XYZ Sales Operations Plan

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					XYZ Company
Sales Operations & Opportunity Development Plan
I.       Overview
The following Sales Operations & Opportunity Development Plan has been created to address the
critical needs identified by XYZ Company in a statement of Work issued on 9/1/2007 in the areas
of Sales Organization Development/Management and Opportunity Development.
The purpose of this document is to identify critical areas for development and/or change, make
recommendations to address those needs in order to meet 2008 Business Plan revenue
requirements, and prioritize each area with appropriate time frames to meet those needs.
The focus of this document covers three core areas of 1) Sales Organization Development, 2)
Sales Organization Management, and 3) Opportunity Development.

II.      Developmental Roadmap
The following areas have been identified by XYZ Company as their highest priority in order to
begin driving the development of business opportunities to meet stated financial goals for 2008.
A. Sales Organization Development – With funding now available the first and most critical
   objective for XYZ Company is to establish the organization and processes to drive revenues
   within their stated costs structure. This is the identification, hiring, development and growth of

   the sales organization throughout the US. It is important to note, that the first three
   categories listed below have critical time requirements to ensure the sales process gains
   momentum going into Fiscal Year 2008.

      Phase I - Immediate
      1. Job Titles/Description Finalization – Now that XYZ Company has established its revenue
         and expense requirements for the next 18 months, identification of the required resources
         needs to formalized and documented to begin the hiring process to include the desired
         experience, education and skill sets.
      2. Salary & Compensation Plan – Understanding the existing marketplace and the desired
         resources stated above, XYZ Company must formalize a competitive salary and
         bonus/compensation structure that is commensurate with those requirements and takes “cost
         of living” into consideration in the key areas targeted (e.g. Washington DC, NYC and LA).
      3. Candidate Interviews & Hiring – Once job descriptions, resource requirements and salary
         plan has been finalized, the next critical step is to begin advertising these jobs in the designated
         target cities ASAP to begin the interviewing process.

      Phase II – Within 45 Days
      1. Sales Territories – In tandem with completing the tasks within Phase I above, XYZ Company
         needs to assess it most immediate needs from a client/geographic standpoint to determine its
         priorities for sales and client opportunities to provide the fastest generation of revenues and
         establishment of client relationships.
      2. Quota Assignments (2007-2008) – Once the Sales & Compensation plan has been
         determined XYZ Company must also create a short-term and long-term quota plan to meet
         financial objectives with a “ramp-up” for new sales people taken into consideration.
   3. Initial Training – Equally important to the immediate hiring process is putting into effect a
      “crash course” training plan that can get new employees versed on XYZ Company and its
      products ASAP including the value add statements to assist in interviewing clients and assessing
      the best solution(s) to meet those needs.
   4. Job Performance and Management Plan – Finally, it’s critical that XYZ Company has a
      process in place from “day one” to monitor and manage the sales process to ensure that sales
      resources are being given the best opportunities to be successful. This process needs to
      include the metrics, benchmarks, data capture, data entry and retrieval of relevant information
      for the SVP to manage the process on a real-time basis.
   Phase III – Within 60 Days
   1. Long-term Training – Once new sales employees are in-place and begin the learning/sales
      process through real-time experience, a longer sales training program needs to be put into
      place to grow skills and knowledge to maximize their ability to drive revenues as well as enjoy a
      successful career at XYZ Company (retention).
   2. Sales Support Process – As part of the sales process, the sales organization must have a
      support mechanism to help them assess sales opportunities, create appropriate materials, build
      lead lists, enter information in CRM, pull reports to manage success and ensure customer
      satisfaction throughout and after the sales process.
   3. Sales Tracking Process – As a subset to the Job Performance tracking process is the ability
      to use information within CRM to track the sales process, cycle times and rates of success to
      build a stronger sales force and assess the needs of employees, the corporation and the client.

B. Sales Organization Management – Once the XYZ Company has been put into place, it is
   critical to create a standardized process to monitor the progress of each individual as well as
   the organization in order to track progress, identify areas of deficiency and/or roadblocks to
   success, put changes into place real-time and motivate successful behavior through recognition
   and career-pathing.
   A subset of this process is developing the tools and metrics to monitor and analyze the process
   to ensure maximum success.
   1. Performance Metrics, Objectives & Processes – The first step in the Sales Management
      process is to develop Performance Metrics and develop a “Management by Objectives” process
      to provide the means to manage individuals and the organization as a whole that is based upon
      a uniform set of standards. The key to this process is to develop standards and processes that
      are consistent to all employees and can be easily tracked, monitored and compared.
   2. Business Tools – The most important tool in the Sales Operations process is the development
      of business tools that assist the BDM do his/her job successfully while providing the intelligence
      to Sales and Corporate Management to manage the business and make adjustments real-time
      as needed. The primary tool in this area is the use and development a Client Relationship
      Management (CRM) tool which would be used to manage opportunities and the sales “pipeline”
      as well as the availability of reports for management to track progress and obstacles.
C. Business Opportunity Development – Defines the various activities required to build client
   lead lists, develop clients and new opportunities, grow existing client relationships and evolve
   existing XYZ Company products and services to meet the needs of clients today as well as in
   the future. This area includes the “end-to-end” process of the standard sales cycle from
   identification of opportunities to closure as well as the “non-standard” sales cycle which will
   focus on “custom deals.” The latter must emphasize a centralized strategic pricing process
   that builds a control point into the way pricing and proposals are presented to clients to
   maintain fiscal responsibility and client consistency.
   1. Roles & Responsibilities – The first step within the strategic pricing process is identifying
      and documenting the roles and responsibilities of each member of the sales organization within
      the overall process of putting competitive pricing/proposals in front of the client.
   2. Standard Sales Process – The first step in this area is to develop a consistent sales process
      that allows XYZ Company to uncover client needs to and put forth a competitive proposal that
      will capture the client’s interest and lead to a successful sale. The process needs to be
      documented and managed on a consistent basis to understand the overall “sales cycle” which
      allows XYZ Company to know the anticipated timelines and revenue outcomes of a typical
      successful sale. As time progresses this sales cycle becomes imperative to XYZ Company in
      terms of managing resources and financial expectations of the corporation and the Product
   3. Non-standard/Custom Deal Process – Once the roles are established, the next step is to
      document a process that sets specific standards for pricing XYZ Company
      products/services/features and presenting them to client. This process must be designed to
      ensure consistency in terms of what information is given to clients from both the XYZ Company
      sales organization as well as the external sales channel.

