| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 96.1 | | LURE::CERLING | God doesn't believe in atheists | Thu Mar 19 1992 09:52 | 27 |
|
>One of the things that is apparent to me after doing a little research is that
>there is a lot going on to make things better. The redesign of the Sales support
>systems mentioned in a reply to 87.0 is an example.
Yes, some things are going on. I am field testing the changes to SBS
and they do make time entry easier. However, treating the symptoms
is not necessarily the best way to cure a disease. I want to be
positive about things; I want to think we are doing the right thing.
And I am NOT placing any blame on IM&T. I know they are doing the
job that is given to them. It might be interesting to here what they
are doing, but I do not see it as a morale booster. I am interested
in what many functions in Digital are doing.
The problem with SBS goes way beyond IM&T. As they reported, they
are doing what they can. The problem with SBS is that numbers coming
out of the system do not reflect what managers want to see coming out
of the system. Even if I have been trying for years to make them
as accurate as possible. They are as accurate as I can possibly make
them, but they don't conform to what is defined as `good'. Therefore,
management is asking us to put in information that will make the
numbers look good. What is the use of entering bogus information?
Particularly if these numbers are being used to make business
decisions?
tgc
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| 96.2 | | MADWT::HENDERSON | Another Casualty of Applied Metaphysics | Thu Mar 19 1992 13:10 | 26 |
| What I am refering to, without puting words in other peoples mouths, is an
effort to do a complete business process redesign with some very specific
productivity, quality, effectiveness goals. This includes an input segment
called customer-to-customer which is an effort to understand how customers
want to be able to do business with Digital.
The very fact that the effort is underway and is addressing many of may most
dreaded fears, makes me more willing to put my pet peeves (AQS, XSEL,
WARGAMES...) on the shelf. I have taken the time to do the research and I feel
confident that they are on the right track. A few minutes on a DVN to
communicate this to the rest of us will help make others
feel better about "why isn't the ABC system getting fixed?!?! It's a piece of
junk and needs to be turned off."
It isn't a panacea for problems and in cases where bad data is being used to
make decisions then it should be pointed out and management should take note
and look for alternative sources when making important decisions. Managers
should be hald responsible for the decisions they make, This is a goal of NMS.
A mananger that knowingly uses bad data to make decisions that affect peoples
carreers and lives and makes no effort to mitigate the problem should be held
responsible.
Lack of cross functional communication is what tends to breed animosity in
large organizations. BJ's discussion on the last DVN were enlightening and
interersting. Similar discusions with other functional manager whose strategies
directly affect Sales have value and IM&T is just such an organization.
|
| 96.3 | A Concept for comment | OFFPLS::GRAY | | Tue Mar 31 1992 17:07 | 32 |
| The suggestion to have IM&T participate in a DVN has merit for providing a
view to the future, but major system changes can be slow to materialize.
Perhaps there is a need for earlier change, or an alternative, while our
administrative systems are improved. Following is a concept for discussion
which focuses reporting on current systems in the hands of a few who could be
trained to do it well, and frees up others to concentrate more on selling.
=============================================================================
PREFACE A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
This reply describes a possible operational scenario for an AGM. Several
that I have described it to asked me to write it down. The OVERVIEW is 96.4.
Posting this concept has also been prompted by comments and discussions in the
HUMANE::DIGITAL Notes Conference and some in 87.* of GERBIL::US_SALES_SERVICE
NOTES conferences which express frustration and agony with our internal
systems and metrics. One note says; "why doesn't someone suggest a solution".
This is an attempt to do that. This concept is posted to both notes files to
solicit comment from the current selling team world I used to be a part of.
This concept is based heavily on that enormously rewarding experience. But
those were better times. This concept is also based on a presentation/paper
called Measuring for Success which was given at LA-ADSIG (APICS) and published
in the Proceedings (copy on request).
With critique and suggestions from others, perhaps a better way may emerge
that would make sense even in today's environment.
Following this PREFACE are 6 Replies called OVERVIEW, PROSPECTING, DECISION,
WINNING, MANAGING and an EPILOGUE to describe the concept.
|
| 96.4 | OVERVIEW | OFFPLS::GRAY | | Tue Mar 31 1992 17:08 | 152 |
| OVERVIEW A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
This summary outlines an organizational methodology and measurement criteria
structured to maximize the selling opportunities within a specific geography
or selling domain of an Account Group Manager. To the best of my knowledge,
the concept is in total accord with the New Management System, our Account
oriented direction and with our stated goals of Customer Enthusiasm and
Profitable Growth.
