Learning: Re-Imagined Senior Director Sales Training Division Mitch Bardwell

Agenda Sales Training & Measurement for Canon’s Distribution Channels Sales Force Canon authorized Independent Dealer sales people What’s the content How do we measure Canon Business Solutions (subsidiary) new hire sales people

Independent Dealer Challenge Train Authorized Canon Dealers Sales People on: Sales Skills Product/Applications Technology 240 dealers 4,000 sales people

Delivery Methods Web-Based Training (WBT) Instructor-Led (ILT) 4/22/2017 4:32 AM Delivery Methods Web-Based Training (WBT) Instructor-Led (ILT) Learning Zone LIVE (LZL) A scheduled online instructor-led training session where both the Instructor and Participant interact in real-time through the use of computers linked to a network or the internet. Also Available – Assessments, Tutorials, Reference Materials, Walkthroughs Canon_3115_template_122906_2pm

Types of Content Sales Skills Technology Product / Application 20 Self-Paced Skillsoft Courses Buyer Approved Selling Workshop Demonstration Skills Workshop SPIN Selling Product / Application Over 150 Web-based and Instructor-Led programs Covering Canon’s B&W and Color digital imaging products and services. Technology Digital Imaging Communications Workshop CDIA +

Canon Learning Zone Survey

Subjects you have taken advantage of in the last 6 months Imaging Industry Sales Technology Vertical Markets 43% 81% 63% 39% Question 4

The Best of the Following Elements

The Best of the Following Elements

The Best of the Following Elements

Sales Productivity Boosted by 25% 4/22/2017 4:32 AM Sales Productivity Boosted by 25% (6 or More Courses Completed or 2 or More Visits a Month) This chart look at the Sales Productivity Boost of the Sales Reps who have completed 6 or more courses or visit the LZ 2 or more times a month Those completing 6 or more LZ courses: 55.2% felt they had a 25% or more increase in productivity. With the complexity and competition in today’s marketplace, is it worth your time to use this valuable resource to achieve even a 10% increase in sales? 55% said it boosted their sales by 25% Canon_3115_template_122906_2pm

Canon Business Solutions Challenge… Was Understanding the Business Problem

Business Problem High Turnover Increased Recruiting Costs High Turnover of Account Representatives at Canon Business Solutions Missed Quota Targets Lost Revenue and Market Share JAY The Key business issue was the unusually high turnover rates of Sales Representatives CBS was experiencing Up to 60% in core markets and as high as 97% in some area markets (click) As a result of the high turnover rates – additional business problems occurred that negatively affected CBS. Read 4 factors) Branches Not Fully Staffed

Key Turnover Factors Recruiting New Hire Compensation Training Our research showed that there were 4 key factors that we collaboratively addressed with this project READ FOUR FACTORS (click)These factors can either contribute or take-away from the ability of the sales rep to succeed As you will see in the next slide, 3 of these areas were addressed with this project Sales Management

Vision – Lifetime Training Program Delivered by Mr Vision – Lifetime Training Program Delivered by Mr. Riochi Bamba July 2006 30 Days 30 Days 4 Months 1 Week Classroom Training Field Training Sales Rep Level I Level Up Training Sales Rep Level II Recruit The Vision of the Lifetime Training Program was presented by Mr. Bamba at a meeting in July 2006 where he outlined a plan to stem the turnover problem through a structured, multi-leveled training program. CLICK According to CBS Recruiting, the most-asked questions of potential new sales representatives were: What training will I be provided? What career path will I have at Canon Business Solutions? The Lifetime Training Program, which was renamed to the Sales Foundations program would provide an industry-leading onboarding experience for new reps. According to Mr. Bamba, in 3-5 years, sales reps that would complete the 3 levels of this program would become the future Sales Managers to take the company forward. The Sales Foundations program focused on the FIRST year of a sales rep’s employment at CBS. The next logical step would be to build an onboarding program for CBS Sales Managers to complete the vision and provide the succession planning needed for CBS to flourish in the coming years. Level Up Training Sales Rep Level III Manager Training Sales Manager

Sales Foundations Program Goals Make Sales Reps Successful When Performing the Job Reduce Sales Rep Turnover Improve New Rep Sales Revenue Level III 9 Months With the 3 levels of the Sales Foundations program, The reps would attend Level 1 within 2 weeks of being hired, Level 2 at 6 months and Level 3 after 9 months on the job. The goals included: Making Sales reps successful when performing their jobs Reducing Sales Rep turnover – thereby Improving the Sales Revenue and time to quota for new reps By meeting these goals, we could achieve success for both the reps and thereby, contribute to the revenue of CBS. Level II Months 6 Level I New Hire Sales Foundations Program

