1. Traditional Sales Training Just Doesn’t Work—So What’s the Answer? August 21, 2007 Presented by Jim Messina Vice President of Sales Maritz Learning

2. © 2007 Maritz Inc. 2 The Landscape Has Changed Intense Competition More Sophisticated, Knowledgeable and Demanding Customers Shifting Strategy to Customer Acquisition Shifting Strategy to Profitability vs Revenue Growth Commoditization and Shrinking Markets Sales Rep and Sales Manager’s Roles are More Complex Who Will Win?

3. © 2007 Maritz Inc. 3 Not Good Enough Why Are 70% of Sales Executives Not Satisfied? Sales Reps Lack critical skills to Find and Win new customers Sales Managers are weak at Strategizing, Coaching and Motivating their sales reps Not Satisfied 70% Satisfied 30%

4. © 2007 Maritz Inc. 4 Training Is An Obvious Answer, But…

5. © 2007 Maritz Inc. 5 Traditional training doesn’t work.

6. © 2007 Maritz Inc. 6 A Focus On Producing Results Behavior ChangeTraining Event Desired Result Actual Result Resistant to ChangeLoss of Knowledge and Skill Retention

7. © 2007 Maritz Inc. 7 Traditional Training is Inefficient Over 60% of knowledge acquired is forgotten after 24 hours. Only 20% of knowledge acquired is retained after 1 month.

8. © 2007 Maritz Inc. 8 Change is Pain

9. © 2007 Maritz Inc. 9 Improving Knowledge Acquisition Set Clear Goals and Expectations Train To Individual Need Involve Multiple Senses To Address Learning Style Differences Participative and Facilitating Insights vs One Way Training In Context Follow-Up Reinforcement Measure Invisible Observable Results Behaviors Emotions Thinking RESULTS BEHAVIORS EMOTIONS THINKING The Outcomes Our Habits What We Feel What We Think

10. © 2007 Maritz Inc. 10 Improving Knowledge Retention Change is Pain Provokes sensations of psychological discomfort. Focus Shapes Perspective The act of paying attention creates chemical and physical changes in the brain. Individual Problem Solving Asking tough questions that allow people to generate their own insights is more powerful. Repeated, Purposeful Attention Focusing on specific ideas, closely enough, often enough and for a long enough time changes behavior.

11. © 2007 Maritz Inc. 11 Maximizing Knowledge Retention Active Reminder Certification Retention of Content if No Reinforcements Learning Event 100% Day 30 That means for every $1 spent on training, $.87 is wasted! 13%

12. © 2007 Maritz Inc. 12 Maritz Sales Advantage Technology-enabled Reinforcement Campaign Re-engage the salesperson in the training content over time to make new behaviors routine Coach to Transform the Culture Reinforce training and empower individuals to solve their own performance problems Certify Capacity and Capability Measure knowledge retention and demonstration of skills to use as gauge of future effectiveness Communities Raise the Bar Peer to peer learning provided immediate credibility and rationale to change behavior

13. © 2007 Maritz Inc. 13 Technology Enabled Reinforcement Campaign

14. © 2007 Maritz Inc. 14 24 Hours After The Class … Reminder of main points Request to respond –Select area of focus –Create action plan Link to resources … I receive:

15. © 2007 Maritz Inc. 15 24 Hours After The Class … Summary of main points Notice that I am selecting an area of focus Reminder for me to create action plan Coaching tips … my Manager receives:

16. © 2007 Maritz Inc. 16 7 Days After The Class … Focused learning points Request to describe how I am applying what I learned Reminder & link to resources Invitation to share success story … I receive more information about my area of interest:

17. © 2007 Maritz Inc. 17 7 Days After The Class … My email with coaching notes Joint sales call planning guide Coaching tips Recognition opportunity … my Manager receives:

18. © 2007 Maritz Inc. 18 30 Days After The Class … Top learning points Request to add progress to my action plan & complete first level of certification Reminder & link to resources Invitation to share success stories … I receive:

19. © 2007 Maritz Inc. 19 30 Days After The Class … Notice that I have been requested to take the level 1 certification Coaching tips Observation template for level 2 certification Recognition reminder … my Manager receives:

20. © 2007 Maritz Inc. 20 Monthly Thereafter … Success stories Invitations to participate New resource alerts … my Manager and I receive:

21. © 2007 Maritz Inc. 21 Putting It All Together 24 hours Reminder of main points Request to select most relevant areas Links to resources Summary of main points Results of selection Coaching tips 7 days Individualized activities Request to create action plan Links to resources Invitation to share success stories Sales Person Receives Manager Receives Email w/ coaching notes Joint action plan/guide Coaching tips Recognition opportunity 30 days Individualized activities Request to add progress to action plan Request to take certification Links to resources Invitation to share success stories and best practices Ongoing Request and receive best practices New resource alerts Certification results Coaching tips Recognition opportunity Request and receive best practices Recognition opportunity New resource alerts

22. © 2007 Maritz Inc. 22 Coaching to Change Behavior Coaching picks up where training ends Differs from managing –Dialog and inquiry based –Empowers –Teaches people to think Coaching to reinforce training improves performance by 88%

23. © 2007 Maritz Inc. 23 The Power of Community Peer experiences have immediate credibility Technology makes it easy to collect and distribute success stories and best practices Everyone wins –Average performers can take advantage of tried and true methods –High performers garner instant recognition for their accomplishments.

24. © 2007 Maritz Inc. 24 What Does It All Mean? Training with no follow-up is mostly wasted 1-way teaching (i.e. giving individuals conclusions) is not nearly as powerful as 2-way communications (i.e. generating insights through dialogue; sharing with others; being coached) Given the small capacity of working memory, reinforcing learning over time is a powerful addition to classroom training and e-learning Memory Insurance 24/7/30 Coaching Community Learning Sales Advantage Certification

25. © 2007 Maritz Inc. 25 Traditional training doesn’t work. Sales Advantage never stops working.

26. © 2007 Maritz Inc. 26 Thank You! To view an archived version of this web cast, please visit: www.maritzlearning.com/learning-webcasts.html (Available beginning Wed. Aug. 22) To request a copy of today’s presentation, please email us: info@maritzlearning.com