Arck Systems Case Study Analysis Powerpoint

Presentation on theme: "Abby Roderique Jessica Jennings Madeline Brockley Weston Willis"— Presentation transcript:

1 Abby Roderique Jessica Jennings Madeline Brockley Weston Willis

2 BackgroundArck Systems manufactured & sold enterprise hardware serversRob Chatterji, CEO of Arck, decided to acquire Lux SoftwareArck’s EVP of Sales, Bryan Mynor would now manage both Lux’s and Arck’s current sales teams as separate entitiesSoftware gross margins were more than double that of hardware.Lux was a leading provider of middlewareFor 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 dataRob 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 makersDifferences in sales compensation plans at Arck and LuxMynor altered the compensation policiesExisting salespeople quitMynor encountered many problems immediately following the acquisition.Hardware vs. Software Approaches to SellingHardware= much more technically-orientedSoftware= relationship-oriented; “soft sales touch”Decision MakersArck- sold to the CIO or CTO, who are more concerned about server specifications such as speed, processing power, and reliabilityLux- 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 useCompensation PlansMajor 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 planGoal was to increase retention of the “average salesperson”Be in a better position to attract new salespeopleImprove company culture

4 Mission StatementArcx’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 ChatterjiCEOBryan Mynor EVP of SalesSharonEstevesVP of SoftwareRegional 1 ManagerRegional 2 ManagerDistrict Manager 1District Manager 25 Software Account Managers (Salespeople)Regional 3 Manager??? VP of HardwareOrganizational StructureOne reason we want to keep divisions separate is that hardware vs. software salespeople tend to target different divisions – target different decision makers3 regional managersTypes of sellingCheck out what rob was sayingRecruiting purposes – difficult to find someone with both hardware and softwares required skillsArck hardware – sold to cio or ceo bc more concerned with server specificationsLuxe software – execs from finance and administration corps, software value creation for company and ease of use

7 Regional Break-down

8 Job AnalysisImportant to Analyze differences between the hardware and software account management rolesWhat tasks, responsibilities, and environmental influences are involved with each job:Hardware AnalysisSoftware AnalysisAsking current/retained sales staff?

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

10 Job Description & Requirements
Hardware Account ManagerTo 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 ManagerProven record of success in a similar roleEffective organizational and analytical skillsKnowledge to engage with senior level executives (prospects), with a high degree of  professionalism, accuracy and follow-upFlexibility to travel and present to prospective clients in person (up to 30%)Software Account ManagerProven record of success in a similar roleExceptional closing skills and the ability to capture a high volume of opportunitiesKnowledge to engage with senior level executives (prospects), with a high degree of professionalism, accuracy and follow-upFlexibility 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 ScreenEmbedded into application, must be completed before database will acceptPhone ScreenConducted by a general recruiterBasic questions that will gauge the applicant’s skills with the job analysisInterview with Head RecruiterConducted by recruiting managerIn person or over the phoneContains questions that will gain insight on selling ability and essential  competencies.

14 Interview Process Part 2
Personality AssessmentsTwo Different AssessmentsTest motivators, behaviors, mathematical and selling competenciesFinal Round InterviewConducted by Sales Manager and a sales team memberPersonal interest and teaming ability questionsOfferOffered will be made by HR Manager to selected applicantOnce 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 forceOne week company orientationAny changes in policiesReporting structure changesNew cultureSeparate training for hardware vs. softwareHardware= more technically-orientedSoftware= required more relationship-selling and a “soft sales touch”Try and give hardware better selling skills?Old vs. NewObjectives of sales training:Increase productivityImprove moraleLower turnoverImprove customer relationsImprove selling skills

17 Training Week 1: company and industry orientation
Week 2: team development trainingAll New hires complete weeks 1 and 2 togetherWeeks 3-6: Product and sales training within either hardware or software divisionWeeks 7-8: OTJ Training with retained employeeCan also serve as new hire's mentor going forwardWeeks 3-6Training on what types of customers they will be selling toEffective sales techniquesA 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 neededUpdated product trainingWebinars, classroom training, workbooks/quizzeswebinarsClassroom trainingmanuals

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 skillsEvaluation QuestionnaireTo assess favorability of the programTo discover how to improve training in the futureFind out the preferred methods of training:Classroom w/ instructorWorkbook/manualSeminarsrole-playCase studiesInternetTeleconferencing

20 Compensation Plan Combination plan: base salary + commissions
Software base salary: $55,000Hardware base salary: $66,000No commissions capNo acceleratorsCommission based on size of discount offered with saleHow 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
ArcxLuxArckBase salary$55,000 (SW)$66,000 (HW)$32,000$65,000Quota$100,000/quarter (SW)$250,000/quarter (HW)$100,000/quarter$1,000,000/yrSales CommissionsCalculated by size of discount offered with saleBase: 4% with acceleratorsBase: 9% without acceleratorsCapNone$6 million in sales per year

23 Employee Benefits Direct Reimbursement plans (for reasonable spending)
Advanced healthcare optionsLife insurance options401K

24 Motivating the Sales Force
Bi-annual Sales CompetitionsContinue Gold Star incentives and Hawking ClubSalespeople have options for their rewards:Original tropical vacation offered to members of the Hawking Club or Top Guns4 additional paid vacation daysMonetary 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 teamSelf-EvaluationOther SourcesExternal CustomersInternal CustomersFellow Sales Team MembersBryan Mynor360- Degree Feedback in Performance EvaluationFocus on the development and improvement of the sales teamFirst self-evaluation by salespersonOther sources of feedback=External customersInternal customersFellow sales-team membersBryan MynorMore productive dialogue between Mynor and sales team memberRather 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 aninternal customers= internal organization members who serve as resources in serving external customers

26 SourcesFeedback-Form---PDFJob-Analysis.html#axzz2RwQcO54h

27 QUESTIONS?

 

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