Sales & Marketing Excellence - Kienbaum

Focus on growth
Sales Force Effectiveness
Sales & Marketing Excellence
The Sales & Marketing Challenge
Performance Management
“It’s not the strongest of the species that survive, or the most intelligent, but the one most
responsive to change.”
(Charles Darwin)
The number of challenges sales & marketing organizations have had to manage since the end of the 90s
has increased significantly. Globalization opened the door for increased competition from formerly
separated markets, the appearance and growth of competitors, especially from Asia – first from Japan and
later China, India and soon other “tiger” countries – put traditional European and American companies
under pressure. First these tried to “defend” their traditional markets and customers and competed on price
and product quality only. They started cost restructuring programs, but soon it became clear that this
challenge could only be answered by the efforts of the whole value chain, first of all to identify customer
needs and consequently to change its offering in products and service at the right price to the identified
“order winners”.
Sales and Marketing can often no longer rely on their old and seemingly faithful customer base, but have to
adjust to the increased amount of requirements, needs to work closely with their innovation departments to
develop the right products, “search” for new markets and customer groups, think about segmentation of
markets, customers and products, and then decide on the the right management of customers even on a
global level, the channels they should be approached with, overall embrace change by transforming their
processes, systems, organizations and last but not least the people who drive the former.
The ultimate goal is to drive profitable revenue growth mid and long term. In order to create the required
flexibility Kienbaum has developed an approach to achieve the needed transformation and give sales and
marketing organizations the ability to implement further sustainable transformation for future challenges.
1
Sales Organisation

Sales & Marketing Excellence
Sales & Marketing Transformation Management – the Kienbaum Approach
To achieve sustainable growth of revenue and market share four main Elements need to be evaluated
and adjusted to the “voice of the customer & voice of the market“, finally improved and sustainably
implemented.
Focus on
Growth
Sales Force
Effectiveness
World Class
Sales
Management
SALES SUCCESS
Sustainable revenue growth and
market share
2
Performance
Management
Sales
Organization
Each of the four elements consists of 5 sub-blocks which in a logical way build on each other and need
to be addressed as a whole to act as enablers for a successful transformation.
Focus on
Growth
Aligned Market Strategy &
Sales Objectives
Pricing &
Tendering
“Customer”
Portfolio
"Product"
Portfolio
Voice of the customer /
Voice of the market
Sales Force
Effectiveness
Organizational knowledge
Market Position
Sales
Forecast Planning Process
Sales Process
(Customer Contact Time)
Roles & Responsibilities
Client Engagement
Performance
Management
Sales
Performance Mgmt. System
Sales
KPI’s
Market Intelligence
Sales Incentive &
Compensation Schemes
CRM & IT
Tools
Sales
Organization
Structural organization
Sales
Skills
Emotional
Skills
Sales
Assessment/Audits
Sales
Training & Development

