Mindaugas Voldemaras-Irma Pranaityte-Tomas Parnarauskas_ENG_17 TOCPA_15 May 2015

17th International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com 15 May 2015, Vilnius, Lithuania

How to build a sales factory in

a small company.

NOD Baltic case story

Tomas Parnarauskas, NOD Baltic, LithuaniaIrma Pranaityt, TOC Sales and MarketingMindaugas Voldemaras, TOC Sales and Marketing15 May 2015

17th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

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Tomas Parnarauskas

CEO at NOD Baltic - an added value software distributor.

Tomas is also a Coach/Facilitator in Systemic Constellations workshops, Executive Coaching, Business Coaching, Organisational Development, International Transformational Leadership and Professional Development.

Tomas has various certificates in different professional fields such as Neuro-Linguistic Programming, Professional coaching and Business Management, Google Analytics, and others.

www.linkedin.com/in/parnarauskas

Place for the photo of the

presenter


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Irma Pranaityt

Irma works as a project manager/ consultant at TOC Sales and Marketing, UAB (Lithuania) since 2014, works with clients who want to increase their sales in local markets.

She is a PhD student at ISM University, has a Masters degree in International Marketing and Management.

Irma has 8 years experience in manufacturing, retail, marketing and human resources.


presenter

https://lt.linkedin.com/pub/irma-pranaityte/b/11b/662


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Mindaugas Voldemaras

CEO at TOC Sales and Marketing, UAB a company that ensures the flow of opportunities for clients and provides the ongoing sales improvement services for exporting companies.

www.toc-marketing.lt


presenter

https://lt.linkedin.com/in/mindaugasvoldemaras


Your logoImplementation

by the book

The scope SALES EXECUTION

Why change? What to change? To what to change? How to maintain POOGI?

+ what did not work (proven!)+ a complete list of must-have items


Your logoCompany snapshot

(1-1-2014)

Name: NOD Baltic, UABLocation: Vilnius, LithuaniaEstablished: 2005Business: a local distributor of softwareKey product: ESET antivirus (90% revenue)Revenue 2013: 1,14 MEmployees: 12


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Why change?

Symptoms as of 1st Jan 2014

Huge work overload Absolute multitasking Autonomous work No time for selling 100% of sales are reactive (if clients buy, what is a

problem?) Dependency upon (addiction) one product Dependency upon a few irreplaceable people Distrust in +10% growth target


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What to change?

If one knew what to change it would probably has been changed already

motivation system does not seem to work


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Challenges of assessment

How to make an auditor happy:

No documents No job descriptions No visualized procedures and processes Inaccurate data in systems

How the hell they work???


Your logoWhile Building

Current Reality Tree

Were here to define negative factors that you face so we could eliminate them. But before we started verbalizing undesirable effects please just explain how you work


Your logoBuilding

Current Reality Tree

CRT process specifics in a small company

Interviews with EACH of employees (excluding anyone would mean they are less important and create a huge gap of analysis)

The smaller the company, the more UDEs (include them or abandon?)

Questioning leads to immediate changes (good idea, will fix it after the lunch)

Very high expectations (I hope my interview will help you change the world or at least the company)


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What to change?


Your logoBuilding

Agreement On Current Reality

How to define organizational structure when all people work as autonomous agents?


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Sales support

At the office In the field (at the customer)

Existing partners

PR

S..e-commerce

U.M.

CCO

R.O.

CEO

T.P. R.B.

Finance

Small customers

A.M.

Big customers

D.B.

Requests

E.A.L.

Products / supply

D..OERP dev.

A.L.

CTO

D..

New sales for direct customers

Export

OERP

M.S.

Customer service


Your logoTo what to change?

Overcoming resistance to change by verbalizing for employees a direction of the solution

better work conditions

budgetfulfilment*

Decrease workloadReduce multitasking

Assure significant increase in new sales Keep attention/service to existing customers

No increase in staff budgetfulfilment*

*budget fulfilmentimpacts bonuses



New structure that was presented to employees on 3rd Feb 2014


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Sales support


PR

S..e-commerce

U.M. R.B.

Finance

Sales Meeting Coordinator

Outsourced

CEO

T.P.Active sales

R.O.

Supply

meetings

meetings

susitikimai

Partner trainings

Participation in sales meetingsQuote request

Quote


Export

1. Requests2. Problematic

leads3. CVPIS leads

All partners

A.M.

OERP dev.

A.L.

CTO

D..

Customer serviceOERP

M.S.

1. Segment12. Segment2

D.S.

