Case Study Analysis: Jive Software

During the years 2001 to 2004 of gradual development of Jive Systems, the attach to grumous its status as the fastest growing SBS Company in the industry, image the size of its work legament since 2008 and increasing full year revenue 85% from 2008 to 2009. Throughout this occlusion of rapid growth and expansion, Jive relied on a variety of technologies to handle their gross revenue forecasting execute. Till they realized that their bodily structure of business changing almost daily, Jives eccentric establishment struggled to keep up.The structure was done in a haphazard manor. They were doing quota concern in Excel, bookings and gross gross revenue in gross sales force and pipeline summary in Cloud9 Analytics, which resulted in lack of all in all the information into one central system. Jives multi-tool preliminary was the source of s everal serious retires The executive team had poor visibility into the sales luck pipeline all data updates involved a tedious and cu mbersome transfer affect from salesforce. om to Excel pivot tables and, when changes of any kind impoverishmented to be made, p refereeerably of conducting research and having an all team/ department meeting for synchronisation they bonnie made ridiculous plans and moved to creating new increases. 1. Put yourself in Wilsons apparel when he is first absorbd. You bring on to formalize Jives sales functions. What are the karyon building blocks of the sales function you need to regurgitate in straddle?The core building blocks of the sales function that one needs to put in place are as follows The ability to understand and take apart business issues and develop solutions around the core building blocks of sales process which are tools, skills, competencies and attitudes. Based on the beau mondes revenue hire sales reps that are capable of using the latest techniques to engage several(prenominal)s in their development and understanding coaches and mentors (VPs) who help ind ividuals to become aware and responsible for their opportunities.With ref to the Sales skill curve article and adding to the above one should set-back out with very low assumptions about expected revenue per salesperson, and affix these expectations gradually, quarter by quarter. Anticipate that during the initiation phase, reps impart not start out enough revenue to cover their sum up cost. Instead of hiring new sales reps the VP should track the productivity of existing reps approaching the point where they cover their total costs. Post that if necessary one should consider expanding the sales force. . Evaluate the schema of using team vs. individual coverage/quota models. What are the pros and cons of for each one approach? Suggest an alternative coverage/quota mode In the Jive eluding study we see that when Dennis Deveny and Sarah Denman worked as a team, the sales strategy was acquittance on the right track till the VP introduced more sales players. plainly however using a team is more effective as they jakes split up responsibilities and cover areas that they are capable as easy as making it less time consuming.With respect to team coverage quota models Depends on if they are the same job role or not if its both of the same role (i. e. two Field repps vs. one Field Rep paired with an Inside Rep), then the following applies Pros Obvious alignment and cooperation in rep activity and reduction in rep conflict on deals resulting in no commission and credit fights. Cons Diluted responsibility, much easier to pay for sales influence per $ of revenue, much easier to overpay for lower levels of performance, if quota relief is ever given it enkindle reward the wrong person, etc.However an individual sales quota might work in the initial stage (testing stage) when the company is just starting out as a small firm, with tokenish expenses and quota. The pros would be awarded for ones own credit/work, examine the reps get on and the cons would be few areas covered compared to a pair, work overload, stress/ stamp and time consuming. Alternative coverage/quota mode Have a trafficker look after introductions, qualification and generation of opportunities, then bringing in the salesperson to discuss commercials and close the deal, you can create an effective pairing. notwithstanding the company must make sure that these pairs look after unlike territories, which could be geographic, vertical etc. The most important thing is to promise there is no crossover, one can split by verticals, and we need to make sure to draw the lines and that no one company can sit in two verticals. 3. What are the merits of a quarterly vs. per year quota systems? What is the ideal continuance of a quota period? What are the adverse do if the period is too spacious or short? Which quota period length is most appropriate for Jive?Quarterly annual quota is effective as sales reps can measure their performances per quarter and rectify the problem s in the neighboring quarter thus avoiding a big blunder towards the end of the financial year. One can keep track, learn from the changing business milieu and their targeted territories. Also if compensation is included in each quarter it can boost the competition of the sales rep. On the an early(a)(prenominal) hand long term quotas can be less stressful and the sales reps have enough time and space to learn their territories well.The ideal length of a quota period depends on each company and different factors such as Corporate revenue goals, Historic revenue performances, Current sales coverage model, Planned increases in sales headcount, Introduction of new products and services, Current foodstuff share, Stretch targets. Adverse effects if the period is too long sales reps would start with their quota with great gusto in the beginning of the year and motiveless interest towards the end of the year. The company tends to solve the situation when the year ends because they learn about the problem too late and at that stage the issue can be unsolvable.As for too short a period it can lead to a lot of stress, incorrect methods of achieving sales quotas as the competition level is too high which results in Sales reps not contracting the right information and failure in understanding the customer needs. As the case study shows that quarterly quotas were a big calamity I would recommend Half yearly sales quotas because sales reps impart have enough time to understand their target territories, half yearly sales quota will be less stressful and plus forfeit them to gather accurate data keep their strategies current with the business.Also the company must be willing to adjust the leverage down to foresee some reduction in quota accuracy and manage compensation costs to reasonable levels and avoid revamping the sales for at every quarter. 4. How does the enterprise sales learning curve (ESLC) apply to this situation? The sales rep will have time to unders tand the consumer needs by allowing the beta to be tested by the consumers. By reduction of quotas, it will result in a less stressful situation giving the sales reps the opportunity to gather information on the pros and cons of the product and creating a correct embrace for the company.On doing this the engineers, product developers, marketers and sales can work on a half yearly plan according to the results of the report. 5. Jive Software has inform plans to bring on John McCracken as the new VP of Sales in Q109. What steps should McCracken take to mitigate the problems in sales? With ref to the Sales Learning Curve Adjust the sales strategy he learns by using the sales learning process that unfolds in triple phaseseach requiring a different size sales force with different skills generalisation Once the products are beta-tested and have few potential customers.Should hire three to four salespeople to learn how customers will use the product and to support other parts of the c ompany in refining the offering as well as marketing and selling strategies. Look for salespeople who Communicate well with teams from other functions, Tolerate ambiguity, Have a deep interest in product technology, crumb bring customers together with various functional teams in your firm, Can develop their own sales models and collateral material. Transition Once acquired a critical mass of customers and sales are accelerating.Keep initial sales team focused on learning. Add sales reps who can hire effectively within an evolving sales model but who dont necessarily have the analytical and communication skills the initial team required. carrying out Once developed the formula for success and put the sales forces support requirements in place, bring in traditional salespeopleand arm them with a territory, sales plan, price book, and marketing materials to take orders. Sources The Sales Learning Curve Article by Mark Leslie and Charles A Holloway.