Sales & Marketing Excellence
Sales Excellence Enablers
Sales & Marketing Transformation Management – the Kienbaum Approach
To achieve transformation and finally sustainable sales & marketing excellence Kienbaum suggests
a 4 phase approach to first identify the transformation need and capability of a sales & marketing
organization and second to design required changes and finally implement them.
Focus on
Growth
Sales Force
Effectiveness
Performance
Management
Sales
Organization
Top-Down Support
Pre -
Assessment
Assess Transformation
Need
Customized
Approach
Evaluation
Assess Transformation
Capability
Macro
Concept
3
Design
Conception
Develop Transformation
Capabilities
Bottom-up Involvement
Implementation -
Roadmap
Implementation
Realisation
Deliver Sales Progress &
Success
Kienbaum has developed an exemplary approach in which order in the 4 phases topics like for
example capturing “Voice of the customer”, “customer portfolio”, “sales skills” and soft
transformation factors like “human capital” are addressed.
Pre-Assessment Evaluation Design & Concept Implementation
Understand
Sales Vision & Mission
Interviews / Workshop(s)
with
Key-Sales-Players
High level Assessment &
Sales Data Analysis
Customized Approach and
Plan for Evaluation Phase
Program Introduction
Kick-Off-Communication
* R&R stands for Roles & Responsibilities
Understand
Aligned Market Strat./
Sales Objectives
Understand
Market Position
Analysis
Customer Portfolio
Analysis
Product Portfolio
Analysis
Sales Forecast + Planning
Process
Analysis knowledge
of Voice of Customer
(VOC)
Analysis
Pricing & Tendering
Analyze & Design common sales processes, values & behavior involving key sales personnel on every level
Analysis
Sales Process
Analysis
Sales KPI’s & Personal
Goal Struct.
Analysis
Sales Compensation &
Benefits Schemes
Analysis
Informat. Management Process
& IT (e.g. CRM)
Analysis
Market Intelligence &
Information stream
Analysis
R&R, Client Engagement
Analysis
Sales Performance
Management System
Analysis
Organizational Structure
Analysis
Sales & Emotional
Skills
Analysis
Training & Development
Identified Improvement,
levers & potential
Review 1 st Draft Macro
Concept
Transformation Plan &
Structure
Identified Targets for
Revenue Growth
Macro Concept
Design Micro Sales
Organization
Design Sales Approach /
Process (e.g. KAM)
Design Process capturing
VOC
Design Performance
Management System (incl.
Comp & Ben)
Design Human Capital
Development Plan
Design Sales Objectives
Design detailed Comm. &
Transformation Plan
Design concise KPI / Personal
Goal Structure
Implementation
Roadmap
Implementation / Promotion of “new” Sales
processes, values & behavior
Implementation of Design
Constant Project Status
Control & Management
Sustainability Plan
Possible Executive Search
and Outplacement
Support of Transformation
Process
End of Implementation /
Start Sustainability
Management
Sustainability Management
Sustainability
Management
Supported
by Kienbaum
as long
as required
or desired

Sales & Marketing Excellence
The Kienbaum Approach – Pre-Assessment Phase
Pre-Assessment
Understand
Sales Vision & Mission
Interviews / Workshop(s) with
Key-Sales-Players
High level Assessment & Sales
Data Analysis
Customized Approach and Plan for
Evaluation Phase
Program Introduction
Kick-Off-Communication
The Pre-Assessment Phase, consists of a “sales vision & mission” workshop and
interviews with prior defined key sales players and a first high level sales & marketing
data analysis. It ensures a common understanding between Kienbaum and the
customer’s sales & marketing transformation needs. As a result Kienbaum customizes
its exemplary consulting approach to these transformation needs and builds with a
customer team a detailed project plan for the Evaluation Phase containing timelines,
studies (process, data, management audits etc.) project organisation and data
requirements.
The Kienbaum Approach – Evaluation Phase
Understand
Aligned Market Strat./
Sales Objectives
Understand
Market Position
Analysis
Customer Portfolio
Analysis
Product Portfolio
Analysis
Sales Forecast + Planning
Process
Analysis knowledge
of Voice of Customer
(VOC)
Analysis
Pricing & Tendering
Evaluation
Analysis
Sales Process
Analysis
Sales KPI’s & Personal
Goal Struct.
Analysis
Sales Compensation &
Benefits Schemes
Analysis
Informat. Management Process
& IT (e.g. CRM)
Analysis
Market Intelligence &
Information stream
Analysis
R&R, Client Engagement
Analysis
Sales Performance
Management System
Analysis
Organizational Structure
Analysis
Sales & Emotional
Skills
Analysis
Training & Development
Identified Improvement,
levers & potential
Review 1 st Draft Macro
Concept
Transformation Plan &
Structure
Identified Targets for
Revenue Growth
Macro Concept
The Evaluation Phase assesses the ability of sales &
marketing for the four main elements focus on growth, sales
force effectiveness, performance management and sales
organization.
It has the purpose to understand the transformation
capability for each of these topics, and to build a macro
concept with key levers for improvement to fill existing gaps,
a business case for profitable growth and a to be state
after a transformation programme.
Focus on Growth: Understanding existing sales objectives and alignment with the
existing market & sales strategy. Assessing how the “Voice of the
customer / Voice of the market” has been captured and used (which
channels are used to capture VOC, interviews or questionnaires, what
are the methods to use the gained knowledge eg. conjoint analysis,
battlefield analysis). Assessment and evaluation of the product (abcxyz
analysis as well as life cycle analysis) and customer portfolio
(abc-xyz analysis profit and revenue).
4

