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Kelsey Brown, Amanda Buehler, Emily Fishbein, Mary Clare Gibson, & Caroline Hennessey
� Arck Systems acquired Lux Software � Changed discount approval system � Reduced Lux’s accelerators � New compensation plan resulted in over
50% of sales force leaving Lux
Overview!
IS THE COMPENSATION PLAN THE PROBLEM?
� We did not find compensation to be the issue
� Continuing to implement Bryan Mynor’s compensation plan
Mynor’s new compensation plan that raised Lux’s base commission from 4% to 11% and included a single .5x accelerator
Our Approach
� New Company � Recruitment & Evaluation � Reorganization & Integration � Training
Arck&Lux !Computer Systems � Mission Statement “Arck&Lux Computer Systems strives for innovation and efficiency by leveraging new computer technology to add value to our customers” � What is our business? Computer
technology � Key focus: Innovation and Efficiency
Goals 1. Increase enterprise information technology
market share 2. Work cohesively as a hardware and software
company 3. Establish credibility as a full-service provider 4. Make transition for current clients as smooth as
possible 5. Satisfy customer needs faster 6. Maintain existing customer base while acquiring
new clientele 7. Explore and adopt cutting-edge technologies 8. Strive for constant improvement
Sales Objectives
1. Achieve annual sales of $60 billion 2. Acquire ten new customers a month per
salesperson 3. Respond to customer questions and
concerns within half a business day 4. Fully transition to integrated, team-
selling structure within a month of implementation
Strategy
� Differentiation strategy as a full-service provider of both hardware and software
� SCA: Owning a leading middleware provider ensures that applications run efficiently and allows better integration of hardware to software applications
New Company Culture Company Culture Objective: Foster an atmosphere of innovation and teamwork
Core Values � Integrity � Respect � Collaboration � Learning
Our Sales Force:!Recruitment & Selection
� HR and district managers overseeing hiring process
� Hiring account managers, hardware specialists, and software specialists to fill vacancies
RECRUITMENT
Hardware Specialists � Engage in technical
selling � Increase business by
providing technical computer systems information and assistance
� Persuade CIO or CTO of Arck’s superior features
Software Specialists � Engage in relationship
selling � Build rapport and
listen to customer needs
� Assuage concerns of finance executives over product
Job Analysis: !What are we doing currently?
Competencies We Look For
Competencies
Achievement Orientation
Persuasiveness
Analytical Ability
Interpersonal Skills
Communication Skills
Decision Making Skills
Leadership
Team Building
Time Management
Flexibility
Job Description
Account Manager
Software Specialist
Hardware Specialist
Evaluating !Current Employees � Check-in with current employees � Review the company’s new direction � Discuss six-month evaluation check-in � Factors to consider in retention:
performance, efficiency, background, personality, growth potential, performance
Six-Month Evaluation
Sales Results
Job Knowledge
Management of Territory
Customer and
Company Relations
Personal Characteristics
Meeting sales quotas and obtaining new accounts
Company & product knowledge
Effectively managing all of their accounts while paying attention to detail
Maintain positive relationships with all customers
Display competencies the company stands for
How will we recruit?
Sources � Referrals from other
firms � Internet
Selection Procedures � Application blanks � Personal interviews � Personality tests � Reference checks
HIRING PROCESS
1. Submit application blank of resume and cover letter online
2. Round one interview 3. Round two interview and personality
test 4. Reference check 5. Selection
Round One Interview
� Conducted by HR � Telephone/Skype interview � Unstructured interview
• Tell me about yourself.
• What do you know about our company? Our industry?
• Why are you interested in this position?
• What motivates you?
• What unique qualities will you bring to our team?
Sample interview questions
Round Two Interview
� Conducted by District Manager � In-person interview � Structured interview with selling exercise � Focus on behavioral questions � Followed by administering Walden
Testing
Round Two Interview Questions
1 • Tell me about a time you worked effectively under pressure.
2 • What did you do in your last job to be effective with
organization and planning? Be specific.
3 • Tell me about a time when you had to implement change in
your area of responsibility.
4 • What did you do in your last job to contribute to a team
environment? Be specific.
5 • Tell me about a situation in which you had to use your
negotiating abilities.
Applicant Interview Form
Selection criteria � Presentation/
Impression � Work Experience � Sales Ability � Required Skills � Teamwork � Enthusiasm
Restructuring & Integrating the Sales Force
Geographic Organization
CEO
EVP of Sales
U.S. Head of Sales
Region 1 Manager
District 1 Manager
District 2 Manager
District 3 Manager
District 4 Manager
District 5 Manager
Acount Manager
Account Manager
Account Manager
Region 2 Manager
Region 3 Manager
Region 4 Manager
Region 5 Manager
Region 6 Manager
� 6 regions � 30 districts � 6,000 total
salespeople
Sales Regions Mountain
Southwest
Pacific
Midwest
Northeast
South
Distribution of Sales Force � 6,000 employees throughout the U.S. � Focus on Midwest, Northeast, and
Pacific � Distribute employees according to
largest populations � Midwest – 8 districts � Northeast – 6 districts � Pacific – 4 districts
Distribution of Sales Force
Team Selling
� Matrix organization that brings collective expertise to clients
� Account managers responsible for entire team
� Selling centers located on the premises of major customers
Team Selling Structure
Account Manager
Hardware Specialist
Software Specialist
Marketing Specialist
Customer Service
Specialist Finance
Specialist
Sales Force Training
Analyzing Needs
� Training efforts focused on account managers and sales representatives
� Both current and new employees will receive training
Training Objectives
� To ensure that all employees are on the same page about the direction of the new company
� To integrate to team selling approach � To become knowledgeable of both
hardware and software
Topics � Product Knowledge – hardware and
software � Company Orientation – new team selling
structure � Time and Territory Management –
reorganization of sales force
New Sales Representatives
• Five day training at company headquarters • Creates sense of belonging • Peer-to-peer communication
75% classroom training
• Located in region • Classroom training put into action
25% OTJ training
Mentor program
Current Sales Representatives � Continue current processes � One day retreat
� Combined with new sales reps � Team building activities
� Company orientation focus � Understand new policies and procedures
� Mentor program
Account Managers
� New position � Five day training at HQ � 100% classroom training – role play
component and case studies � Mentor Program
Evaluation & Review
� Do employees after training understand both hardware and software?
� Do employees feel comfortable and confident working in their sales teams?
� Do employees understand Arck&Lux’s new direction?
Further Training
� Virtual � Once a month � Approximately one
hour
� Biannual Training � Review company
procedures � Promote unity
amongst employees
Conclusion � New Company � Recruitment & Evaluation � Reorganization & Integration � Training Result: a productive, cohesive, and satisfied sales force