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External Consulting Project: Mondelez International Inc. Group Y. Mondelez International is a $32 billion global snacks business Food Manufacturing I ndustry. Company Background & Industry Information. Sales Contacts. Primary Contact: James Thomas, Sales Representative
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External Consulting Project: Mondelez International Inc. Group Y
Mondelez International is a $32 billion global snacks business Food Manufacturing Industry Company Background & Industry Information
Sales Contacts • Primary Contact: • James Thomas, Sales Representative • Graduated from LaSalle University, Marketing Degree • 3 years of experience with Mondelez/Kraft Foods • Sells from the biscuit portfolio • Territory: West Chester, PA • Secondary Contact: • Thomas Wirstad, Sales Representative
Areas of Concern Misallocation of sales force efforts Sales managers neglected to analyze call plan adherence of sales reps who reached their goals
Importance of Concerns Limits the potential of valuable insight Disrupts value proposition Conflicts with core values and company culture Puts customer loyalty at risk
Hypothesis Sales managers that neglect to analyze misallocation of sales force efforts will adversely impact customer relationships and undermine the value proposition of Mondelez International, thereby decreasing long-term sales.
Area of Study • Sales Area 2 • Call Plan Adherence • Performance Management • Sales Force Metrics and Reporting • SF Effectiveness drivers used to diagnose problem: • Sales managers • Compensation & incentives • Culture • Coaching
Research Topics 1. Methods of training the sales force on call plan adherence 2. Performance management systems to enforce call plan adherence 3. How to best design an incentive compensation plan that motivates reps to adhere to the call plan 4. Using internal data to show potential problems or issues
Training Employees on Call Plan Adherence • Communicate frequently • Continuous training & reporting on sales activities • Sales meeting dialog Figure 1: (The Connection; July 2012, pg. 2)
Performance Management Systems • Ranking System: • Ranking based on specific criteria • Expands analysis of individual call plan adherence • Sparks competition • Separates excellent, average, and poor performers
Performance Management Systems • Competency Model: • Defines what is needed to succeed • Based on organization's core competencies • Defines levels of achievement • Manager and sales rep evaluate performance
Performance Management Systems • Classification System: • Evaluate and classify for appropriate consequences • Part qualitative and part quantitative • Group reps based on performance • Separate performance management plans for different levels
Benchmarking Performance Management Nestlé's “Big Leap” strategy Heinz & Bacardi: Mobile Retail Audit Application Laura’s Lean Beef: Performance Management leads to Competitive Advantage
Motivating Sales Force: Incentives & Compensation • “When rewards don’t match the needs of individual workers, they’re a waste of money.”( Sales and Marketing Management; May 2007, pg.16) • Identify the motivation DNA of reps:Award Seeker, Nesters, Bottom Liners, Freedom Yearners, Praise Cravers, Upward Movers.
Motivating Sales Force: Incentives & Compensation • Reward employees for contributing to the overall success of the company: • Long-term relationship • Maximize value proposition • Share the risk-rewards of creating a successful business • “To make your new compensation program work, your employees need to assist in setting company goals, team goals, individual goals, and the resulting compensation.”(Executive Excellence; Jul 1999, pg.11)
Using Internal Data to Show Issues Continuously analyze actual sales performance against call plan Report sales activities and trends to Home Office Use data based insight to improve sales and marketing alignment
Heinz: Using Internal Data for Competitive Advantage Eric Ginsburg, Associate Manager for Sales Operations, Heinz: “Better insight is dependent on both the quality and quantity of data. The more data points available, the deeper the analysis possible, resulting in superior merchandising strategies.”
Sales Analysis: Conclusion on Hypothesis Sales Managers miss key insights by neglecting to analyze successful sales performance The solutions researched are proven methods to increase call plan adherence Misallocation of sales effort contradicts the core values of Mondelez International Inc.
Recommendations Train employees on value of call plan adherence Manage performance using a classification system Use other metrics, in addition to sales, for employee evaluations Evaluate sales despite positive output
Implications for New Policies Performance management model becomes more controlling More metrics affecting compensation and incentives Company values are enforced with each client
How will Policies Rectify the Situation? Decrease neglect of less lucrative stores Decrease complacency when goals are attained
Sales Contact Feedback Mr. James Thomas Mr. Thomas Wirstad
Team Learning Must have someone in charge of communication Must be willing to compromise Must start early and stay consistent Cross-Functional Structure
Research Errors Chose a well-established, global company Chose a company hesitant to give out information
Appendix Zoltners, Andris A., PrabhakantSinha, and Sally E. Lorimer. Building a Winning Sales Force: Powerful Strategies for Driving High Performance. New York: AMACOM, 2009. Print. Grove, Denis. "How a Strong Business Culture Helps to Deliver Excellent Customer Service." The Connection RSS. N.p., n.d. Web. June-July 2012. http://www.the-connection.com/how-a-strong-business-culture-helps-to-deliver-excellent-customer-service/ Warner, Melodie. "UPDATE: Kraft Foods 3rd-Quarter Net Rose 13% as Margins Improve." Https://wsj.com. N.p., 7 Nov. 2012. Web. 15 Nov. 2012. <http://online.wsj.com/article/BT-CO-20121107-712038.html>. Zenger J, Folkman J, Edinger S. Making Yourself Indispensable. Harvard Business Review [serial online]. October 2011;89(10):84-92. Available from: Business Source Premier, Ipswich, MA. Accessed November 28, 2012. Bloom N, Sadun R, Van Reenen J. Does Management Really Work?. Harvard Business Review [serial online]. November 2012;90(11):76-82. Available from: Business Source Premier, Ipswich, MA. Accessed November 28, 2012.
Appendix DilanthiAmaratunga, David Baldry, (2002),"Moving from performance measurement to performance management",Facilities, Vol. 20 Iss: 5 pp. 217 – 223 "Maximizing Sales Performance at Store Level." Foodprocessing.com. Flowfinity Wireless Inc, 2011. Web. 11 Nov. 2012. <http://www.foodprocessing.com/wp_downloads/pdf/FlowfinityWhitepaperSalesPerformance.pdf>. Treace, John. "Food Manufacturing." How Core Values Drive Sales Performance. Food Manufacturing``, 9 Feb. 2012. Web. 28 Nov. 2012. <http://www.foodmanufacturing.com/articles/2012/02/how-core-values-drive-sales-performance>. Mukherjee, J., & Basu, A. (2010). Distributor sales force performance management. Vision, 14(4), 309-321. Retrieved from http://search.proquest.com/docview/859009522?accountid=14270