Sales & Marketing Excellence
The Kienbaum Approach – Evaluation Phase
Sales Force Effectiveness: Assessment of sales processes, understanding effectiveness (face time with
„Understand
the root cause
why people
act in a
specific way“
„To drive
successful
transformation
and to get
sustainable
results change
the behavior of
your people“
old and new customers) and efficiency (sold units / € per hour face time).
Assessment of Roles & Responsibilities in the process (who does what),
assessment of client engagement approach (lonely hunter or team effort),
assessment of forecasting and planning processes. Real life studies will
be done on the processes to assess gaps and improvement potential (e.g.
Day-in-the-life-of-a-salesman studies which means spend a day with a
salesman or support function to see the problems through the eyes of the
observed party).
Sales Performance Assessment of the Sales Performance Management System
Management : understanding which sales key performance indicators (leading and lagging
„Create a
system which
ensures team
work and
shared
success“
KPIs) are used (financial and operational), how these are linked to the
personal goals and compensation as well as incentive structures.
Assessment how well feed back loops work (link to forecasting and planning
& sales execution), assessment which market intelligence exists (customers,
competitors and markets) and how it is used to support sales. Last but not
least assessment which CRM and IT systems are in use to link and display
the information in a concise way.
Sales Organization: Assessment of the sales organization (# of FTE, span of control, structure),
management & sales audits, assessment of emotional and sales skills,
assessment of existing training and development concept.
Macro Concept & Based on above assessments identification of gaps and improvement
Business Case: levers, estimation of profit and growth potential, base and stretched target
(per market, market segment, customer segments). Build up of a detailed
project plan for the design and implementation phase including timeline,
milestones for each sub topic, step to milestones and project structure as
well as definition of required resources external, but especially internal
(transformation agents) who will drive the transformation.
Based on conducted management and sales audits a measurement
system is designed to assess the status of transformation in the
organisation (including the measurement of behavioural change).
5

Sales & Marketing Excellence
The Kienbaum Approach – Design & Concept Phase
Design & Concept
Design Micro Sales Organization
Design Sales Approach / Process (e.g. KAM)
Design Process capturing VOC
Design Performance Management System (incl.
Comp & Ben)
Design Human Capital Development Plan
Design Sales Objectives
Design detailed Comm. & Transformation Plan
Design concise KPI / Personal Goal Structure
Implementation
Roadmap
The Design & Concept Phase refines the macro concept for identified
gaps and a future To-Be level to a micro state, producing a detailed
implementation roadmap including information on micro sales
organization, detailed sales process maps with responsibility matrix and
target values.
The management of the processes with a performance management
system is defined (KPI tree, forecast, planning, execution and reporting
loops), Personal goals are aligned to company goals , incentive
structure and compensation structure is clear. The micro design includes
clear target setting for customer and market segments (target revenue
and profitability expectations) as well as the sales approach (eg. Global
Key account management or system partners for A customers, B
Customers with sales teams like technical experts combined with a sales
person and market intelligence sales coordination. C customers will be
handed over to distributors and D customers eventually cut. Rising stars will
be identified and serviced according to revenue and profit expectation.).
Based on the 1. designed processes, 2. job descriptions and 3.
management as well as sales audits (sales & emotional skills) and 4.
training concepts, a first people selection has been done and actions
have been defined (human capital development plan, retention plans of
skills, buy in of skill, outplacement plan). A communication and
transformation plan has been designed to prepare the organisation for the
oncoming implementation.
The Kienbaum Approach – Implementation & Sustainability Phase
Implementation
Sustainability
Management
Implementation / Promotion of “new” Sales processes, values
& behavior
Implementation of Design
Constant Project Status Control
& Management
Sustainability Plan
Possible Executive Search and
Outplacement
Support of Transformation
Process
End of Implementation/
Start Sustainability Management
Supported
by Kienbaum
as long
as required
or desired
The Implementation Phase is very much driven by transformation agents
who are coached by Kienbaum transformation experts. They are working
against detailed milestones and steps to milestones plans. The
transformation progress is monitored continuously and the real task in
this phase is to make the envisioned changes come true, despite the
typical problems in transformation projects (in the first months when a lot of
work has to be done but typically there are limited results 80% of all
transformation projects are abandoned). A very strong project
management with strong champions in the management ensures the
right prioritisation and training and people development takes care of
the emotional project cycle. The previously described human capital
development and retention as well as (if necessary) outplacement of skills
is ongoing. The projects implementation success is measured weekly on
operational & financial project KPIs and the achievement of the designed
milestones.
After the last milestone sustainability audits, ongoing human and
training development and the right positioning of former transformation
agents ensures sustainability and continuous improvement
6

