What Are You Doing to
Protect Your Most Important
Asset – Your Sales Talent?
Presented by:
Scott Hudson – VP Sales/Marketing, Chally
Chris Sena – VP of HR Cardinal Health
Mark Kramer – CEO Laird Plastics
Let’s Meet Our Speaker
Scott Hudson – VP of Sales/Marketing at Chally
•
Scott joined Chally in 2006 and has successfully led Chally through its own
Sales/Marketing Transformation resulting in the company’s best financial results in
over their 35+ year history. He specializes in workforce effectiveness and productivity
with a particular interest and focus in the area of sales transformation.
•
Previously, he led the sales, marketing, and product development teams as the
Solutions Executive at Reynolds and Reynolds, the leading provider of Systems and
Document Management solutions to the Automotive Retail market.
•
Chally is a Global, Sales Force Potential and Performance Measurement Firm Utilizing
our Industry Leading Research, Analytics and Advisor Services to help our clients
minimize risk associated with key talent management decisions.
Agenda
• Talent Trends and How Analytics Can Improve Sales Talent Management
Decisions
• Key Trends and Best Practices within Sales Talent Management
• Cardinal Health's Sales Transformation Journey
• Sales Talent is available in places you may not of thought of
Talent Trends and How Analytics Can
Improve
Sales Talent Management Decisions
The New Workforce
Ten forces shaping the future workplace
1.
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7.
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9.
10.
Shifting workforce demographics
The knowledge economy
Globalization
The digital workplace
The ubiquity of mobile technology
A culture of connectivity
The participation society
Social learning
Corporate social responsibility
Millennial in the workplace
Power of HR Analytics
Analytics helps navigate changing
workforce issues by mining data for
actionable intelligence.
Analytics provide hard evidence of the
business impact of people investments.
Those organizations adopting “data-driven decision making” achieved
productivity gains that were 5-6% higher than those who did not.
Study of 179 large companies by Professor Erik Brynjolfsson, MIT, 2010
Did you see the movie MoneyBall?
A very creative and unusual use of statistical
analysis on the part of the Oakland A's GM, Billy
Beane. These stats enabled Beane to discern the
unique talents of undervalued players no one
else wanted.
"The minute you feel like you have to do something, you're screwed; that you
can always recover from the player you didn't sign, but you may never recover
from the player that you did sign that you shouldn't have”
“The math works,” Beane says. “Over the course of a season, there's
some predictability to baseball. When you play 162 games, you
eliminate a lot of random outcomes.”
Applications for Analytics
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Talent acquisition
Succession planning
Retention/Turnover
Performance management
Onboarding
Mentoring/Coaching
Diversity and Inclusion
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Leadership Development
Job function training
Sales readiness
Compliance training
Social learning
Learning modality
Tuition assistance
Systems consolidation
Recognition and Rewards
Compensation
Customer service
Wellness programs
Key Trends and Best Practices Within
Distribution Sales Talent Management
Maximizing Customer Engagement
Quality (CEQMax)
The Distribution Business Challenge
Post-recession markets have changed the game permanently:
Little To No
Competitive Advantage
Digital
Impact
Your competitive advantage can only come from your
SALESPEOPLE
NOT the product or service offered
We Use The Wrong Science of Recruiting
and Selecting Salespeople
We keep looking for “sales stars”
• What’s wrong with that? It doesn’t work
• Why?