III. Operational Plan
The following are recommendations on how XYZ Company must move forward and in what order

of priority to build a successful sales organization and ensure its ability to create a revenue stream
and sales pipeline to hit January, 2008 at full stride. It is extremely important for XYZ Company to
understand that it will take at least 90 days to get qualified people onboard and generating
opportunities so it must act quickly in order to meet its 2008 sales/revenue goals.
A. Sales Organization Development – The most critical objective for XYZ Company to drive
   revenues identified in the Corporate Business Plan and Strategy.

   Sales Development – Phase I
   1. Job Titles/Description Finalization – Based upon the decision by XYZ Company to move
      forward with the recommended “Business Development Consultancy” model described above,
      the following positions should be formalized immediately to begin the hiring process:
       a. Business Development Associate – Sales support role designed to assist the sales team
          develop new business customer’s leads and information for business opportunities. Experience,
          education and skills required:
          − Entry Level Research & Sales Support position
          − College Degree
          − Identify/Research/Develop new client leads by geographic territory
          − Work with individual Sales Managers by territory to develop calling plans
          − Monthly Reporting - CRM
          − Billing/Collection issues
          − Lead generation
           ! General Job Description – The Business Development Associate is an entry-level Sales
             Support manager who works with each Business Development Manager to identify leads by
             industry/vertical and region and follows up with initial contact to (hunter role) key clients to
             begin the opportunity development process. In addition the, BDA assists the VP, Sales in
             running monthly reports to monitor business growth as well as the individual performance of
             each BDM.
b. Business Development Manager – Experienced Business Development and Opportunity
   Manager with previous experience in assessing client needs and translating XYZ Company’s
   product line and core competencies towards creating a solution. Experience, education and
   skills required:
   − 5+ Years of Experience
   − College Degree (MBA Preferred)
   − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
   − Understanding Client Business Models
   − Identify/Research/Develop new client relationships
   − Opportunity Assessment (client business needs)
   − Opportunity Development (Proposals)
   − Lead generation
   − Fact finding/Meetings with clients and prospects
   − Understanding of Financials
   − Communication Skills
   − Writing Skills
   − Presentation Skills
   − Build/Maintain existing client relationships
   − Monthly Reporting - CRM
   − Consultancy Sales
   − Multiple-Industry Expertise
   ! General Job Description – The Business Development Manager is responsible for
     developing new business opportunities through lead development, client relationship building
     delivering timely and accurate proposals that meet specific client needs. Approximately 75%

DRAFTof the BDM’s time is spent cultivating new clients and business opportunities as well as
     partnering with the external XYZ Company Sales Channel to ensure a consistent price and
     product message is delivered to the client. The remaining 25% is spent working with existing
     clients to ensure satisfaction and long-term business retention.
c. Senior Business Development Manager – Experienced Business Development and
   Opportunity Manager with previous experience in assessing client needs and translating XYZ
   Company’s product line and core competencies towards creating a solution. Experience,
   education and skills required:
   − 7+ Years of Experience
   − College Degree (MBA Preferred)
   − Existing client lead list within preferred industry segments
   − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
   − Understanding Client Business Models
   − Identify/Research/Develop new client relationships
   − Opportunity Assessment (client business needs)
   − Opportunity Development (Proposals)
   − Lead generation
   − Fact finding/Meetings with clients and prospects
   − Understanding of Financials
   − Communication Skills
   − Writing Skills
   − Presentation Skills
   − Build/Maintain existing client relationships
   − Monthly Reporting - CRM
   − Consultancy Sales
   − Multiple-Industry Expertise
   ! General Job Description – The Senior Business Development Manager is responsible for
     developing new business opportunities through lead development, client relationship building
      delivering timely and accurate proposals that meet specific client needs. Approximately 50%
      of the BDM’s time is spent cultivating new clients and business opportunities as well as
      partnering with the external XYZ Company Sales Channel to ensure a consistent price and
      product message is delivered to the client. The remaining 59% is spent working with existing
      clients to ensure satisfaction and long-term business retention.
d. Director, Business Development – Experienced Business Development and Strategic Pricing
   Manager with ability to a) assess client needs and translating XYZ Company’s product line and
   core competencies towards creating a solution, b) craft and approve strategic pricing proposals
   for clients, and c) serve as primary interface to external sales channel and prove real-time
   information to the Product House based upon the changing marketplace. In addition, DBD will
   provide field support to sales/business development team through form of mentoring and
   coaching. Experience, education and skills required:
   − 12+ Years of Experience
   − College Degree (MBA Preferred)
   − Existing client lead list within preferred industry segments
   − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
   − Understanding Client Business Models
   − Custom Deal Architecture & Strategic Pricing
   − Financial Tracking and Forecasting Responsibilities
   − Channel Sales Management
   − Product Marketing
   − Identify/Research/Develop new client relationships
   − Opportunity Assessment (client business needs)
   − Opportunity Development (Proposals)

