Tom Ingram and Associates, Inc. Home

Organic Sales, Revenue Side Success Stories*

NOTE :  FULL DETAILS FOR AN ASSOCIATE ARE SHOWN ONLY ONCE - WITH WHOLE NUMBER IDs.  Additional results are in shorter format with ID as NN.NN

ID, Picture

Company

Headline

Details, How Accomplished

Shorten Sales Cycle Successes

Bookmark 660.1

Mary Twain

Shortened Sales Cycles from two years+ to 6 Months

Grew Sales from $2 Million to $75 Million and IPO in Four Years.

Closed 35 of the 42   pharmaceutical firms in 18 Months

Average sale $75,000 to $3 million+

Jerry Mason and Mary Twain led Documentum from a struggling $2 Million in Sales to $75 Million and an IPO in Four Years.  Highlights:

• Closed 35 Sales to major pharmaceutical firms in 18 Months, ranging from $75,000 pilots to $3 million+ full implementations*.
• Jerry's team sold $2 million+ deals to Glaxo, SmithKline, Schering Plough, Sandoz, Wyeth Ayerst, Johnson & Johnson, Roche and Pfizer.
• Provided Customers with 32-Fold Paybacks
• Shortened Sales Cycles from two years+ to 6 Months (average)
• Learned to get Meetings With and Sell To Senior Executive Decision Makers (avoided the purchasing department commodity trap.)
• Every $1 Million in software sold resulted in $3 Million to $5 Million in outsourced services

(Mary provided the following video interviews.  Contact Us for Confidential Details)

2.2 How We Closed GlaxoSmithKline, Schering Plough,  Johnson & Johnson, Pfizer and 30 other Pharmaceutical Companies in 18 Months 

2.3 On Shortening Sales Cycles 

2.4 How to Sell to Senior Executive Decision Makers - Not Lower Level People

2.5 How to Sell $4 of Services for Every $1 of Technology Sold

Bookmark 851

Dick Zell

Handleman

Premium Retail Services

Closed $5.5 Million Services Sale to Proctor & Gamble  in 60 Days (penetrating new account)

20+ Years Leading Sales and Effective Execution of Business Services.  Highlights:

Penetrated New Marquee Account:  Closed $5.5 Million in Outsourced Services in 60 Days with Proctor & Gamble*

Grew P&G Account to $8 million per year for eight years.

Closed other sales, total exceeding $100 million over 10 years at healthy margins

How Closed $5.5 Million in Outsourced Services in 60 Days with Proctor & Gamble*

1. UNUSUAL CIRCUMSTANCES - NOT EASILY DUPLICATED

2. We had a healthy outsourcing services client that had wanted to penetrate P&G for years

3. We had another outsourcing services client that had serviced P&G for 10+ years. This client was being liquidated because its parent company had failed and a buyer could not be found

4. Ingram negotiated for legal releases and was able to move three senior people from the failing client to the healthy client

5. Within 60 days, the healthy client closed $5.5 worth of new outsourced services with Proctor and Gamble

7. Work outsourced was a Business Process called "merchandising services", including significant software and hardware for "work order management and scheduling"

9. ROI between 4.5 and 22 fold over 8 years: P&G conducted a formal ROI study leading to this conclusion

See details

Bookmark 853

Tom Ingram

$10 million sale to Celanese in 60 days

30+ Years Leading Sales Execution and Sales Technology Efforts.  Highlights:

- $40 million sales gain, $10 million margin improvement for client from a sales technology project

- $10 million sale to Celanese after saving project in trouble

- $8 million State & Local technology product and services practice built

- Sales management roles resulting in $10 million+ new, complex sales

- Five time winner, 100% Club award for personal sales in early career

Bookmark 853.3

Tom Ingram

30 day average sales cycle for seven sales to new services niche,

$1 million services sold to niche in total

Bookmark 853.4

Tom Ingram

12 major sales in less than 30 days in sales and sales management roles

Bookmark 677.4

Scott Ransom

Batesville Casket:  Sold $900 million in insurance services in 30 months

Increase Margins, Grow High Margin Customers

Bookmark 854.1

Scott Clarion

Heat Treatment Firm

Grew OPERATING PROFIT from 8% to 18% in four years for $120 million commercial pump division

Grew profits from loss to nearly 15% EBITDA for heat treatment firm

Bookmark 605.2

Mark Acer

49% Gross Profit Over Long Term

Bookmark 611.2

Jane Mills

Grew division from  loss to 10% EBITDA over six years. *

Bookmark 605.1

Mark Acer

Sold company in 2007 for 25 Times Earnings! *

Bookmark 601.2

David Watson

GE Energy

Grew Services Sales from $250 Million to $540 Million

and

Operating Profit from $18 Million to $95 Million in Two Years

Bookmark 714.1

Bill Seven

$500,000 to $3 Million Sales at 50%+ Gross Profit to: Energen, BMW, Safety Kleen, Shell Oil, Entergy, United States Air Force, Lennox Air Conditioning, Texas Commerce Bank, NCR, Union Pacific Resources, Meridian Oil, McDonnell Douglas Aircraft, Cessna Aircraft, Truman Medical Center, Gillette, Hasbro Toys

Bookmark 854.2

Scott Clarion

Heat Treatment Firm

Grew HIGH MARGIN customers from 45% to 78%

Reduced low margin customers from 55% to 22%

Bookmark 728

Mark Ayers

Grew Unit From $42 Million to $180 Million in 18 Months.  Maintained 25% Pre-Tax Profit, 50%+ Gross Profit

30+ Years with EDS and Similar Outsourcing / Consulting Services Companies.  Details on some of his biggest sales and leadership results:

- Grew Unit From $42 Million to $180 Million in 18 Months.  Maintained 25% Pre-Tax Profit, 50%+ Gross Profit

- Grew Unit From $1.2 Billion to $2.9 Billion in 24 Months.  Maintained 20% Pre-Tax Profit

- Grew Revenues from $4 Million to $16 Million in Consumer, Manufacturing, Distribution and Retail segments. Clients included Unilever, Philips. Corning, Textron, Circuit City, Dial, LSG-Sky Chefs, Scotts, CSX, GM, Johns Manville, Pactiv, Honeywell, Meijer, Kraft, Newell Rubbermaid, Walgreens, ArvinMeritor, Xerox.

- Saved $125 Million/year for client through supplier selection and and contract negotiation for F&A, Purchasing, HR, Engineering, IT infrastructure and IT Applications.

Large Sale Details:

(728)  High Margin Win, SAP, Oracle, BAAN, Peoplesoft Application Services Unit*: Maintained 25% Pre-Tax Profit, 50%+ Gross Profit While Growing Unit From $42 Million to $180 Million in 18 Months.  Growth was extremely rapid due to year 2000 implementations.

(729)  High Margin Win, IT Infrastructure Outsourcing Services Unit*:  Maintained 20% Pre-Tax Profit While Growing Unit From $1.2 Billion to $2.9 Billion in 24 Months. Switched from product resale strategy to outsourced services strategy.

(730)  High Margin Services Sales - $325 per Hour Consulting Services:  Grew Revenues from $4 Million to $16 Million in Consumer, Manufacturing, Distribution and Retail*. Clients included Unilever, Philips. Corning, Textron, Circuit City, Dial, LSG-Sky Chefs, Scotts, CSX, GM, Johns Manville, Pactiv, Honeywell, , Meijer, Kraft, Newell Rubbermaid, Walgreens, ArvinMeritor, Xerox. Service sold by small consulting firm was senior executive advisory on outsourcing purchases.

(731)  Meijer: Deductions Management, Trade Funds Reconciliation*, Purchasing, Finance, H/R:   Sold team of 6 people, to evaluate, then outsource  those functions with a solid business case.

(732)  Major CPG Company, $125 Million Annual Savings: Sold a team of 20+ consultants for 15 months to evaluate all G&A function. Assisted in the supplier selection and and contract negotiation for F&A, Purchasing, HR, Engineering, IT infrastructure and IT Applications.  Resulted in $125 million in annual savings for client.