• We can’t predict who they are because different sales
stars are unique and great for different reasons
• Even though their results are the same
• Even if you could predict who they are, there aren’t enough to
go around
The Right Science
• Forget the stars … look for “Above Average”…
CANDIDATES THAT HAVE LOW PROBABILITY OF FAILURE
• Assuming the customer has a real need, sales success depends
on:
– Carrying out the important sales and service tasks
– Not making critical mistakes
• Sales does requires talent and certain skills
– Many candidates don’t have the right combination
The Right Science
We succeed if we eliminate the candidates:
• Who can’t carry out the important
tasks
• Who will make critical mistakes
Why Benchmarking and Traditional Competency
Modeling Can Fail
2007-2009 Listing of many of the World’s Top Golfers
Tiger Woods
Phil Mickelson
Paul Casey
Kenny Perry
Sergio Garcia
Henrik Stenson
Geoff Ogilvy
Steve Stricker
Jim Furyk
Vijay Singh
The following “logical” benchmark competencies (supposed predictors of success) are
officially tracked to measure professional golfers as a measure of success;
a) Driving accuracy
b) Driving distance
c) Greens in regulation
d) Ball proximity to hole
e) "Scrambling"
f) Putts per round
g) Sand saves
Traditional Methods Don’t Always Work!
Would results like this get you excited
about selecting this person?
These were Tiger Woods’s results when he was #1 Golfer
in World!
#83 in driving accuracy
#38 in driving distance
#71 in greens in regulation
#68 in ball proximity to hole
#9 in scrambling
#38 in putts per round
REJECTED
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These “competencies” do not predict – scores do!
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What makes Tiger different is he didn’t make fatal errors!! Emphasis on didn’t!!
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How few bogeys, double bogeys, or worse they don’t get ... round after round after round
The Solution: The Good News
The same actuarial research, science, and predictive statistics that the
insurance companies use to predict risk:
CAN also more accurately identify:
• Who can’t do the job, or
• Who will make critical mistakes!
The Proof
Applying Actuarial Science to Sales Selection
Today’s Typical Sales Force
ABC Company: 200 Salespeople and $200M in Sales*
5% improvement
here gets you $5.2M
The
Problem
$6 Million
$150K/person
5% improvement here
gets you $4.5M
$90 Million
$750K/person
$104 Million
$2.6M/person
= $200 Million
Total Sales
The Proof
Applying Actuarial Science to Sales Selection
Replacing the Bottom 20% with just “Above Average” Candidates
5% improvement
here gets you $5M
ABC Company: 200 Salespeople and $200M in Sales*
5% improvement
here gets you $5M
$114 Million
$104 Million
$228Million
Million
==$218
TotalSales
Sales
Total
Best Practices of World Class Distribution Sales Forces
Achieving the Strategic Sales Standards in Growing Business
CustomerDriven
Attitude
Accounts
Skills
Process
Technology
Interaction
and
Integration
Done:


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
Right customer
Right offering
Right effort
Right message
Right rewards
…
So what’s next?
The formula for sales success is simple
The right
Raw Talent
The right
Critical Moves
X
Sales
Success
=
Our sets of critical moves for sales professionals
Navigate
the customer's
networks
Engage the customer
for the long-term
Prepare
and follow-up
each interaction
Speak with the
customer
Reconnaissance
Clinical Narrative
Itinerary Planning
Entry
Map
Social
Narrative
Preparation
Connecting
Charting the Course
Capability Building
Debrief
Opening
Networking
Access
Follow-up
Message & Dialog
Collaboration
Objection Handling
What are critical moves?
• They describe an action - not a result, skill or capability
• They instruct how results are achieved--how skills/capabilities are applied
• They are not all the actions sales professionals or Sales Manager do
Closing
Exit
How to Make it Work
Sales Expertise: Validating Profiles
All sales roles are
not the Same!
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Inside Vs. Outside
Direct Vs. Indirect
Hunter Vs. Farmer
Product Vs. Solution
1. Chally Pre-Validated Profiles
Chally has built an extensive library of sales roles based on data collected from over 500k sales professionals. There are 14 sales roles that
we have defined. These are frequently used when organizations find their business model has changed, and they need expertise help in
defining new roles.
2. Creating Client Specific Custom Profiles
For organizations with large enough incumbent populations, and a defined business model, we typically run validation studies. These studies
identify those 4-8 critical behaviors that differentiate top and bottom performers.
