1.
Assessing the Sales Force
Using Capability Assessments During a
Reorganization
June 2, 2010
Presented by:
Tom Knight James Killian, Ph.D.
Partner Chief Psychologist & Director of Consulting
Evergreen Growth Advisors Chally Group Worldwide
tknight@evergreengrowthadvisors.com jameskillian@chally.com
© 2010 The Sales Management Association. All Rights Reserved.

2.
The Sales Management Association
Visit Us Online at www.salesmanagement.org
A global, cross-industry professional association
for sales operations and sales management.
Focused in providing research, case studies,
training, peer networking, and professional
development to our membership.
2 Copyright © 2010 The Sales Management Association. All rights reserved.

3.
Assessing the Sales Force
Using Capability Assessments During a
Reorganization
June 2, 2010
Presented by:
Tom Knight James Killian, Ph.D.
Partner Chief Psychologist & Director of Consulting
Evergreen Growth Advisors Chally Group Worldwide
tknight@evergreengrowthadvisors.com jameskillian@chally.com
© 2010 The Sales Management Association. All Rights Reserved.

4.
Today’s Presenters
Tom Knight and James Killian
Tom Knight
• 23 years of Sales Experience:
Sales Management and Operations, Managing Director of Professional Services,
and Sales Practice Leader
• Visiting lecturer at DePaul and Loyola University
• Expert in Sales Strategy, Organization Structure, and Execution
James H. Killian, Ph.D.
• Fourteen years of talent management experience with global and Fortune 1000
companies:
Serve as business partner with focus on producing measureable impacts for clients
• Delivered over 1000 executive coaching engagements
• Expert in leader development, personnel selection, strategic planning and talent
management
4 Copyright © 2010 The Sales Management Association. All rights reserved.

5.
Today’s Webcast
Agenda and Discussion Guide
• Situation
• Objectives
• Key Questions
• Approach to Transformation
• Measuring Impact
5 Copyright © 2010 The Sales Management Association. All rights reserved.

6.
Situation
Telecommunications Company
• Revenue Decline within Core Business of >10%
• Exploding Cost of Sales due to Productivity Decline
• Generalist Account Management Organization
• Generalist Product Specialists
• Unclear and Inconsistently Followed Sales Process
• Significant Upside Revenue with Sale of New Products
• <90 Day Time Table for Completion
6 Copyright © 2010 The Sales Management Association. All rights reserved.

7.
Objectives
• Slow the Revenue Slide – better negotiation and account
management
• Increase New Revenue – via account penetration
• Increase New-New Revenue – by competing more effectively
• Protect Profitability – carefully manage cost of sales
• Enable Productivity – make targeted investments in
specialized resources
7 Copyright © 2010 The Sales Management Association. All rights reserved.

8.
Key Questions to Answer
• What sales process, roles, and structure will enable us to win?
• Do we have the right talent to meet or organizational needs
without substantial new investments?
• What’s the best assessment format for us?
• How should we execute the assessment and slotting process?
• Who should be placed in which role?
• What are the developmental needs of individuals that we must
address?
8 Copyright © 2010 The Sales Management Association. All rights reserved.

9.
Approach to Transformation
1 Identify desired structure.
Assess full-time equivalents
2 (FTEs) based upon desired Continuous
sttructure. Process
3 Slot FTEs into the new model.
9 Copyright © 2010 The Sales Management Association. All rights reserved.

10.
Approach to Transformation
Step #1 – Identify Desired Structure
DETAILED ACTIVITIES
1. 2. 3. 4.
Sales Process Identify Key Activities Align Roles & Activities Reporting Structure
CRITICAL SUCCESS FACTORS
• Sales Process reflects Customer preferences • Level of Specialization Required
• Activities and key handoffs are clear • Adequate Sales Rep bandwidth
• Decision rights are clear (e.g. RACI) • Cost vs. opportunity is appropriate
• Buy-in from managers and field personnel • Right managerial oversight
• Adaptability for future
• Ease of Implementation
10 Copyright © 2010 The Sales Management Association. All rights reserved.

11.
Approach to Transformation
Step #1 – Identify Desired Structure
The following diagram shows exactly how roles will interact with each other across multiple the
sales process.
Illustrative Example
GAP: Professional OVERLAP: Too many
GAP: More attention should be Services and Technical faces to the customer;
applied to “Lead Gen” activities by sales resources should feedback supports this
sales resources that can have a contribute more to “Close finding.
greater impact on sales success. Sale” in order to improve
win-ratio.
11
11 Copyright © 2010 The Sales Management Association. All rights reserved.

