1. Abby Roderique Jessica Jennings Madeline Brockley Weston Willis

2. 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

3. 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

4. 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.

5. SWOT Analysis

6. 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

7. Regional Break-down

8. 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?

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

10. 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.

11. 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%)

12. 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

13. 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.

14. 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

15. 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?

16. 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

17. 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

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

19. 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

20. 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?)

21. Commissions Table

22. 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

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

24. 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

25. 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

26. Sources
Feedback-Form---PDF
Job-Analysis.html#axzz2RwQcO54h

27. QUESTIONS?