WELCOME Giving the Best to the Best Methods to evaluate your top performers

May 24, 2012

Introducing the moderator…

Jeri Meola

President

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Introducing our panelists…

Larry Morgan

Owner

3

Introducing our panelists…

Steve Mihalik

Chief Revenue Officer

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“Sales - An Operational Perspective” May 24, 2012

Stephen Mihalik

Chief Revenue Officer

an operational perspective

It’s A Process

Do Not Let Choices – Confuse Your Process

manage with the numbers – it’s the ultimate motivation

Achieve Optimization

Stay Focused – Get To The Next Level

Manage The Achievements

Pipeline Value

Milestones Achieved

Close Rate

Margin

Up Sell Value

Presentation Delivery

$250,000

10 Pricing

30%

40%

20,000

Basic

$350,000

15 Pricing

35%

50%

40,000

Advanced

Level 1 Level 2

“a numbers game” - cliché or truth?

Math is Math

Prospecting calls Close Rate for Needs-Analysis Meeting 3%

Percentage of needs-analysis meetings that produce solutions-meetings 70%

Percentage of Solutions Meetings that will seriously consider a pricing-proposal 70%

Percentage of closing an account after pricing 50%

Prospect Calls 15

Needs Analysis 0.45

Solutions Meetings 0.315

Pricing Meetings 0.2205

Won Accounts 0.11025

Account Size 40000

Annual $1,146,600.00

Numbers Do Not Lie

Manage Metrics – Metrics Manage People

$

thank you

New thoughts on an old topic-

Maximizing the effectiveness of sales compensation

Larry Morgan, MAIR, SPHR, GPHR

Orion HR Group, LLC

Five critical points

1. Set clear expectations

2. Know the market

3. Use metrics

4. Differentiate top performers

5. Pay quickly and correctly

1) Set clear expectations

Use the KISS principle

Avoid unintended consequences

Align with organization values

Don’t use “flavor of the month/year” plans

Pay for hard work or results?

Challenge but achievable

SPIF’s suggest a plan design flaw

Degree of influence and control factors

Windfalls and shortfalls

2) Know the market

Have solid data

Avoid free surveys

Address pay mix issues

Define competitive position

Examine “total reward” package

Define your “EVP”

3) Use metrics

Define target and upside potential

Show details

Allow cost / sales modeling

Provide detailed plan

4) Differentiate top performers

Can your top salespeople earn more than your CEO?

Define the behaviors of what gets done and how it gets done

Use the 2x factor

Examine your hiring and promotion practices

Avoid “peanut butter spreading”

5) Pay quickly and correctly

Clearly define payment schedule and process

Define clawbacks

Online calculations and summary

Pay within 30 days

Avoid “shadow accounting”

Clear communication

Use visuals and graphics

Panelists

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Steve Mihalik

Larry Morgan Jeri Meola - Moderator

President

952.939.4310 (Direct)

612.840.0766 (Mobile)

jmeola@satmansys.com

President

952.210.0742 (Direct)

larry.morgan@orionhr.com

Chief Revenue Officer

952.358.7106 (Direct)

763.567.1364 (Mobile)

smihalik@otes.com

SMEI Professional Certifications

o Certification available

Certified Professional Sales Person

Certified Marketing Executive

Certified Sales Executive

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To become a member…

www.smeiminnesota.org

Next Event

Marketing to Women –Dori Molitor

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Thursday, June 28 (7:30 – 9:00) Location: The Woman’s Club of Minneapolis