The concept is based on apportioning existing personnel into one of four
business segments which I have called PROSPECTING, DECISION, WINNING, and
MANAGING. There is an expectation that the sum of the four segments will blend
to accomplish the whole selling function. The underlying rationale for this
concept is to approach the total, but constantly changing market of an Account
Group with an organization designed and rewarded to be flexible and adjust to
this change. A major premise is that ongoing delivery and maintenance
business needs to be managed and goaled differently from the business of
closing larger, more complex new systems (SI type) business. An overview of
the objective, function and measurement of each of the four segments follows
this summary.
PROSPECTING
The objective of PROSPECTING is to find out about opportunities and fill the
pipeline for the DECISION Group.
The function is to interact with senior management of all the potential
enterprises within the Account Group territory, with the specific charter to
discover opportunity. Success is knowing ahead of time, what each enterprise
later invests in. The deliverable is to present to the DECISION segment,
every opportunity that can be found, regardless of applicability to us. It
would include, however, an opinion of our success probabilities. The sum of
all discovery is the total working forecast. Where there is no Account
Manager, PROSPECTING also has the responsibility of assuring that future
proposals will be successful in the upper level funding and approval cycle.
PROSPECTING is aligned with Accounts.
Measurement: percent of opportunity found vs. later actual enterprise spending
DECISION
The objective of the DECISION group is to select the best qualified,
opportunities and distribute those to the WINNING Teams in a manner designed
to meet the AGM business goals. The group also has the objective of
consistent and correct reporting to our internal business systems.
One DECISION group function is to decide which of opportunities that have been
discovered should be worked on by a WINNING Team. This is the Business office
for the Account Group. DECISION is also responsible for all reporting, for
attainment of AGM budget goals, allocation of resources, and planning for
future resource/training needs. DECISION assures that sales expense does not
begin, until a "GO" decision has been made relative to probabilities, resource
skill availability, high risk issues, etc. When a decision is reached to
pursue a specific engagement, DECISION then assigns the task to a WINNING
TEAM. DECISION is not Account aligned, but chooses the "best" opportunities
from across the entire territory/geography.
DECISION does all reporting to SBS, Sales management, IBU/PBU, etc. The
members of the other three segments would report activity in a very simple
structured mail message to DECISION. The administrative staff consolidates
this information and data enters it into systems. DECISION provides the
administrative support, proposal generation, resource escalation, Readiness
planning and other similar services.
Measurements: Percent of opportunities assigned that are awarded vs. reach no
award decision. Meeting all the AGM Business goals across all the groupings,
such as hardware, services etc. Growth of overall market share in the Account
Group. This is the only group measured on dollars and market share.
Availability of skills and Readiness to meet future customer demands.
WINNING
The objective of this group is to design cost-effective, competitive winning
solutions and close business in minimum elapsed time.
This is a pool/group of selling and technical specialists that form short term
teams to perform needs analysis, design the winning solution, propose and win
an opportunity. These teams have no dollar goals. The only goal is to win
the order in the shortest cycle time. Individuals may be assigned to multiple
teams concurrently as their skills are needed. Individuals would work with
the team only in the phases of the cycle that needed their talent. This is
this group that gives the organization the flexibility to seize the
opportunity regardless of the customer account that presents it or the time it
is presented. It is expected that the majority of the Account Group personnel
would be in this group. Teams are formed and disbanded as needed. Members
are added or leave as needed. WINNING team members are NOT aligned to any
specific account.
Measurement: Percent of assigned engagements won vs. lost to competition (if
the customer make no decision, that impacts the metric of the DECISION group).
MANAGEMENT
The objective is to cultivate the long term customer relationship.
The MANAGEMENT group would be long term assignments to active accounts. They
manage and guide every assigned WINNING Team through the selling cycle within
their account. They assure the timely and proper installation and
implementation of closed business. They process the follow-on and upgrade
business. They manage the service contracts. They respond to the smaller
point solution sales. They utilize Distributor channels when appropriate.
They generate account plans and advise the DECISION group on assigning WINNING
Teams to their accounts. They may commit to deliver the win. They "pay" only
for services used and manage the NMS system Account P&L.