Bookmark 731.1

Mike Fairbairn

$2 Billion Engineered Pumps, Valves, Systems, Services for Oil & Gas

Grew Operating Profit growth from $14 million to $120 million

Bookmark 800.2

Victor Allison

Stewart and Stevenson Gas Turbine

Led the aftermarket team to $103 million in revenue and $42 million in margin in 18 months

$700 Million Oil, gas, power industry parts, services and packaged solutions  provider

Manufacturer of jeeps, trucks, specialty vehicles for U.S. government

Founding member during acquisition.  Led the aftermarket sales team to $103 million in sales and $42 million in margin in 18 months.*

(Contact Us for Confidential Details)

Bookmark 800.1

Fred Thompson

$4.8 Billion Engineered Pumps, Valves, Systems, Services for Oil & Gas

Grew division from $1.2 billion in sales to $3 billion over five years

Moved Flowserve from #6 to #1 in the engineered pumps industry.

Thompson led growth of Flowserve Engineered Pump division from $1.2 billion in sales to $3 billion over five years, moving  Flowserve from #6 to #1 in the engineered pumps industry. Included the consolidation of sales forces from four business units to a single sales force of 400 technical sales people.

Value Pricing Win:  Thompson led the sale and delivery of a high margin, “fixed fee” project to handle all seals and related maintenance for Albamarle Chemical for five years.*

(Contact Us for Confidential Details)

Bookmark 800.3

Victor Allison

SPX Cooling Technologies

Led aftermarket business growth from $26 to $40 million in two years with a 25% operating profit margin.*

$522 Million Manufacturer of Cooling Equipment for Generators, Commercial, Industrial Equipment

(Contact Us for Confidential Details)

Bookmark 801.1

Rob Glen

(Formerly Monsanto Electronic Materials)

Organic Sales Growth over 20%,

10% avg. price increase for commoditized products,

$1 Billion Silicon Wafer Manufacturing, Texas Pacific Group (Private Equity)

Led organization to Organic Sales Growth over 20%, first profit in 15 years, 10% avg. price increase for commoditized products, 28% of revenues from new products (historic high), 15% commercial headcount reduction, 40% travel cost reduction.  Integrated nine commercial organizations integrated into one.  (15 year tenure, including worst market downturn in semiconductor industry history.)*

(Contact Us for Confidential Details)

Bookmark 801.5

Rob Glen

(Formerly Monsanto Electronic Materials)

28% of revenues from new products

First profit in 15 years

Bookmark 801.2

Rob Glen

GE Aviation – Marine & Industrial Engines

35%+ organic sales growth in year one and 20%+ growth in year two.

$100 million+ sales in year one for new unit

$1.4 Billion Division

Led consolidation of six businesses into a single $320 million unit.  Unit's performance included 35%+ organic sales growth in year one and 20%+ growth in year two.

Created another unit resulting in $100 million+ sales in year one.

Penetrated UK Oil & Gas market resulting in $60 million sale to British Gas and the UK Interconnector, winning 100% of annual UK Oil and Gas related projects. Previous company share had been 0%.

Packaged Power Services unit met plan and grew operating margins 34% with  35% growth rate (approx.)

Customer Products unit grew 62%, exceeded goals by 10%, record sales - all while operating at 60% of budgeted headcount

Led campaign resulting in sales of 22 units prior to availability of new LM2500+ engine.*

(Contact Us for Confidential Details)

Bookmark 853.1

Tom Ingram

$10 million margin improvement and $40 million sales gain for client from a sales technology project

Organic Sales Gains

Bookmark 601.08

Doug Terrell

GE Commercial Sales

Led sales increase from $640 Million to $1.4 Billion in 24 months*

$1.4 Billion Power Generators for Utilities

Lighting, Aircraft Engines and Services, Other industrial products and services

Terrell led implementation of new incentive systems. Resulted in Sales increase from $640 Million to $1.1 Billion in 12 months and  $1.4 Billion in 24 months*

Former direct report to Jack Welch, head of sales for GE

(Doug provided the following video interviews on "How GE Does It".  Contact Us for Confidential Details)

4.2 How to Sell to Senior Executive Decision Makers and Avoid the Commodity Trap of Lower Level Buyers

  4.2.1 Part 1:  Focus on the Revenue Side - Make Money for Them

  4.2.2 Part 2:  Faster, Bigger Paybacks than Your Competitors

  4.2.3 Part 3:  Becoming Part of Customer's Planning Cycle

  4.2.4 Part 4:  How Being Better on the Revenue Side Helps You be Better on the Cost Side

4.3 35% Contribution Margin on $47 Billion in Services Revenue:  How GE Avoids the Trap of Underrating Services

  4.3.1 "Selling a Few Parts and Repair Services" vs. a Service That Reduces Generator Downtime from 6 Months to 4 Days

4.4 Essentials:  The Weekly Sales Pipeline / Qualify / Sales Activity Measurement / Forecast System

  4.4.1 Bonus:  Sales People Sharing What is Working, Helping Each Other

4.5 Incentive Systems Work:  How We Increased Sales from $640 Million to $1.1 Billion in One Year, to $1.4 Billion the Next

4.6 Doug's Best Sales Person Development Tools and Techniques

4.7 How to Get a Product / Engineering Focused Organization Excited About Services

4.8 Performing Service as Promised is Your Best Sales Person

4.9 Special and Extra Effort Services that Keep the Customer for the Long Term

4.10 How to Find Your Technology / Process / Quality Competitive Edge  (Customers value it, competitors can't duplicate it)

Bookmark 660

Jerry Mason

Grew Sales from $2 Million to $75 Million and IPO in Four Years.

Closed 35 of the 42   pharmaceutical firms in 18 Months

Average sale $75,000 to $3 million+

Shortened Sales Cycles from two years+ to 6 Months

Jerry Mason and Mary Twain led Documentum from a struggling $2 Million in Sales to $75 Million and an IPO in Four Years.  Highlights:

•    Closed 35 Sales to major pharmaceutical firms in 18 Months, ranging from $75,000 pilots to $3 million+ full implementations*.
•    Jerry's team sold $2 million+ deals to Glaxo, SmithKline, Schering Plough, Sandoz, Wyeth Ayerst, Johnson & Johnson, Roche and Pfizer.
•    Provided Customers with 32-Fold Paybacks
•    Shortened Sales Cycles from two years+ to 6 Months (average)
•    Learned to get Meetings With and Sell To Senior Executive Decision Makers (avoided the purchasing department commodity trap.)
•    Every $1 Million in software sold resulted in $3 Million to $5 Million in outsourced services

(Jerry provided the following video interviews.  Contact Us for Confidential Details)

1.2 On Shortening Sales Cycles

1.3 How to Be a Partner instead of a Commodity

1.4. How to Find the Right Niche for Your Services Company

1.5.  How to Produce 32 Fold Paybacks for Clients

Bookmark 610.3

Mark Grant

Grew stock from $4 per share to $27 per share and sell-out in six years.*

$64 Million Manufacturer of ambulances

Grant led earnings and stock price improvement from $4 per share to $27 per share and sell-out over six years.*

(Contact Us for Confidential Details)

Bookmark 677.3

Scott Ransom

Batesville Casket:  Sold $900 million in insurance services in 30 months

Bookmark 677

Scott Ransom

Computer Science Corp.

Sold $350 Million per Year in Outsourced Services to Client 1

During his 25 years in sales and leadership Scott produced some big wins:

- Leadership Resulted in 13.6% growth (two times market) and $1.6 Billion pipeline

- Sold $350 Million per Year in Outsourced Services to one client

- Grew outsourced services sales to another client to $15 Million per Year

- Grew outsourced services sales to a third client by 15%+ to $62 Million per Year

- Grew outsourced services sales to a f to $135 Million

- Helped another client save $500 million+

- Closed $4.2 Billion, 10 Year Sale of outsourced services

- Sold $900 million in insurance services in 30 months

- "Best of the Best" Sales Techniques including Selling with Short Term Gains, Selling with Industry Expert, Selling by Performing After the Sale, Selling as a Valued Partner - not on Price, How to Close a Mega-Sale

(Scott provided the following video interviews.  Contact Us for Confidential Details)

