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© 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies Large Sales Force Analysis from Profiles International. Copyright 2010 by Profiles International.
All rights reserved. No part of the report may be reproduced in any form or by any electronic or mechanical means including information
storage and retrieval systems without written permission from the publisher.

Printed and bound in the United States of America.


Publisher
Profiles Research Institute
Dario Priolo, Managing Director
5205 Lake Shore Drive
Waco, Texas 76710-1732

Profiles International
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Acknowledgements
President, Co-founder, Profiles International: Bud Haney
Editor-in-Chief: Dario Priolo
Managing Editor: Carrie D. Martinez
Assistant Editor and Research Associate: Christine Gallia
Assistant Editor: Jeffrey Meyers
Creative Director: Kelley Taylor
Creative Assistants: Kristen Fletcher and Colton Canava
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                                                                                                       AMPC Large Sales Force Analysis | 2
© 2010 Profiles International, Inc. All rights reserved.
Introduction to our Large Sales Force Analysis
 The Scope                                                  Profiles Research Institute initiated this study to better understand the factors that drive
                                                            sales force productivity in large organizations.

   235 Companies                                            In economics, “productivity” is a measure of output per unit of input. However,
                                                            productivity alone is not a sufficient gauge of sales force effectiveness since it ignores
   1 million Sales People                                   pricing and margins. A sales force that discounts price to the point of eliminating
                                                            profitability may win business, but this approach is not sustainable even in the short-term.
   13 Industries
                                                            For purposes of this study, we sought to account for both revenue growth and revenue
                                                            profitability, which we defined as operating income generated for each dollar of revenue
                                                            generated. These calculations required us to analyze financial data from over 230 publicly
                                                            traded companies with at least 500 sales people that we then organized into 13 different
 The Analytical Model                                       industry groups.

                                                            We then plotted these companies among their peers to identify the best in class,
Revenue Growth                                              questionable, and laggards within each industry group. We took a closer look at the best-
                                                            in-class companies to identify common practices that enable them to out-perform their
                          Best-in-Class                     peers. By understanding these practices, we hope to educate ourselves and our clients
                                                            about the practices that can help them run more efficiently and become more competitive
                                                            in the marketplace.
                          Operating Margin
Laggards                                                    This report presents our findings in two sections:
                                                            1. Comprehensive analysis of over 230 companies in 13 industry groups to identify the
                                                                best in class, questionables, and laggards.
                                                            2. A synthesis and discussion of the top factors that drive sales force productivity.




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                                                                                                                   AMPC Large Sales Force Analysis | 3
 © 2010 Profiles International, Inc. All rights reserved.
Large Sales Force Analysis: Industry Groupings


                                        Business Services           Insurance

                                        Chemicals                   Media

                                        Consumer Products           Medical Devices

                                        Electronics Manufacturing   Pharmaceuticals

                                        Financial Services          Software

                                        Industrial Manufacturing    Telecommunication Services

                                                                    Transportation




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                                                                            AMPC Large Sales Force Analysis | 4
© 2010 Profiles International, Inc. All rights reserved.
Large Sales Force Analysis: List of Companies




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© 2010 Profiles International, Inc. All rights reserved.   AMPC Large Sales Force Analysis | 5
Business Services                                            Consumer Products                  Chemicals




                                                                                                              Insurance
                                                                  Medical Devices


Electronics Manufacturing


                                                                                                      Pharmaceutical

Industrial Manufacturing



Financial Services                                                   Media                                      Software




                                                           Telecommunications Services                  Transportation



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 ©2010 Profiles International, Inc. All rights reserved.
                                                                                         AMPC Large Sales Force Analysis | 6
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Business Services

                                           Revenue Growth
                                                                                                                                   RRD
                                                                                                                                   NSIT
                                                                                                                                   IM
                                                                                                                                   CGX
                                                     10%
                                                                       Best in Class                                               OMX
                                                                       - Iron Mountain Incorporated                                OMC
                                                                       - Sykes Enterprises Incorporated                            UIS
                                                                       - UniFirst Corporation                                      WM
                                                                                                                                   PBI
                                                                                                                                   IT
Operating Margin                                                                                                                   KFRC
                                                                                                                                   DLX
               -10%                  -5%                     0%   5%        10%            15%              20%             25%    TECD
                                                                                                                                   IBM
                                                                                                                                   STEI
                                                      -5%                                                                          CTAS
                                                                                                                                   EFX
                                                                                                                                   USTR
                                                                                                                                   PAYX
                                                                                                                                   ABM
                                                                                                                                   DNB
                                                                                                                                   IRM
                                                                                                                                   UNF
                                                                                                                                   CVG
                                                                                                                                   SYKE
                                                                                                     Circle Diameter Represents
                                                                                                     Relative Sales Force Size     HPY
                                                    -20%                                                                           APAC
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                                                                                                          AMPC Large Sales Force Analysis | 7
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

                Industry: Chemicals

                                          Revenue Growth 10%


                                                                5%
                                                                                Best in Class
                                                                                - Ecolab
                                                                0%                                             DD
                -10%                         -5%                      0%   5%      10%                   15%
                                                                                                               NLC
                                                                                                               ARG
                                                                -5%
                                                                                                               ASH
Operating Margin                                                                                               APD
                                                               -10%                                            PPG
                                                                                                               SHW
                                                                                                               VAL
                                                               -15%
                                                                                                               POL
                                                                                                               DOW

                                                               -20%                                            ECL




                                                               -25%


                                                                                 Circle Diameter Represents
                                                               -30%              Relative Sales Force Size


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                                                                                            AMPC Large Sales Force Analysis | 8
    © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Consumer Products

                                    10%
                               Revenue Growth                                                                                     NWL

                                                                                                                                  AOS
                                                             Best in Class
                                                                                                                                  DELL
                                                             - Altria Group, Inc.
                                                             - National Beverage Corp.                                            SEE
                                          5%
                                                                                                                                  DF

                                                                                                                                  WH
                                                                                                                                  R
                                                                                                                                  GPC
Operating Margin                                                                                                                  STZ
                                          0%
                     -5%                        0%             5%               10%      15%            20%                 25%   PTV

                                                                                                                                  CAG

                                                                                                                                  REV
                                          -5%
                                                                                                                                  PVH

                                                                                                                                  HRL

                                                                                                                                  HPQ

                                        -10%                                                                                      KO

                                                                                                                                  JNJ

                                                                                                                                  K

                                                                                                                                  AYI
                                        -15%                                                   Circle Diameter Represents
                                                                                               Relative Sales Force Size
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                                                                                                    AMPC Large Sales Force Analysis | 9
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Electronics Manufacturing
                                                 Revenue Growth
                                 10%
                                                                     Best in Class
                                                                     - QUALCOMM Incorporated
                                  5%




                                  0%
Operating Margin
             -5%                        0%               5%   10%   15%       20%        25%         30%            35%       XIDE
                                                                                                                              TXN
                                  -5%                                                                                         SWK
                                                                                                                              ARW
                                                                                                                              INTC
                                -10%                                                                                          EMC
                                                                                                                              WAT
                                                                                                                              QCOM
                                -15%




                                -20%


                                                                                                 Circle Diameter Represents
                                                                                                 Relative Sales Force Size
                                -25%
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                                                                                               AMPC Large Sales Force Analysis | 10
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Financial Services
                                Revenue Growth
                                     40%
                                                                  Best in Class
                                                                  - Bank of America
                                                                  - Fifth Third Bancorp
                                                                                                                           LM
                                                                  - JPMorgan Chase & Co.
                                     30%
                                                                  - Piper Jaffray Companies                                SCHW
                                                                                                                           AXP
                                                                                                                           AMTD
                                     20%                                                                                   SWS
                                                                                                                           FMER
                                                                                                                           COF
                                     10%                                                                                   KEY
                                                                                                                           HRB

Operating Margin                                                                                                           GS
                                      0%                                                                                   USB
                     -5%                                     5%           15%                            25%               FCNCA
                                                                                                                           ERIE

                                    -10%                                                                                   AMP
                                                                                                                           FITB
                                                                                                                           JPM
                                                                                                                           BAC
                                    -20%
                                                                                                                           PJC


