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Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 1 Creating High-Performance Teams Reza Sisakhti, Ph.D. Productivity Dynamics, Inc. [email protected] A review of the World-Class Sales Competency Model and a talent strategy to master the forces that are shaping the world of selling

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Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 1

Creating High-Performance Teams

Reza Sisakhti, Ph.D.

Productivity Dynamics, Inc.

[email protected]

A review of the World-Class Sales Competency Model and a talent

strategy to master the forces that are shaping the world of selling

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 2

Topics • Introduction and context setting [5 minutes]

• Strategic talent transformation for all seasons [20 minutes]

− A systemic approach to survive troubled times and prosper in good times

• Case Examples [20 minutes]

− Case 1: Strategic talent transformation

− Case 2: Strategic sales talent transformation

− Case 3: Creating highest-performing teams

• Lessons learned over the past two decades [15 minutes]

• Insights for creating strategic talent transformation

• Critical success factors and success attributes

• Rethinking sales talent development [15 minutes]

− Trends and forces that are shaping the sales profession

− Competencies for high-performance sale teams

• Concluding remarks [5 minutes]

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 3

Goal: Experience Sharing

Types of experience: • Founder and Managing of Director of Productivity Dynamics (18 years) • Senior Fellow at Digital Equipment Corporation (16 years) • Part-time faculty at Boston University (28 years)

Sample clients:

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 4

Strategic talent transformation for all seasons: A systemic approach

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 5

Strategic talent transformation: systemic approach

Define Business Requirements

Define Talent Performance Requirements

Conduct Gap Analysis

Bu

sin

ess

-Ess

en

tial

Co

mp

ete

nci

es

Co

nd

ucive

Wo

rk Enviro

nm

en

t

Create and Deploy Multi-Faceted Solutions with Agility

Measure Effectiveness and Business Impact

Define Competency Requirements

Define Work Environment Requirements

Hire Partner Acquire

Develop Talent

Incentive system

Culture

Feedback system

Organizational structure

Process

Resources (tools)

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Talent transformation requirements analysis: flow

Competency

Requirements

Work

Environment

Requirements

Business

Requirements

Behavioral

Requirements

Business Strategy

Analysis

Performer

Analysis

Context

Analysis

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A quick example Conducting business analysis for a strategic sales

talent transformation

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A quick example

Talent transformation requirements analysis:

Requirements Description

Business Offset declining revenue stream by penetrating the market with

Cloud-based Consumption Service offerings [Metric: gain 25%

market share in cloud-based services]

Behavioral Sales force: achieve 40% of sales quota by selling Cloud-based

Consumption Services (e.g., licensing, subscription, pay per use)

vs. purchasing hardware and software)

Competency • Consultative selling competency

• Executive selling competency

• Cloud services competitive positioning

• Knowledge of new market dynamics

• Knowledge of consumption models

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Business-essential competencies:

A foundation for strategic talent transformation

Individual and group competency gap assessment

Talent

Assessment

Talent

Development

Business-essential competencies

Learning strategy definition and deployment

Measuring effectiveness and business impact

Business requirements

Business

Impact Measurement

Talent

Acquisition

Hiring and onboarding Collect and analyze data from:

Strategic thinkers and influencers

Top performers and role models

Foundation

Function Excellence

Role

Excellence

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 10

Case 1: Creating a strategic talent transformation as an integral

part of the corporation’s business transformation strategy

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 11

Case 1: Strategic talent transformation Business context and strategy

Company: A Fortune 500 company (with 36,000+ employees worldwide)

Sector: Technology Industry: Diversified electronics

Challenge/Opportunity:

• Faced survival threat due to challenges such as:

− rapidly changing technology

− long new-product introduction cycle,

− tough competition

• Needed to define and implement a business transformation strategy

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 12

Case 1: Strategic talent transformation Requirements Definition

• Identified challenges impacting the organization’s ability to achieve its

business objectives

• Defined business-aligned behaviors required to meet the challenges

• Defined business-essential competencies that fuel the desired business-

aligned behaviors

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 13

Case 1: Strategic talent transformation Business units were faced with six interrelated business challenges:

