Client provides all the natural gas for 550,000 customers in the city of Philadelphia and is considered the largest municipally-owned regulated gas utility in the United States. After experiencing significant management problems, the company went into receivership and replaced the management team. They were charged with improving the financial health of the company. Moving the company to an ESCO type services model.
Situation
A significant component of the turnaround involved preparing the utility to cope with natural gas de-regulation and the onset of full competition in its formerly monopoly market. Faced with the opportunities of Energy Service and potential competition, the implemented strategy moved the business in this direction. A new business strategy, organization, compensation plans and new personnel were required to meet the challenge.
Solution
Cura was commissioned by the new VP, Sales Marketing and Business Development to help develop and execute a completely new strategic sales and marketing approach for Residential, Commercial and Industrial markets-focusing on selling services vs. fuel and selling alternative fuels. New sales, marketing and product development strategies were designed and organizational structure developed to support each market. Existing staff was assessed, matched to new positions or terminated, and external professionals were hired. A new compensation plan, including a pay for performance sales and team incentive plan was designed and installed. A CRM was configured and installed.
Results
In less than 18 months after initiation, the new commercial plan was approved and funded by the Board of Directors and the local Regulatory Authority, and was fully implemented.
3 new sales channels were created
Major Accounts Group - focused vertically by customer segments such as Healthcare, College/Universities, and Manufacturing
Commercial Accounts Group - focused on geographical territories
Residential Accounts Group - included teaming inside and field sales by territory
A new marketing organization including a product development function was installed, and an inside sales and technical support organization was created. 20 of the original 28 incumbents were placed in new positions within the organization and more than 50 new external professionals were hired.
Benefits
During the first year of its operation the Residential organization experienced better than 35% close rates on a new oil to gas turnkey conversion service developed as a part of the new competitive initiatives. The Major Account group closed the largest coal to gas conversion project in the city (prior to this the business never got involved in harware sales...in this case the turnkey approach included engineering services, fuel, equipment, installation, startup, and maintenance. The Commercial Group launched a new gas cooling initiative and won the largest project in the city in direct competition with its electric counterpart. Focus was also given to non-traditional markets outside the geographic boundaries of Philadelphia, the implementation of a service plan for all customers and many other initiatives.
The client lacked the resource-talent to formulate and implement the strategy and while we built that with them we worked to do the planning and implementation and to eventually work hand-in-hand with the new resources employed.
Fine Foods Manufacturer – Case Study
Company
Client is between $70 and $100 Million in Sales. They make packaged food products-Clams and Clam Products. The majority of their sales are to FoodService with a growing retail presence under a couple of brands.
Situation
Cura started working with them almost 20 years ago when they were largely a processor of Clams with sales of $15 Million. They had many issues in salesand in business operations and over the years Cura has helped them in their 4X+ growth.
Opportunity
Entrepreneurial Management wanted to grow the company and acquire other resources and companies. Management was strong but lacked experience in sales and other disciplines from a broad experience base.
Action
Cura has served as a trusted advisor and an outsource to build the sales organization and other functions.
We have assessed their sales organization and helped to assess and attract VP’s of Sales, Field Sales Persons and advised on areas of organization and compensation. We have worked with them on CRM.
We have worked with the ownership to bid for acquisitions and while these business’s were sold to others-client acquired other assets and became the prime clam vendor to new owner. We have also helped them in the Financial Management, Plant and Quality areas re-organize and acquire professional management.
Results
Client is a major company in its vertical producing a wide range of products and selling them to a large customer base. We continue to work with them on a project basis.
Manufacturer – Case Study
Company
Client is a supplier of Portion Controlled Meat products for Foods Service with some Retail Business. They are in the $50-60 Million Dollar Revenue area. Cura has worked for client for 5 years.
Situation
The company’ s sales were stagnant. They had formerly been supplier to fast food companies but had exited that business because of lack of profitability. They were not able to grow further when Cura started working with them.
Action
The Management worked through a Brainstorming and Planning Session initially which identified that there strength was in working with Regional FoodService chain restraints to develop custom solutions and products but that the sales resource was mainly engaged in working with customers and brokers in the street business. Profits clearly were higher on the custom products sold to Chain Restaurants.
It was agreed that a Sales Manager should be put into place to free the VP of Sales and Marketing to work with the companies Key Account Manager to penetrate further existing Chain Customers and targeted prospective chain accounts.