Kienbaum Expertise – Case Study 1
Case Study
Global Chemicals –
Improving a world wide
organization
7
Background
The company founded in 1960s as a joint-venture
between two bigger players, who both covered the the
niche of advanced polymer technology, is a solutiondriven
company. It uses advanced polymer
technology to produce high-performance plastic
materials in a wide spectrum of applications: from
industrial gears to children's toys, and from large
automotive body parts to miniature optical
components. The engineering plastics division of with
a turnover of $1bn, is primarily focused on automotive
and medical markets in Europe and North America.
The administration and research costs, which were
significantly above the benchmark of firms of
comparable size, endangered the division’s capability
of achieving corporate targets.
At the same time sales performance was below
expectations.
The aim of the project was to design a new
organisation and streamline processes in order to
enhance profitable growth, reduce loss drivers,
enhance customer service and accelerate product
development.
Kienbaum consultants, in collaboration with the
client, implemented a significant and sustainable
revenue growth and cost-reduction program in a
cross-national environment.

Challenge
After a 6 weeks evaluation phase following problem areas were identified:
» Sales and marketing had only an unstructured view of the real voice of
the customer and why the customer would prefer a supplier versus
another (order winner versus order qualifier). No formal process was in
place to capture the real “demand” and to feed it back intelligently to
support the sales process.
» The profitable product portfolio was rather old and new products only
partially proved as rising stars. Some products were not profitable
and each ton sold was profit lost.
» This problem was linked with an unstructured view on the existing
customer base. Customer segmentation, linked service levels and
how to approach each customer segment was not defined at all. The
company relied purely on the personal performance and judgment of
its sales people. On top of that the knowledge of potential customers
currently not in the portfolio was not adequate and also the knowledge
of the competition could be improved.
Approach
» As a result the knowledge and clustering of products in commodities and
specialties was incomplete or wrong and led to wrong pricing decisions.
» The sales process was not efficient. Sales people followed a “lonely hunter”
strategy keeping knowledge to themselves and having less than 20% face time
with the customer (from which 17% with existing and well established customers
and only 3% with new customers).
» The sales performance and process varied widely by sales man. There were
hardly any operational KPIs in place to measure operational sales performance
and such the forecast and pipeline accuracy was low (less than 40%!).
» Budgeting performance was poor as bonuses and incentives were only paid on
financial budget numbers which were always lower than actual performance but
going down year by year.
» A compensation assessment showed that compensation, even on the same
organizational level, was in the upper quartile of industry benchmarks.
» Due to the incentive structure there was little interest to work in teams.
The main challenge for the cross-functional team was the redesign and implementation of new processes. In order to
increase the competitive position a continually controlled process was introduced to improve the management of
design and development and design of new products in an efficient and timely manner.
In order to achieve this a “voice of the customer analysis” was done segmented by customers ( For “A” Customers
interviews and questionnaires on several levels, for “B” customers only top management interviews, but always including
production and supply chain to get knowledge of their needs eg. 0 ppm strategy).
More efficient processes were supported by a cost to serve model, adjusting the customer service to the customer
margin and by creating service packs per customer. Key accounts were defined by clear rules after developed by a
dedicated team.
8