3.2 How to Win Outsourcing Sales with Short Term Gains

3.3 Winning by Having an Industry Expert on Your Team

3.4 Winning with Strong Before and After Performance Improvement Measures

3.5 How to Be a Partner - Not a Commodity - Through Industry Expertise

3.6 Winning - But Not on Price

3.7 How to Build a Consumer Goods Outsourcing Practice

3.8 How We Won a $4.2 Billion Outsourcing Sale

Additional Accomplishments, Results, Lessons

•     Moved sales team from "waiting for RFPs" to active prospecting.  Resulted in
•     Sold $350 Million per Year in Outsourced Services to a Fortune 10 Global Consumer Goods Manufacturer
•     Grew outsourced services sales to a Beverage Manufacturer / Bottler to $15 Million per Year
•     Grew outsourced services sales to a Consumer Goods Manufacturer by 15%+ to $62 Million per Year
•     Grew outsourced services sales to a Tobacco Company to $135 Million
•     Grew outsourced services sales to a Brewery to $75 Million per Year.  Client saved $500 million+ through joint venture / merger with SAB Brewing of South Africa.  Market capitalization increased by $2 billion in 60 days because investors saw that the joint venture / merger was going to produce the promised cost savings.
•     Closed $4.2 Billion, 10 Year Sale of outsourced services to a Chemical company.  Beat 17 competitive RFPs.  Won the large deal at lower margins but grew high margin work to close $1 Billion.
•     Won $100 Million Renewal of Outsourced Services to CPG Data Analysis Company.  Lost part of the business to a large off-shore competitor, but won the business back due to superior performance.
•     Sold $900 million in services (insurance policy) revenue in its first 30 months for a subsidiary of Batesville Casket (after client had failed four times to start a pre-paid funeral services business. )

Bookmark 604.2

Scott Lear

Schneider Electric, U.S. Division

Grew total sales from $78 million to $120 million

Bookmark 714

Bill Seven

$500,000 to $3 Million Sales at 50%+ Gross Profit to: Energen, BMW, Safety Kleen, Shell Oil, Entergy, United States Air Force, Lennox Air Conditioning, Texas Commerce Bank, NCR, Union Pacific Resources, Meridian Oil, McDonnell Douglas Aircraft, Cessna Aircraft, Truman Medical Center, Gillette, Hasbro Toys

28+ Years in Sales, Sales Management, Senior Management Roles with High-Value Application Software and Services Firms Such as EMC / IBM, IXOS, Viewstar, MSA

Major Sales:  McKesson:  $500,000+ Sale at 50% gross profit, Energen (Natural Gas Provider):  $1 Million+ Sale at 50%gross profit, BMW: $500,000+ Sale at 50% gross profit, Safety Kleen: $500,000+ Sale at 50% gross profit, Shell Oil: $1 Million+ Sale at 50% gross profit, Entergy:  $750,000 Sale at 60% Gross Profit, United States Air Force: $1.8 Million Sale at 50% Gross Profit, Lennox Air Conditioning: $300,000 Sale at 50% Gross Profit, Texas Commerce Bank: $3 Million Sale at 60% Gross Profit, NCR: $600,000 Sale at 60% Gross Profit, Union Pacific Resources: $3 Million Sale at 60%Gross Profit, Meridian Oil: $1 Million Sale of Software and Services at 60% Gross Profit, McDonnell Douglas Aircraft: $1 Million Sale at 70%Gross Profit, Cessna Aircraft: $400,000 Sale at 70%+ Gross Profit, Truman Medical Center:  $300,000 Sale at 70% Gross Profit,  Marley Air Conditioning: $1.2 Million Sale at 50% Gross Profit, Gillette: $800,000 Sale at 55% Gross Profit, Hasbro Toys: $600,000 Sale at 60% Gross Profit

Sale Details:

(714) McKesson:  $500,000+ Sale at 50%+ blended gross profit for software, services and maintenance*.  Stopped selling to IT, sold to CFO, increased average gross margins by 27%.  Application sold was imaging and workflow for Trade Funds / Promotions Reconciliation, Deduction Management (the "short pay" problem), archiving of documents and reports, with interface to  financial system.

(721)  Energen (Natural Gas Provider):  $1 Million+ Sale at 50%+ blended gross profit for software, services and maintenance*. Stopped selling to IT, sold to CFO, increased average gross margins by 27%. Application sold was imaging and workflow for Accounts Payable, Accounts Receivable, archiving of documents and reports, totaling 22 applications in all areas of the company, with interface to SAP.

(726)  BMW: $500,000+ Sale at 50%+ blended gross profit for software, services and maintenance*.  Stopped selling to IT, sold to CFO, increased average gross margins by 27%.  Application sold was imaging and workflow for Accounts Payable, General Ledger, Quality Control, with interface to SAP.

(727)  Safety Kleen: $500,000+ Sale at 50%+ blended gross profit for software, services and maintenance*.  Stopped selling to IT, sold to CFO, increased average gross margins by 27%.  Application sold was imaging and workflow for Accounts Receivable, archiving of documents and reports, with interface to SAP.

(723)  Shell Oil: $1 Million+ Sale at 50%+ blended gross profit for software, services and maintenance*.  Stopped selling to IT, sold to CFO, increased average gross margins by 27%. Application sold was imaging and workflow for Accounts Payable, Franchise reporting, archiving of documents and reports, with interface to SAP.

(728) Entergy:  $750,000 Sale of Software and Services at 60%+ Blended Gross Profit*. Application sold was specialized backup and disaster recovery system.  Sold to CFO on the basis of keeping business running in disaster, not sold to IT.

(729)  United States Air Force: $1.8 Million Sale of Software and Services at 50%+ Blended Gross Profit*. Application sold was email and document storage and retrieval on extremely large scale.

(730)  Lennox Air Conditioning: $300,000 Sale of Software and Services at 50%+ Blended Gross Profit*.  Application sold was  document storage and retrieval with interface to SAP.

(731)  Texas Commerce Bank: $3 Million Sale of Software and Services at 60%+ Blended Gross Profit*. Reduced loan processing time form 7 days to 5 hours.  Application sold was  mortgage loan work flow processing.

(732)  NCR: $600,000 Sale of Software and Services at 60%+ Blended Gross Profit*.  Application sold was  accounts payable work flow processing with interface to SAP.

(733)  Union Pacific Resources: $3 Million Sale of Software and Services at 60%+ Blended Gross Profit*. Application sold was  accounts payable and land contracts work flow processing with interface to SAP.

(734)  Meridian Oil: $1 Million Sale of Software and Services at 60%+ Blended Gross Profit*. Application sold was  accounts payable work flow processing with interface to SAP.

(735)  McDonnell Douglas Aircraft: $1 Million Sale of Software and Services at 70%+ Blended Gross Profit*. Application sold was general ledger, accounts receivable, accounts payable and fixed assets.

(736)  Cessna Aircraft: $400,000 Sale of Software and Services at 70%+ Blended Gross Profit*. Application sold was human resources and fixed assets.

(738)  Truman Medical Center:  $300,000 Sale of Software and Services at 70%+ Blended Gross Profit*. Application sold was general ledger, accounts receivable, accounts payable and fixed assets.

(739)  Marley Air Conditioning: $1.2 Million Sale of Software and Services at 50%+ Blended Gross Profit*. Application sold was  document storage and retrieval with interface to SAP.

(740)  Gillette: $800,000 Sale of Software and Services at 55%+ Blended Gross Profit*.  Application sold was  Accounts Payable document management software and services.

(741)  Hasbro Toys: $600,000 Sale of Software and Services at 60%+ Blended Gross Profit*. Application sold was  Accounts Payable document management software and services.

Bookmark 728.1

Mark Ayers

Grew Unit From $1.2 Billion to $2.9 Billion in 24 Months.  Maintained 20% Pre-Tax Profit

Bookmark 728.2

Mark Ayers

Grew Revenues from $4 Million to $16 Million in Consumer, Manufacturing, Distribution and Retail segments.

Bookmark 731

Mike Fairbairn

$2 Billion Engineered Pumps, Valves, Systems, Services for Oil & Gas

Grew Sales for Latin America unit  from $240 million to $560 million in four years

President of Latin America, eight countries, four plants, 2200 employees, in five years:

- Sales growth from $240 million to $560 million

- Operating profit growth from $14 million to $120 million

- "Skinny Systems" success by using simple PC accounting software to standardize eight business units instead of using standard solutions of SAP or Oracle.  Resulted in $7 million cost savings plus six month implementations per business unit instead of standard three years+.