The market place and existing customers were mapped using Cura’s Opportunity Mapping Process and the existing sales personnel assessed. Territories were realigned and an additional sales person recruited. Several of the salespersons were replaced with more driven salespersons.
Compensation was restructured to focus more on growth and attaining Key Performance Objectives. A similar approach was adapted for Key Management and Supervision in other areas of the company,
Ultimately a new VP of Sales and Marketing was recruited by Cura, to provide better leadership and growth.
Results
The Sales Organization is truly focused on attaining new growth. In difficult market-place with uncontrollable meat prices the company has a positive perspective on getting to new levels.
Cura is currently working with them on a new CRM system.
Bread Company
Company
Client is a DSD Food Company selling Rolls and Bread to retailers from NY to Virginia. It is currently a company in the $70-80 Million Range.
Situation
Company was losing sales to competitors though clearly the most recognized brand in its market place. Management was very focused to some large impact moves involving a new plant and obtaining 100% of the substantial Convenience Store business. SalesManagement was in neutral.
Opportunity
With a new plant and the Convenience Store customer almost absorbed the company had the financial base to attack the sales opportunities and issues.
Action
The ownership with Cura did a Brainstorming and Planning Session which highlighted the lack of real focus on the 100+ person DSD SalesForce and the 5 Person Regional Manager Group.
Assessment of the Regional Manager Group showed that these long term employees lacked good sales profiles and were complacent – not leading the SalesForce in better servicing existing customers to optimize sales and reduce returns. New accounts were not being pursued in a meaningful and consistent manner. Independent Sales Groups were being used by competition to erode client sales.
A VP of Sales and Marketing was established and Cura recruited and assessed candidates helping ownership choose a strong leader with applicable experience and skilled in food sales and DSD operations. A compensation system was designed to focus on growth and attaining key operating and improvement objectives.
Result
The company is now focused on re-engineering its SalesForce: getting regional manager’s performance measured and compensated based on growth and attaining key performance objectives, replacing sales management that is not capable of meeting expectations and getting the productivity of the DSD SalesForce in a difficult union environment. Cura is supporting the new VP of Sales and Marketing.
North American Hardgoods Company - Case Study
Situation
Our client is a $150 Million, North American Hardgoods division of a $600 Million European firm with a sales force of 100 sales people. Sales had recently flattened after many years of excellent growth. The President was growing increasingly dissatisfied with the sales management and related functional management. Priorities were difficult to establish due to concerns about ramifications to employees and overall business. Many employees were long-term, with deep knowledge of products and customers. It was necessary to make changes that would increase sales and address performance without disrupting the business and negatively impacting the company.
Opportunity
The President asked Cura to help return the company to a sales growth mode by reorganizing the sales force. We spent time with the President and his most trusted senior exec to review the business, the organization, the opportunities and the people. Cura also spoke with and assessed the senior sales management and their peers in other functional areas. Based on the findings, the President made 2 key decisions recommended by Cura. First, he changed the reporting to have the sales managers report directly to him. Second, a Sales Task Force was formed with Cura that included the 8 Sr. Sales Managers. The Sales Task Force would prioritize issues and opportunities and then take action.
Action
Over a series of 2 day off-sites, this Sales Task Force looked at issues and opportunities, and then generated and agreed upon key priorities. Some priorities fell within the sales organization and some in other functions. Priorities included:
Recruiting for both existing open and new sales positions. Some positions had been open for as long as a year and sales managers had little support in finding qualified candidates and filling positions. There was a frustrating focus on only recruiting people from the industry which gave few choices.
Inventory Management and Control
Marketing Communications
Effective Incentive Compensation
Sales Force Automation
As a result, a series of small teams were formed with the client to further define the issues and to develop specific, actionable solutions.
Results
Working with the small teams and utilizing Cura’s proprietary processes, the following actions were taken:
A new supply chain management function was put in place and was headed up by key company executives
Using Cura’s Data Mapping process, dynamically mapped with the client customers and prospects and the potential of the business. Modeled both existing and potential new sales territories and developed a plan for sales force expansion.
Identified four sales “Zones” which would each include 25 sales people, managed under a single Zone Manager with 4 Regional Sales Managers reporting to this Zone Manager.
When assessed sales managers and sr. sales managers, found that 80% were not strong business drivers. Similar results were obtained through assessment of existing sales persons.
