1. FY10 Inside Sales Call GuideMicrosoft Corporate Accounts Inside Sales

2. IntroductionWhats in this Guide?The Call Guide is a job aid that will familiarize you quickly with: Preparation guidanceon-boarding for new hires and reference material for experienced reps, including CPE, Corporate Accounts segmentation, territory management, licensing, and product overviews. Call guidanceat-a-glance role-based and campaign guidance to assist you while on the phone with a customer. Qualify and Close guidancestep-by-step instructions for handing a marketing qualified prospect (MQP) or opportunity over to a partner and how to document the call in Siebel.Whats new in FY10The FY10 Call Guide has been reorganized into easy-to-navigate tabs in the Prepare section to help you focus on key Tele-Managementstrategies, including: Corporate Accounts Customer Engagement Business Management Relationship Management Opportunity ManagementLook for the following icons in the upper corners of relevant pages and sections to help you quickly assess whether the content is intended for your role: ITMIAM TPAMDISSsInside Territory ManagersInside Account Managers Tele Partner Account ManagersDynamics Inside Sales Specialists (ITMs)(IAMs)(TPAMs)(DISSs)2 FY10 Inside Sales Customer Campaign Call Guide 3. IntroductionTable of Contents PREPAREWhats in this Guide?...................................................................................................2Whats new in FY10......................................................................................................2PrepareCallTele-Management Strategy....................................................................................6Call Planning..................................................................................................................86.Tele-Management Overview......................................................................................... 6OPPvQ Call Framework.................................................................................................86Scorecard Metrics .............................................................................................................. 8 Call Planning Tips..............................................................................................................89 .Customer Engagement.............................................................................................9 . Customer Role Guidance .............................................................................................93Customer Segmentation................................................................................................. 9.Chief Officer Role Overview.........................................................................................94Commercial Customer Industries..............................................................................10 Sales Role Overview.........................................................................................................96.Public Sector........................................................................................................................12.Finance Role Overview...................................................................................................98.Inside Sales and Specialist Roles and Responsibilities......................................14 . Human Resources Director Role Overview.......................................................100 .Microsoft Partners.............................................................................................................16.IT Manager Role Overview........................................................................................102Corporate Account Engagement..............................................................................18 Operations Executive Role Overview....................................................................104Microsoft Dynamics Solutions ....................................................................................20MMRP Call Execution...........................................................................................106.Corporate Accounts Customer Experience..........................................................21 Welcome Call...................................................................................................................106.Business Management............................................................................................23Deploy Call........................................................................................................................107 .Territory Planning...............................................................................................................23Use Call................................................................................................................................108Relationship Management...................................................................................28 Renew Call.........................................................................................................................109.Account Discovery............................................................................................................29 . CPE for MMRP.................................................................................................................110Account Planning..............................................................................................................33 . MMRP Guidance for IAMs .......................................................................................110Microsoft Dynamics Relationship Management Process Alignment ......37MMRP Guidance for ITMs ........................................................................................111Red Carpet Account Transitions ................................................................................40Campaign Overviews ..........................................................................................112Relationship Programs....................................................................................................42Campaigns At-a-Glance.............................................................................................113. CallDeployment.........................................................................................................................46 . BDM Campaigns......................................................................................................114Opportunity Management..................................................................................47.Finance Customer Campaign Overview ...........................................................114Sales Motions......................................................................................................................47.Sales Customer Campaign Overview .................................................................118Microsoft Solution Selling Process.............................................................................48Efficient and Sustainable Government CampaignPublic ServiceDeal orchestration.............................................................................................................51and Administration.................................................................................................122Licensing Programs...................................................................................................64Campaign Opportunity...............................................................................................122Understanding Volume Licensing.............................................................................64Microsoft Value Proposition......................................................................................122.Platform for Corporate Accounts Customers......................................................64How does Microsoft innovation help enable an efficient and sustainableThe Licensing Conversation.........................................................................................65.government?....................................................................................................................122.Toolkit......................................................................................................................................65 . Target Audience and Key Concerns......................................................................123Volume Licensing Programs Overview..................................................................66 . Campaign Structure......................................................................................................123Annuity Dashboard Overview.....................................................................................69Campaign Themes and Modules At-a-Glance...............................................124Products............................................................................................................................70FY10 Product Launches.................................................................................................70 .Product Descriptions........................................................................................................72 Qualify and CloseCompetitors...................................................................................................................76 . Customer Qualification........................................................................................132IBM...........................................................................................................................................76.Qualify the Opportunity..............................................................................................132Cisco........................................................................................................................................77.Send a Sponsor Letter.................................................................................................132 .OpenOffice.Org.................................................................................................................78 Partner Engagement.............................................................................................133 .Google....................................................................................................................................79 Assign to a Partner.........................................................................................................134Oracle......................................................................................................................................79 Notify the Partner of the Qualified Prospect.....................................................134Competitive Matrix by Customer Campaign......................................................80. Best Practices....................................................................................................................135 . Qualify and Close Call Documentation...............................................................................................136 Appendix Acronym Definitions..............................................................................................137 Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 3 4. PREPAREIn this section, you will learn about the Corporate Accounts Tele-Management Strategy Customer Engagement FrameworksPREPARE Business Management Relationship Management Opportunity Management Licensing Programs Products CompetitorsCALLIn this section, you will learn how to Engage customers in a discussion of their business priorities and needs so you can recommend a solution using the step-by-step OPPvQ Call Framework for each Customer Campaign. Open calls with key customer roles, such as Sales, Finance and Operations Executives, and IT Professionals.Call Conduct effective calls with customers throughout the customers license lifecycles, in alignment with the Midmarket Relationship Programincluding Account Discovery interactions to understand the deployment status, competitive landscape and Infrastructure Optimization maturity levels.QUALIFY AND CLOSEIn this section, you will Qualify and Close Review resources and tools to help you facilitate the hand-off of a qualified prospect to the appropriate partner resource. Find a: Checklist to determine whether or not a customer is qualified. Decision tree to help you assign a partner. Sponsor Letter template to help you follow up with the customer. Partner Opportunity Notification Form to help make the hand-off process run smoothly. Identify which partner is the best choice for your customer. Learn how to document calls in Siebel to provide the partner with all of the details required to pick up a lead. 5. PrepareYou only have 11 seconds to capture a customers interest. Successful sales representatives prepare for a call by learning all they canabout the customer and creating a goal or outcome for the conversation before calling the customer. Use this section to understandthese fundamental points before engaging your customer:PREPAREInside Sales Strategy Scorecard AlignmentUnderstand how your activities support the overarching goals of the Tele-Management, SMS&P, and Microsoft organizations as a whole.Customer Engagement Customer FrameworksLearn how Microsoft segments its Corporate Accounts customers to optimize your engagement opportunities. Customer Accounts SegmentationLearn where your customers come from and how to approach them based on their history with Microsoft. Customer TargetingUnderstand the size of your customers organizations, their industries, and the roles you are calling. Tele-Management and Specialist RolesUnderstand your role and which Specialists to engage for assistance in a sale.Business Management Territory ManagementStrategize how to manage your territory and orchestrate your calls.Relationship Management Red Carpet Account TransitionsDevelop, improve, and maintain excellent relationships with customers. Relationship ProgramsLearn how to engage customers according to their license lifecycle and build an ongoing relationship with them to optimize cross-sell and up-sell opportunities. Account DiscoveryDevelop a deeper understanding of each Corporate Account, including which products the customer has or has not yet deployed.Opportunity ManagementCall Microsoft Solution Selling Process (MSSP)Help ensure customer-focus and orchestration of sales opportunities throughout the pipeline.Licensing Programs Volume LicensingReference the different types of licensing programs and identify which is the best fit for your customer. Annuity DashboardTrack and manage the annuity details of customer license agreements with this Web-based tool.Products Product LaunchesLearn about the new products launching in FY10. Product DescriptionsAccess a quick-reference chart with short descriptions of each Customer Campaign product.Competitors Find links to internal competitive resources. Competitive MatrixView competitors by Customer Campaign products and learn how to represent the Microsoft value proposition against each competitor.Qualify and Close 6. PrepareTele-Management StrategyPREPARE Tele-Management OverviewWhat is Tele-Management?Tele-Management is a unique professional sales force that: Drives revenue and CPE through Customer and Partner relationships (Relationship Management). Converts qualified leads from various sources into sales opportunities (Demand Management). Manages, progresses, and closes sales opportunities (Opportunity Management).Tele-Management is organized into both Inside Sales (customer-facing) and Inside Partner Management (partner-facing). The Inside Sales teamconsists of Inside Account Manager, Inside Territory Managers, and Inside Specialists. The Inside Partner Management team includes Tele-PartnerAccount Managers (TPAMs). Their key functions are related to relationship management and opportunity management. The phrase Tele-Management includes both Inside Sales and Inside Partner Management. CUSTOMER-FACING PARTNER-FACING Inside Sales Inside Partner ManagementTele Inside Account ManagementInside Partner Account Management Some use Tele to refer to just Inside Inside Territory ManagementInside Partner Account Coverage Sales.But Tele includes both:Call Inside Sales Key Functions: Key Functions: Inside Partner Management Relationship Management Relationship Management Demand Management Opportunity Management Opportunity ManagementKey Roles: Key Roles: Tele-Partner Account Manager Inside Account Manager (TPAM) Inside Territory Manager Inside Specialists (Dynamics, Licensing, SAM, etc.)Figure 1. Operational Definition of TeleQualify and Close6 FY10 Inside Sales Customer Campaign Call Guide 7. Prepare continuedWhat is the Tele-Management Strategy?Did you know ?The mission of the Tele-Management engine is to directly manage Corporate Accounts customers, Inside Sales in FY09 exceeded thePREPAREdirectly manage select partners in order to grow revenue, and reach our Breadth customers through Total Revenue target for FY09,a mixture of partner-led activities or (in some geographies) through direct engagementall whileending the year at US$2.855Bincreasing share and enhancing satisfaction with Microsoft. (+3% over target). Overall, total revenue generatedIn FY10, the worldwide Inside Sales Priorities are: by Inside Sales grew 30% YoY. Build Customer Relationships with: Inside Sales operates in Commercial Red Carpet Account Transitionsand Public Sector segments. Midmarket Relationship Program (MMRP) Inside Sales: ~1,900 people in Marketing Campaign Execution73 locations around the world Account Discovery and Orchestration by conducting: 85% are vendors, 15% are FTEs. Account Discovery and Profiling Inside Partner Management: Territory Planning~380 people around the world Account CoordinationTele, LOM, STU, Partners 97% are vendors, 3% are FTEs. Compete to Win by: Taking Share with Windows 7, Office, Exchange, and SQL Server by: Achieving Deployment, Renewal, and SAM targets. Leveraging Territory and Account Planning to secure Launch Wave wins. Fully exercising the BPOS sales muscle of our Partners and MS Sellers. Winning the Platform and Workload discussion to deploy SQL Server 2008. Deploying Windows and Office. Growing Annuity through Attach: Annuity Management: New, True, and Renew. Performing with consistently high standards in alignment with Sales Excellence: Engage partners and drive competitive wins.Call Review Competitive deals as part of ROB and escalate to CompHot for help.Is Tele-Management the same as Tele-Marketing or Tele-Support?In SMS&P, the Tele Engine is not responsible for Tele-Marketing or Tele-Support functions. While there is sometimes a place for Tele-Marketing inMicrosoft marketing processes, those activities are typically not managed by the Tele-Management organization. Also, there is an entirely differentcustomer service team that manages customer support issues. Inside Sales, as a Sales Role, is engaged throughout the Microsoft Solution SellingProcess (MSSP) to provide: Inside Account Management Inside Territory Management Inside Partner Account Management and Coverage Tele-Marketing includes:Tele-Support includes: Lead Generation Tech Support Data Cleansing Customer Support Event RegistrationOccurs after or during MSSP. Prospecting Occurs prior to MSSP and feeds Qualify and Close leads to the Tele Organization. PROSPECTQUALIFY DEVELOP SOLUTION PROOFCLOSEDEPLOY0%10%20% 40% 60%80%100%Figure 2. Microsoft Solution Selling Process (MSSP); Tele is not Tele-Marketing or Tele-SupportMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 7 8. Prepare continued Scorecard MetricsThe SMS&P business goals are measured by a set of four scorecards (SMS&P, AP, Partner, and Dynamics) that are aligned to the all-up SubsidiaryPREPAREScorecard. Each scorecard is comprised of a set of metrics. Each subsidiary (with the exception of some small subs) has a defined target for eachmetric. Scorecard performance is reviewed as part of the ROB (Rhythm of the Business) process. Metrics have direct alignment to PRISM and WWSMM strategies. WW role commitments reflect relevant scorecard metrics. This means that all FTEs have accountabilities in their Commitment-Based Incentive that tie directly to the Scorecard.The items on this page describe the SMS&P Scorecard for FY10 and how the Inside Sales organization contributes to each metric.Green rows represent: Revenue Generated by Tele; Tele Revenue per Head; Annuity Revenue; Tele ROIYellow rows represent: Red Carpet Execution; Account Discovery; People ChurnRed rows represent: Non-socket Tele Revenue Win Customers 1. Windows Server Committed License GrowthSMS&P 2. Windows Server Share of Internet Web ServersSMS&P 3. Office Unmanaged Licenses Through Distribution (Excluding Retail) 4. BPOS Customer AddsSMS&P 5. Open Office Units Win BackSMS&P Corporate Accounts Drive Satisfaction 6. SMS&P Customer NSAT Index 7. Red Carpet Transition Completion %Call 8. PSRI Partner Readiness for Key Launch Products 9. Desktop DeploymentWindows Vista/7SMS&P 10. Desktop DeploymentOffice 2007/2010SMS&P Grow the Business 11. Billed Revenue VTBSMS&P 12. System Center Server Management Billed Revenue VTBSMS&P 13. SQL Server Billed Revenue VTBSMS&P 14. Exchange Fully Allocated Revenue GrowthSMS&P 15. SharePoint Server UnitsSMS&P 16. Dynamics Billed Revenue VTB 17. SMS&P SMB Open & Hosting Revenue Growth (Excluding Recurring) 18. ECAL Billed Revenue GrowthSMS&P 19. Platform EA and Open Value GrowthSMS&P 20. Identity & Security Fully Allocated Billed Revenue VTTSMS&PQualify and Close People 21. WHISMS&PAsk your manager to provide you with details of the Scorecard Metrics specific to your subsidiary, so you can see how your Inside Sales efforts mapto the big picture of building customer relationships and driving revenue for Microsoft.8 FY10 Inside Sales Customer Campaign Call Guide 9. Prepare continuedCustomer EngagementPREPAREUnderstanding your customer base is fundamental to your success in Inside Sales. Developing a deep understanding