-  Full Customer P&Ls / Dashboards showing cost to serve

Key Lessons:

- Proactive Management Of Margin,T&C, Cashflow in First 1/3 of Sales Cycle

•     40-50% of orders are initially "not clean" (customer pushing for one sided terms and conditions.  Creates lead time and conversation to negotiate win-win rather than "take it or leave it")
•     Moved Margin, Cashflow, Legal Risk, Technical Application scrutiny to first 1/3 of sales cycle instead of dealt with in a rush in last 1/3
•     Average Quote to Close can very widely:  Two years to 60 days
•     Executives often weak on terms and conditions.  Improved scrutiny and understanding significantly

- Requires discipline, must be enforced from top down

•     #2 Executive Drove Process Unceasingly - especially legal review in last 5 years

•     Simple but strict.  Focused questions on right issues, discipline
•     Expect complaints, resistance from sales "Took me 3 days to complete SQP process.  I may lose order"  (in reality, sales rep had 30 days.)

- Enforced Dollar Gates for Approval:

•     Over $500,000 Sales Quote Process (SQP) required by policy to approve order
•     Over $1.5 mm requires SQP + COO signature
•     Over $2.5 mm requires SQP + CEO signature
•     Over $5 mm requires SQP + Board approval

- MUST be streamlined to point where can be done in 1-2-3 days (depending on number of signatures required)

- Big Process Steps

•     SQP MUST START AT QUOTATION - not wait until order in hand (makes customer mad to say no, raise price, change terms.  Prevents "fate accompli")
•     INITIAL STEPS:
  •    Standardized review on "Scope of Supply", terms and conditions
  •    Attach original customer documents with terms and conditions
•     "Checkboxes" for red flags with notes for mitigation.  (e.g. small pump, cost small, client will pay "in and out" costs.  Click here if margin less than 20%)
•     3rd Party Commissions Review:  All 3rd parties required to have standard contract,  audited, in compliance, approved commission, current, etc.
•     Liquidated Damages Review:  Extreme cost risk possible if liable for e.g. refinery down time
•     Cash Flow Analysis:  Pressing for positive (don't always get)

- FInal Step:  Controller and Operations at facility that must deliver reviews and approves

NOTE:  "In and Out Costs" Example:  A 20 ton piece of equipment is installed by vendor.  A  breakdown requires removal of the equipment for repair.  Costs to vendor can reach $200,000 quickly due to safety compliance, unions, cranes, etc.

Additional Results:

- Average reduction in system implementations of 2.5 years per business unit directly resulted in sales and profit growth through process improvement, waste reduction, disciplines, standards and cost savings.

- Cycle time improvement examples:  Before:  processed 10 invoices/day per person.  After:  Processed 30 invoices/day

- Standardization across all business units: A/P, A/R, Operations Manuals for customer setup, credit granting, process discipline and documentation in all departments

-  Resulted in changing standard for new plants to simple, PC-based.  (For unknown reasons subsequently reversed this decision.)

Additional Lessons:

SQP Problems Prevented:

•     Hidden warranty, In and Out, and other costs
•     3rd party commissions cost out of control
•     Order taken from customer before diligence performed.  Must tell customer no or raise price
•     Negative cash flow
•     Reduced major risks such as Liquidated Damages
•     "1,000 page contract that gets signed, but not really read or understood"

SQP (Sales Quotation Process.)  Resulted in dramatic improvements in margin, forecast accuracy, change order payments.  Big reduction in legal risks, "surprise costs" over 10 years.  Average Order $2.4-$7 million.  Average 500+ Orders Per Year.  30% Close Rate

SQP RESULTS:

- 50% ACCURACY IMPROVEMENT IN SALES PIPELINE, Revenue, Margin Forecast

- 5-10% MARGIN INCREASE

- 15%+ IMPROVEMENT IN GETTING PAID FOR CHANGE ORDERS because tracked against better specification, defined as billable earlier in sales cycle, better baseline to enforce change order payment

- 25%+ REDUCTION IN SURPRISE COSTS In first year due to reduced risk in Warranty, In and Out, Technical Application and Scope of Supply costs

- SAYING 'NO' TO BAD BUSINESS, Negotiating Better Terms:  Increased from near 0 to 3 big quotes per month sent back for negotiating improved terms

- REDUCTION IN CATASTROPHIC LEGAL RISK:  A single mistake on a small $500,000 order can bankrupt the company.  e.g. "A mistake with Shell will cost you $2 million in a heartbeat"

SQP Key Lessons:

•     NEED, DEADLINES drove much of the success:  Acquired and start up business units had no systems, critical deadlines, had to make transition as fast as possible
•     Choice was between simple, PC based solution at $100,000 per business unit and SAP/Oracle solutions at $1 million+ per business unit
•     First implementation was hard, difficult but resulted in blueprint that could be replicated for next seven.  Critical issues that had to be worked through:
  •    Item Master
  •    Chart of Accounts
  •    Division financial rollups / consolidations
  •    Standard Cost and Cost Accounting
  •    Bills of Material
  •    Taxes
  •    Customer Management
•     Decided to use simple software because most difficult part was going from no automated system to an automated system.  Chose to tackle this learning curve first, switch to more complex system later (turned out was not needed.)
•     MRP component worked well
•     NO CUSTOMIZATION of software except for tax jurisdictions
•     Customizations were thoroughly documented to allow software to be upgraded.  AVOIDED THE TRAP of undocumented customization causing extreme cost, delay of software upgrades
•     Capacity Planning was only component that was never successfully resolved and standardized

Bookmark 801

Rob Glen

15-20% organic orders growth/year for four years (after 3 years stagnation.)

Increased new product revenue from  5% to 23%.*

$2 Billion Engineered Fluid Products & Services

Viking Pump Division, 15-20% organic orders growth/year for four years (vs. 3 years stagnation.)  Outperformed 50 other business units.  Increased new product revenue from less than 5% to 23%.*

(Contact Us for Confidential Details)

Bookmark 802

Dan Walker

GE Power Generation

Sold 250 gas turbines resulting in

$1 billion in sales

NO LOSSES to COMPETITORS.

$1.4 Billion Division.  46 year  tenure with GE leading sales of power generation equipment.  Led or assisted with 250 gas turbine sales cycles resulting in $1 billion in sales and NO LOSSES to COMPETITORS.

Introduced $200‐ $300 million in equipment upgrades for GE gas turbine customers.

Led market development  for GE Energy’s most successful version of the LM6000 power generation set with sales reaching over $1 billion per year.*  (Contact Us for Confidential Details)

Bookmark 803.1

Stan Block

Allegheny Technologies

Won $30 million six year contract to supply a global oil and gas equipment manufacturer

Bookmark 851.1

Dick Zell

Handleman

Premium Retail Services

$100 million in services sold over 10 years at healthy margins

Bookmark 852.1

Chris Selle

Sold and delivered $100 million+ in services in eight years

Bookmark 854

Scott Clarion

Heat Treatment Firm

Grew sales from $25 million to $50 million through 2008/2009 downturn for heat treatment firm

Grew from ORGANIC SALES from $50 million to $70 million in three years for $120 million commercial pump division

Scott Clarion Details:

TURNAROUND OF ~$50M, 300 EMPLOYEE PRIVATE EQUITY OWNED “HEAT TREATMENT OF PARTS” FIRM (one of the largest in U.S.) as COO, 2001-2018.  Led the company through 2008 recession, a 30% drop in sales, CEO changes, near bankruptcy and PE purchase to come out stronger and more profitable.

• SALES GROWTH:  Grew from a low of $25 million to approaching $50 million (acquisition and divestiture details available.)

• MARGIN GROWTH:  Grew from a loss to nearly 15% EBITDA.

• CUSTOMER MIX:  Replaced low margin business with higher margin.  Grew from   55% Automotive, 44% Commercial, 1% Aerospace to 22% Automotive, 63% Commercial, 15% Aerospace

• SALES GROWTH BREAKTHROUGH:

• Existing salesforce was mature, high salary, low commission.  Spent too much time babysitting house accounts (with overly generous commissions – yet still not growing.)

• Paid for study showing that 80%+ of outside sales people in 5 state territory were related to owner and/or ran the business.

• Replaced 80% of Salesforce with younger, more aggressive people with proven selling skills and ability to learn engineered sales process.  (Discovered better to teach product knowledge to proven salespeople.)

• Changed Commission Plan to Lower Salary, Higher Commission.  Changed to one year residuals instead of 15+ years (altered incentives toward new accounts.)  Established sales minimums that had to be met before being paid commissions.

