Hub 2014 Recap: Territory and Quota

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Getting the right sales reps selling the right products to the right accounts with the right quota targets is one of the most important tasks—and one of the biggest challenges—for most sales organizations. All of the marketing magic in the world is ineffective if you don’t get this step right. And in the worst case, a misaligned sales plan can cause significant salesforce turnover.

In this breakout session, “Territory & Quota: Collaborative, Quick & Data-Driven”, Isaac Knoot, Director, US Sales Strategy and Operations, Boston Scientific, shared how they implemented the Anaplan Territory & Quota app to create an effective sales plan, that provides immediate visibility to both coverage gaps and capacity needs.

Common Territory and Quota Challenges

Anaplan’s CMO Mark Sarbiewski kicked off the session with an overview of some of the common territory and quota challenges we hear from our clients:

  • Over assigned resources to the same accounts.
  • Target is too large and team doesn’t have enough capacity to reach it.
  • Plans take 6 months to build, are incomplete, and constantly out of date.
  • There is no way to reach the quotas with the existing territory assignment.

Mark went on to tee up a demo of the app, to show how it addresses these common challenges, empowering your sales organization to manage coverage gaps by effectively allocating resources, provide visibility into targets, ramp schedules and capacity and better align best reps to the right products and right accounts.

How Anaplan Solved Boston Scientific’s Territory & Quota Challenge

Boston Scientific has 23,000 employees worldwide, including 12 globally dispersed manufacturing facilities, with a market presence in 100 countries. Thanks to implementing Anaplan apps throughout the sales organization, they’re undertaking a territory realignment across the global organization, with a 2-month timeline, as compared to 6-8 months minimum under their prior manual processes.

Isaac shared his points of view on what makes the sales planning process so complex:

  • Business critical process
  • Spans entire organization
  • Team is spread out, making it hard to collaborate
  • High visibility and exposure
  • No single platform to manage
  •  Cannot connect the data
  • Lots of iteration

With Anaplan, those complexities are addressed, and the entire process is streamlined to take a couple of weeks, allowing significant time for back and forth and thoughtful feedback on the bottoms up/tops down alignment. Over the course of those two weeks, their process flow goes through these stages:

1. Set targets
2. Understand market trends and share
3. Push plans down to regions/districts
4. Feedback from bottoms up plan
5. Reconcile Top down and Bottoms up
6. Build patches and quotas
7. Push out comp letters
8. Refresh targets monthly

How the New Process Improved the Sales Manager Review and Approvals Process

Anaplan integrates a significant amount of data that could not be leveraged in the prior more manual process, and has more powerful scenario modeling than were available in the spreadsheets.

“There was an expectation setting that we did with the managers,” Isaac said, noting they obtained their buy-in upfront that they would be looking to try a significantly new, different process, based on more data. Additionally, Boston Scientific focused on putting in the familiar data they felt the managers really understood, and would be confident about manipulating to try out different scenarios.

“We gave them actual sales from last year, what the potential is in terms of revenue, how many procedures we would expect in that hospital, and some price trends,” Isaac said. “What we found…was the really savvy regional managers in Excel found this to be really natural.” Isaac’s less savvy regional managers also adapted to Anaplan quickly, and with enthusiasm over the ease of use as compared with the prior manual spreadsheet process. Isaac noted one such manager said “This is what I’ve been trying to do in my head for a decade.”

How Anaplan is Powering Boston Scientific’s Sales Territory Realignment

Over the course of a month, Boston Scientific is using Anaplan to work on their realignment, and will be presenting a working model to their regional sales managers at an in-person meeting. One of the major changes they’re looking at is going from a model where an account has one rep assigned to it, to having two different rep types assigned to each account.

Taking advantage of having these managers in the room at the same time, they are going to do live territory adjustments, on the fly, to work through how to redesign their territory assignments to fit into this new way of account servicing. This level of collaboration and customization is simply not possible in spreadsheets.

Territory & Quota: Collaborative, Quick & Data-Driven (Anaplan HUB2014) from Anaplan

Stay tuned for more highlights from HUB 2014, and check out our archive of conference presentations on SlideShare.

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