calliduscloud webinar: 5 steps to better sales performance management

5 Steps to Better

Sales Performance Management

September 10, 2014

Today’s Featured Speakers

Dan Koellhofer

Vice President, Product Management

CallidusCloud

dkoellhofer@calliduscloud.com

Jennifer Kling

Product Marketing Manager

CallidusCloud

jkling@calliduscloud.com

Pace of change

• 25% of goods and services shipped and sold in the last 10yrs Pace of Change

Products & Services

Pace of Change – Broadcast Media

Channel 1 Channel 2 Channel 3

Pace of Change - Communications

The pace of change is staggering.

Are you keeping up?

Agenda

On-boarding

Effective territory & quota planning

Coaching and appraisals

Compensation & rewards

Gamification techniques

On-boarding

What are bad sales

hires costing you?

• Interview Costs

• Training

• Compensation

• Lost business Opportunity

• Negative Impact on

Customers

• Negative Effects on Morale

15

times base salary

Reference: Dr. Bradford Smart, PHD; Publication Avoid

Costly Mis-Hires

>500k

Cost of a bad hire

Do you hire your problems?

• Do you hire when you need new reps?

• Do you hire who you “like”? -The sales

“halo” effect!.

• Do you hire the bottom 20% that most

companies are just recycling. (Someone

else's non-performer)

• Do you hire someone who can sell you

product vs. just themselves?

• ‘Poor fit to the job’ – one of the top five

reasons for high sales turnover

• Do you verify performance or Income?

Verifying income is easy, but verifying

performance is tricky.

Reference: 2012 Sales Rep Hiring/Compensation Analysis

47% Companies that say

their sales hiring needs

improvements

The Secret Recruiting Formula

1. Begin with the end in mind

2. Use quantitative tests

3. Cast a wide net

4. Share and collaborate

5. Timing is everything

SalesSelector Solution

18% shorter time-to-hire

52% Shorter

time-to-productivity

• Quantitative Sales Test

• Powerful Videos Interviews

• Collaborate with Distributed

Stakeholders

42% CSO Insights, Sales Management Optimization Study 2014

Time is Money.

>10months Time to become productive

for new sales hire

% Reps don’t make quota

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

Accelerating the Time to Revenue for New Hires

eLearning overview

eLearning on Any Device

Effective Territory & Quota

Planning

POLL:

Do you have a good idea of

what each territory’s potential

value is?

❏ Yes

❏ For some

❏ No

Typical Quota Process

• Forecast science

• Technology limitations

• Inadequate governance and process

• Over and under assignment policies

• Reliance on historical performance

• Intuition stacking

• Static hierarchies

• Rigid / forced interlock

• Opportunity disconnect from forecast

• Gaming & agent influence in goal negotiation

• Quota frequency

FORECAST & GOAL LAYERS INPUTS QUOTA QUALITY INFLUENCERS

Source: Accenture

How to Improve the Process

1. Understand your current process

2. Understand territory previous performance

3. Understand territory values

4. Create territories based on value

5. Reconcile territory plan against overall corporate goals

How Technology Can Help

• Standardization & Automation

• Data Analysis for Decision Making

• Enablement

• Tracking & Monitoring Through Data Analysis

Standardization and Automation

• Systems Can Define &

Support Standards

• Must be Flexible

• Support, Not Inhibit,

Change

• Automation

• Workflow Processes

• Communications

• Supports Rapid Change

#SalesTerritory

Data Analysis for Decision Support

Data Supported Decisions: Bring

different sets of data together to

support the decision making

process.

• Historical data to support recurring

revenue, account retention targets

• Market data – market share,

addressable market, product

penetration – to support new

business and growth targets

• Pipeline data from CRMs to support

both

• Training and coaching to match

capabilities

#SalesTerritory

Simplify and Streamline Financial Planning

Easily Allocate Products and Accounts to Territories

Coaching & Appraisals

Challenge

• Companies lack of visibility into detailed sales performance metrics to

support the sales management process

• Without complete view into performance, sales managers are unable to

understand individual and team strengths and weaknesses

• Inefficient sales coaching and limited tools has led coaching to be the

weakest competency of all front line sales managers

Why Coach Sales Reps?

Sales people who receive fewer

than two hours of coaching

per month achieve 90% of quota.

Sales people who receive at least

three hours of coaching per

month achieve 107% of quota.

Sales people who receive 2-3

hours of coaching per

month achieve 92% of quota.

POLL:

Does your company follow a

formal sales coaching

process?

❏ Yes

❏ No

❏ Every manager has their own

process

Coaching Process?

CSO Insights, Sales Management Optimization Study 2014

Top

Performers Sales Rep A

Sales Development Plan: Sales Rep A

A recipe for successful coaching and performance

management

Ingredients:

• Sales Manager

• Sales Rep

• Process

• Metrics

Directions:

• Align results with activities and skills

• Evaluate existing team

• Develop plan

• Socialize

Tips for meaningful coaching:

• Timely

• Objective

• Accurate

• Relevant

• Individualized

Dashboard Overview

Compensation & Rewards

Challenge

• Companies spend on average 11% of revenue on incentives and

commissions

• Gartner estimates that organizations that use spreadsheets and

homegrown tools to pay out commissions, overpay by 5-12% annually

• Low to no visibility to over-payments

• Complex, opaque plans lead to lost time due to disputes and shadow

accounting

#1 Desired Improvement to Compensation Program

Source: World at Work & OpenSymmetry Sales performance and Technology Survey

Things to Consider

• Simplify incentives structure

• Remove layers and clauses that cause confusion

• Saves time and money

POLL:

How confident are your sales

reps in the accuracy of their

commission payouts?

❏ Very confident, no issues

❏ Somewhat confident

❏ Not at all confident

Opportunity to Modernize: Commissions

Modernize with Compensation Management:

• Commissions calculation automated

• No need for separate tracking – track via mobile device

• Minimal need for review and corrections

• Eliminate over-payments

Gamification Techniques

Cash is Not Always King

Motivation beyond financial:

• Intrinsic motivation

• Extrinsic motivation

• Achievement motivation

Top Motivators of Sales Success

Source: Aberdeen Group

Popular Gamification Techniques

• Leaderboard for transparency and recognition

• Rewards for incentives

• Group board for group incentives

Benefits

Incent Tactical, granular behaviors with non-

monetary gamification programs

Summary

Questions?

Dan Koellhofer

Vice President, Product Management

CallidusCloud

dkoellhofer@calliduscloud.com

Jennifer Kling

Product Marketing Manager

CallidusCloud

jkling@calliduscloud.com