COVID-19 Sales Recovery Round Table · Sales Roles & Structure Sales Process Sales Deployment...

Page 1 © 2020 SalesGlobe

April 24, 2020

www.SalesGlobe.com(770) 337-9897+44 (0)20 7250 4754

COVID-19 Sales Recovery Round Table

https://www.salesglobe.com/covid-19-rapd-response/


Only 36% of organizations have a plan to address sales compensation.

Over half of organizations have defined to the sales team how to engage with customers.

To back up these assurances, leadership has moderate to high trust, strongest in smaller companies.

While almost half have assured the sales team of compensation action.

The top considerations are quotas, performance measures, and thresholds.

Of which, the most implemented so far are performance measure changes and and quota adjustments.

Organizations have shifted from selling to helping and refocusing on less-impacted segments.

Most expect lower performance this year and nearly half plan to minimize compensation impact.

Customers

Communication

Compensation

COVID-19 has put sales organizations in fast response mode, looking at compensation and beyond for answers.

Most organizations are communicating proactively butonly 15% have communicated compensation actions.

The Big Story

Organizations are focused on adjusting performance measures and quotas

© 2019 SalesGlobePage 3

6%

10%

11%

14%

18%

22%

36%

44%

46%

Milestone bonuses

Increased compensation kickers

Using recoverable draws

Shifting out quota seasonality to later in the year

Using non-recoverable draws

Sales bonuses

Lower plan tresholds

Adjusting performance measures

Adjusting quotas

What sales compensation actions are being CONSIDERED in response to the COVID-19 crisis?

• On average, organizations are considering 2-3 actions

5%

6%

7%

9%

11%

13%

19%

24%

27%

Milestone bonuses

Increased compensation kickers

Using recoverable draws

Shifting out quota seasonality to later in the year

Sales bonuses

Using non-recoverable draws

Lower plan tresholds

Adjusting quotas

Adjusting performance measures

What sales compensation actions are being IMPLEMENTED in response to the COVID-19 crisis?

• On average, organizations have only implemented one action so far


Bottom-Up

Top-Down

Top-Down

Roles

Engagement

Corporate Goal

First Level Allocation:Markets and Business

Units

Second Level Allocation:

Regions

Third Level Allocation:Front Line

Bottom-Up

Investor ExpectationsBusiness Requirements

People

The Quota Success Model

Sales Capacity

Time

Talent

Workload

Market Opportunity

Segments

Macro Environment

Offers


Approaches

Changing to Discrete Quota Periods

Shifting Seasonality to Later in the Year

Adjusting the Annual Quota

Shortens the measurement period and allows updated goals for future periods based on new market information.

Why

Primary Approaches for Addressing Quotas During COVID-19

Pushes the annual goal out with a new seasonality later in the year. Allows time for future adjustments.

Recognizes an overall down year. But this is a long-term commitment to an evolving situation that requires accurate forecasting.

Invoke Mega Deal or Bluebird ProvisionsFor businesses or segments that have greatly exceeded quota (e.g., food, beverage, pharma).

Do Nothing NowAt least 50% of organizations are trading on trust and reserving goal changes until there is more visibility. Only 5% communicated immediate quota actions.

Page 6 © 2020 SalesGlobePage 6 © 2020 SalesGlobe

Measures

Level

Frequency

Revenue, Profit, Units

Customer Mix, Product Mix

Milestones, Activities, Events

Key Sales Objectives

Performance Measures Cubed


Approaches

Milestone Measures

Deals Secured Beyond the Curve

Team Measures

Focuses on measures controllable by the sales team that advance the customer relationship. Helping rather than selling.

Why

Primary Approaches for Addressing Measures During COVID-19

Looks to the future, often with concessions on price and terms.

Connects the sales team as a group and diversifies risk.

Renewals and Debt ManagementControllable measures that increase financial security of the organization.

