Sales Team Transformation at Arck Systems: Hardware vs. Software Challenges

1. Abby Roderique Jessica Jennings Madeline Brockley Weston Willis

2. Background • Arck Systems manufactured & sold enterprise hardware servers • Rob Chatterji, CEO of Arck, decided to acquire Lux Software • Arck’s EVP of Sales, Bryan Mynor would now manage both Lux’s and Arck’s current sales teams as separate entities

3. Problems • Hardware vs. Software approaches to selling • Targeting different decision makers • Differences in sales compensation plans at Arck and Lux • Mynor altered the compensation policies • Existing salespeople quit

4. Mission Statement Arcx’s mission is to deliver innovative and technologically sound hardware/software products in order to satisfy the needs of our customers. We strive to provide the highest quality service and support to remain a top solutions provider within the technology industry.

5. SWOT Analysis

6. Organizational Structure

7. Regional Break-down

8. Job Analysis • Important to Analyze differences between the hardware and software account management roles • What tasks, responsibilities, and environmental influences are involved with each job: • Hardware Analysis • Software Analysis

9. Sales Team Recruitment & Selection Sources: Internal (Employee Referrals) External • Job Boards (Monster.com, Indeed.com, Glassdoor.com) • LinkedIn • Industry Events/Trade Shows

10. Job Description & Requirements Hardware Account Manager To be successful in this role, you will need to be meticulous in everything that you do. You should also have extensive computer hardware knowledge and be able to explain intricate concepts to non-technical personnel. Software Account Manager You are required to have a strong consultative sales approach, passion for the IT/tech industry, as you will serve as a trusted adviser for all of your clients.

11. Job Description & Requirements Continued Hardware Account Manager • Proven record of success in a similar role • Effective organizational and analytical skills • Knowledge to engage with senior level executives (prospects), with a high degree of  professionalism, accuracy and follow-up • Flexibility to travel and present to prospective clients in person (up to 30%) Software Account Manager • Proven record of success in a similar role • Exceptional closing skills and the ability to capture a high volume of opportunities • Knowledge to engage with senior level executives (prospects), with a high degree of professionalism, accuracy and follow-up • Flexibility to travel and present to prospective clients in person (up to 30%)

12. Interview Process Overview 1. Application Screen 2. Phone Screen 3. HR Generalist Interview 4. HR Manager Interview 5. Personality Assessments 6. District Sales Manager/Team Member Interview

13. Interview Process Part 1 Application Screen • Embedded into application, must be completed before database will accept Phone Screen • Conducted by a general recruiter • Basic questions that will gauge the applicant’s skills with the job analysis Interview with Head Recruiter • Conducted by recruiting manager • In person or over the phone • Contains questions that will gain insight on selling ability and essential  competencies.

14. Interview Process Part 2 Personality Assessments • Two Different Assessments • Test motivators, behaviors, mathematical and selling competencies Final Round Interview • Conducted by Sales Manager and a sales team member • Personal interest and teaming ability questions Offer • Offered will be made by HR Manager to selected applicant • Once an applicant accepts, they will be debriefed on assessments

15. Sample Interview Questions 1. What is your favorite piece of software? Sell it to me. 2. Tell me about a time when you failed to expectations. 3. What does success mean to you? 4. If you could go back in time and choose another job, what would you choose if you had to?

16. Training • Retained Employees • Analyze the training needs of the retained sales force • One week company orientation • Any changes in policies • Reporting structure changes • New culture

17. Training • Week 1: company and industry orientation • Week 2: team development training • All New hires complete weeks 1 and 2 together • Weeks 3-6: Product and sales training within either hardware or software division • Weeks 7-8: OTJ Training with retained employee • Can also serve as new hire's mentor going forward

18. On-going Training • Yearly conferences & Trade-shows • New-product training as needed • Updated product training • Webinars, classroom training, workbooks/quizzes

19. Training Evaluation • Pre and Post test • To assess the salesperson’s understanding of the products and concepts as well as their ability to use the learned skills • Evaluation Questionnaire • To assess favorability of the program • To discover how to improve training in the future

20. Compensation Plan • Combination plan: base salary + commissions • Software base salary: $55,000 • Hardware base salary: $66,000 • No commissions cap • No accelerators • Commission based on size of discount offered with sale

21. Commissions Table

22. Pay Comparisons

23. Employee Benefits • Direct Reimbursement plans (for reasonable spending) • Advanced healthcare options • Life insurance options • 401K

24. Motivating the Sales Force • Bi-annual Sales Competitions • Continue Gold Star incentives and Hawking Club • Salespeople have options for their rewards: • Original tropical vacation offered to members of the Hawking Club or Top Guns • 4 additional paid vacation days • Monetary bonus of equal value to 4 paid vacation days

25. Evaluation • 360-Degree Feedback in Performance Evaluation • Focus on the development and improvement of the sales team • Self-Evaluation • Other Sources • External Customers • Internal Customers • Fellow Sales Team Members • Bryan Mynor

26. Sources • http://www.docstoc.com/docs/38680936/360-Degree-Feedback-Form---PDF • http://www.loc.gov/teachers/tps/images/usa.jpg • http://www.staffing-and-recruiting-essentials.com/Sample-Job-Analysis.html#axzz2RwQcO54h

27. QUESTIONS?