Research on What it takes for Distribution Sales Success
Analyses based on data from Chally historical validation
studies over more than 10 years
Focus on Sales roles only
Over a dozen organizations from the largest to smallest
Over 25 separate roles/studies (e.g., CAMs, AMs, TSRs, inside
sales)
Approximately 4000 individuals
Performance metrics include gross sales, target achievement,
performance ratings, etc.
By correlating assessment results against performance we identified competencies at
three levels:
COMPETENCIES THAT DIFFERENTIATE “TOP PERFORMERS”
Develops sales leads
Penetrates accounts by increasing consumption of products
Answers objectives by reinforcing product benefits
Provides personal customer attention and support
Creates positive outcomes using proven approaches
KEY COMPETITIVE EDGE COMPETENCIES FOR SELECT POSITIONS
Qualifies prospects with targeted probes
Closes through a formula approach
Thrives on stress and change
MINIMUM REQUIREMENTS FOR “ACCEPTABLE” PERFORMANCE: “TABLE STAKES”
Makes persuasive product presentations
Partners as a customer advocate
Takes a positive approach to customer concerns
Maximizes results by pushing for quota attainment in distribution
Navigate
the customer's networks
Engage the customer for
the long-term
Prepare & follow-up
each interaction
Speak with the customer
Maximizing customer engagement quality and sales
force impact means answering three key questions
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Do we have the right Sales Professional
and First Line Manager talent in our
roles?

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No – Then focus on hiring/selection
Yes – Then focus on learning/coaching
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What are the learning and coaching
priorities that will have the largest
performance impact?
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How do we train and sustain the critical
behaviors – for Sales Professionals and for
First Line Managers?
Let’s Meet Our Speaker
Chris Sena – VP Human Resources at Cardinal Health
For Cardinal Health’s $8B Channel Management organization, Chris is responsible for
leading a team of senior HR business partners, developing and implementing HR strategy,
executing strategic HR initiatives, and creating an inclusive and winning culture. Chris is
currently a member of the Channel Management Senior Leadership Team, the Medical
Segment Extended Leadership Team, and the Cardinal Health HR Operating Committee.
Chris joined Cardinal Health in February 2009 as Sr. Director, Human Resources for the
$1.2B Nuclear Pharmacy Services business unit. In 2010, Chris was promoted to Vice
President, Human Resources ‐ a role with significantly expanded responsibilities. As Vice
President, Chris was responsible for leading HR and training teams, setting and executing
HR strategy, and creating an “employer of choice” culture.
Sales Transformation
Nuclear Pharmacy Services
Chris Sena
VP, HR
January 2013
© Copyright 2012, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE
trademarks or registered trademarks of Cardinal Health.
Leading provider of products and services across the healthcare
supply chain with an extensive footprint across multiple channels
Cardinal Health – Essential Facts
60,000
50%
sites
delivered to
daily
of U.S. surgeries
use our products
and services
32,000
#21
employees with
direct operations
in 10 countries
on Fortune
500 list
$108B
FY12 pro
forma
revenue*
*An estimate of the pro forma revenue for fiscal 2012 in accordance with generally accepted accounting principles with
adjustments expected to reflect each company as a stand-alone entity. The estimate is based on assumptions that management
currently believes are reasonable, but actual revenue may vary materially from the estimate.
30
Nuclear Pharmacy Services
Create a culture where our ability to attract,
hire, and develop diverse talent differentiates us
from our competition and drives competitive
advantage in the marketplace.