Shifting Furloughed Base to Incentive Measures

Partial furlough (one day a week) for sales reduces cost while shifting increased pay to variable incentive.


rethink

Taking ActionSalesGlobe COVID-19 Resource Pagehttps://www.salesglobe.com/covid-19-rapid-response/

Leading Through COVID-19: Addressing Your Real Sales ChallengeWhite paper on the resource page

COVID-19 Daily Sales HackDaily tips on the resource page

COVID-19 Sales Recovery Assessment and Action Planhttps://www.salesglobe.com/covid-19-sales-recovery-assessment/Mark Donnolo

[email protected]

Michelle [email protected]

https://www.salesglobe.com/covid-19-rapd-response/


The COVID-19 Sales Recovery Assessment: Planning Your Phases to Successful RecoveryWe need a foundation to think about how to approach COVID-19 from a sales discipline perspective. The Revenue RoadmapSM which provides an integrated view of the four major competencies of successful sales organizations:

• Insight (on customers, the market, and internal performance).

• Sales Strategy (that determines direction for the organization in terms of customer and product focus).

• Customer Coverage (that defines the organization's routes to market, sales organization and roles, and sales process).

• Enablement (that supports the upstream disciplines through recruiting, development, technology, and incentive compensation).

Typically, organizations work from Insight through Sales Strategy, Customer Coverage, and Enablement to create their growth plans. In this environment, we can use The Revenue RoadmapSM as a guide to provide a rapid response to the problem and to plan for successful recovery.

These ratings represent your organization’s performance in each area. The four phases indicate approximate timing across companies but review your performance according to where your organization currently is. Review these results with your team, compare results and determine potential actions. Schedule a complimentary review and discussion with SalesGlobe to discuss recommended approaches based on your specific challenges.

The Revenue RoadmapSM

Insight

Voice of the Customer

MacroMarket

Environment

Competitor Performance

Business Performance

Enablement

Sales Strategy

Products & Services

Segmentation & Targeting

Value Proposition

Approach to Market

Customer Coverage

Sales Channels

Sales Roles & Structure

Sales Process

Sales Deployment

Incentive Compensation

& Quotas

Recruiting & Retention

Talent & Development

Tools & Technology

Charts an actionable growth plan.

Aligns execution with the growth strategy.

Provides information for planning and strategy.

Matches roles, resources, and process to customer needs.

Phase 1- Acclimation Phase 2- Planful Action Phase 3- Building and Adjusting Phase 4- Planning for Recovery

https://www.salesglobe.com/covid-19-sales-recovery-assessment/


COVID-19 Sales Recovery Assessment: Phase 1- Acclimation

Assessment PointPhase 1- Acclimation (Approximately Weeks 1 to 2)

Grade


1. Our organization communicated with customers at the start of the crisis about our approach to work with them.

2. Our sales team connected with customers at the start of the crisis to get insight on their needs by understanding rather than selling.

Business Performance Planning

3. We have provided direction to the sales team on the approach and procedures for updating forecasts at an account level.

4. We are reviewing sales forecasts for the next quarters to prepare for re-forecasting as visibility improves.

Value Proposition

5. We have modified our value propositions to address customer needs during this period.

Sales Process

6. We are firming-up close-in sales opportunities and determining any necessary adjustments to secure the business.

Incentive Compensation and Quotas

7. We have addressed the sales team’s financial concerns with clear messaging and building trust while we are getting further visibility.

8. We have formed a compensation advisory team focused on actions related to this crisis.

Talent and Development

9. Our sales leaders connected with the sales team at the start of the crisis with a clear leadership message about the plan ahead, even if short-term.

10. Our sales leaders are providing, close support to the sales team with intentional interactions.



Assessment PointPhase 2- Planful Action (Approximately Weeks 3 to 4)

Grade


1. Our organization is creating a customer communications and feedback campaign that considers key audiences, evolving messaging, proof sources, modes, and calendar.


2. We are providing guidance on forecasted performance for the next quarters based on increased visibility.

Products & Services

3. We are making rapid adjustments to our products and services to best meet customer needs during the crisis.

Value Proposition

4. We have formed a customer ideation team to create overall strategies to help customers.

5. We have implemented special offers, pricing, or policies related to this crisis.

Sales Process

6. We are focusing the sales team on building pipeline beyond the curve and are measuring milestones, which may be linked to compensation.

7. We are working on rapid strategic account planning to determine how to help customers according to their specific situations and provide longer-term value.