   − Lead generation
   − Fact finding/Meetings with clients and prospects
   − Understanding of Financials
   − Communication Skills
   − Writing Skills
   − Presentation Skills
   − Build/Maintain existing client relationships
   − Monthly Reporting - CRM
   − Consultancy Sales
   − Sales leadership and mentoring of field sales organization
   − Multiple-Industry Expertise
    ! General Job Description – The Director is responsible for developing new business
      opportunities through lead development, client relationship building delivering timely and
      accurate proposals that meet specific client needs. The DBD focuses on the following core
        1.   New Business Opportunities - Cultivate new clients and opportunities
        2.   Lead Deal Architect - Manage and central point for all price/proposals between the field/channel
             and CFO and serve as primary deal escalation point to assist field close complex, strategic
        3.   Provide intelligence to the Product House based upon client input of price, contract terms and
        4.   Field Sales Support –Assist field in identification of new business opportunities, creation of
             proposals and strategic sales plan.
e. Vice President, Business Development – Experienced leader of Sales, Marketing and
   Business Development Managers with previous experience in assessing managing, coaching and
   motivating sales resources. Experience, education and skills required:
   − 15+ Years of Experience
   − College Degree (MBA Preferred)
   − Coaching, Mentoring and Motivating Sales Teams
       −   Custom Deal Architecture & Strategic Pricing
       −   Product Marketing
       −   Financial Tracking and Forecasting Responsibilities
       −   Communication Skills
       −   Writing Skills
       −   Presentation Skills
       −   Multiple-Industry Expertise
       ! General Job Description – The VP Business Development is responsible for managing and
         driving the sales organization to success through coaching, mentoring and motivation as well
         as all aspects of day-to-day operational management including financials, forecasting and
         training. In addition, VP has corporate fiscal responsibility within the strategic pricing and
         proposal process to ensure XYZ Company meets its financial objectives. VP also serves as
         the primary interface between the client and the Product House to ensure that XYZ Company
         products and features meet the objectives of the client and the existing marketplace.
       In addition to the experience and education levels listed above by title, the BDM should specific
       experience in Business Development, Strategic Planning or Solution Sales. Key skills and
       experiences should be in finding/generating leads, understanding the business models of their
       particular verticals, proposing customized solutions that can enhance those business models, the
       ability to present and communicate their solutions, seek out “C” level management (Key Decision
       Makers – KDMs) within those enterprises, client relationship building and the ability follow up
       and close. Other crucial skills include:
       −   Ability to understand the business models of their respective clients/verticals
       −   Ability to translate that knowledge and research to client-focused SWOT Analysis

           Computer literacy in order to develop presentation materials, proposals and results tracking.
           Ability to use the Internet to search in for information and opportunities is also a critical skill.
           The ability to work autonomously and in a Virtual Office environment with little managerial,
           marketing or IT support.
       Note – The ideal scenario is to have a Senior BDM and BDM paired up within the NYC and DC
       offices to provide team support and mentoring especially in a Virtual Office environment.
       Considerations should also be made to put a second BDM in Los Angeles to handle northern
       California as the western region becomes more cultivated.
2. Salary & Compensation Plan – Based upon the needs of XYZ Company to place qualified
   BDM’s in key and high “cost-of-living” markets like NYC, LA and Washington DC, it is
   recommended that management create a financial package that has three components, salary,
   compensation and bonus that is “top heavy” with regards to salary to attract the most
   experienced professionals as possible.
   a. Salary – In order to bring in experience and qualified candidates in high cost-of-living areas, it
      is recommended that XYZ Company pay a salary plan that rewards responsible managers who
      can work autonomously and demonstrates a professional maturity to find, cultivate and maintain
      long-term client relationships. To meet these requirements, the following ranges are
              Business Development Associate             $50,000 - $65,000
              Business Development Manager               $70,000 - $85,000
           Senior Business Development Manager           $95,000 - $110,000
       Note - This higher salary structure also resolves issues for new employees making little or no
       compensation for 1-4 months as they ramp up into their job and create a pipeline.
   b. Compensation – With more emphasis on hiring experienced and mature professionals through
      higher salaries, XYZ Company should create a minimum compensation plan that incentivizes the
      manager to meet or exceed their annual sales quotas but also recognizes that the manager is
       receiving 75% of their total annual earnings through salary. The way to motivate the manager
       however is to provide escalators once they “exceed plan” that makes it lucrative for them to
       excel beyond their quota. The following is a chart of shows the compensation paid per lead/sale
       up at 100% of quota and above:
             Lead/Sale Type             @ 0-100%     @ 100.1%        @ 105.1%       @ 110.1%
              Product I Leads             $25            $30             $34            $38
             Product II Leads             $50            $60             $68            $75
              Product I Sales            $2,500         $3,000          $3,375         $3,750
              Product II Sales           $5,000         $6,000          $6,750         $7,500