of each customer is a key tobuilding relationships and successfully executing sales campaigns. This section will introduce you to the Corporate Accounts customer segments,the industries best served by Microsoft solutions, and the engagement strategies developed to most effectively reach your target customers. Customer SegmentationSegmentation of customer accounts is an important part of the annual subsidiary growth planning cycle to facilitate revenue growth and CPEimprovement by helping to ensure that each Microsoft customer is served through an optimal engagement model.Global 1:1 Field Managed EPGMajor1:2 Field Managed Enterprise Accounts Corporate Field Account 1:10 Field Managed ManagedCall 1:50 Tele Account Managed (4,000 Accounts)Corporate Inside 5005,000 PCs Multi-national or multi-site Progressive, visionary Account Managed 5008,000+ employees organizations Unique processes Up to US$1 billion in revenues Hub and Spoke organizations Complex purchasing process(CIAM) SMS&P High-growth companieswith multiple sub/child accounts 1:125 Tele Program Managed (96,000 Accounts) Corporate Program 250499 PCs Have strategic IT function aimed at IT departments are under pressure to 1020 IT Professionals giving the company a competitivedemonstrate ROI and business benefitsManaged (CPM) 15+ serversadvantage Strict and evolved company processesin place Channel and Program Managed (More than 4,600 EA customers plus another 200,000 with Annuity Agreements) SMBBreadth 25,000 Accounts with > 250 PCs 45 IT professionals IT has a strategic role in the 213,000 Accounts with 50249 PCs 78 serversbusiness and ranges from small IT teams to larger IT departmentsFigure 3. Customer SegmentationQualify and Close Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 9 10. Prepare continuedThere are approximately 100,000 Corporate Accounts worldwide. Inside Sales focuses primarily on the Corporate Accounts customer segment,because we have found this to be an effective and productive way to engage with our target customersboth Commercial and Public Sector.PREPAREThe red box in the diagram above illustrates how Corporate Accounts customers fit into the SMS&P Organization. CIAM accounts are managed byIAMs at a 1:50 ratio, while CPM accounts are managed by ITMs with a 1:125 ratio. Note that CIAM is rolling out to only nine subsidiaries in FY10,with worldwide roll-out planned for the coming years. In the meantime, subsidiaries should start by adopting the changes in CPM that will helpthem set up the disciplines and processes to adopt the CIAM model. (See Customer Engagement on page 9 for more details.)The orange box in the diagram above highlights the Breadth segment. Breadth accounts are primarily reached through our partner channel. Thisyear we will be optimizing our Inside Sales investments to drive scale and revenue in Breadth. In some markets, this may mean driving programsto reach Breadth customers exclusively through partners. In other markets, there may be a mixture of direct engagement alongside of partnerengagement. Commercial Customer IndustriesResearch shows that decision makers in midsize organizations identify more with their industry than with the size of their organization. Therefore,when calling a customer, it is imperative that you understand the industry drivers and pains a decision maker might be facing. Use the table belowto help you identify key talking points. IndustryKey trends and driversMicrosoft focus Financial ServicesThe financial services industry is characterized by a strong reliance Within the financial services industry, Microsoft focuses on on typically complex IT systems that include multiple products three vertical segments: banking, capital markets/securities, and channels, and they often run on multiple operating systemand insurance. environments. The industry is also challenged by an increasing For more information on Microsoft solutions in the financial climate of change characterized by mega-mergers, decreasingservices industry, please visit: margins, a more challenging regulatory environment, and fierce http://infoweb/wwfinancialservices competition. These institutions have a strong need to integrate http://www.microsoft.com/industry/financialservicesCall IT infrastructure, introduce cross-channel consistency, and lower their cost base. Manufacturing Key trends in the manufacturing industry include shortening Within the manufacturing industry, Microsoft focuses on product lifecycles, an increasing focus on operational perfor- the following vertical segments: automotive and industrial, mance and lean manufacturing, demand-driven supply chainsconsumer goods, high technology and electronics, oil and and outsourcing, increasing customer demands, and improvinggas, pharmaceuticals, and utilities. In addition to the manu- performance management. These trends are driving demand forfacturing Industry Priority Solution Scenarios (IPSSs) focused faster innovation, more efficient processes, better collaboration, on these vertical segments, Microsoft provides manufacturing improved customer responsiveness, and the consolidation of solutions directly through our Microsoft Dynamics software disparate systems. offerings. For detailed information on Microsoft solutions for themanufacturing industry, as well as the Microsoft Dynamicsproduct line for each market segment, please visit: http://infoweb/wwmanufacturing http://www.microsoft.com/industry/manufacturing RetailRetailers are embracing new IT solutions to help increase business Within the retail industry, Microsoft focuses on two vertical and profitability. For example, they are increasingly moving segments: general retail and hospitality. beyond legacy applications to help increase efficiency and reduce For detailed information on Microsoft solutions for the retail costs; experimenting with new applications, such as wireless and and hospitality industries, please visit: radio frequency identification (RFID); and investing in point-of-sale http://infoweb/wwretail platforms, kiosks, store manager portals, wireless devices, and http://www.microsoft.com/industry/retail networks at retail locations. http://www.microsoft.com/industry/hospitalityQualify and Close10 FY10 Inside Sales Customer Campaign Call Guide 11. Prepare continuedIndustryKey trends and drivers Microsoft focusProfessional Services Key challenges facing the professional services industry today Within the professional services industry, Microsoft focusesPREPAREinclude an explosive growth in content, rising value expectations,on four vertical segments: accounting, building services,risk management and compliance requirements, and changing consulting, and legal.workforce demographics. Together with its partners, Microsoft For detailed information on Microsoft solutions for the profes-provides the software and services to help professional servicessional services industry, please visit:firms manage business performance; build and sustain customer http://profsvcconnections and client loyalty; motivate, develop, and retain top http://www.microsoft.com/professionalservicestalent; support their mobile workforces; improve compliance; anddeliver distinctive client service experiences. Microsoft focuseson providing the technology to enable IT professionals to movebeyond day-to-day system management to contribute to theircompanys growth and to enable business decision makers togain new levels of strategic advantage by helping them managechange and risk, reduce costs, grow revenue, and excel in theirindustry.TelecommunicationsThe worldwide telecommunications industry represents significant Within the telecommunications industry, Microsoft focuses onopportunities for both services and software. Microsoft delivers afour vertical segments: cable operators, network equipmentbroad range of voice, video, data, and mobile solutions designedproviders (NEPs), wireless service providers, and wirelineto help service providers create revenue-generating offerings for service providers.businesses and consumers. For detailed information on Microsoft solutions for thetelecommunications industry, please visit: http://www.microsoft.com/serviceprovidersHosting Microsoft delivers a full range of solutions that hosting service Within the hosting industry, Microsoft focuses on two verticalproviders can deploy in their data centers and offer as services. segments: hosting service providers and Software-as-a-Microsoft anticipates significant growth through Services ProviderService (SaaS) providers.License Agreement (SPLA) contracts; strong adoption of hosting For detailed information on Microsoft solutions for theCallsolutions, particularly hosted messaging and collaboration; and hosting industry, please visit:strong growth of application hosting through engagements with http://www.microsoft.com/serviceproviders/hostersindependent software vendors (ISVs) and other partners.Media and The Microsoft communications sector group is committed to Within the media and entertainment industry, MicrosoftEntertainment helping media and entertainment companies transform their focuses on five vertical segments: advertising, broadcasting,businesses. The revolution in digital technologies has changedfilm, music, and publishing.the way that these companies produce, manage, and distribute For detailed information on Microsoft solutions for the mediacontent, opening opportunities for profit and growth whileand entertainment industry, please visit:presenting significant business challenges. By using technology to http://sharepoint/sites/media/default.aspxhelp increase operational efficiency and reduce costs, media and http://www.microsoft.com/mediaentertainment organizations take advantage of new, emergingopportunities.Qualify and CloseMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 11 12. Prepare continued Public SectorPublic Sector accounts require a different taxonomy than commercial accounts. For example, most accounts are referred to as organizationsPREPARErather than businesses, and their customers are citizens or students. The leadership of a Public Sector account is often a public servant orboard member, rather than an executive. Public Sector IT budgets have increased over the past 10 years in recognition of the role technologyplays in improving citizens lives.External technology investment drivers (such as the increased availability of lower-cost technology, open source, security threats, and regulatorycompliance) and internal drivers (such as the need to improve operational efficiency and student and citizen services) are contributing to the ITgrowth opportunities in the Public Sector.Government Drivers: Accelerate the establishment of eGovernmentGovernments are looking to technology to improve the user-friendliness of their infrastructure and unify the governmental organizations to create higher budget efficiency by eliminating any overlapping services of the organizations. The concept of smarter working is emerging as a theme between the different tiers of government to help ensure equal access to services, help deliver social services, and help ensure community