31
Landscape
Healthcare
Consolidation
• Growth of Integrated
Delivery Networks
(IDN)
32
Strong Pipeline for
New Products
• Many in clinical trials
• Complex products
Need for Better
Team Coordination
• Overlapping of
responsibilities
Change Management
- Kotter’s 8 Step Process for
Change
33
Solution Overview
1
Talent
Inventory
Create a Sense
of Urgency
4
Staffing
Success
Profiles
3
Coaching &
Dev
34
AchieveGlobal & HR
Chally Partnership
2
Assessment
Results
Anchor the
Change
Creating a Sense of Urgency
1. Communicated the need to adapt to changing health care
landscape extensively
–
–
–
Sales team meetings
Regional meetings
National meeting
2. Leveraged articles and customer testimonials
3. Circulated Our Iceberg is Melting
4. What’s the plan?
35
Enabling: Success Profiles
• Leveraged SME panel in
development process
• Highlighted skills and
capabilities sales team would
need to win in the future
• Helped understand the
changing skills and behaviors
needed to meet the demands
of our rapidly changing
markets
36
Who can make the Transformation
• Chally assessed the competency level of sales
team using an online assessment.
• Data was used to assist sales directors
• Give more meaningful feedback to current
employees
• Create group and individual development
plans
• Introduce roles to employees that were more
of a natural fit.
Client Case study - Major Consumer Products Division for a Global Pharmaceutical company
•
Business Issue for Client - Needs team to transform quickly and become more consultative and
solution focused vs. traditional Account Management (Famer/Product) Focused.
•
•
12 align well with traditional model, 6 probable and 4 with low probability
6 can make the transformation, 7 probable and 9 with low probability
Enabling: Assessment Results
• Detailed assessment reports
generated for each
salesperson
•
Manager version also
generated
• Sales leaders discussed
results with each sales rep
•
Gap between assessment and
results kept short
Enabling: Coaching & Development
• Sales leaders leveraged
coaching tool to build
individual development
plans
• Training for new skills and
capabilities
Enabling: Staffing for the Future
• 1st and 2nd interview guides
that targeted new role
profiles
• Behavior based
• Incorporation of Chally
assessment for finalists
• Provides additional insights
• Sales Directors trained centrally over two days in the following
areas:
Enabling: Roll out
1
Tool Introduction &
Training
• Profile construction
• Assessment tools
• Selection tools
• Talent dashboard
• Coaching tools
2
Coaching & Development
Training
• Coaching & feedback
models
• Coaching skill practice
• Development planning
3
Interview Skills
• Behavioral interviews
• Probing
• Scoring
• Calibration
• Legalities
• Skill practice
• Sales Directors and training team rolled out new profiles,
training, and development tools
Anchoring the Change
• Making a new organization stick involved …
• Creating and aligning new compensation plans
• Incorporating new competencies into sales leader “observation”
documents and performance discussions
• Allowing a transitional period for training, meeting new
customers, and meshing with new leaders
• Hiring for new profiles
Progress
• Discipline and focus added to sales interviewing and selection
process
• Good correlation between Chally results and % payout on sales
incentive plans
• Increase in new hire sales performance
• New hires selected with new process and tools have 3 X win
rate
Let’s Meet Our Speaker
Mark W Kramer – President & CEO of Laird Plastics
• 30 years in wholesale distribution in chemicals and plastics
• Includes working with privately held and public companies, both US and
foreign owned, ranging in size from $50M to $1B
• Laird Plastics is the largest independent distributor of plastic stock shapes
in North America with 56 servicing locations across the US and Canada
• Graduate of Bucknell University (BA 1976) and Washington University, St.
Louis (JD – 1979)
• Retired USMC Lt. Col.
WHERE TO ACCESS the NEW sales HIREs?
•
THE RIGHT ‘RAW MATERIAL’ FOR THE TALENT MANAGEMENT PROCESS …
SALES DEGREE AND SALES CERTIFICATE
PROGRAMS …
A BETTER SOURCE FOR YOUNG SALES TALENT
PONDER …
Some 50% of sales workforce (17M people) will retire as the
“Baby Boomer” generation plays out in coming years – an
enormous gap to fill …
THE ACADEMIC VIEW IS CHANGING …
YEARS AGO …
• Liberal Arts reigned
• “Knowledge and Theory”
predominant
• Business Major curriculum
lacked focus on “sales”
• “Selling Profession”
marginalized by society
TODAY ….