                                                                                          Circle Diameter Represents
                                    -30%
                                                                                          Relative Sales Force Size
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                                                                                                 AMPC Large Sales Force Analysis | 11
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Industrial Manufacturing
                              Revenue Growth                                                                           RYL
                                          5%
                                                                                                                       PRST
                                                                   Best in Class                                       LEA
                                                                   - Northrop Grumman Corporation                      URI
                                                                                                                       RRR
                                                    0%                                                                 TXT
                                                                                                                       JCI
                   -5%                                   0%   5%                   10%                           15%   B
Operating Margin                                                                                                       TECUA
                                                                                                                       ROK
                                                   -5%                                                                 ETN
                                                                                                                       TRW
                                                                                                                       LAWS
                                                                                                                       TEN
                                                                                                                       AIN
                                                  -10%                                                                 AXE
                                                                                                                       DE
                                                                                                                       OC
                                                                                                                       FAST
                                                                                                                       SPW
                                                  -15%                                                                 GT
                                                                                                                       HON
                                                                                                                       SNA
                                                                                                                       TNC
                                                                                                                       GE
                                                  -20%                                                                 WPP
                                                                                                                       ITW
                                                                                                                       ADM
                                                                                                                       UTX
                                                                                                                       GWW
                                                  -25%                                                                 MWV
                                                                                                                       IP
                                                                                                                       KMT
                                                                                    Circle Diameter Represents         PH
                                                                                    Relative Sales Force Size          AIT
                                                  -30%
                                                                                                                       NOC
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                                                                                         AMPC Large Sales Force Analysis | 12
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

              Industry: Insurance

                                   Revenue Growth                                                                 PFG
                                                                                                                  SIGI
                                            35%                                                                   CI
                                                                                                                  TMK
                                                                                                                  CB
                                                                                                                  HGIC
                                            25%                                                                   AON
                                                                        Best in Class                             AFG
                                                                                                                  TRV
                                                                        - AFLAC
                                                                                                                  CINF
                                                                        - Mercury General Corporation
                                                                                                                  CNO
                                            15%                         -The Progressive Corporation              BRK.A
                                                                        - Protective Life Corporation             THG
                                                                                                                  UAM
                                                                                                                  L
                                             5%                                                                   HUM
Operating Margin                                                                                                  UTR
                                                                                                                  UNH
                                                                                                                  CNA
                   -5%                            0%         5%   10%               15%                     20%
                                                                                                                  EMCI
                                            -5%                                                                   ALL
                                                                                                                  STC
                                                                                                                  AFL
                                                                                                                  HMN
                                           -15%                                                                   AET
                                                                                                                  PGR
                                                                                                                  ANAT
                                                                                                                  PL
                                                                                                                  MCY
                                           -25%                                     Circle Diameter Represents
                                                                                                                  FNF
                                                                                    Relative Sales Force Size
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                                                                                    AMPC Large Sales Force Analysis | 13
  © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

               Industry: Media

                                                                   Revenue Growth


                                              15%
                                                                        Best in Class
                                                                        - Comcast Corporation
                                                                        - Google



                                               5%                                                                             CMCSA
                                                                                                                              VIA
                                                                                                                              HHS

                   -10%            -5%              0%        5%         10%        15%     20%   25%      30%        35%     ACXM
                                                                                                                              GOOG
Operating Margin
                                              -5%
                                                                                                                              GCI
                                                                                                                              LAMR
                                                                                                                              DIS



                                             -15%




                                                                                                                       Circle Diameter Represents
                                             -25%                                                                      Relative Sales Force Size

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                                                                                                        AMPC Large Sales Force Analysis | 14
   © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

             Industry: Medical Devices
                                             Revenue Growth
                                                                  15%
                                                                                               Best in Class
                                                                                               - Medtronic, Inc.
                                                                                               - St. Jude Medical, Inc.
                                                                  10%


                                                                                                                                      XRAY
                                                                                                                                      STJ
                                                                   5%
                                                                                                                                      MMM
                                                                                                                                      BSX
                                                                                                                                      SYK
                                                                   0%                                                                 PLL
            -20%                 -15%          -10%         -5%          0%   5%   10%   15%          20%        25%         30%      STE
Operating Margin
                                                                                                                                      ZMH
                                                                                                                                      MDT
                                                                  -5%
                                                                                                                                      BEC
                                                                                                                                      TMO


                                                                  -10%



                                                                                                         Circle Diameter Represents
                                                                                                         Relative Sales Force Size
                                                                  -15%
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                                                                                                       AMPC Large Sales Force Analysis | 15
 © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

            Industry: Pharmaceutical

            Revenue Growth                20%

                                                                                                                     CAH

                                                                                                                     MYL

                                          15%                         Best in Class                                  ABC
                                                                      - Forest Laboratories, Inc.
                                                                                                                     HSIC
                                                                      - Perrigo Company
                                                                                                                     AGN

                                          10%                                                                        PFE

                                                                                                                     ABT

                                                                                                                     PSSI

                                           5%                                                                        BIIB

                                                                                                                     FRX


Operating Margin                                                                                                     LLY

                                           0%                                                                        WPI
                       -5%                      0%         5%   10%    15%              20%                25%
                                                                                                                     PRGO

                                                                                                                     KG

                                          -5%                                           Circle Diameter Represents
                                                                                        Relative Sales Force Size
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                                                                                    AMPC Large Sales Force Analysis | 16
© 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

             Industry: Software
                                                      Revenue Growth
                                          40%
                                                                                     Best in Class
                                                                                     - Cisco Systems, Inc.
                                                                                     - Oracle Corporation                         QADI
                                          30%                                        - Western Digital Corporation
                                                                                                                                  CPWR
                                                                                                                                  XRX
                                                                                                                                  NCR
                                          20%                                                                                     PMTC
                                                                                                                                  PRGS
                                                                                                                                  MCRS
                                          10%                                                                                     SNPS
                                                                                                                                  CA

Operating Margin                                                                                                                  BMC
                                            0%                                                                                    MSTR
                  -10%           -5%             0%         5%     10%   15%   20%         25%       30%        35%         40%   MSFT
                                                                                                                                  VRSN
                                          -10%                                                                                    INTU
                                                                                                                                  CSCO
                                                                                                                                  ORCL

                                          -20%                                                                                    NTAP
                                                                                                                                  WDC


                                                                                                   Circle Diameter Represents
                                          -30%
                                                                                                   Relative Sales Force Size
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                                                                                                       AMPC Large Sales Force Analysis | 17
 © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

             Industry: Telecommunications Services

                                               Revenue Growth     15%                    Best in Class
                                                                                         - Verizon Communications



                                                                  10%

                                                                                                                            LVLT
                                                                                                                            TLAB
                                                                                                                            SATS
                                                                   5%
Operating Margin                                                                                                            PLCM
                                                                                                                            S
                                                                                                                            IDT
                                                                   0%                                                       Q
                   -20%            -15%            -10%     -5%          0%   5%   10%     15%         20%         25%      VCI
                                                                                                                            PGI
                                                                                                                            T
                                                                  -5%
                                                                                                                            USM
                                                                                                                            PAET
                                                                                                                            VZ

                                                                  -10%




                                                                  -15%                                 Circle Diameter Represents
                                                                                                       Relative Sales Force Size
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                                                                                                 AMPC Large Sales Force Analysis | 18
 © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

             Industry: Transportation
                                                             5%
                                           Revenue Growth               Best in Class
                                                                        - ABF Freight System
                                                                        - FedEx                                        LSTR

                                                             0%
Operating Margin
             -10%                               -5%                0%     5%               10%                   15%   UNP


                                                             -5%                                                       ABFS


                                                                                                                       LCC
                                                            -10%

                                                                                                                       UPS


                                                            -15%
                                                                                                                       CHRW


                                                                                                                       ALK
                                                            -20%

                                                                                                                       LUV

                                                            -25%
                                                                                                                       JBLU


                                                                                                                       FDX
                                                            -30%                          Circle Diameter Represents
                                                                                          Relative Sales Force Size
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                                                                                               AMPC Large Sales Force Analysis | 19
 © 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

    Profiles International, Inc.

Who We Are                                                 Contact Us
Profiles International helps organizations worldwide       Contact us for a complimentary, risk-free offer to
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Through our comprehensive employment assessments           Companies who work with us gain a competitive
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people and managing them to their full potential.          and preferences, and attitudes toward key workplace
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                                                                                  AMPC Large Sales Force Analysis | 20
© 2010 Profiles International, Inc. All rights reserved.
Overview of Findings:
                                                           America’s Most Productive Companies Large Sales Force Analysis

                                                           After compiling and analyzing the data to identify Best-in-Class sales organizations, we
                                                           conducted follow-up research on a number of these companies. This consisted of online
                                                           literature review and interviews with select executives.

                                                           Our research helped us identify a number of best practices that we believe explain
                                                           outstanding sales force productivity. These six Key Differentiators of Excellence are
                                                           listed below:

                                                           1.   Extreme customer and market focus
                                                           2.   Alignment of products, services, and solutions with customers’ high-priority needs
                                                           3.   Alignment of resources to build customer loyalty
                                                           4.   Alignment of sales process with customers’ buying processes
                                                           5.   Alignment of sales roles and capabilities with customers’ buying processes
                                                           6.   Alignment of time utilization and territories with market potential

                                                           This report expounds upon each of these six key differentiators of excellence and offers
                                                           insight and best practice recommendations for increased sales force effectiveness.




