17th International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com

15 May 2015, Vilnius, Lithuania

How to build a sales factory in

a small company.
NOD Baltic case story

Tomas Parnarauskas, NOD Baltic, Lithuania

Irma Pranaityt, TOC Sales and Marketing
Mindaugas Voldemaras, TOC Sales and Marketing
15 May 2015

Tomas Parnarauskas

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CEO at NOD Baltic - an added value

software distributor.
Tomas is also a Coach/Facilitator in
Systemic Constellations workshops,
Executive Coaching, Business Coaching,
Organisational Development, International
Transformational Leadership and
Professional Development.
Tomas has various certificates in different
professional fields such as NeuroLinguistic Programming, Professional
coaching and Business Management,
Google Analytics, and others.
www.tocpractice.com

Place for the photo of the

presenter

www.linkedin.com/in/parnarauskas

17th International Conference of the TOC Practitioners Alliance - TOCPA

Irma Pranaityt
Irma works as a project manager/
consultant at TOC Sales and Marketing,
UAB (Lithuania) since 2014, works with
clients who want to increase their sales in
local markets.

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Place for the photo of the

presenter

She is a PhD student at ISM University, has

a Masters degree in International Marketing
and Management.
Irma has 8 years experience in
manufacturing, retail, marketing
and human resources.

www.tocpractice.com

https://lt.linkedin.com/pub/irma-pranaityte/b/11b/662

17th International Conference of the TOC Practitioners Alliance - TOCPA

Mindaugas Voldemaras
CEO at TOC Sales and Marketing, UAB
a company that ensures the flow of
opportunities for clients and provides the
ongoing sales improvement services for
exporting companies.

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Place for the photo of the

presenter

www.toc-marketing.lt
https://lt.linkedin.com/in/mindaugasvoldemaras

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17th International Conference of the TOC Practitioners Alliance - TOCPA

Implementation
by the book

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The scope SALES EXECUTION

Why change?
What to change?
To what to change?
How to maintain POOGI?

+ what did not work (proven!)

+ a complete list of must-have items

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Company snapshot
(1-1-2014)

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Name: NOD Baltic, UAB

Location: Vilnius, Lithuania
Established: 2005
Business: a local distributor of software
Key product: ESET antivirus (90% revenue)
Revenue 2013: 1,14 M
Employees: 12

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17th International Conference of the TOC Practitioners Alliance - TOCPA

Why change?

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Symptoms as of 1st Jan 2014

Huge work overload

Absolute multitasking
Autonomous work
No time for selling
100% of sales are reactive (if clients buy, what is a
problem?)
Dependency upon (addiction) one product
Dependency upon a few irreplaceable people
Distrust in +10% growth target
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17th International Conference of the TOC Practitioners Alliance - TOCPA

What to change?

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If one knew what to change

it would probably has been changed already
motivation system does not seem to work

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17th International Conference of the TOC Practitioners Alliance - TOCPA

Challenges of assessment

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How to make an auditor happy:

No documents
No job descriptions
No visualized procedures and processes
Inaccurate data in systems

How the hell they work???

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17th International Conference of the TOC Practitioners Alliance - TOCPA

While Building
Current Reality Tree

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Were here to define negative factors that you face so we

could eliminate them. But before we started verbalizing
undesirable effects please just explain how you work

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17th International Conference of the TOC Practitioners Alliance - TOCPA

Building
Current Reality Tree

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CRT process specifics in a small company

Interviews with EACH of employees (excluding anyone
would mean they are less important and create a huge
gap of analysis)
The smaller the company, the more UDEs (include
them or abandon?)
Questioning leads to immediate changes (good idea,
will fix it after the lunch)
Very high expectations (I hope my interview will help
you change the world or at least the company)
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17th International Conference of the TOC Practitioners Alliance - TOCPA

What to change?

www.tocpractice.com

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17th International Conference of the TOC Practitioners Alliance - TOCPA

Building
Agreement On Current Reality

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How to define organizational structure

when all people work as autonomous agents?

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17th International Conference of the TOC Practitioners Alliance - TOCPA

In the field (at the customer)

At the office

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CEO

e-commerce

Finance

PR

T.P.

U.M.

R.B.

S..

CTO

Sales support

D..

CCO

R.O.

OERP dev.

A.L.

Products / supply

D..

Small customers
Requests

A.M.

E.A.L.

Existing partners

Big customers

D.B.

New sales for direct customers

Customer service

OERP

M.S.

Export

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Your logo

To what to change?

Overcoming resistance to change by verbalizing for

employees a direction of the solution

better work
conditions

Decrease workload
Reduce multitasking
Assure significant increase in new sales
Keep attention/service to existing
customers

No increase in staff
www.tocpractice.com

budget
fulfilment*

budget
fulfilment*
*budget fulfilment
impacts bonuses

17th International Conference of the TOC Practitioners Alliance - TOCPA

To what to change?

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New structure that was presented to employees

on 3rd Feb 2014

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17th International Conference of the TOC Practitioners Alliance - TOCPA

In the field (at the customer)

At the office

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Quote

CEO

Finance

e-commerce

T.P.

U.M.

R.B.

PR

Active sales

S..

R.O.

Participation in sales meetings

Quote request
Supply
CTO

D. or new guy

OERP dev.

D..

Sales support

A.L.

Products

D. or new guy

Partner trainings
Customer complaints
1. Requests
2. Problematic
leads
3. CVPIS leads
Quote

All partners

A.M.
Problematic leads

E.A.L.