Through both assessment process and performance observation, identified 2 of 4 existing Sr. Sales Managers as “real business drivers” for promotion to Zone Managers. “Passed” on 2 other Sr. Sales Managers. Plans were made to fill the remaining 2 zone management positions through internal or external candidates.
Changed incentive compensation to a combination of
reward for overall financial achievement
reward for performance against specific territory/regional objectives
Using Cura’s ProSelect Process, over 3 to 4 months, Cura filled or progressed 20 sales and sales management positions that had been open for as along as 1 year. Worked directly with hiring managers. Obtained agreement from client to broaden focus from hiring only industry product specialists to hiring proven industrial sales people with the right DNA to be successful.
Worked with client to bring Cura’s recruiting ProSelect Process in-house. Recruited and trained new recruiters to manage the process.
Helped client with process for Sales Force Automation including a PDA solution.
Replaced Marcom leadership and recruited new business head for high opportunity business area that was previously melded into other business.
A refocused sales organization that is increasingly driven to sell wider and deeper into existing customers and to prospect high opportunity new customers. New talent in the field with Sales Management closer to salespeople, customers, and prospects. A new sales management organization that has a planned growth direction. Revitalized support functions that are charged with delivering what is needed for customers and sales. A real energy around sales and growth.
Client Feedback
Cura worked hard and was very successful in achieving meaningful change in the direction and capabilities of the sales organization and the company. Client felt that they were coming from a situation where there were many options, but no actions. Truly viable solutions were identified and immediately implemented. Client was satisfied that the engagement was effective, with minimal disruption.
Industrial Goods (Supplies and Equipment) Manufacturer using Distributors - Case Study
Company
Client sells its products through independent distributors. Salesforce consisted of 125 company salespersons working with these distributors and their customers. Company salespersons were managed by 6 Regional Managers reporting to a VP of Field Sales.
Situation
An offsite 1/2 day Brainstorming and Planning session with the Executive VP of Sales and Marketing and two of his Senior Direct Sales reports highlighted that:
1) US Market Share was significantly lower than worldwide market share
2) Sales were flat
3) Over a period of time: Training, adding more Regional Managers and other initiatives had failed to improve results
Solution
We started work by:
Assessing two of the sales regions (interviewing and testing the sales and sales management, doing targeted field sales calls, reviewing their account assignments, systems and sales results)
Assessing the Regional Managers
Using Cura's ProSelect Competency Based Assessment and Recruiting Process for open positions
This work showed that:
Nearly 70-80% of the sales persons were not driven sales persons
Most sales persons and sales managers were prior distributors or were from end user customers
The ex-distributor personnel were mainly service personnel or technical personnel - few had substantive prospecting and sales experience and strength
Most of these sales persons and sales managers were not assertive, resilient and results-focused
Company sales personnel and Regional Managers were not adding value to the distributors and were not assertively developing new accounts and new business
Other issues identified included:
Compensation plans that were paying without setting and attaining targets and objectives
Key Account Groups and Inside Sales Groups that were populated by many personnel without strong sales profiles and experience
Reluctance to make changes with existing personnel
VP of Field Sales could not keep up with the National Travel Requirement
Individual sales persons living a long distance from their accounts
Action
All open positions were filled using Cura's ProSelect Competency Based Recruitment replacing an unstructured recruitment and selection process
Territories and regions were restructured to provide a balance between opportunities and existing sales
The VP of Field Sales moved to another position and was replaced by two driven Zone Sales VP's with strong salesforce management competencies and experience. This allowed true continuous Field Sales Management.
New Compensation Plans were installed to provide for setting and measurement of targets and objectives and payment of incentives based on this attainment. Allowed recognizing and rewarding strong producers and moving/replacing weak producers
Territory personel and Sales Managers were replaced/moved based on their performance, assessment of their performance and strengths and their success at challenging but achievable targets and objectives
Restructuring of Marketing Function
Results
Sales and Market Share began to grow
Aerospace and Defense Company – Case Study
Company
Client is a premier aerospace and defense company with more than 18,000 employees in 22 states, Puerto Rico and internationally with anticipated FY10 revenue in excess of $4.7 billion.
Situation
Client needed a tool to be able to accurately gather information on opportunities and contacts from their sales efforts and be able to share this information throughout the company. The client was using spreadsheets to catalog and track opportunities that came from their sales force. Each division and location seemed to have their own versions of these spreadsheets, and there was no centralized management of the opportunities. The sales force is global, so timely accurate communication was difficult.
