SalesForce Re-Engineering

Philadelphia Gas Works (PGW) – Case Study

Company

PGW 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 eplaced the management team. They were charged with improving the financial health of the company.

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. A new business strategy, organization, compensation plan 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. 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.

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 product developed as a part of the new competitive initiatives. The Major Account group closed the largest coal to gas conversion project in the city and the Commercial Group launched a new gas cooling initiative and won the largest project in the city in direct competition with its electric counterpart

 

LaMonica Fine Foods – Case Study

Company

LaMonica Fine Foods 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 LaMonica almost 20 years ago when they were largely a processor of Clams with sales of $15Million. 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 Borden’s Doxsee and Snow’s Brands and while these business’s were sold to Castleberry-LaMonica acquired other assets and became the prime clam vendor to Castleberry. We have also helped them in the Financial Management, Plant and Quality areas re-organize and acquire professional management.

Results

LaMonica 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.

 

DeVault Foods – Case Study

Company

DeVault Foods is a supplier of Portion Controlled Meat products for Foods Service with some Retail Business. They are in the $50-60Million Dollar Revenue area. Cura has worked for DeVault for 5 years.

Situation

The company’ s sales were stagnant. They had formerly been supplier to fast food companies like Burger King and Wendy’s 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 the VP of Sales and Marketing was replaced 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.

 

Amoroso Baking Company

Company

Amoroso is a DSD Food Company selling Rolls and Bread to retailers from NY to Virginia . It is currently a company in the $70-80Million 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 Wawa business. SalesManagement was in neutral.

Opportunity

With a new plant and the Wawa business 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 Amoroso 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.

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