• Major New Customer Additions:  Earned role as outsourced vertically integrated manufacturing partner. Structured and negotiated multi-year contracts, growing to 36% of total revenue.  Increased market share by 3+ points by expanding into adjacent/under-served geographic markets, grew higher margin sectors and higher value customers, added aerospace certifications.

• Personally Managed and Improved Quotations, Standard Pricing, Margin Minimums.

• Strengthened the Inside Sales Team (keeps outside sales people productive.)

• Fixed Operating Problems which retained and grew happy customers.

• Personally Visited Numerous Key Customers to discover “What else can we do for you?  How are we doing?  Where is your business going?”

• Monthly Pipeline Review / Joint Sales Meeting/Call:  All plants attended, sales + general manager.  Keys: Where do you need help?  Decisions on taking low margin sales.

• EXCELLENCE, DISCIPLINES IMPLEMENTED IN OPERATIONS included monthly operating review at each plant (everything.)  LEAN, Six Sigma, other best practices eliminated 25%+ of costs, cut cycle times by 50%, reduced defects 25% and improved on-time performance to 90%.  Maximized capacity and equipment utilization by transferring equipment to 24/7 schedule.

• SPECIAL ACTIONS TAKEN FOR SURVIVAL, TURNAROUND:  “Right sized” top heavy management, including cutting 20% of senior management and 30% of supervisors. Flattened the organization, reduced costly temporary/unskilled labor practices.  Maintained cash neutral/positive operations during bank controllership, averting bankruptcy.  Closed/consolidated plants, divested under-performing businesses, reduced overall spending by $7M, increased operating profits, and achieved lender compliance in under 2 years.

GENERAL MANAGER & FINANCE DIRECTOR FOR $120 MILLION COMMERCIAL PUMP DIVISION.   Full P&L responsibility for a $120M, 200-employee engineering, manufacturing and marketing operation for four years, 1997 – 2001

• ORGANIC SALES GROWTH:  Grew from $50 million to $70 million over three years.

• OVERALL SALES GROWTH:  Grew from low of $50 million to high of $120 million (included acquisition.)

• OPERATING PROFIT GROWTH from 8% to 18% in four years.

• HIGHER MARGIN, NEW CUSTOMER GROWTH FOCUS resulted from strategic business alignment, strategic market focus, in-depth planning/analysis and stronger execution.

• SAVED VALUABLE PLANT FROM HASTY CLOSURE after acquisition due to its strong “tour  value” for customers.  Plant remains in operation today.

• ON TIME PERFORMANCE IMPROVEMENT from 44% to 94% and $2M+ annual cost savings from supply chain improvements.

• IMPROVED KEY PRODUCT MARGINS WITH PRICING STRATEGIES that added $1M in overall profitability and aftermarket revenue.

Big Trouble, Turnaround Successes

Bookmark 610.2

Mark Grant

Stewart and Stevenson

Led stock price from $6 per share to $35 per share and sale in  four years.*

Grant led earnings and stock growth from $6 per share to $35 per share at sell-out over four years.*

$700 Million Oil, gas, power industry parts, services and packaged solutions provider

Manufacturer of jeeps, trucks, specialty vehicles for U.S. government

(Contact Us for Confidential Details)

Bookmark 611.1

Jane Mills

Safety-Kleen

Grew division to $200 million While company was exiting bankruptcy,

$1.2 Billion Recycler and disposer of oil, hazardous waste.

As Senior VP, built Western Division and Canada to $200 million (25% of company total).  While company was exiting bankruptcy, brought her division from a loss to #1 revenue and EBITDA (>10%) among the divisions for five out of six years. *

(Contact Us for Confidential Details)

Bookmark 730

Dave Johnson

Large Manufacturer and Importer of  Pumps, Valves, Systems, Services for Oil & Gas, Other Industries

Grew $750 Million P&L unit at 2.5X Market during SEVERE DOWNTURN in Oil & Gas

Company Name Confidential.  Vice President, Global End User Sales and Service, $750 Million P&L:

- Prospering, Growing at 2.5X Market in Severely Down Oil & Gas Sector

- Added Significant Services to Products, resulting in 200 contracts for predictive diagnostics, on-site services, software engineers

- Cross Selling, Selling Service Value-Add, "Less about selling widgets, more about selling services"

- Expanding in other markets where Oil & Gas products can be used, doing well Key Lessons on Surviving, Thriving in Hard Oil & Gas Downturn:

•   Commodity parts of business surviving, doing OK
•   Project business and Upstream businesses off hard
•   Expanding in other markets where Oil & Gas products can be used, doing well

Bookmark 800.4

Victor Allison

SPX Evaporative Cooling, SE Asia

Led turn around resulting orders increased by 58% and revenue increased by 27% in one year.*

$522 Million Manufacturer of Cooling Equipment for Generators, Commercial, Industrial Equipment

Led turn around resulting in $3 million operating profit improvement, orders increased by 58% with revenue increased by 27% in one year.*

(Contact Us for Confidential Details)

Bookmark 803

Stan Block

Allegheny Technologies

18% sales increase in 2010 (after extreme recession 2008/2009)

$300 Million Tungsten Materials and Cutting Tools Business

Restructured the business during the ‘09 recession.  Led  commercial markets to 2010 sales of 18% increase over 2009 and bookings increase of 23% for Q1 2010.  Won $30 million six year contract to supply a global oil and gas equipment manufacturer.  Increased customer share 250%.*

(Contact Us for Confidential Details)

Bookmark 852

Chris Selle

Returned Struggling business to profitability

20+ Years Leading Sales and Effective Execution of Business Services.  Highlights:

As CEO, took over struggling services business, returned to profitability, sold and delivered $100 million+ in services during eight year tenure.

Details, Success Stories Pre-Omnicom

Value Pricing, Grow Service Sales, Sole Source Wins, Misc.

Bookmark 601.1

David Watson

GE Energy

Grew Services Sales from $250 Million to $540 Million

and

Operating Profit from $18 Million to $95 Million in Two Years

$1.4 Billion Aero Derivative Turbines

(Jet engines in unconventional uses e.g. power generation, gas pipeline compression, ship propulsion)

Growth was 50% acquisition, 50% organic.*

(David provided the following video interviews.  Contact Us for Confidential Details)

5.2 How We Grew Services Sales from $250 Million to $540 Million in Two Years at 35% Contribution Margin (50% by acquisition, 50% organic) 

5.3 How We Identified Our Core Technology / Process / Quality Competitive Advantage 

5.4 Understanding the Core Competitive Advantage:  How We Reduced Customer Outages from 6 Months to 3-4 Days 

5.5 Beating Competitors that are "Cherry Picking the Spare Parts Business" 

5.6 How We Structured Services to Keep Customers for 5-10 Years 

5.7 How Being Better at Core Technology / Process / Quality Helps You on the Cost Side 

5.8 How We Moved from Traditional, Commodity Parts and Service to High Value, Long Term Services Contracts 

5.9 How We Shortened Sales Cycles 

5.10 How to Switch from a "Product / Engineering" Mindset to a "Services" Mindset  

5.11 How We Changed Our Parts Business Into a $540 Million, High Value, High Margin Services Business 

Bookmark 605

Mark Acer

Changes from selling Products to Selling Services by 2 to 1

Docucorp provides forms and document processing software and services to the insurance and financial services industries

Outsourcing Senior Executive, CEO that Built the Company

Technology Company Changes from selling Products to Selling Services Over Software by 2 to 1, Sold in 2007 for 25 Times Earnings!. *  Sustains Great Gross Profit – 49% – Over Long Term.  Solid Mid-Size Company, Grows to  $88 Million, Mostly Organic Growth. Focus:  Great Example of Finding the Right Focus.  See Our Other Success Story #28.  Sustained 5.6% Net Income Over 8 Years – Slightly Above Industry Average.* Price / Equity Ratio Averaging 26 Over Time.  Sales and Marketing Spending in the Range of 20% to 25%.   Appears To Be Much Better Return on Invested Capital Than Some Other Examples. Docucorp International,  Rated B+ in the TIA Study of Excellent Services Companies, August, 2009

DocucorpInternationalSuccessStory36.pdf

Docucorp’s Long Term Financial Performance:

•  Sales Growth:  8.06% Over 8 Years, (from $52 million in 1999 to $88 Million in 2006)
•  Gross Profit Average:  49% Over 8 years
•  Price / Equity Average:  26 Over 8 years. Sold in 2007 for 25 Times Earnings
•  Average Net Profit:  6.3% Over 8 years
•  Total Shareholder Return:  400% Over 8 years

Key Lessons:

•  Important Precedent for Shareholder Value:  Company Changes from Technology / Software Sales Focus to Selling Services.
•  Found a Niche Where “Competition Was Almost Irrelevant”
•  Services Eventually Outsold Software 2 to 1
•  Sold in 2007 for 25 Times Earnings!