Approach
All these activities were defined in a master account
plan that linked the activities to revenue goals
monitoring the achievement of business goals to allow
fast action in case of off-track performance. The pricing
of the most essential processes of the company was
reviewed. As a result a new procedure was designed to
improve the price setting by prevention of the setting of
unprofitable prices even if it meant the loss of revenue.
The sales organization which was previously directly
linked to regional heads was organized as a matrix and
according to the new processes staffed with suitable
personnel. Back office activities were clustered in a
shared service model (market intelligence)
(Accompanied by a training program and buy in of new
skills).
9
Results
» 1 year after implementation revenue growth 18%
» 1 year after implementation profit up by 27%
» New processes installed and organization in place with
15% cost savings
» New Customer Service and Management Process
» Behavioural change through a international design and
development of processes, systems, and coaching of
management
» Implementation of a global Performance Management
System
In co-operation with the transformation agents of the customer new customer service procedures
were conceived. The sales costs were significantly reduced by omission of all activities, which are
not valued by the customer. Special attention was devoted to the elimination and improvement of
inter- and intradepartmental interfaces.
The business management process was standardized to support a consistent reporting of
financial and operational key performance indicators (KPI) leading to fact-based management
decisions. These KPI's were frequently reviewed. The management was trained and coached to
react on variations and fluctuations in business in a timely manner.
The Company's goals were aligned, linked and broken down to each department, team and
individual not only based on financial but also operational Key performance indicators. These
KPIs were differentiated between leading and lagging KPIs and the leading KPIs were used for
forecasting and planning.
For Key accounts and selected rising stars teams were created with clear roles and
responsibilities. The team was purely measured and incentivized on the team's result and not on
individual performance. The team contained market intelligence back office support, a technical
support (partly customer facing) and a customer facing sales person (he/she channelled all
conversations, no direct conversation with technical sales guy).
C customers were handed over to distributors who were incentivized to optimize profits (they
got a share of 50% of profit above baseline).
D customers were discussed with distributors and some were developed some were cut out.
Partnerships were developed with “A” customers to develop a better and realistic forecast to
reduce working capital for the customer (order winner!). This included the plan for system joint
ventures (the plan was to offer products which can be used and sold as solutions to a
customer)
Unprofitable products were phased out.
A training and development program was put in place to support the teams. Sales people with
emotional deficiencies were exchanged and outplaced.
Transformation Agents were put in management positions and are 2 years later driving new
initiatives within a continuous improvement Cycle.
Within the project change agents had a special training in as lean six sigma black belts and
project management.

Kienbaum Expertise – Case Study 2
Case Study
Marketing & Sales
Performance – Market share
meets profitability
10
Challenge
The described company is the world’s leading
producer of sodium bicarbonate, popularly known as
baking soda, a natural product with a multitude of
uses. the company’s brand is one
of USA’s and Europe’s most trusted trademarks. Its
brands can be found in an remarkable 90% +
of American homes and 20% of West European homes.
Its Specialty Products Division (SPD)
sells speciality chemicals, animal nutritional feed
ingredients and specialty cleaners to a variety of
industries. SPD generates just over 15% of the
company’s £850 million revenues.
SPD is striving to grow its revenues by 36% over
three years, with 15% operating profit and 15%
ROCE achieved. While SPD had strong market share
and was perceived as a high-value provider, its
selling costs were high. An assessment conducted
by Kienbaum consultants showed that substantial
improvement in marketing and sales process efficiency
was needed for SPD to reach its strategic growth and
profitability goals.

