Abby Roderique Jessica Jennings Madeline Brockley Weston Willis

Background Arck Systems manufactured & sold enterprise hardware servers Rob Chatterji, CEO of Arck, decided to acquire Lux Software Arck’s EVP of Sales, Bryan Mynor would now manage both Lux’s and Arck’s current sales teams as separate entities Software gross margins were more than double that of hardware. Lux was a leading provider of middleware For Arck, owning a dedicated middleware platform would help them better integrate their hardware to the software applications that ran on it. Bryan and Rob agreed to keep hardware and software sales teams and compensation structures separate. Arck Systems manufactured & sold enterprise hardware servers that are network computers used in corporations to manage data Rob Chatterji, CEO of Arck, made a recent strategic decision to acquire Lux Software in order to capture a greater “slice of the enterprise information technology pie” Arck’s EVP of Sales, Bryan Mynor would now manage both Lux’s and Arck’s current sales teams as separate entities

Problems Hardware vs. Software approaches to selling Targeting different decision makers Differences in sales compensation plans at Arck and Lux Mynor altered the compensation policies Existing salespeople quit Mynor encountered many problems immediately following the acquisition. Hardware vs. Software Approaches to Selling Hardware= much more technically-oriented Software= relationship-oriented; “soft sales touch” Decision Makers Arck- sold to the CIO or CTO, who are more concerned about server specifications such as speed, processing power, and reliability Lux- Targeted executives from the finance or administration arms of corporations who were concerned about the software’s VALUE creation for the company and ease of implementation and use Compensation Plans Major difference related to the accelerators at Lux– used to “reward top performers” “Gaming the System” Took advantage of the accelerators by offering large discounts to customers when the salesperson was on the highest accelerator. Altered compensation plan Goal was to increase retention of the “average salesperson” Be in a better position to attract new salespeople Improve company culture

Mission Statement Arcx’s mission is to deliver innovative and technologically sound hardware/software products in order to satisfy the needs of our customers. We strive to provide the highest quality service and support to remain a top solutions provider within the technology industry.

SWOT Analysis

Organizational Structure Rob Chatterji CEO Bryan Mynor EVP of Sales SharonEsteves VP of Software Regional 1 Manager Regional 2 Manager District Manager 1 District Manager 2 5 Software Account Managers (Salespeople) Regional 3 Manager ??? VP of Hardware Organizational Structure One reason we want to keep divisions separate is that hardware vs. software salespeople tend to target different divisions – target different decision makers 3 regional managers Types of selling Check out what rob was saying Recruiting purposes – difficult to find someone with both hardware and softwares required skills Arck hardware – sold to cio or ceo bc more concerned with server specifications Luxe software – execs from finance and administration corps, software value creation for company and ease of use

Regional Break-down

Job Analysis Important to Analyze differences between the hardware and software account management roles What tasks, responsibilities, and environmental influences are involved with each job: Hardware Analysis Software Analysis Asking current/retained sales staff?

Sales Team Recruitment & Selection Sources: Internal (Employee Referrals) External Job Boards (Monster.com, Indeed.com, Glassdoor.com) LinkedIn Industry Events/Trade Shows

Job Description & Requirements Hardware Account Manager To be successful in this role, you will need to be meticulous in everything that you do. You should also have extensive computer hardware knowledge and be able to explain intricate concepts to non-technical personnel. Software Account Manager You are required to have a strong consultative sales approach, passion for the IT/tech industry, as you will serve as a trusted adviser for all of your clients.

Job Description & Requirements Continued Hardware Account Manager Proven record of success in a similar role Effective organizational and analytical skills Knowledge to engage with senior level executives (prospects), with a high degree of  professionalism, accuracy and follow-up Flexibility to travel and present to prospective clients in person (up to 30%) Software Account Manager Proven record of success in a similar role Exceptional closing skills and the ability to capture a high volume of opportunities Knowledge to engage with senior level executives (prospects), with a high degree of professionalism, accuracy and follow-up Flexibility to travel and present to prospective clients in person (up to 30%)

Interview Process Overview 1. Application Screen 2. Phone Screen 3. HR Generalist Interview 4. HR Manager Interview 5. Personality Assessments 6. District Sales Manager/Team Member Interview

Interview Process Part 1 Application Screen Embedded into application, must be completed before database will accept Phone Screen Conducted by a general recruiter Basic questions that will gauge the applicant’s skills with the job analysis Interview with Head Recruiter Conducted by recruiting manager In person or over the phone Contains questions that will gain insight on selling ability and essential  competencies.