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                                                                                                              AMPC Large Sales Force Analysis | 21
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

  1. Extreme customer and market focus

 Top Reasons Sales Close                                   Regardless of the economy, successful sales organizations continually invest in
                                                           learning about their customers’ needs and training to sell to these needs.

                                                           Sales forces at America’s Most Productive Companies distinguish themselves from peer companies
                                                           by taking deliberate measures to align their sales organizations and resources to best meet their
                                                           customers’ needs.

                                                           For example, these organizations are more likely than their peer companies to:

                                                           •   Use 360-degree feedback and other tools to help sales managers better understand their teams’
                                                               internal capabilities and assign the appropriate resources to the right projects

                                                           •   Ask customers and prospects in-depth questions to gain a thorough understanding of their
                                                               businesses before making sales presentations

   Nurtured Relationships                                  •   Train their salespeople to offer unique solutions to customer problems rather than a one-size-
                                                               fits-all approach
   Support/Service after the sale
   Product Quality                                         These activities help them make larger sales; accelerate the sales cycle; and optimize selling time,
                                                           activities, and staffing levels. All of this helps drive sales force productivity to higher levels.
   Branding
   Referals                                                Our research suggests that America’s Most Productive Companies provide sales training as well as
   Sales Process                                           product training to their sales teams regardless of the economy. Peer organizations, on the other
                                                           hand, are more likely to cut back on sales training when the economy is bad. According to a survey
   Price                                                   respondent, “We see a down economy as an opportunity to learn more about our team members
   Availability                                            and how they can make a unique contribution.”
   ROI
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                                                                                                                          AMPC Large Sales Force Analysis | 22
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

 2. Alignment of products, services, and solutions with customers’ high-priority needs


                                                            Really understanding the most pressing needs of the customer and providing solutions




             “
                                                            that satisfy these needs and deliver value is essential to sales success.

                                                            Sales leaders at America’s Most Productive Companies understand that while extreme “customer
                                                            focus” is essential, it’s not by any means sufficient. They transcend typical “features and benefits”
                                                            of the products they sell to grasp what is truly important to the customer. These best-in-class sales
Identify a critical                                         professionals:

problem facing your                                         •   Know their customers’ priorities, how the products and services they sell help to satisfy their
customer – one so                                               customers’ needs, and how much value customers place on having their needs met

ominous that, even                                          •   Realize that the more complex and expensive the problem, the more rigorously they will evaluate
in a downturn, it will                                          and scrutinize potential solutions – especially B2B buyers

find the money to                                           •   Appreciate that needs and priorities change over time, so it is essential to make the connection
address it.                                                     between their solution and how you can help them not only long-term, but today as well.

                 Harvard Business Review                    High value doesn’t mean low price. In fact it may command a premium when the benefits are so




            ”
                             March 2010                     significant that price is no longer such a meaningful factor. This pricing power helps bolster sales and
                                                            profitability, and increases sales force productivity.

                                                            A survey respondent from one of America’s Most Productive Companies told us that his was the first
                                                            sales team to take the time to find out about their customers’ top priorities. “We used to be more
                                                            concerned with our products’ features than with our customers’ needs, but when we turned that
                                                            upside down, we saw customers respond like never before.”


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                                                                                                                           AMPC Large Sales Force Analysis | 23
 © 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

 3. Alignment of resources to build customer loyalty

                                                       Don’t just live and breathe your products—live and breathe your customers’ business.

                                                       Nearly everyone knows that it costs a lot more money to gain a new customer than it does to keep an
                                                       existing one. Yet, in their day-to-day operations, many sales organizations seem to forget that axiom.
                                                       Their sales professionals work leads, make cold calls, respond to RFPs, pitch their products and services,
                                                       and do whatever it takes to make a sale (including discounting). They build customer bases, but they
                                                       forget what it takes to maintain customer loyalty – and all too often they shoot themselves in the foot.

                                                       What do America’s Most Productive Companies do to ensure repeat business and customer loyalty?
                                                       Our survey suggests that they:

                                                       •    Exceed customer expectations by knowing their customers’ businesses better than the competition
                                                            does, by being proactive in offering solutions that address their customers’ needs, and by
                                                            communicating with customers in a timely, effective manner
Profiles International’s report, Seven
Factors for Building Extreme Customer
Loyalty, goes beyond simply satisfying                 •    Put in place an infrastructure that ensures customer support either through technology or face-to-
customers to protecting and growing                         face interaction; sales forces at America’s Most Productive Companies do a better job
strategic accounts with:                                    communicating with their customers, knowing their customers’ needs, and proactively addressing
                                                            them
1.   Emotional Dependence
2.   Structural Dependence                             •    Establish and monitor key “loyalty indicators”
3.   Business Dependence
4.   Satisfaction                                      America’s Most Productive Companies go beyond basic customer satisfaction. Especially in the B2B
5.   Performance
                                                       space, they make their products and services integral parts of how customers run their businesses. For
6.   Economic Value Proposition
                                                       example, a survey respondent told us, “We don’t just live and breathe our products – we live and
7.   Alignment and Fit
                                                       breathe our customers’ operations. They know that, and they thank us by returning year after year.”


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                                                                                                                       AMPC Large Sales Force Analysis | 24
 © 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

 4. Alignment of sales process with customers’ buying processes

                                                    Today’s buyers are rigorous and deliberate about their buying decisions.

                                                    Rather than imposing a one-size-fits-all sales process on hapless prospects, America’s Most Productive
                                                    Companies sell the way their customers want to buy. In today’s economy, consumers are spending
                                                    wisely. They believe they have leverage with sellers, and in many cases they do! So they dictate the
                                                    process and they are rigorous and deliberate about their buying decisions.

                                                    What’s more, buyers are using social networks to learn about solutions, vendors, and pricing; there is
                                                    little opportunity to manipulate or glad-hand someone into buying. That’s why America’s Most
                                                    Productive Companies:

                                                    •   Understand how customers make buying decisions and align their selling process accordingly

                                                    •   Use technology to help the sales team track their progress through the customer’s buying process

                                                    •   Use integrated lead generation and CRM systems to improve revenue predictability

                                                    •   Produce effective reports to give sales managers pipeline visibility so they can hold sales people
Key Buying Influencers:                                 accountable and also provide better coaching and resources to support qualified opportunities
     1. Trust
     2. Value                                       Sales organizations at America’s Most Productive Companies understand how customers make buying
                                                    decisions – and they align their selling processes accordingly. They don’t make simple sales complex and
     3. Resources                                   they don’t make complex sales simple.

                                                    For example, one respondent from a best-in-class company commented, “If a solution has broad impact
                                                    and requires input from multiple parties to identify the problem, scope a solution, and make a buying
                                                    decision, that means our team must be prepared for a longer sales cycle and a much more strategic
                                                    approach to making the sale.”
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                                                                                                                       AMPC Large Sales Force Analysis | 25
 © 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

5. Alignment of sales roles and capabilities with customers’ buying processes

                                                      Best-in-class organizations get to know their customers’ businesses on a granular level
                                                      and develop specialized sales roles that align with how customers buy.

                                                      Aligning the selling process with the customer’s buying process requires specialization of sales roles and
                                                      capabilities. For example, a successful new business development executive (the classic “hunter”)
                                                      probably has different skills, interests, and core behaviors than a key account manager (the classic
                                                      “farmer”), or a sales engineer (the classic “geek”).

                                                      In our work with some of America’s Most Productive Companies, we find time and time again, that these
                                                      best-in-class organizations make an effort to get to know their customers’ businesses on a granular level
                                                      and develop specialized sales roles that align with how customers buy. Survey results suggest that sales
                                                      forces at America’s Most Productive Companies:

                                                      •    Clearly define the purpose of the sales role and know what makes someone successful in that role

                                                      •    Determine who fits best into each role and then either develop or hire people for each specific job;
                                                           since cultural issues and other factors can influence who “fits” into an organization, this work is often
                                                           customized

                                                      •    Pinpoint the skills and developmental needs of individual sales representatives

                                                      A survey respondent from one of America’s Most Productive Companies told us, “We make sure our reps
                                                      fit in with the customers they service. We know our people – and we really know our customers.”

                                                      For most adults, it is easier to acquire new skills than to change core behaviors. That’s why many of
                                                      America’s Most Productive Companies hire people based on their behaviors – and then train the skills.
                                                      At these organizations people are passionate and capable.

www.americasmostproductive.com
                                                                                                                        AMPC Large Sales Force Analysis | 26
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

 6. Alignment of time utilization and territories with market potential

                                                           The only thing constant is change. Last year’s prime territory could be this year’s
                                                           wasteland.

                                                           Sales leaders at America’s Most Productive Companies tell us that they don’t shy away from tough
                                                           decisions such as when to walk away from a deal, when to let go of a territory that lacks market
                                                           potential, or when to invest in extra resources.