8. We are developing and communicating the first wave of compensation actions that may include milestone bonuses, lower thresholds, and goal shifts to future quarters.


9. Our organization is creating an employee communications and feedback campaign that considers key audiences, evolving messaging, proof sources, modes, and calendar.

10. Our sales leaders are working with the team and coaching according to a plan.

COVID-19 Sales Recovery Assessment: Phase 2- Planful Action



Assessment PointPhase 3- Building and Adjusting (Approximately Weeks 4+)

Grade


1. Our organization is further developing the customer communications campaign messaging based on the evolving environment, a better understanding of customer needs, and our updated plan.


2. We have assessed our performance-to-date and are re-forecasting sales for the next quarters based on increased visibility.

Products & Services

3. We are in the process of modifying or developing products and services that best address customer and market needs during the crisis.

Segmentation and Targeting

4. We have identified the segments or industries that provide the greatest opportunity for growth and those that we can help with their challenges in the current environment.

Value Proposition

5. We have revised or refined our value propositions to customers at the company level and the sales front line.

Sales Channels

6. We are actively partnering with complementary organizations to combine our capabilities to improve our approach to market and better meet customer needs.

Sales Process

7. We are executing our rapid strategic account plans and working directly with customers to get insight, propose ideas, and refine approaches.

Sales Deployment

8. We are assessing territory and account assignments to heat map opportunities and are re-assigning accounts to sales resources for optimal coverage.


9. We are continuing to evaluate compensation actions and consider further action with increased visibility that may include goal adjustments for the year and core plan changes.


10. Our organization is further developing the employee communications campaign messaging based on the evolving environment, a better understanding of our opportunities, and our updated actions on enabling the organization.

COVID-19 Sales Recovery Assessment: Phase 3- Building and Adjusting



COVID-19 Sales Recovery Assessment: Phase 4- Planning for Recovery

Assessment PointPhase 4- Planning for Recovery (Approximately Weeks 4+)

Grade


1. We are gaining insight from our customers about how their needs may evolve post-COVID-19 and how we can assist them with their recovery, and are using that to inform our offer development and our sales model.

2. We are assessing the market broadly to look for trends that indicate how we might further develop our offers and sales model for post-COVID-19 recovery.


3. We are estimating opportunity and business performance for the end of the year and into next year with assumptions on our recovery offers.

Products & Services

4. We are in the process of modifying or developing products and services that best address customer and market needs for the post-crisis recovery.

Segmentation and Targeting

5. We are identifying the segments or industries that we can best serve with our recovery offers.

Value Proposition

6. We are developing our value propositions for post-crisis recovery to address the needs of customers who are resuming business or rebuilding.

Sales Channels

7. We are working with our traditional partners and new partners with complementary organizations plan for recovery offers, marketing, and sales models.

Sales Process

8. We are evaluating how what we have learned about virtual selling during the crisis can be applied to further developing and improving our post-crisis recovery sales model.


9. We are planning ahead for post-recovery incentive compensation that aligns with our potential changes in sales strategy and sales model.


10. Sales leadership is incorporating new learning about the sales model and sales process into how they coach the organization for success during the recovery.



COVID-19 Sales Recovery Assessment- Discipline ViewSummary Results Name David Worley Company PwC

Discipline

Average

Score Letter Grade

Lowest Grade

in that

Discipline Actions to Improve Your Recovery Preparation

Voice of the Customer 100.0 A A n/a

Business Performance Planning 90.0 A CProvide direction to the sales team on the approach and procedures for updating forecasts at an account level. Assess your performance-to-date and re-

forecast sales for the next quarters based on increased visibility.

Products & Services 100.0 A A n/a

Segmentation & Targeting 100.0 A A n/a

Value Proposition 97.0 A B Implement special offers, pricing, or policies related to this crisis.

Sales Channels 87.5 B C Work with your traditional partners and new partners with complementary organizations plan for recovery offers, marketing, and sales models.

Sales Process 89.0 B CFirm-up close-in sales opportunities and determine any necessary adjustments to secure the business. Focus the sales team on building pipeline beyond

the curve and measure milestones, which may be linked to compensation. Evaluate how what you have learned about virtual selling during the crisis can

be applied to further developing and improving your post-crisis recovery sales model.