Rapid

new-product

introduction

Globalization

Rapid

growth

Tough

competition

Rapidly

changing

technology

Complex

marketplace

Business

Challenges

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 14

Case 1: Strategic talent transformation Business-aligned behaviors to overcome business challenges

Institutionalize and accelerate

the innovation process

Rapidly deploy resources for

new technologies Rapidly changing technology

Business

Challenges

Develop and retain current talent

Hire needed talent

Establish partnerships and

manage vendors

Deploy an acquisition strategy

Behaviors

Rapid

growth

Increase global presence

Deal with regulations

Develop a global workforce

Compete against established

competitors

Compete against evolving

entrepreneurial companies

Proactively predict customer

needs and market conditions

Rethink business strategies

continuously

Execute strategies with agility

Accelerate new-product

introduction cycle

Shorten the failure cycle

Align the extended

product team

Globalization

Complex

marketplace

Tough

competition

Rapid new-product introduction

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 15

Case 1: Strategic talent transformation Business-essential competencies fueling business-aligned behaviors

Rapidly changing technology

Business

Challenges

Business-Aligned Behaviors

Rapid

growth

Business acumen and market-focus skills for technology experts

Value chain acumen (e.g.., marketing, engineering, supply chain)

Rapid product-development techniques

Effective team leadership and participation

Complex product and project management

Accelerate new-product introduction cycle

Shorten the failure cycle

Align the extended product team Globalization

Complex

marketplace

Tough

competition

Rapid new-product introduction

Business-Essential Competencies

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Case 1: Strategic talent transformation: Business Value Chain

Competencies Behaviors Business Impact

Employees will:

Engage in more effective cross-

organizational collaboration

Achieve broader range of industry-

collaborative relationships

Exhibit higher work/job satisfaction and

positive work-related engagement

behaviors (collaboration, team

participation, peer leadership, or active

participation)

Create designs or action plans that

fully address marketing, business, and

supply chain requirements

Form and lead high-performance,

cross-organizational teams.

Anticipate market changes and

developments with greater accuracy

Use available technology to drive

consensus and determine actions from

a more informed position and with

agility

etc.

Organizational & Business Metrics

Higher rate of inter-departmental

projects completed within

established time and budget

parameters

Increased market-alliance

presence (e.g., number of

projects, industry

acknowledgement)

Increased employee engagement

Lower rate of employee

turnover

Improved employee satisfaction

survey results

Increased revenue and margin for

partner joint-ventures

Decrease in product time-to-

market metric

Increase in virtual corporate social

networks and decision-making

circles

etc.

Employees should be able to:

Use methods to build interpersonal

alliances across organizations

Differentiate between areas of

cooperation and competition, and

position areas of mutual benefit with

potential partners

Demonstrate market-competitive,

advanced technical and process skills

Demonstrate understanding of business

and marketing drivers

Identify value chain stakeholders, their

specific agendas, and how these

interrelate

Demonstrate understanding of cross-

organizational team leadership,

participation, and management

strategies

Apply appropriate analytical models to

interpret market dynamics and trends

Identify the advantages and procedures

for using innovative group decision-

making technology

etc.

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 17

Case 1: Strategic talent transformation Strategy and examples of concrete actions to implement the strategy:

− Defined a talent transformation strategy with components like these:

Employee-sourced innovation ideas – Employees were asked to submit innovative

ideas in an email message. Each member of the senior leadership team reviewed and

responded to 6 messages per day.

20/80 innovation idea engagement – employees were invited to spend up to one day

a week on their innovative transformation ideas in support of the business strategy in

their area of responsibility.

Senior leaders visited a dozen innovative start-up companies in their areas of

responsibility and defined a contextualized business transformation agenda based on

lessons learned.

