Achieve Sales And Marketing Excellence WCBF Award Winning Program

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Achieve Sales and Marketing Excellence: Lean Six

Sigma Research Can Guide the Transformation

Alan G. Chute Ph.D.

Lean Six Sigma Black Belt

Strategic Marketing Vice President

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Outline

• Sales Effectiveness Predictors

• History of Six Sigma Project

• Key Findings

• Business Benefits

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History

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Sales Excellence Project History

• A Sales Excellence Team was formed at the request of

Unisys CEO Joe McGrath (it included 18 global sales

leaders and was led by SVP Curt Girod)

• During February 2005 – the team created 15 business

cases for their major challenges – then selected the top 4

problem areas to address in the 1st wave of Six Sigma

Lean projects.

• These areas were: Consultative Selling, Cross Selling,

Effective Sales Leadership, and Win Ratio for Large

Opportunities >$50M.

• The goal was to improve sales process performance.

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Four Sales Excellence Projects

Win Ratio

Cross Selling

Effective Sales

Leadership

Consultative Selling

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Six Sigma refers to:

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Six Sigma Lean Toolbox

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UNISYS SALES PROCESS

Identify Opportunity Manage Opportunity Generate Proposal Close Sale

CLIENT BUYING CYCLE

Client has

an issue

Decisions

Maker recognizes

need & value

Client requirements,

budget, decision time

frame are set

RFP, RFQ,

RFI sent

Client waits for

responses

Client

assesses

responses

Unisys on

short list

Decision maker

selects Unisys

Contract

Negotiation

begins

Suspect

ACCOUNT MANAGEMENT

DECISION POINTS - DEAL REVIEW BOARD

Improve Sales Process Performance

Sales Process Execution Strategic Business Planning Client Business Planning Sales Activity ManagementSALES LEADERSHIP SYSTEM

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Key Elements in Six Sigma Projects

• VoC - Facing these challenges, it took a high degree of determination on the part of our black belts and significant patience and support of hundreds of sales executives responding to surveys and interviews, to successfully complete both the measure and analyze phases of these projects.

• Focus on Vital Few Xs - During September – we realized that these improvement teams shared several common vital few X’s; as a result, the teams joined together to plan the improvements

• Executive Commitment - During November – we presented the findings & suggested improvements to Peter Blackmore–he shared them with the executive committee the following day, made immediate changes in our DEAL REVIEW BOARD process, and asked black belts to help shape the content and focus of the February 2006 leadership sessions. He specifically asked the teams not to introduce any further improvements during Q4, but to hold off until Q1.

• Performance Objectives - During December – Several key metrics were approved for inclusion in the 2006 performance objectives of our sales leaders and sales professionals

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Key Findings

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Win Ratio – Large Opportunities

• Effective opportunity qualification and planning creates success

– 86% win ratio with a well thought out and executed Target Account

Selling (TAS) strategy

• Pre-positioning well before the RFP is critical to winning

– Wins averaged 261 days and losses averaged 35 days pre-RFP

• From interviews they found that what matters most to clients is…

– We know how to do it – technical solution and past performance

– The strength of our relationship – at company and project level

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Consultative Selling

1. Gaining knowledge about the client and recording it

with discipline and rigor

– Salespeople who did discovery that hit 242 percent of their

target, almost five times greater than those that didn’t.

2. Once prepared, spend time with clients

– Our top performers spent 68 percent of their time client

facing, versus 37 percent for low performers.

After analyzing 180 factors, the team identified two factors that

accounted for more than half of the variation in performance:

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Cross SellingNA & EU

• The ability to cross sell products and services is dependent on quality of Client Business Plans (CBP)

– When testing this new quality measure against a sampling of accounts they noted a near 100% win ratio on cross selling opportunities when the CBP excellence review score exceeded 70 (on a scale of 0-100)

– And a near 100% loss ratio when the score was less than 50

• Statistical analysis highlighted that the factors critical to winning were: Solution alignment to needs, CBP workshop training, & active relationship with C-level client executives

• They also found that the degree of our sales leaders’ guidance of CAE’salso influenced success

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Effective Sales LeadershipNA & EU

• Successful teams are led by sales leaders

highly skilled in 4 areas:

– Sales activity mgt

– Building positive connections

– CBP execution

– Developing/executing strategy

• Sales teams with highest client facing time

are more successful

• Successful teams always provide visibility to

top opportunities & accounts

• Teams that receive more than 3 hours of

coaching per month are more successful

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Business Benefit

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Business Benefit

Sales excellence improvements helped enable the transformation

to the account centric model targeting Top 500 accounts.