Quote request

Existing partners

CVPIS leads
Active sales
1. Segment1
2. Segment2
meetings

D.S.

Outsourced
meetings

Sales Meeting Coordinator

susitikimai

New sales for direct customers

Customer service

OERP

M.S.

Export

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

To what to change?

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New sales processes introduced

Reactive:
License renewals
Passive sales from partners
Retail sales
Proactive:
Problematic renewals
Public tenders
Active sales (box products)
Active sales (ERP products)
Partner process (upselling)
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17th International Conference of the TOC Practitioners Alliance - TOCPA

To what to change?

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Every sales process has the following:

Sequence of steps with durations (in the CRM)
Roles and commitments
Focus (bottleneck) measurement and its monthly target

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17th International Conference of the TOC Practitioners Alliance - TOCPA

To what to change?

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Switch from autonomous work to teamwork

For the sake of team result no one can run faster than
necessary
Every teammate is crucial for the final result
Every teammate needs to not only run fast but to pass
information properly
Every teammate must focus on his/her own track AND
never overlap colleagues distance

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17th International Conference of the TOC Practitioners Alliance - TOCPA

To what to change?

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Everything sounds pretty logical except one thing

how shall we share our commissions?

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17th International Conference of the TOC Practitioners Alliance - TOCPA

How to cause the change?

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How to enable people

start collaborating (sharing information)?
How to assure accurate data in the CRM
while avoiding over-data?
What if new model fail? What is plan B?

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17th International Conference of the TOC Practitioners Alliance - TOCPA

How to cause the change?

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Employers win:win proposal:

Employees commit to work in a baton (relay) model
Employees commit to reach focus measurement target
(will be analyzed on monthly basis)
Employees commit to reach strategic products sales target
(yearly)
Employer commits to pay a salary equal to average actual
salary (fixed salary + bonuses) within last 12 months
Employer commits to share among employees whole extra
gross profit (extra Throughput)
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17th International Conference of the TOC Practitioners Alliance - TOCPA

How to cause the change?

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People ready to change, lets give them a tool!

Usual functionality gaps of any CRM:
Sales process steps have no duration option (some CRMs
even provide one single sales process option)
Inactivity is not tracked (only activities are tracked)
Next action date and its change log
Sales funnel is a nice but useless chart
Odoo CRM was chosen
2 months deadline for DBR logic configuration, data
migration and user training
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

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How to cause the change?

drum

Lead
buffer

First time
sales meeting
buffer
information, not inventory
people, not machines
Error rate ~80%
www.tocpractice.com

new
contracts

DBR logic
in sales execution

17th International Conference of the TOC Practitioners Alliance - TOCPA

How to cause the change?

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Success factor exploitation of the CCR (=dedicated Field

Sales people)
Outsourced Sales Meeting Coordinator (a call center role) to
avoid any multitasking and internal power authority
Weekly Daily sales meetings to track progress, synchronize
activities and discuss improvements
Weekly sales meetings to discuss improvements

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

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First 9 months results

First Time Sales Meetings

35
30
25
20
15

First Time Sales

Meetings

10
5
Dec-14

Nov-14

Oct-14

Sep-14

Aug-14

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Average 23 meetings/month
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

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First 9 months results

Active Sales Process Results

35000
30000
25000
20000

Revenue, Eur

15000

Throughput, Eur

10000
5000
0
2014 Q2

www.tocpractice.com

2014 Q3

2014 Q4

17th International Conference of the TOC Practitioners Alliance - TOCPA

First year results

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Year 2014 conclusions:

Sales process standardization done.
Centralized scheduling done.
Division of labor done.
Daily sync meetings done.
Company started to sell, not only serve incoming purchase
requests
Reactive sales revenue increased despite less people in
customer service
+15% budget target was fulfilled
People received yearly bonus on top
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons learned

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CRM can be loved by people if configured with common sense

Agile way of CRM implementation: cloud CRM + step by step
configuration on demand (vs. never ending IT project)
WIP transparency creates a supportive culture
Irreplaceable guys can be replaced
Sales commissions is not a sales driver
New sales conversion depends on the value of software products
and Field Sales competence
Management attention and involvement are the critical factors for
success
Exploit every sales opportunity
Did not work:
Sprinters (lonely hunters) left the company
Segmentation mistakes
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

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POOGI necessary conditions

Daily, Weekly, Quarterly, Annual

meetings/reporting/progress tracking
Culture of trust backed by intolerance for failed promises
Easy customizable CRM
New roles starting from 2015
At the office

In the field (at the customer)

Outsourced
Field Sales
Opportunity Coordinator

D.P

Sales Meeting Coordinator

M.S.

Inside Sales

M.V.

New sales for direct customers

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

A complete list of must have

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Sales process standardization

Process steps with durations in days

Inactivity tracking

Centralized scheduling

DBR logic visualization

Division of labor

Eliminate sales commissions

Process CCR measurements (the rest in subordination only)

From push information to pull information

Daily sync meetings

Weekly, Quarterly, Annual meetings/reporting/progress tracking
Culture of trust backed by intolerance for failed promises
Easy customizable CRM

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Whats next for 2015

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If you have no
problem perhaps
your targets are
not enough
ambitious

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17th International Conference of the TOC Practitioners Alliance - TOCPA

POOGI necessary conditions

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Thank you!

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA