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Boosting Sales Force Effectiveness at ITravelCO (IE Business School Case)
1. Boosting sales force effectiveness at
ITravelCO
Alex Beloshevsky
Santiago Córdoba
Eduardo Gomez Ruiz
Chaitanya Mehrotra
Marko Stanojevic
Kathryn Wellemeyer
RPU Consulting Group
2. Executive Summary
1 • Problem and Causes
2 • Project Goal and Deliverables
3 • Methodology
4 • Work Plan & Organization of Resources
5 • Our Team
3. Problem
“
”
Observation: Variation of sales performance – as indicated by market share growth slowing down
and sales force productivity – not explained by competitive position
The existing corporate
structure and procedures do
not support the sales force to
adequately respond to the
changing market environment
4. Internal Causes
People
• Do you have the right people?
• Are they trained properly?
• Are incentives aligned to attract and retain top talent?
Processes
• Are your sales processes/sales model maximizing selling time?
• Do you know your most profitable customers?
• Can you measure/compare offices’ performance?
Organizational Structure
• Is the current organizational structure serving the corporate
objective?
5. Market Environment
• TA channel declining
• Airlines finding ways to bypass GDS
• LCC growth bypassing GDS
Industrial Shift from
GDS to Direct
Model
• Persistent Underperformance
• GDS is large part of distribution
costs
Constant Cost
Cutting by the
Airlines
7. Project Deliverables
ProcessesPeople Organization
Best Practices Manual
Standardized Training Program
Competitive Incentive Program
Customer Segmentation Framework
Role Descriptions and Responsibilities
New Organizational Chart
KPIs
Pilot Implementation and Final Implementation Plan
8. Executive Summary
1 • Problem and Causes
2 • Project Goal and Deliverables
3 • Methodology
4 • Work Plan & Organization of Resources
5 • Our Team
10. Methodology Diagnosis Design Implementa on
Diagnosis Select top performing countries and key clients from each region
Large Markets
>5M bookings
Medium Markets
1-5M bookings
Small Markets
<1M bookings
Leader Europe, America Europe, Asia Europe, Africa
Equal Europe, LatAm Africa, America Asia, America
Follower Asia, America Europe, America Asia, America
Request preliminary information
Total: 6 America, 5 Europe, 4 Asia, 2 Africa, 1 LatAm
12. Methodology Diagnosis Design Implementa on
Create standard procedures (training, sales, support, metrics, incentives, etc.)
Define the organizational structure
Define steps to create a global corporate culture which can foster a sense
of belonging among the employees beyond their regional affiliations
Design clear communication strategy
Design
13. Methodology Diagnosis Design Implementa on
Host a regional meeting with regional director and GMs
Communicate and monitor the organizational buy-in
Implement the pilot – RPU will lead initial rollout, while training internal
managers to complete the final implementation
Host a global meeting with key stakeholders
Collect and analyze feedback to define final implementation plan
Select one region to rollout a pilotImplementation
14. Executive Summary
1 • Problem and Causes
2 • Project Goal and Deliverables
3 • Methodology
4 • Work Plan & Organization of Resources
5 • Our Team
15. Diagnosis
Country selection
& gather
preliminary
information
Visit 18 countries
(key offices &
clients)
Complete data
collection
Design
Define best practices
Define standard
procedures
Design a new
organizational chart
Key deliverables
Implementation
Implement pilot
program
Define full
implementation
plan
3 months 2 months 4 months
Work Plan
16. Organizational Effort
• 6 consultants (2 weeks)
e
Kick-off Meeting
- 6 Consultants
- ITravelCo Task Force
Diagnosis Phase
(3 months)
- 6 Consultants
- Key Stakeholders:
- Regional Director
- General Manager
- Sales Director
- Sales Team
- Marketing Director
- HR Manager
- IT Manager
- Customers
Design Phase
(2 months)
- 6 Consultants (2 wks)
- 2 Consultants (6 wks)
- ITravelCo Task Force
Implementation Phase
(4 months)
- 2 Consultants
- Task Force
- VP Sales
- Regional Managers
- General Managers
18. 14 years of consulting experience including
IT and Telecom
30years of experience in global companies
in industries such as Financial Services, Business
Information, Sales and Marketing
POV from both sides: client and consultant
Why RPU Consulting Group?
22. Process Metrics
Hiring Average hiring time, turnover rate
Training Training hours / employee, frequency
Sales Process Sales ($/employee), %selling time for sales force
Customer Management Customer segmentation
Incentives Performance evaluation, bonus, benchmark vs industry
Information Management Information flow time, business intelligence
Preliminary Information Requested Diagnosis Design Implementa on