Sales Transformation
Sales Transformation – what and why?
We define Sales Transformation as “How cross-functional sales capabilities and competences need to be managed and developed to reach strategic targets of the company and meet changes in the industry”. Where should we focus in terms of market arenas, what is the right offering and value proposition for these markets, and how should we manage our customer relationships and sales to win in the market, are typical questions to be answered. A cross-functional sales transformation should cover everything from Sales strategy & planning, Sales management, Sales process, People & skills and Technology & tools. All major stakeholders from Business Units and Operations to Support functions and Top management should be involved in the work in order to implement the needed capabilities and enablers for transforming sales.
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Why perform a sales transformation in Industrial companies? Dynamic markets force companies to revisit their sales capabilities regularly in order to stay competitive. Typical triggers for sales transformation in industrial companies include the commoditization of the core business and emergence of new competitors, decreasing market performance as well as disruptive developments in the market. The underlying drivers behind can be both external and internal changes. Examples of external drivers include: • C ► ustomers focusing on core business and outsourcing up-stream operations
Sales Transformation
• R ► equirements to understand and measure impacts on customer’s business and financials • I► ncreased information availability and highly educated customers • G ► lobalization and consolidation of customers leading to increasing power of procurement Examples of internal drivers include: • E ► ntering into new markets arenas and segments in search of growth • M ► oving forward in the value chain and focusing on end-users • T ► ransformation to service businesses and to large scope solutions with new earnings logics • F ► ocus on customer experience and long-term relationships • D ► igital sales models, new channels and data analytics • A ► ll of which are issues that force companies to consider the status of their sales capabilities and competencies across functions and geographies.
Outcome A systematically managed sales transformation program delivers growth, profitability and customer loyalty. Furthermore, sales transformation results in improved manageability, transparency and predictability for the business. The key question is how to sustain the change. EY is a leading partner for sustainable sales transformation with proven capabilities, highest performing teams and world class references.
Sales Transformation
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EY Sales Transformation Capabilities Connect with the strategy & Identify sales transformation
Sales as growth engine
goals…
Sell more Benefit from data Sell more efficiently Sell solutions and value Sell more profitably Align with strategy Create trust and customer loyalty
…to incorporate leading sales practices, and create the roadmap of change The following table encapsulates the steps taken by EY to achieve its sales transformation objectives.
Sales strategy and planning
Sales management
Sales process
Technology and tools
Articulated and demonstrated client value proposition
Globally consistent sales methodology with universal training
Robust, multi-year account planning
Escalated the caliber of sales leadership
Globally consistent CRM tool implementation
Rigid adoption of account segmentation and investment approach
Globally consistent pipeline management and sales forecasting approach
Prioritized investment in the most critical relationships and opportunities
Executive focus on sales “tone at the top”
Customized sales analytics and reporting
Pricing framework and specialist to support account teams
Sales metrics with owners across the matrix of the business
Value-based solution development, contracting and service delivery
Sales-focused competency models for all professionals
Enterprise-wide sales enablers with focus on cross-selling2 on accounts
Refined approach to client feedback
Processes and controls to ensure adherence
Alignment of performance evaluations and reward
Marketing working with sales function and across account teams
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People and skills
Ongoing reinforcement of marketing programs Sales Transformation
EY’s Strategic Selling Architecture …apply EY’s Sales Transformation Capabilities…
Sales Effectiveness Customer centric operating models Sales strategy and planning
Sales management
Customer value proposition
Sales methodology
Customer segmentation
Pipeline management
Revenue/coverage planning
Sales forecasting / Quota Management
Pricing and profit management
Performance management
Customer experience
Key account management
Marketing
Compliance
Sales process Managing relationships Understanding customer needs Account planning Opportunity identification Opportunity qualification
People and skills Organization, structure, roles Recruitment and selection Competency management
Value delivery
MIS
CRM
Customer interaction
Talent management
Solution development Propose/contracting
Technology and tools
Incentives and reward Culture andcomms
Enterprise connectivity
Sales dashboards
Change management
EY Strategic Selling Selling Architecture is based on 100s of leading organizations. It provides an independent model against which clients can benchmark their own sales capabilities.
Sales Transformation
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We will leverage our significant sales experience with other clients to help you transform your sales capabilities
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For a global technology company, we transformed their sales capability as part of a transition from a product-focus to a customer-centric operating model
For a global document management company, we redefined the Sales operating model and identified $100m in cost saving
• The client’s technology business had a goal to be more of a strategic partner and deliver complete solutions that met their customers needs.
• Working collaboratively with the client we designed a set of new operating model design principles for a lean lowtouch indirect sales organization. We conducted an endto-end process study, identifying key pain-points resulting in high costs and / or lost revenue and identified areas for cost savings.
• This strategy represented a significant opportunity to deliver growth objectives, but also presented a challenge as their account teams were not used to implementing a more consultative approach to their customers. We delivered a training program for the account teams to enable them to: • Better connect with customers on broader-based business issues.
• Product and service offering rationalization analysis • RACI – identifying areas of complexity and opportunity
• Apply a consistent approach to diagnosing customers’ complex problems. • Communicate structured and relevant solutions to those problems. • In addition, EY provided insight and input to the key decisions needed to give on-going support for the teams when back in the field. This was to ensure a sustainable transformation was achieved.
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We performed analysis to identify the $100m cost savings in the following areas:
• Sales productivity assessment and identified areas for headcount savings • Billing and collection process improvements • We recommended key tactical and strategic actions required to ensure the high-end print solutions business was able to hit profitability targets over the next 5 years, including internal process and external market facing changes.
Sales Transformation
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At a major telecommunications provider, we increased their field sales productivity by 15% focusing on ‘right first time’
We worked with a large steel producer to deliver a detailed design of a new operating model for their pan-European Sales and Marketing function
• The client has annual revenues in excess of £100n, employing 400,000 people worldwide and has 35,000 FTEs in sales functions. Although market leader their CEO sees their business as being too division, product and geographic centric. The CEO believes commercial excellence program can deliver 3-5 points in market share.
• The client has annual revenues in excess of £12bn, employing 40,000 people worldwide. Their productcentric business suffered from poor results in Q4 FY08 and Q1 FY09, and customer experience was poor.
• EY is supporting the client in developing a common framework for Commercial Excellence across the organization, identifying shared needs for sales and marketing solutions and toolkits across the eight major business units. We are also developing an objective assessment of commercial performance across the Bus, and identifying areas focus within Commercial Excellence to inform a roadmap for 2015 and beyond. • EY is facilitating their Strategic Road mapping workshops with the top 60 Commercial Excellence leaders of the group.
• EY provided support to set up a large scale sales and marketing transformation. We worked collaboratively with the client to prioritize marketing and sales activities and develop marketing strategies aligned to the new high-level operating model. We developed a detailed operating model design with process maps and requirements for the critical processes. Working with the client we also developed a best practice account planning process, and a database that provided a single customer view allowing greater transparency across the organization. Finally, we created a detailed roadmap for change with critical path and benefits tracking tool and reporting capability.
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Interested in sales transformation? Contact us! EY’s Nordic team Ville Salomaa
Nordic Sales and Service Transformation Lead, Advisory
Mobile: +358 40 5354767 E-mail:
[email protected]
Jukka Metsäniemi
Martin Cardell Partner
Mobile: +46 703 51 77 33 E-mail:
[email protected]
EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, *each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
Senior Manager
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[email protected]
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