12.
Approach to Transformation
Step #1 – Define Structural Alternatives
Telco decided to create specialized Reps where efficient coverage could occur
and high specialized Sales support roles
VP Sales
West Region East Region Channel Sales
Sales Sales Leader
Each region will have a similar structure
General or Segment Reps
Generalist
Manager Sales Specialist Solutions Support Organization
Segment Sales Specialist • Role and Product Specialties
Manager
Segment Manager
New-New Reps New Logo Reps
12 Copyright © 2010 The Sales Management Association. All rights reserved.

13.
Approach to Transformation
Step #1 – Define Structural Alternatives
National Solutions
Support Leader
Key Issue: Requisite Competence
Key Issue: Requisite Competence
-- Sales and Consulting Skills
Sales and Consulting Skills
Consulting Svcs. West Region East Head
Leader Leader
-- Technical Skills
Technical Skills
(N) Billable Presales Specialists Presales Specialists
Consultants (N) Telepresence (N) Telepresence
(N) Unified Comms (N) Unified Comms
Practice Leads (N) Wireless LAN (N) Wireless LAN
Telepresence (N) NW Accel (N) CIC/NW Accel
Unified Comm (N) Contact Ctr/CRM (N) Contact Ctr/CRM
Enhanced Network (N) SaaS (N) SaaS
(N) Mobility
Hybrid Prac
Lead/Principals Presales Sol. Cons Presales Sol. Cons
Wireless LAN (N) Telepresence (N) Telepresence
CRM (N) Unified Comms (N) Unified Comms
SaaS (N) Wireless LAN (N) Wireless LAN
Mobility (N) CIC/NW Accel (N) CIC/NW Accel
(N) Contact Ctr/CRM (N) Contact Ctr/CRM
(N) SaaS (N) SaaS
(N) Mobility
13 Copyright © 2010 The Sales Management Association. All rights reserved.

14.
Approach to Transformation
Step #2 – Assess FTEs based on Desired Model
Standard Process for Selecting/Validating Profiles
Validation Study
Developing custom position profile for Sales Roles
Step 4 - Ongoing Ongoing
Step One Step Two Step Three Deliverables Deliverables
Program Web-Based Employee
Development Web-Based
Data Analysis Assessment Database
& Assessment
Job Analysis Capability “DNA”
o Obtain employee data for o Employees complete the o Compile, analyze, and score o Candidate selection o As may be required at a
assessment process online assessment assessment results assessments later date
o Confirm position role and o Produce position profiles o Employee reports for new o Continue to calibrate
responsibilities hires
Identify predictive skills
o Identify performance data and present findings for o HR Assistant online
for full spectrum of approval assessment system
performers o Management and user
Job analysis interviews training
conducted by I/O
o Custom interview guides
Psychologists
14
14 Copyright © 2010 The Sales Management Association. All rights reserved.

15.
Approach to Transformation
Step #2 – Assess FTEs based on Desired Model
• Decide on purpose first o Clearly explain scoring methodology
• Measurement needs, budget, o Follow a standardized validation
involvement, ROI, information process
desired o Maintain a research archive
Critical Success Factors
• Thousands of options – there is no o Evaluate the performance of the
“silver bullet” but a good assessment test/assessment
should: o Have a policy on legal defense
o Demonstrate / document validity o Had limited challenge in a court of
o Be affiliated with American law
Psychological Association and Society
for Industrial/ Organizational
Psychology
o Adhere to standards of the Uniform
Guidelines on Employee Selection
Procedures
15 Copyright © 2010 The Sales Management Association. All rights reserved.

16.
Approach to Transformation
Step #2 – Assess FTEs based on Desired Model
Selecting Assessment Methodology
16 Copyright © 2010 The Sales Management Association. All rights reserved.

17.
Sales Specialty Map
17 Copyright © 2010 The Sales Management Association. All rights reserved.

18.
Chally Assessment
Accurately Predicts Success in a Role 80% of the Time
•Leverage combination of
• Mental Ability, Personality, Motivations, Job Fit and Structured Interviews
•150 granular competencies predict success in specific things people do
• Samples of how a candidate is scored against specific sales roles, specifically against those
competencies identified as predictors of success:
18 Copyright © 2010 The Sales Management Association. All rights reserved.

19.
Sales Talent Assessment
COMPOSITE SCORE :
Observable Performance = 65%
Assessment = 35%
Should leverage multiple data points –
•Historical (e.g., quota, total revenue, %profit, new logo)
•Future Needs
•Norm-based
•Mix of Quantitative & Qualitative
19 Copyright © 2010 The Sales Management Association. All rights reserved.

20.
Talent Assessment
Total Composite Scoring
< Midpoint on performance score < Midpoint on performance score > Midpoint on performance score
– AND – – OR – – AND –
< Midpoint on Chally score < Midpoint on Chally score > Midpoint on Chally score
20 Copyright © 2010 The Sales Management Association. All rights reserved.

