Who we are

> Founded in 1956 and still privately

held, Spencer Stuart helped

establish the senior-level

executive recruiting industry

> More than 300 consultants with a

unique blend of professional

search experience and

specialized industry and functional

expertise

> Experienced and highly

knowledgeable associates,

researchers and executive

assistants round out client service

teams and contribute to our

knowledge of relevant candidate

pools

Where we are

> In 55 offices in 30 countries

around the world

> With select clients, from major

multinationals to emerging

companies and nonprofit

organizations, helping to address

their senior executive leadership

requirements

> In the boardrooms of companies

around the world, from the largest

multinationals to private equity-

backed businesses

What we do

> Partner with companies to find CEOs,

presidents/COOs and their senior

management teams, conducting more

than 4,000 assignments each year

> In addition to executive search, we:

• Recruit exceptional directors and

provide counsel on governance

issues

• Assist boards in CEO succession

planning

• Conduct management

assessments of senior executives

• Advise on board evaluations and

effectiveness

3

Chief Sales Officer Practice at Spencer Stuart

With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search

an in-depth understanding of talent needs and marketplace realities.

Sales Operations

Major Account Sales

Vice President Sales

Channel Management

Managing Director

Chief Revenue Officer

Vice President Sales & Marketing

Business Development

Government Sales

CANDIDATE POOL EXPERTISE

SALES FUNCTIONS

> We are a global, dedicated team of 25

consultants, many with a sales

background.

> We have conducted more than 1,000 sales

searches over the past three years for

clients that range from large multinational

companies to private equity firms and their

portfolio companies to emerging companies

and nonprofit organizations.

> For each assignment, we assemble a

“best team” combining industry knowledge

with functional and geographic expertise.

We also conduct ongoing calls to review

market intelligence and candidate pool

development.

5

Sales Officer Tenure

6

The Changing Role of the Sales Executive

“We need a head of sales who can deliver more than revenue. We need him to change the way we go to market, broaden our relationships with our customers and identify new opportunities for our products.”

Hiring CEO

What’s Driving the Change?

1. The customer buying process has evolved

• Today´s customers are more empowered and better informed

• They have progressed well down the purchasing process (options, references,

pricing) before we meet them

• This leads to more detailed and specific requirements

• The traditional company-customer relationship has been redefined

1. The Customer Buying Process has Evolved

“People buy from people they like and trust, and that used to be 90 percent of the game, but today it’s 10 percent. It might get you a seat at the table, but if you can’t quickly identify how you can work with the customer and how you can help solve their problems, save them money or drive revenue, it’s going to be a short conversation.”

Bill Scannell, president of global sales and customer operations at EMC Corporation

What’s Driving the Change?

1. The customer buying process has evolved

2. Data Analytics is being applied to the sales function

• Big data has significant impact on sales force management

• Integrated customer information and predictive analytics deliver “smarter” sales

approach

• Allowing for more effective segmentation, identification and retention of high-

value customers

• Enabling digitized, data-driven management of sales force performance

• CSO ensuring that the entire organization embraces the impact that data makes

on sales and the company

2. Data analytics

“Data analytics skills are a big, big deal right

now,” said Vivek Sankaran, senior vice

president and chief customer officer of Frito-

Lay North America. “It’s not just about

cranking out a spreadsheet. It’s about figuring

out how to get to the root causes and how to

stay ahead of your customers’ needs.”

“Data analytics skills are a big, big deal right now. It’s not just about cranking out

a spreadsheet. It’s about figuring out how to get to the root causes and how to

stay ahead of your customers’ needs.”

Vivek Sankaran, senior vice president and chief customer officer of Frito-Lay North America

What’s Driving the Change?

1. The customer buying process has evolved

2. Data Analytics is being applied to the sales function

3. Markets are more competitive

• Finding new and retaining existing customers has never been more challenging

• With the CSO manning the wheel companies must drive new go-to-market path

• Success = 3-5 year view; striking the balance between progress and ability to

adapt

3. Markets are More Competitive

“The market has become hypercompetitive. You need to be

looking out three to five years at how you go-to-market; and working toward

that strategy to optimize across your channels and build the right capabilities

in your field.”

Rob Salmon, President Go-to-Market for NetApp.

Sales Officer Leadership Continues to Be Stretched…

Identifying a Transformational Sales Leader

> Broad skill-sets in people, processes, structure, culture and strategies

> Cross-functional influence to inspire more than just the sales organization

> Critical thinking skills

> Success driving development of new go-to-market strategies not only to

lead sales, but guide transformational change as well

> Ability to infuse new talent and create a pipeline of capability for future

leadership success

Chief Sales Officer: Evolution to Broader and Deeper Skill Sets

• Value proposition & offer

• Segmentation & targeting

• Financial modeling of channels & segments

• Planning for growth

Sales Strategy

• Applications & tools

• Sales process

• Order-to-cash processes

• Sales operations

• Sales dashboard

• ROI analysis by channel

Cross-Functional

Go-To-Market Systems

• Processes & metrics

• Sales compensation driving selling behavior

• Measuring & reporting

• Alignment of resources with most attractive segments

Performance Management

• Roles & responsibilities

• Coverage by channel & segment & geography

• Account planning

Account Coverage & Deployment

• On-boarding

• Training

• Development & coaching

• Rotational planning

Recruitment & Development

Stages of Competencies & Cultural Attributes Skills & Experiences

Enterprise Leader

• Global team of 250+ people

• Installed base and verticals

• Organizational & political skills

• Strategy & P&L management

• Maturity in leadership

Organizational Leader

• Team of 50-250 people

• Broad scope of geographies & channels

• Management of channel conflict

• Team sell with partners

Group Leader

• VP sales of emerging company or regional sales leader

• Strategic involvement in sales cycle with biggest accounts

• Cross-organization collaboration

• Builder of new channel models and partnerships

Team Leader

• Small team of direct reports

• Results-oriented

• Player/coach

• Focused on biggest customer prospects

• Greater risk tolerance

Critical Capabilities

Driving Result

Strategic Thinking

Leading Change

Leading People

Collaboration & Communications

Building Capabilities

Customer Mindset

Critical Capabilities of Sales Officers

Situation drives weighting of each capability and proficiency level

Cultural fit matters for business in general — and executive search in particular

18

Companies with consistent cultures outperform

their peers

When executives fail, it tends to be due to cultural

incompatibility

“When an executive hire didn’t work, what was the

reason?”1

1. Numbers sum to more than 100% because some respondents provided multiple responsesSource: Kristof-Brown, A. L., Zimmerman, R. D., & Johnson, E. C. (2005). Personnel Psychology; Burt, R. S., Gabbay, S. M., Holt,

G., & Moran, P. (1994). Acta Sociologica, 37(4), 345-370; Gordon, G. G., & DiTomaso, N. (1992). Journal of management studies, 29(6), 783-798; Burt et al. (1994); SSI client phone survey