Donna StellaPartner A.T. Kearney
Raising the Bar for CPG Sales Talent
July 16, 2009
Sales Force Talent Management Study: “Talent Triage”
4A.T. Kearney 7/07.2009/46814A
GMA / NEW Sales Force Talent Management Study
“To enable the GMA and NEW’s corporate members and their employees to succeed in an ever-changing marketplace by
identifying, developing and retaining a high-performing and diverse sales force.”
Primary Objectives Develop an industry perspective on the leading practices in sales force talent management
Understand the importance of CPG sales force diversity to business outcomes
Strengthen business results with a pragmatic, actionable roadmap for CPG companies to improve their sales force talent management approaches
Vision Statement
A.T. Kearney was selected to partner with the GMA and NEW to complete the “Talent Triage” study given our deep experience in the Sales & Talent space
6A.T. Kearney 7/07.2009/46814A
What talent is required of top sales people today?
CreativeThinker /Innovator
General Manager
Magician
Road WarriorClientRelationship
Manager
Intelligence
Politician
Stand-upComedian
Stamina
7A.T. Kearney 7/07.2009/46814A
Retailers told us that top CPG sales people are analytical thinkers with a general management view of the business
Strategic Strategic Merchandising Merchandising
SkillsSkills
Core Sales Core Sales CapabilitiesCapabilities
Leadership Leadership & Personal & Personal CharacteristicsCharacteristics
Strategic Merchandising Skills: General Management – Guide
managerial action in the face of uncertainty / complexity
Analytics – Analyze financial data to provide sound business advice
Category Management – Contribute to cross-category strategies and promotion
Consumer Insights – Provide information on segmentation, target marketing, creative merchandising
Partnership – Identify opportunities to increase volume and revenue, raise profitability, and reduce unnecessary costs
Cross-functional Collaboration – Understand why and how functions interrelate; build cross-functional teams
Forward-Looking CPG Sales Competency Model
8A.T. Kearney 7/07.2009/46814A
Sales Talent Management plays a vital role in driving profitable growth
A.T. Kearney Sales Force Optimization Framework
We have helped clients achieve double-digit revenue and profit improvement with SFO
• Processes to improve quality, productivity and provide a differentiated customer experience
• Supporting systems and tools to optimize sales productivity and effectiveness
• Alignment of go-to-market strategy with customer needs and business/marketing strategies
• Clearly defined sales talent, organization capabilities and structure including size, roles, responsibilities and decision rights
Strategic Focus
IT/ SalesToolsCompensation/
Recognition
TrainingMetrics/
Accountability
LeadGener-ation
& Mgmt.
RFPResponse
AccountSet-Up/Pricing
ServiceDelivery/
RelationshipMgmt.
Post-Sales
Support
Sales Fore-
cast’g & Mgmt.
Strategy/Planning
Capabilities/ Resources/Deployment
Enablers
Supporting Processes
Environmental Drivers• Market Pricing• Fundamental Economics• Market Dynamics
• Product• Promotion• Regulation
• Existing Channels• Geographic Scope• Buyers/ Intermediaries
CustomerStrategy
SupportingCapabilities
Go-To-MarketApproach
We use this framework to driveprofitable growth
for our clients
Staffing/ Skills
Organization Design
(Structure/Size)
Channels
• Business and Market Contexts
Sales Talent Management
9A.T. Kearney 7/07.2009/46814A
Talent Management Lifecycle
The talent management lifecycle involves strategically identifying, developing and retaining sales talent
5 Strategic Enablers Provide Support Throughout Talent Management
Lifecycle
2Develop Talent
3Retain / Deploy Talent
1Attract / IdentifyTalent
Diversity
Tools & Technology
Transparent Communication
Executive Sponsorship
Incentives
Metrics & Measurement
Sales Talent Pool
Objective: Having the right sales talent in the right place at the right
time to achieve business objectives
11A.T. Kearney 7/07.2009/46814A
What did we learn from the Sales Talent Management Study?
