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Building a sales organization for scale 2019 07 18 (002)

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Building a sales organization for scale 2019 07 18 (002)

  1. 1. Innosphere July 18, 2019 Presented By Michael P. Fedynyshyn
  2. 2.  Michael P Fedynyshyn-michaelfedy@gmail.com ◦ Current Role-Sr. Manager, Sales Strategy, Zoom Video Communications-leads the development and delivery of a best practice environment around quota management, pipeline management, forecasting, territory planning, quarterly business reviews and GTM Planning ◦ 20 years in Sales Operations & Sales Enablement ◦ Companies Range from $10M to $15M in revenue ◦ Sales orgs from 10 reps to 1,000 reps ◦ Industry experience-UCaaS, Financial Services, Healthcare, SaaS, Big Data ◦ International Experience-Europe, Asia, Middle East, LatAM ◦ Due Diligence, M&A & Integrations
  3. 3.  General Definition  Critical Steps To Scale  Go-To-Market Strategy  Types of Sales Organizations  Fast Growing & Productive Sales Organizations  Alignment Drive Speed  Best Practices To Scale  Are you ready to Scale?  How to get started?  The End Result  Questions?
  4. 4.  Building a successful company isn’t just about growth – it’s about scale!  Growth means adding resources at the same rate that you’re adding revenue. For example, a company that gains a customer, hires more people to service them, and adds revenue at the same rate it is adding more cost. This is typical in many professional services-driven business models. While the company is technically growing, they’re not scaling.  Scale is about adding revenue at a rapid rate while adding resources at an incremental rate. Google, Salesforce.com, and Citrix are prime examples of successfully scaled businesses. They have mastered the formula of quickly adding customers while adding fewer additional resources; thus, driving consistent growth and increasing margin over time. Definition Courtesy of Mary Ford Buckley , a partner in Edison Partners, a leading growth equity investment firm.
  5. 5. 1. Evaluate and Plan-take a hard look at your business- best place to start-a detailed long-term sales forecast. 2. Do you have the money to scale? If not, what is the plan to get that $? 3. Do you have the sales structure in place to secure your long-term sales forecast? 4. Invest in Technology-automate and integrate your systems to handle the scale. 5. Find the best people or, outsource what you can on a short-term basis.
  6. 6. The first step for startups should take is to determine where they lie on the spectrum by examining the variables. Examine each one and determine whether your product lies on the left (marketing-intensive) or right (sales-intensive). To determine the answer, ask yourself questions about each variable. •What will the customer pay? •How many customers are there? •Easy sales or complex sale? •Product out of the box? •Is the sale just the start ? •Consumer or direct to business? •Focus on the cadence of the relationship; do you measure by transactions or loyalty? • What touches does the product require?
  7. 7. 1. Define The Market & Value It-TAM>SAM>SOM 2. Determine the Value Proposition 3. Define the Product Strategy 4. Discuss and Agree to your Sales Channels 5. Develop a Marketing Plan 6. Ensure you have a Customer Support/Success Plan in place 7. Evaluate, Define and Agree to “Success Important to note that Customer Acquisition Cost (CAC) is a critical metric here. CAC is the cost to convince a customer to buy a product or service. Investors will use this to analyze the scalability of a company. How much $ can be extracted from customers against the cost of extracting the $.
  8. 8. Structure Design  Geographical Organization -low cost, little duplication of sales effort  Product Sales Structure -higher costs, due to duplication of sales effort  Market-Based Structure -reps grouped by customer or industry- closer to the customer-could result in multiple reps in same customer  Functional Structure - responsibilities divided by people’s place in the sales process
  9. 9. ◼ Lift field productivity by unleashing productivity consumed by “lower value” activities ◼ Shift lower complexity activities to New Resources ◼ Extend coverage to drive incremental sales revenue (especially small accounts) ◼ Integrate multiple sales roles for improved efficiency and coverage Shift, Lift, Extend, and IntegrateSales Productivity Levers Low High Low Complexity / Value High Complexity / Value Complexity/Valueof Sale Field Sales Inside Sales Proposal Managers Field Sales Shift Lift Cost of Resource Demo Capital Executive s Selling a broader value proposition requires more selling time and more teamwork 9