Focus:  Great Example of Finding the Right Focus.  See Our Other Success Story #28.

Bookmark 604.1

Scott Lear

Schneider Electric, U.S. Division

Grew Services from $1.5 million to $9.75 million in 4 years at 32% Contribution Margin

$3.4 Billion Industrial Electrical Transmission Products with Emphasis on Value-Add Services

Grew Services from $1.5 million to $9.75 million in 4 years at 32% Contribution Margin in 3 State Midwestern Region.  Accomplished with ZERO INCREMENTAL PEOPLE.  Grew total sales from $78 million to $120 million, demonstrating product sales gains that accompany effective services sales.

Value Pricing Win: Moved traditional parts / service / commodity pricing organization to Value based pricing.*

(Scott provided the following video interviews.  Contact Us for Confidential Details)

6.2 How Schneider Grew U.S.  Services from $24 million to $400 million at 32% Contribution Margin (over 15 Years) 

6.3 How We Switched to Value Based Pricing (Away from Traditional Parts / Service / Commodity Pricing) 

6.4 How We Grew a Three State Region's Services from $1.5 Million to $9.75 Million at 32% Contribution Margin in Four Years AND Grew Total Sales from $78 Million to $120 Million at Same Time (Shows Product Sales Gains from Doing Services Well!) 

6.5 How We Discovered Our Core Technical / Process / Quality Competitive Advantage 

6.6 How We Began Earning More Money from Services Than New Equipment Sales 

6.7 How to Move the Customer Away from Insane Focus on Cost

6.8 How to Get Product Sales People to Sell Services 

6.9 How to Win Two Out of Three Competitive Bids 

6.10 How We Capitalized on Competitor's Tendency to Always Propose New Equipment - Beat Them With a Service! 

Bookmark 610.1

Mark Grant

GE Energy

Value Pricing Win:  25 value-priced sales of steam turbine services in one year.

Average sale:  $4 million revenue and 50%+ margin.

$1,450 Million Steam turbine services

Value Pricing Win:  Mark Grant was responsible for 25 value-priced sales of steam turbine services in one year.  These sales averaged $4 million revenue and 50%+ margin.  The best example was Brunswick Paper, where the GE team identified $7 million per year in annual savings and was able to charge the customer $6 million while earning $5 million in margin*.

(Contact Us for Confidential Details)

Bookmark 677.1

Scott Ransom

Computer Science Corp.

Helped Client 2 save $500 million

Bookmark 677.2

Scott Ransom

Computer Science Corp.

Closed $4.2 Billion, 10 Year Sale to Client 3

Bookmark 731.2

Mike Fairbairn

$2 Billion Engineered Pumps, Valves, Systems, Services for Oil & Gas

"Skinny Systems" success including   Full Customer P&Ls / Dashboards showing COST TO SERVE each customer

Bookmark 801.4

Rob Glen

GE Aviation – Marine & Industrial Engines

$60 million sale to British Gas, became SOLE SOURCE SUPPLIER for UK Oil and Gas related projects.

Previous company share had been 0%.

Bookmark 801.3

Rob Glen

GE Energy – Apparatus Service

20%+ growth per year for SERVICE SALES in 14 of 15 years.

$1.4 Billion Division

Early years in sales roles resulted in 20%+ avg. growth for service sales in 14 of 15 years.  Exceeded goals by up to 25%.*

(Contact Us for Confidential Details)

Bookmark 853.2

Tom Ingram

$400,000 Sole Source sale to State of Texas Insurance Board

$8 million State & Local technology product and services practice built

Bookmark 

Bookmark 

Bookmark 

Product Development Successes

Bookmark 901.1

Charles Redding

Small Custom Software Company in Dallas

Confidential Client

Got Software Company To Switch from “Activity / Tech Based Agile” Work Methods to “Product / Outcome / Results for Customer” Focus

• Developing software for client to sell to consumer market
• Problem: Technical Processes, Features, Activity focus not producing on time, on budget, happy customer.  Team disagreements, ineffectiveness, not buying in to go-forward plan.
• Solution:  Change to “Product” (outcomes, customers, how use) focus
• Results: Rapidly came to agreement on:
  • Features that matter, features that don’t, removed unneeded
  • Priority outcomes for customers
  • “Cool vs. Value”:  Team bought in, focused on Value

Bookmark 901.2

Charles Redding

$200 Million Unit of Large Manufacturing Company 

Confidential Client

Got Client Past Hype ( “Digital Transformation”), the Illusion That Software Alone will Solve Problem, Silo Thinking to “Product / Outcome / Results for Customer” Focus

• Problem: Bought software to “Go Digital” (Engineering Bill of Materials).  Worked for the engineering silo but failure as Manufacturing Bill of Materials.
• Solution: Change to a “product” view, looking at outcomes, results for customers, instead of tech feature, hype approach.
• Results:  Client heading in right direction of product / outcome / results focus for all instead of tech / hype / software only / silo approach.

Bookmark 901.3

Charles Redding

Saudi Arabia Petro-Chemical Company Manufacturing Division Confidential Client

Multimillion Dollar Product Development Failure Using Same Process that had been Successful In Past.  Exposed Root Problem as Different Approach Needed When Creating New Markets

Client created learning center for future executives, needed custom case studies for training to prevent problem in future. 

Custom case studies showed how process to develop product for expanding existing market is substantially different from process needed to “create new market”. 

Results:  Next generation of leaders much better equipped to prevent failure.

Complex Pricing, Quoting, Estimating Successes

Bookmark 731.3

Mike Fairbairn

$560 Million Division,  Engineered Pumps, Valves,

Systems, Services for Oil & Gas

Confidential Client

Grew Operating Profit from $14 million to $120 million/year Through Disciplined Sales Quotation Process

SQP (Sales Quotation Process)  Problems Prevented:

• Hidden warranty, In and Out, and other costs
• 3rd party commissions cost out of control
• Order taken from customer before diligence performed.  Must tell customer no or raise price
• Negative cash flow
• Reduced major risks such as Liquidated Damages
• "1,000 page contract that gets signed, but not really read or understood"

SQP (Sales Quotation Process.)  Resulted in dramatic improvements in margin, forecast accuracy, change order payments.  Big reduction in legal risks, "surprise costs" over 10 years.  Average Order $2.4-$7 million.  Average 500+ Orders Per Year.  30% Close Rate

SQP RESULTS:

- 50% ACCURACY IMPROVEMENT IN SALES PIPELINE, Revenue, Margin Forecast

- 5-10% MARGIN INCREASE

- 15%+ IMPROVEMENT IN GETTING PAID FOR CHANGE ORDERS because tracked against better specification, defined as billable earlier in sales cycle, better baseline to enforce change order payment

- 25%+ REDUCTION IN SURPRISE COSTS In first year due to reduced risk in Warranty, In and Out, Technical Application and Scope of Supply costs

- SAYING 'NO' TO BAD BUSINESS, Negotiating Better Terms:  Increased from near 0 to 3 big quotes per month sent back for negotiating improved terms

- REDUCTION IN CATASTROPHIC LEGAL RISK:  A single mistake on a small $500,000 order can bankrupt the company.  e.g. "A mistake with Shell will cost you $2 million in a heartbeat"

SQP Key Lessons:

• NEED, DEADLINES drove much of the success:  Acquired and start up business units had no systems, critical deadlines, had to make transition as fast as possible
• Choice was between simple, PC based solution at $100,000 per business unit and SAP/Oracle solutions at $1 million+ per business unit
• First implementation was hard, difficult but resulted in blueprint that could be replicated for next seven.  Critical issues that had to be worked through:
  • Item Master
  • Chart of Accounts
  • Division financial rollups / consolidations
  • Standard Cost and Cost Accounting
  • Bills of Material
  • Taxes
  • Customer Management
• Decided to use simple software because most difficult part was going from no automated system to an automated system.  Chose to tackle this learning curve first, switch to more complex system later (turned out was not needed.)
• MRP component worked well
• NO CUSTOMIZATION of software except for tax jurisdictions
• Customizations were thoroughly documented to allow software to be upgraded.  AVOIDED THE TRAP of undocumented customization causing extreme cost, delay of software upgrades
• Capacity Planning was only component that was never successfully resolved and standardized

Bookmark 3.7

Tom Ingram

$750,000 Million Business Services Firm, Broker

Confidential Client

$2.5 Million Savings, $10 Million Sales Gain from Improved Pricing, Quoting, Estimating Process

Removed 250,000 Chances to Make a Mistake

Freed Up 63,000 Sales and Support Hours Per Year

Consolidation Of Sales Processes from Nine Acquisitions Pays Off

Complexity Increasing

Before  200+ step process 

After  Reduced to 64 core steps   CLICK for Case Study  

Summary of Key Optimized Actions for Existing Products (90% of Sales Activity):

• Post Promotion/Discount Analysis:  Focused, disciplined, data based (no excuses).  Promo/Discount sell what expected?  Reconcile with trade funds system. 
• Annual / Quarterly Promotion Planning with Customer: Plan joint calendar (on facts, not demands.)  Build execution of shipment, stocking, promotion into plan with ACTION to confirm weak / at risk components.  Promo, pricing concessions evaluated, agreed, signoff.  
• Day to Day Promotion Execution:  Monthly, weekly execution of plan and adjustments including Temporary Price Concessions, Ads, Displays, Major Promotion Execution, Discontinued Items.
• Promotion / Discount Request System, Other Systems:  Self entered by customer or rep, minimum 5 day lead team, contract request minimum items, entered, approved.  Contract available to customer on web site (as reminder).  Details to other systems for setup. Final QA review.
• Selling to Distribution, End Customers:  Selling takes place, pulls orders through, execution consistent.  Reps enter into end customer systems.
• New Product Introduction similar but substantially more research, diligence, test marketing jointly with customer.
• “Did we make money on that customer last year?”  (Key question answered)
  • Required white-collar time tracking, services costing
• Customer service department dramatically improves working relationship with field business units
• 80% reduction in email in one business unit
• Clear on who performing well, who not
• Improved Differentiation, Perception of Value-Added by Customers
• Huge buy-in from system users because they helped design
• Excellence breeding excellence:  Doing this well multiplied the efforts of other functions – saw improvement possible and rewarded

Bookmark 3.13

Tom Ingram

Casualty Insurance Property Replacement Firm

Confidential Client

Pricing, Quoting, Order Processing Reduced from 5 Days to 1 1/2 Days 

75 Step Process Reduced to 40 Step Primary Process

60% of Price Quotes Handled by 40 Step Process, No Approval Required

• CLICK for Case Study  See BEFORE and AFTER
• Orders between 15% and 25% gross profit skipped approval, executed immediately
• Cost of quoting and processing an order quickly identified as $55.  Immediately stopped taking orders with less than $100 gross profit.
• Determined bulk purchasing not always best.  Shifted to minimum quantity or drop ship
• Removed double entry into two systems, numerous problems, failure to balance
• Credit risk significant so accurate information prevented credit losses
• Payment on facts, not “who screamed the loudest”
• Cost of Errors:  Demonstrated that one error cost the entire profit of an order – or more
• Made salespeople responsible for accurate pricing, quoting, estimating, data entry
• Removed four unneeded control steps for 60% of orders

Bookmark 902.1

Sam Devens

CECO Environmental 

Air Pollution Control Technology, Products And Services

Grew Organic Sales 29% in Two Years, Overall Revenue by 10% to $400 Million, while Increasing Profit 10%

Reversed 5% Annual Organic Sales Decline

70% of Sales Engineered to Order

How Results Achieved:

• Simplified business systems, operational transformation, operating rigor
• Refocused on long term growth markets, three divestitures, two acquisitions.
• Upgraded talent throughout organization
• Sales club, incentives, special treatment of sales people (despite pushback from manufacturing and other parts of organization – decided results worth the friction) 

Bookmark 902.2

Sam Devens

International Battery

Lithium-Ion Batteries And Systems For Large Energy Storage

Private Equity Owned

Changed Sales Execution to “Value / Market Pricing for Strategic Customers”

Reduced Cash Burn Rate By 20% 

How Results Achieved:

• Led thinking away from “technology – cost” focus to Vale
• Optimized operations, delivered cost savings 

Bookmark 902.3

Sam Devens

Siemens Energy & Automation, Inc

70% of Revenues from Services

Improved Profit by $100 Million in 2007, Grew to $3.7 Billion in Sales, $307 Million in Cash Flow, $233M EBIT

Delivered $3.9B Sales, $290M EBIT And $428M Cash Flow In 2008

Managed Business During 2009 Economic Crisis to Within 1% Of Pre-Crisis Targeted EBIT Margin

How Results Achieved:

• overarching business performance improvement plan
• new go-to-market benchmarks and organizational culture changes centered on customer value, leadership integrity, and disciplined execution.
• Solved Costing Data problem.  Aluminum costs skyrocketing but costing data not keeping pace

Bookmark 902.4

Sam Devens

Siemens Factory Automation Sensors

Formed $100M Factory Automation Sensors Business 

Secured Major Customers: Metro,  General Motors

Gained Foothold In Emerging Markets

How Results Achieved:

• Led major developments in RFID technologies for manufacturing and supply chain applications.
•  

Bookmark 902.5

Sam Devens

Siemens Power Distribution & Controls Division

$700 Million, 3000-employee North American division

Top-Performing Business Unit For 2 of 3 Years,  #1 In Customer Service 

1.5% Market Share Gain

Increased Margins In Down Market

How Results Achieved:

• Segment-specific strategy / sales / marketing plan
• Developed / introduced several new product families 
• Restructured in response to 9/11 and dot-com downturn. 
• Relocated 25% of US production to Mexico resulting in $30 Million cost / productivity savings, $45 Million additional savings identified

Bookmark 902.6

Sam Devens

Thomas & Betts

$2 Billion Electrical Products, HVAC Equipment And Transmission Towers

Lighting, Premise Wiring, Cabletray, Utility Divisions, Power Connectors, Electrical Products, Meter Sockets

Led $400 million unit with 14 plants through 4 Acquisitions, Growing by $240 million.  

Grew Component Sales 12% While Maintaining Margins 

$4M Profit Improvement While Reorganizing $100 Million Steel Structures Unit 

How Results Achieved:

• Decisive Leadership
• Moved Business Strategy and Sales / Marketing away from Cost-Plus toward “Value / Market pricing” 
• New Product Innovation 
• Targeted Marketing 
• Operational Consolidation and Shift To Low Cost Manufacturing.
• Credit Losses From Growth Overemphasis:  Fixed problem of credit losses to 2nd largest customer

Bookmark 902.7

Sam Devens

General Electric

Electrical Distribution, Switchgear, Controls, Nuclear Power

Product Manager For The $150 Million Electrical Switchgear Business

~$10 Million in Incremental Sales, leading to $100M In Related Equipment Sales

Value Pricing / Marketing Shift for Integrated Electronic Solutions

How Results Achieved:

• Improved Competitive Position
• Major Customer Wins
• Working Across Boundaries
• Shift The Value Approach To Integrated Electronic Solutions
• Led Newly Integrated Business Team And New Product Development Group To Regain Leadership In Power Management Systems

GREAT STORY, WHERE HAD BIGGEST IMPACT?

How can we get to Value / Market based pricing  - Move away from Cost-plus pricing? 

• Often all you know is cost
• E.g. “Last time we bid a 32% markup and lost the sale.  This time we’ll bid 27%”
• Must think really hard about:
  • Competition – every aspect, will they cheat?
  • Will customer pay a premium to work with us?  How much?  Why? 