• Relevance and practical skills
critical to success
• “Sales Majors” and “Sales
Certificate” programs
increasing
• Over 70 Universities now offer
• “Selling” recognized for
contribution it makes
“THE SALES MAJOR”
• Within the School of Business, some Marketing or Management
Departments now offer degrees with “Sales” as a Major field of study or a
‘Certificate’ Program to complement another major
• For the “Sales Major” - Typically two years of concentrated sales focus:
– All Essential Selling Skills
– Negotiating, Communication, Presentation Skills
– Extensive Role Plays and Competitions
CAUTION …
• According to the SEF, only 70 of 4,370 Colleges and
Universities have a formal sales training program
• At FSU, there are approximately 45,000 students on campus,
5,000 enrolled in the ‘business school’, 1500 in the ‘marketing
degree’ but only 112 graduating with a sales major each year
• THERE IS A NEED TO EXPAND BOTH THE NUMBER OF
PROGRAMS AND THE CAPACITY OF EXISTING ONES
LAIRD’S EXPERIENCE
• Actively recruiting from two universities
– First year, we were unsuccessful
– Have now hired “6”, expect 3-5 more by June, 2013
• Florida State and University of Washington
• School and Staff engagement, classroom presentations,
competition judging, mentoring
“SUCCESS HAPPENS WHEN
PREPARATION MEETS OPPORTUNITY”
F L O R I DA S TAT E S A L E S I N S T I T U T E M O T T O
IN THE FIELD
• Recent Graduates have gone to ATL, DFW, DTW, HOU, PHL and
TPA.
• While young and facing a challenging transition, their energy
and fearless approach to selling quickly compensate.
• All ramped up to acceptable levels of productivity well inside
of a year.
OBSERVED BENEFITS
• All well schooled in selling fundamentals – we were able to go
right to our industry, products, and solutions
• Brought increased energy and work ethic to their locations
• Comparatively low cost of acquisition and low risk of
implementation
• Absorbed values, methods, and preferences without past bias
THE CRITICAL DIFFERENCE
• Wholesale Distribution is an industry whose primary mission
is devoted to Selling
• Our general business model coincides with their career
preferences
– Action, variety, relevance, importance, flexibility
• They can get into the “action” and to where they can “make a
difference” faster in wholesale distribution
HOW TO START
• DISCOVER those schools near you with programs
– http://www.saleseducationfoundation.org/
• VOLUNTEER – to join advisory councils, make class or club
presentations, offer internships and practicums, mentor sales
program students, offer input to faculty on curriculum
• ADVOCATE where programs do not exist
• TAILOR YOUR ON-BOARDING PROGRAM – if you do not
typically hire college graduates
Getting it right can have significant impact –
some observations on sales talent
The right Raw Talent
• 45% more likely to attain
sales quota
• 5 times higher lead
conversion rate
• >20% higher customer
renewal rate
• Significantly better yearover-year results in average
sales or contract value
Source: Independent analyses of companies using Chally’s predictive analytics vs. all others, by Aberdeen Group and CSO Insights
Top performing sales team achieves more
• 50%+ longer face time with
customers
• 50% more topics discussed
during customer visits
• 25%+ higher quality rating
by customers
• 50%-100% higher sales,
market share, growth …
…and incentive payouts
Getting it right can have significant impact –
some observations on rep critical moves
The right Critical Moves
• For example, 6 months after
customer engagement
“learn-practice”:
– 14% higher customer rating
– 10-30% higher sales
performance
• Reps with best execution
had >30% faster uptake
during new product launch
Source: Misc. ZS Associates Performance Frontier analyses 2000-2011
Q&A
Scott Hudson
Vice President Sales and Marketing
3123 Research Blvd., Dayton OH 45420
Direct: 937.610.4313
Cell: 513.520.4187
ScottHudson@chally.com
www.chally.com