Solution
Our solution to the problem was Mobile-SalesPlus. We customized our standard opportunity form to conform to the unique requirements of the client capturing key and critical data. This data is captured during the entire sales process, keeping track of opportunities and keeping critical dates and information in the spotlight.
The application is available on the SalesForce Blackberries and their Laptops.
Results
Client is now able to see all sales opportunities regardless of where they are in the sales pipeline. Salespeople are armed with key and critical data and are able to keep abreast of developments rapidly. Communication from the field sales force to the corporate offices is no longer an issue due to the tight integration between Outlook and the Exchange Server.
Client is rolling out to many of its divisions and locations.
Benefits
Sales people are now able to easily manage their time and tasks as well as keep their focus due to the powerful Personal Information Management tools that Microsoft Outlook provides.
The application is being rolled out to many of the divisions.
Fleet Leasing and Management Company - Case Study
Company
Client is a $1 billion industry leader and the largest privately-held fleet leasing and management company in the world.
Situation
Client has a salesforce of 100+ people that are at various locations around the US, Canada, Mexico and Europe. They needed a contact management system for their sales people that was simple, easy to use, and available both online and offline. They had customized and implemented two software packages previously that failed due to their being overly complex and having problems synchronizing between the local machines and the corporate office.
Solution
Our solution was SalesPlus.Net. SalesPlus.Net is basically customized Outlook forms stored in Public Folders. We customize forms to capture necessary data and work within Microsoft Outlook which most people are already accustomed to using on a daily basis. These customizations allow the user to interact with Outlook's email, tasks, calendar, and contact functions directly.
Results
Cura and the client were able to design and launch SalesPlus.Net very quickly and get immediate results. Management was now able to see each person's efforts and get a true picture of what was going on in the field. Users are able to see all of their contacts, set up appointments, set follow up reminders, and communicate with the corporate office and the customer all without leaving the familiarity of Outlook.
Benefits
Synchronization between the field and the corporate office was no longer a problem due to the tight integration between Outlook and the Exchange Server. Users were able to get immediate results since they were already familiar with Outlook and were now able to utilize its full potential.
Recruiting
Architectural and Engineering Company – Case Study
Company
Our client, a large, multi-discipline A&E firm with offices across the US.
Situation
Following the September 11 tragedy our client received large, priority assignments to fortify Embassies, Military bases, and Public building. Engineers and Architects with experience designing “hardened” gates, building entrance and structures, high security building design, and emergency evacuation plans were desperately needed. Out task was to find these individuals as quickly as possible, screen them, sell them on the opportunity and present them to our client.
Solution
Cura developed a plan and a project team to find qualified, “passive” candidates as quickly as possible. It was agreed that the best candidates would be currently employed and require additional effort to convince them to explore these new opportunities, Intensive research was conducted to identify firms that might employ such talent and to then develop lists of possible candidates names and contact information using Cura’s unique research processes. Networking/Recruiting them began with hundreds of calls a day to contact these prospects and develop leads to individuals who might be interested and qualified. Once found intensive screening followed, resumes acquired, background information reports prepared and then presented to our client for action. We then worked with our client to ensure the candidate was contacted and interviewed promptly. Cura would then work with the client and the candidate as an intermediary during the offer process. Throughout this entire process contact records were kept on every call and presented and reviewed with the client bi-weekly. Billing was sent to client weekly, reviewed and Cura’s on-going effort would be adjusted up or down based on the clients’ budgets. At the end of the project the client was given the names and contact information of every candidate or prospect we indentified and this list was used by their HR/Recruiting department going forward to fill more positions.
Results
A number of key positions were filled, on time and within budget. This included Structural Engineers, Architects, Civil Engineers and Land Development Engineers (both registered and non-registered). This enabled our client to meet deadlines and increase their billing during this high pressure period.
Architectural and Engineering Company – Case Study
Company
Large national architectural and engineering firm.
Situation
A large highly ranked A/E firm, with a growing reputation in the architectural field, had been rewarded multiple large museum projects in Washington, DC by the Smithsonian and others. They wanted someone to manage these and future museum projects and grow their museum practice.
Solution
It was decided to recruit a strong leader, with a solid reputation and high profile in museum design. Someone with an architectural license and national experience working on award-winning museum projects, from business/project acquisition through the design and implementation phases. The individual would have at a minimum 15 years of hands-on design and project management experience.
