anaplan spm webinar series, part 3: creating a comprehensive approach to sales forecasting,...
TRANSCRIPT
Presented by
© Copyright 2016 The Sales Management Association. All rights reserved.
Sales Management Association Webcast
6 December 2016
Creating a Comprehensive Approach to Sales Forecasting
Brandon [email protected]
Rowan TonkinPractice Lead, Sales and Marketing [email protected]
2© Copyright 2016 The Sales Management Association. All rights reserved.
About The Sales Management AssociationA global, cross-industry professional association for sales operations and sales management.Focused in providing research, case studies, training, peer networking, and professional development to our membership. Fostering a community of thought-leaders, service providers, academics, and practitioners.www.salesmanagement.orgwww.salesmanagementconference.com
About the Sales Management Association
17 – 19 OCTOBER 2017 ATLANTA
3© Copyright 2016 The Sales Management Association. All rights reserved.
Today’s Speakers
Brandon [email protected]
Rowan TonkinPractice Lead, Sales & Marketing ApplicationsAnaplan
Presented by
© Copyright 2016 The Sales Management Association. All rights reserved.
Sales Management Association Webcast
6 December 2016
Creating a Comprehensive Approach to Sales Forecasting
Brandon [email protected]
Rowan TonkinPractice Lead, Sales and Marketing [email protected]
The sales performance management webinar series
ANAPLAN.COM/SPM-SERIES
Creating a comprehensive approach to sales forecasting
SALES OPS WEBINAR SERIES: PART 3
The traditional SPM pathway
Account
Segmentation
and Scoring Capacity Planning and Management
Marketing
Budget
Allocation Marketing
Campaign
Planning
Compensation Planning
Deal Desk Crediting
Marketing
Attribution
Territory Planning and ManagementQuota Planning and Management
Forecasting Commissions
Campaign
Performance
ManagementMarketing
Spend
Management
Account
Planning
The connected SPM pathway
Account Segmentation and Scoring
Capacity Planning and Management
Marketing Budget
Allocation
Marketing Campaign Planning
Compensation Planning
Deal Desk
Commissions
Marketing Attribution
Territory Planning and Management
Quota Planning and
ManagementForecasting
Crediting
Campaign Performance Management
Marketing Spend
Management
Account Planning
Sales forecasting for success
Your Speaker Deloitte Sales Effectiveness Framework
Brandon KulikPrincipal, Deloitte Consulting LLPPhone (949) 394-2652e-mail [email protected]
Brandon leads Deloitte’s Sales Force Effectiveness Practice.Prior to joining Deloitte, Brandon served in a variety of leadership roles, including: an officer in U.S. Army, sales, sales operations, and sales management. At Deloitte Brandon focuses on helping his clients solve complex Go-To-Market challenges, including sales coverage, talent development, forecasting, process, sales productivity, technology, quota and incentive management, and sales integration.
Brandon has served a broad array of industries but focuses on Technology Media and Telecom clients including: Salesforce.com, HPE, HPI, Adobe, Sprint, T-Mobile, Hitachi Data Systems, VMWare, and Thompson Reuters
• Sales and channel strategies• Sales organization and operating models• Segmentation, coverage and selling roles• Sales process and automation• Sales quota and incentive design• Sales reporting, forecasting, and analytics• Sales operations and enablement• Sales culture, engagement, and adoption
Plan
Measure
Support
Motivate Design Enable
Top of mind issues for sales leadersSales leaders are pulling various levers to transform their sales organizations to compete in
an increasingly complex environment.
M&A
Sales, Operations, and Finance leaders are looking to better mine customer, deal, pricing, and sales rep and channel data for forecasting and performance insights. Today’s data infrastructure, sales management practices, and analytical talent insufficiently meets this demand
Cost of SalesCompanies are increasingly looking for ways to reduce cost of sales organizations by reducing incentives, optimizing coverage models, and by moving towards web and channel buying to ensure lower cost of sales channels
Silver Bullet Technology (Cloud/Digital)Cloud-based solutions are changing customer buying preferences and companies’ go-to-market approaches. Further, sales leaders are more willing to adopt sales enablement technology beyond CRM to improve performance, and expect more out of CRM platforms
Sales leaders are still not satisfied with incentive plans and lean too heavily on plan design to drive behavior. Further, sales organizations struggle with training programs, coverage models, selling roles, sales operations organizations, and acquired sales teams
Sales Effectiveness Basics
Sales Planning & Analytics
Increases in deal activity and expectations, and speed of post merger integration create implication cross all Sales Effectiveness market domains from sales strategy to talent to technology and operations
Sales forecasting as a strategic value driverNavigating disruptive environments requires collaborating as an organization to plan, manage, and adapt continuously … and collaborationForecasting is foundational to planning …
Finance / Accounting
Executive Managemen
t
Sales
Marketing
Supply & Service Chain
Respond strategically to execution challenges
Estimate target attainment and take corrective actions
Actively manage promotions mix
Produce external reports and manage G&A budgets
Secure capacity to meet demand
Sales Forecasting
Sales Budgets
Product and Admin Budgets
Sales and Operations Plans
Quotas and Territories
Demand and Supply Planning
Sales forecasting challenges
USABILITY
INNEFFICIENCY
INACCURACY & MISTRUST
SUBJECTIVITY
• CRM accuracy and adoption• Data inconsistent and
incomplete• Varying definitions and
methodologies within a company
• Judgement vs. formula• Inability to properly factor the
pipeline• Storytelling and hope vs.