• CPG sales superstars have general management mindset – “thinkers,” not just “doers”
• Sales talent management is considered highly ineffective today in most CPG companies – only 9% of responses gave a rating of sales talent management activities as “highly effective”
• Stand-alone talent and diversity programs do not work; talent management must be closely tied to the rest of the organization and consistently applied
• Holistic sales talent management programs are scarce – Only 8% of CPG companies reported having a strong holistic sales
talent management program
• Effective talent management blends formal process with personal engagement
– Smaller CPG companies tended to be culture-driven; large CPG companies tended to be process-driven, whereas best-in-class companies combined both
• Incorporating a broad concept of diversity (demographics, experiences, perspectives) into corporate DNA drives innovation, enhances market insight, and increases access to top talent
• CPG companies are behind the diversity curve – Profile of participating companies- More male employees than US workforce- More middle-aged employees than US workforce- More Caucasian employees than US workforce
Leading Sales Talent Management Practices
HR
Build The Right Sales Force Skills
Drive a ConsistentMessage
Focus on the Process and the Person
Capture the Benefits of Diversity
12A.T. Kearney 7/07.2009/46814A
Gender Diversity Age Diversity Racial Diversity
(Sample of 31 Companies) (Sample of Companies) (Sample of 28 Companies)
CPG companies should embrace inclusivity and diversity of thought to benefit from changing demographics
Innovation
Marketing Edge
Access to Talent
• Diversity promotes innovation and resilience, which helps attract potential candidates and increase employee productivity
• Reflecting the population’s demographics helps improve market insights and marketing / product development
• To maintain access to the full talent pool in light of workforce demographic shifts, companies must provide a diverse work environment
US Working Population:
54%US Working Population:
23%
US Working Population:71% in 2000; 51% in 2050
CPG Companies are Behind the Diversity Curve…• Minorities are under-represented compared to US workforce
• Basic diversity programs are in place, but not integrated throughout Talent Management Lifecycle
Source: US Bureau of Labor Statistics
…but can benefit from highly diverse workforces
13A.T. Kearney 7/07.2009/46814A
Study participants indicated diversity programs are in place – but most are stand-alone and not linked to broader talent management and corporate strategy
… Diversity Tracking
Gender Race Sexual Orientation
Age
…Targeted Recruiting
Gender Race Sexual Orientation
Age
…Targeted Affinity Groups
Gender Race Sexual Orientation
Age
Targeted Diversity Practices(% of Surveyed Companies Reporting Specific Diversity Programs)
(n=26) (n=21) (n=21)
Source: GMA/NEW/A.T. Kearney 2009 Sales Talent Management Survey
14A.T. Kearney 7/07.2009/46814A
Different mindset on sales talent expectations• “We used to hire people in account management roles, and
expect them to do it all—be successful, hit their numbers, grow the account. Now the primary question for sales people is: “How can you make full use of internal resources to help our company and its customers to succeed?”
Driving strong performance and satisfying careers• “The objective components of talent management [such as
salary and bonuses] are easy. It is the emotional engagement that is harder to achieve. Depending too much on rigid, formal talent management activities will meet the letter, but not the spirit, of a talent management strategy.”
Leveraging diversity to drive business• “This industry is dominated by white males. Diversity means more than meeting a hiring
quota, it means creating collaborative, sustainable and mutually-beneficial relationships.”
What did CPG executives have to say?
Quotes from CPG Sales and HR Executives
15A.T. Kearney 7/07.2009/46814A
What did Retail executives have to say?
Quotes from Retail Merchandisers How CPG sales people can differentiate themselves
• “CPG sales people differentiate themselves by leveraging their entire organizations to meet collaborative goals”– Retailers seek CPG sales forces that can team with them and provide
support across functional areas to drive business performance
Desired sales experience• “We like to interact with general management talent with experience in
different geographies, functions and categories”– Pushing product and pleasing the buyer is no longer sufficient.
Retailers expect CPG Sales talent to not only provide consumer insight, category management and merchandising, but more of a general management capability to improve the overall business
Desired sales skills• “CPG companies with top sales force talent—people who think beyond their
brand, the standard promotions and new product introductions, toward a collaborative relationship with tailored solutions for the retailer’s most important segments—will increase both the retailer’s and the CPG company’s sales volume”– Retailers look to CPG Sales talent for solutions, not just products and for
diversity to fully penetrate the market
16A.T. Kearney 7/07.2009/46814A
34 CPG companies participated in the study – many requested an in-person debrief with Sales and HR leaders
Food (23)
Non-Food (9)
Agencies(2)
Retailers (8)
Study Participants: Manufacturers, Sales Agencies, and Retailers
17A.T. Kearney 7/07.2009/46814A
1. Can you articulate your sales talent strategy right now? 2. Can you name the 3 things your top customer wants from your sales rep?3. Do you have tailored skills and competencies by customer segments?4. Does your sales force reflect consumer diversity?5. Can you identify the next three potential heads of sales? 6. Do all your highest performing sales reps have experience outside of sales?7. Do you measure sales talent management on your leadership dashboard?8. Can your sales reps articulate the category strategy and shopper experience
needed to sell more of your product? 9. Have you ever had to replace a sales rep at the request of a customer? 10. Do your customers tell you that you are helping them drive their business?
“No” to any of these questions points to untapped opportunities to make your sales organization more effective
Yes No
Diagnostic: How strong is your sales talent management?
How can you identify and act on Sales Talent Management opportunities in your organization?
18A.T. Kearney 7/07.2009/46814A
Brian Lynch, Director, Sales & Sales
Promotion/Industry Affairs
Joan Toth, Executive Director
Sales & Talent Experts• Beth Bovis• Donna Stella• Melanie Mityas• Julia Bouvet• Jamie Ponce
Marketing/Communication• Jim Brown• Sean Flynn• Patricia Sibo• Kevin Peschke
Robert Hill, President & CEO
Rena Holland, Group Director, Human Resources
Sherri Toney, VP, Diversity & Inclusion &
Engagement
Denny Belcastro, VP, Customer Development
& Industry Affairs
A high level of collaboration made this study a success – Thanks to all!!!
Study Team Members