Presidio Case

8/10/2019 Presidio Case

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Presidio case :

Acquired through a search fund, Presidio Solutions offers an outsourced sales solution for technology

companies. Presidio Solutions sells only renewals of service and maintenance contracts on their clients'

hardware and software products. The rapidly growing company has two sales organizations: an outside

sales force that wins new clients for Presidio and an inside sales force that sells renewals on behalf of

the company's clients. The two sales forces have very different profiles, which creates interesting

management challenges. Looks at hiring and compensation issues for the two different sales forces.

9 Steps In The Recruitment And Selection Process

Step 1: Advertise the sales position. Be clear and highlight the capabilities needed for the job.

Step 2: Resume screening. The goal is to eliminate the applicants who definitely don't fit the profile you

are seeking. John recommends using a screening tool to ensure you have an objective process to narrow

the pool of resumes.

Step 3: Phone interview. Use the phone interview as the second screening device. Keep it to ten

minutes.

Step 4: Face-to-face interview. This should last about an hour and be held in a neutral place, not your

office (example: conference room). Use the same, predetermined questions with each applicant.

Questions should focus on the capabilities required for the job.Step 5: Assessment. Use a predictive assessment tool.

Step 6: Secondary face-to-face interview. The goal is to clear up any discrepancies, sell the canidates on

the position, and broadly explain the compensation package.

Step 7: Job Shadow. The purpose is to see if th eapplicant is a good cultural fit. It also helps you identify

whether the applicant is comfortable with the actual job.

Step 8: Reference Check. Ask about their capabilities as it relates to the job. Also ask about attribute

match.

Step 9: Job Offer. Make sure the compensation plan offered is clear and unambiguous.

Selling Requirements

New vs. established account selling

Selling through distributors

Entertaining customers

Level of buying authority

Physical activity required

Technical knowledge

Relocation

Written proposals

Individual vs. team selling

One time vs. systems selling

Type of prospects/customers

One-on-one vs. group selling

Travel: how much & what kind

Program or concept selling

Nonselling Tasks

Reports to management

Customer service and trainingSales promotion

Educational seminars

Collecting receivablesMarketing plans

Degree of Responsibility

Negotiations of pricing Travel and entertainment

Career Paths


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Compensation plan

Promotion timing

Earnings potential

Promotion leaders

Performance Expectations

Activity level requirements Minimum sales volume or profits

The quality and effectiveness of selection and placement decisions depend on sales managers hiring asmany applicants as possible who turn out to be good performers.

Costs to consider include both actual and potential costs:

Actual costs.

Recruiting and assessment costs.

Induction and orientation costs.

Training costs.

Potential costs.


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Costs associated with hiring a person who subsequently fails.

Costs associated with rejecting a person who would have been successful on the job.

Some of the benefits of an effective hiring policy

Lowering the cost of turnovers and absenteeism.

Lowering training time.

Meeting individual territorial sales potential.

Increasing customer satisfaction by having the same salesperson call.

Improving morale.

Because of these benefits, recruiting effectiveness increases, thus lowering the total costs associated

with operating the sales force.

Reduce recruitment expenses

Reduce staff turnover

Reduce the time spent in the recruitment process

Increase sales management effectiveness

Increase business

A Sales Management Recruiting Platform

Companies live and die by their ability to recruit individuals who can motivate, mentor and set a positive

example amongst their subordinates. Its been this way since the dawnof business.However, its easier said than done. Implementing an executive search policy geared towards recruiting

sales leaders can be arduous, expensive and time consuming.

Regardless, getting it right is a necessity. This is especially true if your firm wants sustained growth in the

coming years.

Below, the sales recruiters at KAS Placement have laid down an explanation on how to locate, procure

and compensate these individuals. Also, learn more aboutsales management recruiting services.

Recruiting the Right Sales Leader

Account management teams that lack strong leadership face a multitude of problems. When sufficient

management is not present, they are prone to the following.Job Seekers Learn MoreEmployers Learn MoreSales RecruitingView Open JobsAbout Our RecruitersContact a Headhunter

Higher turnover rates.

Lower client satisfaction.

Less work ethic.

Fewer sales conversions.

After staffing the right individual, our sales recruiters have seen dramatic turnaround in performance.

Below, weve listed a few benefits that recruiting sales leaders brings to any company.

Increased employee engagement.

More successful recruitment efforts.

Increased resiliency and creativity.

Sales Leadership Attributes

Know what youre seeking. Before recruiting the right sales managers, an organization must be

cognizant of the skills that comprise great sales leadership.

Below, weve listed a few abilities. Our sales management recruiters suggest that all applicants your firm

is recruiting possess the following.

An ability to motivate a business development team.
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A history of growing revenue through upgrading subordinate performance.

Past experience exceeding sales quotas.

Moreover, leaders are passionate about their job. They enjoy what they do and embrace the challenges

that come with managing a business development team.

Another distinctive ability our sales management recruiters look for is candor. Recruiting sales leaders

who can make difficult decisions is crucial to a firms ability to achieve its goals.