Sales Rep Job Expectations Year One Frontline Research Focus Groups Interviews CBS Sales Vice Presidents CBS Sales Regional Directors CBS Sales Directors CBS Sales Managers CUSA Strategic Sales Support Management To ensure we met the goals of the program, we involved all the key stakeholders and went to the front lines to research the role of the CBS Account Rep. We performed focus groups throughout all levels of CBS, from the front-line reps, through the levels of CBS management to the Executive level to ensure we clearly understood what THEY (not training) expected the new reps to be able to accomplish at 2, 6 and 9 months on the job. (click) This collaboration with all levels of CBS management would ensure we hit the mark when deciding, based on the job expectations, what training was needed to perform successfully very early on in their careers at CBS. Now Paul is going to describe the Sales Foundations program in more detail, how Canon ISG Sales Training built the multi-level program, and the results we achieved this past year. Months as CBS Sales Rep 1 2 3 4 5 6 7 8 9 10 11 12 Sales Rep Level II Sales Rep Level III Sales Rep Level I

Sales Foundations Levels Level III Opportunities to Sell Deeper into Accounts: Advanced Sales Skills 9 Months Level II Mid-Sized Businesses Customers; Multi-Product Sales Months 6 Thanks Jay Through the research and discussion with CBS Sales Management, the main focus of each level of sales foundations became apparent: For example, brand new sales reps tend to be most successful prospecting and selling to small businesses. So, besides the basic job tasks, sales process and CBS systems, SF level 1 concentrates on the needs of small businesses and the appropriate ISG solutions that fit those opportunities. This allows the reps to contribute to the sales goals right away without needing to learn about every solution offered by ISG up front. At 6 months on the job, the reps should be starting to look at opportunities with mid to large sized businesses, so SF level 2 introduces the key concepts to winning sales when there are multiple stakeholders and larger multi-product solutions involved. Finally, at 9 months on the job, reps will have accounts that they should revisit and look for further opportunities. In level 3, the reps learn advanced selling techniques to help them close business and learn about their role in imagePRESS and Document Management sales. If you’d like to review the details of each level later, we’ve included a copy of the 3 agendas with your printed handouts. So how did we implement the programs? Level I Small Business Customers; Telemarketing; Basic Sales Skills; Core Products/Technologies New Hire

Implementation CUSA ISG Sales Training Canon Business Solutions Development Job Task Research with CBS Sales Instructional Design for 6 Weeks of Modules Production of Materials Delivery Scheduling Program Dates Prepare to Train Deliver Programs Logistics Locate/Build Classrooms Design National Classroom Network Infrastructure Set-up and Support New Regional Classrooms Administration Order equipment and supplies Set-up and Track Classes and Rosters in LMS Setup Catering CUSA ISG Sales Training Canon Business Solutions Sales and Sales Management Open Communication about Process, Best Practices, and Operations Continued Support/Development of Sales Reps Back in the Branch Training and Development Coordinate Research Sources for Development Coordinate Travel and New Hire Attendees with Recruiting Coordinate Sales Management Follow-up To meet our 2008 goal and deadlines to launch SF I in January, II in July and III in October, ISG Sales Training had to work not only harder, but smarter as well as work closely with Canon Business Solutions. Our development team researched each topic of the 6 weeks of classroom instruction with CBS sales reps, managers and specialists from various core and area markets. The CBS sales force was always available and open to discuss their operations and experiences. It was only through this input that the Development team was able to make the training content match the job as close as possible and include best practices from across the organization. Of course, The Delivery team had challenges as well. First, they created the 2008 class schedule for all 3 levels to accommodate up to 450 new hires. Then they had to learn and practice the 40+ modules of SF 1 in a few short weeks and sometimes even days. They also learned and practiced the modules for the 2nd and 3rd levels while some were delivering the 4 week level 1 program. Our Logistics staff located and built 8 new classrooms in 5 regional CUSA locations, set-up computers and networks, and installed all the products needed for each program. The Administration staff ordered equipment and supplies and tracked the class schedule and rosters in the Canon Learning Zone. The CBS Training and Development team used its knowledge of the Sales Organization to locate appropriate sources for Development’s research and coordinated the on-boarding process of new hires with CBS Recruiting. The launch of these programs involved virtually everyone in the ISG Sales Training Division at some point or other. That’s why the entire Sales Training Division is excited to share the initial results of the first year of the Sales Foundations programs with you today.

Account Representative Reduction in Turnover 78% Reduction in Account Representative Turnover! As Jay mentioned earlier, the original business issue that drove this initiative was high turnover of account reps at CBS. Prior to the Sales Foundations programs, there were 90 total ARs terminated in 2007. In 2008 when SF was introduced, only 19 were terminated so far. That represents a 78% reduction year over year and 71 reps that stayed in the CBs salesforce.

Reduction in Turnover Cost Turnover Costs! According to CUSA HR, a conservative calculation of what it costs when an employee turns over is 1 ½ times their base salary The reduction in turnover due to this project in 2008 represents a savings of over $3 million. * Based on $45,000 per Employee

Average Percentage of Quota After 6 Months on the Job 236% increase in Quota Results! Another goal of the SF program was to make new sales reps more successful. The orange bar represents performance of ARs hired in Q4 of 2007 who did not attend SF. After 6 months on the job, they averaged 19% of what they should be selling while the 2008 SF attendees averaged 64% of their quota after 6 months on the job . This represents an increase of 236% over the 2007 group performance.

Thank You Questions…