Measurement: Customer satisfaction and Account P&L.
SUMMARY
The objective of this concept is to focus four groups of people on four
specific objectives: (1) Find every opportunity with no onus on whether it is
won or not; (2) Make the hard business decisions on how best to allocate teams
to meet the business goals of the AGM; (3) Concentrate on winning. Design the
lowest cost best solution, the competitive solution, the solution that meets
the customer's business goal. Close the order in the shortest possible
elapsed time; and (4) develop the long term profitable and enthusiastic
customer relationship based on delivery of effective solutions that benefit
the customer.
Measurements are matched to corporate goals of customer enthusiasm and
profitable growth, but these can be finite and tough. Only the DECISION group
deals with internal numbers reporting and meeting dollar goals.
IMPLEMENTATION
As best I can see, this concept could be implemented at the AGM level by any
AGM independent of the actions of other AGM's. All of the Account level
reporting I am aware of could be generated by the Business Office. Industry
cuts, product cuts, whatever was needed, would be generated all from the same
consistent database by the DECISION group.
+----------------------------------------------------------------------------+
| |
| DIAGRAM OF THIS CUSTOMER ORIENTED SELLING MODEL |
+------------+----------------+----------------+-------------+---------------+
| JOB GROUP-+- PROSPECTING | DECISION | WINNING | MANAGING |
| GOALS | | | | |
+---+--------+----------------+----------------+-------------+---------------+
| | | | | |
| OBJECTIVE | Find new | Meet AGM goals.| Win new | Manage |
| | opportunities | Do reporting | business | Account |
+------------+----------------+----------------+-------------+---------------+
| | | | | |
| ACTIVITY | Interact with | Select | Propose | Close all |
| | senior mgmt. | engagements | Solutions | business |
+------------+----------------+----------------+-------------+---------------+
| | | | | |
| METRIC | Percent of | Make budget. | Percent of | Customer |
| | business found | Profit goals | winning | satisfaction |
| | | | | |
+------------+----------------+----------------+-------------+---------------+
|
| 96.5 | PROSPECTING | OFFPLS::GRAY | | Tue Mar 31 1992 17:09 | 46 |
| PROSPECTING A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
ASSUMPTIONS:
The assumption is that the more business opportunity we know about, the better
job the Business group can do selecting our best opportunities from the total.
An assumption is that we lose a very significant percent of market share from
customers and opportunities we don't even know about.
OBJECTIVE and ACTIVITY:
The objective of the prospector is to find every opportunity within the
territory or set of assigned accounts. It is essential to include in the
scope of territory, all the enterprises not covered by the named account
structure. Accounts which do not fit the profit model for End User sales,
would be referred to Distributors, followed and tracked. The new 4 year
advertising campaign is designed to find $900M in incremental revenue, and it
is expected that 40% of that will come from accounts who have not previously
bought from Digital (source BJ in DVN). Prospectors are the antenna listening
for and responding to those buying signals. Prospectors are our ambassadors
of goodwill and company image.
Along with the MANAGING person, the prospector would be responsible to assure
that there is no high level hidden veto that could preclude a sale when a
Winning Team is successful in winning at the selection group level.
MEASUREMENT:
The metric might be total forecast identified vs. the reported gross
procurement. The metric might be "no surprises" from among the identified
territory. It is crucial to this concept that the prospector is not measured
on quality, probability, or revenue, else it would detract from or conflict
with the objective to just find it and make it known.
JOB CRITERIA:
As with all four groups, the type of person who would be successful in this
role is fairly obvious, and we are fortunate to be blessed with many who
possess these skills. Some might be "elder statesmen". Their effectiveness
might be greatly increased by training on recognition of opportunity,
including opportunity that the enterprise doesn't even recognize themselves.
How many times has a person said they went in to work on "X" and found
something else? Prospectors might currently reside in either Sales or Sales
Support. Digital Services currently has a similar position in some major
accounts.
|
| 96.6 | DECISION | OFFPLS::GRAY | | Tue Mar 31 1992 17:09 | 69 |
| DECISION A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
ASSUMPTIONS:
The assumption is that the probabilities of business are unequal from account
to account and that these probabilities change much more frequently than our
ability to reallocate or re-plan resources fairly. This change unfairly
causes both positive and negative impact on attaining fixed goals. This leads
to unproductive focus on internal goaling and activity reporting at the
expense of selling. The assumption is that it would be more efficient and
effective to concentrate this numerical activity in a business group trained
and chartered to perform these tasks consistently and accurately.