       Note – Key to the chart above is a lowered per sale compensation plan up to 100% of quota to
       balance out higher salaries. What the escalators do is incentivize each BDM to exceed 100% of
       quota where the plan now would pay at 110% of quota what the existing plan pays at 100%. It
       is very important to provide a “carrot” for the BDM to want to exceed quota. Flat payouts per
       sale will ultimately allow the BDM to give up during adversity seeing no advantage to excel!

   c. Bonus – Based on XYZ Company’s profitability/ROI model, a potential bonus 5% of base salary
      per annum based upon the BDM meeting 100% of objectives. The bonus can grow beyond 5%
      incrementally if the BDM surpasses his/her personal, corporate and revenue targets. These
      bonuses should be paid in increments either once or twice per year based upon the needs of the
       Note – Each BDM can receive a portion of this bonus if they fall below 100% of their targets,
       but this will only apply to personal objectives and not revenue objectives as there should be no

       partial reward for failure to meet quota.
   Listed below are the salary, compensation and bonus ranges per title based upon meeting exactly
   100% of all targets.
          BDA             Base Salary        @100%           Bonus @100%              Range
            Lowest         $55,000       +    $4,080       +    $2,750   =           $61,830
             Middle        $60,000       +    $4,080       +    $3,000   =           $67,080
            Highest        $65,000       +    $4,080       +    $3,250   =           $72,330

          BDM             Base Salary        @100%           Bonus @100%             Range
            Lowest         $70,000       +   $21,000       +    $3,500   =          $94,500
             Middle        $77,500       +   $21,000       +    $3,875   =          $102,375
            Highest        $85,000       +   $21,000       +    $4,250   =          $110,250

          SBDM            Base Salary        @100%             Bonus @100%           Range
            Lowest         $90,000       +   $30,000       +      $4,500   =        $124,500
             Middle        $97,500       +   $30,000       +      $4,875   =        $132,375
            Highest        $105,000      +   $30,000       +      $5,250   =        $140,250

   Note – The above salary, compensation and bonus plan is suggested as a “Year 1” plan to both
   entice the best candidates immediately to ensure quicker sales revenue traction as well as promote a
   higher rate of retention.
3. Candidate Interviews & Hiring – Based upon the timeline above, the following steps should
   then be followed ASAP:
   a. Begin posting job ads nationally for BDM’s in NYC (2) and Washington DC (2) immediately with
      considerations towards bringing candidates in for Chicago, Atlanta and possibly Dallas by EOY
   b. Begin interviewing ASAP with the goal of having at least one NYC and DC candidate hired by
      mid-October, 2007. These two initial candidates should be senior managers and paid at the
      highest range to gain as much traction within the sales cycle before mid-December, 2007. It is
      critical that there be a viable pipeline of sales opportunities developed and ready for closure by
      late January, 2008.
   c. If possible, finding additional candidates in NYC, DC, Dallas and potentially Chicago and Atlanta
      by YE 2007 will be critical to meeting 2008 sales revenue objectives.
   Note – It is critical to the XYZ Company Technologies 2008 Business Plan to begin the hiring process
   immediately in order to have a sales pipeline robust enough to begin producing billed revenue in
   early January.

Sales Development – Phase II
1. Sales Territories – In tandem with the hiring plan listed above, emphasis on bring candidates
   in to managed strategically identified geographic and industry verticals is extremely important
   to building a sales pipeline that will provide as many high Probability of Sales (POS) as possible
   in a short period of time. With this in mind, XYZ Company should focus it internal sales team in
   the verticals within the following geographic areas:
   a. New York City – Approximately 60% of all the Fortune 100/500 has HQ or Operational Centers
      within the New York, New Jersey and Connecticut tri-state area. In particular, the Financial,

      Entertainment, Telecommunications, Chemical, Pharmaceutical, Tobacco and Professional Sports
      verticals, all of which are primary candidates for both Product I and II.
   b. Washington DC – This should be a crucial location for XYZ Company for both products
      considering the high amount of Political, Information Technology (Dulles Corridor in Virginia),
      Hotels (Marriott), Trade Associations and Defense Contractors (270 Technology Corridor in
   c. Dallas/Ft. Worth (or Houston) – Dallas is one of the top five cities in the US for corporate
      Headquarters as well as proximity to highly visible Petroleum Industry, Airlines and Hotels.
      Texas has also had several political scandals in recent years e.g. Tom DeLay. Also close
      proximity to Louisiana with several post-Katrina issues at every state, federal and corporate level
      as well as Wal-Mart.
   d. Los Angeles – Entertainment industry (Product I for improving images of companies and their
      stars as well as Product II for helping promote upcoming movies and albums). Another area for
      consideration would be the concentration of High Net-worth Individuals. Also has proximity to
      Las Vegas (Casinos, Hotels and Gaming) and Phoenix (American Express, America West, Copper
      Mining and Best Western Hotels.
   e. Atlanta (or Miami) – Delta Airlines (bankruptcy), Coca Cola (global expansion and PR issues),
      Bell South (merger with AT&T), CNN, Ted Turner (CNN and Philanthropic), WorldSpan, UPS,
      Home Depot (fierce competition with Lowes), Georgia-Pacific (environmental issues) and
      proximity to Miami (hotels and cruise industry).
   f.   Chicago – Proximity to the “Rust Belt” throughout Michigan, Indiana, Ohio, Pennsylvania and
        Illinois (steel and automotive and parts manufacturers) e.g. GM, Ford, Bridgestone/Firestone,
        Daimler/Chrysler, Whirlpool and US Steel. Others include United Airlines (bankruptcy), Dow
        Chemical (environmental issues) and KMart. Minneapolis contains several financial institutions
        including AMEX, MasterCard, Northwest Airlines, General Mills, Target, Radisson & Carlson
        Hotels and 3M.
   g. San Francisco – Proximity to a vast majority of the Information Technology Sector companies
      such as Oracle, Adobe Systems, Cisco Systems, eBay, Fujitsu, Hewlett-Packard, Hitachi, NEC,
      Siebel, SUN, WebEX as well as high visibility companies like Bechtel & Visa International, a vast
      majority of the US wine producers and a significant amount of Asia Pacific US Corporate
      Headquarters, especially Japanese companies.
   Note – This list is an overview of key vertical core areas around the US only and not intended to
   direct XYZ to fill their BDM positions in these cities, but should be considered when making decisions
   based upon the cost of hiring/locating a new BDM versus the cost of a BMD traveling on a regular
   basis from another location such as Seattle or Los Angeles.
The following are suggested geographic/vertical territories:

2. Quota Assignments (2007-2008) – This area will be addressed in 2Q 2008 after the sales
   organization has been put into place and the marketplace can be reassessed. The current
   quota appears to be realistic for the short-term based upon limited market data concerning
   both products, especially Product II.

3. Initial Training – In order to get as much traction as possible by YE 2007 XYZ Company must
   develop a quick 2-3 day training session to get each new hire on board as quickly as possible
   with the basic knowledge, tools and materials to begin finding new opportunities and driving
   through the sales cycle process. The basic essentials for this training should include:
   a. Product Training – An in-depth look at both Product I® and Product II® products including
      features, pricing and benefits.
   b. Business Development/Sales Training – Along with Product Training, each BDM must learn
      how to find clients, develop opportunities, create proposals, present and close opportunities.
      This training requires value-add messaging from XYZ Company to allow each BDM to propose
      services and demonstrate the value/benefits it presents to each client.
   c. Support Materials – As part of sales training, XYZ Company must provide each BDM with
      access to materials that will assist them in presenting products to clients as well as creating and
      delivering proposals.
   d. System & Process Training – The last element of basic training is providing each BDM with
      the basic tools to perform their jobs from time reporting to CRM and pipeline management. As a
      part of this, BDM’s must learn how to submit requirements to the SBM to develop price
      proposals as well as the formalized escalation process within XYZ Company.

Sales Development – Phase III
1. Long-term Training – Over the next 3-6 months XYZ Company needs to define a more
   intense training program to ensure their sales team has the best chances for success as well
   increasing their personal skills for higher retention rates. A professional sales organization is
   critical to XYZ Company’s long-term survival and perception by the client. Training program(s)
   a. Sales Skills – TBD
   b. Business Development Skills – TBD
       c. Computer Skills (e.g. Office, Database, Internet) – TBD
       d. Presentation Skills – TBD
       e. Writing Skills – TBD
   2. Sales Support Process – This is another critical area to consider within the next 3-6 months
      which is how to best support the BDM in the field and virtual office environment. This includes
      the ability to create, receive and store marketing/pricing materials on a shared drive and a
      person to assist in uncovering leads, make phone calls, do research, record metrics and pull
      reports to track success.
   3. Sales Tracking Process – This area will be discussed in more detail once the current
      CRM/SUGAR system has been reviewed.
B. Sales Organization Management – XYZ Company should create, document and incorporate
   specific metrics into evaluation process of each BDM to measure success and improvement or to
   identify issues and obstacles requiring corrective measures. Recommendations are detailed within
   the associated Performance Plan attached at the bottom of this document.

   Sales Management – Phase I
   1. Performance Metrics, Objectives & Processes – The most important aspect of managing
      and motivating the sales organization for success is develop a standardized set of metrics and
      process to monitor and compare in a consistent and fair manner across the board. A key factor
      in the hiring, orientation and training process is to have the management and evaluation
      processes ready on “day one,” so [potential] employees have an understanding of the means in
      which they will be managed and evaluated on a quarterly/annual basis, especially when bonus

DRAFT and compensation is tied to these metrics and processes.
       a. Metrics – A set of standards that tracks the weekly/monthly activities performed by each
          individual to track progress, anticipate obstacles, identify deficiencies and provide a means to
          benchmark successful performance in order to compare the overall performance of each
          individual and the organization overall. Metrics should be developed in four different categories
          and must have the ability to a) track real-time and b) compare to other employee’s performance
          to benchmark. The following four are generally accepted categories for evaluation purposes and
          appropriate “weights” for each based upon the needs of the business:
           - Client (30%) – Activities that measure the BDMs interaction and performance with clients
             including setting of meetings, follow-up, relationship and customer service.
           - Corporate (50%) – Activities that directly affect VTs P&L including the ability to drive sales
             opportunity development, close sales, revenue attainment (quota), managing expenses and
             adherence to corporate policies regarding integrity and values.
           - Administrative (10%) – Adherence to VTs policies regarding reporting, CRM, time sheets
             and travel expense vouchers.
           - Individual (10%) – Efforts made by the BDM to improve their job performance, career
             objectives, skills, knowledge and education. These can be a combination of set goals (by the
             VP) as well as seeking out individual opportunities to grow their skills and knowledge (e.g.
             course work, MBA program).
       b. Objectives - A set of goals presented to each individual at the beginning of each sales year to
          allow the individual and the manager to monitor performance, make corrections when identified
          and evaluate individual performance at the end of each quarter and in a formalized process at
          the end of the sales year. This process must allow the manager to evaluate and “rate” each
          individuals performance within the group and established benchmarks and then “rank” that
          individuals performance against his/her peers to assign a final evaluation which can be used to
          administer salary increases, bonuses, other annual incentive plans as well as establishing new
          goals/quotas for the next sales year.
        c.   Processes – The means to review the actual performance of each individual on a
             weekly/monthly/quarterly basis with each individual to identify deficiencies, make
             recommendations for improvement and reward successful behavior.