LEARNED THE RIGHT QUESTIONS TO FOCUS ON

1. How can we get to Value / Market based pricing  - move away from cost-plus pricing?
2. How do we get to Organic growth – away from Acquisition only growth?
3. Are we Growth focused or “Cost-out / Productivity” focused?
4. Is Costing Data Right?  Hidden costs?  
5. Is Engineered to Order (Long cycle) or Make to Stock (Short cycle) business better for us?  What is Right Mix?
6. What Culture / Mindset / Leadership Issues Really Matter?  Where focus?
7. What Sales Competence Issues Really Matter?  Are Actionable?  Where focus?
8. Where Can I Find More Margin in Engineered to Order (Long Cycle) Sales?  (Reduce costs, keep margin?)
9. Is Distribution Channel Earning Their Pay?  Do We Understand Our True Cost of Sales?  Can We Rework / Improve Significantly?
10. What disciplines must be in place?  How will Leadership reinforce and sustain, preventing snap-back to BEFORE state?
11. How get to cooperative, high performance leadership?

903.1

Hal Turner

$100 Million Subsidiary

Complex Video Solutions for Law Enforcement

$5 million savings From Error Reduction in Complex Orders

Reduced Material Errors from 15% to 5% of Orders over 10 years 

Disciplined Sales Accountability, Costing Results in Big Improvement without Big System Costs

Project Quotation Problem:  Sales not knowing proper parts to sell, results in order errors, too many parts shipped, air shipments, often giving away parts for customer satisfaction and preventing implementation delay.  Sales not incented to do order right, would move on to next sale.

Solution: Immediate:  Strong discipline, accountability for sales people.  Saying NO to bad business.  Increased customer service rep numbers, skills, systems.  Laid groundwork for Quoting System to prevent misquoting.  Serious effort in labor cost rollup and loading.  

• Average complex orders over $20,000, grew to 500 orders/year. $5 million+ savings over 10 years.  

Bookmark 906.1

Ed Matthews

Alcatel-Lucent 

$9 Billion Americas Division, Advanced Cell, Microwave, Optical Networks for Telephone Carriers

$27 Billion in Proposals Created,$9 Billion in Proposals CLOSED in One Year 

 20% Reduction in Proposal Creation Time 

Maintained 50%+ gross margins

17% Increase in Orders from New Customers / Products Two Years

15% Of Revenues From Services On Average

25+% Of Orders From Services On Average  

Accomplished through DISCIPLINED MANUAL SYSTEM - BETTER FOR THIS SITUATION. 

Did not waste time on IT solution.

How Results Achieved:

- Insisting that Sales’ strategy is sound, discounts, concessions necessary (not just path of least resistance)

- Strictly controlled Sales organization’s desire to cut price, just close sale and move on

- Controlled and authorized “give-aways” to aid closing sales

- Right people reviewing the costs are right level of detail

- Sales accountable for setting correct expectation.  E.g. price not final until tower site survey completed

- Documented, comprehensive approach so all signoff (sales, manufacturing, engineering, installation, business unit, client, legal)

- Big Reduction in Surprise Costs:  (e.g. warranty, un-estimated components/services, bad costing data)

- Reduced Legal risks (e.g. standard contract and legal at the table for review)

- Got Paid for change orders instead of absorbing

• - Saying NO to Bad Business

Bookmark 906.2

Ed Matthews

Alcatel-Lucent (Nokia) 

Advanced Wireless, IP, Microwave, Optical, Fixed Access, Installation, and Professional Services for Telecom Carriers located in North America  Professional Services

Led Pricing Team for $3 Billion AT&T U-verse and $3.5 Billion Verizon FIOS Wins

Penetrated Billion Dollar Client Programs

Improved Margins 2% through Disciplined Price, Quote, Estimate Process

A DISCIPLINED MANUAL SYSTEM WAS BETTER IN THIS SITUATION.  

Did not waste time on IT solution.

How Results Achieved:

- Insisting that Sales’ strategy is sound, discounts, concessions necessary (not just path of least resistance)

- Strictly controlled Sales organization’s desire to cut price, just close sale and move on

- Controlled and authorized “give-aways” to aid closing sales

- Right people reviewing the costs are right level of detail

- Sales accountable for setting correct expectation.  E.g. price not final until tower site survey completed

- Documented, comprehensive product / service pricing approach so all signoff (sales, manufacturing, engineering, installation, business unit, client, legal)

- Big Reduction in Surprise Costs:  (e.g. warranty, un-estimated components/services, bad costing data)

- Reduced Legal risks (e.g. standard contract and legal at the table for review)

- Got Paid for change orders instead of absorbing

• - Saying NO to Bad Business

Bookmark 905.1

Duncan Jones 

$12 Billion Manufacturer of Electronic Connectors

$5 Million Savings + Profit Over 5 Years from Solving Complex Estimating, Pricing, Quoting 

Key:  Set Tiers of Quote Due Dates Based on Complexity, Dollar Size.  

E.g. Easy Quotes Due in ½ Day, Medium in 2 Days, Complex in 5 Days, Very Complex in 10 Days.

Labor Savings Came from Not Expediting Everything – 80% Of Quotes Follow Standard Path, Freed Up Time for More Sales

How Results Achieved:  Details on request

Bookmark 907

Lori Davis 

Johnson & Johnson

Medtronic

Cardinal Health

AT&T Microelectronics

Siemens

Texas Instruments

Bell Labs

IBM

(Clients and employers over long career)

Complex Pricing, Quoting, Estimating Successes:

Reduced Errors That Eat Up Margins:  Eliminated Electronic Device Failure Rate Due To Improper Gate Thresholds

Reduced Surprise Costs through Defect Reduction Program Which Tripled Yields For Memory Product

Pricing Model Updated to Show Actual Project Cost

40% Margin Improvement from eCommerce Solution Permitting High Volume Sales Direct to Customer

Eliminated double entry of Orders for Dielectric Material

Made Orders Visible to Sales Reps

How Results Achieved:  Details available on request.  Lori is a special case – has been implementing these systems for decades.

Lori’s experience demonstrates how many areas, functions and systems are involved in solving the Complex Pricing, Quoting, Estimating Problem

Bookmark 908

Susan Matthews

$4 Billion Manufacturer of Electronic Audio Video Control Systems

6% Margin Improvement in 12 Months from Solving Complex Quoting, Estimating, Pricing Problem 

Reseller Confidence Won Back by Restoring Confidence In Quoting / Delivery System 

Close Ratio Improved from 1 / 5 to 2 / 5 for $10,000+ Orders in 18 months  

Forecast Improvements Gave Operations 80% Confidence In What to Build / Buy

Increased No Discount / Low Discount Sales:  Changed Comp Plan From 100% Revenue to Revenue + Margin 

Obsolete Inventory Reduced from $90 million to $20M through improved Forecasting and Sales of Slow Moving Inventory

“Customer Win-Backs”:  Reduced frequency and expense win-back discounts.

Disciplined Discount Process with Transparency to Finance and Audit

Early Cash Collection and Up Front Collection Improved

How Results Were Produced, Some Keys:

PROBLEM:

- Comprehensive quotation process overhaul needed to eliminate hidden pre-sales / non-approved discounts (margin erosion), finance audit issues for discount approvals, delays in entering orders due to pricing issues and SKU availability.

- Sales team and channel partners lost confidence in negotiated price approval or product delivery on time

SOLUTION:

- Automated quote system implemented with focus on SKU availability, forecasting, tiered confidence rating, audit trail on discount requests, emphasis on fulfillment as promised

- Gave sales channel a system they had confidence in:  What skus are available?  What is margin?  Will all key parts needed for sale / installation  available for project schedule?

- Prevented miss-shipments

- Reduce steps with change orders

- Protected margins and quick shipment during the Discount Request process

• - Automated tiered / rapid approval of different discount levels

Bookmark 909

Neal Cardone 

Emerson Automation Solutions

Electronic and Mechanical Automation for Electric Utilities, Oil & Gas, Energy 

Includes results from previous employers

Operating Profit Increase by 2.5.%, Eventually from 24% to 28% (personally led)

Reduced Quote Lead Time from Six Weeks to Eight Hours for Configure to Order, Engineer to Order Products

How to Keep Margins High:  Learned When Possible, When Not

Reduced Product Development Time from Two Years to One Year (avg).

E.g. Seven Product Iterations and Out The Door As Production Part In 4 Months while Maintaining Hazardous Rating

Formal Screening, Qualifying of Sales Proposals – Reduced Time Wasted

IT Barriers To Rapid Quoting And Sale:  Required Key System Rework.  Had To Get Tough, Demand Resolution