MLG Industrial Equipment Market Case Study

MLG Solutions: Multifaceted, Targeted, Effective

Market leaders are firms that envision emerging opportunities more quickly and respond more effectively than their competitors. Market leaders manifest superior performance absolutely and relatively by the following measures:

Sales Force Productivity Gets Big Boost

The new CEO of a $150 million information technology firm had serious questions about sales force performance. Finance reported sales people were overpaid and was prepared to cut their compensation. Marketing said they refused to sell new products. MIS department complained sales was spending more time whining about a new customer information system than using it. For the first time in a decade, sales was in danger of missing its target.

MLG Solution: Investigate the factors impacting sales force productivity, including sales support, customer information system capabilities, and new product quality. Model the profit impact of an investment in productivity improvement. Benchmarking revealed sales compensation to be in line with industry norms. Productivity however was poor: highly compensated sales people were only spending 25% of their time actually selling. Too much time was spent on administration. An investment in sales support was needed and MIS shortcomings had to be addressed. Modeling revealed a 150% improvement in profits was possible from the investment.

Results: The CEO implemented MLG recommendations. Sales were up 30% and profits up 50% one year later.

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	MLG Solutions: Multifaceted, Targeted, Effective Market leaders are firms that envision emerging opportunities more quickly and respond more effectively than their competitors. Market leaders manifest superior performance absolutely and relatively by the following measures: Grow sales more rapidly Enjoy greater customer and employee loyalty Are more profitable Experience more frequent new product success Sales Force Productivity Gets Big Boost The new CEO of a $150 million information technology firm had serious questions about sales force performance. Finance reported sales people were overpaid and was prepared to cut their compensation. Marketing said they refused to sell new products. MIS department complained sales was spending more time whining about a new customer information system than using it. For the first time in a decade, sales was in danger of missing its target. MLG Solution: Investigate the factors impacting sales force productivity, including sales support, customer information system capabilities, and new product quality. Model the profit impact of an investment in productivity improvement. Benchmarking revealed sales compensation to be in line with industry norms. Productivity however was poor: highly compensated sales people were only spending 25% of their time actually selling. Too much time was spent on administration. An investment in sales support was needed and MIS shortcomings had to be addressed. Modeling revealed a 150% improvement in profits was possible from the investment. Results: The CEO implemented MLG recommendations. Sales were up 30% and profits up 50% one year later. Printer Friendly Version Return to Previous Page




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