Results
Cura set up a search team made up of administrative, research and recruiting individuals and the mission plan was outlined. Research was conducted using trade, web, career posting, and federal data sources. This resulted in an internal database of more than 120 possible candidates and networking/reference sources. The expected cost of the search was estimated to be $30-40,000 based on the project compensation package of $150,000 (base plus incentive) and a timeline of 10-12 weeks to complete. Three weeks into the search, we identified an individual with 25 years experience working with Navy and Army contracts and having an Industrial Engineering degree-PE. The client was notified and a screening process was agreed on which included psychological profiling, background and reference checks, and face-to-face interviews with the Managing Principal of Cura-all completed before presenting the candidate to the client and a full report was provided to the client. The candidate was hired four weeks into the search and the total cost to the client was $12,500. During the first year, the candidate won over $1,500,000 in new profitable federal business..
Land Development/Civil Engineering Firm – Case Study
Company/Situation
Large regional land development/civil engineering firm saw the upcoming downturn in the economy and were searching for ways to expand their business. Working with Cura, a plan was devised to venture into the Federal Sector with special emphasis on DOD projects. An internal search showed that no one in the organization had expertise doing Federal project work or business development.
Solution
It was determined that specific knowledge and skills were needed to develop this new business sector and deliver positive results when federal contracts were won. To achieve this it was decided to recruit a senior engineer with strong DOD connections and Federal bid expertise to function as the Federal Practice leader. Board approval was obtained, job description and draft compensation plan was developed and Cura began the search for qualified individuals.
Results
Cura set up a search team made up of administrative, research and recruiting individuals and the mission plan was outlined. Research was conducted using trade, web, career posting, and federal data sources. This resulted in an internal database of more than 150 possible candidates and networking/reference sources. The expected cost of the search was estimated to be $35-40,000 based on the project compensation package of $150,000 (base plus incentive) and a timeline of 10-12 weeks to complete. The search and research was conducted nationwide as we expected only a very small percentage of candidates would have the reputationa and skill level required. Many candidates were interested in the opportunity but did not match the position description when vetted. Through intense networking, we identified a candidate working at a mid-sized firm in Colorado. He was looking for bigger projects with a national exposure and a desire to move back to the Washington, DC area. He was hired nine weeks into the search and the cost to our client was $28,000-well below budget. The candidate has now settled in and is looking to expand his project base from DC to Chicago.
Acquisitions
Packaged Pork Company – Case Study
Company
A major regional processor of packaged pork products that had a large market share in their product categories, primarily on the East Coast.
Situation
The client wanted to expand their product line, their regional coverage, or develop a secondary business with products other than pork based. They desired to do this through acquisition of existing brands, a company with regional coverage other than the East Coast or a company in a completely different but complementary food related business; e.g.; cheese, pet food, packaged prepared salads, etc. They set a price target of $5 to $10 million and insisted the acquired brand/company be profitable and problem free and that all communication flow to the President/CEO only.
Solution
Using existing trade directories, Harris and Dow reports, extensive search and review of target websites, etc. Cura developed separate databases for target companies in the various market segments of a size that might meet our clients' investment goal. These databases were developed using Cura's proprietary Sales Plus contact management software. Each target record included the targets name, owner or CEO's names, all contact information and whatever public financial information we could find. These databases were shared with the cline who edited them based on their knowledge of the targets -- removing companies where there was no interest. After approval Cura would select 20-30 targets a week and develop a carefully crafted, non-threatening letter personalized to each target owner and this confidential letter was sent by Express Overnight mail. Two days after sending the letter a Principal of Cura would place a call to the target. If the target accepted the call we would explain who we were, emphasize that we were not a broker or working under any commission structure and give them a brief description of our client without revealing the name. We would explain that our client was looking to expand its business by way of partnerships, alliances or acquisition. We would ask if they would be receptive to an introductory phone call from our client and we would attempt to extract as much information possible about the target. Successful contacts were passed to our client with a full description of the target and whatever financial and market information we had acquired. A go or no go decision would be made by the client and an agreeable time to call was established. Confidentiality documents were signed; next steps were agreed and executed. This process was repeated weekly.
Results
Over a period of 4-5 months Cura was able to create relationships between our client and 19 possible acquisition targets. Meetings were held, plants visited, financial information exchanged, and next steps agreed. Negotiations are ongoing.