Interview Process Part 2 Personality Assessments Two Different Assessments Test motivators, behaviors, mathematical and selling competencies Final Round Interview Conducted by Sales Manager and a sales team member Personal interest and teaming ability questions Offer Offered will be made by HR Manager to selected applicant Once an applicant accepts, they will be debriefed on assessments

Sample Interview Questions 1. What is your favorite piece of software? Sell it to me. 2. Tell me about a time when you failed to expectations. 3. What does success mean to you? 4. If you could go back in time and choose another job, what would you choose if you had to?

Training Retained Employees Analyze the training needs of the retained sales force One week company orientation Any changes in policies Reporting structure changes New culture Separate training for hardware vs. software Hardware= more technically-oriented Software= required more relationship-selling and a “soft sales touch” Try and give hardware better selling skills? Old vs. New Objectives of sales training: Increase productivity Improve morale Lower turnover Improve customer relations Improve selling skills

Training Week 1: company and industry orientation Week 2: team development training All New hires complete weeks 1 and 2 together Weeks 3-6: Product and sales training within either hardware or software division Weeks 7-8: OTJ Training with retained employee Can also serve as new hire's mentor going forward Weeks 3-6 Training on what types of customers they will be selling to Effective sales techniques A little more technical training for hardware and more relationship-based selling for software

On-going Training Yearly conferences & Trade-shows New-product training as needed Updated product training Webinars, classroom training, workbooks/quizzes webinars Classroom training manuals

Training Evaluation Pre and Post test Evaluation Questionnaire To assess the salesperson’s understanding of the products and concepts as well as their ability to use the learned skills Evaluation Questionnaire To assess favorability of the program To discover how to improve training in the future Find out the preferred methods of training: Classroom w/ instructor Workbook/manual Seminars role-play Case studies Internet Teleconferencing

Compensation Plan Combination plan: base salary + commissions Software base salary: $55,000 Hardware base salary: $66,000 No commissions cap No accelerators Commission based on size of discount offered with sale How can we keep salespeople that came from Lux to still be motivated by the “new” compensation plan? (see next slide– maybe put bonuses and other incentives that could motivate the sales force?)

Commissions Table

Pay Comparisons Arcx Lux Arck Base salary Quota Sales Commissions   Arcx Lux Arck Base salary $55,000 (SW) $66,000 (HW) $32,000 $65,000 Quota $100,000/quarter (SW) $250,000/quarter (HW) $100,000/quarter $1,000,000/yr Sales Commissions Calculated by size of discount offered with sale Base: 4% with accelerators Base: 9% without accelerators Cap None $6 million in sales per year

Employee Benefits Direct Reimbursement plans (for reasonable spending) Advanced healthcare options Life insurance options 401K

Motivating the Sales Force Bi-annual Sales Competitions Continue Gold Star incentives and Hawking Club Salespeople have options for their rewards: Original tropical vacation offered to members of the Hawking Club or Top Guns 4 additional paid vacation days Monetary bonus of equal value to 4 paid vacation days

Evaluation 360-Degree Feedback in Performance Evaluation Focus on the development and improvement of the sales team Self-Evaluation Other Sources External Customers Internal Customers Fellow Sales Team Members Bryan Mynor 360- Degree Feedback in Performance Evaluation Focus on the development and improvement of the sales team First self-evaluation by salesperson Other sources of feedback= External customers Internal customers Fellow sales-team members Bryan Mynor More productive dialogue between Mynor and sales team member Rather than relying on purely objective measures or on subjective measures generated by one person, information for performance evaluation may come from multiple sources simultaneously. This evaluation form opens the door to a new era in using the performance appraisal process for development an internal customers= internal organization members who serve as resources in serving external customers

Sources http://www.docstoc.com/docs/38680936/360-Degree- Feedback-Form---PDF   http://www.loc.gov/teachers/tps/images/usa.jpg http://www.staffing-and-recruiting-essentials.com/Sample- Job-Analysis.html#axzz2RwQcO54h

QUESTIONS?