− Implemented a corporate learning strategy as an integral part of the transformation

strategy

− Measured the effectiveness and business impact of the talent transformation

strategy

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Case 1: Strategic talent transformation Business impact Measurement Study

Goal:

Measure the impact of the transformation strategy on employee engagement and retention

Measures: Identified key items from three categories of Employee Pulse Survey:

− Alignment and Agility

− Innovation

− Pride in the company

Sampling:

A stratified random sample of employees was selected from the following groups:

− The first wave of strategy deployment (Strategy +)

− Those who did not participate in the first wave of deployment (Strategy -)

Data Collection & Analysis:

Data was obtained and analyzed for three time periods:

− Pre-Transformation Period: Year prior to deployment

− Transformation Period: Year of deployment

− Post-Transformation Period: Year after deployment

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 19

Case 2: Strategic sales talent transformation

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Case 2: Strategic sales talent transformation Business context and strategy

• Company: A Fortune 100 company (with 300,000+ employees worldwide)

• Sector: Technology Industry: Information Technology

• Challenge/Opportunity: Adapting and adopting to the “New Style of IT”, such as:

− Migrating to cloud computing

− Offering new consumption models (licensing, subscription, pay-per-use) vs. purchase of hardware or

software

− Creating vertical industry solutions

− Migration from product-centric to customer-centric selling (i.e., consultative / insight selling)

• Strategy:

− Established a talent strategy to build the “best sales force in industry”

− Defined business-essential competencies needed by all members of the account team (e.g., account

general manager, account manager, sales specialist, pre-sales consultant, partner account manager)

− Conducted competency gap assessment and identified needed capability and capacity

− Created and deployed learning roadmaps for all members of the account team

− Measured the effectiveness and business impact of the sales talent transformation program

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 21

Case 2: Strategic sales talent transformation Business Impact Measurement Study

• Methodology:

− Identify a total of 180 key accounts worldwide.

− Identify number of learning modules successfully completed by each account member

(including quizzes) and calculate average number of modules completed by each

account.

− Rank order accounts based on average number of learning modules completed by

members (Range: 33 to 0).

− Select top 50 accounts and label as High Learning Coverage (HiCov) group.

− Select bottom 50 clusters and label as Low Learning Coverage (LoCov) group.

• Metrics selected:

− Customer satisfaction (measured by Trusted Partner Index -- TPI)

− Sale performance (measured by: Quota Attainment, Revenue Growth, Share of

Wallet)

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 22

Case 2: Strategic sales talent transformation Business Impact Measurement Study, cont.

• Data was obtained for three time periods:

− Pre-Program Period: Fiscal year prior to program deployment

− Program Period: Fiscal year of deployment and utilization

− Post-Program Period: Fiscal year after program deployment

• Comparative data analysis was conducted using the following data from both

groups:

− Trusted Partner Index

− Quota Attainment

− Revenue Growth (year-over-year growth)

− Share of Wallet

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 23

Case 3: Creating “highest-performing teams”

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Case 3: Creating “highest performing teams” Business context and strategy

• Company: A professional services company (with 175,000 employees worldwide)

• Sector: Financial Services

• Challenge/Opportunity: Not just surviving fundamental changes driven by globalization and

technology, but thriving

• Strategy:

− Establishing a plan called Vision 2020 with the objective to make to the company the leading

global professional services provider

− Selecting as one of the four pillars of Vision 2020, the goal of “creating highest-performing

teams”

For these highest-performing teams, Sector Acumen was identified as a business-essential

competency.

− Establishing a talent development and enablement initiative for customer-facing consulting

teams, including consultants and partners

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 25

Case 3: Creating “highest-performing teams” Business Impact Measurement Study

• Sampling:

− A stratified random sample of 177 participants worldwide was selected (SecSim +)

− A homogeneous stratified random sample of non-program participants was selected (SecSim -)

• Pipeline metrics selected:

− Number of opportunities created/identified by consulting team

− Size of opportunities

• Data obtained for three time periods:

− Pre-Initiative Period: Quarters prior to initiative deployment

− Initiative Period: Quarter of deployment and utilization

− Post-Initiative Period: Quarters after initiative deployment

• Comparative data analysis conducted using average value of opportunities created by:

− Initiative participants (SecSim +)

− Initiative non-participants (SecSim +)

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 26

Lessons learned over the past 2 decades:

