“Build up your weaknesses until they become your strong points.” - Knute Rockne

Build up your weaknesses until they become your strong points. - Knute Rockne

To keep us on track, and because I only have about 75 minutes to speak, please hold your questions until the Q&A at the end. I will set aside 15-20 minutes for the Q&A part of my presentation. You may write your questions down with one of the pens we provided. Please set phones to silent mode. A copy of this presentation may be downloaded from my website at www.gershenconsulting.com/bscai/sfm.pptx, or from the BSCAI website. www.gershenconsulting.com/bscai/sfm.pptx This presentation is being recorded contact Laura Sweitzer at BSCAI for a copy. Speaker rating Make sure you rate me a 5! Housekeeping 3

If you havent already, pick up a Gershen Consulting business card at the entrance. To be in the running for a free business analysis, leave your business card next to the sign up sheet at the front. The winner will be randomly selected. Easel What would make this a successful presentation for you? Housekeeping 2 4

Sales management is a discipline that can be as tough as, if not tougher than a contact sport like football. 66% of corporate strategies are never executed - Ernst & Young survey. The economy is bad, and it could even be getting worse. In my 50 years of experience, Ive never seen so many businesses struggle this much. Its never been more important to keep your company healthy and growing. Over the years, I have developed some proven strategies to guide your business through these tough times, and today I want to spend about an hour addressing some specific techniques to manage your sales programs while weathering the storm. Before we jump in Why should you listen to anything I have to say? Sales Management: Introduction 5

Grew ABS starting with two employees to become the 9th largest privately held maintenance contractor services company in the US with 13,000 employees and sales of $230 million. Hands-on experience from leading Associated Building Services (ABS) from its inception to its successful sale in 2004. In 2005, founded Gershen Consulting, where my proven abilities as an executive have been used in reproducing companies, driving up the top line as well as increasing the bottom line. Specializes in helping executives shorten their journey to the next level of success. Barnett Gershen 6

Millions Sale ABS Growth History 7

Timeline o 1955 XGI o 1957 Implemented customer and employee appreciation o 1974 Barnett Gershen became President o 1975 XGI changes name to Associated Building Services (ABS) o 1976 Implemented strategic planning o 1980 Established BOD o 1984 Professionalized hiring process o 1985 Implemented Birkman testing o 1986 Implemented customer satisfaction procedures (quarterly) 8

ABS Growth History Timeline (Contd) o 1988 Targeted special markets for growth o 1990 Implemented relational counseling for team building o 1991 Established risk management program o 1995 Established CT management and stock option program o 1998 Closed first of several major acquisitions o 2000 Implemented incentive bonus plan o 2001 Closed last acquisition o 2002 Invested in organic growth sales team and sales support o 2004 Sold to GCA o 2012 GCA sold to Blackstone group 9

Sales Force Management Lets dig in 10

Game Plan: Long-Term Growth Plan The growth program is multifaceted and includes: A customer retention program A same-store sales program to sell to your existing customer base An acquisition program 11

Game Plan: Long-Term Sustainable Growth Plan Outside sales (sometimes called organic growth) The organic growth program consists of sales from: You The outside sales force team Leading and calling the play for the outside team 12

Leading & Managing the Sales Force The GM/you (the quarterback): Up to YOU YOU must manage this process by doing some personal sales, some management, and some coaching. YOU must closely monitor the progress of the sales associates until they have developed a rhythm and procedure that will enable them to achieve both corporate and individual goals. 13

Leading & Managing the Sales Force Sales management is a process that requires constant monitoring and relative metrics. Keeping the score. Quotas for each sales person must be developed and used for the month and for the year. Setting proper quotas must use S.M.A.R.T.S. SPECIFIC MEASURABLE ATTAINABLE RELEVANT TIMEBOUND STRETCHING 14

Any time you start implementing changes, its generally a good idea to follow this procedure 15 Procedure for Change?

The Process for New Procedures MeasureManageMake Assessments Make Corrections Start again! We are what we repeatedly do; excellence is not an act but a habit. - Aristotle any ^ When to stop? Never never never never give up. - Winston Churchill 16

The Sales Management Process The number of calls you make will determine the number of leads you develop. This, in turn, will tell you the number of bids you will produce. Your individual closure rate will display the average number of new sales you will generate over a given period of time. The more calls you make, the better material you present, the better presentation you make to the proper decision-makers, the better your closure techniques are, etc. all will lead to increased sales. The Numbers Game (General) 17

The Sales Process The Numbers Game (Specifics) # of calls you make # of leads you uncover # of bids you deliver# of bids you close (sales) Tele-Marketing (with the aid of a script) CRM System (allows the inputting and storage of information about targets) Leads Daily Reports Regular Sales Meetings Bids Presentations Rehearsals Marketing materials Perfect price value differentiator Sales Types of closes (value, logic, etc.) The perfect customer Social Media Trade Associations Testimonials Follow-up 18

The Sales Process The Numbers Game (Conclusions) 19 Allows you to measure the effectiveness of and create job descriptions for - Salespeople/Sales Managers Telemarketers Entire sales department Allows prediction and cost benefit analysis of investments Example - If Every 100 calls yields 10 leads Every 10 leads yields 4 bids Every 4 bids gives 2 sales You can predict that an investment doubling your initial calls will result in 4 sales, etc This is a 50,000 foot view the details could fill a seminar.