21.
Approach to Transformation
Step #3 – Slot FTEs into New Model
Slotting Process
Generals –
Coach, Train, considered “go-
or Develop A well designed slotting process
to” people or
utilizes data about an individual’s
high potentials
potential to perform and data about
their witness-able performance
Soldiers –
consistent
performers of
above-average
Potential
to solid work
Specialists – keep
where they are
Re-purpose since they have
found a way to
make it work
“Observeables”
21 Copyright © 2010 The Sales Management Association. All rights reserved.

22.
Approach to Transformation
Step #3 – Slot FTEs into New Model
Critical Success Factors
• Governance and decision rights must be mapped
• An impartial governing board should be created to address conflicts
and make final decisions
• Use of secondary decision factors should be limited structured by
clear rules
• Detailed notes about decisions should be kept for reference and
documentation purposes
• Developmental needs must be identified and dimensional zed to
enable planning and coaching
22 Copyright © 2010 The Sales Management Association. All rights reserved.

23.
Approach to Transformation
Step #3 – Slot FTEs into New Model
YES!
Decision Based on
Composite Score
Conduct Review of
Secondary Factors – First
Decision Based on Review by M2s
Composite Score -Geographic Fit? CORE
Review Planned -Certification? TEAM
Slotting -Key to Client Relationship? FINAL
YES w/ Development! CONDUCTS
-Technical Skill that’s Needed? STAFFING
-Best Fit? – CSI/Sales FINAL
“Suitable for
Alternative? REVIEW
Slotting in
Decision
Current Role?”
Based on
No, Outlier Composite
or Another Score for CORE TEAM CONDUCTS
Decision Role? Another FINAL REVIEW
Based on Role
Composite NO! Notes:
Score CHALLY REVIEW -Composite scores for incumbents are useful
NEEDED for comparison purposes within the same job
EXIT family only.
-Potentially “unstaffed” individuals who are
CORE TEAM reviewed by the Core Team and eventually
REVIEW NEEDED staffed with enter their new role as “needing
development”.
-Chally scores will be the dominant basis of
comparison when individuals are in different job
families.
23 Copyright © 2010 The Sales Management Association. All rights reserved.

24.
Measuring Impact
While measures will vary depending on the context of
“restructuring,” they typically include:
• % of employees at on target or greater performance
• % of employees showing improved performance
• % increase in the number of performers above median
• % or # increase in employee engagement or satisfaction
• % or # increase in median performance
• % increase in Revenue or Margin
• % increase in New Account acquisition
• % increase in New Product Sales
24 Copyright © 2010 The Sales Management Association. All rights reserved.

25.
Measuring Impact, cont’d
Stop hiring
new poor
performers
Reassigning Appropriately
existing team to training your sales
correct role team
If we reassign or replace the bottom 20% with candidates that just meet or exceed “average”
competency levels, we will increase sales by a minimum of 17% to $234M
25 Copyright © 2010 The Sales Management Association. All rights reserved.

26.
Measuring Impact, cont’d
Improved Hiring & Deployment Impact
Increase Revenues and Profits by:
Success Story from Case Study:
•Typical Quotas went from
$4.5M to $8M
•Many people slotted into new
roles
•Company on track to make
plan for the first time in years
26
26 Copyright © 2010 The Sales Management Association. All rights reserved.

27.
Implementation Considerations
Need to manage all aspects of implementation and change management from communications to
readiness assessment and implementation
1. Form 2. Clarify 3. Develop 4. Prepare 5. Implement 6. Evaluate
Change Needs & Change People & Change and Monitor
Teams Challenges Plan Environment.
KEY ACTIONS
› Identify rollout teams › Establish a Return On › Develop an overall › Assess leadership’s ability › Functional rollout of › Identify sustainability
(Sales and HR, Legal) Sales Investment (ROSI change management to embrace and lead the the change plans
› Agree on roles and productivity baseline for plan change effort › Identify and › Evaluate, monitor and
responsibilities of today’s sales › Identify communication › Prepare the sponsor communicate the adjust as necessary to
teams and set organization) requirements “‘what’s in it for me?” ensure Return On Sales
› Prepare the functional
expectations › Clarify the nature of the › Identify work steps and roll out teams message Investment (ROSI)
› Identify limiting change sequence › Communicate, › De-brief with sponsor
› Align systems and
factors and risks › Understand who will be › Obtain leadership processes Communicate, and project core team
› Prepare the teams impacted and how approval of plan Communicate!
› Build tools to explain the
› Determine the talent change – assess type of
deployment sequence message, media,
(which roles to fill first) delivery, and audience
› Understand the › Train individuals on the
environment (internal change
and assess any potential
customer relationship
risk)
27
27 Copyright © 2010 The Sales Management Association. All rights reserved.

28.
Discussion
© 2010 The Sales Management Association . All Rights Reserved.