Insights for creating successful

strategic talent transformation

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 27

Critical success factors and

attributes of successful talent transformation

• Requires a strong C-suite business sponsorship and HR leadership

• Is data-driven and evidence-based

• Is business-integrated

• Is relentlessly innovative

• Is flawlessly executed

• Is superbly agile

• Contains an effective learning environment

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 28

Requires a strong C-suite business sponsorship and HR leadership

Critical success factors

• Business leaders who:

− Are actively involved

− Expect and inspect

• HR leaders who:

− Clearly articulate a future state and a roadmap for talent transformation to

transition from current to future state

− Identify Key Performance Indicators for success of the future state

− Measure the effectiveness and business impact of the future state

• Leaders at all levels who:

− Have the courage to change

− Are willing to learn and share learning

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 29

Is data-driven and evidence-based

Attributes of successful talent transformation

• Includes a solid business requirements definition component

− Avoids “paralysis of analysis”

− Leverages industry benchmarks and best practices

− Uses advanced data analytics to gain insights

− Values intuition

− Strives for clarity but deals with ambiguity effectively

• Includes a strong formative evaluation component to gain and use insights

for mid-course correction

• Includes a solid business impact measurement component to identify the

business value of the investment and to demonstrate accountability

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 30

Attributes of successful talent transformation Is business-aligned and business-integrated

Business / Mission

Neutral

Business / Mission

Supportive

Business / Mission

Aligned

Business / Mission

Integrated

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 31

Attributes of successful talent transformation

Goal: Talent transformation initiatives that are at higher levels of maturity model

Levels of talent transformation maturity model:

Levels: Examples:

L1: Business neutral Catalog-based generic onboarding programs

L2: Business supportive Onboarding programs for employees of merged companies

L3: Business aligned Onboarding program to retain talent from merged/acquired

companies

L4: Business integrated Strategic talent acquisition and retention as a integral

component of new mergers/acquisitions deals

Is business-aligned and business-integrated – A talent development example

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 32

Is relentlessly innovative

Attributes of successful talent transformation

• Uses best and smartest practices from various industries and size companies

• Demonstrates a spirit of entrepreneurship and innovation in all aspects of

talent transformation:

− Talent definition

− Talent assessment

− Talent acquisition

− Talent development

− Talent retention

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 33

Is flawlessly executed and is superbly agile

Attributes of successful talent transformation

• Principles of flawless and agile execution

Acknowledges the fact that the current state can be fatal and therefore

time is a luxury that does not exist

Uses rapid prototyping, staged deployment, and “round-trip” design

“Fails fast” and uses lessons learned for mid-course corrections

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 34

Contains an effective learning environment that keeps talent competitive

Attributes of successful talent transformation

Definition of Effective Learning Environments:

A set of well-orchestrated and integrated learning opportunities responsive to the ever-

changing needs of the organization that makes employees marketable

Components of an Effective Learning Environment

− Formal Learning

− Work-Based and work-integrated Learning & Development

− Experiential Knowledge Sharing

Attributes of an Effective Learning Environment

− Multifaceted

− Continuous

− Integrated with work

− Accommodating to learners' needs

− Business Integrated

− Rigorous and demanding

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 35

Rethinking Sales Talent development ATD World-Class Sales Competency Model

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 36

Initiative Goals

ATD World-Class Sales Competency Model

• Conduct a robust study of trends and emerging practices that are shaping the sales

profession

• Use insights gained from research to create a model for the future of selling

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 37

Initiative Approach

ATD World-Class Sales Competency Modeling

Iterative Revision of WCSCM to Final Deliverable

Phase 2: Researching, Prototyping,

and Revising

Review existing collateral

Conduct expert interviews

Begin revising the model

Final WCSCM, Report, and Deliverables

Preliminary Revised WCSCM

Phase 1: Context Discovery

and Planning

Conduct trend research

Recruit research participants

Build Phase 2 interview protocols & collateral

Phase 3: Validating, Aligning,

and Reporting

Complete validation data collection

Build and implement alignment survey

July 2014 August – November 2014 December 2014 – June 2015

22 1-on-1 validation reviews

295 participated in surveys

Research Activities:

56 1-on-1 SME interviews

9 worldwide focus groups

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 38

Key Trends Shaping Sales Practices

Market Dynamics and

Changing Customer Demands

Sales Talent

Development

Workforce Reconfiguration

Advances in

Technology

A Perfect Storm

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 39

Key Trends Shaping Sales Practices

Market Dynamics and

Changing Customer Demands

Sales Talent

Development

Workforce Reconfiguration

Advances in

Technology

A Perfect Storm

• Rise of empowered buyers

• Sales force verticalization

• Shift from “FAB” to “solution” to

“insight” selling

• Blurring lines between sales and

marketing

• Adoption of a hybrid sales model

• On-demand availability

• Omnipresent social

media

• Analytics-based

prospecting

• Multigenerational sales

and customer teams

• Globalization of teams

and customer base

• Use of “win” analytics

to gain learner insights

• Emergence of

integrated learning

environments as a

necessity

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 40

Characteristics of emerging buying teams

Attributes of successful selling

− Tech-savvy

− Educated

− Demanding

− Multi-generational

− Global

− Far advanced in their buying process when they engage sales teams

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 41

Selling team’s business-essential competencies

Attributes of successful selling

− Collaborating with and utilizing marketing resources to monitor and

establish a social media presence that potential buyers will consult

− Utilizing conventional and emerging research and analytics tools and

resources to gain an accurate understanding of the customer’s needs and

evolving opportunities in the context of their industry

− Challenging the customer’s status quo, providing insights into the

customer’s current and evolving needs, and proposing solutions that help

them succeed

− Creating value propositions that are centered on the customer’s unique

needs in the context of their industry KPIs

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 42

Selling team’s business-essential competencies (continued)

Attributes of successful selling

− Adopting and utilizing advanced mobile and virtual communication

applications to:

Extend their presence

Provide timely insights to customers

Ensure responsiveness

Enhance credibility

Respond to competitors’ claims

Drive opportunities to close without being intrusive to sales teams.

− Understanding generational differences and incorporating a global

perspective into sales planning and pursuit efforts

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 43 Entire contents © 2015 ATD. All rights reserved

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 44

Part 1: Sales Force Customer-facing, quota-carrying sales professionals

Sample roles covered:

• Sales representative:

– Account manager

– Territory manager

– Account executive

– Inside/outside sales

representative

• Sales specialist

• Presales technical consultant

• Partner/channel account manager

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 45

Part 2: Sales Management & Leadership

Sample roles covered: • Sales executive

• Sales manager

• Sales specialist manager

• Presales manager

• Partner/channel sales

manager

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 46

Part 3: Sales Enablement

Sample roles covered: • Sales recruiter

• Sales compensation planner

• Sales technology specialist

• Sales operations analyst

• Sales trainer/coach/consultant

• Sales training designer and

developer

• Sales researcher

• Sales professor/academic

• Sales enablement manager

• Sales enablement executive

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 47

Success in Selling: Developing a World-Class Sales Ecosystem

… introduces the new ATD World-Class Sales

Competency Model.

… presents timely research on key trends reshaping

today’s sales profession

… an indispensable reference for assembling a

world-class sales force,

… a comprehensive sales tool essential for all sales

professionals

… features case studies, job aids, and tools critical

for personal and organizational success

https://www.td.org/Publications/Books/Success-in-Selling

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 48

Concluding Remarks Learning takeaways

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 49

Learning takeaways

• Luxury vs. necessity business: Creating high-performance teams is not a

luxury – it is a business necessity.

• Business vs. HR orientation: HR professionals and executives need strong

business acumen and need to be business people first and HR people second.

• Business neutral vs. Business integrated: Talent transformation strategy

needs to be integrated with business strategy.

• Emergency-room (panic/reactive) vs. healthy-living (proactive/continuous):

Strategic talent transformation, like a healthy life style, is a continuous, everyday

effort that eliminates the need for reactive activities during troubled times.

Entire contents © 2015 Productivity Dynamics, Inc. All rights reserved 50

Q&A