As you would expect, everything begins with a better understanding of

our client’s needs. Hence, client research and discovery forms the

foundation of effective client business planning.

Our sales leaders focused on guiding our sales executives through

the client business planning process during 2Q and assessing the

quality of these plans during 3Q. “CBP Blitz Program”

We’ve seen that effective client business planning helps build the

pipeline; applying targeted account selling methodology helps

improve the quality of our pipeline and improvements from the Win

Ratio team increase the chance of winning MegaDeal pursuits.

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Business Benefit

Statistical analysis indicates that conducting a discovery

client focus workshop results in higher CBP Excellence

Review scores

– Accounts that DID conduct a workshop averaged score of 74

– Accounts that DID NOT conduct a workshop averaged 43

– In other words, the Average CBP ER score was 72% higher

for those conducting a workshop

More specifically, the results from our

Consultative Selling team included…

74

43

72%

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• Effective Client Business Planning helps build the pipeline– High quality CBP accounts grew $22M per account in 4 months

– Low quality CBP accounts grew $2M per account in same period

– High quality CBP account pipeline grew $1.5B in same period

• Dollar win ratio improves several months after CBP session– $ Win Ratio (before CBP Session) = 28%

– $ Win Ratio (8 months after CBP Session) = 49%

– Trend begins 3 – 5 months after CBP session

• Most importantly…Effective Client Business Planning helps you win more business– Ave $ won per account was $739K greater (in 4 months) for high

quality CBP accounts

– We can expect to win at least $235M (106 x $2.2M) of incremental business over a 12-month period from these accounts with high quality CBP’s

Business BenefitCross Selling – NA & EU

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Business Benefit

• Effective Sales Leadership – NA

– 2nd half 2006 orders increased by $45M over prior year

– More impressive was that 4th quarter order levels resulted in a

30% increase over 4Q05 and the highest order performance

in the last 3 years

• Effective Sales Leadership – EU

– 3Q YTD order performance for their six target countries grew

by $269M over prior year, which represented a 36% increase

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Business Benefit

Win Ratio Increases when MegaDeal interventions (Target

Opportunity Planning session, Black Hat Competitive

Intelligence session, and Technology Evaluation Team

session) are utilized in the pursuit.

Opportunities

Wins

13% 42%

Additional

$286M

in orders

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Global Six Sigma Award

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Best Achievement of Six sigma in Sales and Marketing: Unisys

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Six Sigma = Business Excellence

• New Processes

• New Metrics

• New Executive Reports

• New Sales Skills Enhancement Courses

• A Lot Of Communications

• Targeted MegaDeal Support Teams

• Sales Leadership System Enhancements

• Coaching And Guidance for Sales Leaders

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Backup Slides

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Communications

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What we heard…

“Voice of the Customer”

– “When we reached the right mixture of price and contract

terms.” $95M WIN

– “Unisys won the technical score on the RFP process. It was

70% technical.” $175M WIN

– “Lack of detail for the solution. It was very conceptual rather

than being specific. This was the main reason Unisys was not

selected.” $80M LOSS

– “There was not enough proven confidence in the Unisys

solution.” $200M LOSS

Define

Measure

Analyze

Improve

Control

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Sales Management

Partner/CRE/PSE

SMEs

DRBs

Capture/Proposal Team

Yes

No

Yes Yes

No

No

Identify/Manage

Opportunity

Close SaleDevelop & Refine

TAS Opportunity

Plan

Assemble

Mega Deal

Capture Team

Resources

Conduct Target

Opportunity

Planning (TOP)

Workshop

(1day)

Refine Opportunity

Plan and Execute

Capture Strategy

following Capture

Management

Guidebook

Submit Proposal to

Client

Submission

Authorization

Decision

Validate TAS

and Schedule

Mega Deal

Facilitated

Workshops

Conduct

Monthly

Cadence

Reviews of

TAS Plan

Conduct Black

Hat Competitive

Intellegence

(BH/CI)

Workshop (1day)

Conduct

Technology

Enablement Team

(TET) Workshop

(3days)

Capture

Go/No Go

Decision

Proposal

Bid/No Bid

Decision

Assemble

Proposal

Team and

Develop

Proposal

Complete

Required

Capture Team

Activities prior

to RFP

Launch

Capture

Team

New Work Flow for Mega Deal Support Process

What’s changing . . .