Products

D. or new guy

Quote requestQuote

Existing partners

E.A.L.Problematic leads

CVPIS leads

Customer complaints

Active sales

D. or new guy



New sales processes introducedReactive: License renewals Passive sales from partners Retail salesProactive: Problematic renewals Public tenders Active sales (box products) Active sales (ERP products) Partner process (upselling)



Every sales process has the following: Sequence of steps with durations (in the CRM) Roles and commitments Focus (bottleneck) measurement and its monthly target



Switch from autonomous work to teamwork For the sake of team result no one can run faster than

necessary Every teammate is crucial for the final result Every teammate needs to not only run fast but to pass

information properly Every teammate must focus on his/her own track AND

never overlap colleagues distance



Everything sounds pretty logical except one thing how shall we share our commissions?


Your logoHow to cause the change?

How to enable people start collaborating (sharing information)?

How to assure accurate data in the CRM while avoiding over-data?

What if new model fail? What is plan B?



Employers win:win proposal: Employees commit to work in a baton (relay) model Employees commit to reach focus measurement target

(will be analyzed on monthly basis) Employees commit to reach strategic products sales target

(yearly) Employer commits to pay a salary equal to average actual

salary (fixed salary + bonuses) within last 12 months Employer commits to share among employees whole extra

gross profit (extra Throughput)



People ready to change, lets give them a tool!Usual functionality gaps of any CRM: Sales process steps have no duration option (some CRMs

even provide one single sales process option) Inactivity is not tracked (only activities are tracked) Next action date and its change log Sales funnel is a nice but useless chart

Odoo CRM was chosen 2 months deadline for DBR logic configuration, data

migration and user training



5 3 2 4 4

Lead buffer First time

sales meeting buffer

new contracts

drum

information, not inventorypeople, not machinesError rate ~80%

DBR logic in sales execution



Success factor exploitation of the CCR (=dedicated Field Sales people)Outsourced Sales Meeting Coordinator (a call center role) to avoid any multitasking and internal power authorityWeekly Daily sales meetings to track progress, synchronize activities and discuss improvementsWeekly sales meetings to discuss improvements


Your logoFirst 9 months results

0

5

10

15

20

25

30

35

M

a

r

-

1

4

A

p

r

-

1

4

M

a

y

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4

J

u

n

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1

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J

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l

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1

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A

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g

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S

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O

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N

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v

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D

e

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4

First Time Sales Meetings

First Time Sales

Meetings

Average 23 meetings/month


Your logoFirst 9 months results

0

5000

10000

15000

20000

25000

30000

35000

2014 Q2 2014 Q3 2014 Q4

Active Sales Process Results

Revenue, Eur

Throughput, Eur


Your logoFirst year results

Year 2014 conclusions: Sales process standardization done. Centralized scheduling done. Division of labor done. Daily sync meetings done.

Company started to sell, not only serve incoming purchase requests

Reactive sales revenue increased despite less people in customer service

+15% budget target was fulfilled People received yearly bonus on top


Your logoLessons learned

CRM can be loved by people if configured with common sense Agile way of CRM implementation: cloud CRM + step by step

configuration on demand (vs. never ending IT project) WIP transparency creates a supportive culture Irreplaceable guys can be replaced Sales commissions is not a sales driver New sales conversion depends on the value of software products

and Field Sales competence Management attention and involvement are the critical factors for

success

Exploit every sales opportunityDid not work: Sprinters (lonely hunters) left the company Segmentation mistakes


Your logoPOOGI necessary conditions

Sales Meeting Coordinator

Outsourced


Field Sales

D.P


Opportunity Coordinator

M.S. Inside Sales

M.V.

Daily, Weekly, Quarterly, Annual meetings/reporting/progress tracking

Culture of trust backed by intolerance for failed promises Easy customizable CRM

New roles starting from 2015


Your logoA complete list of must have

Sales process standardization Process steps with durations in days Inactivity trackingCentralized scheduling DBR logic visualizationDivision of labor Eliminate sales commissions Process CCR measurements (the rest in subordination only) From push information to pull informationDaily sync meetingsWeekly, Quarterly, Annual meetings/reporting/progress trackingCulture of trust backed by intolerance for failed promisesEasy customizable CRM


Your logoWhats next for 2015

If you have no problem perhaps your targets are not enough ambitious


Your logoPOOGI necessary conditions

Thank you!

Mindaugas Voldemaras-Irma Pranaityte-Tomas Parnarauskas_ENG_17 TOCPA_15 May 2015

Documents

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international marketing

sales factory

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comyour logoimplementation

comyour logowhat

comyour logochallenge

comyour logoirma pranaitytirma