                                                           No one likes abandoning a customer, but in some cases, especially when demographics and industry
                                                           trends have changed so much that a certain territory no longer has promise, continuing to service it
                                                           can be a fool’s errand.

                                                           America’s Most Productive Companies monitor their sales forces’ time and analyze their territories
                                                           to ensure that:

                                                           •   There aren’t too many or too few reps assigned

                                                           •   They are up-to-date and ready to act based on demographic trends, business news, zoning
                                                               issues, and “the local buzz”

                                                           •   They maintain proper focus on the right selling activities, in the right quantities, at the right
                                                               conversion rates

                                                           These sales leaders don’t operate in a vacuum. They develop, track, and adjust their “sales
                                                           formulas” as needed. One survey respondent told us, “The only thing that remains constant around
                                                           here is change. That’s why we are careful about how we allot our selling time. Last year’s prime
                                                           territory could be this year’s wasteland. And if that’s the case, I need to know!”


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                                                                                                                            AMPC Large Sales Force Analysis | 27
© 2010 Profiles International, Inc. All rights reserved.
Summary of Lessons Learned:
                                                 Six Key Differentiators of Excellence
                                                 of America’s Most Productive Companies
                                                  1. Extreme customer and market focus

                                                  2. Alignment of products, services, and solutions with customers’ high-priority needs

                                                  3. Alignment of resources to build customer loyalty

                                                  4. Alignment of sales process with customers’ buying processes

                                                  5. Alignment of sales roles and capabilities with customers’ buying processes

                                                  6. Alignment of time utilization and territories with market potential




www.americasmostproductive.com
                                                                                                           AMPC Large Sales Force Analysis | 28
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Overview of our assessments and solutions

                               Your Business Objective                                                     Our Popular Solutions
                 High-level Strategic Workforce Management
                 Identifying high-potential employees and managers                 PXT                                CP360                         PSA   CSP
                 Strategic workforce and succession planning                       PXT                          PPI   CP360                         PSA   CSP
                 Restructuring, reorganizing, and downsizing                       PXT                          PPI            PMF      WES         PSA   CSP   PLP
                 Post-merger integration of organizations                          PXT                          PPI            PMF      WES         PSA   CSP   PLP
                 Everyday Workforce Management
                 Basic pre-employment screening                           SOS                 PST
                 Screening, interviewing, and selecting job candidates             PXT        PST         EBC                                       PSA   CSP
                 Onboarding new employees                                          PXT                          PPI            PMF
                 Improving employee productivity and work quality                  PXT                          PPI                     WES
                 Improving employee motivation and communication                                                PPI            PMF      WES
                 Resolving conflict between coworkers                                                           PPI
                 Selecting and managing teams                                                                   PPI
                 Evaluating management effectiveness                               PXT                          PPI   CP360             WES
                 Prioritizing management development needs                                                            CP360             WES
                 Sales and Customer-facing Workforce Management
                 Screening, interviewing, and selecting job candidates                        PST         EBC                                       PSA   CSP
                 Retaining and growing customers and accounts                                                                                       PSA   CSP   PLP
                 Improving sales performance                                                                    PPI   CP360    PMF      WES         PSA         PLP

                                                                 Legend    SOS    Step One Survey                     PMF     Profiles Managerial Fit
                                                                           PXT    ProfileXT                           WES     Workplace Engagement Survey
                                                                           PST    Profiles Skills Tests               PSA     Profiles Sales Assessment
                                                                           EBC    Employee Background Checks          CSP     Customer Service Profile
                                                                           PPI    Profiles Performance Indicator      PLP     Profiles LoyaltyPro
                                                                          CP360   CheckPoint 360



www.americasmostproductive.com
                                                                                                                                       AMPC Large Sales Force Analysis | 29
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions

                                                           Profiles Sales Assessment™ (PSA)
                                                           The Profiles Sales Assessment (PSA) measures how well a person fits specific sales jobs in your
                                                           organization. It is used primarily for selecting, onboarding, and managing sales people and account
                                                           managers.

                                                           The “job modeling” feature of the PSA is unique and can be customized by company, sales position,
                                                           department, manager, geography, or any combination of these factors. This enables you to evaluate
                                                           an individual relative to the qualities required to perform successfully in a specific sales job in your
                                                           organization. It also predicts on-the-job performance in seven critical sales behaviors: Prospecting,
                                                           Call Reluctance, Closing the Sale, Self-starting, Working with a Team, Building and Maintaining
                                                           Relationships, and Compensation Preference.




                                                           Customer Service Profile™ (CSP)
                                                           The Customer Service Profile (CSP) measures how well a person fits specific customer service jobs in
                                                           your organization. It is used primarily for selecting, onboarding, and managing customer service
                                                           employees.

                                                           The CSP also looks at what your current and future employees believe is a high level of customer
                                                           service, while at the same time showing where they align (or not) with the company’s perspective.
                                                           We have a general industry version of this assessment as well as vertical specialties in hospitality,
                                                           healthcare, financial services, and retail.



www.americasmostproductive.com
                                                                                                                          AMPC Large Sales Force Analysis | 30
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions


                                                           Step One Survey II® (SOSII)
                                                           The SOSII is a brief pre-hire assessment that measures an individual’s basic work-related values. It is
                                                           used primarily as a screening tool early in the candidate selection process.

                                                           This assessment provides valid insight into an applicant’s work ethic, reliability, integrity, propensity
                                                           for substance abuse, and attitudes toward theft — including property, data, and time.




                                                           ProfileXT® (PXT)
                                                           The PXT assessment measures how well an individual fits specific jobs in your organization. The “job
                                                           matching” feature of the PXT is unique, and it enables you to evaluate an individual relative to the
                                                           qualities required to successfully perform in a specific job. It is used throughout the employee life
                                                           cycle for selection, onboarding, managing, and strategic workforce planning.

                                                           This assessment reveals consistent, in-depth, objective insight into an individual's thinking and
                                                           reasoning style, relevant behavioral traits, occupational interests, and match to specific jobs in your
                                                           organization. It helps your managers interview and select people who have the highest probability
                                                           of being successful in a role, and provides practical recommendations for coaching them to
                                                           maximum performance. It also gives your organization consistent language and metrics to support
                                                           strategic workforce and succession planning, talent management, and reorganization efforts.


www.americasmostproductive.com
                                                                                                                           AMPC Large Sales Force Analysis | 31
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions


                                                    Profiles Performance Indicator™ (PPI)
                                                    The Profiles Performance Indicator (PPI) is a DISC-type assessment that reveals aspects of an individual's
                                                    personality that could impact their fit with their manager, coworkers and team, and their job
                                                    performance. It is used primarily for motivating and coaching employees, and resolving post-hire conflict
                                                    and performance issues.

                                                    The PPI specifically measures an individual's motivational intensity and behaviors related to productivity,
                                                    quality of work, initiative, teamwork, problem solving, and adapting to change as well as response to
                                                    conflict, stress, and frustration. The output from this assessment serves as an “operator's manual” for an
                                                    employee, which helps managers better motivate, coach, and communicate with the employee. It also
                                                    helps to predict and minimize conflict among coworkers, and it provides crucial information for improving
                                                    team selection and performance.

                                                    A powerful feature of the PPI is the Team Analysis Report, designed to help managers form new teams,
                                                    reduce team conflict, improve team communication, improve their ability to anticipate problems, and
                                                    enhance their team leadership skills.

                                                    It helps evaluate overall team balance, strengths, and weaknesses as well as team members’ personality
                                                    characteristics along 12 key factors: control, composure, social influence, analytical thinking, patience,
                                                    results orientation, precision, expressiveness, ambition, teamwork, positive expectancy, and quality
                                                    orientation. It also provides team leaders with practical recommendations and action steps to take in
                                                    order to succeed in their jobs.




www.americasmostproductive.com
                                                                                                                     AMPC Large Sales Force Analysis | 32
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions


                                                  CheckPoint 360°™
                                                  The CheckPoint Management System is a 360-degree assessment. It is used primarily to evaluate the
                                                  effectiveness of your managers and leaders. This assessment combines feedback from direct reports,
                                                  peers, supervisors, and even customers with a personalized program for developing specific leadership
                                                  skills based on that feedback. This process highlights a manager’s job performance in eight universal
                                                  management competencies: communication, leadership, adaptability, relationships, task management,
                                                  production, development of others, and personal development.

                                                  The CheckPoint 360 helps managers identify and prioritize their own development opportunities. And it
                                                  helps the organization to better focus management training and development investments; proactively
                                                  uncover misaligned priorities between senior executives and front-line managers; and surface
                                                  management issues that could lead to low employee productivity, morale, job-satisfaction, and
                                                  increased turnover.