Sales Deployment 0.0 F F Assess territory and account assignments to heat map opportunities and re-assign accounts to sales resources for optimal coverage.

Incentive Compensation &

Quotas67.0 F F

Form a compensation advisory team focused on actions related to this crisis. Develop and communicate the first wave of compensation actions that may

include milestone bonuses, lower thresholds, and goal shifts to future quarters. Continue to evaluate compensation actions and consider further action

with increased visibility that may include goal adjustments for the year and core plan changes. Plan ahead for post-recovery incentive compensation that

aligns with your potential changes in sales strategy and sales model.

Talent & Development 89.2 B C

Create an employee communications and feedback campaign that considers key audiences, evolving messaging, proof sources, modes, and calendar.

Further develop the employee communications campaign messaging based on the evolving environment, a better understanding of your opportunities,

and your updated actions on enabling the organization. Incorporate new learning about the sales model and sales process into how you coach the

organization for success during the recovery.



COVID-19 Sales Recovery Assessment- Phase ViewSummary Results Name David Worley Company PwC

Phase

Average

Score Letter Grade

Lowest Grade

in that Phase Actions to Improve Your Recovery Preparation

Phase 1- Acclimation (wks 1-2) 86.0 B FProvide direction to the sales team on the approach and procedures for updating forecasts at an account level. Firm-up close-in

sales opportunities and determine any necessary adjustments to secure the business. Form a compensation advisory team

focused on actions related to this crisis.

Phase 2- Planful Action (wks 3-4) 91.0 A D

Implement special offers, pricing, or policies related to this crisis. Focus the sales team on building pipeline beyond the curve

and measure milestones, which may be linked to compensation. Develop and communicate the first wave of compensation

actions that may include milestone bonuses, lower thresholds, and goal shifts to future quarters. Create an employee

communications and feedback campaign that considers key audiences, evolving messaging, proof sources, modes, and calendar.

Phase 3- Building and Adjusting

(wks 4+)84.5 B F

Assess your performance-to-date and re-forecast sales for the next quarters based on increased visibility. Assess territory and

account assignments to heat map opportunities and re-assign accounts to sales resources for optimal coverage. Continue to

evaluate compensation actions and consider further action with increased visibility that may include goal adjustments for the

year and core plan changes. Further develop the employee communications campaign messaging based on the evolving

environment, a better understanding of your opportunities, and your updated actions on enabling the organization.

Phase 4- Planning for Recovery

(wks 4+)91.0 A C

Work with your traditional partners and new partners with complementary organizations plan for recovery offers, marketing,

and sales models. Evaluate how what you have learned about virtual selling during the crisis can be applied to further

developing and improving your post-crisis recovery sales model. Plan ahead for post-recovery incentive compensation that

aligns with your potential changes in sales strategy and sales model. Incorporate new learning about the sales model and sales

process into how you coach the organization for success during the recovery.



why?

rethink

We are rethinking sales.SalesGlobe is a sales innovation firm that solves challenging sales problems. We work with our clients to implement solutions that give them a significant ROI.

We started SalesGlobe to go beyond the benchmarking and common practices that many firms dispense to their clients as the answer.

We are committed to bringing new problem-solving approaches to sales effectiveness that make a difference and deliver results for our clients.

So we approach each client assignment as a special creative problem-solving opportunity. We leverage left brain and right brain creative approaches to develop a solution that will give our client a differentiated advantage and a real return on their investment.

We’ve spent a long time in business. And during that time we’ve seen too many companies replicating competitive practices and repeating old approaches rather solving problems in a way that would produce innovative solutions. We asked,

Why do companies repeat the same old solutions?

Why do they use benchmarks and current practices as the answer?

Why do they leave themselves vulnerable to competition?

• Sales Strategy and Go-to-Market

• Account Segmentation and Targeting

• Voice of the Customer Insight

• Sales Process Optimization

• Sales Organization Design

• Channel Programs

• Sales Capacity and Goal Design

• Talent Assessment and Planning

• Strategic Account Programs

• Sales Compensation

• Quota Setting

• Technology Readiness

Our Story- Sales Innovation

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