Approach
SPD chartered a Marketing & Sales team comprised of
SPD personnel from across the division’s three
business lines as well as Kienbaum consultants. The
team’s overarching mission: Rigorously align Marketing
& Sales behaviours with the SPD business strategy.
Keys to fulfilling this mission included:
» Manage Marketing & Sales via a Business Process
Management system based on Key Process
Indicators (KPIs)
» Apply a cost to serve model to segment customers
and quantify profitability improvement
opportunities
» Document clear actions for each customer, to
pursue the profitability improvements
» Systematically pursue Marketing & Sales
profitability opportunities, via formal systems and
sustainable operating procedures
To begin, the team and analysed the baseline Marketing
& Sales performance and considered the root cause
issues identified in the assessment i.e. price variations,
lack of rationalisation of the distribution network and
special services being provided to customers without
cost recovery.
The team then applied a customer segmentation tool, to
objectively gauge the business value each of SPD’s
nearly 600 business customers. The tool segmented
customers based on revenue, profitability, strategic
importance and buying behaviour. Roughly a third of
the division’s customers were found to be unprofitable,
as served under current Marketing & Sales practices.
The team then defined service levels appropriate to
each customer segment. This entailed evaluating
more than 30 specific services SPD typically provides,
in terms of their cost and their value to customers.
With the customer segmentation and service level
definitions in hand, the team was able to map out
formal transition plans for each SPD customer. The
transition plans rationalised pricing, distribution and
services in accordance with the division’s overall
revenue, profitability and earnings goals. A new
account screening process was also implemented to
maintain the profitability of the customers base as
new customers are added.
From there, the focus was on integrating and
formalising the new Marketing & Sales practices. Key
steps in this part of the effort included:
11
Results
» Identified £6.9 million in profitability
improvement opportunities
» Account management action plans launched to
harvest £ 1.5 million in annualized benefits
» Cost to serve model defined, installed and
automated
Client Comments
“The project is a success, we accomplished our
short-term financial targets and made all our
milestones. More important, the structures and
mindset are now in place for the SPD to credibly
go after our stretch goal to reach £160 million in
sales/15% operating profit/15% ROCE. At this point,
it´s up to us. We are now positioned to deliver the
results.”
» Develop and install Marketing & Sales Performance
Management System, KPIs and targets; use at
appropriate meetings
» Realign sales force to ensure highest levels of
service to most profitable customers segments
» Align account and incentives plans to updated
account management priorities
» Redesign sales evaluations based on strategic KPIs
» Enact structural changes to sales and marketing
teams, based on strategic direction chosen

Kienbaum Expertise – Sales & Marketing Excellence in Chemicals
and Pharma as well as in other Industries
Why Kienbaum
» Sales & Marketing Expertise in Chemical & Pharma as well as other industries.
» Proven expertise of successful and sustainable transformation and implementation.
» Kienbaum shares risk and success with its customers (retention & success fee model).
» Kienbaum can support the whole transformation value chain from process and system analysis
to management and compensation audits and even skill retention and outplacement, it offers
specialized service concerning virtually all human resource issues.
» Kienbaum offers senior teams and consultants who can lead, coach and enable customer’s
transformation agents to make the transformation not only sustainable, but a base for further
continuous improvement (e.g. Lean Six Sigma development & qualification).
12

1000
Über Kienbaum
Revenue 2003-2007
Employees
800
600
400
200
0
Our Guiding Vision
Kontakt:
70 Mio. €
Kienbaum Management Consultants GmbH
Unternehmensbereich Industrie
Georg-Glock-Straße 8
40474 Düsseldorf
Matthias Brey
Director
77 Mio. € 84 Mio. €
433 439 448
+49 (2 11) 96 59 – 263
Fax +49 (2 11) 96 59 – 335
Mobil +49 (172) 8810483
95 Mio. €
490
E-mail: matthias.brey@kienbaum.de
Revenue
(in Mio. EUR)
117 Mio. €
565
2003 2004 2005 2006 2007E
100
80
60
40
20
0
13
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USA
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“Pragmatic management consulting with explicit consideration for the crucial link between the
driving forces behind company value and the levers of human resources”