“Build up your weaknesses until they become your strong points. ” - Knute Rockne

1. “Build up your weaknesses until they become your strong points.” -Knute Rockne

3. ‘Housekeeping’ To keep us on track, and because I only have about 75 minutes to speak, please hold your questions until the Q&A at the end. I will set aside 15-20 minutes for the Q&A part of my presentation. You may write your questions down with one of the pens we provided. Please set phones to ‘silent’ mode. A copy of this presentation may be downloaded from my website at www.gershenconsulting.com/bscai/sfm.pptx, or from the BSCAI website. This presentation is being recorded – contact Laura Sweitzer at BSCAI for a copy. Speaker rating – Make sure you rate me a 5!

4. ‘Housekeeping 2’ If you haven’t already, pick up a Gershen Consulting business card at the entrance. To be in the running for a free business analysis, leave your business card next to the sign up sheet at the front. The winner will be randomly selected. Easel – What would make this a successful presentation for you?

5. Sales Management: Introduction • Sales management is a discipline that can be as tough as, if not tougher than a “contact” sport like football. • “66% of corporate strategies are never executed” - Ernst & Young survey. • The economy is bad, and it could even be getting worse. In my 50 years of experience, I’ve never seen so many businesses struggle this much. It’s never been more important to keep your company healthy and growing. • Over the years, I have developed some proven strategies to guide your business through these tough times, and today I want to spend about an hour addressing some specific techniques to manage your sales programs while ‘weathering the storm’. • Before we jump in – Why should you listen to anything I have to say?

6. Barnett Gershen Grew ABS starting with two employees to become the 9th largest privately held maintenance contractor services company in the US with 13,000 employees and sales of $230 million. Hands-on experience from leading Associated Building Services (ABS) from its inception to its successful sale in 2004. In 2005, founded Gershen Consulting, where my proven abilities as an executive have been used in reproducing companies, driving up the top line as well as increasing the bottom line. Specializes in helping executives shorten their journey to the next level of success.

7. ABS Growth History Millions Sale

8. ABS Growth History Timeline • 1955 – XGI • 1957 – Implemented customer and employee appreciation • 1974 – Barnett Gershen became President • 1975 – XGI changes name to Associated Building Services (ABS) • 1976 – Implemented strategic planning • 1980 – Established BOD • 1984 – Professionalized hiring process • 1985 – Implemented Birkman testing • 1986 – Implemented customer satisfaction procedures (quarterly)

9. ABS Growth History Timeline (Cont’d) • 1988 – Targeted special markets for growth • 1990 – Implemented relational counseling for team building • 1991 – Established risk management program • 1995 – Established CT management and stock option program • 1998 – Closed first of several major acquisitions • 2000 – Implemented incentive bonus plan • 2001 – Closed last acquisition • 2002 – Invested in organic growth – sales team and sales support • 2004 – Sold to GCA • 2012 – GCA sold to Blackstone group

10. Sales Force Management • Let’s dig in…

11. Game Plan: Long-Term Growth Plan • The growth program is multifaceted and includes: • A customer retention program • A same-store sales program to sell to your existing customer base • An acquisition program

12. Game Plan: Long-Term Sustainable Growth Plan • Outside sales – (sometimes called organic growth) • The “organic growth program” consists of sales from: • You • The outside sales force team • Leading and calling the play for the outside team

13. Leading & Managing the Sales Force • The GM/you (the quarterback): • Up to YOU • YOU must manage this process by doing some personal sales, some management, and some coaching. • YOU must closely monitor the progress of the sales associates until they have developed a rhythm and procedure that will enable them to achieve both corporate and individual goals.

14. Leading & Managing the Sales Force • Sales management is a process that requires constant monitoring and relative metrics. “Keeping the score.” • Quotas for each sales person must be developed and used for the month and for the year. Setting proper quotas must use “S.M.A.R.T.S.” • Specific • MEASURABLE • attainable • relevant • timebound • Stretching

15. Procedure for Change? • Any time you start implementing changes, it’s generally a good idea to follow this procedure…

16. any The Process for New Procedures ^ Make Corrections Measure Manage Make Assessments When to stop? Start again! “Never never never never give up.” - Winston Churchill “We are what we repeatedly do; excellence is not an act but a habit.” - Aristotle

17. The Sales Management Process The Numbers Game (General) • The number of calls you make will determine the number of leads you develop. This, in turn, will tell you the number of bids you will produce. • Your individual closure rate will display the average number of new sales you will generate over a given period of time. • The more calls you make, the better material you present, the better presentation you make to the proper decision-makers, the better your closure techniques are, etc. all will lead to increased sales.

18. The Sales Process The Numbers Game (Specifics) # of leads you uncover # of calls you make # of bids you deliver # of bids you close (sales) • Tele-Marketing (with • the aid of a script) • CRM System (allows • the inputting and • storage of • information about • targets) • Leads • Daily Reports • Regular Sales • Meetings • Sales • Types of closes • (value, logic, etc.) • The perfect • customer • Social Media • Trade Associations • Testimonials • Follow-up • Bids • Presentations • Rehearsals • Marketing materials • Perfect price – value • differentiator

19. The Sales Process The Numbers Game (Conclusions) • Allows you to measure the effectiveness of and create job descriptions for - • Salespeople/Sales Managers • Telemarketers • Entire sales department • Allows prediction and cost benefit analysis of investments • Example - If… • Every 100 calls yields 10 leads • Every 10 leads yields 4 bids • Every 4 bids gives 2 sales • You can predict that an investment doubling your initial calls will result in 4 sales, etc… • This is a 50,000 foot view – the details could fill a seminar.

