tocico conference 2009 how to grow sales in a shrinking
TRANSCRIPT
TOCICO 2009 Conference
TOCICO CONFERENCE 2009
www.justinroffmarsh.com
© 2009 TOCICO. All rights reserved.
TOCICO CONFERENCE 2009
How to grow sales in a shrinking economy
TOCICO 2009 Conference
About Justin RoffAbout Justin RoffAbout Justin RoffAbout Justin Roff----MarshMarshMarshMarsh
Founder and president of Ballistix
• Management consultancy with operations in USA and Australia
• Delivers sales process engineering projects to (predominately) engineer-to-order manufacturers
Developer of Sales Process Engineering:
www.justinroffmarsh.com
© 2009 TOCICO. All rights reserved.
• The first TOC-based sales-management application
• Applies division-of-labor to sales function
• Multiplies salespeople’s utilization and improves customer service
Author: Reengineering the Sales Process
• Available from Goldratt Marketing and Amazon.com
Popular speaker (executive audiences)
1.
Reality check
Do you have unutilized production capacity?
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Do you have unutilized production capacity?
Is your marketshare < 20%?2.
Reality check
You have growth potential1.2.www.justinroffmarsh.comPage § 4
You have growth potential
Your organization’s constraint is ‘sales’
1.2.
Reality check
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time
sales
Plant capacity
Plant utilization
Reality check
The market
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time
sales
Plant capacity
Plant utilization
Reality check
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Sales Production
The optimum
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Sales ProductionOrders
Scaling sales
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1.Employ more salespeopleImprove the productivity of the sales function2.
Reality check
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The modern salesperson is an artisan; operating in a craft-shop environment
‘Industrializing’ sales
Division
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Divisionof labor
Division of labor(specialization)
‘Industrializing’ sales
Standardization
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Division of labor
Standardization
Centralized scheduling
Formal management regime
Division of labor
BusinessBusiness--development development Meetings (8%)Meetings (8%)Prospecting (12%)Prospecting (12%)
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Social Activities (12%)Social Activities (12%)
Opportunity Opportunity Management Management and Clerical (16%)and Clerical (16%)
Fulfilment tasks (28%)Fulfilment tasks (28%)
Customer service Customer service tasks (24%)tasks (24%)
Division of labor
PromotionsPromotions
Administration Administration and clericaland clerical
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Customer service and Customer service and fulfillment (engineering)fulfillment (engineering)
BusinessBusiness--development development Meetings (100%):Meetings (100%):
4 bus dev meetings a day, 4 bus dev meetings a day, 5 days a week5 days a week
Standardization
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Centralized scheduling
$
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$ $
Sales Coordinator Salesperson
Centralized scheduling
$
$ $
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Technical Support
Centralized scheduling
$
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$
$ $
Sales Coordinator SalespersonPromo Coordinator
Management by numbers
$
Pending Appt Days(Opportunities)
Forward-booked Days Buffer
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Sales Coordinator
$
$ $
SalespersonPromo Coordinatorfxfx
Management by numbers
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Management by numbers
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Economics
Parameter Before After
Salespeople ($100k ea) 10 2
Project leaders ($100k ea) 0 4
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Project leaders ($100k ea) 0 4
Sales coordinators ($45k ea) 0 2
Customer service ($40k ea) 0 4
Payroll cost (OE) $1m $850k
Total appointments/wk 20 40
Promotional expenditure ∆ 0%
Sales (T) ∆ 130%
Questions
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