                                                  Profiles Managerial Fit ™ (PMF)
                                                  People typically don’t quit their companies, they quit their bosses. Profiles Managerial Fit (PMF)
                                                  measures critical aspects of compatibility between a manager and their employees. This report offers
                                                  an in-depth look at one’s approach to learning, as well as six critical dimensions of compatibility with
                                                  their manager: self-assurance, conformity, optimism, decisiveness, self-reliance, and objectivity.

                                                  Managers use this information for adapting their styles in order to get the most from each employee;
                                                  improve communication; increase engagement, satisfaction, and productivity; and reduce employee
                                                  turnover.
www.americasmostproductive.com
                                                                                                                    AMPC Large Sales Force Analysis | 33
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions

                                                           Workplace Engagement Survey (WES)
                                                           Our Workplace Engagement Survey (WES) measures the degree to which your employees connect
                                                           with their work and feel committed to the organization and its goals. This gives you and your
                                                           management team a detailed view of what influences engagement across all of your workforce
                                                           segments and how your employees compare statistically to the overall working population.

                                                           In addition, the WES measures “satisfaction with employer” and “satisfaction with manager” across
                                                           your entire organization, and gives recommendations for your organization to improve.


                                                           Profiles Skills Tests (PST)
                                                           Profiles International provides comprehensive assessments to measure essential knowledge and
                                                           skills. We use powerful technologies, such as performance-based testing, which simulates popular
                                                           software products like Microsoft Office, to ensure an accurate and reliable assessment of
                                                           knowledge, skills, and abilities. Our skills assessments cover Software Skills, Clerical Skills, Call
                                                           Center Skills, Accounting and Finance, Medical, Nursing, Legal, Industrial, Computer Literacy, Retail,
                                                           Food Services, Information Technology, Staffing, and Human Resources.


                                                           Employee Background Checks (EBC)
                                                           Profiles International provides comprehensive employee background checks for our clients. These
                                                           include Consumer Credit Reports, Criminal History Record, Drivers' History Report (DMV), Education
                                                           Verification, Employment History Verification, Foreign Nationals Terrorist Sanctions Search (OFAC,
                                                           CLFST & OSFI), Identity Verification Search, Incarceration Records Search, Military Service
                                                           Verification, Cursory Nationwide Criminal Index Database Search (CNID), and many more.

www.americasmostproductive.com
                                                                                                                         AMPC Large Sales Force Analysis | 34
© 2010 Profiles International, Inc. All rights reserved.
America’s Most Productive Companies—Large Sales Force Analysis

How We Do It: Assessment and solution descriptions


                                                           Profiles Loyalty Pro™ (PLP)
                                                           Profiles LoyaltyPro™ is a web-based customer loyalty surveying tool. Loyalty, as determined
                                                           through the “voice of the customer,” is a leading indicator that predicts the “staying power” of an
                                                           account.

                                                           Profiles LoyaltyPro offers companies a tool to gather ongoing, critical account intelligence that helps
                                                           them assess the relationship between the buyer and the supplier, ultimately driving the action plan
                                                           to improve customer service. Having insight into your customer’s perception of your relationship
                                                           allows you to steer the strategic business efforts and initiatives of the account management teams
                                                           to continually improve customer relationships and build a network of loyal customers.




www.americasmostproductive.com
                                                                                                                         AMPC Large Sales Force Analysis | 35
© 2010 Profiles International, Inc. All rights reserved.
2010 America’s Most Productive Companies—Large Sales Force Analysis

    Profiles International, Inc.

Who We Are                                                 Contact Us
Profiles International helps organizations worldwide       Contact us for a complimentary, risk-free offer to
create high-performing workforces.                         study up to five of your employees.

Through our comprehensive employment assessments           Companies who work with us gain a competitive
and innovative talent management solutions, our clients    advantage by understanding their people at the deepest
gain a competitive advantage by selecting the right        levels; how they think, their natural tendencies, behaviors
people and managing them to their full potential.          and preferences, and attitudes toward key workplace
                                                           issues. We are highly confident that your organization will
Profiles can help you ensure that you have the right       find this free study offer to be of great value.
people in the right jobs to achieve your objectives.
                                                           Call us today!
Where We Are                                               (800) 960-9612
Profiles serves 122 countries around the globe and has
material in 32 languages.                                  Check us out at:
                                                           www.profilesinternational.com
                                                           www.americasmostproductive.com




www.americasmostproductive.com
                                                                                  AMPC Large Sales Force Analysis | 36
© 2010 Profiles International, Inc. All rights reserved.

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Americas Most Productive Companies 2010 Large Sales Force Analysis

