| The sluggish economy has had its toll, even on | | | | made centrally. Now, local insight and field buy-in |
| Google where it has recently reduced the size of | | | | takes hold. This is a critical step in the process |
| its sales force. Other companies such as | | | | where the implementation plan is handed-off from |
| GlaxoSmithKline, Apple and Sun Microsytems have | | | | central resources to the field. An implementation |
| also reduced their sales forces. Re-sizing the sales | | | | team is selected, educated and trained on the |
| force creates a cascading impact on the sales | | | | work plan. Corporate sponsorship and leadership |
| force and their customers. My experience shows | | | | need to be aligned with field senior management. |
| that when this type of change occurs in the field, | | | | Education and training on the business case for |
| top line revenue and sales force morale are at | | | | change is developed and delivered by senior |
| risk because of the broken relationships between | | | | management to field sales management levels. All |
| sales professionals and their customers. | | | | of the data is handed-off to first-level sales |
| Three critical questions need to be addressed | | | | management. |
| when re-sizing the sales force: | | | | When field sales management is educated and |
| 1. Do you have the right number of sales | | | | trained, an interactive, hands-on sales assignment |
| professionals? | | | | design session is ready for execution. The input |
| 2. Are sales professionals covering the right | | | | for the design session is the data classified by |
| accounts? | | | | segment and geography. A software mapping tool |
| 3. Are sales professionals located in the right | | | | is utilized to assist with the facilitation of the |
| locations? | | | | session. Participants in the design session are the |
| The following proven, real-world process can be | | | | appropriate implementation resources and field |
| used to answer those questions: | | | | sales management. One of the sales managers is |
| 1. Create a database | | | | selected to start the process. In addition to the |
| The process starts with a data template with | | | | sales manager who has insight on the |
| elements including account characteristics, sales | | | | marketplace, other resources could be involved |
| representative assignment, revenue, margin, | | | | such as a distribution center manager or a |
| volume, potential, account profile and sales visits. | | | | previous sales manager located in the geography. |
| The next step is to populate the template with | | | | Projected on a wall is a map of the appropriate |
| customer and prospect data. Next, the database | | | | accounts (based on customers, prospects, |
| needs to be segmented. There are a wide range | | | | segments and or account profiles). The sales |
| of methods for determining segments based on | | | | manager selects accounts into the first sales |
| account characteristics, e.g., industry definition, | | | | assignment. Based on the previous example, the |
| products, services and buying behavior. The | | | | constraint for each sales assignment is 800 sales |
| foundation of segments will have an impact on | | | | visits per year. The sales manager completes the |
| the following steps of the sales deployment | | | | first sales assignment and continues with the |
| process. | | | | process until his/her geography is completed. The |
| Once the database has been cleansed and | | | | process continues until all accounts have been |
| segmented, estimating potential is the next step. | | | | grouped into sales assignments. Once the sales |
| Most companies can collect actual revenue or | | | | assignments are set, the first-level sales |
| margin at the account level, but potential is usually | | | | management assignments are designed. At this |
| not readily available. You could engage the sales | | | | time, the straw model (headcount and estimated |
| force to estimate potential at the account level, | | | | costs) is presented to senior management for |
| or you could use a "mechanical" process. One | | | | preliminary approval. Final approval of the model |
| route is to estimate specific spending at the | | | | cannot occur until all geographies have been |
| national level, at the industry segment and at the | | | | designed. The output from the design session is |
| company size level (either number of employees | | | | an account list by sales assignment, account maps |
| or annual sales). Then you can estimate potential | | | | by sales assignment, organizational chart, |
| at the account level. Another means of achieving | | | | summaries of revenue, potential and estimated |
| account potential is more specific by using | | | | costs, and issues and next steps. |
| spending at a geographic level, i.e. spending in | | | | 4. Role/Fit |
| Atlanta which may be different than San | | | | The next step of the sales deployment process is |
| Francisco. In some industries like pharmaceuticals, | | | | to assess and select incumbents into the sales |
| data exists that can pinpoint exact spending at | | | | rep and first-level sales management assignments. |
| the account level. Another option involves | | | | Data needs to be collected in order to make |
| leveraging the customer database. Customer | | | | decisions concerning fitting incumbents into the |
| characteristics need to be included in the database | | | | assignments. Some of the data sources are |
| such as industry segment, number of employees | | | | performance appraisals, self assessments, |
| and annual sales at the account level. Based on | | | | employee preferences, manager |
| these customer characteristics, estimators are | | | | recommendations, relocation desires, etc. Once |
| created based on high share accounts by | | | | sales managers have been selected and |
| segment. This estimator is then used as a proxy | | | | approved, field sales management is convened |
| for potential for all customers and prospects with | | | | (by geography) to fit incumbents into sales |
| the same characteristics. | | | | assignments. Based on the available data, decisions |
| Once you have potential at the account level, a | | | | are made to select incumbents into sales |
| deeper level of marketplace insight can be | | | | assignments. Some assignments may be left open |
| gleaned. For example, you could analyze market | | | | and could be filled from a different geography or |
| share by product or by industry segment and | | | | from the outside. Some incumbents may not fit |
| develop implications for current sales deployment. | | | | into the new assignments. In those cases, other |
| The next step is to create account profiles. | | | | roles could be an option or sometimes severance. |