    Sales Management – Phase II
        a. Performance Metrics – VT should create, document and incorporate specific metrics into
           evaluation process of each BDM to measure success and improvement or to identify issues and
           obstacles requiring corrective measures. These metrics are in addition to quotas assigned and
           are designed to:
           - Help generate leads/opportunities to fill the BDMs sales funnel.
           - Measure their performance on a quarterly basis and in comparison to their peers.
           - Foster continuous development and growth business opportunity skills.
           - Provide the ability to reward success in other ways outside of revenue generation.
           - Indicate “red flags” in performance in a timely fashion to allow for corrective actions.
           - Provide continuous benchmarking for satisfactory and excellent performance and expectations.
             - Provide benchmarks for future performance metrics and forecasting.

             Metrics should be developed to drive opportunity and lead generation as well as then track the
             BDMs performance in attaining these goals. They should focus on monthly/quarterly goals in:
             - Leads researched and identified
             - Contacts made
             - Presentations given

             - Proposals delivered
             - Sales made (Units)
             - Weekly updates in SUGAR.

             All metrics would be tracked and measured via entries into SUGAR making compliance to weekly
             update policies critical and more easily enforced. The following are recommended metrics:

                                                                             Senior Business Development
Business Development Associate           Business Development Manager                  Manager
Client (30%):
-   Leads Generated (60)                 -   Leads Generated (75)            -   Leads Generated (90)
-   Contacts (30)                        -   Contacts (37.5)                 -   Contacts (45)
-   Meetings (15)                        -   Meetings (18.75)                -   Meetings (22.5)
-   Proposals (7.5)                      -   Proposals (9.25)                -   Proposals (11.25)
Corporate (50%):
- Unit Sales (3 TC/3 TV = 6)             - Unit Sales (4 TC/4 TV = 8)        - Unit Sales (5 TC/5 TV = 10)
- Sales (Revenue-Quota) ($XXk)           - Sales (Revenue-Quota) ($XXk)      - Sales (Revenue-Quota) ($XXk)
- Expense management ($XXk)              - Expense management ($XXk)         - Expense management ($XXk)
Administrative (10%):
- SUGAR Entries (60)                     - SUGAR Entries (75)                - SUGAR Entries (90)
- Timesheets (6)                         - Timesheets (6)                    - Timesheets (6)
- Expense Reports (6)                    - Expense Reports (6)               - Expense Reports (6)
Individual (10%):
-   Training (.25)                       -   Training (.25)                  - Training (.25)
-   Courses (.25)                        -   Courses (.25)                   - Courses (.25)
-   Skills Enhancement (1)               -   Skills Enhancement (1.5)        - Skills Enhancement (2)
-   Team work (2)                        -   Team work (3)                   - Team work (5)
   b. Processes – XYZ Company should develop the following Coaching, Feedback & Evaluations
        Quarterly Reviews with each BDM should be done to review performance, discuss strategies for
        the next quarter, identify obstacles and provide appropriate feedback and coaching. In addition
        the Head of Sales should perform formal quarterly evaluations that compare their results with
        the established benchmarks to determine if their performance a) meets the objectives of the
        company, and b) matches the performance of his/her peers. These formal quarterly evaluations
        do not go into the BDMs official “record” but provide the Head of Sales the ability to take
        corrective measures to improve performance and employee satisfaction. At the end of the year,
        the employee will receive and official evaluation that compares them to company objectives and
        ranks each performance in comparison to his/her peers which should be used to reward high
        performers in the form of bonuses, salary treatments, promotions and career-pathing.
        As a part of this process, VT should use a set of uniform standards that are associated with the
        established Performance Objectives for comparison that will indicate the level of satisfaction
        within each criteria to company standards and is consistent with the same standards used to
        compare each BDM to his/her peers. Generally, VT should consider between 4-7 standards
        based on levels of satisfaction (expressed in terms of percentages). The following are
        recommended and are commonly used by many different companies:
        - Far Exceeds – This is given when the BDM meets or exceeds every objective given over the
          course of 12 months. In some cases high performers who have difficult territories or
          encounter difficult obstacles preventing 100% attainment can still be given this evaluation
          based upon intangibles and exceptional behavior in other areas, e.g. supporting the team.

        - Fully Met – An employee in this category meets most if not all objectives and/or averages
          between 95% - 99%.
        - Satisfactory – An employee in this category meets a majority all objectives and/or averages
          between 90% - 94%.
        - Less Than Satisfactory – An employee in this category has met less than half of all
          objectives and/or averages between 75% - 89%.
        - Has Not Met – An employee in this category has not met most or all objectives, and/or
          averages below 74%.
        - Not Rated – This category can be added as well for employees who have not been employed
          long enough to evaluate at the end of the year, usually less than 6 months.

