5 Steps to Better Sales Performance Management September 10, 2014
Dec 07, 2014
5 Steps to Better
Sales Performance Management
September 10, 2014
Today’s Featured Speakers
Dan Koellhofer
Vice President, Product Management
CallidusCloud
Jennifer Kling
Product Marketing Manager
CallidusCloud
Pace of change
• 25% of goods and services shipped and sold in the last 10yrs Pace of Change
Products & Services
Pace of Change – Broadcast Media
Channel 1 Channel 2 Channel 3
Pace of Change - Communications
The pace of change is staggering.
Are you keeping up?
Agenda
On-boarding
Effective territory & quota planning
Coaching and appraisals
Compensation & rewards
Gamification techniques
On-boarding
What are bad sales
hires costing you?
• Interview Costs
• Training
• Compensation
• Lost business Opportunity
• Negative Impact on
Customers
• Negative Effects on Morale
15
times base salary
Reference: Dr. Bradford Smart, PHD; Publication Avoid
Costly Mis-Hires
>500k
Cost of a bad hire
Do you hire your problems?
• Do you hire when you need new reps?
• Do you hire who you “like”? -The sales
“halo” effect!.
• Do you hire the bottom 20% that most
companies are just recycling. (Someone
else's non-performer)
• Do you hire someone who can sell you
product vs. just themselves?
• ‘Poor fit to the job’ – one of the top five
reasons for high sales turnover
• Do you verify performance or Income?
Verifying income is easy, but verifying
performance is tricky.
Reference: 2012 Sales Rep Hiring/Compensation Analysis
47% Companies that say
their sales hiring needs
improvements
The Secret Recruiting Formula
1. Begin with the end in mind
2. Use quantitative tests
3. Cast a wide net
4. Share and collaborate
5. Timing is everything
SalesSelector Solution
18% shorter time-to-hire
52% Shorter
time-to-productivity
• Quantitative Sales Test
• Powerful Videos Interviews
• Collaborate with Distributed
Stakeholders
42% CSO Insights, Sales Management Optimization Study 2014
Time is Money.
>10months Time to become productive
for new sales hire
% Reps don’t make quota
1. Pre-Boot Camp Training
• Self-Service Product & Solution Training
• Certification Testing
2. Boot Camp
• 1 Week Sales & Solution Training
• Builds on Initial Training
3. Mentor Program
• AE Assigned Sr. AE Mentor
• Mentor Includes in Meetings/Calls
4. Performance Tracking
• KPI’s Tracked & Monitored
• Proactive Coaching in Weak Areas
Accelerating the Time to Revenue for New Hires
eLearning overview
eLearning on Any Device
Effective Territory & Quota
Planning
POLL:
Do you have a good idea of
what each territory’s potential
value is?
❏ Yes
❏ For some
❏ No
Typical Quota Process
• Forecast science
• Technology limitations
• Inadequate governance and process
• Over and under assignment policies
• Reliance on historical performance
• Intuition stacking
• Static hierarchies
• Rigid / forced interlock
• Opportunity disconnect from forecast
• Gaming & agent influence in goal negotiation
• Quota frequency
FORECAST & GOAL LAYERS INPUTS QUOTA QUALITY INFLUENCERS
Source: Accenture
How to Improve the Process
1. Understand your current process
2. Understand territory previous performance
3. Understand territory values
4. Create territories based on value
5. Reconcile territory plan against overall corporate goals
How Technology Can Help
• Standardization & Automation
• Data Analysis for Decision Making
• Enablement
• Tracking & Monitoring Through Data Analysis
Standardization and Automation
• Systems Can Define &
Support Standards
• Must be Flexible
• Support, Not Inhibit,
Change
• Automation
• Workflow Processes
• Communications
• Supports Rapid Change
#SalesTerritory
Data Analysis for Decision Support
Data Supported Decisions: Bring
different sets of data together to
support the decision making
process.
• Historical data to support recurring
revenue, account retention targets
• Market data – market share,
addressable market, product
penetration – to support new
business and growth targets
• Pipeline data from CRMs to support
both
• Training and coaching to match
capabilities
#SalesTerritory
Simplify and Streamline Financial Planning
Easily Allocate Products and Accounts to Territories
Coaching & Appraisals
Challenge
• Companies lack of visibility into detailed sales performance metrics to
support the sales management process
• Without complete view into performance, sales managers are unable to
understand individual and team strengths and weaknesses
• Inefficient sales coaching and limited tools has led coaching to be the
weakest competency of all front line sales managers
Why Coach Sales Reps?
Sales people who receive fewer
than two hours of coaching
per month achieve 90% of quota.
Sales people who receive at least
three hours of coaching per
month achieve 107% of quota.
Sales people who receive 2-3
hours of coaching per
month achieve 92% of quota.
POLL:
Does your company follow a
formal sales coaching
process?
❏ Yes
❏ No
❏ Every manager has their own
process
Coaching Process?
CSO Insights, Sales Management Optimization Study 2014
Top
Performers Sales Rep A
Sales Development Plan: Sales Rep A
A recipe for successful coaching and performance
management
Ingredients:
• Sales Manager
• Sales Rep
• Process
• Metrics
Directions:
• Align results with activities and skills
• Evaluate existing team
• Develop plan
• Socialize
Tips for meaningful coaching:
• Timely
• Objective
• Accurate
• Relevant
• Individualized
Dashboard Overview
Compensation & Rewards
Challenge
• Companies spend on average 11% of revenue on incentives and
commissions
• Gartner estimates that organizations that use spreadsheets and
homegrown tools to pay out commissions, overpay by 5-12% annually
• Low to no visibility to over-payments
• Complex, opaque plans lead to lost time due to disputes and shadow
accounting
#1 Desired Improvement to Compensation Program
Source: World at Work & OpenSymmetry Sales performance and Technology Survey
Things to Consider
• Simplify incentives structure
• Remove layers and clauses that cause confusion
• Saves time and money
POLL:
How confident are your sales
reps in the accuracy of their
commission payouts?
❏ Very confident, no issues
❏ Somewhat confident
❏ Not at all confident
Opportunity to Modernize: Commissions
Modernize with Compensation Management:
• Commissions calculation automated
• No need for separate tracking – track via mobile device
• Minimal need for review and corrections
• Eliminate over-payments
Gamification Techniques
Cash is Not Always King
Motivation beyond financial:
• Intrinsic motivation
• Extrinsic motivation
• Achievement motivation
Top Motivators of Sales Success
Source: Aberdeen Group
Popular Gamification Techniques
• Leaderboard for transparency and recognition
• Rewards for incentives
• Group board for group incentives
Benefits
Incent Tactical, granular behaviors with non-
monetary gamification programs
Summary
Questions?
Dan Koellhofer
Vice President, Product Management
CallidusCloud
Jennifer Kling
Product Marketing Manager
CallidusCloud