20. The Sales Process Sales Tactics Weekly Tasks Daily Tasks • Require a weekly calendar from each sales associate (by the close of business on Friday) to reflect a sales plan of visits for the upcoming week. • Review and test: • The weekly calendar for customers and proper • potential customers etc. • Measuring results, not activities. • Riding with the sales person regularly. • Verifying, via phone calls or personal visits, • prospects on the contact list. • Manage a weekly sales meeting where you measure sales achieved versus budgets for each individual team member and the organization. • Review and test the pipeline for what is coming up. • Hold a short “touch–base” meeting during the “dead sales times” such as Monday mornings and Friday afternoons. • Require and analyze a daily call report from each salesperson to see their tally of customers contacted and how (by phone call, e-mail etc.) • Sales metrics that should be reviewed: • The number of calls made per day, • The number of calls it takes to generate a lead, • The number of leads it takes to generate a bid.

21. The Sales Process Sales Tactics Monthly Tasks Bi-Weekly Tasks Quarterly Tasks End-of-Year Tasks • Meet with entire sales force to analyze progress and the actual to budget gaps. • Ensure individual job descriptions for sales team are tied to the company financial goals. • Perform regular Performance Improvement Programs (PIPs) when necessary. • The closure rate for the individual salesperson. • Review for adherence to weekly calendar. • Hold a one-off sales meeting every two weeks or so with each individual salesperson just to get a good feeling for their attitude, enthusiasm etc. • Keep in the loop (inform operations, HR, accounting, purchasing, warehouse). • Hold a performance review type of meeting to ensure that everyone is on track, much like reviewing game films for performance improvement. • Remember to review results – amount of sales to budget. • PIPs • Hold the review for the team as a whole and as individual players. • Consider repositioning the players and/or recruiting new players and be wary of the available draft choices, both internally and externally. • Bid autopsy – both successful and unsuccessful. • Review marketing material.

22. “You will either step forward into growth or you will step back….” - Abraham Maslow

23. Adizes Life Cycle Introduction – Some Fundamental Truths • Organizations, like people, have certain lifecycles. • All businesses have issues that are common to each other. • Knowing where your organization is at on the corporate lifecycle can be critical to its success. • With the aid of the Adizes concept, you can determine where your business is in it’s life cycle.

24. Adizes Life Cycle Stages

25. Adizes Life Cycle Why – Fundamental Truths Continued • As your business grows, your greatest strengths can become your greatest weaknesses. • If you know what’s ahead of you, you can reach your goal of achieving the next level faster. • Your role as a leader is to accelerate your company’s ability to resolve problems.

26. ABS - Living the Adizes Philosophy Millions Sale

27. ABS Growth History Timeline • 1955 – XGI • 1957 – Implemented customer and employee appreciation • 1974 – Barnett Gershen became President • 1975 – XGI changes name to Associated Building Services (ABS) • 1976 – Implemented strategic planning • 1980 – Established BOD • 1984 – Professionalized hiring process • 1985 – Implemented Birkman testing • 1986 – Implemented customer satisfaction procedures (quarterly)

28. ABS Growth History Timeline (Cont’d) • 1988 – Targeted special markets for growth • 1990 – Implemented relational counseling for team building • 1991 – Established risk management program • 1995 – Established CT management and stock option program • 1998 – Closed first of several major acquisitions • 2000 – Implemented incentive bonus plan • 2001 – Closed last acquisition • 2002 – Invested in organic growth – sales team and sales support • 2004 – Sold to GCA • 2012 – GCA sold to Blackstone group

29. Adizes Life Cycle How? • Most important – Learn to accept change and implement an increased pace. • Invent and implement new: • Procedures • Policies • People • Tactics

30. The Fundamental Adizes Truths For review - • Organizations, like people, have certain lifecycles. • All business have issues that are common to each other. • If you know what’s ahead of you, you can reach your goal of achieving the next level faster. • Knowing that this ‘next level’ journey requires change and an increased pace. • Your role as a leader is to accelerate your company’s ability to resolve problems.

31. Leading & Managing the Sales Force Conclusion • Follow up! (You can make up for a lot of mistakes with long-term consistent follow-up). Follow up – follow up – follow up! If you do nothing else but follow up, you can still be successful! • Plan your work, and work your plan! Execute! Remember, a decent plan today will almost always beat a perfect plan tomorrow. • Take the best part of the process outlined in this presentation and make it your own. Remember the fundamentals – devise a game plan and then execute it! It is up to you to make it happen as the player/coach. • “If it is to be, it is up to me.” - Martin Luther King

32. “Pogo” - Walt Kelly

33. “In life, as in football, you won't go far unless you know where the goalposts are.” - Arnold H. Glasgow Wrap-up and Reminders • Q&A to follow shortly. • Easel – “What would make this a successful presentation?” • Don’t forget to leave your business card for my free business analysis giveaway. • Remember, rate me a 5 on the evaluation form!

34. Q&A Barnett Gershen is owner/CEO “quarterback” of Gershen Consulting, LLC. He is available for questions at (713) 839-1990. To see a copy of this presentation, go to: www.gershenconsulting.com/bscai/sfm.pptx