  • 1. www.americasmostproductive.com © 2010 Profiles International, Inc. All rights reserved.
  • 2. 2010 America’s Most Productive Companies Large Sales Force Analysis from Profiles International. Copyright 2010 by Profiles International. All rights reserved. No part of the report may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems without written permission from the publisher. Printed and bound in the United States of America. Publisher Profiles Research Institute Dario Priolo, Managing Director 5205 Lake Shore Drive Waco, Texas 76710-1732 Profiles International (800) 960-9612 www.profilesinternational.com www.americasmostproductive.com Acknowledgements President, Co-founder, Profiles International: Bud Haney Editor-in-Chief: Dario Priolo Managing Editor: Carrie D. Martinez Assistant Editor and Research Associate: Christine Gallia Assistant Editor: Jeffrey Meyers Creative Director: Kelley Taylor Creative Assistants: Kristen Fletcher and Colton Canava Webmaster: David Hanas Web Specialists: Marlana Thurman www.americasmostproductive.com AMPC Large Sales Force Analysis | 2 © 2010 Profiles International, Inc. All rights reserved.
  • 3. Introduction to our Large Sales Force Analysis The Scope Profiles Research Institute initiated this study to better understand the factors that drive sales force productivity in large organizations. 235 Companies In economics, “productivity” is a measure of output per unit of input. However, productivity alone is not a sufficient gauge of sales force effectiveness since it ignores 1 million Sales People pricing and margins. A sales force that discounts price to the point of eliminating profitability may win business, but this approach is not sustainable even in the short-term. 13 Industries For purposes of this study, we sought to account for both revenue growth and revenue profitability, which we defined as operating income generated for each dollar of revenue generated. These calculations required us to analyze financial data from over 230 publicly traded companies with at least 500 sales people that we then organized into 13 different The Analytical Model industry groups. We then plotted these companies among their peers to identify the best in class, Revenue Growth questionable, and laggards within each industry group. We took a closer look at the best- in-class companies to identify common practices that enable them to out-perform their Best-in-Class peers. By understanding these practices, we hope to educate ourselves and our clients about the practices that can help them run more efficiently and become more competitive in the marketplace. Operating Margin Laggards This report presents our findings in two sections: 1. Comprehensive analysis of over 230 companies in 13 industry groups to identify the best in class, questionables, and laggards. 2. A synthesis and discussion of the top factors that drive sales force productivity. www.americasmostproductive.com AMPC Large Sales Force Analysis | 3 © 2010 Profiles International, Inc. All rights reserved.
  • 4. Large Sales Force Analysis: Industry Groupings Business Services Insurance Chemicals Media Consumer Products Medical Devices Electronics Manufacturing Pharmaceuticals Financial Services Software Industrial Manufacturing Telecommunication Services Transportation www.americasmostproductive.com AMPC Large Sales Force Analysis | 4 © 2010 Profiles International, Inc. All rights reserved.
  • 5. Large Sales Force Analysis: List of Companies www.americasmostproductive.com © 2010 Profiles International, Inc. All rights reserved. AMPC Large Sales Force Analysis | 5
  • 6. Business Services Consumer Products Chemicals Insurance Medical Devices Electronics Manufacturing Pharmaceutical Industrial Manufacturing Financial Services Media Software Telecommunications Services Transportation www.americasmostproductive.com ©2010 Profiles International, Inc. All rights reserved. AMPC Large Sales Force Analysis | 6
  • 7. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Business Services Revenue Growth RRD NSIT IM CGX 10% Best in Class OMX - Iron Mountain Incorporated OMC - Sykes Enterprises Incorporated UIS - UniFirst Corporation WM PBI IT Operating Margin KFRC DLX -10% -5% 0% 5% 10% 15% 20% 25% TECD IBM STEI -5% CTAS EFX USTR PAYX ABM DNB IRM UNF CVG SYKE Circle Diameter Represents Relative Sales Force Size HPY -20% APAC www.americasmostproductive.com AMPC Large Sales Force Analysis | 7 © 2010 Profiles International, Inc. All rights reserved.
  • 8. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Chemicals Revenue Growth 10% 5% Best in Class - Ecolab 0% DD -10% -5% 0% 5% 10% 15% NLC ARG -5% ASH Operating Margin APD -10% PPG SHW VAL -15% POL DOW -20% ECL -25% Circle Diameter Represents -30% Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 8 © 2010 Profiles International, Inc. All rights reserved.
  • 9. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Consumer Products 10% Revenue Growth NWL AOS Best in Class DELL - Altria Group, Inc. - National Beverage Corp. SEE 5% DF WH R GPC Operating Margin STZ 0% -5% 0% 5% 10% 15% 20% 25% PTV CAG REV -5% PVH HRL HPQ -10% KO JNJ K AYI -15% Circle Diameter Represents Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 9 © 2010 Profiles International, Inc. All rights reserved.
  • 10. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Electronics Manufacturing Revenue Growth 10% Best in Class - QUALCOMM Incorporated 5% 0% Operating Margin -5% 0% 5% 10% 15% 20% 25% 30% 35% XIDE TXN -5% SWK ARW INTC -10% EMC WAT QCOM -15% -20% Circle Diameter Represents Relative Sales Force Size -25% www.americasmostproductive.com AMPC Large Sales Force Analysis | 10 © 2010 Profiles International, Inc. All rights reserved.
  • 11. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Financial Services Revenue Growth 40% Best in Class - Bank of America - Fifth Third Bancorp LM - JPMorgan Chase & Co. 30% - Piper Jaffray Companies SCHW AXP AMTD 20% SWS FMER COF 10% KEY HRB Operating Margin GS 0% USB -5% 5% 15% 25% FCNCA ERIE -10% AMP FITB JPM BAC -20% PJC Circle Diameter Represents -30% Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 11 © 2010 Profiles International, Inc. All rights reserved.
  • 12. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Industrial Manufacturing Revenue Growth RYL 5% PRST Best in Class LEA - Northrop Grumman Corporation URI RRR 0% TXT JCI -5% 0% 5% 10% 15% B Operating Margin TECUA ROK -5% ETN TRW LAWS TEN AIN -10% AXE DE OC FAST SPW -15% GT HON SNA TNC GE -20% WPP ITW ADM UTX GWW -25% MWV IP KMT Circle Diameter Represents PH Relative Sales Force Size AIT -30% NOC www.americasmostproductive.com AMPC Large Sales Force Analysis | 12 © 2010 Profiles International, Inc. All rights reserved.
  • 13. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Insurance Revenue Growth PFG SIGI 35% CI TMK CB HGIC 25% AON Best in Class AFG TRV - AFLAC CINF - Mercury General Corporation CNO 15% -The Progressive Corporation BRK.A - Protective Life Corporation THG UAM L 5% HUM Operating Margin UTR UNH CNA -5% 0% 5% 10% 15% 20% EMCI -5% ALL STC AFL HMN -15% AET PGR ANAT PL MCY -25% Circle Diameter Represents FNF Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 13 © 2010 Profiles International, Inc. All rights reserved.
  • 14. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Media Revenue Growth 15% Best in Class - Comcast Corporation - Google 5% CMCSA VIA HHS -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% ACXM GOOG Operating Margin -5% GCI LAMR DIS -15% Circle Diameter Represents -25% Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 14 © 2010 Profiles International, Inc. All rights reserved.
  • 15. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Medical Devices Revenue Growth 15% Best in Class - Medtronic, Inc. - St. Jude Medical, Inc. 10% XRAY STJ 5% MMM BSX SYK 0% PLL -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% STE Operating Margin ZMH MDT -5% BEC TMO -10% Circle Diameter Represents Relative Sales Force Size -15% www.americasmostproductive.com AMPC Large Sales Force Analysis | 15 © 2010 Profiles International, Inc. All rights reserved.
  • 16. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Pharmaceutical Revenue Growth 20% CAH MYL 15% Best in Class ABC - Forest Laboratories, Inc. HSIC - Perrigo Company AGN 10% PFE ABT PSSI 5% BIIB FRX Operating Margin LLY 0% WPI -5% 0% 5% 10% 15% 20% 25% PRGO KG -5% Circle Diameter Represents Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 16 © 2010 Profiles International, Inc. All rights reserved.
  • 17. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Software Revenue Growth 40% Best in Class - Cisco Systems, Inc. - Oracle Corporation QADI 30% - Western Digital Corporation CPWR XRX NCR 20% PMTC PRGS MCRS 10% SNPS CA Operating Margin BMC 0% MSTR -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% MSFT VRSN -10% INTU CSCO ORCL -20% NTAP WDC Circle Diameter Represents -30% Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 17 © 2010 Profiles International, Inc. All rights reserved.
  • 18. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Telecommunications Services Revenue Growth 15% Best in Class - Verizon Communications 10% LVLT TLAB SATS 5% Operating Margin PLCM S IDT 0% Q -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% VCI PGI T -5% USM PAET VZ -10% -15% Circle Diameter Represents Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 18 © 2010 Profiles International, Inc. All rights reserved.
  • 19. 2010 America’s Most Productive Companies—Large Sales Force Analysis Industry: Transportation 5% Revenue Growth Best in Class - ABF Freight System - FedEx LSTR 0% Operating Margin -10% -5% 0% 5% 10% 15% UNP -5% ABFS LCC -10% UPS -15% CHRW ALK -20% LUV -25% JBLU FDX -30% Circle Diameter Represents Relative Sales Force Size www.americasmostproductive.com AMPC Large Sales Force Analysis | 19 © 2010 Profiles International, Inc. All rights reserved.
  • 20. 2010 America’s Most Productive Companies—Large Sales Force Analysis Profiles International, Inc. Who We Are Contact Us Profiles International helps organizations worldwide Contact us for a complimentary, risk-free offer to create high-performing workforces. study up to five of your employees. Through our comprehensive employment assessments Companies who work with us gain a competitive and innovative talent management solutions, our clients advantage by understanding their people at the deepest gain a competitive advantage by selecting the right levels; how they think, their natural tendencies, behaviors people and managing them to their full potential. and preferences, and attitudes toward key workplace issues. We are highly confident that your organization will Profiles can help you ensure that you have the right find this free study offer to be of great value. people in the right jobs to achieve your objectives. Call us today! Where We Are (800) 960-9612 Profiles serves 122 countries around the globe and has material in 32 languages. Check us out at: www.profilesinternational.com www.americasmostproductive.com www.americasmostproductive.com AMPC Large Sales Force Analysis | 20 © 2010 Profiles International, Inc. All rights reserved.
  • 21. Overview of Findings: America’s Most Productive Companies Large Sales Force Analysis After compiling and analyzing the data to identify Best-in-Class sales organizations, we conducted follow-up research on a number of these companies. This consisted of online literature review and interviews with select executives. Our research helped us identify a number of best practices that we believe explain outstanding sales force productivity. These six Key Differentiators of Excellence are listed below: 1. Extreme customer and market focus 2. Alignment of products, services, and solutions with customers’ high-priority needs 3. Alignment of resources to build customer loyalty 4. Alignment of sales process with customers’ buying processes 5. Alignment of sales roles and capabilities with customers’ buying processes 6. Alignment of time utilization and territories with market potential This report expounds upon each of these six key differentiators of excellence and offers insight and best practice recommendations for increased sales force effectiveness. www.americasmostproductive.com AMPC Large Sales Force Analysis | 21 © 2010 Profiles International, Inc. All rights reserved.