safety. Reduce spendingGovernments need to decrease the cost of delivering services, and as budgets and incomes compete with other needs, they will need to leverage existing legacy systems to deliver services and make IT more affordable. Improve internal organizational efficiencyGovernments are under increasing pressure to improve operational efficiency, enabling them to streamline business and technology processes and work more effectively as a collective organization rather than a set of separate silos. Often collaboration and information sharing between departments and agencies is hindered by poor access to information as each functional department may have its own IT staff and infrastructure that can impair organizational efficiency. With limited means and resources available, governments need to become more efficient in maintaining and improving their IT infrastructure. Improve the delivery of enhanced public servicesGovernments need to transition from a business-function focus to a citizen focus, providing better access and services to the public. Governments are increasingly under pressure to improve citizen relationships, which are tied to the objective of improving the services they provide. Improve agilityMeet the ever-changing business and policy needs of local and regional governments. Specifically, the flexibility to copeCall with change quicklyand scalabilityto extend the solution to multiple environments.Microsoft Focus: Within the government industry, Microsoft focuses on 13 vertical segments: defense, intelligence, justice, legislation, energy and environment, postal, public administration, public finance, public healthcare, public safety, public works, regulatory, and social and human services. In the midsize business segment, Microsoft focuses on town hall and local municipal agencies, as well as regional service agencies. For detailed information on Microsoft solutions for the government industry, please visit: http://infoweb2007/wwpublicsector/industries/government/Pages/gov.aspx http://www.microsoft.com/industry/governmentEducation Drivers: Increase communication and collaborationEducational organizations must use new technology to improve communication and col- laboration to empower students to learn at their own pace, to keep parents informed and engaged, and to allow teachers to better manage their administrative workload and curriculum. Improve quality of learningThe creative use of technology, communications, and greater collaboration allows teachers to develop curriculums that help develop student skills, maximize their opportunities, allow their school and social world to interact, and more readily prepare them for the changing demands of the 21st Century. Secure information across various systemsSchools need to provide students with access to information yet eliminate the risk of the students gaining access to sensitive information. Schools must be confident that sensitive institutional data on PCs and servers is secure yetQualify and Close readily accessible by the individuals who need it. Reduce IT costsEducational institutions face significant cost pressures from reduced public funds and budget cuts, resulting in limited financial resources for technology investments. Schools must leverage technology to stay competitive, but they are challenged with the need to eliminate unnecessary cost and complexity. Help ensure an institutions operations are always runningInstitutions need to effectively combat security threats and breaches, as well as better protect vital systems and school information with trustworthy solutions that are well-integrated into their infrastructure.12 FY10 Inside Sales Customer Campaign Call Guide 13. Prepare continuedMicrosoft Focus: Within the education industry, Microsoft focuses on three vertical segments: continuing education, higher education, and primary and PREPAREsecondary/K12 (with a variety of sub-segments in each geography around the world). For detailed information on Microsoft solutions for the education industry, visit: http://infoweb2007/wwpublicsector/industries/education/Pages/education.aspx http://www.microsoft.com/industry/educationHealth and Health Provider Drivers: Increase patient safety and satisfactionThe healthcare industry needs to be patient-oriented in order to help ensure the best possiblestate of health, to support treatment and care processes, and, thereby, increase the quality of care. Patients are becoming much bettereducated and are demanding ever higher standards from their healthcare systems. Patients also expect better communication with theirdoctors and are keen to have a closer relationship that enables patients and their doctors to make informed treatment decisions together. Improve access to patient informationThere needs to be easier access to information. Address rising healthcare costsHealthcare costs are increasing at annual double-digit rates. Both government and private-sectororganizations face the problem of dealing with the continual increase in the cost of providing medical care. The cost of hospital care andmedications, in particular, are consuming ever-increasing resources. Disparate, non-synchronized data sources can also make it difficult toanalyze expenditure and, hence, identify and reduce unnecessary costs in a consistent and meaningful way. Comply with stricter regulatory requirements and government mandatesIt needs to be easier for organizations to comply withgovernment regulations by providing capabilities that help secure access and prevent the accidental disclosure of a patients private informa-tion, while at the same time, making it easier for healthcare organizations to achieve and maintain compliance. Eliminate silos between different levels of healthcareThere is a critical need for better information sharing between differenthealthcare organizations, such as outpatient and inpatient care, or different social systems, such as healthcare and rehabilitation, vs. long-termcare, and so forth. Increase efficiency and effectiveness in healthcareHealthcare organizations face a continual struggle for efficiency in patient care.This is because while productivity is the most important influence on the income of the doctor, general practice doctors also are an important Calltransformation point for the flow of medical informationpassing on and receiving high volumes of information between the patients, theirown practice, and other service providers in the treatment process.Microsoft Focus: Within the healthcare industry, Microsoft focuses on two vertical segments: healthcare providers and health plans. (Please note that Microsoft includes the life sciences vertical segment within the manufacturing industry.) For detailed information on Microsoft solutions for the healthcare industry, please visit: http://healthcare http://www.microsoft.com/industry/healthcareTechnology Challenges in the Public Sector Include: The need to modernize/establish infrastructure. An environment that is extremely hard to control due to mixed legacy software and infrastructure. The lack of consistent interfaces, commercially available software, and a consistent component model. Providing online services for citizens in a safe and reliable way. The lack of IT supportoften there is only one IT worker for multiple, geographically dispersed locations. Qualify and CloseMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 13 14. Prepare continued Inside Sales and Specialist Roles and ResponsibilitiesTo help ensure that each customer is appropriately engaged, Microsoft has developed specific job descriptions and commitments to serve eachPREPAREtype of Corporate Accounts customer. Although both CIAM and CPM customers are considered managed, each has a Microsoft Account Ownerwith roles and responsibilities tailored to the needs of the specific customer type: In CPM, due to the larger number of accounts in a single territory, the ITM account owner role takes an Inside Territory Management approach. In the CIAM segment, ownership of accounts is accomplished through the new discipline of Inside Account Management.Inside Territory Manager: Demonstrates how Microsoft technology can help solve business issues and positively impact the customers business. Delivers high-quality opportunities to the partner ecosystem and monitor to close in order to meet or exceed revenue targets. Success is measured by renewal rates and net new closed opportunities. Drives revenue growth and customer satisfaction by building relationships with key ITDMs in assigned accounts, developing qualified opportunities and managing customer renewal and true-up events. Focuses on revenue responsibility and growth in owned accounts. Focuses on selling solutions that meet customer needs, and the business value proposition that Microsoft offers helping customers meet their challenges and business opportunities. Focuses on developing and maintaining strong customer relationships and improving CPE. Understands how to develop Territory Plans and account contact strategies to engage CPM accounts to drive EA/OV-CW penetra- tion as well as Dynamics and other category products. Understands how to engage Dynamics Inside Sales Specialists, Opportunity Managers (OMs), Licensing Sales Specialists (LSSs), and partners in sales motions.Inside Account Manager:Call Develops and maintains strong inside-based customer relationships that include the building of relationships at the CxO and BDM levels. Develops or co-develops strategic, effective, and actionable account plans that define clear revenue and customer satisfaction growth strategies. Develops and manages a healthy and predictable pipeline that meets or exceeds quota and forecast accuracy expectations. Develops opportunities to close by orchestrating and leveraging appropriate resources to continuously reinforce business value and help ensure that customers deploy the solutions acquired. Applies account intelligence within his/her Territory Plan across multiple accounts to maximize opportunity identification. Understands how to engage Dynamics Inside Sales Specialists, Solution Sales Professionals (SSPs), Licensing Sales Specialists (LSSs), and partners in sales motions.Qualify and Close14 FY10 Inside Sales Customer Campaign Call Guide 15. Prepare continuedSpecialist RolesThere are a number of resources available to help you articulate Microsoft value to a customer. Engage the appropriate Specialist in your subsidiary PREPAREas necessary: Dynamics SpecialistThe Dynamics Inside Sales Specialist, also referred to as a member of the MBS ISS team, is your main contact concerning Dynamics leads. The MBS ISS primarily has consultative calls with the BDM. The MBS ISS follows up on 10% sales leads generated by other IS resources on Midmarket (MM) accounts (e.g., specialist support) and proactively calls Breadth customers based on campaigns defined by the Dynamics Marketing Team, as well as contacting existing Dynamics customers (such as hunting/farming roles). At the other end of the process, the MBS ISS transfers 20% opportunities to the Partner Team Lead and