Sunday, April 1, 2012

6 Tips To Align Sales Structure And Corporate Strategy

Is your corporate strategy focused on growing revenue or reducing cost?  91% of sales organizations have structure problems that impede these desired results.  Why should you care?  Proper structuring of the sales force has been proven to produce a double digit revenue uplift.  Conversely, if efficiency is your goal, structure clarity will illuminate waste and lead to significant cost savings.

Sales organizations should have multiple structures depending on the number of market segments they are pursuing.  The graphic below shows the six most common sales structure options that organizations should consider in their Go To Market Strategy.

Corporate Strategy Structure Options
You can determine which structure option(s) make the most sense for each of your market segments by reviewing the bullets below.

Stratification: match best resources on best customers

−     80% of revenue driven by 20% of accounts

−     Substantial upside in the large accounts

−     Larger accounts have a favorable cost to revenue ratio

−     Larger accounts value dedicated resources

Activity: specific role focus to match sales strategy

–     Complex, lengthy activities in the sales cycle

–     Significant margin to accommodate committed sales roles and mgmt

–     Clearly defined hiring criteria for sales roles

 Geography: aligning the sales force to geo markets

−     Accounts have centralized decision making

−     Geographies exhibit broad need for product portfolio

−     Clients value face to face interaction

−     Generalist approach is viable

Buying Roles: resources are aligned to key customer stakeholders

−     Clear alignment of products to buying roles

−     Value propositions, collateral and programs aligned to each role

−     Buying roles are distinct and have specialized needs

−     Prospect database is well populated with contacts per role

Product: sales professionals represent specific products to meet customer needs

−     Large product markets to support dedicated sales people

−     Complexity and number of products too much for sales person to master

−     Product value and use similar across industries or end user types

−     Customers favor sales' product knowledge over other expertise

Industry/Market: sales resources are focused on key industry verticals that require deep domain knowledge

−     Clients desire industry domain expertise

−     Clear industry specific needs for certain products

−     Untapped industry potential

−     Revenue growth justifies additional selling expense

Call to Action:

Once you determine the structure options that are the best fit, it is imperative to understand how each structure will impact your corporate strategy.  What is the expected impact?  If the impact outweighs the disruption to the organization, develop a change management strategy and begin assessing the roles needed to bring your corporate strategy to life. 

Thanks to Scott Gruher / Sales Benchmark Index[6%20Tips%20to%20Align%20Sale]


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