Thinking Partners

Case Study:
Sales & Channel Management

Upgrading the Sales Organization

The Opportunity

A Western Sales Force consisted of 257 Sales Reps and 10 District Sales Managers (DSM), producing $390 million at 36% GP.

There was an opportunity to transform reps from product movers to consultative Account Managers:

  • Transition over two years with potential turn over 20+%.
  • Move from geographic zip code gardeners to account managers.
  • Align to serve the customer regardless of internal divisions and silos.
  • Improve productivity and performance measurements.

Analysis and Action

First: Sales Talent Management
Replacement of approximately 108 reps and 5 DSMs over two years:

  • Adjust competency requirements and clarify performance expectations based on new model.
  • Blend top performers and new-hires.
  • Identify, develop, challenge and empower world class leaders in the Western Region.
  • Differentiate between average & star performers. Retain the best & manage out underperformers.

Second: Strategic Customer & Channel Management
Tier customers based on value & potential and deploy sales force based on customer value:

  • Stratify Account Manager by competencies and align with appropriate type of customers.
  • Meet customer needs with what company excels at, not smoke.
  • Align with current suppliers to exceed customer expectations on reducing supply chain cost, energy cost, and transactional cost savings.

Third: Stress Sales Force Productivity
Provide an environment where Account Managers are empowered to make appropriate decisions & act on behalf of the customer:

  • Streamline the sales process, such that it does not get in the way of sales activities.
  • Eliminate  paperwork for upper management & trust sales management process.
  • Sales force time management will focus on an urgency for customer face time.
  • Nobody, not even a VP, will keep sales force from making calls.

Fourth: Performance Measurements / Rewards
Accelerate & standardize performance management:

  • Qualitative: sales competencies & skills.
  • Quantitative: quartile metric sales & GP%.
    – Reps last three years V% & GP% versus company.
  • Reward performance in highly motivational way.
  • Establish region & district ranking based on GP and volume.
  • Institute customer measurements.

Results

Talent management & challenging top performers produced:

  • Five Vice Presidents.
  • Eight District Managers – Ops & Sales.
  • Twelve National Managers & Directors.

Performance:

  • Achieved high double-digit growth over 3 year period.
  • Improved GP% from 36% to over 39%.

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