© Copyright 2013 The Sales Management Association.

Sales Management Association Webcast

7 November 2013

Presented by

How To Coach, Motivate & Incent To

Exceed Sales Quotas in 2014

#SalesQuota

About The Sales Management Association

Slide 2

© 2013 The Sales Management Association. All rights reserved.

A 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.

Learn More: www.salesmanagement.org #SalesQuota

Today’s Panelists

Slide 3

© 2013 The Sales Management Association. All rights reserved.

#SalesQuota

Incentive Compensation Trends and What They Mean for 2014 Sales Planning

November, 2013

PwC Slide 5

Key Themes impacting Incentive Compensation

Key Drivers Impact on Companies Impact on Compensation

Flexibility

Need to be increasingly agile to support evolving customer-centric business models and achieve speed to market

Enhanced compensation programs are configurable using rules in a week instead of IT projects over months

New generation of more tech-savvy workers and regulators are demanding greater access to information

Compensation transparency and reporting analytics must be standard and self-serve; auditors must be able to clearly ascertain how commissions were calculated

Transparency

Sales to Strategy

Alignment

Sales-led organizations adapt to challenges and opportunities with a focus on optimizing sales performance

Compensation and incentives must align with strategic objectives (i.e. growth, retention, account penetration) to maximize ROI

Companies looking for ways to get more from their existing sales force

Sales performance including training, coaching, and gamification together develop next generation capabilities

Performance Optimization

#SalesQuota

PwC

Ongoing pressure on sales incentives

External environment Internal environment

Sales incentives What competencies,

behaviours and outcomes are you looking to drive in the sales force?

What do regulators expect in the structure, governance, controls and performance management of sales incentives?

What do customers want? • Multi channel? • Interaction experience

expectations? • Value?

How to ensure you retain and recruit the best sales talent?

Who will be the best performers going

forward and how will you reward them?

What sales have positive and negative

implications for brand and reputation?

What are the commercial opportunities of reviewing the approach to sales?

How do you take a leading role in the market to position your sales force ahead of the competition and take first mover advantage? Retention and

motivation of key sales force

Need for cultural change (e.g. relationship building and risk

behaviours)

Competitor activity

Commercial opportunity

Customer need

Focus on brand and reputation

Regulatory pressure

Competition for sales

force talent

6

#SalesQuota

PwC Slide 7

PwC Sales Capability Framework – the wider sales process

Growth

Technology and Tools

Customer Value Proposition

Customer Segmentation &

Profitability

Market Coverage

Alignment of sales to Business Strategy

Alignment to Product & Product Development

Portfolio Management

People Management

Pipeline Management

Sales Forecasting

Performance Management

Sales Support / Operations Mgt

Compliance & Accreditation Management

Acknowledge and Establish Rapport

Understand customer issue / need

Identify Solution

Confirm Interest & Overcome Objections

Client Acceptance

Confirm / agree contract

Reward and Incentives

Structure, Roles and Governance

Sales & Management Competencies

Recruitment, On-boarding &

Development

Performance Culture & Behaviours

Compliance and advisor quality accreditation

CRM Solutions

Customer Data Management

Knowledge & Best Practice

Management

Sales Tools, Guides & Portals

Sales MIS

Business & Marketing Strategy

Client On-Boarding

Establish Future Contact Plan

Sales Planning and Strategy

Sales Management Sales Process People and Skills

Financial Planning Tools

Regulatory Framework and Requirements

The value of applying a framework when considering change to your existing processes and infrastructure is in ensuring you don’t recreate old problems in a new solution wrapper

#SalesQuota

PwC Slide 8

There are strategic relationships between the details of planning tactically for 2014

Planning for 2014

Corporate Strategy

Alignment

Assessing Performance

Getting More from your

Sales Force

How to incent

Flexibly

Cash, Non-cash, MBO

Training is based on success stories supported by hard data

Sales people naturally want to compare them selves against peers

Objectives align with corporate strategy like persistency, new accounts, account penetration

Training & Gamification

Visualizations emphasize how close agents are to achieving a particular goal

Transparency

Marketing, Sales/Distrib., Ops Agreement

Decisions must be made on how much transparency to allow to support the strategy

#SalesQuota

PwC

PwC Case Study

9

• Through both acquisitions and organic growth, PwC has experienced tremendous growth

• In US, have gone from 55 sales people to 175+ in last 5 years, and currently process commission on revenue of ~$1B

• Compensation program contains mixture of commissions and MBOs, quotas and caps

• PwC is currently migrating its compensation calculations from a homegrown solution onto a modern ICM platform

• Benefits will include:

• greater speed to market for plan changes,

• more controls and audit capabilities,

• improved business intelligence for assessment & planning,

• greater sales person and partner productivity (reduced manual work),

• and a more cost effective solution

• PwC Advisory team delivering new platform utilizing an Agile framework

#SalesQuota

CallidusCloud Sales Landscape

• Fast growing SaaS High Tech

Company

• Revenue Expectations for 2014

Significantly Higher than 2013

• Sales Tasked with

Meeting/Exceeding Revenue

Goals

#SalesQuota

Key Sales Challenges

• How do we get more out of existing

sales reps?

• How do we hire the right sales talent?

• How do we accelerate the time to

revenue for new hires?

• How do we pivot to align sales with

changing strategies?

#SalesQuota

3 Ingredients – Key to Solving Challenges

People

Technology Process

#SalesQuota

Getting More out of

Existing Sales Reps

• Motivate Through Gamification

• Coach Based on KPI’s

• Guide Selling – Maximize Deals, Show

Estimated Commission

#SalesQuota

Hiring the Right Sales

Talent

• Source from many channels (i.e.

employee referrals)

• Profile successful reps by role

(hunter/farmer)

• Use profiles to help filter & focus on the

right candidates

• Automate initial sales interview process

#SalesQuota

Accelerating the Time to Revenue for New Hires

1. Pre-Boot Camp Training

• Self-Service Product & Solution Training

• Certification Testing

2. Boot Camp

• 1 Week Sales & Solution Training

• Builds on Initial Training

3. Mentor Program

• AE Assigned Sr. AE Mentor

• Mentor Includes in Meetings/Calls

4. Performance Tracking

• KPI’s Tracked & Monitored

• Proactive Coaching in Weak Areas

#SalesQuota

Pivoting to Align

Sales with Changing

Strategy

• Communicate Changing Strategy to

Sales Team

• Align Sales Force to New Strategy:

• Incentives to Reinforce Adoption

• Modified Key Sales Performance

Metrics

• Internal Systems & Processes that

Promote Strategy

• Sales Process

• Sales Configuration, Pricing, &

Proposals

#SalesQuota

Tying it All Together

#SalesQuota

Questions and Discussion

Slide 18

© 2013 The Sales Management Association. All rights reserved.

© Copyright 2013 The Sales Management Association

Thank You.