  • 22. America’s Most Productive Companies—Large Sales Force Analysis 1. Extreme customer and market focus Top Reasons Sales Close Regardless of the economy, successful sales organizations continually invest in learning about their customers’ needs and training to sell to these needs. Sales forces at America’s Most Productive Companies distinguish themselves from peer companies by taking deliberate measures to align their sales organizations and resources to best meet their customers’ needs. For example, these organizations are more likely than their peer companies to: • Use 360-degree feedback and other tools to help sales managers better understand their teams’ internal capabilities and assign the appropriate resources to the right projects • Ask customers and prospects in-depth questions to gain a thorough understanding of their businesses before making sales presentations Nurtured Relationships • Train their salespeople to offer unique solutions to customer problems rather than a one-size- fits-all approach Support/Service after the sale Product Quality These activities help them make larger sales; accelerate the sales cycle; and optimize selling time, activities, and staffing levels. All of this helps drive sales force productivity to higher levels. Branding Referals Our research suggests that America’s Most Productive Companies provide sales training as well as Sales Process product training to their sales teams regardless of the economy. Peer organizations, on the other hand, are more likely to cut back on sales training when the economy is bad. According to a survey Price respondent, “We see a down economy as an opportunity to learn more about our team members Availability and how they can make a unique contribution.” ROI www.americasmostproductive.com AMPC Large Sales Force Analysis | 22 © 2010 Profiles International, Inc. All rights reserved.
  • 23. America’s Most Productive Companies—Large Sales Force Analysis 2. Alignment of products, services, and solutions with customers’ high-priority needs Really understanding the most pressing needs of the customer and providing solutions “ that satisfy these needs and deliver value is essential to sales success. Sales leaders at America’s Most Productive Companies understand that while extreme “customer focus” is essential, it’s not by any means sufficient. They transcend typical “features and benefits” of the products they sell to grasp what is truly important to the customer. These best-in-class sales Identify a critical professionals: problem facing your • Know their customers’ priorities, how the products and services they sell help to satisfy their customer – one so customers’ needs, and how much value customers place on having their needs met ominous that, even • Realize that the more complex and expensive the problem, the more rigorously they will evaluate in a downturn, it will and scrutinize potential solutions – especially B2B buyers find the money to • Appreciate that needs and priorities change over time, so it is essential to make the connection address it. between their solution and how you can help them not only long-term, but today as well. Harvard Business Review High value doesn’t mean low price. In fact it may command a premium when the benefits are so ” March 2010 significant that price is no longer such a meaningful factor. This pricing power helps bolster sales and profitability, and increases sales force productivity. A survey respondent from one of America’s Most Productive Companies told us that his was the first sales team to take the time to find out about their customers’ top priorities. “We used to be more concerned with our products’ features than with our customers’ needs, but when we turned that upside down, we saw customers respond like never before.” www.americasmostproductive.com AMPC Large Sales Force Analysis | 23 © 2010 Profiles International, Inc. All rights reserved.
  • 24. America’s Most Productive Companies—Large Sales Force Analysis 3. Alignment of resources to build customer loyalty Don’t just live and breathe your products—live and breathe your customers’ business. Nearly everyone knows that it costs a lot more money to gain a new customer than it does to keep an existing one. Yet, in their day-to-day operations, many sales organizations seem to forget that axiom. Their sales professionals work leads, make cold calls, respond to RFPs, pitch their products and services, and do whatever it takes to make a sale (including discounting). They build customer bases, but they forget what it takes to maintain customer loyalty – and all too often they shoot themselves in the foot. What do America’s Most Productive Companies do to ensure repeat business and customer loyalty? Our survey suggests that they: • Exceed customer expectations by knowing their customers’ businesses better than the competition does, by being proactive in offering solutions that address their customers’ needs, and by communicating with customers in a timely, effective manner Profiles International’s report, Seven Factors for Building Extreme Customer Loyalty, goes beyond simply satisfying • Put in place an infrastructure that ensures customer support either through technology or face-to- customers to protecting and growing face interaction; sales forces at America’s Most Productive Companies do a better job strategic accounts with: communicating with their customers, knowing their customers’ needs, and proactively addressing them 1. Emotional Dependence 2. Structural Dependence • Establish and monitor key “loyalty indicators” 3. Business Dependence 4. Satisfaction America’s Most Productive Companies go beyond basic customer satisfaction. Especially in the B2B 5. Performance space, they make their products and services integral parts of how customers run their businesses. For 6. Economic Value Proposition example, a survey respondent told us, “We don’t just live and breathe our products – we live and 7. Alignment and Fit breathe our customers’ operations. They know that, and they thank us by returning year after year.” www.americasmostproductive.com AMPC Large Sales Force Analysis | 24 © 2010 Profiles International, Inc. All rights reserved.
  • 25. America’s Most Productive Companies—Large Sales Force Analysis 4. Alignment of sales process with customers’ buying processes Today’s buyers are rigorous and deliberate about their buying decisions. Rather than imposing a one-size-fits-all sales process on hapless prospects, America’s Most Productive Companies sell the way their customers want to buy. In today’s economy, consumers are spending wisely. They believe they have leverage with sellers, and in many cases they do! So they dictate the process and they are rigorous and deliberate about their buying decisions. What’s more, buyers are using social networks to learn about solutions, vendors, and pricing; there is little opportunity to manipulate or glad-hand someone into buying. That’s why America’s Most Productive Companies: • Understand how customers make buying decisions and align their selling process accordingly • Use technology to help the sales team track their progress through the customer’s buying process • Use integrated lead generation and CRM systems to improve revenue predictability • Produce effective reports to give sales managers pipeline visibility so they can hold sales people Key Buying Influencers: accountable and also provide better coaching and resources to support qualified opportunities 1. Trust 2. Value Sales organizations at America’s Most Productive Companies understand how customers make buying decisions – and they align their selling processes accordingly. They don’t make simple sales complex and 3. Resources they don’t make complex sales simple. For example, one respondent from a best-in-class company commented, “If a solution has broad impact and requires input from multiple parties to identify the problem, scope a solution, and make a buying decision, that means our team must be prepared for a longer sales cycle and a much more strategic approach to making the sale.” www.americasmostproductive.com AMPC Large Sales Force Analysis | 25 © 2010 Profiles International, Inc. All rights reserved.
  • 26. America’s Most Productive Companies—Large Sales Force Analysis 5. Alignment of sales roles and capabilities with customers’ buying processes Best-in-class organizations get to know their customers’ businesses on a granular level and develop specialized sales roles that align with how customers buy. Aligning the selling process with the customer’s buying process requires specialization of sales roles and capabilities. For example, a successful new business development executive (the classic “hunter”) probably has different skills, interests, and core behaviors than a key account manager (the classic “farmer”), or a sales engineer (the classic “geek”). In our work with some of America’s Most Productive Companies, we find time and time again, that these best-in-class organizations make an effort to get to know their customers’ businesses on a granular level and develop specialized sales roles that align with how customers buy. Survey results suggest that sales forces at America’s Most Productive Companies: • Clearly define the purpose of the sales role and know what makes someone successful in that role • Determine who fits best into each role and then either develop or hire people for each specific job; since cultural issues and other factors can influence who “fits” into an organization, this work is often customized • Pinpoint the skills and developmental needs of individual sales representatives A survey respondent from one of America’s Most Productive Companies told us, “We make sure our reps fit in with the customers they service. We know our people – and we really know our customers.” For most adults, it is easier to acquire new skills than to change core behaviors. That’s why many of America’s Most Productive Companies hire people based on their behaviors – and then train the skills. At these organizations people are passionate and capable. www.americasmostproductive.com AMPC Large Sales Force Analysis | 26 © 2010 Profiles International, Inc. All rights reserved.
  • 27. America’s Most Productive Companies—Large Sales Force Analysis 6. Alignment of time utilization and territories with market potential The only thing constant is change. Last year’s prime territory could be this year’s wasteland. Sales leaders at America’s Most Productive Companies tell us that they don’t shy away from tough decisions such as when to walk away from a deal, when to let go of a territory that lacks market potential, or when to invest in extra resources. No one likes abandoning a customer, but in some cases, especially when demographics and industry trends have changed so much that a certain territory no longer has promise, continuing to service it can be a fool’s errand. America’s Most Productive Companies monitor their sales forces’ time and analyze their territories to ensure that: • There aren’t too many or too few reps assigned • They are up-to-date and ready to act based on demographic trends, business news, zoning issues, and “the local buzz” • They maintain proper focus on the right selling activities, in the right quantities, at the right conversion rates These sales leaders don’t operate in a vacuum. They develop, track, and adjust their “sales formulas” as needed. One survey respondent told us, “The only thing that remains constant around here is change. That’s why we are careful about how we allot our selling time. Last year’s prime territory could be this year’s wasteland. And if that’s the case, I need to know!” www.americasmostproductive.com AMPC Large Sales Force Analysis | 27 © 2010 Profiles International, Inc. All rights reserved.
  • 28. Summary of Lessons Learned: Six Key Differentiators of Excellence of America’s Most Productive Companies 1. Extreme customer and market focus 2. Alignment of products, services, and solutions with customers’ high-priority needs 3. Alignment of resources to build customer loyalty 4. Alignment of sales process with customers’ buying processes 5. Alignment of sales roles and capabilities with customers’ buying processes 6. Alignment of time utilization and territories with market potential www.americasmostproductive.com AMPC Large Sales Force Analysis | 28 © 2010 Profiles International, Inc. All rights reserved.