The Sales Process Sales Tactics Weekly Tasks Require and analyze a daily call report from each salesperson to see their tally of customers contacted and how (by phone call, e- mail etc.) Sales metrics that should be reviewed: The number of calls made per day, The number of calls it takes to generate a lead, The number of leads it takes to generate a bid. Daily Tasks Require a weekly calendar from each sales associate (by the close of business on Friday) to reflect a sales plan of visits for the upcoming week. Review and test: The weekly calendar for customers and proper potential customers etc. Measuring results, not activities. Riding with the sales person regularly. Verifying, via phone calls or personal visits, prospects on the contact list. Manage a weekly sales meeting where you measure sales achieved versus budgets for each individual team member and the organization. Review and test the pipeline for what is coming up. Hold a short touchbase meeting during the dead sales times such as Monday mornings and Friday afternoons. 20

The Sales Process Sales Tactics Bi-Weekly Tasks Monthly Tasks Quarterly TasksEnd-of-Year Tasks Hold a one-off sales meeting every two weeks or so with each individual salesperson just to get a good feeling for their attitude, enthusiasm etc. Keep in the loop (inform operations, HR, accounting, purchasing, warehouse). Hold a performance review type of meeting to ensure that everyone is on track, much like reviewing game films for performance improvement. Remember to review results amount of sales to budget. Meet with entire sales force to analyze progress and the actual to budget gaps. Ensure individual job descriptions for sales team are tied to the company financial goals. Perform regular Performance Improvement Programs (PIPs) when necessary. The closure rate for the individual salesperson. Review for adherence to weekly calendar. PIPs Hold the review for the team as a whole and as individual players. Consider repositioning the players and/or recruiting new players and be wary of the available draft choices, both internally and externally. Bid autopsy both successful and unsuccessful. Review marketing material. 21

You will either step forward into growth or you will step back. - Abraham Maslow 22

23 Introduction Some Fundamental Truths Adizes Life Cycle Organizations, like people, have certain lifecycles. All businesses have issues that are common to each other. Knowing where your organization is at on the corporate lifecycle can be critical to its success. With the aid of the Adizes concept, you can determine where your business is in its life cycle.

Adizes Life Cycle Stages 24

As your business grows, your greatest strengths can become your greatest weaknesses. If you know whats ahead of you, you can reach your goal of achieving the next level faster. Your role as a leader is to accelerate your companys ability to resolve problems. 25 Why Fundamental Truths Continued Adizes Life Cycle

ABS - Living the Adizes Philosophy Sale Millions 26

ABS Growth History Timeline o 1955 XGI o 1957 Implemented customer and employee appreciation o 1974 Barnett Gershen became President o 1975 XGI changes name to Associated Building Services (ABS) o 1976 Implemented strategic planning o 1980 Established BOD o 1984 Professionalized hiring process o 1985 Implemented Birkman testing o 1986 Implemented customer satisfaction procedures (quarterly) 27

ABS Growth History Timeline (Contd) o 1988 Targeted special markets for growth o 1990 Implemented relational counseling for team building o 1991 Established risk management program o 1995 Established CT management and stock option program o 1998 Closed first of several major acquisitions o 2000 Implemented incentive bonus plan o 2001 Closed last acquisition o 2002 Invested in organic growth sales team and sales support o 2004 Sold to GCA o 2012 GCA sold to Blackstone group 28

29 How? Adizes Life Cycle Most important Learn to accept change and implement an increased pace. Invent and implement new: Procedures Policies People Tactics

30 The Fundamental Adizes Truths Organizations, like people, have certain lifecycles. All business have issues that are common to each other. If you know whats ahead of you, you can reach your goal of achieving the next level faster. Knowing that this next level journey requires change and an increased pace. Your role as a leader is to accelerate your companys ability to resolve problems. For review -

Leading & Managing the Sales Force Follow up! (You can make up for a lot of mistakes with long-term consistent follow-up). Follow up follow up follow up! If you do nothing else but follow up, you can still be successful! Plan your work, and work your plan! Execute! Remember, a decent plan today will almost always beat a perfect plan tomorrow. Take the best part of the process outlined in this presentation and make it your own. Remember the fundamentals devise a game plan and then execute it! It is up to you to make it happen as the player/coach. If it is to be, it is up to me. - Martin Luther King Conclusion 31

Pogo - Walt Kelly

Wrap-up and Reminders In life, as in football, you won't go far unless you know where the goalposts are. - Arnold H. Glasgow 33 Q&A to follow shortly. Easel What would make this a successful presentation? Dont forget to leave your business card for my free business analysis giveaway. Remember, rate me a 5 on the evaluation form!

To see a copy of this presentation, go to: www.gershenconsulting.com/bscai/sfm.pptx Q&A 34 Barnett Gershen is owner/CEO quarterback of Gershen Consulting, LLC. He is available for questions at (713) 839-1990.

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“Build up your weaknesses until they become your strong points.” - Knute Rockne