 Meets Objectives:         Percentage
 Far Exceeds               Mets 100% or more of all Performance Objectives and Revenue Targets
 Fully Met                 Mets 95% - 99% of all Performance Objectives and Revenue Targets
 Satisfactory              Mets 90% - 94% of all Performance Objectives and Revenue Targets
 Less than Satisfactory    Mets 75% - 89% of all Performance Objectives and Revenue Targets
 Has Not Met               Mets 74% or less of all Performance Objectives and Revenue Targets

        It is important to note that “weighting” should be assigned categories to ensure that people are
        evaluated on the correct behaviors and success, e.g. meeting administrative goals does not
        carry the same weight as meeting sales quotas. If an employee is above 95% in the key areas
        (expense and revenue), then other areas can be used to move the employee up or down at the
        discretion of the Head of Sales.
2. Sales Tools – The focus of the area is the use, development or expansion of tools that can be
   used to track, monitor and manage the metrics and objectives listed above in a consistent
       format which will allow the creation of “snapshot” reports for each manager and leadership to
       track performance as well as revenue attainment/growth. The primary tool in this case is a
       robust CRM system which can be used to manage the pipeline, performance and the sales cycle
       as well as project revenue obtainment, while providing the means of developing a client
   Note - See attached CRM analysis and recommendations.
C. Opportunity Development – In order to gain as much traction as quickly as possible, XYZ
   Company should target 4-5 verticals immediately within the NYC, LA, Dallas and DC areas that
   are high visibility or have brand issues. Within the verticals, 3-4 clients for each should be
   selected based upon current affairs, existing relationships or existing clients within the same
   vertical. Each BDM must establish a “road map” to build a sales funnel from client
   identification to contact to meeting to follow up to close and track each component in Sugar
   with constant updates to ensure accuracy, as well as build a complete profile of the client.

   Sales Management – Phase II
   1. Sales Process – After the major verticals and clients have been identified, KDMs need to be
      identified for contact. Based on that client’s business model, a SWOT analysis should be
      created and marketing materials customized for the vertical and client with a clear message
      depicting the value-add of XYZ Company and Product I/Product II. In order to streamline the
      sales process and ensuing sales cycle, XYZ Company should create a centralized process for
      crafting pricing, proposals, terms & conditions that will manage the internal and external
      sales processes as well as Product Marketing requirements back to Headquarters (Seattle).

DRAFT This process involves the redesign of roles within the process as well as the process itself.
   2. Roles & Responsibilities – The key to managing this process is to centralize and control the
      sales and pricing process between the client, internal sales managers, external sales channel,
      the Product House and the CFO organization. To accomplish this, XYZ Company should create
      and/or fill a Senior Business Manager (SBM) position within the Sales Organization to serve four
      key functions within the overall sales process, Channel Single-Point-of-Contact (SPOC),
      Strategic Pricing & Product Marketing Management and Escalations. This position would report
      directly to the VP, Sales as well as “dotted line” reporting into the CFO organization to ensure
      pricing and contract terms are in-line with corporate goals.
   a. Channel SPOC – In this role, the SBM is in direct control of all proposals and pricing delivered
      to clients via Channel partners to ensure that contract terms and post-sales support as well as
      pricing conforms to the XYZ Company business plan and model. This process is designed
      specifically to ensure consistency with regards to pricing as well as the terms of the
      design/proposal given to each client.
   b. Strategic Pricing Management – Similar to role above, the SBM is also responsible for taking
      all data gathered from the sales team and crafting competitive deals in an expedient manner to
      ensure maximum use of XYZ Company resources as well as managing the sales cycle. In this
      role, the SBM in partnership with the SVP has the ability to make strategic pricing decisions and
      has the “Authority to Quote” as the representative to the CFO organization within XYZ Company.
   c. Product Marketing Management – The within the strategic pricing and sales cycle
      management processes, the SBM is also in a unique position to understand what clients will/will
      not buy and the value they place on each product/feature in terms of making short-term
      purchase and long-term relationship decisions with XYZ Company. This intelligence can then be
      vocalized back to the Product House and CFO organization to drive the development of the
      product, features and strategic pricing.
   d. Escalation Management – The final role the SBM would serve is to serve as an escalation
      point back to XYZ Company Senior leadership in areas where issues or price decisions are not
      enough to obtain business from key clients. This role can also utilize the Business Development
      Associate to perform post-sales follow-up to ensure a) services are installed on time, b) the
      clients objectives are being met, and c) overall client satisfaction to build long-term