certainty• Lack of measurement and
accountability for accuracy
• Inflexible formats (Regional vs. Segments vs. Representative vs. Team)
• Too much “what”, not enough “so what” or “why”
• Multiple owners with multiple interlocks
• Frequent rework due to reconciliation of inputs
• Lack of process clarity without a standard set of rules and factors
Poll question 1
What your number one sales forecasting challenge?
1. Inaccuracy & mistrust2. Usability 3. Subjectivity 4. Inefficiency
Enterprise science approachBusiness issue driven, enabled by science, focused on measurable benefits
Impl
emen
t
Business Reaction
Predictive trigger
1. Business Issues
Algorithms & Models
Integrations & Dashboards
2a. Science 2b. Technology Foundation
Slowing or Accelerating
Growth
Sales Rep Productivity
New Product Introduction
Build foundation Monitor Ideation
Rapid Discovery
+
2. Analytics Approach 3. Directed Actions
•Selling motions•Account management•Cross functional actions•Deal and pricing approaches•Sales coverage• Incentive changes
Sales Forecasting
Sales Coverage
CRM & BI
ANAPLAN MODELS
Playbooks
Poll question 2
Do you use predictive analytics in your sales forecasting?
1. Yes 2. No 3. Not sure
Poll question 3
What’s your sales forecasting technology solution?
1. Spreadsheets2. Homegrown solution3. CRM 4. Tool dedicated to sales forecasting
Organizational ownership : Industry insightsFunction Owns Contributes Enables
Sales B2B heavy like enterprise software, hardware, med device, single head of sales
Provides the bottoms up view from CRM & PRM with sales leader judgement
Manages the process through sales operations with tools and reporting
Finance Where sales operations are shared finance services, BU led sales organization
Provide macro economic guidance and works with product teams
May integrate with financial planning software (Anaplan)
Marketing Provides macro market guidance, especially in Telco/Retail/CPG
Provides finance with market data
Supply Chain
Provides supplies and production inputs
IT IT (data, integration, platforms, support)
Owni
ngCo
ntrib
utin
g &E
nabl
ing
Keys to success in sales forecasting
•Leveraging more analytical rigor into the sales forecasting process reduces the impact of subjectivity
•Using data models can improve forecasting accuracy and identify early indicators of underperformance
Data Driven
•Allows better alignment across functions by incorporating several layers of granularity from BUs (e.g. Region, Segment, Team, Rep etc.)•Enhances visibility into rep and company performance
Single SourceMultiple Views
•Insights provided by improving sales forecasting can lead to improved data integrity and more refined future forecasts•Using standard, repeatable processes drive the development of this valuable capability through the organizational ranks
Learning & Improving
•Investing in real-time capabilities reduces the latency from data to insight so that sales leadership can use key analytics to make more informed decisions•Quickly and accurately updating forecast based on demand changes improves operational efficiency to plan for future activities
Real Time
•Process should include parallel input from spectrum of sales roles: specialists, generalists, business development etc.•Relevant business units, regions and functions can add valuable perspective and should be brought into the process
Collaborative
Leading companies that transform their Sales Forecasting process see results in both revenue growth and operational efficiency: 7.4% YOY increase in deal size, 22% increase in
forecasting accuracy, 6.7% average YOY improvement in sales cycle time
The sales performance management webinar series
ANAPLAN.COM/SPM-SERIES
20© Copyright 2016 The Sales Management Association. All rights reserved.
Your Questions
Brandon Kulik
Principal
Rowan TonkinPractice Lead, Sales & Marketing [email protected]
Did we run out of time before we got
to your question?
Presenters can follow-up with you via email. Feel free to submit more
questions if you’d like an offline response.
21© Copyright 2016 The Sales Management Association. All rights reserved.
© Copyright 2016 The Sales Management Association. All rights reserved.
Thank You
Thank You