the Solution Sales Professionals (SSPs) team for further development and closure. Breadth Inside Sales SpecialistProactively calls Breadth customers and responds to Marketing Qualified Prospects (MQPs) or executes marketing campaigns to generate opportunities. Public Sector SpecialistThe Public Sector Inside Sales Specialist is a telephone-based resource who works directly with Public Sector Depth customers across Health, Education, and Local/Regional Government industries to help them understand how Microsoft technology can help enable them to run more effectively and provide better services to their citizens. The role may take one of two forms by either working directly with an assigned set of Public Sector customers or by executing marketing campaigns across a larger set of prospects and Public Sector customers. In either case, the roles primary purposes are those of working directly with Public Sector Midmarket customers to develop sales opportunities through the execution of Customer Campaigns and activities. Licensing Sales SpecialistThe Licensing Sales Specialist (LSS) is your main contact in creating, renewing, or consolidating licensing into an Enterprise Agreement (EA). When engaging the LSS, you should have a customer or opportunity that meets a minimum set of criteria regarding desktop and platform deployment (250 Users) along with an agreement in the value of annuity (Software Assurance). The LSS will work with your customer to build an Enterprise Agreement that meets their organizations requirements and build in the manageability, flexibility, and value the customer requires. SAM SpecialistThe Software Asset Management Engagement Manager (SAM EM) is responsible for identifying the best candidates for SAM Engagements. The SAM EM subsequently coordinates the work of a SAM Specialization partner who conducts a license review and SAM Optimization assessment. At the end of the engagement, the SAM EM captures license shortfall revenue and drives customer adoption of Call SAM. You should approach a SAM EM when you have reasons to believe that an EA or Select customer is under-licensed and/or may benefit from improving their software management processes. For more information about the SAM program, consult http://www.microsoft.com/sam. Qualify and Close Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 15 16. Prepare continued Microsoft PartnersPartners are critical to the success of Microsoft as they provide the key linkage between Microsoft and the end customer. For virtually all ofPREPAREMicrosoft products there is an ecosystem of partners who sell products to customers or build value-added solutions on top of the Microsoftproducts and then sell it to customers. Microsoft product groups work in symphony with Segment teams to prepare products for the marketplace.The Segment teams are responsible for landing the product successfully in the field and overseeing the sales effort. Partners however, own theengagement with customers at the sales level (supported by Microsoft). The Microsoft Partner Program (people and programs) acts as the engage-ment mechanism between partners and the segments.Understand the Partner Channel EcosystemMicrosoft has channel partners that offer software and corresponding licensing solutions to customers in various segments. A well-defined distribu-tion model fulfills these customers requirements. You will need to understand which partner type is best suited for your customer opportunity.Below is a list of the different partner types you might engage. Partner typeWhat they do System Builder/Original These are large OEMs who purchase licenses directly from Microsoft and then resell the software bundled with their Equipment Manufacturer (OEM)hardware. In most cases, the OEM then sells the complete solution directly to the end customer. Local OEMs or System Builders Small local OEMs that make complete solutions to order. Often these solutions are niche in that they are extremely low cost, or they are extremely high-performance. Independent Software VendorsThey build software solutions. They have Horizontal, Vertical, and Global application focus software solution projects. Also, (ISVs)they include Breadth technical application solution developers. ISVs include Breadth, Global, Strategic Horizontal, Strategic Breadth. System Integrators (SIs)They specialize in business process re-engineering; developing custom, client-specific solutions;, installing/supporting infrastructure solutions; deploying/installing/supporting infrastructure solutions/technologies; overseeing complete IT services departments; and/or providing technical support. In addition, they can develop/deploy/support large-scale application solutions. The SI category includes Business Consultants, Development Services, Infrastructure Integrator, Outsourcing,Call Support, or SI. Consultants/Support/TrainersThey generate revenue from consulting and services in support of integration and the operation of technical solutions. Software Distributor (Disti)Distributors are the Second Tier Channel. They are in the business of moving a large volume of small deals as efficiently as possible. Direct Marketing Resellers (DMRs) DMRs sell directly to customers by direct telemarketing and sometimes catalogs. DMRs are a large part of the SMS&P business. Large Account Reseller/ LARs are the big sellers. They have an established relationship with Depth customers, and they broker a transaction between Enterprise Software Advisor Microsoft and that customer. (LARs) RetailRetail operations buy directly from Microsoft and sell directly to anyone who comes in the door. While many have business- focused operations, the majority of their sales come from Mass Market consumers. Value Added Resellers (VARs)VARs resell Microsoft software to customers, which may or may not include additional deployment services. Enterprise Software AdvisorsESAs are LARs who do not resell but, instead, they broker the transaction, and then provide the deployment consulting and (ESAs)assistance, as well as long-term support. Hosters and TelcosHosters and Telcos provide analog or digital communications services, provide commercial data center facilities, provide broadband Internet, sell network equipment, and/or provide network access services to customers and businesses.Qualify and Close Value-Added Providers (VAPs)Value-Added Providers are mini-SIs who specialize in business process re-engineering; developing custom, client-specific solutions; installing/supporting infrastructure solutions; deploying/installing/supporting infrastructure solutions/technologies; overseeing small IT services departments; and/or providing technical support. In addition, they can develop/deploy/support small-scale application solutions. The SI category includes Business Consultants, Development Services, Infrastructure integrator, Outsourcing, Support, or SI.16 FY10 Inside Sales Customer Campaign Call Guide 17. Prepare continued Partner type What they do Marketing Agencies/These are organizations that provide marketing and user experiencebased solutions to their customers, often involving the PREPARE Independent Agencies Web. They include Traditional Agencies and Digital Marketing Agencies, Agencies that specialize in building Rich InternetApplications and experience, and companies that focus on the niche of user experience and design. Typically, they engagemarketing departments and include organizations ranging from freelancers to small Web design shops to large agencies.These organizations are becoming extremely strategic to Microsoft, as they are not only a market for our tools business, butthey are platform influencers in a world where digital marketing is driving huge IT spend. Web VAPs and CustomThese are companies that provide value-added services over the Web, including Web site and application content, design, Developers and development services. Although the primary services of Custom Development Companies come from the areas ofdevelopment for integration, reporting, intranet, and Internet, most Custom Development Companies today are developingfor the Web so the proportion of Web-based development is increasing.Microsoft categorizes the PartnerEcosystem around the three primaryways partners make money. Selling their own product SB/OEM ISVOffering fee-based services DMR CallIntegratorDisti ConsultantSupport LARRe-selling others productsTrainerRetailVARFigure 4. Partner EcosystemUnderstand Partner NeedsPartners are looking for the following value-based services from their relationship with Microsoft: 1. Help me plan my businessidentifying the goals and objectives of their business, target customers, solution areas, and so forth. 2. Help me grow and enable my businessoffering tools, resources, and readiness programs to help me grow my business and better enable my employees. 3. Help me make my solutions visible to customersproviding lead generation, increased visibility to customers, help in finding opportunities. 4. Help me close more dealsproviding support in closing deals faster and more efficiently.The programs, tools, and resources that we provide to partners have to help them with their overall business goals. Qualify and CloseMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 17 18. Prepare continued Corporate Account EngagementWhile much of the FY10 Inside Sales focus is on the adoption of the new CIAM segment, it is important not to lose sight of how the CPM segmentPREPAREwill change as well. This section will help you understand the key changes in CPM and the strategies for those subsidiaries that are implementingCIAM in FY10. It is important to understand the differences in how each type of customer is engaged and how your rolesas an ITM or IAMaredifferent, depending on which customer segment you serve.ITMDepth-to-Corporate Program ManagedIf you are familiar with the FY09 Depth model, you will find some key differences this year. In order to aggressively achieve the need toincrease growth in both VL annuity accounts and revenue, the Inside Sales resource model is being expanded to perform functions thatsupport territory and account management. The previous resource model of 1:200 scaled to a level where a customer could be contactedapproximately four times per year. The capacity of that model was largely consumed with the opportunity qualification of campaign-generated sales leads. This resulted in limited capacity to engage in account profiling, which is essential to IO-based solution selling. Also,this new model is designed so that Microsoft can have a deeper engagement in order to increase customer satisfaction. Deal size and ROIsupport the move to deepen our coverage of accounts. The average deal size for a Corporate Account is US$32,000 per deal, which is 3times that generated with a Breadth account. Corporate Account sales also produce an ROI of ~40 for the Inside Sales component, whichbenefits the management of contribution margin.Summary of Key ChangesIn CPM, the ITM will have: A greater focus on revenue responsibility and growth in owned accounts. More in-depth focus on selling