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What’s changing…

• Improved Capture Team Staffing– A-Team Capture Resource List

– Assigned to select few; not spread too thin

• Executive Support– Mega Deal List ID & management

– Early staffing decisions

• Additional Resources– Capture management guide

– Win ratio reporting

• Expert teams available for:– Target Opportunity Planning

– Black Hat Competitive Intelligence

– Technical Enablement Team

• Better Deal Qualification

– Capture team trained in TAS/Siebel

– “Go/No Go” well before RFP

– Commit time, resources, & capture manager

Define

Measure

Analyze

Improve

Control

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Win Ratio

Cross Selling

Effective Sales

Leadership

Consultative Selling

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Credits

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Credits

None of these benefits would have been possible without the

dedication and leadership of our champion, the project

sponsors, black belts, green belts, and team members. I’d

like to thank these teams for their contribution to the success

of our client facing account teams and sales leaders. The

combined benefits of these six improvement projects

amounted to over $836M of orders during 2006.

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Credits

• Curt Girod SVP was our champion and a strong advocate for change from the beginning in 2005 through the implementation in 1st Quarter 2006. Steve Latimer VP was our champion for the balance of 2006.

• These projects were assigned 1 Master Black Belt Darwin Cox; 13 Black Belts & 6 project sponsors; in the interest of time, I won’t be able to name all of the team members, just the black belts & sponsors.

• Consultative Selling – Black Belts were Barb Diep & Sam Racine –Sponsor was Frank Dutches

• Cross Selling – NA – Black Belts were Ben Corlett, Rose Scannell & Helene Schultz – Sponsor was Scott Vogel

• Cross Selling – EU – Black Belts were Amjad Aziz & Marc Vanbrabant – Sponsors were Marc Lambotte & Scott Vogel

• Effective Sales Leadership – NA –Black Belts were Maureen Palo & Mike Tobias – Sponsor was Bob Johnson

• Effective Sales Leadership – EU –Black Belts were Jean-Jacques Brebion & Luis Manuel Garcia –Sponsors were Paul Hoyland and Bob Johnson

• Win Ratio – Large Opportunities –Black Belts were Alan Chute & Stan Mattos – Sponsor was ToniAnn Thomas

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Thank you!

Alan G. Chute

Unisys Imagine It. Done.

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Unisys History of Innovation for 130 years

2006 Customer Revenue by Geography = $5.7BM

• 31,000 employees strong in 100+ countries

• Outsourcing, Security, Open Source, Technology

Real-Time Infrastructure, Microsoft Solutions

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Unisys Six Sigma Program History

Summer of 1986 first Six Sigma Black Belts at Unisys Salt Lake Printed Circuit Operations.

Clifford Aimes, Unisys Plant Manager and Dr. Mikel Harry, Motorola Process Expert coined

the term Black Belt to describe the newly trained process engineers. The newly trained

engineers were ninjas – humble yet powerful creatures who masterfully manipulated

their weapons, hands and feet to silently subdue their enemy – process variation.

Today a major challenges for Unisys is to complete the transformation from a technology

company to a global IT services he company. We are doing this in an increasingly

competitive and global market place, that has shrinking demand for mainframes and

large servers, and customers are focused on year over year cost reduction in outsourcing

services. Six Sigma is seen as a way to accelerate the transformation.

The latest waves of Six Sigma Lean was started at Unisys in March 2005. Two waves

of Black Belts were trained in the first year, and 20 major projects were charted that

spanned the sales and delivery processes.

Following the training in 2005, 9 MBBs were hired, and more BBs were selected, trained,

and deployed in all geographies, business units and functions within Unisys. The current

population of Black Belts is 125, and 550 Green Belts respectively. Six Sigma Lean Black

Belts are the driving force behind all major transformation initiatives at Unisys. The 2006

combined benefits include $800 M dollars in growth and hard dollar savings of $25 M.

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Sales Excellence Project History

• Once approved in March 2005 by Executive Committee, these projects were assigned to 6 Six Sigma Lean improvement teams (4 in NA and 2 in Europe)

• During July – the win ratio team presented Quick Hit Improvements to Peter Blackmore President of Sales and Marketing – he approved 6 of their 7 improvement recommendations

• Teams faced significant Challenges in defining their project measures

– initial scope was quite large

– many processes were not documented

– there was limited process discipline

– metrics were either inconsistent or non-existent

– they had to go digging for data

– information in our CRM system was incomplete or unreliable

– there was no sales leader curriculum

– the black belts found that majority of Sales Leaders and executives had not been trained in either targeted account selling or sales leadership system

– many key players had little patience for the DMAIC process

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Six Sigma (DMAIC/DMADV) Flow