1. Custom Deal Process – Once the SBM has been put into place, the following process should
   be put into place:
   a. The Channel or Business Development Manager meets with a client and receives a “Request
      for Proposal” (RFP) to include an overview of the service(s), timeframes for installation,
      terms and conditions and strategic pricing to include:
       − Base price
       − Terms
       − Discounts
       b. Channel/BDM fills out a basic online form to include size and scope of client needs to the
          Senior Business Manager to include:
           −   Business Impact to XYZ Company Technologies
           −   Total Revenue Opportunity
           −   Probability of Sale (5)
           −   Client timeline for making purchase
       c. The SBM creates a competitive price based upon impact to XYZ Company (winning vs.
          losing business) within 3-5 business days and returns to Channel/BDM.
       d. Channel/BDM presents to client with SBM supporting via telephone if appropriate to assess
          situation and assist with the VP of Sales, in closing sale. Based upon client feedback, the
          SBM and SVP can make further concessions if deemed appropriate within their P&L
          parameters designated by XYZ Company. If further concessions are required, SBM and SVP
          can appeal to CFO for assistance if deemed appropriate.
       e. SBM uses feedback from client to assess/re-assess pricing (to CFO) and products/features
          (to Product House) if required.
   Note – This process also serves the purpose of ensuring that Channel Sales involves XYZ Company with
   all client meetings and price proposals and that the appropriate XYZ Company BDM is in-the-loop on the
   opportunity for long-term relationship building and service continuity for the purposes of service

   3. Business Tools – What databases is XYZ Company currently using e.g. Hoovers, D&B?
       a. CRM – To be filled in after a review of the current system.

IV.    Timeline
The following are recommendations on which actions should take place over the next 1-6 months
to develop a successful sales organization and begin creating short- and long-term sales
opportunities in line with XYZ Company’s 2008 Business Plan. Based upon the following
progression chart, in order for XYZ Company to show appreciable billed revenue opportunities by
early to mid-January, the hiring process needs to begin ASAP.
Start Date: 9/21/2007

Task                           Days   End Date

Job Ads                        5      9/26/2007

Resume Review                  5      10/1/2007

Interviews                     21     10/22/2007

Hiring                         14     11/5/2007

Training                       7      11/12/2007

Opportunity Development        30     12/12/2007

Close Sales                    21     1/2/2008               Includes lost 7 days due to holidays

Service Implementation         14     1/16/2008

Bill Rendered                  30     2/15/2008

Payment Received               30     3/16/2008

Mid-September – October, 2007
   1. Sales Organization Development – The first and most essential task is to begin interviewing
      candidates for New York and Washington DC with the goal of finding an SBDM for each city to
      start, followed by a second BDM in each city. By finding a senior experienced manager, XYZ
      Company can start the opportunity development process almost immediately by hopefully tying
      into the new employee’s already expansive knowledge of the marketplace and key client
              Ideally the SBDM will also have gained enough momentum within the first 30 days to help
              coach and mentor the BDM hired soon thereafter.
       2. Job Titles/Description Finalization – These need to be completed and ready for posting on
          the Internet by 9/21/07 if not sooner to follow the timeline created above.
   3. Salary & Compensation Plan – These plans need to be finalized and approved before
      October 1st in order to discuss with top candidates during the hiring process.
   4. Candidate Interviews & Hiring – Once these are posted (9/21/07) expect the process to
      take (at a minimum) 21 days to find top candidates. The best expectation is an offer can be
      made by October 1st and first day of employment on 10/8/07 however top candidates will most
      likely require at least a 2 week notice at their current jobs making a more likely start date of
   5. Initial Training – A basic training course should be assembled immediately to allow for quick
      implementation once new candidates are onboard. Ideally, the training should be done with
      multiple BDM’s (at least the first two SBDM’s) to help create a team environment and allow for
      a support system as the two begin the process of developing new opportunities.
       Note – It is highly recommended that XYZ Company consider both SBM position ASAP and
       either hire the position externally or fill it internally (at least on an interim basis). The sooner
       this position is created, the faster both the internal and external sales resources will understand
       and follow the designated strategic pricing process to ensure consistency with clients and make
       necessary adjustments to pricing if needed based upon real-time market data. Although not
       recommended, this roll can be handled short-term by the SVP until such time as a full-time
       resource can be brought on board.

November 1 – December 31, 2008
  1. Custom Pricing/Proposal Process – This process itself needs to be agreed upon by XYZ
     Company ASAP and created early enough for new hires to learn and follow the process starting

DRAFTJanuary 1st. Because there are already Agency representatives (Channel) proposing Product I
     and Product II services to their clients, the sooner it is implemented and delivered to the
     Channel, the sooner the process will be followed and XYZ Company can begin controlling the
     pricing information delivered to clients and expedite the Sales Cycle.
   2. Sales Territories – This is not a critical requirement but should be resolved ASAP as new
      BDM’s come onboard to establish boundaries for each territory to ensure maximum efficiency.
   3. Quota Assignments (2007-2008) – Same as the above since a quota system really not
      apply until January 1, 2008. Any sales made before then should not be expected as it will take
      at least 30 days for new BDM’s to ramp-up putting them into December and the holiday season
      which is traditionally slow. It is however important valuable time for building lead lists and a
      sales pipeline to hit the road running in January.
   4. Job Performance and Management Plan – Same scenario as Quotas. Needs to be
      determined by December and “socialized” with each BDM so they understand how they will be
      evaluated starting January 1st.
   5. Sales Support Process – Although a lower priority, establishing this role and hiring before
      YE2007 will greatly enhance success factors for the BDM’s as of January 1st.

1st Quarter, 2008
   1. Long-term Training – Key to long-term retention of top employees and customer satisfaction,
      a more formalized training program should be developed for 2008 to include instructor-led,
      online and self-paced courses to grow skills and knowledge.
       Note – This is an area that companies typical put a low priority on because of the cost and time it
       takes BDM’s out of the field however it is highly recommended that XYZ Company focus on this
       when considering the larger impact of losing employees after one-year due to career dissatisfaction.

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