solutions that meet customer needs, and the business value proposition that Microsoft offers help customers meet their challenges and business opportunities.Call More focus on developing and maintaining strong customer relationships and improving CPE. Key ElementsDepth (FY09)CPM (FY10) Account Ratios200+:1125:1 Assigned QuotaNoFor ITM FTEs only Territory Plans No/LimitedYes Account Plans NoAccount Contact Strategies Annuity Focus Yes OV-CW & EA IO Assessment Limited Yes, a core strategyThe experience and skill set of the individual who was successful in the old campaign-focused model may not meet the requirements in the newmodel.Expectations for CPM ITMs include: Developing and maintaining inside-based customer relationships with the key ITDM(s) within an account. Developing actionable Territory Plans with account-level contact strategies that define clear revenue and customer satisfaction growth strategies.Qualify and Close Developing and managing a healthy and predictable pipeline that meets or exceeds quota and forecast accuracy expectations. Qualifying opportunities and maintaining visibility of those opportunities to close to help ensure the appropriate resources are applied to advance the sale and to help ensure that customers deploy the solution acquired. Applying account intelligence within his/her Territory Plan across multiple accounts to maximize opportunity identification.18 FY10 Inside Sales Customer Campaign Call Guide 19. Prepare continuedIAM PREPAREThe New Segment: Corporate Inside Account ManagedThe CIAM segment has been developed to resolve two specific issues with the previous Depth model: 1. Customers of nearly the same size and IT complexity have dramatically different purchasing experiences with Microsoft, leading to customer satisfaction issues during the annual re-segmentation process. CIAM solution: Provide a graduated experience across previous CAS and UMM customers by introducing the Corporate Accounts Sales model, which delivers a consistent customer experience within a cost envelope between CAS and Depth accounts. 2. Even within the same engagement model, customer experiences are inconsistent because account owners tend to focus on a small percentage of their accounts, potentially neglecting other customers. Typically, after customers make a purchase decision, account owners move on to other accounts, which creates a perception of little touch from Microsoft post-sales. CIAM solution: Specify minimum standard customer experiences that CIAMs are committed to delivering and are measured against.The table below illustrates the differences between CIAM and CPM customer engagement strategies that have been developed to addressthese customer engagement issues. Key Elements CIAM (FY10) CPM (FY10) Account Ratios 50:1125:1 Assigned Quota Yes For ITM FTEs only Territory PlansYes Yes Account PlansYes Account Contact Strategies Annuity FocusEAOV-CW & EA Call IO AssessmentYes, a core strategyYes, a core strategyExpectations for CIAM IAMs include: Developing and maintaining strong inside-based customer relationships that include the building of relationships at the CxO and BDMlevels. Developing or co-developing strategic, effective, and actionable account plans that define clear revenue and customer satisfactiongrowth strategies. Developing and managing a healthy and predictable pipeline that meets or exceeds quota and forecast accuracy expectations. Developing opportunities to close by orchestrating and leveraging appropriate resources to continuously reinforce business value andhelp ensure that customers deploy the solutions acquired. Applying account intelligence within his/her Territory Plan across multiple accounts to maximize opportunity identification.Additional ResourcesIn addition to the Inside Sales roles, there are other resources that are involved in the sales cycles and customer interactions. However, between thetwo models, there are a few key differences in the resources that are engaged in the sales cycles and selling motions: 1. Use of Opportunity Managers: Opportunity Managers (OMs) will be utilized in CPM but will not play a role in CIAM. The IAM and LSS perform the functions of the OM in CIAM. In CPM, the OM works on an opportunity-by-opportunity basis and engages on large, strategic, and/or complex (CPM) opportunities. The OM works in collaboration with the ITM to develop Territory Plans and specific account contactQualify and Close strategies. While the ITM is responsible for the customer relationship overall, the OM supports the ITM by providing a field-based Microsoft presence with the customer. At a minimum, the OM should be engaged on all new EA and high-value Select opportunities as well as renew- als; engagement on other opportunities depends on the complexity and size of the opportunity. 2. Use of Shared STU: The shared STU supports CIAM and CPM when CIAM has not been implemented. See the Corporate Accounts Execution Guide for details. 3. Use of SAM: IAMs will leverage SAM resources in CIAM accounts, particularly during True-Ups. SAM will be utilized in CPM only on an as- needed basis. ITM will provide Microsoft touches for True-Ups and will rely on the LARs to work with the customers to complete the True-Up reconciliations.Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 19 20. Prepare continued 4. Premier Services: IAMs will drive Premier penetration in their territories by engaging with specialists from the Services Team called SISRs. The IAM will have a specific target associated with a number of net new Premier agreements and will drive a conversation with the customerPREPARE about Premier at relevant touch points, including account planning, qualifying an opportunity (particularly a new EA), and after an EA is sold. 5. Partner Sales Team: IAMs will engage PAMs in joint planning for accounts. Both IAMs and ITMs will work closely with PAMs and partners as members of the extended selling team.DISSs Microsoft Dynamics SolutionsThis guidance provides information on the benefits realized through a strategic focus on Dynamics sales and how to orchestrate with theDynamics Team across the sales process to close more Dynamics deals, faster.Protect the Microsoft StackDynamics sales can help protect your existing revenue base by driving tighter stack integration between Office, SharePoint, Exchange, andBusiness Productivity applications. Specifically, Dynamics sales should be considered an opportunity to protect the existing Microsoft Stack ontwo fronts: 1. Against the S+S threat posed by competitors offering online-only business application suites as an alternative. 2. Against painful true-up discussions due to deployment issues and in support of EA consolidation opportunities.Identify Opportunities with Pull-Through Revenue PotentialSMS&P customers who have purchased Dynamics generate significantly more Microsoft revenue than customers who do not own Dynamics.The Dynamics pull-through opportunity should be viewed as a tool to help increase Dynamics penetration with existing Microsoft customers.A Dynamics Configuration Overview (http://infoweb2007/microsoftdynamics/field/WWSMM Files/Account Planning/Dynamics CRM and ERPPull Through Configurations.pptx) is available to help you understand the platform product pull-through associated with various DynamicsCallimplementations. Pull-through opportunities include: EA Renewal, Consolidation, and Up-sell: Enhance the value proposition of Microsoft solutions as a tipping point for EA renewal, consolidation, and up-sell (ECAL) based on improved integration, greater deployment of purchased products, and increased ROI attributed to the Dynamics investment. Platform Product Up-sell: Provide opportunities to sell more seats and premium SKUs for existing Microsoft products based on Dynamics deployment (Windows Server and SQL Server). Platform Product Cross-Sell: Provide opportunities to sell additional Microsoft products that integrate with Dynamics solutions (MOSS and Unified Communications). BPIO and APO Acceleration: Use Dynamics solutions to influence BPIO (http://infoweb2007/initiatives/campaigns/Campaigns/TDM/ Pages/bpio.aspx) and APO (http://infoweb2007/initiatives/campaigns/Campaigns/TDM/Pages/apo.aspx) objectives within an account. Displacement: Replace competitor products with Microsoft products based on Dynamics deployment. Increased CPE: Provide greater value realization based on a Dynamics solution integration and deployment; achievement of Dynamics CoS.Qualify and Close20 FY10 Inside Sales Customer Campaign Call Guide 21. Prepare continuedIAMITMPREPARE Corporate Accounts Customer ExperienceThere is a consistent and distinct Customer Experience associated with each segment. As account owners who maintain a direct relationshipwith their customers, both the IAM and ITM play a central role in the customer experience. However, there are differences between thesegments. Inside Sales Account ManagerCIAM SegmentsInside Sales Territory ManagerCPM Segment Monthly relationship-driven contact from IAM outside of opportunities. Twice-per-quarter relationship-driven calls from ITM outside of IAM has relationships with multiple contacts in accountat minimum, opportunities.1 BDM and 1 TDM. At minimum, ITM develops relationship with TDM contact or one Account strategy to grow relationship.procurement contact. Partner-supported business knowledge. Territory strategy drives contacts beyond minimum. Light Conditions of Satisfaction (CoS) with an annual business review. Light profiling and basic knowledge of business. Expectation on sales process and the role of Microsoft and partners in One-line Condition of Satisfaction (CoS) in Territory plan: documentationhelping customers procure and implement solutions.of contact frequency expectation set with the customer. Focuses on helping to ensure the customer has adequate support for Expectation setting on sales process and how Microsoft and partnersdeploymentPremier and Partner. will engage with the customer to provide solutions. Establish overallpartner-led processes that might include Microsoft engagement incertain situations. Monitors customer satisfaction.The customer experience is further enhanced through the application of additional resources. The use of these resources (how and when) isdirected by the IAM in the CIAM segment and by the sales manager or opportunity owner in the CPM segment.CIAM Segment CPM SegmentCall Ability to attend Microsoft-hosted CIO Summits and 1:Many EBCs. Ability to attend Partner-led Technical Briefings. MS Sales force will provide technical briefings. Microsoft will offer 1:Few strategy briefings. Access to Technical Centers via 1:Many briefings. Partners may offer Architectural Designs and Proofs of Concept. When needed, Microsoft Partners will help develop Architectural Microsoft will offer technical and promotional content in newsletters andDesigns and Proofs of Concept.on the Web. Microsoft will offer the availability of technical labs and training events.As a result, the account ownership engagement looks different across the two segments. A summary of key differences is below. IAM ITM Is a true account manager with 50 accounts per IAM. Functions as an opportunity generation engine for partners. Develops relationship over the phone. Primarily works with customers to identify solutions to existing business Guides customer to an optimized mix of off-the-shelf software solutions needs rather than architecting solutions and helping develop needs.starting with known needs, and then helping to developunseen Leverages marketing campaigns and IO solution selling methods toneeds.develop sales opportunities. Is a FTE with individual accountability for a quota. Helps to ensure opportunities are qualified before handing off to a Has access to field resources to close deals (LSS/Partner/SSP). partner. Is not a field AM support role. Is measured on revenue successfully closed and billed. Will mature into industry focus and expertise. Has access to a pool of low-cost Microsoft resources (e.g., OMs) to closeQualify and Closekey deals. Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 21 22. Prepare continuedCore Account Management PracticesAlong with new customer segmentation and redefined Inside Sales roles, come new activities designed to help you effectively engage the custom-PREPAREers in your Account Portfolio or Territory. Inside Account Management and Inside Territory Management are both composed of strategies andprocesses in Relationship, Opportunity, and Business Management. The diagram below illustrates the core activities of each management function.Business ManagementProcesses that enable sales, marketing,partner, and services to make betterdecisions together and increasepredictability in the business.Opportunity Management Growth Territory PlanningProcesses to enable Inside Sales, STU, Best practice peer reviewsand PTA to predictably identify and solve Pipeline reviews Key opportunity reviews (CIAM only)our customers business goals throughInside Sales Territory reviewsMicrosoft solutions by being customer- Preparation and follow up for businessfocused and appropriately orchestrated. management meetingsCompeteServicesPartner Marketing sales briefings Qualify opportunitiesCPE Orchestrate opportunity V-Team Customer Marketing campaign alignment with territorygoals Send and get customer approval of SponsorLetter Engage customer in check-point meetingsthroughout opportunity MarketingRelationship Management Hand off opportunities Manage opportunities (CIAM only)Processes that enable the accountCall Build trust with customer and V-Team Sales Excellence teams to develop, improve, and Escalate at-risk opportunities Preparation and follow up for opportunitymaintain excellent relationships withmanagement activities (CIAM only) customers and partners. Account Discovery CoS Relationship Rhythm PSP alignment (CIAM only) Preparation and follow up for accountplanning meetingsFigure 5. Core activities of each management functionWhile there are many similarities between the Core Account Management Practices for both Corporate Accounts customer segments, there arealso some key differences: Inside Account Managers are senior sales people who, together with their virtual account team, leverage Microsoft technology, such as RoundTable, Unified Communications, and Live Meeting, to present the customer-facing activities that are core to their role. Meanwhile, the role of Inside Territory Managers is evolving from an Opportunity Hunting approach to a more disciplined Territory Management approach and shares many elements with CIAM. Additionally, the ITM relies on the partner channel once an opportunity has been qualified to advance the opportunity to close but maintains visibility throughout the cycle.Qualify and CloseFor more information on your role in the Microsoft Solution Selling Process, see page 48.22 FY10 Inside Sales Customer Campaign Call Guide 23. Prepare continuedBusiness Management PREPARE Territory PlanningTerritory Planning is the process of setting business goals by assessing and prioritizing potential opportunity across a set of accounts. Inside SalesAccount Owners (IAMs and ITMs) perform Territory Planning for their own sales territories, which they submit to their managers for periodic reviewand approval. Quarterly review is recommended. Inside Sales Managers, Inside Leads, Segment Market Leads, and Corporate Accounts Leads mayalso perform aggregate Territory Planning for a group of sales territories, such as a region or a country.Territory Planning is often confused with Account Planning which focuses on strategy and tactics for a single account, rather than looking at asales territory as a whole. While Territory Planning and Account Planning are complementary, they are distinct processes. Territory Planning allowsan Inside Account Owner to develop a list of potential opportunities which then can be developed further at the account level in the form of anAccount Plan. Information gained through Account Planning is then used to update and validate the goals set in the Territory Plan. A Territory Planis about optimizing the value of the entire book of business for a single sales rep, whereas Account Planning optimizes value at an account level.Territory Planning TemplateThe objective of the Territory Planning Template is to assist an IAM/ITM to better understand potential new revenue opportunities and identify anyquota gaps for a sales territory. The template contains multiple data elements that allow an IAM/ITM to view and sort a sales territory in variousways. Depending on available resources, data for the template may be provided from Corporate, area, or subsidiary leadership. In some cases, anIAM/ITM may need to provide a portion of the data elements that will help determine the ultimate Territory Plan. Actual Name ABC, inc.BCD, inc.DCE, inc. XYZ, inc.Totals ID TPID1111111122222222 3333333347474747Select ID 123412342345234 345345 45745745 PC & ServerPCIB 5,0006,5003,500 4,50019,500 Call Install Base SB 150 200 25 300675 Historical 3 year Avg Rev $/PC$250 $108$29 $41 Revenue3 year Rev Total$1,050,000$700,000$150,000 $275,000 $2,125,000FY09 Rev $400,000 $300,000$50,000$100,000 $850,000FY08 Rev $350,000 $300,000 $100,000 $750,000FY07 Rev $300,000 $100,000$50,000 $75,000 $525,000 QuotaAccount Quota$500,000 $450,000$250,000$10,000 $1,210,000 ProjectedRecurring $ Q1 $125,000 $25,000 $150,000 RecurringRecurring $ Q2$100,000$15,000 $115,000 Revenue (Scheduled Recurring $ Q3 Revenue) Recurring $ Q4 $300,000 $25,000 $325,000FY Total $425,000 $100,000$15,000 $50,000 $590,000Figure 6. Territory Planning Template Qualify and CloseMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 23 24. Prepare continuedAnalysisA good Territory Plan should start with an analysis of last years business and the search for patterns. An Inside Sales Account Owner will be given aPREPARETerritory Plan workbook that contains data about the accounts in his/her territory. This data will include basic facts about the accounts from Siebeland MS Sales, such as PCIB and historical revenue and products owned, as well as analytically generated target lists of customers based on theirpropensity to purchase or renew licenses for particular products or services, such as Premier Support.Based on this data, the Inside Sales Account Owner will identify the kinds of opportunities and approximate revenue associated with eachgroup. During their analysis, ask the following types of questions in order to move into the Goal Setting and Strategy and Prioritization phasesof Territory Planning.The process of analyzing accounts within a specified sales territory to identify and prioritize potential opportunities in order to exceed quota isoutlined below.Align to StrategyAnalyze DataTarget Opportunities Create Groups Set ObjectivesEnter into CRM 1. Annuity renewal 1. Adjust true-up rate.1. Target specific 1. Create groups of 1. Set territory sales 1. Enter targetedcustomers.2. Adjust renewal rate. opportunities: customers:objectives related toopportunities into 2. Recurring annuity 3. Adjust pipeline rate. Strategic value. Existing annuitycommitments. CRM (Siebel, PSM,customers (true-ups). 4. Determine NNR. Short- andcustomers. Examples:GSX) as prospect 0% 3. Potential new annuity 5. Determine pipelinelong-term revenue Existing CoS for alland progress ascustomers. target. potential. non-annuity accounts. appropriate. 4. Customers with high 6. Determine gap to Time/effort to win. customers. Complete accountlong-term potential. pipeline target. Likelihood of Potential newprofiles for all 5. Customers with a winning. customers.accounts.high propensity to 2. Target specific Competitive Monthly contactbuy certain products. opportunities:accounts. with each account. 6. Strategic priorities Renewals Unknown 100% of expiringCallthat stem from True-upscustomers.EAs contacted withscorecard targets. New annuity Expired EAs. plan. 7. Any other priorities targets And so forth.defined by your area, Version upgradesubsidiary, or targetssegment. PCIB relation to 8. Other priorities thathistoric revenueleverage industry Propensitytrends, themodels/NLPcompetitive Relevant industrylandscape, and/or thesolution workloadscurrent economic Strategic salesenvironment unique opportunityto your territory. targets: new EA, ECAL targets, UC compete, Google compete, Office compete, etc.Qualify and CloseFigure 7. Prioritize potential opportunities to exceed quota24 FY10 Inside Sales Customer Campaign Call Guide 25. Prepare continuedGoal SettingStarting with the quota or revenue target for the territory and the pipeline coverage target to develop a net new revenue required target.PREPAREPredictable streams of revenue, such as scheduled recurring payments on annuity contracts or run-rate should be removed from the net newcalculation. There is a worksheet in Territory Planning that will facilitate this calculation as well as aggregate revenue by clusters of opportunities. Itis also important to get a sense of the numbers of opportunities that must be won to achieve the net new revenue goal. This is easily calculatedbased on the average opportunity size and win rate.Once potential revenue from each cluster of opportunities has been identified, enter it into the one-page Territory Plan in the Territory PlanningTemplate. The Plan tab can be used to provide a single source for all of the high-level goals for the territory. Rep Name Chase Hawkins (drop down box) SegmentCIAM (drop down box) # Accounts 4 (calculated field - count of accounts) Rate Assumptions True-up (down) rate 10% Renewal revenue rate60% (use the metric from licensing on your geographys target recapture rate) Adjusted Pipeline target rate 120% Territory Quota $$1,210,000 Actual Revenue $ (YTD)$203, 500 Recurring (Scheduled Revenue) $$590,000 Projected True-up Revenue $ $59,000Call Projected Runrate Revenue $$255,000 Net New Revenue Required (NNR) = $102,500 Target Pipeline$123,000 Current Pipeline$84,000 Gap to Pipeline Target $39,000 Plan to close Gap Potential New $ from Renewals$144,000 Potential New $ from NLP $215,000 Potential New $ from Other$97,500 Subtotal$465,5000Figure 8. Territory PlanQualify and CloseMicrosoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 25 26. Prepare continued Territory Plan for Chase HawkinsPREPAREProgress Tracking Territory Objectives (from Commitments): Q1Q2 Q3 Q4 1 Generate in opportunities 2 CoS for all accounts 3 Complete account profiles for all accounts 4 Monthly contact with each account 5 x new Premier agreements 6 x new Platform EA agreements 7 x new ECAL 8 x new CRM customers 9 x new ERP customers 10x new Windows Server Optional Additional Territory Information Number of Accounts4 Geography(ies) covered West and Central Predominant vertical markets Banking and Insurance Top or priority customer accounts ABC Wealth, Hines Co., American Bar Current economic environment: conditions, trends, potential vertical market impacts, governmentCall regulations impacting territory, etc. Competitive landscape: any significant competitors, market share trends, significant recent wins/losses. Partner landscape: Predominant partners, strengths and weaknesses, gaps in coverage. Potential Opportunity Revenue Identified Through Analysis ClusterRevenue Potential Average OpportunityNumber of Links to TargetSizeopportunitiesCustomer Lists Recurring$590,000.00 n/a n/a EA Renewals$144,000.00 10,00014 New EA/annuity 5EA customer targets CRM3 Dynamics Briefcase Target Customer List Premier Support Premier Target List NLP 1Target Customer List 1 NLP 2Qualify and CloseFigure 9. Territory Planning Template26 FY10 Inside Sales Customer Campaign Call Guide 27. Prepare continuedStrategy and PrioritizationOnce goals are set, it will facilitate the Account Planning process as well as help to align marketing and field resources if you begin to prioritize thePREPAREdifferent clusters of opportunities within your territory. In addition to the normal course of business in the territory, identify two or three specificgrowth strategies to focus on to maximize potential to hit revenue targets.Factors to Consider When Prioritizing Clusters of OpportunitiesIt is possible that some clusters of opportunities have already been prioritized at a sub or segment level in order to meet scorecard targets. Forexample, in FY10, there are targets around BPOS opportunities. Even within kinds of opportunities related to the scorecard, your manager mayhave prioritized them further. This information should be reflected in your Territory Plan where goals should be listed in priority order.Next look at what types or categories of customers represent the best opportunity for growth in your territory. This will be unique to your territoryand could depend on the number of one industry type over another that could influence the types of products customers need. Clusters ofopportunities that will result in maximizing overall $/PC (such as Platform EAs) should be prioritized over other types.Launches, marketing campaigns, and promotions are more influential on timing and prioritization. Does a large portion of potential revenue fallinto a particular product or solution area? If so, there could be marketing campaigns that could benefit these customers.CallQualify and Close Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 27 28. Prepare continuedRelationship ManagementPREPARERelationship Management is the art of how we develop, manage, and continually strive to elevate our level of regular and strategic interactionswith our customers and partners. Achieving Relationship Management excellence supports the ultimate goal of increasing growth and satisfactionthrough perceived and actual value recognized by our Customers and Partners as a result of their engagement with Microsoft.The ITM and IAM are the primary roles responsible for the relationship between the customer and Microsoft. Due to the ratios and the degree ofinvolvement in the sales cycles, the IAM develops and maintains a deeper relationship with the customer (more contact with the account and moreengagement with different contacts within the account).This section will help you understand how to conduct Account Discovery and Account Planning and how to manage Red Carpet AccountTransitions. It also provides guidance on the Relationship Programs, such as MMRP, Deployment, and T-36.CallQualify and Close28 FY10 Inside Sales Customer Campaign Call Guide 29. IAMITMPrepare continued Account DiscoveryAccount Discovery is the process of creating an Account Profile. The Account Profile is a collection of actionable insight about a customersPREPAREbusiness, industry, and technology landscape, including competitors. A high-quality profile should also capture the depth and breadth of customerrelationships. Effective discovery unlocks the ability for you and the Microsoft team to become Trusted Advisors to the customer and is dependenton a thorough understanding of the customers businesses.Prioritize Account Profile Information to Capture in Each Meeting in Your Account Contact PlanWhen you build an Account Contact Plan, you must also decide at which meetings you will capture specific pieces of information in the AccountProfile. Each meeting will also provide additional opportunities to gather information from the customer. The combination of your plan with yourability to take advantage of these opportunities is one example of the balance of science and art in selling.There are four broad categories of information within an Account Profile that are captured during Account Discovery. These include Basic,Deployment, IO, and Compete, as illustrated in Figure 10. Data Element Siebel/PSM LocationUpdate Method When Captured Time Required Open OfficeExtended Profile Obtained from customerWhen triggered by analytics; 10 minutes per competitor Analytics-Enhanced Compete Discovery Google (Google Apps) Competitor Competitor by Tele during Office deploymentName, Category, conversations; during IO Optional:Purchased Quantity,conversations. Lotus NotesDeployed Quantity Salesforce.com MySQL/Oracle Core IO ProfileLocal Attributes Type, Synthesized and confirmed For newly transferred 4060 minutes each for IO DiscoveryCall BPIO Profile Value, Number, Datewith customer by Tele ORaccounts during the secondCore IO and BPIO obtained from customercall. Otherwise, during by Tele.the MMRP Deploy call. Updated Annually. WindowsMicrosoft Software Profile Synthesized and confirmed May begin during MMRP 20 minutes initially; DeploymentProduct Family, Purchased with customer by Tele ORWelcome Call; updated 10 minutes duringDiscovery OfficeQuantity,Deployedobtained from customerduring MMRP Deploysubsequent conversationsQuantityby Tele.call. For newly transferred accounts, updated during the second conversation. Total PCs (PCIB) Extended Profile TotalSynthesized and confirmed During Red Carpet/10 to 16 minutes Basic Account DiscoveryPCs with customer by Tele ORintroductory conversation Total serversExtended Profile Totalobtained from customerif a new account, updatedServers by Tele.during MMRP Welcome call, or Annually. Company contactAccount Company informationName, Address, MainPhone # Company industry Profile Category informationFigure 10. Account Discovery FrameworkQualify and CloseAccount Discovery is not an isolated exercise, but rather an integrated part of the overall Account Planning process. To be truly effective, it must beplanned and performed by the Inside Account Owner or a member of their Territory Team Unit (TTU) in the normal course of doing business withthe account. Figure 11 provides a recommended timeline for working toward Account Discovery. Your manager will provide more specific detailsabout how campaigns should be executed in your subsidiary.Microsoft ConfidentialFor Internal Use Only | FY10 Inside Sales Customer Campaign Call Guide 29 30. IAM ITMPrepare continuedJulyAug Sept OctNovDecJanFeb MarApr MayJunePREPARECompanyBasic Account Discoveryinformation Red Carpet;PC count MMRP Welcome; Year Start Relationship CallsServer countWindowsDeployment Discoverydeployment Deployment Conversationscan be ongoing as you track deployment statusOfficedeploymentCore IO: IO Discovery 9 questions Second or Third Relationship Call for New Transitioned Accounts;BPIO:MMRP Deploy Call (according to lifecycle events) 13 questionsCompete: Compete Open Office IO Discovery Calls; Campaign-Oriented Calls; MMRP Use Call Google Apps Optional:Call Lotus Notes Salesforce.com Oracle/MySQL ElectronicUpload0%Percentage of Questions Profiled100%Figure 11. Account Discovery TimelineRecommended time for achieving 100% Account Discovery per account and activating eventsThe depth of information that can be captured for each of these areas is potentially great; however, it is important to prioritize which informationis captured at which meeting. This will improve the effectiveness of your overall account strategy in generating opportunities. Criteria to considerwhen prioritizing Account Discovery include: Customer satisfaction/level of trust. Subsidiary and scorecard metrics. Data quality reports that can show which Account Profile information has the highest value. Potential competitive situations.Qualify and Close30 FY10 Inside Sales Customer Campaign Call Guide 31. IAM ITMPrepare continuedThe following questions reflect the Profile Data that is prioritized for FY10. You can use the questions to help you integrate Account Discovery intocreating your Account Contact Plan. PREPAREData elementQuestions Company ContactNewly Transitioned Customer or Existing Customer: InformationIn order to make sure I have the correct contact information, I would like to confirm the information that is in our system. Would Company Industrythat be okay? Information Company Size Company name, company address, main phone number?Has the size of the company changed dramatically during the past year? How many employees do you have today?Basic Account DiscoveryContact address, phone number, and e-mail address?On occasion, we have industry-related events, may I confirm your industry?(An alternative is to visit the customers Web site and determine these answers from their company information.) Total PCsNewly Transitioned Customer: Total ServersIn order to understand your environment, I would like to confirm some information about your company. Would that be okay?Could you confirm the number of PCs? And servers?OrCould you walk me through your current IT infrastructure? How many PCs do you have? How many servers do you have?Existing Customer:Has anything changed significantly since the last time we spoke? According to my records, you have x PCs and y servers; havethose numbers changed during the past few months? Initial Questions: 3 Time Required: 10 to 16 minutes CallData elementQuestions WindowsNewly Transitioned Customers:Deployment Discovery OfficeI see that you have purchased Office/Windows version xxx. Are all of those licenses being used today? Why, why not?New VL Customers:Thank you for buying Office/Windows. I would like to make sure you understand the software benefits that are available to you asa result of that purchase. Have you started to deploy those licenses yet? Why, why not? How many have been deployed? When willyou be starting the deployment process? Would you like some assistance? Initial