  • 29. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Overview of our assessments and solutions Your Business Objective Our Popular Solutions High-level Strategic Workforce Management Identifying high-potential employees and managers PXT CP360 PSA CSP Strategic workforce and succession planning PXT PPI CP360 PSA CSP Restructuring, reorganizing, and downsizing PXT PPI PMF WES PSA CSP PLP Post-merger integration of organizations PXT PPI PMF WES PSA CSP PLP Everyday Workforce Management Basic pre-employment screening SOS PST Screening, interviewing, and selecting job candidates PXT PST EBC PSA CSP Onboarding new employees PXT PPI PMF Improving employee productivity and work quality PXT PPI WES Improving employee motivation and communication PPI PMF WES Resolving conflict between coworkers PPI Selecting and managing teams PPI Evaluating management effectiveness PXT PPI CP360 WES Prioritizing management development needs CP360 WES Sales and Customer-facing Workforce Management Screening, interviewing, and selecting job candidates PST EBC PSA CSP Retaining and growing customers and accounts PSA CSP PLP Improving sales performance PPI CP360 PMF WES PSA PLP Legend SOS Step One Survey PMF Profiles Managerial Fit PXT ProfileXT WES Workplace Engagement Survey PST Profiles Skills Tests PSA Profiles Sales Assessment EBC Employee Background Checks CSP Customer Service Profile PPI Profiles Performance Indicator PLP Profiles LoyaltyPro CP360 CheckPoint 360 www.americasmostproductive.com AMPC Large Sales Force Analysis | 29 © 2010 Profiles International, Inc. All rights reserved.
  • 30. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions Profiles Sales Assessment™ (PSA) The Profiles Sales Assessment (PSA) measures how well a person fits specific sales jobs in your organization. It is used primarily for selecting, onboarding, and managing sales people and account managers. The “job modeling” feature of the PSA is unique and can be customized by company, sales position, department, manager, geography, or any combination of these factors. This enables you to evaluate an individual relative to the qualities required to perform successfully in a specific sales job in your organization. It also predicts on-the-job performance in seven critical sales behaviors: Prospecting, Call Reluctance, Closing the Sale, Self-starting, Working with a Team, Building and Maintaining Relationships, and Compensation Preference. Customer Service Profile™ (CSP) The Customer Service Profile (CSP) measures how well a person fits specific customer service jobs in your organization. It is used primarily for selecting, onboarding, and managing customer service employees. The CSP also looks at what your current and future employees believe is a high level of customer service, while at the same time showing where they align (or not) with the company’s perspective. We have a general industry version of this assessment as well as vertical specialties in hospitality, healthcare, financial services, and retail. www.americasmostproductive.com AMPC Large Sales Force Analysis | 30 © 2010 Profiles International, Inc. All rights reserved.
  • 31. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions Step One Survey II® (SOSII) The SOSII is a brief pre-hire assessment that measures an individual’s basic work-related values. It is used primarily as a screening tool early in the candidate selection process. This assessment provides valid insight into an applicant’s work ethic, reliability, integrity, propensity for substance abuse, and attitudes toward theft — including property, data, and time. ProfileXT® (PXT) The PXT assessment measures how well an individual fits specific jobs in your organization. The “job matching” feature of the PXT is unique, and it enables you to evaluate an individual relative to the qualities required to successfully perform in a specific job. It is used throughout the employee life cycle for selection, onboarding, managing, and strategic workforce planning. This assessment reveals consistent, in-depth, objective insight into an individual's thinking and reasoning style, relevant behavioral traits, occupational interests, and match to specific jobs in your organization. It helps your managers interview and select people who have the highest probability of being successful in a role, and provides practical recommendations for coaching them to maximum performance. It also gives your organization consistent language and metrics to support strategic workforce and succession planning, talent management, and reorganization efforts. www.americasmostproductive.com AMPC Large Sales Force Analysis | 31 © 2010 Profiles International, Inc. All rights reserved.
  • 32. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions Profiles Performance Indicator™ (PPI) The Profiles Performance Indicator (PPI) is a DISC-type assessment that reveals aspects of an individual's personality that could impact their fit with their manager, coworkers and team, and their job performance. It is used primarily for motivating and coaching employees, and resolving post-hire conflict and performance issues. The PPI specifically measures an individual's motivational intensity and behaviors related to productivity, quality of work, initiative, teamwork, problem solving, and adapting to change as well as response to conflict, stress, and frustration. The output from this assessment serves as an “operator's manual” for an employee, which helps managers better motivate, coach, and communicate with the employee. It also helps to predict and minimize conflict among coworkers, and it provides crucial information for improving team selection and performance. A powerful feature of the PPI is the Team Analysis Report, designed to help managers form new teams, reduce team conflict, improve team communication, improve their ability to anticipate problems, and enhance their team leadership skills. It helps evaluate overall team balance, strengths, and weaknesses as well as team members’ personality characteristics along 12 key factors: control, composure, social influence, analytical thinking, patience, results orientation, precision, expressiveness, ambition, teamwork, positive expectancy, and quality orientation. It also provides team leaders with practical recommendations and action steps to take in order to succeed in their jobs. www.americasmostproductive.com AMPC Large Sales Force Analysis | 32 © 2010 Profiles International, Inc. All rights reserved.
  • 33. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions CheckPoint 360°™ The CheckPoint Management System is a 360-degree assessment. It is used primarily to evaluate the effectiveness of your managers and leaders. This assessment combines feedback from direct reports, peers, supervisors, and even customers with a personalized program for developing specific leadership skills based on that feedback. This process highlights a manager’s job performance in eight universal management competencies: communication, leadership, adaptability, relationships, task management, production, development of others, and personal development. The CheckPoint 360 helps managers identify and prioritize their own development opportunities. And it helps the organization to better focus management training and development investments; proactively uncover misaligned priorities between senior executives and front-line managers; and surface management issues that could lead to low employee productivity, morale, job-satisfaction, and increased turnover. Profiles Managerial Fit ™ (PMF) People typically don’t quit their companies, they quit their bosses. Profiles Managerial Fit (PMF) measures critical aspects of compatibility between a manager and their employees. This report offers an in-depth look at one’s approach to learning, as well as six critical dimensions of compatibility with their manager: self-assurance, conformity, optimism, decisiveness, self-reliance, and objectivity. Managers use this information for adapting their styles in order to get the most from each employee; improve communication; increase engagement, satisfaction, and productivity; and reduce employee turnover. www.americasmostproductive.com AMPC Large Sales Force Analysis | 33 © 2010 Profiles International, Inc. All rights reserved.
  • 34. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions Workplace Engagement Survey (WES) Our Workplace Engagement Survey (WES) measures the degree to which your employees connect with their work and feel committed to the organization and its goals. This gives you and your management team a detailed view of what influences engagement across all of your workforce segments and how your employees compare statistically to the overall working population. In addition, the WES measures “satisfaction with employer” and “satisfaction with manager” across your entire organization, and gives recommendations for your organization to improve. Profiles Skills Tests (PST) Profiles International provides comprehensive assessments to measure essential knowledge and skills. We use powerful technologies, such as performance-based testing, which simulates popular software products like Microsoft Office, to ensure an accurate and reliable assessment of knowledge, skills, and abilities. Our skills assessments cover Software Skills, Clerical Skills, Call Center Skills, Accounting and Finance, Medical, Nursing, Legal, Industrial, Computer Literacy, Retail, Food Services, Information Technology, Staffing, and Human Resources. Employee Background Checks (EBC) Profiles International provides comprehensive employee background checks for our clients. These include Consumer Credit Reports, Criminal History Record, Drivers' History Report (DMV), Education Verification, Employment History Verification, Foreign Nationals Terrorist Sanctions Search (OFAC, CLFST & OSFI), Identity Verification Search, Incarceration Records Search, Military Service Verification, Cursory Nationwide Criminal Index Database Search (CNID), and many more. www.americasmostproductive.com AMPC Large Sales Force Analysis | 34 © 2010 Profiles International, Inc. All rights reserved.
  • 35. America’s Most Productive Companies—Large Sales Force Analysis How We Do It: Assessment and solution descriptions Profiles Loyalty Pro™ (PLP) Profiles LoyaltyPro™ is a web-based customer loyalty surveying tool. Loyalty, as determined through the “voice of the customer,” is a leading indicator that predicts the “staying power” of an account. Profiles LoyaltyPro offers companies a tool to gather ongoing, critical account intelligence that helps them assess the relationship between the buyer and the supplier, ultimately driving the action plan to improve customer service. Having insight into your customer’s perception of your relationship allows you to steer the strategic business efforts and initiatives of the account management teams to continually improve customer relationships and build a network of loyal customers. www.americasmostproductive.com AMPC Large Sales Force Analysis | 35 © 2010 Profiles International, Inc. All rights reserved.
  • 36. 2010 America’s Most Productive Companies—Large Sales Force Analysis Profiles International, Inc. Who We Are Contact Us Profiles International helps organizations worldwide Contact us for a complimentary, risk-free offer to create high-performing workforces. study up to five of your employees. Through our comprehensive employment assessments Companies who work with us gain a competitive and innovative talent management solutions, our clients advantage by understanding their people at the deepest gain a competitive advantage by selecting the right levels; how they think, their natural tendencies, behaviors people and managing them to their full potential. and preferences, and attitudes toward key workplace issues. We are highly confident that your organization will Profiles can help you ensure that you have the right find this free study offer to be of great value. people in the right jobs to achieve your objectives. Call us today! Where We Are (800) 960-9612 Profiles serves 122 countries around the globe and has material in 32 languages. Check us out at: www.profilesinternational.com www.americasmostproductive.com www.americasmostproductive.com AMPC Large Sales Force Analysis | 36 © 2010 Profiles International, Inc. All rights reserved.