| Account profiles are often based on size of | | | | It is possible that some of the sales reps will not |
| potential and on customer segment. Profiles can | | | | accept the new positions. In order to prepare for |
| also be based on factors other than "size," e.g. | | | | that event, contingent plans need to be ready. |
| purchasing process, product mix, contracting, etc. | | | | Once the preliminary organization is set, projected |
| For example, all accounts that have greater than | | | | actual costs are updated into the model. |
| $10 million annual potential are in the Jumbo | | | | 5. Account Risk Transition Plan |
| account profile in the Retail segment. | | | | When the incumbents and/or open assignments |
| Next, workload can be defined based on account | | | | are complete, it is possible to determine the |
| profiles. Workload is an activity-based approach | | | | account risk of changing one sales rep to another. |
| and is the foundation for sizing the number of | | | | Since you are changing the key link, the sales rep |
| sales assignments. Workload is defined as the | | | | between accounts and the company, you need to |
| number of sales calls per period required to | | | | identify and mitigate these risks. The focus is to |
| support customers and prospects. Workload is | | | | protect top line revenue during this phase of |
| segregated by customers and prospects. There | | | | transition. For some accounts, there may be a |
| are several sources of information for designing | | | | significant change, e.g., "I had the same rep for |
| workload structure: sales force survey, customer | | | | the last five years. Now, my new sales rep is |
| survey, sales interviews, previous workload | | | | new to the company." What if the account is a |
| analyses and/or sales process design. | | | | Jumbo account? Other accounts may have the |
| Now that the complete database has been | | | | same rep; either way, we need to account for |
| integrated and cleansed, the current sales | | | | the risks. The data can show the variances at the |
| deployment model can be analyzed for gaps, | | | | account level where sales rep changes occur. At |
| overlaps and misalignments. | | | | least six key risk factors have been identified: |
| 2. Sales Assignment Design | | | | account profile, share of revenue as a percentage |
| At this time in the process, the database is | | | | of potential, sales rep change, distribution center |
| complete and validated. The account-level | | | | change, customer service change and qualitative |
| database contains customers, prospects, | | | | assessment. All accounts are rated by the six key |
| segments, revenue, potential, account profiles and | | | | factors, and a score is calculated. By leveraging all |
| workload. Now you are ready to design | | | | of this data, a plan can be developed to alleviate |
| assumptions for sales assignments. Sales | | | | the risks, e.g., the accounts with the highest risk |
| assignments are groups of accounts that are | | | | score will have a face-to-face meeting with the |
| aligned by sales rep. You need to determine what | | | | customer and your Regional VP. |
| account profiles will be covered by what sales | | | | 6. One-On-One Meetings |
| roles. For example, Jumbo accounts are covered | | | | We are almost ready to implement at the |
| by Key Account Managers, Large and Medium | | | | street-level. Executive management has approved |
| accounts are covered by Account Executives, | | | | the organization headcount and costs. |
| and Small accounts are covered by Inside Sales | | | | Assignments are complete with account lists and |
| Representatives. For each sales role, you need to | | | | account maps. Incumbents have been selected. |
| design the workload specifications based on how | | | | Account risk transition plan is in place. Education |
| many sales visits per day are needed. For | | | | and communication materials have been |
| example, time allocation for Sales Executives is | | | | developed and approved. The key step is a |
| 60% on customers, 20% on prospects and 20% | | | | one-on-one meeting between a sales manager |
| on non-selling activities. Then, you need to agree | | | | and a sales rep. This is the most critical interaction |
| on the number of actual days in the field for sales | | | | of the implementation. All of the work that has |
| activities. Continuing with the example, there are | | | | been completed needs to be delivered to the |
| 150 days available to make customer sales visits, | | | | sales rep level. And this communication needs to |
| and 50 days for prospects. The design | | | | be delivered flawlessly. If not, all the invested |
| assumption would be 3 sales visits per customer | | | | work will be at risk. So, the key implementation |
| per day times 150 days equals 600 sales visits, | | | | role is the first-level sales manager. Make sure |
| and 50 days on prospects for 4 visits per day | | | | that first-level sales managers are prepared for |
| equals 200 sales visits. In total, there would be | | | | the one-on-one meetings with education, training, |
| 800 sales visits per year. Now that you have the | | | | role play activities and tools. In addition, the |
| assumption for creating assignments, you can | | | | first-level sales manager has experienced |
| estimate the number of Account Executives | | | | first-hand the design of the sales assignments and |
| needed based on the database. In addition, | | | | the process to fit incumbents into sales |
| first-level sales management roles can be | | | | assignments. If any of the sales managers are |
| estimated based on span of control. This model of | | | | questionable about delivering the communication, |
| estimated headcount and costs (sales reps and | | | | his/her manager could team for the one-on-one |
| first-level sales managers) is then compared to | | | | meeting. In addition, since you have identified the |
| current headcount and costs. Usually, the models | | | | sales reps that are at risk of not accepting the |
| are revealing; either the current sales deployment | | | | new role, they have been scheduled early in the |
| is right or, most likely, there are gaps that need | | | | one-on-one meetings, and the contingent plan can |
| to be addressed. | | | | be deployed if needed. |
| 3. Create Assignments | | | | Finally at the end of this proven, real-world |
| Creating assignments is the first step of sales | | | | process, you will be able to answer the question |
| deployment implementation in the field. Up to this | | | | that you do have the right number of sales reps |
| point in the process, most decisions have been | | | | in the right locations covering the right accounts. |