Distributor Best Practice Sharing - Cummins.com

K. C. Hall
Cummins Distributor
Success & Best Practice
Sharing Process

Distributor Best Practice Sharing
Objective:
Improve the process for sharing successful filtration sales
initiatives from nonexistent to an average of 5 Cummins
Distributors learning a best practice each month, without adding
support headcount.
Major Improvement:
Tools, templates and repeatable methods were developed and
documented which enable prioritization and facilitation of
Cummins Distributors sharing their sales successes with other
distributors. The process defines an approach to share high
yield, proven, "turn key" initiatives and defines methods to
encourage implementation and monitor feedback to snowball
results of broader execution.
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Best Practice Sharing – Team
Russ Bretell
Mark Creasy
Kent MacCarl
K. C. Hall Dewayne Jenkins Jeff Whiteaker
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Best Practice Sharing Process
Potential
Best Practice
Identified
Anyone
Possible
Best
Practice List
Complete Best
Practice
Information Form
Distributor
Hopper
List
Assess
&
Prioritize
Schedule
Share
date
Steering
Comm.
Prepare
the
Presentation
Share the BP
=========
Quarterly
Reward
Distributor
Monitor
List
Update
Info
Terr Mgr
CD Team
Distributor
w/ CF assist
Distributor;
CF mtg lead
Load
Database
Mktg rep
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MSA Study & Capability Analysis
Today, I hear about other distributor's filtration sales best practices through: (circle all that apply)
I don't Word of mouth 6 Database 1 Reports I ask 5
Today, I would rate the effectiveness of distributor sharing of filtration sales best practices as:
Non-existent 3 Not effective 4 Somewhat 2 Very effective Extremely
How important do you think it is that we find a way to share filtration sales best practices
Not at all Could be important Somewhat Very important 4 Extremely 5
While Distributors felt that it was important
to share filtration sales best practices,
there was not an effective process being used
and people relied on word of mouth.
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Bottom 2
Middle
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Top 2
Voice of the Customer (Distributor)
Bottom 2
Importance of Information to share
Middle
100%
80%
60%
40%
20%
0%
Top 2
Profit & Margin
Dist. Benefits
Payback Time
Headcount Req'd
Sales Growth
Mkt/Cust specifics
Dist. Challenges
Lessons learned
Investment Req'd
Time to implement
Detailed step-step
Examples, pics
Ongoing costs
Product specifics
Importance of Distributor support elements
100%
80%
60%
40%
20%
0%
Present Template Info Checklist Fianance Template Time Template Facilitator