  10. 10. •Data Driven •Optimize •Stay in Budget •Hire Right •Prioritize
  11. 11. 1. High performing teams rate the quality of their sales organization higher than underperforming organizations; 2. High performing teams deploy a more formal sales structure; 3. High performing teams hold their team members to a high degree of accountability; 4. High performing teams are not afraid to aggressively raise year-over-year annual quotas; and 5. High performing teams are quicker to terminate underperforming people. What Do Top Sales Teams Have in Common? They don’t make excuses!!!!!!!!!!
  12. 12. *Courtesy of CSO Insights 2019 World Class Sales Practices Study
  13. 13. One thing is clear, if you want to scale, you need to bring on the best possible team. In order to do that you need to: 1. Build an Ideal/Target Customer Profile-to ensure you are going after the right prospects; 2. Define an Ideal Rep Profile-to ensure you are hiring the right rep, not just the best rep on paper; 3. Offer the Right Sales Tools-even great reps will struggle if they are not properly enabled; 4. Build an incentive compensation plan that will attract the best talent in your industry; and 5. Provide effective leadership and coaching at all levels, especially at the sales manager level. 6. Rely on Sales Operations and Sales Enablement for insights and ramping your reps-FAST!
  14. 14. •Sales Operations is a strategic function, designed to provide a platform for sales productivity and sales performance by providing integrated methods, processes, tools, technologies and analytics, for the entire sales force and senior executives.* (A platform) •Sales Enablement is a strategic, collaborative discipline, designed to increase predictable sales results by providing consistent, scalable enablement services that allow customer facing professionals and their managers to add value to every customer interaction.* (A discipline) *Courtesy of CSO Insights 2018 Sales Operations Optimization Study and 2017 CSO Insights Sales Enablement Report
  15. 15. Sales Operations Sales Enablement  Sales Technology  CRM Administration  Forecast/Pipeline  Sales Support/Tools  Sales Metrics & Analytics  Sales Process  Job Design  Sales Compensation  Territory Alignment  Content Management  Education/Coaching  Training-Skills, Product, Process  Process Alignment to Customer Journey  Sales Tools  Account Planning  Competitive Intelligence  Integration to go live and customer success
  16. 16. Data provided from CSO Insights 2018 Sales Operations Optimization Study
  17. 17. •Time To Double Down on Scaling •Formal charter brings clarity to scaling •Priorities allows for transparency- the company knows you are serious •Protects limited resources from being pulled in away- keeps your focus on the scale
  18. 18. •Even smaller companies are dedicating Sales Ops resources •The bigger the company, the more dedication •Expecting smaller companies % to increase their investment
  19. 19. •Formal charter leads to much higher Sales Success •Priorities Are Known •Clarity descends down through the Sales ranks •Doing More With the Same
  20. 20. •300% increase in dedicated growth in 5years •80% increase from 16 to 17 •Leveling Out a Bit
  21. 21. Enablement Provides A Shopping Cart For The Sales Org That Is Looking to Scale If You Are Hitting ½ Of the Goals In The Chart, You Are Well On Your Way To Scaling
  22. 22. Win rates go up 12% and quota attainment increases by 22% with dedicated Sales enablement personnel. Increases here will help you scale!
  23. 23. •Regardless of Size- Invest In Formal Training and Coaching Programs •Programs Need To Include Sales Managers At All Levels-CRITICAL! •Formal and Dynamic programs deliver the biggest lift •Ensure There Is Collaboration Between Sales, Product & Marketing
  24. 24. •The End result of dedicated resources and coaching ss increased sales •Efficiency Up •Effectiveness Up •Sales Hits #’s •Company Hits #’s A Sales person is only as productive as the time they spend selling!
  25. 25.  Understand your market-put a # on it!  Ensure you have the $ to scale  Build Sales around the market-not the other way!  Build a bullet proof Sales & Revenue plan!  Make Sales productive immediately-move fast!  Promote best practices only!  Operationalize and measure everything!  Enable Sales Managers and all Sales Reps!  Don’t take your foot off the gas!
  26. 26. E mail me at michaelfedy@gmail.com Call me at 303.931.7766

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