OBJECTIVE and ACTIVITY:
The primary objective of this group is to assign work so that the AGM goals
are met or exceeded. Assignments are made to WINNING team leaders. Team
leaders select team members. Successful leaders are given more and larger
assignments. Less successful leaders are given less comprehensive engagements
and more team member time. "Leader" is not a job, it is an assignment.
Other objectives are to provide consistent reporting to the sales
organization, to make the business decisions of which opportunities to put
effort on, to manage the DEC100 and other reward systems. This function needs
to estimate the revenue value, types of revenue expected, and estimated time
to close each assigned engagement (projected revenue), but that estimate must
not be a metric for the WINNING TEAMS to meet.
As positively as I can express it, a major purpose of this group is to remove
the administrative burden from the other three groups so the other three can
focus totally on finding business, winning business, and delivering business.
This group sets/accepts the AGM budget based on the SUM of the account plan
estimates from the Account Managers. Success, therefore, is meeting the
quarterly and annual numbers in aggregate, not necessarily by each account or
division individually. Since this group has the power to deploy the WINNING
TEAMS based on total opportunity, if the total can be made, it will be made.
And everybody can be successful on their goal sheet because of the
flexibility.
This group also provides the planning function to project future resource
needs for changing skills and knowledge requirements. This should become very
obvious when high probability opportunities must be passed over because the
skills knowledge needed to win them is lacking or overloaded. This would be
much easier to detect earlier at the AGM level rather than at the Account
level. Longer term success depends on being able to accomplish education and
training ahead of the technology and demand curve. With the aggregate view of
pending demand, probabilities and forecast, Digital Services should be in much
better position to manage the risk of investing in headcount and training for
having qualified people ready to earn customer respect from day one on the
job.
MEASUREMENT:
Primarily, meet the AGM metrics. Also, cost control of utilization of
resources outside of the AGM unit. Having the needed skills within the AGM
group, closest to the customer, to meet needs. Percent of opportunities
assigned to Winning Teams that end in purchase rather than "no decision".
Timely and proper reporting to our internal business systems. Management of
total discounts and allowances.
JOB CRITERIA:
As with all four groups, the type of person who would be successful in this
role is fairly obvious, and, again, we are fortunate to have many who possess
these pragmatic business skills. Experience in operations, in depth
understanding of our business systems and ability to focus on meeting the
AGM's goals are paramount.
|
| 96.7 | WINNING | OFFPLS::GRAY | | Tue Mar 31 1992 17:10 | 45 |
| WINNING A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
ASSUMPTIONS: The assumption is that more engagements will be won if they have
been consistently qualified, and if the personnel on the teams are trained and
able to focus only on competitively solving the customer business problem.
OBJECTIVE: A team works under the direction and guidance of the Account
Manager at all times. Every team has a team leader. A team leader on one
team may be a team member on another team. The objective for the team is to
execute the principles of the well known PDIM model. Some team members will
assess the customer needs, trial test alternate concepts with the customer,
choose a straw design approach, and then work with other more in-depth
technical members of the team to flesh out a finite solution. The team needs
to evaluate every avenue to include educational and other support services
that will add to profit and increase probability of success. The team will
bring in the expected delivery personnel to review the final proposal. The
team accomplishes the "technical sell". The team will then follow the
solution through closure and turnover to Digital Services delivery personnel
or the Project Manager for implementation.
MEASUREMENT:
The metric is simply to win; percent of wins vs. losses. Close each
opportunity within the amount of elapsed time agreed to in the engagement
assignment. It is crucial to this logic that the dollar value/amount, or
utilization of any preconceived product or service is not a criteria or
metric. The teams must be totally free to utilize any combination of Digital
or third party products and service that will best meet the customer needs and
beat the competition.
JOB CRITERIA:
As with all four groups, the type of person who would be successful in this
role is fairly obvious, and, again, we are fortunate to be blessed with many
who possess the expertise of these technical and selling skills. These
persons need to be able to focus on customer need, need to be able to quickly
design a winning design approach, and need to be able to assemble the
essential DEC and third party products which will integrate in support of the
customer objective. Extensive system and product knowledge is crucial.