Data Collection: VOC – “KJ Lite”
Process needs to be effective with execution of:
– Quarterly Best Practice sharing session
... with user-friendly interface, good computer connection,
strong facilitation, distributor presenter preparation
– Standard presentation format
... that addresses key data needs (profit, sales growth,
benefits, resources, payback) plus other key information
– Communication before the sharing event
... to drive interest and get the key people involved
– Storage of information for future reference
... including presentation materials, session Q&A,
on-going distributor implementation results status
– Training for effective facilitation & execution
... internal personnel and sub-process owners to
drive clear expectations of work and flow
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Kano
“Surprise &
Delighters”
(Nee d is no t met )
Wall-Street Journal
approach
Effective Quarterly
Sharing Session
Link to Filtration
Excellence Program
Sa tis fied
Fe eling
☺
"O n e -Di m e n s i o n a l" Qu a li t y
User-friendly
database
Sharing Distributor
gets a Reward
Turnkey Program
Proven, valuable
Projects
Effective Presentation
Format & Content
Simple and usefull
overall process
Advance
notice
Solid results - high benefit
for low investment
Forward looking
schedule
Presentation & presentor
well prepared
Effective
Facilitator
“Competitive” the
more the better
Regular CF TM
engagement & support
Distributor results
updated regularly
Phy s ic all y
Ful fi lled
Co ndit io n
(Nee d is m e t)
Projects stored for future
reference
Presentation template
not time-consumming to
complete
Di ss a tis fied
Fe eli ng
Good systems &
teleconference connections
“Taken for
Granted"
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Communication Timeline Guidelines
Generic Communication Roadmap for Quarterly Best Practice Sharing Sessions
Notes: 1. schedule below assumes 4 weeks per month … actual calendar will allow an extra week at times
2. monthly TM's & Cummins Team should identify possible Best Practices for the hopper
3. monthly BP Steering Committee meetings (3rd Thursday) to review hopper and info sheets
4. the scheduled Best Practice Sharing Sessions will be the 2nd Thursday of Feb, May, Aug, Nov.
month 2 months before
1 month before
BP Sharing Month
weeks -9 -8 -7 -6 -5 -4 -3 -2 -1 Session +1 +2
Repeat … every quarter ...
Identify possible BP's to get info sheet on
Send BP Info sheet to distributor requesting to fill out
Follow up phone call with distributor champ/PFC
Reminder announcement to all distributors of upcoming session in 6 weeks
Send presentation templates to presenting distributors
Follow up phone call with presenting distributors
Firm up BP sharing session & projects to be shared
Send notification to all distributors of upcoming session & specifics
Call/email key attendees desired to confirm attendance
Conduct Session - Document Q&A and Interest
Load presentation (W/ Q&A and interest) in databases
Announce in CF database in monthly notice
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Best Practice Submissions
Sharing Successful Filtration Sales Approaches among Distributors.
Initial information Form for possible Best Practice to be shared with Cummins Distributors
Title:
Distributor:
Description:
Dist Champion: Today's Date: mm/dd/yy
General information
Financial information
Launch Date: When was the program launched mm/yy Sales: What annualized sales are you realizing $k
If less than a year, how much sales since launch $k
Prep Time: How many months did it take to get ready to launch # Margin: What % net margins are you realizing xx%
Factory support: Did you require any support from the factory yes/no On-going costs: What on-going expenses are there $k
If yes, what Support item 1 … List: item 1 $k
support item 2 … item 2 $k
support item 3 … item 3 $k
Markets: What markets/customers are involved Investment: Any capital required (what How much $) $k
xxx markets item 1 $k
xxx customers item 2 $k
Products: What products are involved Manpower/people required prior to launch # - mo.
xxx products
(how many / % of people time for how many months
Benefits: What key benefits have you seen What non-people expenses were needed $k
benefit 1 … item 1 $k
benefit 2 … item 2 $k
benefit 3 … item 3 $k
Challenges: What challenges did you overcome Payback: What was your expected payback time in months #
challenge 1 …
challenge 2 … What was your actual payback time in months #
challenge 3 …
Applicability:
State reasons why other distributors should, or may not, see the same benefits. (focus, structure, environment, etc)
Other:
Any other information you believe is important to understand about this program
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Prioritization Process & Criteria
Category Weight Score Definition (1-10 scale)
Annual Sales realized 10 1 for every $10k (ex - $20k = 2; $100k+ = 10)
Margin / net profit 10 1 for every point over 10% (ex - 12% = 2; 20%+ = 10)
Implementation time 7 10 minus # months (ex - 1 mo. = 9; 6 mo. = 4)
Payback time 10 same as implementation time
Investment required - capital 7 Annual margin minus capital spend (10 max)
Investment required - people 10 10 minus #peopleXimplementation months
applicability to other distributors 10 # of distributors (ex - 2 = 2; 10+ = 10)
Difficulty 8 subjective: 10 = super simple; 1 = very difficult (avg. votes in room)
Alignment with CFBU strategy 7 subjective: 10 = direct hit; 1 = stretch to connect (avg. votes in room)
Factory support needed 7 10 minus $10k needed per distributor
Proven-ness 8 # of months worth of demonstrated results (10 max)
TOTAL
Highest priority projects will be those
that have proven to yield high results
with minimal investment or rapid payback.
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Best Practice Sharing Presentation
(Summary – see separate Power Point template)
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Description # slides Content
Project title 1 Distributor, Title, document author, distributor expert
Summary 1 Financial summary, Time/Resource to implement, Investment, Payback, Benefits
Situation 1 Environment - why was this done, distributor needs, customer needs
Description 1 High level bullet point description of project, program, key elements
Lessons Learned 1 What went well What did not If did over again, what would you change
Closing 1 Next steps at distributor, who to contact for more info
Interest Question 1 Which distributors think they want to do this - get count/names; other updates
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Start Appendix here
Supporting Info up to 5 Pictures, documents, tools, materials, photos, etc.
Timeline 1 Key steps, tasks, milestones, decision points
Keys to success 1 List the key ingredients or reasons for this program/project being a success
Customer benefits 1 Customer benefits demonstrated (tangible, intangible)
Distributor benefits 1 Distributor benefits demonstrated (tangible, intangible)
Challenges 1 Key challenges/obstacles overcome - how Challenges/obstacles that still exist.
Financials 2 Justification, P&L, Cashflow, sales/margin mo. Trends, investment/payback ROI
Open Advice 1 Open - what would you advise other distributors on this project
Other Appendix as need Open - whatever other info would be helpful to include in the package
Q&A Capture as many as needed Scribe to capture slide #, question, and answer from discussion.
Q&A slides are for retention & reference purposes only - not part of presentation.
Total = 20
Power Point presentation template is
available to ease the preparation burden.
Most information comes from initial submission.

Tool for On-Going Monitoring of Status
after Best Practices Have Been Shared
Cummins Filtration - Distributor Successes and Best Practice Implementation Summary
Pilot
Distributor Atlantic Bridgeway Cal Pacific Central Pwr Crosspoint
Status Status Status Status Status
BP # Title Distributor Expert 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6
Dealer Fill-In Power Systems Kibler/Schultz
1 &
West
Maher
x x x x x x x x x x x
Growth Program Western Canada Hazelwood
2 Maintenance Kits Southern Plains Stoker, Karen
Walthers
x x x x
3
4
5
6
Status Key:
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1. Participated in BP Sharing session
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2. Expressed interest in implementing
9
10
3. In process of implementing
4. Executed and Active
5. Results available - R/Y/G vs expectations
6. Recommend to other distributors
At each quarterly session, record attendees,
expressed interest in implementing the opportunity just
shared, and also record status of previous plans.
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