Program Details:

1. Recruitment and Selection Audit

When was the last time you took a step back to review your recruitment function?At Dynamic

Achievement Group we see that organizations recruitment functions are increasingly challenged to

meet the needs of the business. They are realizing that the recruitment function needs to perform more

effectively in order to be competitive, hire the candidates that best fit the culture, and manage the

candidate experience in a way that honors their employment brand. Organizations are turning to

2. Recruitment & Selection Design and Implementation?

evaluate, test and implement every element of your recruiting process, including:

Team structure

Use of technology

Reporting and metricsSsocial media presence

Company recruiting culture

Assessments and interviewing techniques

Depending on the results of your Recruitment and Selection Audit, , this phase may include minor

adjustments to existing programs or a significant restructuring of your entire recruitment and selection

function.

3. Sustaining Recruitment and Selection Excellence

Now that your Recruitment & Selection programs, practices and process are in place, your recruitment

team leaders need to develop the right coaching and mentoring skills in order to continually drive

momentum and ensure that your recruitment function is successful in the long term.

So how do you keep it going? In Step 2, we built measurement criteria and identified Key PerformanceIndicators (KPIs). During this step, we will focus on building sustainability into your recruitment and

selection function over the long term, and ensure that your recruitment team and processes overall are

measured and held accountable to the identified KPIs.


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SalesLeaderships Higher Expectations hiring process has dramatically improved sales results by

helping companies benchmark the specific position. Benchmark results align the potential sales and

sales management candidate to match the behavior, culture, and skills necessary to succeed and

thrive. As a result, your company will:

Outcomes for benchmarking top salespeople:

Hire salespeople who aren't afraid to call at the top

Hire salespeople who close deals consistently at full margin

Hire salespeople who prospect consistently

Hire salespeople who are internally motivated

Hire salespeople who deliver results not excuses

Hire salespeople who sell on value, not price

Hire salespeople who can help you grow your company

Hire salespeople who play well with other departments Hire salespeople who understand the power of teamwork

Sales Management:

Hire sales managers who can lead, develop and grow a sales team

Hire sales managers who know how to compete and win with integrity


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Coach the sales management team or executive team on how to effectively screen candidates over

the phone

Coach the sales management team or executive team on behavior based interviewing skills

Administer objective hiring and sales assessments which measure:

DISC: Selling Style/Communication Style Analysis

PIAV: Personal Interests, Attitudes and Values

EMOTIONAL INTELLIGENCE: Ability to relate to others and build relationships

About Presidio Solutions

Acquired through a search fund

Presidio Solutions offers an outsourced sales solution for technology companies.

It sells renewals of service and maintenance contracts on their clients hardware and software products.

It was headed by Sinclair (CEO) and Beckett (President and Chairman)

The company had two sales organizations

Inside Sales force that sells renewals on behalf of the company's clients

Outside Sales force that wins new clients for Presidio

The two sales forces have very different profiles, which creates interesting management challenges.

Partners Background

David Beckett

Graduate in Business Administration

MBA and Masters from Stanford in International Policy Studies

Work experience as consultant and operations manager with giants like McKinsey & Comp. and H.J.

Heinz an American food company.

Mike Sinclair

MBA from Kellogg Graduate School

Work experience in M&A with Lehmann Brothers and Morgan Stanley in IvB.

Issues

Complicated business model with internal and external sales force

Constant monitoring of compensation plans, hiring practices and current employees.

Management tasks looked at hiring and compensation for the two different sales forces.

The key strategic position of the EVP of outside sales force was unfilled and finding a suitable candidate

was difficult.

Developing and implementing a new variable compensation plan for the outside sales team was crucial

Outside Sales Organization : Skill set

Boardroom qualities


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High level of professionalism

Articulation Proficiency

Significant domain experience

Confident, polished & aggressive

Excellent selling skills

Jason Bennett

Pros

Strategic bent of mind

Technologically sound

Futuristic thought process

Impeccable attention to detail

High degree of professional refinement and vast experience in terms of domain knowledge

Cons

Due to a headstrong behavior and a knack for revamping processes according to his strategic thinking,

he might not be able to adjust comfortably in the organizations culture and might create a one managainst the organization situation

Richard Kanitsky

Pros

Young

Ambitious

Outsourcing expert

Right level of sales management experience

Adaptability

Keen eye for detail

Cons

Lacked experience with high technology

Our Decision: Jason Bennett

Present Outside sales compensation Plan:

Overview

Reps entitled to get 4% of the contracts revenues for first 15 months of the contracts. ( this period

include first one and a half month of contract implementation when no revenue is generated).

Plan was effective initially since it gave impetus to the sales drive as the sales reps would go for large

contracts which ramp up quickly and the duration of payout kept the two sales reps engaged through

the transition to new ownership

Old Compensation Plan: Drawbacks

The 4% payout functioned like a fixed payment over a period of 15 months.

Since payment was guaranteed the sales reps lost their aggressiveness , impetus and drive to go for

more (Sinclairs comment that this plan turned hunters into farmers).


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Threat to companys growth since reps timed new sales when stipulated 15 month period was about to

end. In other words drive to go for new sales in the initial part of 15 month lost

New Compensation Plan: Objectives

Ensure fairness since the old plan compensated outside sales reps for the work of inside team.

Encourage appropriate conduct in the existing sales team.

Attract best salespeople to the company as it continued to grow.

Ensure that there is hunger to go in for more

New Compensation Plan

Variable Component = 6% (New Contract)

De-Linking External & Internal Sales Teams

Removal of 15 month period

Presidio Case

Documents

Transcript of Presidio Case