Ability to utilize corporate resources (VTX, NOTES, PARTNERS, PROPOSAL SYSTEM,
SOFTBASE, RESOURCE CENTERS, BENCHMARK CENTERS, etc.) and quickly employ the
Escalation Process, when needed, is also crucial. Goodness is not having to
use higher cost resources outside the Account Group. Not using Practices
groups and highly skilled special resources when they are needed is stupid.
|
| 96.8 | MANAGING | OFFPLS::GRAY | | Tue Mar 31 1992 17:10 | 47 |
| MANAGING A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
ASSUMPTIONS:
The assumption is that growth and profitable success will result from
consistent longer term relationships which can be developed through an account
focus. The assumption follows that this will be more successful if the
Account manager is not measured on revenue, but only on customer satisfaction.
The assumption is that profitable revenue follows satisfaction, not the other
way around. An important assumption is that the Account Manager is still in
command of all activity relative to their account.
OBJECTIVE and ACTIVITY:
The Account Manager is responsible for account control, payables, delivery of
purchased systems, Discount agreements, and the account plan. The account
plan of projected revenue becomes a planning number to the business group, not
a metric. AGM budgets and WINNING TEAM headcount would be based on the sum of
Account plans.
Invitations to CLF, DECWorld, Seminars, Corporate visits, Technical Reviews,
etc.; processing follow on and point solution orders, education and training,
services business, system hardware and software maintenance and tuning, etc.
Very important is that the AM would guide and direct WINNING TEAMS, they work
for her/him during the period of the engagement. The AM closes the solution
order business, not the WINNING Team.
MEASUREMENT:
The primary measure is customer satisfaction. Growth of market share or the
ratio of spending between DEC and non-DEC is a fair measure of satisfaction,
but fixed annual dollar goals especially in a volatile economy may be
impractical. Ability to obtain an on-site office, permanent access badge,
membership on customer committee's, being invited to customer events or
playing on the customers softball team could also be metrics of customer
satisfaction. Ability to deliver the revenue of SI projects, once sought and
accepted (same as the WINNING TEAM) is also a measure. Accuracy of the
forecast part of the account plan might be a minor metric. Services revenue
might be a metric.
JOB CRITERIA:
This is another function for which many in our field force are well suited.
Those who listen especially well, pay attention to details, have excellent
social and people skills would more likely be successful. Willingness to
commit to a longer term assignment is also important.
|
| 96.9 | EPILOGUE | OFFPLS::GRAY | | Tue Mar 31 1992 17:11 | 45 |
| EPILOGUE A CONCEPT FOR A CUSTOMER ORIENTED SELLING MODEL
ASSUMPTION:
We are not good enough to look out one year in advance and accurately guess,
with the impact of defining someone's future career, the probable business in
any one given account or division. The sum of many account's might add up to
a pretty accurate total result, but one individual can pay a harsh personal
price for that logic, and another reap an unjustified reward.
We are unable to swiftly deploy skilled resources to an bluebird opportunity
on short notice and still have a win-win result on personal rewards.
This concept is designed to provide more responsive flexibility with more
winners.
SCENARIOS:
Perhaps two scenarios might help to illustrate this concept.
A successful account might be one that began with an ambitious account plan,
with expectations of significant revenue, but customer business reversals
early in the year caused a delay of plans. Since only the Account manager and
the Prospector are committed to this account, the resources planned for
projects can be diverted to other opportunities without negative impact on
anybody's metrics. The AM is able to keep the customer satisfaction high
through responsive maintenance and support service. The prospector maintains
relationships, but spends less time there.
Another account might be the reverse, expectations were not high, but the
prospector found some new opportunity that had been unknown at the time of
annual Account Team planning. The Account manager is not strapped with lack
of resources. A WINNING TEAM can be quickly assembled to respond to the
engagement, and when it is complete, is reassigned to another opportunity.
The Account P&L pays only for what it uses.
THE LAST WORD:
How can we lose if we goal a set of highly experienced diplomats to find every
possible opportunity we could pursue, goal a group of pragmatists to select
those we have the skills and best probabilities to win, goal a group of
creative tigers to win every engagement on their plate, and then goal the
final group of cool heads to make darn sure the other three groups don't muck
up anything in their accounts.
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